REPORT ON INSTITUTIONAL TRAINING

Submitted to

UNIVERSITY OF MADRAS

In partial fulfillment of the requirements for the

Degree of B.Com. (C.S)

Training undergone at

STEEL AUTHORITY OF INDIA

Trainee

DANIEL . B

REGISTER NUMBER:121801159

DEPARTMENT OF CORPORATE SECRETARYSHIP

K.C.S.KASI NADAR COLLEGE OF ARTS & SCIENCE

(Belongs to S.V.H.N.A. Dharma Fund) Affiliated to University of Madras

Accredited with B+ Grade by NAAC

CHENNAI -600021

MARCH 2021

1
 DECLARATION

I hereby declare that the report on Institutional training at STEEL AUTHORITY OF INDIA for

the B.Com. (CS) Degree is my original work and that it has not formed the basis for the award of

any degree, associateship, fellowship or any other similar title.

Place :CHENNAI

Date: Signature of the Student

2
 FOREWORD

Institutional training is very important for the study of Corporate Secretaryship. The name

of the course itself is known as Corporate Secretaryship. It is a kind of source to improve the

knowledge about the company and also the way of behaving in the company i.e to move with

different kinds of people in a totally different atmosphere. The training proves to be much useful

for the future. I have done good service during my training.

I have taken some deep study about:

Introduction

Secretarial and Legal Department

Finance and Accounts Department

Other Departments

The aim of this training is not only to know the job but also to know how to proceed. This training

has lasted for a duration of 30 days and has proved to be of great help to me.

3
 ACKNOWLEDGEMENT
I hereby take this opportunity to express my deep gratitude to all outstanding and
magnanimous persons who helped and guided me in the various stages of the project.
I thank the almighty God who has given his grace and wisdom in doing this project work.
I express my deep sense of gratitude to our Management Committee Office Bearers and to
S.V.H.N.A.Dharma Fund.
I express my sincere thanks to my Principal, Dr.Shobha Edward,
M.C.S.,M.Phil.,P.G.D.P.M.&L.L.,P.G.D.C.S.M.,D.L.T.,NET.,Ph.D., for fostering an excellent
academic climate, which made this endeavor possible.
It is with hearty, gratefulness and eminent pride, I truthfully accept my greater indebtedness
due to Dr.Shobha Edward, M.C.S.,M.Phil.,P.G.D.P.M. & L.L.,P.G.D.C.S.M.,D.L.T.,NET., Ph.D.,
Head of the Department of Corporate Secretaryship who actuated my career in a fruitful manner
by this valuable area of study and for her guidance and precious counseling.
I offer my warmest regard to the faculty of the Department of Corporate Secretaryship –
Dr.Wilson Paul, M.C.S., M.Phil., M.Com., M.Phil., P.G.D.P.M., & L.L.,
P.G.D.C.A., D.L.T., SET., Ph.D., Dr.K.Lalithakameswari, M.Com(CS)., M.Phil., NET., Ph.D,
Mrs. J. Mizpah Queeny, M.E.,M.B.A., and the Head of the Department of Business
Administration-Dr.R.Devi, M.Com(CS).,M.Phil.,M.B.A., M.Sc. (Psychology)., Ph.D., for sparing
their sportive spirit which boosted me to attain higher standards.

My acknowledgements are to the company for providing me training and to the officials
who guided me and provided me with the necessary data.

I thank my parents for giving me wonderful guidance and support for the successful
completion of the project. My thanks are to God.

Signature of the Candidate

4
 CONTENTS
CHAPTER No TITLE PAGE No
1. 6
INTRODUCTION

2. 27
SECRETARIAL AND LEGAL
DEPARTMENT

3. 70
FINANCE AND ACCOUNTS
DEPARTMENT

4. 117

OTHER DEPARTMENTS
136
5. CONCLUSION

5
 CHAPTER-1

INTRODUCTION OF STEEL
AUTHORITY OF INDIA

6
HISTORY OF THE COMPANY

Steel Authority of India Limited (SAIL) is an Indian government owned steel agency based in
New Delhi, India. It is owned and operated by the Ministry of Steel , Government of India with an
annual turnover of INR 66,267 Crore (US$9.32 Billion) for fiscal year 2018-19.

Incorporated on 24 January 1973, SAIL has 65,807 employees (as of 01-Mar-2021). With an
annual production of 16.30 million metric tons,
SAIL is the 20th largest steel producer in the world and the largest in India.[3] The Hot Metal
production capacity of the company will further increase and is expected to reach a level of 50
million tonnes per annum by 2025.[4] Smt Soma Mondal is the current Chairman of SAIL.

OPERATIONS AND OBJECTIVES

As of 31 March 2015, SAIL has 93,352 employees, as compared to 170,368 (as of 31 March 2002).
There has been a continuous reduction of headcount over the past few years due to enhanced
productivity and rationalised manpower.

The total requirement of its main raw material, iron ore, is met through its captive mines. To meet
its growing requirement, capacities of existing iron ore mines are being expanded and new iron
ore mines are being developed. In addition, new iron ore deposits in the states of Rajasthan,
Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha and Karnataka are being explored. Around
24% of its coking coal

requirements are met from domestic sources, the remaining through imports. For improving coking
coal security, the company is also making efforts for development of new coking coal blocks at
Tasra and Sitanalla.[23]

7
SAIL produced 13.9 million tonnes of crude steel by operating at 103% of its installed capacity,
which is an increase of 1% over the previous year. It also generated 710 MW of electricity during
FY2014-
SAIL’s objective is the research and development of novel networking technologies using proofof-
concept prototypes to lead the way from current networks to the Network of the Future. SAIL
leverages state of the art architectures and technologies, extends them as needed, and integrates
them using experimentally-driven research, producing interoperable prototypes to demonstrate
utility for a set of concrete usecases. SAIL reduces costs for setting up, running, and combining
networks, applications and services, increasing the efficiency of deployed resources (e.g.,
personnel, equipment and energy).

SAIL improves application support via an information-centric paradigm, replacing the old
hostcentric one, and develops concrete mechanisms and protocols to realise the benefits of a
Network of Information (NetInf). SAIL enables the co-existence of legacy and new networks via
virtualisation of resources and self-management, fully integrating networking with cloud
computing to produce Cloud Networking (CloNe). SAIL embraces heterogeneous media from
fibre backbones to wireless access networks, developing new signalling and control interfaces,
able to control multiple technologies across multiple aggregation stages, implementing Open
Connectivity Services (OConS).

SAIL also specifically addresses cross-cutting themes and nontechnical issues, such as
socioeconomics, inclusion, broad dissemination, standardisation and network migration, driving
new markets, business roles and models, and increasing opportunities for both competition and
cooperation. SAIL gathers a strong industry-led consortium of leading operators, vendors, SME,
universities and research centres, with a valuable experience acquired in previous FP7 projects,
notably 4WARD.

The impact will be a consensus among major European operators and vendors on a well-defined
path to the Network of the Future together with the technologies required to follow that path.

8
MEMORANDUM AND ARTICLES OF ASSOCIATION

Memorandum of Understanding (MOU)

Every year MOU is signed between SAIL and Ministry of Steel, Government of India. The
document lays out performance evaluation parameters and targets, commitments / assistance from
the Ministry of Steel and action plan for implementation and monitoring of the MOU.

Memorandum of Association and Articles of Association

(Incorporated on 24th January 1973 under the Companies Act, 1956)

The document sets out the structure, purpose and operation of SAIL in accordance with Companies
Act, 1956.

2.Annual Report

The Report contains Director’s Report on the Company’s overall performance during the
preceding financial year, including production and financial performances of all units and
subsidiaries. The Report also contains the Company’s audited financial accounts, expenditure and
profit/loss statement.

9
OFFICE LAYOUT

The Indian Iron & Steel Company (IISCO), a SAIL subsidiary, was amalgamated with SAIL on
16th February 2006 and renamed IISCO
Steel Plant (ISP). This full-fledged integrated steel plant is one of India’s oldest. Established as an
industrial enterprise in 1918, IISCO produced iron from an open-top blast furnace at Hirapur (later
to be called Burnpur) in West Bengal for the first time in 1922. The plant was progressively
upgraded to a capacity for production of 4.26 lakh tonnes of saleable steel and 2.54 lakh tonnes of
pig iron annually. The plant manufactures a range of products, over some of which it holds
exclusive market dominance. Iron & steel produced by it has been acknowledged as being of the
finest quality.

10
.

11
Management

NameDesignation

A V KamlakarChief ExecutiveOfficerAjay AroraExecutive DirectorAmit

SenDirector – FinanceAnil Kumar ChaudharyChairmanAnirban
DasguptaDirector – PlanningDipak ChattarajChief Executive
OfficerHarinand RaiDirector – TechnicalK K JhaExecutive DirectorKartar
Singh ChauhanIndependent DirectorKrishan Kumar GuptaIndependent
DirectorM B BalakrishnanCo. Secretary & Compl. OfficerN K
TanejaIndependent DirectorN ShankarappaIndependent DirectorP K
DashExecutive DirectorPuneet KansalGovernment Nominee DirectorR
GopalExecutive DirectorS MondalExecutive DirectorSanjeev

12
New Delhi Fri, 03/10/2006 – 22:51

Setting into motion the revival and expansion of IISCO Steel Plant (ISP), the recently amalgamated
steel unit of SAIL, the Board of Directors of SAIL accorded the approval for rebuilding of Coke

13
Oven Battery No.10 at ISP at an estimated cost of Rs. 319 crores. This is the first major project
being approved after ISP’s merger with the parent company – SAIL.

Coke Oven Battery No.10 of ISP was built in the early eighties and had been closed down in 1997.
ISP needs to run two batteries at a time to produce 0.75 million tonne per annum (MTPA) of coke
for 1.0 million tonnes of hot metal production. Hence, it is crucial that rebuilding of battery No.10
be taken up and completed by the year 2008-09 so as to give a continuous coke supply for 1.0 MT
of hot metal production. The rebuilding of the coke oven will also help in lowering coke rate in
Blast Furnace.

ISP, which was a fully owned subsidiary of SAIL, was amalgamated with the parent company with
effect from 16th February 2006. The plant has already drawn up a major modernisation program at
an estimated expenditure of Rs. 8017 crore to expand the annual production capacity from the
present level of 0.85 MTPAMTPA by 2011-12. The investment plan includes

14
WORKING HOURS

Steel Authority of India Limited (SAIL) has introduced a ‘Shorter Working

Period Scheme’ for its employees. The scheme is effective from November 1 and is applicable for
all regular employees up to mid-management level.

A company statement said that this is to attain a better work-life balance.

“Under the scheme, employees up to E-7 grade can opt from various shorter working hours options
like 3 days a week, every alternate day, four hours every working day or half of the working days
in a month with a variable pay structure,” the statement said.

“The employees availing of this scheme will be able to retain facilities and benefits including
HRA/accommodation, medical benefits and other perks, as per the scheme,” the statement added.

Commenting on the scheme, Anil Kumar Chaudhary, Chairman, SAIL, said, “It will give a larger
canvas to several employees wanting to invest or devote time to other pursuits and responsibilities,
while also being in employment.”

15
DEPARTMENT

(of which 8 are equipped with sophisticated mechanised handling systems), 43 Consignment
Agents and 27 Customer Contact Offices function in a synchronised manner to deliver quality
SAIL steel to every corner of the country. CMO`s domestic marketing effort is supplemented by
its everwidening network of district and rural dealers who meet the demands of the smallest
customers in the remotest corners of the country. CMO, through its joint venture partner M/s
Mjunction Services Ltd, has simplified steel buying by providing Internet-based facilities through
its online ‘e-store’, providing door delivery facilities to small house-builders.

A strong IT support system enables real-time network connectivity within the entire CMO
network. Extensive customer contact, product and segment specialization, close monitoring of
order servicing through order conformance Index and feedback analysis through a Customer
Satisfaction index are established norms at CMO. The customerfriendly approach of CMO is
backed by practical after-sales service. Through the process of Key Account management, CMO
provides single-window service to key customers across the country for e very business transaction
from enquiry to order booking, order tracking to delivery, and even consultancy and afte rsales
service.

International Trade Division(ITD), of CMO undertakes exports of Mild Steel products and Pig
Iron from SAIL`s five integrated steel plants. Even ready to meet the exacting demands of its
global customers, ITD maintains a close liaison with customers and the production units to cater
to the customized requirements of its customers both in terms of quality and sizes.

DIVISIONS / DEPARTMENTS OF C M O

Commercial Directorate

Primary role of the group based in New Delhi is to handle all Parliamentrelated work, including
Parliament questions and matters relating to COPU, Consultative Committees, all references

16
 from Ministries / MPs, Quality Performance Review (QPR) meetings with the Ministry of Steel,
submission of monthly agenda on Sales & Marketing review for the Board as well as Chief
Executives, and all matters related to meetings of Steel Consumer Council / COSICI / FEII and
other industry associations.

Home Sales

SWith a three-tiered set-up comprising Headquarters in Kolkata, Regional

Offices in New Delhi, Kolkata, Mumbai and Chennai, 37 Branch Sales Offices 10 Customer
Contact Offices, 7 Sales Resident Manager Offices and other outlets in various parts of the country,
CMO’s Home Sales group takes care of the domestic marketing of iron & steel products produced
by the steel plants of SAIL. Home Sales consists of Long Products, Flat Products and PET (pipes,
electrical steels & tinplates) product groups.

Retail

Executives of this group in HQ and Regional Offices are responsible for appointment of dealers
across the country, making policy interventions for organising sales to dealers and expanding
scope for dealerships in order to increase sales of branded products, improve market share and
promote usage of SAIL products

CMO’s Warehousing group, headquartered in Kolkata and comprising of 25 Departmental

Warehouses and 21 Consignment Agencies is responsible for warehousing and transportation logistics
for home sales. The group handles iron & steel materials despatched by the steel plants of SAIL for
stocking as well as delivery to domestic customers. It also undertakes contracting for road
transportation from various warehouses and other outlets as well as physical despatches from
warehouses to final destinations. The group is also responsible for settlement of claims with the
Railways arising out of despatch of iron & steel products from the SAIL plants.

17
International Trade Division

Located in New Delhi, this group is primarily responsible for sale of iron & steel products produced
by the SAIL plants in international markets and expanding export in terms of destinations as well
as product-mix.

Communication & Information Technology

Providing IT support to various departments of Marketing / HQ / Regional Offices and with a

Software Development Centre at Hyderabad, this department is responsible for computerisation of
various functions of CMO, development and maintenance of necessary software and hardware
facilities, Management Information System and ITrelated troubleshooting.

With executives in HQ, Kolkata and all Regional offices, the primary role is of this group is human
resource management. Its main functions include planning and development of human resources
of CMO, organisational development and employee services & welfare, apart from maintenance
of peaceful industrial relations. Besides, the group is also responsible for medical, administration
and liaison-related activities.

Finance & Accounts:

Finance executives are spread throughout the country at all CMO locations, responsible for
accounting, finance management and budgetary control in CMO.

Management Division

This group, with executives in Headquarters and Regions, is primarily responsible for construction
/ maintenance of office buildings / warehouses, equipment, etc. It maintains company’s records
related to estates / properties, disposal of idle assets and follow-up and settlement of cases /
disputes pertaining to company’s estate / properties, etc.

18
Legal Cell

Headquartered in Kolkata and with representatives in the four Regional

Offices, the group is responsible for handling all legal matters, including RTI Act, giving advice
on legal matters to all offices of CMO and managing court / arbitration cases.

Vigilance

Vigilance executives in HQ and Regional Offices are responsible for advising on vigilance matters,
investigation of cases and suggesting ways and means for preventive vigilance.

Internal Audit

Conducts audit on activities of various departments with a view to ensuring that rules and standards
are adhered to

SUBSIDIARY COMPANIES

State-run steel maker Steel Authority of India Ltd (SAIL) is shutting down two of its subsidiaries
located in Uttar Pradesh and Jharkhand.

“SAIL has initiated actions for closure/exit from certain JV companies as well as subsidiaries
which are either non-performing or non-operational. The closure action for two subsidiary
companies viz SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited under Fast
Track Exit Mode is in progress,” the company said a report

19
.

20
Steel ministry sources said that ministry was studying the committees recommendations after which a final
proposal of the ministry would be sent to the Cabinet for clearance.

21
Technology imports

In a bid to counter a sudden surge in imports into India at predatory pricing, steel major Steel Authority of
India (SAIL) has written to the union steel ministry seeking immediate imposition of minimum import price
(MIP) for steel products similar to what was imposed in 2015.

SAIL has cited in its letter to the steel ministry that due to safeguarding measures taken by countries like
USA, Canada and from Europe, there has been a continuous surge of steel imports from China, South Korea
and Japan – which also enjoy zero tariff under various free trade agreements, along with ASEAN countries.

State-run SAIL in its letter to the ministry has highlighted that even though globally steel prices have
lowered by $100 in the past three months, there has been an increase in the cost of raw materials by $170
per tonne. Pushing specifically for hot-rolled coil HRC, SAIL has sought a minimum import price of at
least $615 per tonne.

Steel Authority of India Limited (SAIL) had undertaken Modernization and Expansion of its five Integrated
Steel Plants at Bhilai (Chhattisgarh), Bokaro (Jharkhand), Rourkela (Odisha), Durgapur (West Bengal),
Burnpur (West Bengal) and Special Steel Plant at Salem (Tamil Nadu) to enhance its Crude Steels capacity
from 12.8 Million Tonne Per Annum (MTPA) to 21.4 MTPA. The Modernization and Expansion at the
above Steel Plants has been completed and various facilities are under operation, stabilization and ramp up.
The Plant-wise details of Crude Steel production capacity (before and after modernization and expansion)
for major Steel Plants of SAIL are given below:-

22
Profitablity

Steel Authority of India Limited is an Indian government owned steel agency based in New Delhi, India.
It is owned and operated by the Ministry of Steel, Government of India with an annual turnover of INR
66,267 Crore for fiscal year 2018-19. Incorporated on 24 January 1973, SAIL has 65,807 employees.

CEO: Soma Mondal (1 Jan 2021–)

❖ Founded: 19 January 1954

❖ Headquarters: New Delhi

❖ Number of employees: 68,742 (1 Jun 2020)

❖ Revenue: 62,569 crores INR (2020, US$8.8 billion)

❖ Subsidiaries: Rourkela Steel Plant, Bhilai Steel Plant, Salem Steel Plant, NSPCL, more ❖

Parent organizations: Government of India, Ministry of Steel

23
SAIL is in the process of modernising and expanding its production units, raw material resources
and other facilities to maintain its dominant position in the Indian steel market. The aim is to
increase the production capacity from the base level production of 14.6 MT per annum (2006–07)
to 26.2 MT per annum of hot metal.

The following table shows the increased production of various items prior to and post expansion.

On 25 May 2012, Steel Authority of India Limited entered into a

Memorandum of Understanding with the Government of West Bengal and Burn Standard
Company Ltd. for setting up of a Railway Wagon factory of approximately ₹210 crore (US$29
million). This project will create an approximate 75,300 jobs.
The company also looking to establish one full capacity integrated plant in Andhra Pradesh or
Telangana and surveying the possibilities to set up the plant. The plant, which was proposed to be
the first steel plant of such scale in the state, was estimated to get an investment of Rs. 4,400 crore.

Achievements

• Best of all" Rajiv Gandhi National Quality Award in 1993, 2006, and
2007 for their Bhilai and Bokaro plants[25]
• Quality Summit New York Gold Trophy 2007 (International Award for Excellence &
Business Prestige) and Award of Excellence Maintenance for Sumitomo Heavy Industry &
TSUBKIMOTO-KOGIO, Japan won by Alloy Steel Plant, Durgapur.

• SAIL was featured in the 2008 list of Forbes Global 2000 companies at position 647.[26]
• Golden Peacock Award for Combating Climate Change – 2008 for BSP, Occupational
Health and Safety- 2008 for BSL

• National Safety Award to Bhilai Steel Plant announced by the Ministry of Labour &
Employment, Government of India – 2008

24
• Durgapur Steel Plant won the 2nd Prize in the Association of Business Communicators of
India Awards – 2008.

• Ispat Bhasha Bharati. the Rajbhasha Journal of SAIL has been awarded with the first prize
under the All India House Journal Award Scheme – 2008–09

• Salem Steel Plant received the prestigious Greentech Gold Award in Metal and Mining
Sector – 2008–09.

• Golden Peacock Award for Corporate Social Responsibility won by

Bhilai Steel Plant (BSP) for the third year in a row – 2009.

• Rourkela Steel Plant collected the prestigious Srishti Good Green Governance (GCube)
Award – 2009.

• Greentech HR Excellence Award secured by the Durgapur Steel Plant – 2009

• The steel township of Rourkela Steel Plant (RSP) has been ranked 14th in sanitation and
cleanliness by Union Urban Development Ministry – 2009–10

• Greentech Safety Gold Award was given to Bhilai Steel Plant – 2010

• The HR Excellence Award by the Greentech Foundation won by Bhilai Steel Plant – 2010

• SSP has won the prestigious Greentech Silver Award in Training Category of Greentech
HR Excellence Awards – 2010.

• Award for financial and operational strength by Indian Institute of Industrial Engineering
(IIIE)- 2009–10

• Golden Peacock Environment Management Award – 2011

• Randstad Award for HR Practices and Employer Branding under

'Manufacturing Industries' category – 2011
• Maiden Wockhardt Shining Star CSR Award in the Iron & Steel Sector category – 2011.

• Salem Steel Plant (SSP) has won the prestigious National

25
Sustainability Award for the 6th time in succession and 13th time since inception of the award
from Indian Institute of Metals (IIM)2011

Of the 33 Prime Minister's Shram Awards Announced for 2010 by the Ministry of Labour,
Government of India,17 of which went to PSUs, SAIL employees won 11 awards. Of the total
number of 76 awardees for the year, 45 belong to SAIL – a remarkable distinction for any
organisation.
Maharatna SAIL has received the prestigious Golden Peacock Environment Management Award
for the year 2011. The award, in recognition of SAIL's initiatives and achievements in the field of
environment management, was presented by Union Minister for Home Affairs Shri P.
Chidambaram on 24 June 2011

74 of a total of 128 awardees who have won the prestigious Vishwakarma

Rashtriya Puraskar (VRP) are from SAIL. The 15 out of 28 awards won by
SAIL went to our 74 employees for the performance year 2008. Bhilai Steel Plant won 7 such
awards involving 36 employees, Bokaro Steel Plant won 6 awards involving 29 employees.
Durgapur Steel Plant and Salem Steel Plant both won 1 award each involving five and four
employees respectively. SAIL employees have won 4 out of 5 awards of Class A, which is the
highest number of A Class awards won by any PSU in
India.

26
 CHAPTER-2

SECRETARIAL AND LEGAL

DEPARTMENT
OF STEEL AUTHORITY OF INDIA

27
INTRODUCTION

The government today appointed senior IAS officer Saraswati Prasad as the new chairman and
managing director of SAIL. Prasad, who is the special secretary and financial advisor in the steel
ministry, has been given additional charge of SAIL CMD on retirement of incumbent P K Singh.
“Assignment of additional charge of the post of chairman and managing director, Steel Authority
of India Limited (SAIL) to Saraswati Prasad, lAS…, special secretary and financial advisor,
Ministry of Steel, with immediate effect and until further orders,” Appointment Committee of the
Cabinet, Ministry of Personnel, Public Grievances and Pensions said today.

The government headhunter PESB had recommended the name of

Anil Kumar Chaudhary for the top post of state-run SAIL. “PESB (Public Enterprises Selection
Board) recommended the following name (Anil Kumar Chaudhary) for the post of Chairman, Steel
Authority of India Ltd,” the government headhunter had said in March while mentioning his name.
Chaudhary is the director finance of the country’s largest steel maker SAIL.

Besides Chaudhary, other candidates who were interviewed by the public enterprises’ selection
board were Moil Director Tanmaya Kumar Pattnaik, SAIL Executive Director Alok Sahay, SAIL
Director (Commercial) Soma Mondal and Central Electronics Ltd Chairman and Managing
Director Nalin Shinghal, PESB had said. Government headhunter late last year had invited
applications for the post of SAIL chairman. The incumbent P K Singh, who has retired, had taken
charge as SAIL chairman on December 10, 2015. Prior to this assignment, Singh was the chief
executive officer of SAIL’s Durgapur Steel Plant.

28
FUNCTIONS OF SECRETARIAL DEPARTMENT

Pursuing Technical projects at Steel Plant : Formulation, Review

& Monitoring, Procurement actions, Trial & experiments, Data Analysis and Completion
report

Pursuing Basic research projects at RDCIS ; Formulation, Review, Experiments, Data

Analysis and Completion report

STOCK EXCHANGE

Close price will be updated after 18.15 hrs on account of joint press release dated February 09,
2018 (joint press release)On Ex-Date, the

% change is calculated with respect to Adjusted price (adjustment with respect to Corporate
Actions such as Dividend, Bonus, Rights & Face Value Split)52 week high & 52 week low prices
are adjusted for Bonus, Split & Rights Corporate actions.The upper and lower price bands, for
scrips on which derivative products are available or scrips

included in indices on which derivative products are available, are on the basis of dynamic price
band of 10%. In the event of a market trend in either direction, the dynamic price bands may be
relaxed during the day in co-ordination with other Exchange.For securities that undergo call
auction in special pre-open session - % change is calculated with respect to equilibrium price
determined in the session.

29
(in case of New/IPO Listings; Re-Listing; Corporate AAction Surveillance action.)Sectoral Index
and P/E are for reference and does not necessarily imply that the security is a constituent of the
Index.

QUATATIONS
Steel Authority Of India Ltd. Was incorporated in the year 1973. Its today’s share price is 76.7. Its
current market capitalisation stands at Rs 31681.13 Cr. In the latest quarter, company has reported
Gross Sales of Rs. 616605.5 Cr and Total Income of Rs.626457.7 Cr. The company’s management
includes Shashank Priya, Nidgurti Shankarappa, MB Balakrishnan, Krishan Kumar Gupta, Puneet
Kansal, Anirban Dasgupta, Amit Sen, Harinand Rai, Soma Mondal.

It is listed on the BSE with a BSE Code of 500113 , NSE with an NSE

30
Symbol of SAIL and ISIN of INE114A01011. It’s Registered office is at Ispat Bhawan,Lodi Road,
New Delhi-110003, Delhi. Their Registrars are ACC Ltd. It’s auditors are AK Sabat & Co, BN
Mishra & Co, BN Misra & Co, Chatterjee & Co, Chaturvedi & Co,

ISSUE OF SHARES

The offer for sale (OFS) of the government’s five per cent shareholding in steel major Steel
Authority of India (SAIL) got great response on the first day of its opening on Thursday. Shares
were was oversubscribed 3.6 times and enthused by the response, the government has decided to
exercise the greenshoe option of another 20.65 crore shares or five per cent of the total

“Issue subscribed 4.14 times of base size at a clearing price above the floor price by non-retail
investors. The govt has decided to exercise the green shoe option. Retail investors get chance to
bid tomorrow,” DIPAM Secretary Tuhin Kanta Pandey said in a tweet.

Over 74.74 crore shares were sought by non-retail investors at the close of trading hours, stock
exchange data showed. The shares sought were 362 per cent of the overall issue size and nearly
413 per cent of the shares reserved for non-retail investors who were supposed to make bids on the
opening day of the offer for sale (OFS). Of the bids, 37.46 crore put in 100 per cent margin money.

The total OFS size was 20.6 crore shares of face value of Rs 10 each (base offer size), with an
option to

Additionally sell up to 20.6 crore equity shares. With this, the total OFS goes up to 41.3 crore
shares and government is likely to mobilise Rs 2,664 crore at a floor price of Rs 64 per share.

SAIL is India’s largest steel producer with an annual capacity of about 21 million tonne per annum
(MTPA). The government holds 75 per cent stake in SAIL. Of the 20.65 crore shares on offer,
18.07 crore have been reserved for non-retail investors and 2.58 crore for retail investors. The
indicative price of bids that came in on Thursday was Rs 65.49, according to BSE data

31
SAIL closed nearly 10 per cent down on the BSE at Rs 67.25. At least 12.5 per cent of the shares
will be reserved for allocation to retail investors. So far, the government has raised Rs 28,298.26
crore from disinvestment proceeds. This includes Rs 14,453.77 crore received as dividend from
the public sector companies.

PROCEDURE FOR ISSUE OF SHARES

For public issuing of shares, the following steps are required to be fulfilled:

1. The company must be a registered company with the registrar.

2. Prospectus bearing the invitation for buying of shares of the company to the public.

3. The prospectus must be submitted to the registrar (SEBI) before publishing.

4. The prospectus should have the required information about the company like:

❖ Name of the Directors

❖ Terms of issue

❖ Minimum subscription

❖ Type of investment

❖ Previous years performance

❖ Opening and closing dates

32
❖ Application form and requisite fees

❖ Allotment

❖ Call-on dates

❖ Bank details for deposit.

5. The Registrar after confirming amenability publishes the prospectus

6. After selecting the applicants for allotment of shares, a regret letter is sent to everyone else and
share certificate is issued after the share allotment is done.

7. The remaining shares are then allocated on call on dates. Depending on the number of shares,
the calls are made for the remaining shares.

8. STATUTORY LAW REFERENCE (INDIAN KANOON):

▪ Section 2(84), Section 23, Section 26, Section 42 and Section 60(1) of Companies Act 2013.

▪ Companies (Prospectus and Allotment of Securities) Rules, 2014.

▪ Securities and Exchange Board of India Act, 1992.

LANDMARK JUDGEMENTS:

▪ I.T Cube India (P) Ltd vs. I.T Cube Inc (2006) 69 SCL 319 (kar) ▪
Khoday Distilleries v. CIT, Civil Appeal 6654/2008

▪ Vodafone India Services Private Limited v. UOI (WP №871 of 2014, Bombay HC IMPORTANT

DO (S) AND DON’T (S):

33
▪ Always deal with the market intermediaries registered with SEBI / stock exchanges. ▪ Collect

photocopies of all documents executed for registration as a client, immediately On its execution.

Ensure that the documents or forms for registration are fully filled in.

▪ Always mention all the details clearly in the prospectus and certificate ▪ Mention clearly what is
the mode of issue of shares.
▪ That the requisite procedure mentioned in the act is followed

34
35
TRANSFER AND TRANSMISSION OF SHARES

Hence a suit was filed on 16.4.85 before the learned Munsiff, Sadar, Agartala challenging the sail
transfer and a petition for temporary injunction under Order…. On 3.5.84 he was transferred by
the Director of School Education to Kamalchhara High School, Sonamura, representation was
submitted against the said transfer but the petitioner was released on 31.1.85…this court. The State
filed a counter affidavit against the petition for stay. The plaintiff-petitioner challenged the transfer
order on three grounds namely, that the Director of School Education

36
CONSOLIDATION AND SUBDIVISION

SAIL Refractory Unit, Bhandaridah in Jharkhand

SAIL Refractory Unit, Bhilai in Chhattisgarh

SAIL Refractory Unit, IFICO, Ramgarh in Jharkhand

SAIL Refractory Unit, Ranchi Road in Jharkhand DEBENTURES

Steel Authority Of India Ltd Most Active Debt Securities, Sail Corporate Bonds, Sail
Debentures and Bonds

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DEBENTURE CERTIFICATE

38
DIVIDEND

The Board of Directors of Steel Authority of India Ltd (SAIL) at its meeting held today, have
declared Interim Dividend @ Rs. 1/- per equity share of Rs. 10/- each (10% of the paid up equity
share capital of the company).

Shares of STEEL AUTHORITY OF INDIA LTD. Was last trading in BSE at Rs.57.6 as compared
to the previous close of Rs. 57.1. The total number of shares traded during the day was 16426921
in over 19156 trades.

The stock hit an intraday high of Rs. 59.8 and intraday low of 56.95. The net turnover during the
day was Rs. 963413999.

LOAN

State-owned Steel Authority of India (SAIL) is likely to see its debt burden increase to Rs 44,000
crore by the end of this financial year from Rs 43,890 crore last year, owing to capital expenditure
needs in the final stretch of its long-drawn Rs 70,000-crore expansion and modernisation
programme.

Mumbai: State-owned steelmaker, Steel Authority of India is on a path to deleverage its balance
sheet and is planning to bring down the debt levels to Rs 45,000 crore by the end of December
2020 and to Rs 40,000 crore by March 2021 from its current level of
Rs 50,638 crore

DIVIDEND WARRANT

A dividend warrant is a cheque sent by a company to a shareholder for payment of dividend to the
registered address of the shareholder. Concept:

39
BONUS SHARES

Steel Authority of India (SAIL) Ltd. Has not announced any bonus since Jan 1, 2000.

REGISTERS MAINTAINED

The various categories of documents that are being held by the Company or under its control are
given below:

(A)Memorandum & Articles of Association of the Company

(B)Books of Accounts maintained by the Company Annual Returns and Statutory Registers under
the Companies Act, 1956 Annual Reports of the Company

MEETING

Board Meeting - 23-Jan-2021 - -

Steel Authority of India Ltd has informed BSE that the meeting of the Board of Directors of the
Company will be held on January 29, 2021, inter alia, to consider, approve and take on record the
Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and nine
months ended December 31, 2020; and consideration of Interim Dividend for the Financial Year
2020-21, if any.

Board Meeting - 30-Oct-2020 - -

40
 STEEL AUTHORITY OF INDIA LTD.has informed BSE that the meeting of the Board of
Directors of the Company is scheduled on 06/11/2020 ,inter alia, to consider and approve and take
on record the Unaudited Standalone and Consolidated Financial Results of the Company for the
quarter and half year ended 30th September, 2020

Board Meeting - 07-Sep-2020 - -

Quarterly Results

Board Meeting - 03-Sep-2020 - -

STEEL AUTHORITY OF INDIA LTD.has informed BSE that the meeting of the Board of
Directors of the Company is scheduled on 10/09/2020 ,inter alia, to consider and approve and take
on record the unaudited standalone and consolidated financial results for the Quarter ended 30 th
June 2020 The Board Meeting to be held on 10/09/2020
Stands Cancelled. (As Per BSE
Announcement Dated 03.09.2020)

Board Meeting - 06-Jul-2020 - -

STEEL AUTHORITY OF INDIA LTD.has informed BSE that the meeting of the Board of
Directors of the Company is scheduled on 10/07/2020 ,inter alia, to consider and approve and take
on record the Audited Standalone and Consolidated Financial Results of the company for the
quarter and year ended 31st March 2020.

Board Meeting - 29-Jun-2020 - -

STEEL AUTHORITY OF INDIA LTD.has informed BSE that the meeting of the Board of
Directors of the Company is scheduled on 03/07/2020 ,inter alia, to consider and approve and take
on record, the audited Standalone and Consolidated financial results for the year ended 31 st March,
2020 Audited Results(Cancelled) The Board Meeting to be held on 03/07/2020 Stands Cancelled.
(As per BSE Bulletin Dated on 01/07/2020) -

STEEL AUTHORITY OF INDIA LTD.has informed BSE that the meeting of the Board of Directors
of the Company is scheduled on 30/06/2020 ,inter alia, to consider and approve and take on record

41
the Audited Standalone and Consolidated financial results for the quarter and year ended 31 st March
2020.

NOTICE

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AGENDA

Agenda is a list of meeting activities in the order in which they are to be taken up, beginning with
the call to order and ending with adjournment. It usually includes one or more specific items of
business to be acted upon. It may, but is not required to, include specific times for one or more
activities. An agenda may also be called a docket, schedule, or calendar. It may also contain a
listing of an order of business.

MINUTES

The minutes of a meeting are usually taken by a designated member of the group. Their task is to
provide an accurate record of what transpired during the meeting.

50
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ADMISSION FORM

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PROXY FORM

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CHAIRMAN’S SPEECH

Dear Shareholders

It is my privilege to apprise you with the achievements of your

Companyduring the Financial Year 2018-19. The year marked the return of your Company into
black.It was a year of noticeable improvement in the performance a year in which the
persistentefforts of your Company to stage the turnaround finally culminated into profits
afterposting losses for the past 3 years consecutively.

Your Company achieved sales turnover of र66267 crore during theFinancial Year 201819 which

is higher by 16% over previous year. The position of loss in the previous year 2017-18 at र(-) 482

crore was reversed and your Company posted a Profitafter Tax (PAT) on standalone basis at र2179

crore in FY19. The consolidated profit aftertax of the Company stood at र2349 crore for FY19 as

against र(-) 281 crore in FY18. Thepersistent strategic approach to improve operational

profitability assisted SAIL toimprove the EBITDA in FY19 to र10283 crore almost doubling over

the performance ofर5184 crore in FY18.

The improvement in financial performance was based upon the improvedoperational performance
indicated by increase in Saleable Steel production (7%) increasein Net Sales Realisation (NSR)
for 5 ISPs (16%) higher share of Concast productionimproved product-mix reduction in Coke Rate
reduction in specific wage bill etc.However the same has been partially offset due to increase in
imported coal ratepurchased power rate higher expenditure on repairs & maintenance stores
&spares security expenses loss on account of foreign exchange variations higher importedcoal in

62
blend provisioning towards various mining related issues provision for entry taxin the State of UP
following the Court Order and increase in interest and depreciationcosts.

On the production front Financial Year 2018-19 saw number of newrecords being created. The
production improved substantially with the ramping up of newfacilities. Your Company achieved
its highest ever production of Hot Metal of 17.5 MTCrude Steel of 16.3 MT and Saleable Steel of
15.1 MT. It also clocked an all-time bestperformance of Continuous-Cast (CC) Steel production
of 13.8 MT with a growth of 8% overprevious best of 12.8 MT achieved in 2017-18.

With the modernisation and expansion plan on the verge of completionthe modernised and
expanded Bhilai Steel Plant (BSP) was dedicated to the
Nation by theHon’ble Prime Minister on 14th June 2018. The new Steel Melting Shop (SMS-III)
at BSP wasput into operation along with 2 convertors 3 casters 2 Ladle Furnace and 1 RH
Degasser.The hot trial for Bar Line of Bar & Rod Mill (BRM) at BSP also commenced
duringDecember’18 while the trial rolling of Wire Rod from Rod Line of BRM started
inFebruary’19. At Bokaro Steel Plant (BSL) the hot trials of Hot Dip Galvanising Line atCold
Rolling Mill-III were started in June’18. The upgraded Blast Furnace-1 (Parvati) atRourkela Steel
Plant (RSP) was blown -in on in May’18 and also dedicated to the Nation on11th June 2018 by
the Hon’ble Union Minister of Steel.

A number of new initiatives were taken during the year resulting inimprovement in productivity
and efficiency across all Plants. 20 new products/grades weredeveloped during the year with
noticeable amongst them being NPB-750 at IISCO Steel Plant(ISP) and LHB Wheels at Durgapur
Steel Plant (DSP). One of the most important products in the basket of SAIL viz. Rails (for supplies
to Indian Railways) witnessed the highestever production at 9.85 lakh tonnes (vis—vis 9.03 lakh
tonnes in FY 18) during theFinancial Year 2018-19 with commercial production from new
Universal Rail Mill (URM)showcasing a 83% growth year on year. The total despatches of UTS90
Rails consisted ofrecord long rail dispatch of 4.48 lakh tonnes. At DSP the new mill MSM saw
theproduction double to 1.71 lakh tonnes from 0.99 lakh tonnes in FY18. This aided the Plantin
achieving its best ever performance for overall Saleable Steel production at 2.13 MT.At RSP the
New Plate Mill continued the stellar performance and the new benchmark byproducing 8.61 lakh
63
tonnes during the FY19. Supported by the performance at otherfacilities the Plant overhauled its
previous performance and recorded the best everSaleable Steel production at 3.34 MT. Bokaro
Steel Plant (BSL) recorded best everperformance in production of Cast Slab HR Coil and CR Coil
at 3.40 MT 3.69 MT and 1.14MT respectively. ISP apart from development of NPB 750 started
closed casting throughmonotube route. Other initiatives at ISP ensured its rapid progress towards
stabilizationand the Plant is also expected to contribute a decent share in the overall profitabilityof
your Company in the years to come

During the year your Company’s total requirement of iron ore was metfrom captive sources.
SAIL’s captive mines produced 28.35 million tonnes (MT) of iron ore.

SAIL steel has been a part of every major national infrastructureproject.

Your Company proudly associates itself with India’s Defence RailwaysInfrastructure Space Power
Manufacturing etc. Living up to its label of being the mosttrusted and valued partner in Nation’s
development SAIL supplied steel to projects ofnational importance like Statue of Unity
(tallest statue in the World) Bogibeel Bridge(longest rail-cum-road bridge in
India) Kishanganga and Tuirial Hydro Projects Easternand Western Peripheral Expressways
Lucknow-Agra Expressway etc. in FY’19 thus giving afillip to India’s growth story under the
ambit of National Steel Policy 2017 as well as’Make in India’ movement. Aimed at import
substitution new grades like Quenched &Tempered Plates (SAIL WR 400 ASTM 517 F S690 QL)
High Tensile Parallel Flanged BeamsMedium
Carbon Wire Rods
(HC 52BSAE 15B21) etc. were produced and supplied for the firsttime. Your
Company has also supplied steel for various defence projects includingindigenously built
AntiSubmarine Warfare (ASW) Stealth Corvette INS-Kiltan and the firstindigenous as well as
biggest artillery gun ‘Dhanush’ of the Indian Army.

On the marketing front SAIL launched diverse initiatives to increaseits market presence in
different areas by targeting defined market segments. The Companyintroduced strategic processes
like Sales Force Effectiveness (SFE) Programme and KeyAccounts Management (KAM) Process
during the year. The branding initiatives saw the launchof a new brand “NEX” to promote Parallel
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Flange Sections being manufactured byDSP and ISP. Further the Company had made preparation
for launch of its “SeQR”brand to promote the TMT Bars being manufactured by ISP based on its
higher safety relatedproperties and features against earthquake. The brand has finally been
launched in the FY2019-20. The initiative “Gaon Ki Ore” saw organisation of more than

150workshops aimed at enhancing per capita usage of steel in rural construction

During 2018-19 your Company achieved its best ever sales volume of14.12 million tonnes (MT)
despite the second half of the year witnessing a strongundercurrent in the market for steel products.
Continuing to strengthening its presence ininternational markets SAIL exported 0.76 MT of steel
a growth of 9% over CPLY. With theemphasis on increasing sales of special quality steel the
proportion of these productswas increased to 42% of the overall sales. In this regard supplies from
the Cold RollingMill #3 at Bokaro have been steadily increasing to consumers in the highly
demanding highvalue auto segment besides new customers in Power sector. Supplies of WRC in
specialgrades has commenced from the new mill at IISCO Steel Plant. With focus on meeting
therequirement of small consumers 0.7MT of steel was sold through the retail channel. With the
aim of improving the product-mix to meet the requirement of local markets SAIL hasinaugurated
new Steel Processing Units at Bettiah and Jagdishpur.

Your Company has been taking all appropriate measures to restore andrehabilitate the degraded
eco-system to maintain and enhance biodiversity. This includeecological restoration of mined out
areas fresh plantation bio-sequestration of CO2enhancing utilization of wastes through application
of 4Rs (Reduction Reuse Recyclingand Recovery) environment friendly disposal of Poly
Chlorinated Bi-Phenyls utilizationof renewable energy sources installation of bio-digesters for
processing of wastes etc.More than 20.5 million saplings have been planted across SAIL Plants
and Mines till datesince inception. Giving special thrust for plantation more than 4.42 lakhs of
saplingshave been planted during 2018-19.

Your Company is committed to the highest standards of

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CorporateGovernance which are reinforced in its vision and credos. The philosophy of the
Company inrelation to Corporate Governance is to ensure transparency disclosures and reporting
thatconfirms fully to laws regulations and guidelines including the Companies Act 2013
SEBI(LODR) Regulations 2015 and DPE guidelines and to promote ethical conduct throughout
theOrganization with the primary objective of enhancing shareholders value while being
aresponsible corporate citizen. SAIL has formulated policies which ensure
transparencyaccountability disclosures and reporting. Ethical conduct throughout the Organization
ispromoted with the primary objective of enhancing shareholders value. SAIL’s efforts as
aresponsible corporate citizen and partner in Nation Building have been recognized in theform of
awards and accolades by several forums.

Your Company believes that building trust will enhance its reputationand boost the confidence of
its investors & stakeholders. In line with this SAIL has been proactively and regularly sharing key
information with all stakeholders through useof different communication channels.

Your Company has been taking a number of strategic initiatives for itsturnaround growth and
sustainance. SAIL had launched the Companywide turnaround program’SAIL Uday’ in 2016-17
which laid the roadmap for improvement in the areas of RawMaterials Operations Sales &
Marketing Supply Chain & Logistics Personnel andHuman Resource has been developed and
deployed culminating in the performance during FY19. Other than this your Company has adopted
a multi-pronged approach that includesorganic growth brown-field projects technology leadership
through strategic alliancesensuring raw material security by developing new mines diversifying in
allied areas etc.Some of the strategic initiatives include MoUs for setting up of Pellet
Plantsmanufacturing of capital goods in the
Country setting up of hydro power plant closure ofin-operative and nonperforming Joint Ventures
and Subsidiary Companies.

Looking at the future IMF has projected the world growth outlook inApril’19 for the year 2019
and 2020 at 3.3 percent and 3.6 percent respectively. Althougha 3.3 percent global expansion is
still reasonable the outlook for many countries is verychallenging due to considerable uncertainties
in the short term especially for theadvanced economies. While 2019 started out on a weak footing
66
a pickup is expected in thesecond half of the year. This pickup is supported by significant policy
accommodation bymajor economies. With improvements expected in the second half of 2019
global economicgrowth in 2020 is projected to return to 3.6 percent. Beyond 2020 growth will
stabilize ataround 3 percent bolstered mainly by growth in China and India and their
increasingweights in world income.

Thus the Indian Economy is expected to continue to do reasonably wellin the long run which
augurs well for the Steel Industry as the two enjoy a strongcorrelation. Similar sentiments have
been echoed in the Short Range Outlook published byWorld Steel Association (WSA) in April’19.
It has been forecast that Global steel demandwill reach 1735 Million Tonnes (MT) in 2019 an
increase of 1.3% over 2018. It is furtherforecast that Global steel demand will grow by another 1%
to reach 1752 MT in 2020. WSAhas further added that the Indian economy is expected to achieve
faster growth starting in the second half of 2019 after the election. While the fiscal deficit might
weigh on publicinvestment to an extent the wide range of continuing infrastructure projects is
likely tosupport growth in steel demand above 7% in both 2019 and 2020.

India having already overtaken Japan as World’s second largest steelproducing Nation in FY 18 is
all likely to overtake US as the second largest steelconsuming Nation in the world in 2019. The
300 MTPA steel production capacity for India by2030 as envisioned in “National Steel Policy
2017” is commensurate with thisgrowth projection. SAIL has also started its plans for increasing
its capacitycommensurate with the National growth.

At the end I take this opportunity to thank all our stakeholders whohave contributed internally and
externally in the improved performance of the Company. Imust specifically thank our valued
customers trusted suppliers the Central and StateGovernments and our talented employees who
have always stood by the Company andcontributed in the progress of SAIL. I must especially
thank our shareholders includingthe Central Government for the faith they have reposed in the
Company when it has beenunable to pay the dividend owning to the continued losses. As the
Company has started itsascent to the top it is time we keep our investors in good spirits.
Accordingly theBoard of Directors has proposed a dividend of 5% for the year 2018-19. I hope
this willfurther strengthen the faith of the stakeholders in us and I look forward to the
continuedsupport and unflinching trust.

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PLACE: NEW DELHI (ANIL KUMAR CHAUDHARY)

DATED: 31ST JULY 2019 CHAIRMAN

LEGAL DEPARTMENT

• Research & Development Centre for Iron & Steel

• Raw Materials Division

• Corporate Office

• Central Marketing Organisation

• Bhilai Steel Plant

• Durgapur Steel Plant

• Rourkela Steel Plant

• Bokaro Steel Plant

• IISCO Steel Plant

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• Alloys Steel Plant

• Visvesvaraya Iron & Steel Plant

• Salem Steel Plant

• Chandrapur Ferro Alloy Plant

• Marketing Network

• Centre for Engineering & Technology

• Environment Management Division

• Growth Division

• Central Coal Supply Organisation

• SAIL Safety Organisation

• Management Training Institute

• SAIL Refractory Unit

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 CHAPTER-3

FINANCE AND ACCOUNTS

DEPARTMENT

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Introduction :

An accounting department provides accounting services and financial support to the organization
it belongs to. The department records accounts payable and receivable, inventory, payroll, fixed
assets and all other financial elements. The department’s accountants review the records of each
department to determine the company’s financial position and any changes required to run the
organization cost-effectively.An accounting department provides accounting services and
financial support to the organization it belongs to. The department records accounts payable and
receivable, inventory, payroll, fixed assets and all other financial elements. The department’s
accountants review the records of each department to determine the company’s financial position
and any changes required to run the organization cost-effectively.

Purpose of an Accounting Department :

An accounting department is a dedicated team of specialists who manage the finances of an

organization. While not every member of the team will be a certified public accountant, team
members will generally have training in bookkeeping processes and procedures. By developing an
accounting department, a company can help ensure full transparency in its financial transactions,
while also providing specialized, centralized support to other teams and managers. Quality
financial management can help ensure the ongoing health of a business.

Accounts Payable and Receivable :

The accounts payable section of an accounting department records goods and services that it
receives and the payments it owes, such as inventory from a supplier or other expenses. The
department records each accounts payable as a liability and accounts receivable as assets. Assets
such as revenue and customers’ obligations pay for goods and services.

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The payroll function of an accounting department ensures that the organization pays its employees
accurately, including bonuses, commissions and benefits. The department monitors employees’
time off, vacation and sick days. It pays the government taxes as well as union dues and other
withholding from an employee’s paycheck. The department reimburses employees for expenses
and makes payments to vendors.

Inventory Cost Management :

A company’s inventory is the goods owned for the purpose of sale. Inventory is usually sold within
a year. An accounting department watches the cost of inventory over a specific period against its
revenues to ensure that the cost of raw materials, labor and overhead do not negatively impact cash
flow. The accounting department tries to find a balance between high inventory levels that satisfy
customers but are costly to the company and low inventory levels that satisfy the company’s
expenses but may dissatisfy customers.

Recording Fixed Assets :

In order to function effectively, a company may need machinery, equipment, vehicles and other
fixed assets it uses over several years. The accounting department is responsible for recording
fixed assets on a balance sheet with depreciation. Fixed assets could be intangible – such as
goodwill or a trademark – or tangible – such as machinery. As the company needs an upgrade to
remain competitive, its financial statements will determine what the business can afford.

Functions of Accounting Department :

Accounts Payable (money out) – In order to maintain great relationships with vendors making sure
that everyone gets paid on time is a vital role. The role of the accounting department includes
keeping an eye on opportunities to save money, for example, determining if there are discounts or
incentives available for paying certain vendors more quickly. At the very least, AP should be

72
scheduled to assure that the least amount of money has to go out per payment, i.e., no late payment
charges!

Accounts Receivable and Revenue Tracking (money in) – Another critical duty of the accounting
department is to account for and track receivables, including outstanding invoices and any required
collection actions. Accounts receivable is responsible for creating and tracking invoices. The
responsibility here includes assuring that customers pay those invoices on time, so a system of
friendly reminders is crucial.

Payroll – Payroll is a critical function of the accounting department and includes making sure all
employees are paid accurately and timely. In addition, proper tax is assessed and tax payments are
on time with state and federal government agencies.

Reporting and Financial Statements – The primary reason you collect data properly in your
accounting software is to prepare financial reports that can be used for budgeting, forecasting and
other decision making processes. In addition, these and other reports are needed for
communication to investors, banks and other professionals that play a role in the growth of your
business.

Financial Controls – Financial controls include reconciliations, dividing the responsibilities and
following the GAAP standards of accounting principles, all of which are implemented with view
toward compliance, fraud and theft prevention. The role of the Controller is to ensure procedures
are set up properly to manage that process without errors.

Now that you know the roles of the accounting department, who are the key players.
These are the key positions that you’ll find across most business accounting units.

Chief Financial Officer (or CFO)– CFOs are typically the head financial executive of large
businesses. They oversee the financial strategy, health of the business, and manage the rest of the
financial department. CFO’s are very forward thinking and will help businesses navigate through

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growth stages and downturns. With their knowledge of company finances, they help senior
management understand the financial impact of real-time decisions to ensure the fiscal success of
the business.

Their duties include financial planning, reporting and controls, short and long term business
strategy, investments, hedging, mergers and acquisitions, cash management, internal risk
management, corporate finance, auditing and accounting.

Financial Controller – Financial Controllers are key players within accounting departments and
work alongside CFO’s, COO’s, and Financial Directors. Their function and responsibilities
include financial accounting, preparation, reporting, analysis, budgeting, project management and
more. Their key role tends to focus on immediate financial issues and management.

Treasury Manager – The treasury manager’s role in the accounting department revolves around
the formulation and development of treasure policies. This includes identifying the best investment
opportunities, developing great banking relations, optimizing credit facilities, and minimizing
finance costs.

Accounting Manager – An accounting manager is responsible for a company’s accounting

activities that include maintaining and reporting on both the cost and financial sets of accounts but
does not handle or negotiate. The accounting manager establishes and enforces the accounting
principles based on statutory requirements and auditing policy.

Chief Accounting – The chief accountant holds the same responsibilities as the accounting
manager, but the role simply differs in terms of the job title.

Accounting Supervisor – Shares the same responsibilities as an accounting manager and provides
support as a member of his/her team.

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Accountant – Accountants play a key role in finance departments such as the measurement and
interpretation of financial information. The results of their work ensure compliance, and provide
the groundwork for greater financial strategies.

Bookkeepers – Bookkeepers provide the day-to-day efforts needed to record and assess basic
accounting data. They typically do not take a strategic role.

These are just some of the main roles and functions of the accounting department in businesses,
there are many more responsibilities the accounting department is responsible for and a number of
subcategories. Those will depend upon the specific nature of your business. For instance, inventory
control and tracking, government

forms and tax filings and fund raising might be other essential areas of focus that your accounting
department would be responsible for.

Defining those responsibilities is essential for your business. While the specific roles may vary
from business to business, one thing is certain: if your accounting department does not perform
these key functions effectively and efficiently, you could be headed for some serious (and not so
pleasant) surprises.

The great news is that if these functions are covered well, you’ll find that your accounting
department creates a solid base and the most important measurement tool for your company’s
entire operation. If you think you need some help getting your accounting department in order, or
would like to outsource it (many companies prefer to do this!), then check out our Accounting
Services to learn more.

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FEATURES OF A FIXED DEPOSIT :

Following are the primary features of a Fixed Deposit –

The amount can be deposited only once. Any additional deposits have to be made in separate
accounts.

The rate of interest is higher than the savings account.

The duration ranges anywhere between 7 days and 10 years.

Fixed deposits can be renewed without any hassle.

Withdrawals can’t be made before the maturity period. In case of an emergency withdrawal, a
penalty has to be paid by the customer.

BENEFITS OF A FIXED DEPOSIT :

There are plenty of advantages of opening a fixed deposit account. Some of them are listed below

Guaranteed Returns:

One of the main perks of investing in a fixed deposit account is that it assures returns.
This means zero risks as compared to other forms of investments like mutual funds.
On maturity, a fixed rate of interest will be paid on the investment amount.

Easy to open a fixed deposit account:

You can open an FD account in a matter of a few minutes. You can either apply for it online or
walk into your nearest bank and open it.

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Higher rate of interest:

Fixed deposits enable customers to earn a higher rate of interest as compared to their savings
account or any other form of term deposits.

Flexible Tenure:

You can choose to open a fixed deposit account for a period of 7 days to 10 years.

Multiple FD accounts:

You can hold more than one FD account at a given point of time. When you want to make an
additional investment, you can always open a new FD account.

Tax Benefit:

You can claim for a tax exemption under Section 80C of the Income Tax Act of India for a sum of
up to INR 1,50,000.

INTERNAL AUDIT:

An internal audit offers risk management and evaluates the effectiveness of a company’s internal
controls, corporate governance, and accounting processes.. Internal audits provide management
and board of directors with a value-added service where flaws in a process may be caught and
corrected prior to external audits.

An internal audit offers risk management and evaluates the effectiveness of a company’s internal
controls, corporate governance, and accounting processes.. Internal audits provide management
and board of directors with a value-added service where flaws in a process may be caught and
corrected prior to external audits.

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Types of Internal Audits :

While a significant portion of internal audit covers internal controls over financial reporting within
the organization as they pertain to generally accepted accounting procedures (GAAP) impacting
their financial statements. Many organizations also recognize the need for other types of
assessments or audits outside of accounting or finance. Some of these key areas include
compliance (i.e., regulatory), environmental, information technology, operational and
performance audits.

Compliance Audits evaluate compliance with applicable laws, regulations, policies and
procedures. Some of these regulations may have a significant impact on the company’s financial
well-being. Failure to comply with some laws, such as the Foreign Corrupt Practices Act (FCPA)
or General Data Protection Regulation (GDPR), may result in millions of dollars in fines or
preclude a company from doing business in certain jurisdictions. Here is a link to a beginners guide
to GDPR.

Environmental Audits assess the impact of a company’s operations on the environment. They may
also assess the company’s compliance with environmental laws and regulations.

Information Technology Audits may evaluate information systems and the underlying
infrastructure to ensure the accuracy of their processing, the security and confidential customer
information or intellectual property. They will typically include the assessment of general IT
controls related logical access, change management, system operations, and backup and recovery.

Operational Audits assess the organization’s control mechanisms for their overall efficiency and
reliability.

Performance Audits evaluate whether the organization is meeting the metrics set by management
in order to achieve the goals and objectives set forth by the Board of Directors.

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Internal audit process

An internal audit should have four general phases of activities—Planning, Fieldwork, Reporting,
and Follow-up. The following provides a brief synopsis of each phase.

Planning – During the planning process, the internal audit team will define the scope and
objectives, review guidance relevant to audit (e.g., laws, regulations, industry standards, company
policies and procedures, etc.), review the results from previous audits, set a timeline and budget
for the audit, create an audit plan to be executed, identify the process owners to involve, and
schedule a kick-off meeting to commence the audit.

Fieldwork – Fieldwork is the actual act of auditing. Throughout this phase, the audit team will
execute the audit plan. This usually includes interviewing key personnel to confirm an
understanding of the process and controls, reviewing relevant documents and artifacts for an
example execution of the controls, testing the controls for a sample over a period of time,
documenting the work performed, and identifying exceptions and recommendations.

Reporting – As you might guess, internal audit will draft the audit report during the reporting
phase. The report should be written clearly and succinctly to avoid misinterpretation and to
encourage the intended audience to actually read and understand the report. Findings should be
accompanied by recommendations that are actionable and lead directly to process improvements.
The process of issuing an internal audit report should include drafting the report, review the draft
with management to ensure the accuracy of findings, and issuance and distribution of the final
report.

Follow-up – The final stage is an important one that is often overlooked and neglected. Following
up is critical to ensure that the recommendations have been implemented to address the findings
identified. This process should include appropriate follow-up with process owners needing to
implement the recommendations as well as Board oversight of the company’s overall status in

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 addressing findings identified by internal audit. If an organization fails to follow-up on the
implementation of recommendations, it is unlikely that the changes will be made.

It is a process via which we determine the costs of goods and services. It involves the recording,
classification, allocation of various expenditures, and creating financial statements. This data is
generally used in financial accounting.

This helps us calculate the costs of the various goods. It also involves a suitable presentation of
this data for the purposes of cost control and guidance to the management.

It deals with the cost of every unit, job, process, order, service, etc, whichever is applicable and
includes the cost of production, cost of selling and cost of distribution.

Features of Cost Accounting

It is a sub-field in accounting. It is the process of accounting for costs.

Provides data to management for decision making and budgeting for the future.

It helps to establish certain standard costs and budgets.

Provides costing data that helps in fixing prices of goods and services

Is also a great tool to figure out the efficiency of a unit or a process. It can disclose wastage of time
and resources. Types and Classification of Cost Accounting

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Standard Costing

Standard costing is a technique where the firm compares the costs that were incurred for the
production of the goods and the costs that should have been incurred for the same.

Marginal Costing

This type of costing is based on the principle of dividing all costs into fixed cost and variable cost.

Fixed costs are unrelated to the levels of production. As the name suggests these costs remain the
same irrespective of the production quantities.

Variable costs change in relation to production levels. They are directly proportionate.
The variable cost per unit, however, remains the same

Accounting Policies

Accounting policies are rules and guidelines that are selected by a company for use in preparing
and presenting its financial statements. Accounting policies are important, as they set a framework,
which all companies follow, and provide comparable and consistent standard financial statements
across years and relative to other companies.

IFRS vs. GAAP

The International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting
Principles (GAAP) are accounting principles that provide guidelines on how companies should
prepare financial statements. IFRS is more principles-based and, therefore, can better capture the
economics of a certain transaction.

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GAAP, on the other hand, is a more rules-based approach. The differences between the two
methods are evident in the different standards related to accounting policies (for example, some
accounting policies that are allowed under GAAP may not be allowed under IFRS).

Conservative vs. Aggressive Policies

Conservative accounting policies understate a company’s current financial performance and show
better financial performance in subsequent years. It is a more sustainable approach and it allows
companies to show improvement over the years, which is a positive signal for investors.

Aggressive policies tend to employ accounting policies in a way such that they overstate the
performance in earlier years, and it leads to a decline in a company’s performance in later years
(even though the company may be doing).

Aggressive accounting policies can also raise a red flag from auditors or investors if they feel
management is misrepresenting earnings or allocating costs.

Prominent Accounting Policies

Accounting policies can vary widely but all are included in the standards dictated by either the
IFRS or GAAP. The list below mentions some key policies used by companies (please note that
our list is not exhaustive, and policy use can differ depending on the industry the company operates
in).

Importance of Accounting Policies

There are several reasons as to why accounting policies are extremely important to a company
preparing the financial statements, but also to the investor and the government.

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1.Government retaining a hold on financial statements

All companies should follow either the GAAP or IFRS when preparing financial statements. It is
a way the government can keep a check on financial statements and simultaneously protect the
interests of investors.

2..Proper framework

As mentioned earlier, accounting policies essentially provide companies with a framework to

report their financial statements, so they follow a standardized format throughout.

3.Providing advantage to investors

By mentioning to investors that they’ve followed particular accounting policies, investors will gain
added confidence in the company and the numbers, and the statements can easily be compared to
other companies’ financial statements (as they follow a standardized format).

4..Disclosure

A company must disclose the accounting policies they follow. The policies comprise separate rules
on how to disclose information to investors and companies should comply with adequate
disclosure requirements.

The diagram below shows the order of significance of accounting policies. Out of the four reasons
mentioned above, disclosure is extremely crucial, as it sets the basis for the policies used in
preparing the financial statements and allows the investor to analyze and interpret financial
statements with confidence.

TAXATION :
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Corporate Taxes:

Indian taxes are divided into two types: One is Direct Taxes and other is Indirect Taxes. Talking
about direct taxes, it is levied on the income that different types of business entities earn in a
financial year. There are different types of taxpayers registered with the Income tax department
and they pay taxes at different rates. For eg, An individual and a company being a taxpayer are not
taxed at the same rate. Therefore, Direct Taxes are again subdivided as: Personal Income Tax: The
income-tax paid by the individual taxpayers is the personal income tax. Individuals get taxed on
the basis of tax slabs at different rates. Corporate Tax: The income-tax paid by domestic
companies, and foreign companies on their income in India is corporate income-tax (CIT). The
CIT is at a specific rate as prescribed by the income tax act subject to the changes in the rates in
the union budget every year.

Corporate Tax in India

A corporate is an entity that has a separate and independent legal entity from its shareholders.
Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act.
While a domestic company is taxed on its universal income, a foreign company is only taxed on
the income earned within India i.e. is being accrued or received in India. For the purpose of
calculation of taxes under Income tax act, the types of companies can be defined as under :
Domestic Company: Domestic company is one which is registered under the Companies Act of
India and also includes the company registered in the foreign countries having control and
management wholly situated in India. A domestic company includes private as well as public
companies. Foreign Company: Foreign company is one which is not registered under the
companies act of India and has control & management located outside India.

Before understanding the rate of taxes and how the tax will be calculated on income of the
companies, we should learn about the types of income which a company earns.
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Here it is :

Profits earned from the business

Capital Gains

Income from renting property

Income from other sources like dividend, interest etc.

Health & education Cess : Further 4% of income tax calculated and applicable surcharge will be
added to the amount of total tax liability before this cess. Minimum Alternate Tax (MAT)
Alternatively, all the companies (including foreign companies) are required to pay minimum
alternate tax at the rate of 15% on book profits if the tax calculated as per above rates are less than
15% of book profits. This will be applicable if the company does not opt for Section 115BAA or
Section 115BAB.

Everything about filing income tax return

Due date for filing Income tax return Companies including foreign companies have to file their
income tax return on or before 30 October every year. Even if the company came into existence
during the same financial year, then too, it has to file the income tax return for that period on or
before 31 October. For FY 2019-2020 (AY 2020-21), the due date has been extended to 30
November 2020, due to the pandemic. Tax return forms to be filed by the company ITR 6 : All the
companies except companies claiming deduction under section 11 need to file their return using
Form ITR 6. ITR 7 : All the companies registered under section 8 of companies act, 2013 are
required to file their return using Form ITR 7. Tax Audit Income tax act requires a class of
companies to get their accounts audited and submit a audit report to the IT department along with
the Income tax return. This audit is known as Tax Audit. This tax audit report is also required to
be mandatorily submitted by eligible companies by 30 September. However, for FY 2019-20 (AY
2020-21), the due date for submitting the tax audit report is 31 October 2020. Corporate Tax is an
ocean full of provisions which all the companies need to comply with. Keep reading to know what
are those provisions, rules that the companies need to follow.
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Penalty Under Income Tax Act

An assessee who commits an offence under the provisions of The Income Tax Act, 1961 shall be
subject to penalty.

Section 115BAB – Corporate tax rate for new manufacturing companies

The Taxation Laws (Amendment) Ordinance, 2019 has inserted Section 115BAB offering a tax
rate of 15% to new manufacturing companies. Read more here.

Section 115BAA – New tax rate for domestic companies

Taxation of Liquor and related products

The states and the union territories in India adopt different approaches while taxing and regulating

liquor. Read here to know more about Taxation of Liquor Income Tax Exemption for Angel

Investors in Startups

The Indian government announced that angel investors would receive an exemption on their
investments in the startups. Read more about this exemption here

BEPS – Base Erosion and Profit Shifting

BEPS indicate tax avoidance strategies, MNCs’ employ for reducing their tax bases. This
led to the launch of the BEPS project. Read more about this here.

Unabsorbed Depreciation

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Unabsorbed Depreciation is that amount of unutilized depreciation which assessee will not be able
to claim as an expense due to lack of sufficient profit

Permissible cash expenses as deductible expenses

Income Tax law provides that any payment is made in cash sum exceeding INR 20,000 in a single
day won’t be

Permitted as a deductible expense.

Depreciation under Income Tax Act

Depreciation under Income Tax Act is the decline in the real value of a tangible asset because of
consumption, wear and tear or obsolescence. Additional Depreciation Under Income Tax Act

Additional depreciation under Income

Tax Act, 20% of actual cost shall be allowed for any new machinery or plant acquired and installed,
used for < 180 days

Amortization of preliminary expenses

Expenses incurred prior to the commencement of business or during extending an existing business
or setting up a new unit etc. are eligible to be amortised under section 35D of the Income Tax Act,
1961.

Section 43B in Income Tax Act, 1961

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Few expenses are deductible only on actual payment being made. These expenses come under
Section 43B of the Income Tax act. Find more details of deductions under section 43B in brief
here.

Deductions u/s 36 – An Overview

Section 36 of the Income Tax Act illustrates various expenses that are allowed as a deduction from
the income earned from business and profession. Find here the Summary of deductions u/s 36 and
a detailed explanation of all deductions u/s 36.

Expenses disallowed under PGBP

Any payments made on which an amount is required to be deducted and deposited to the
government and the same is not deducted or remains unpaid, such payments attract disallowance.
To know more about Expenses disallowed under PGBP read here.

Deferred Tax Asset and Deferred Tax Liability

Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA) item forms an important part of your
Financial Statements. We got you to write all about DTL/DTA, How it’s calculated and certain
specific Implications…

Depreciation:

In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a
systematic manner until the value of the asset becomes zero or negligible.

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An example of fixed assets are buildings, furniture, office equipment, machinery etc.. A land is
the only exception which cannot be depreciated as the value of land appreciates with time.

Depreciation allows a portion of the cost of a fixed asset to the revenue generated by the fixed
asset. This is mandatory under the matching principle as revenues are recorded with their
associated expenses in the accounting period when the asset is in use. This helps in getting a
complete picture of the revenue generation transaction.

An example of Depreciation – If a delivery truck is purchased a company with a cost of Rs. 100,000
and the expected usage of the truck are 5 years, the business might depreciate the asset under
depreciation expense as Rs. 20,000 every year for a period of 5 years.

There three methods commonly used to calculate depreciation. They are:

Straight line method

Unit of production method

Double-declining balance method

Three main inputs are required to calculate depreciation:

Useful life – this is the time period over which the organisation considers the fixed asset to be
productive. Beyond its useful life, the fixed asset is no longer cost-effective to continue the
operation of the asset.

Salvage value – Post the useful life of the fixed asset, the company may consider selling it at a
reduced amount. This is known as the salvage value of the asset.

The cost of the asset – this includes taxes, shipping, and preparation/setup expenses.
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Unit of production method needs the number of units used during production. Let’stake a look at
each type of Depreciation method in detail.

Types of depreciation

1)Straight-line depreciation method

This is the simplest method of all. It involves simple allocation of an even rate of depreciation
every year over the useful life of the asset. The formula for straight line depreciation is:

Annual Depreciation expense = (Asset cost – Residual Value) / Useful life of the asset

2)Unit of Production method

This is a two-step process, unlike straight line method. Here, equal expense rates are assigned to
each unit produced. This assignment makes the method very useful in assembly for production
lines. Hence, the calculation is based on output capability of the asset rather than the number of
years.

The steps are:

Step 1: Calculate per unit depreciation:

Per unit Depreciation = (Asset cost – Residual value) / Useful life in units of production Step 2:

Calculate the total depreciation of actual units produced:

Total Depreciation Expense = Per Unit Depreciation * Units Produced.

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1)Double declining method

This is one of the two common methods a company uses to account for the expenses of a fixed
asset. This is an accelerated depreciation method. As the name suggests, it counts expense twice
as much as the book value of the asset every year.

The formula is:

Depreciation = 2 * Straight line depreciation percent * book value at the beginning of the
accounting period

Book value = Cost of the asset – accumulated depreciation

Accumulated depreciation is the total depreciation of the fixed asset accumulated up to a specified
time.

So now we know the meaning of depreciation, the methods used to calculate them, inputs required
to calculate them and also we saw examples of how to calculate them.
Let’s find out as to why the small businesses should care to record depreciation.

As we already know the purpose of depreciation is to match the cost of the fixed asset over its
productive life to the revenues the business earns from the asset. It is very difficult to directly link
the cost of the asset to revenues, hence, the cost is usually assigned to the number of years the asset
is productive.

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Over the useful life of the fixed asset, the cost is moved from balance sheet to income statement.
Alternatively, it is just an allocation process as per matching principle instead of a technique which
determines the fair market value of the fixed asset.

Accounting entry – DEBIT depreciation expense account and CREDIT accumulated depreciation
account.

If we do not use depreciation in accounting, then we have to charge all assets to expense once they
are bought. This will result in huge losses in the following transaction period and in high
profitability in periods when the corresponding revenue is considered without an offset expense.
Hence, companies which do not use the depreciation expense in their accounts will incur
frontloaded expenses and highly variable financial results.

Ratio Analysis:

Ratio analysis refers to the analysis of various pieces of financial information in the financial
statements of a business. They are mainly used by external analysts to determine various aspects
of a business, such as its profitability, liquidity, and solvency, Uses of Ratio Analysis

1.Comparisons

One of the uses of ratio analysis is to compare a company’s financial performance to similar firms
in the industry to understand the company’s position in the market. Obtaining financial ratios, such
as Price/Earnings, from known competitors and comparing it to the company’s ratios can help
management identify market gaps and examine its competitive advantages, strengths, and
weaknesses. The management can then use the information to formulate decisions that aim to
improve the company’s position in the market.

2.Trend line
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Companies can also use ratios to see if there is a trend in financial performance. Established
companies collect data from the financial statements over a large number of reporting periods. The
trend obtained can be used to predict the direction of future financial performance, and also identify
any expected financial turbulence that would not be possible to predict using ratios for a single
reporting period.

3.Operational efficiency

The management of a company can also use financial ratio analysis to determine the degree of
efficiency in the management of assets and liabilities. Inefficient use of assets such as motor
vehicles, land, and building results in unnecessary expenses that ought to be eliminated. Financial
ratios can also help to determine if the financial resources are over- or under-utilized.

Ratio Analysis – Categories of Financial Ratios

There are numerous financial ratios that are used for ratio analysis, and they are grouped into the

following categories: 1.Liquidity ratios

Liquidity ratios measure a company’s ability to meet its debt obligations using its current assets.
When a company is experiencing financial difficulties and is unable to pay its debts, it can convert
its assets into cash and use the money to settle any pending debts with more ease.

Some common liquidity ratios include the quick ratio, the cash ratio, and the current ratio.
Liquidity ratios are used by banks, creditors, and suppliers to determine if a client has the ability
to honor their financial obligations as they come due.

2.Solvency ratios

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Solvency ratios measure a company’s long-term financial viability. These ratios compare the debt
levels of a company to its assets, equity, or annual earnings.

Important solvency ratios include the debt to capital ratio, debt ratio, interest coverage ratio, and
equity multiplier. Solvency ratios are mainly used by governments, banks, employees, and
institutional investors.

3.Profitability Ratios

Profitability ratios measure a business’ ability to earn profits, relative to their associated expenses.
Recording a higher profitability ratio than in the previous financial reporting period shows that the
business is improving financially. A profitability ratio can also be compared to a similar firm’s
ratio to determine how profitable the business is relative to its competitors.

Some examples of important profitability ratios include the return on equity ratio, return on assets,
profit margin, gross margin, and return on capital employed.

1.Efficiency ratios

Efficiency ratios measure how well the business is using its assets and liabilities to generate sales
and earn profits. They calculate the use of inventory, machinery utilization, turnover of liabilities,
as well as the usage of equity. These ratios are important because, when there is an improvement
in the efficiency ratios, the business stands to generate more revenues and profits.

Some of the important efficiency ratios include the asset turnover ratio, inventory turnover,
payables turnover, working capital turnover, fixed asset turnover, and receivables turnover ratio.

2.Coverage ratios

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Coverage ratios measure a business’ ability to service its debts and other obligations. Analysts can
use the coverage ratios across several reporting periods to draw a trend that predicts the company’s
financial position in the future. A higher coverage ratio means that a business can service its debts
and associated obligations with greater ease.

Key coverage ratios include the debt coverage ratio, interest coverage, fixed charge coverage, and
EBIDTA coverage.

1.Market prospect ratios

Market prospect ratios help investors to predict how much they will earn from specific
investments. The earnings can be in the form of higher stock value or future dividends. Investors
can use current earnings and dividends to help determine the probable future stock price and the
dividends they may expect to earn.

Key market prospect ratios include dividend yield, earnings per share, the price-toearnings ratio,
and the dividend payout ratio.

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97
 GROSS PROFIT RATIO

Gross profit ratio is also known as Gross margin or Trading expenses margin ratio. Gross profit ratio
indicates the difference between sales and direct cost gross profit. It explains the relationship between
Gross profit and Net sales.

FORMULA:

NET PROFIT RATIO = NET PROFIT AFTER TAX X100

NET SALES

(Rs, In crores)
YEAR NET PROFIT NET SALES NET PROFIT

RATO

2016 1229.85 6188.03 19.87

2017 1560.02 7944.06 19.637

2018 1712.91 9211.81 18.59

2019 2054.44 9794.48 20.975

2020 1903.82 9077.47 20.973

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 GROSS PROFIT RATIO
3

0
201 201 201 201 202

GROSS PROFIT RATIO

INTERPRETATION:

Gross profit ratio shows the operational performance in a company gross profit margin
indicates that a company can make a reasonable profit on sales, as long as it keeps overhead
costs in control. The gross profit ratio from the above chart shows that the ratio is highest in
the year 2019 that is 32.166 percent which indicates the efficient management of affairs of
business. Whereas, Net profit ratio is lowest in the year 2020 of 26.77 percent which shows
the minimum profit in that particular year.

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NET PROFIT RATIO:

The Net profit ratio is called the net profit to sales ratio. It is a measure of management
efficiency in operating the business successfully from the owner point of view. It also
indicates the return on shareholder investments.

21.
2 NET PROFIT RATIO
20.
2
19.
1

18.
1
17.
1
201 201 201 201 202

NET PROFIT RATIO

INTERPRETATION:

Net profit ratio is a useful tool to measure the overall profitability of the business and it
reveals the remaining profit after all costs of production, administration, and financing have

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been deducted from sales, and income taxes recognized. In the year 2016 the net profit ratio
is 19.87 Per cent whereas in the year 2020 the business operation gradually increased to
20.973.

CURRENT RATIO :

The current ratio is a liquidity ratio that measures whether a firm has enough resources to
meet its short term obligations. it Compares a firms current asset to current liabilities and
it expressed as follows that current ratio is an indication of an firm liquidity. The current
ratio is called “current” because, unlike some other liquidity ratios, it incorporates all

FORMULA:

CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES

(Rs. In Crores )
CURRENT CURRENT CURRENT
YEAR ASSETS LIABILITIES RATIO

2016 1174.81 1196.37 0.98

2017 1360.36 1453.66 0.936

2018 2524.42 2194.63 1.15

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 2019 4379.39 1978.38 2.21

CURRENT RATIO

202

201

201

201

201

0 0 1 1 2 2 3 3 4

CURRENT

INTERPRETATION:

The current ratio is the classic measure of liquidity. It indicates whether the business can
pay debts due within one year out of the current assets. The data mentioned in the above
chart extracts a fluctuating trend. The current ratio is lowest in the year 2017 that is 0.936
which shows the company‟s difficulty to pay its current liabilities. Whereas the highest
current ratio is in the year 2020 of 3.40 ratio which shows the firm‟s efficiency in paying
off its current liabilities in time.

LIQUID RATIO:

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 Liquid ratio or quick ratio refers to assets which are quickly convertible in to cash.
Current asset other than stock and prepaid expenses are considered as quick assets. This
ratio is also called Acid test ratio. An acid-test ratio is one measure of a company‟s financial
health at one moment in time.

FORMULA:

LIQUID RATIO = LIQUID ASSET

CURRENT LIABILITIES

(Rs. In crores)
YEAR LIQUID ASSET CURRENT LIQUID RATIO

LIABILITIES

2016 874.45 1196.37 0.73

2017 1037.91 1453.66 0.714

2018 2145.19 2194.63 0.977

2019 3774.05 1978.38 1.91

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 2020 5818.55 1861.12 0.12

LIQUID
3

0
201 201 201 201 202

LIQUID

INTERPRETATION:

Liquid ratio shows the company‟s liquidity position. The above chart shows the
fluctuating and not stable liquid ratio over the years. The lowest liquid ratio is in the year
2017 that is 0.714, which shows that the firm‟s liquidity position is not good. However in
2020, the liquid ratio is highest of 3.126 that actively demonstrates that the company has
relatively better position to meet its current obligation in time.

DEBTOR TURNOVER RATIO:

It is an accounting measure that shows how effective a company is in extending credit as

well as collecting debts. It shows how quickly credit sales are converted in to cash. The
receivables turnover ratio is an accounting measure used to quantify a company's
effectiveness in collecting its accounts receivable, or the money owed to it by its customers
or clients.

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FORMULA:

DEBTOR TURNOVER RATIO = SALES

AVERAGE ACCOUNT RECEIVABLES

(Rs. In crores)
YEAR SALES AVERAGE DEBTOR

ACCOUNT TURNOVER

RECEIVABLES RATIO

2016 6188.03 46.13 134.14

2017 7944.06 48.94 164.13

2018 9211.81 78.02 118.07

2019 9794.48 112.65 86.95

2020 9077.47 133.97 67.76

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 DEBTOR TURNOVER RATIO
1
1
1
1
1
8
6
4
2
0
201 201 201 201 202

DEBTOR TURNOVER RATIO

INTERPRETATION:

Debtors velocity indicates the number of times the debtors are turned over during a
year. The above chart shows the debtors turnover ratio in which the highest rate is in the
year 2017 which shows that payment was prompt on the parts of debtors and signifies
speedy and effective collection. In the year 2020, the ratio was low which shows the
absence of strict credit policy and lower turnover indicates sluggish and inefficient
collection leading to the doubts that receivables might contain significant doubtful debt.

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WORKING CAPITAL

Working capital, also known as net working capital (NWC), is the difference between a
company’s current assets, such as cash, accounts receivable (customers’ unpaid bills) and
inventories of raw materials and finished goods, and its current liabilities, such as accounts
payable.

Working capital = Current Assets – Current Liabilities

The working capital formula tells us the short-term liquid assets remaining after shortterm
liabilities have been paid off. It is a measure of a company’s short-term liquidity and is important
for performing financial analysis, financial mod

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112
FOREIGN CURRENCY CONVERSION

The foreign exchange market (also known as forex, FX, or the currencies market) is an over-
thecounter (OTC) global marketplace that determines the exchange rate for currencies around the
world. Participants in these markets can buy, sell, exchange, and speculate on the relative exchange
rates of various currency pairs.

Foreign exchange markets are made up of banks, forex dealers, commercial companies,
central banks, investment management firms, hedge funds, retail forex dealers, and
investors. Understanding the Foreign Exchange Market

The foreign exchange market—also called forex, FX, or currency market—was one of the original
financial markets formed to bring structure to the burgeoning global economy. In terms of trading
volume, it is, by far, the largest financial market in the world. Aside from providing a
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venue for the buying, selling, exchanging, and speculation of currencies, the forex market also
enables currency conversion for international trade settlements and investments.

According to the Bank for International Settlements (BIS), which is owned by central banks,
trading in foreign exchange markets averaged $6.6 trillion per day in April 2019.1

Currencies are always traded in pairs, so the “value” of one of the currencies in that pair is relative
to the value of the other. This determines how much of country A’s currency country B can buy,
and vice versa. Establishing this relationship (price) for the global markets is the main function of
the foreign exchange market. This also greatly enhances liquidity in all other financial markets,
which is key to overall stability.

The value of a country’s currency depends on whether it is a “free float” or “fixed float”.
Freefloating currencies are those whose relative value is determined by free market forces, such
as supply-demand relationships. A fixed float is where a country’s governing body sets its
currency’s relative value to other currencies, often by pegging it to some standard. Freefloating
currencies include the U.S. dollar, Japanese yen, and British pound, while examples of fixed
floating currencies include the Chinese Yuan and the Indian Rupee.

One of the most unique features of the forex market is that it comprises a global network of
financial centers that transact 24 hours a day, closing only on the weekends. As one major forex
hub closes, another hub in a different part of the world remains open for business. This increases
the liquidity available in currency markets, which adds to its appeal as the largest asset class
available to investors.

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Benefits of Using the Forex Market

There are some key factors that differentiate the forex market from others, like the stock market.

There are fewer rules, which means investors aren’t held to the strict standards or regulations found
in other markets.

There are no clearing houses and no central bodies that oversee the forex market.

Most investors won’t have to pay the traditional fees or commissions that you would on another
market.

Because the market is open 24 hours a day, you can trade at any time of day, which means there’s
no cut-off time to be able to participate in the market.

Finally, if you’re worried about risk and reward, you can get in and out whenever you want, and
you can buy as much currency as you can afford based on your account balance and your broker’s
rules for leverage.

FINANCIAL AUDIT

Definition of Financial Audit

A financial audit is an independent, objective evaluation of an organization’s financial reports and

financial reporting processes. The primary purpose for financial audits is to give regulators,
investors, directors, and managers reasonable assurance that financial statements are accurate and
complete.

Financial Statement Audit

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A financial statement audit is the examination of an entity’s financial statements and
accompanying disclosures by an independent auditor. The result of this examination is a report by
the auditor, attesting to the fairness of presentation of the financial statements and related

disclosures. The auditor’s report must accompany the financial statements when they are issued to
the intended recipients.

The purpose of a financial statement audit is to add credibility to the reported financial position
and performance of a business. The Securities and Exchange Commission requires that all entities
that are publicly held must file annual reports with it that are audited. Similarly, lenders typically
require an audit of the financial statements of any entity to which they lend funds. Suppliers may
also require audited financial statements before they will be willing to extend trade credit (though
usually only when the amount of requested credit is substantial).

Audits have become increasingly common as the complexity of the two primary accounting
frameworks, Generally Accepted Accounting Principles and International Financial Reporting
Standards, have increased, and because there have been an ongoing series of disclosures of
fraudulent reporting by major companies.

Stages of an Audit

The primary stages of an audit are:

1.Planning and risk assessment. Involves gaining an understanding of the business and the business
environment in which it operates, and using this information to assess whether there may be risks
that.

2.Internal controls testing. Involves the assessment of the effectiveness of an entity’s suite of
controls, concentrating on such areas as proper authorization, the safeguarding of assets, and the
segregation of duties. This can involve an array of tests conducted on a sampling of transactions
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to determine the degree of control effectiveness. A high level of effectiveness allows the auditors
to scale back some of their later audit procedures. If the controls are ineffective

Inventory. Observe the physical inventory count, obtain confirmation of inventories held at other
locations, test shipping and receiving cutoff procedures, examine paid supplier invoices, test the
computation of allocated overhead, review current production costs, trace compiled inventory
costs to the general ledger.

Fixed assets. Observe assets, review purchase and disposal authorizations, review lease

documents, examine appraisal reports, recalculate depreciation and amortization. Accounts

payable. Confirm accounts, test year-end cutoff.

Accrued expenses. Examine subsequent payments, compare balances to prior years, recompute
accruals.

Debt. Confirm with lenders, review lease agreements, review references in board of directors
minutes.

Revenue. Examine documents supporting a selection of sales, review subsequent transactions,

recalculate percentage of completion computations, review the history of sales returns and
allowances.

Expenses. Examine documents supporting a selection of expenses, review subsequent transactions,

confirm unusual items with suppliers.

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 CHAPTER-4

MARKETING DEPARTMENT

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FUNCTIONS

SAIL’s marketing set-up, the ISO 9001:2015 certified Central Marketing Organisation, is India’s
largest industrial marketing set-up. CMO is primarily responsible for marketing of carbon, alloy
and special steel products produced by the steel plants of SAIL.

Backed by a strong ERP system, CMO’s network of 4 Regional Offices, 37

Branch Sales Offices, 43 operational Warehouses (23 Departmental & 20
CA yards) equipped with mechanised handling systems, and 9 operational Customer Contact
Offices function in a synchronised manner to deliver quality SAIL steel to every corner of the
country.

Even as SAIL strengthens India by participating in vital projects of national importance, it is

steadily meeting the needs of small steel consumers in remote areas of the country by making
SAIL steel available through the company’s ever-widening distributor-dealer network. Apna SAIL
shops across the country have emerged as the preferred destination for small consumers aspiring
to uplift their lifestyles.

This strategic initiative is also important in view of the company’s longterm objective of providing
a countrywide framework for ease of procurement and supply of essential steel items for the
common Indian.

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FLOWCHART

CHANNEL OF DISTRIBUTION

SAIL products are available in countries like at Japan, China, Korea, Taiwan,
Vietnam, Singapore, Philippines, Indonesia, Malaysia, Thailand, Australia,
Mexico, Europe (UK, Germany, France, Belgium, Italy, Spain, Netherlands,
Portugal), Sudan, Oman, UAE, and many more, as well as countries such as Myanmar,
Bangladesh, Sri Lanka and Nepal. Steel Authority of India has set up its operational units in major
parts of the country, which includes integrated plants like Rourkela Steel Plant, Bhilai Steel Plant,
Durgapur Steel Plant, Bokaro Steel Plant and IISCO steel plant.
SAIL has three special plants at Salem, Durgapur & Bhadravati, and one subsidiary in different
parts of the country..

PRICING POLICY

The pricing decisions in its marketing mix are guided by the price offered by bidders during the
auction. Other factors include prices offered during auction sales, managing director’s approval

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and quantity of materials required. The average price offered during auction is taken into
consideration based on the decision to fix the prices of materials and further breakup pricing are

TRADE DISCOUNTS:

Trade discounts are price reductions given to middlemen (e.g., wholesalers, industrial distributors,
retailers) to encourage them to stock and give preferred treatment to an organization’s products.

PRICE BUNDLING:

Price bundling is a very popular pricing strategy. The marketer groups similar or complementary
products and charges a total price that is lower than if they were sold separately. Comcast and
Direct TV both follow this strategy by combining different products and services for a set price.

SALES PROMOTION

SAIL has always been visible through promotional and branding activities in its marketing mix.
SAIL has sponsored the training and other expenses of wrestlers Sushil Kumar and Yogeshwar
Dutt for preparation for the 2010 Commonwealth Games. Another wrestler taking part in the
Olympics, Rajiv Tomar, is also being developed by SAIL for the Commonwealth Games. Through
Make in India campaign, it has created awareness among entrepreneurs to associate with SAIL. It
is working towards empowering small steel consumer in rural areas of the country by making steel
available through its dealer network. SAIL International Trade Division has established its brand
name globally by supplying Rails, Structurals, Merchant products, Wire Rods, Re-bars and other
products. Its products are covered by certifications such as CE marking, TUV and ‘U’ mark
required by sophisticated end uses in European markets. Steel Authority of India has undertaken
several CSR projects to create awareness among people about the practices adopted for sustainable
development. Few projects include Providing Borewell with motor and construction of 20KL
GLSR and pumping at Laxmipuram Thanda of Kolagutta, Durgi Mandal, Guntur District, Andhra
Pradesh and providing Skill development training in Smart Phone repairs at Gwalior. Hence this
covers the marketing mix of SAIL (Steel Authority of India Limited).

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ADVERTISMENT

Steel Authority of India, or SAIL, is one of the largest steel manufacturers in the world based out
of India. SAIL delivers customised steel products for industries and commercial use in its
marketing mix. SAIL’s product catalogue includes SEMIS [Blooms, Billets, Slabs], Structurals
[Beams,

Channels, Angles, Crane Rails], Bars, Rods and Rebars, Wire Rods, Coils and
Sheets, Plates, Pipes, electrical steels. SAIL also manufactures Rails, Wheels, Axles and Wheel
Sets, Alloy Steel plants, Pig Iron, Parallel Flange beams and structurals. It provides customised
steel as per demand of the client. With improved modernization, Steel Authority of India supplies
a range of heavy and medium structural section, including Parallel and

Flange Beams, which meets industrial quality and standards. The SAIL company produces
semifinished products, including blooms, slabs and billets, which are converted into finished
products in the company’s

processing plant. Steel plates are used mainly for the manufacture of bridges, ships, storage tanks,
boilers and railway wagons and boilers. SAIL produces steel bars and rods through a process of
hot rolling billets in the finishing mills

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MARKET SHARES

SAIL last traded price had surged 6.2% to Rs 76.7 on the BSE. On the NSE, SAIL last traded price
had surged 6.2% to Rs 76.8. The total volume of shares traded was 110.3 m.

Overall, the broader S&P BSE METAL Index was up by 3.5%. And the benchmark S&P BSE
SENSEX was at 49,008.5 (up 1.2%).

Over the last 30 days, the SAIL share price is up 4.8%. And over the last one year, SAIL share
price is up 249.4%.

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PERSONAL DEPARTMENT FUNCTION

The company has a well-equipped Research and Development Centre for Iron and Steel (RDCIS)
at Ranchi which helps to produce quality steel and develop new technologies for the steel industry.
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SELECTION PROCEDURE

The SAIL Test-Pattern and Selection Procedure is as follows:

Amazon article

Selection Process

The company conducts recruitment process every year to select new candidates. It also selects
candidates through GATE exam. The selection process of the company consists of 4 rounds.
These rounds are as follows:

Written Exam

Group Discussion

Technical Interview

HR Interview

Academic Criteria:

Degree in engineering with minimum 55% marks, in the disciple of Mechanical, Electrical,
Metallurgy, E & T, Instrumentation, Ceramics and Chemical Engineering.

Candidates are required to meet requisite minimum physical standards which are as follows:
For Men : Height – 155 cms

Weight – 45 kgs

For Women: Height – 143 cms

Weight -35 kgs

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The total time allotted to the written exam is 165 minutes. There is a negative marking of ¼ the
paper.Aptitude section consists of questions from the topics like algebra, time & work, time, speed
& distance, arithmetic, percentages, profit & loss, geometry, etc. Also questions are on logical
reasoning, comprehensions, fill in the blanks, synonyms Antonyms and from current affairs. This
section is of moderate level.

Technical section involved questions from core subjects of Mechanical, electronics, electrical and
civil engineering. This section was tough and required thorough preparation.
A person whose basics are clear could easily excel in this section.

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Overall the level of the paper is moderate to difficult. Only those candidates who clear the written
exam will qualify for the next round.

*The Company reserves the right to make changes in the written exam.

TRAINING

Management Training Institute

In over four decades of its existence, MTI has played a crucial role in enhancing the managerial
competence of senior executives of SAIL. Known for its contributions towards management
training, consultancy and research, it is one of the finest incompany training institutes in Asia and
the first in the country to have the distinction of receiving ISO 9001 certification in 1994 for
management training and related support services. The institute has the distinction of having won
the coveted Golden Peacock National Quality Award in 1996 in the SME Category. MTI has also
won the National Award for Innovative Training Practices in an All India Competition organized
by Indian
Society for Training and Development, New Delhi in 2005

DEVELOPMENT

This led to the formation of Steel Authority of India Ltd. The company, incorporated on January
24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five
integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant
and the Salem Steel Plant.

BENEFIT SCHEMES
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In a unique way of pruning employees’ cost, state-run Steel Authority of
India (SAIL) has unveiled a scheme under which a majority of its around 72,000 employees will
be able to opt for ‘shorter working period’ against proportionate forgoing of salary benefits. SAIL
believes the scheme will help its employees “attain a better work-life balance”.

“The scheme, effective from November 1, 2020, is applicable for all regular employees up to
midmanagement level. Under the scheme, employees upto E-7 (general manager) grade can opt
from various shorter working hours options like three days a week, every alternate day, four hours
every working day or half of the working days in a month with a variable pay structure,” SAIL
said in a statement.

The measure is expected to reduce SAIL’s employee benefit expenses which rose to Rs 2,043 crore
in the July-September quarter of the current fiscal, on a consolidated basis, from Rs 1,964 crore a
year ago. SAIL reported a Rs 437-crore net profit in the JulySeptember quarter of the current fiscal.

“The employees availing this scheme will be able to retain facilities and benefits including
HRA/accommodation, medical benefits and other perks, as per the scheme. This scheme is aimed
at facilitating employees for selfdevelopment, getting opportunities to enhance their knowledge
and expertise, etc, while managing their working hours/time by making it flexible,” SAIL said.

SAIL has always been reckoned as a pro-employee organisation. The company always adopts
strategies and introduces schemes for better employee engagement and motivation. This new
scheme is a step towards this and it will give a larger canvas to several employees wanting to invest
or devote time to other pursuits and responsibilities, while also being in employment, SAIL
chairman Anil Kumar Chaudhary said in a statement.

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In January this year, SAIL had launched a scheme for sabbatical leave for all its regular employees
who have completed 10 years in the company, primarily aimed at costcutting; but the scheme failed
to elicit much response, a source in the company said.

While the sabbatical leave could have been availed for a maximum of three years, SAIL has not
set any such timeline for the ‘shorter working period’ scheme.

CANTEEN

TIME KEEPING

Steel Authority of India (SAIL) has taken a step in the right direction to ensure the physical and
mental well-being of its employees. It has rolled out the ‘Shorter Working Period Scheme’, which
will allow employees to balance their domestic and professional life.
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Starting November, all regular employees up to grade E-7 or the midmanagement level, who have
completed 10 years of service, can choose to work for three days in a week, or every alternate day,
or for four hours every working day, or just 50 per cent of the working days in a month with a
variable structure.

However, employees who opt for the system will receive only 50 percent of their basic wage
(including PP/stagnation increment, if any), a dearness allowance and perks.

The scheme does not, in any way, impact the other benefits and facilities that the employees enjoy,
such as medical benefits and house rent allowance.

The objective of the scheme is to ensure the self-development of the employees, and allow them
time to add to their existing knowledge and skills, pursue hobbies, take vacations and spend quality
time with their family. The Company understands that unless employees are able to manage their
time better, they will not be able to develop themselves, and has, therefore, given them this level
of flexibility to ensure their physical and mental well health.

The move is expected to make the staff more productivity and also maximise their potential.

PRODUCTION DEPARTMENT

Steel Authority of India Limited (SAIL) had undertaken Modernization and

Expansion of its five Integrated Steel Plants at Bhilai (Chhattisgarh), Bokaro
(Jharkhand), Rourkela (Odisha), Durgapur (West Bengal), Burnpur

Bengal) and Special Steel Plant at Salem (Tamil Nadu) to enhance its Crude Steel capacity from
12.8 Million Tonne Per Annum (MTPA) to 21.4 MTPA. The Modernization and Expansion at the
above Steel Plants has been completed and various facilities are under operation, stabilization and

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ramp up. The Plant-wise details of Crude Steel production capacity (before and after modernization
and expansion) for major Steel Plants of SAIL Modernization and Expansion

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INSURANCE DEPARTMENT

Steel Authority of India limited (SAIL), today, has launched a unified and integrated website for
around 1.2 lakh beneficiaries, who are availing of SAIL Mediclaim Scheme. The beneficiaries
include the retired employees and their spouses. Considering the current situation of Corona Virus
Pandemic, where going out may not be possible for elderly people, the Company promptly acted
to provide a one-stop solution for its retired employees who can now access the facilities of the
SAIL Mediclaim Scheme from the comfort of their home. Shri Dharmendra Pradhan, Hon’ble
Minister of Petroleum & Natural Gas and Steel has all along been stressing to give focus on
strengthening SAIL’s hospitals and the healthcare systems of the Company for the public as well
as for SAIL employees.

The beneficiaries can access this website either directly through the URL
(http://SAIL.mdindia.com) or can access it through the Company’s main website (www.sail.co.in)
which also will have the link. All the resources pertaining to SAIL Mediclaim Scheme like e-cards
for members, guide booklet, details of all network hospitals and healthcare service providers,
requisite claim forms & undertakings, relevant circulars and scheme, etc. would be available on
this Website’s download section. The members would be able to view their profile and
membership status, send preauthorization claim intimation, lodge their claims online by uploading
documents/ADRs, etc. and monitor the status of their claim settlement on this portal. This will do
away the requirement of physical movement of elderly people to avail of benefits under the scheme
with the click of a button.

The new Website will have functionalities for Plants/Units of SAIL, Exemployees, Insurance
Agency and TPA and details of Mediclaim Scheme would be available on a live (real time basis)
on this website. The Plants/Units of SAIL will have a dashboard to view enrolment status and
profiles of enrolled members. The Internal Resource Persons (IRPs) of Plants/Units can update
member details. The Website would also facilitate submission of various claims and lodging of
cashless claims in a paperless manner.

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A Grievance Redressal Mechanism has also been provided on the Portal where lodging of each
grievance would generate a unique Grievance Registration Number (GRN). Members would be
able to track, and provide feedback on the grievance resolution through GRN.

This is Company’s unique initiative to reach out, engage and stay connected with its retired
employees and their spouses. The contents and provisions of this website will facilitate delivery
of quality health-care services to the members of SAIL’s extended family.

RESEARCH AND DEVELOPMENT DEPARTMENT

The Research & Development Centre for Iron & Steel (RDCIS) at Ranchi is the corporate R&D
unit of SAIL. Set up in 1972, the Centre has ISO: 9001 certification to its credit. It undertakes
R&D projects in diverse realms of Iron & Steel Technology under the categories of Plant
Performance Improvement (PPI), Product Development (PD), Scientific Investigation and
Development (SID), Basic Research (BR) and Technical Services (TS).

RDCIS has around 180 dedicated and competent scientists and engineers and its laboratory is
equipped with around 300 sophisticated diagnostic research equipment and 5 pilot plant facilities.

RDCIS provides customers with prompt, innovative and cost-effective R&D solutions; develop
and commercialize improved processes and products; continually enhance the capability of its
human resources to emerge as a centre of excellence. The major efforts are directed towards cost
reduction, quality improvement and value-addition to products of SAIL plants and providing
application engineering support to SAIL’s products at customers’ end. RDCIS, along with steel
plants, takes initiatives to develop special steel products utilizing the modernized production
facilities at steel plants.

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RDCIS also offers technological services to various organizations in the form of Knowhow
transfer of technologies developed by RDCIS; Consultancy services; Specialized testing services;
Contract research; Technology Awareness Programmes.

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CONCLUSION

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Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and
one of the Maharatna’s of the country’s Central Public Sector Enterprises.

SAIL produces iron and steel at five integrated plants and three special steel plants, located
principally in the eastern and central regions of India and situated close to domestic sources of raw
materials. SAIL manufactures and sells a broad range of steel products

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