You are here » Home » Companies » Company Overview » Steel Authority of India Ltd

Steel Authority of India Ltd.

BSE: 500113 Sector: Metals & Mining
NSE: SAIL ISIN Code: INE114A01011
BSE LIVE 15:48 | 22 Aug 58.80 -0.65
(-1.09%)
OPEN

59.50

HIGH

60.10

LOW

58.40

NSE 15:59 | 22 Aug 58.80 -0.65
(-1.09%)
OPEN

59.45

HIGH

60.15

LOW

58.30

OPEN 59.50
PREVIOUS CLOSE 59.45
VOLUME 232999
52-Week high 68.55
52-Week low 44.25
P/E
Mkt Cap.(Rs cr) 24,288
Buy Price 58.90
Buy Qty 10630.00
Sell Price 0.00
Sell Qty 0.00
OPEN 59.50
CLOSE 59.45
VOLUME 232999
52-Week high 68.55
52-Week low 44.25
P/E
Mkt Cap.(Rs cr) 24,288
Buy Price 58.90
Buy Qty 10630.00
Sell Price 0.00
Sell Qty 0.00

Steel Authority of India Ltd. (SAIL) - Auditors Report

Company auditors report

To the Members of Steel Authority of India Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of STEEL AUTHORITY OFINDIA LIMITED ('the Company') which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss and the Cash Flow Statement and a summary of significantaccounting policies and other explanatory information for the year then ended.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the standalone financial statements.

Basis for Qualified Opinion The Company has not provided for:

i. entry tax amounting to '97.22 crore (current year '2.33 crore and last year ' 3.34crore) in the state of Uttar Pradesh '1091.02 crore (current year ' 6.70 crore and lastyear ' 13.04 crore) in the state of Chhattisgarh and '341.15 crore (current year ' 7.20crore and last year '119.14 crore) in the state of Odisha (refer note no. 29.1(i)(g);

ii. amount paid to DVC against bills raised for supply of power and retained as advanceby Bokaro Steel Plant amounting to '491.27 crore (current year- ' 97.68 crore and lastyear- '101.83 crore) (refer note no. 29.1(i)(f));

The total impact of above para (i) and (ii) has resulted in understatement of Lossafter Tax for the year by ' 1321.35 crore (Over statement of profit of Previous Yearended 3151 March 2015 by ' 1906.75 crore) overstatement of Reserves &Surplus by ' 1321.35 crore (As at 3151 March 2015 ' 1906.75 crore)understatement of Current Liabilities by ' 2020.66 crore (As at 31st March2015- ' 1906.75 crore) and understatement of Total Assets by ' 699.31 crore (Previous Yearended 31st March 2015 ' Nil).

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2016 and its loss and its cash flowsfor the year ended on that date.

Emphasis of Matter

We draw attention to the net sales include sales to Government agencies which arerecognised on provisional contract prices (refer note no. 32.1);

The mentioned cases are sub-judice and pending before the Hon'ble Supreme Court andother courts for a long time. The disputed demands contested on valid and bonafidegrounds have been disclosed as contingent liabilities as it is not probable that presentobligations exist on the Balance Sheet date. Therefore there is no adverse impact onloss. There is no change in the status of these cases till date.

Our opinion is not qualified in respect of this matter.

Other Matter

We did not audit the financial statements/information of 8 branches included in thestandalone financial statements of the Company whose financial statements/financialinformation reflect total assets of ' 44971.85 crore as at 3151 March 2016 andtotal revenues of ' 15849.68 crore for the year ended on that date as considered in thestandalone financial statements. The financial statements/ information of these brancheshave been audited by the branch auditors whose reports have been furnished to us and ouropinion in so far as it relates to the amounts and disclosures included in respect ofthese branches is based solely on the report of such branch auditors.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 'A' a statement on the matters specified in the paragraph3 and 4 of the Order.

2. As required by Section 143 (3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph abovein our opinion proper books of account as required by law have been keptby the Company so far as it appears from our examination of those books;

c. The reports on the accounts of the branch offices of the Company audited underSection 143 (8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report

d. The balance sheet the statement of profit and loss and the cash flow statementdealt with by this Report are in agreement with the books of account;

e. Except for the effects of the matter described in the Basis for Qualified Opinionparagraph abovein our opinion the aforesaid standalone financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

f. The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may not have an adverse effect on the functioning of the Company.

g. As per notification No. GSR 463(E) dated 5th June 2015 issued by the Ministry ofCorporate Affairs Government of India Section 164(2) of the Companies Act 2013 is notapplicable to the Company;

h. With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure 'B' and

i. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer note Note No. 29.1 to 29.4 to the financialstatements;

ii. The company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses; and

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund.

3. As required by section 143(5) of the Act we give in Annexure 'C' a statement onthe matters specified by the Comptroller and Auditor General of India for the Company.

For B.N. Misra & Co For Sharma Goel & Co. LLP For and on behalf of Board of Directors
Chartered Accountants Chartered Accountants
Firm Registration no.32l095E Firm Registration no.000643N
Sd/- Sd/-
[ B.N.Misra ] [ Amar Mittal ]
Partner Partner
(M. No. 083927) (M. No. 017755 ) Sd/-
For Singhi & Co. For Chatterjee & Co. (P.K. Singh)
Chartered Accountants Chartered Accountants Chairman
Firm Registration no.302049E Firm Registration no.0302114E
Sd/- Sd/-
[ Shrenik Mehta ] [ S.K Chatterjee]
Partner Partner
(M. No. 063769) (M. No. 003124)
Place : New Delhi Place : New Delhi
Dated : 30* May 2016 Date : 11th August 2016