Board of Directors

Directors message
 The company increased production of value added steel and achieved the saleable steel production of 12.9 MT representing full capacity utilization.  The company achieved a turnover of 47,041 crore during 2010-11  The company has also undertaken expansion and modernization plan with focus on higher production of value added products.

Money in the business

Share capital has remained the same from previous year Reserves and surplus increased by 3752.27cr Secured loans increased by 4058.01cr 403.77cr worth Unsecured loans cleared Totally funds increased by 7483.16cr

Employing the capital

Net Fixed assets increased by 8740.08cr Investments worth 16.01cr were purchased 10621.46 worth fixed assets purchased Decrease in working capital 1272.23cr 50.87cr worth assets sold Loss incurred on the sale Increasing its fixed assets by 5000cr to 8500cr every year from 2008

Profitability
In crores Increase % Gross profit Operating costs Net profit Operating profit 46%( 09), 49%( 10), 45%( 11) 12711.30, 11337.47, 12150.40 9399cr, 10132cr, 7194cr 10732.45, 10,823.90, 9208.22 2009 Sales Profit after Tax 48738 6170 2010 43935 6574 26% ( 09), 25% ( 10), 25.8% ( 11) 19% ( 09), 23% ( 10), 15.3% ( 11) 22% ( 09), 24.6% ( 10), 19.5% ( 11) 2011 47041 4905 Proportion to sales

Cash and fund flow analysis

Liquidity positions over a period current ratios of..
 3.31 in 2011  3.54 in 2010  2.80 in 2009

Dividend paid per share..

 2.40 in 2011  3.30 in 2010  2.60 in 2009

Increase in value of assets(purchased and sold) Dividend paid..991cr in 2011 Working capital decreased because:
 Debtors decreased  Current liabilities increased

 Firm has been raising loans(debts) to meet its need of funds and also paying off their previous debts on time periodically It has also been increasing Shareholders fund by transferring a significant part of income to reserves and surplus In 2011 out of the total PAT 29679.03cr, 3752.27cr were transferred to reserves and surplus Company has also reduced on their investment in long term investments

Investment perspective
Sail has an Return on Investment of 12.2% on 2011 as compared to 19.77% on 2010 Return on shareholder s fund is 13.23% on 2011 as compared to 19.73% on 2010 Earnings per share..
 11.87 in 2011  16.35 in 2010  14.94 in 2009

Highlights of 2011
Turnover of 47,041cr compared to 43,935cr last year, showing 7% year on year growth Total dividend payout of 24% (2.40 per share), including interim dividend of 12% As on 31.3.2011, company's cash reserves in term deposits stood at over 17,000cr The company's total borrowings stood at 20,165cr taking its debt-equity ratio to 0.54:1 Net worth as on 31.3.11 was 37,069cr compared to 33,317cr last year Capex touched a record 11,280cr, 6% higher than the previous year

Notes
The financial statements are prepared under the historical cost convention on accrual basis of accounting In preparing the financial statements in conformity with accounting principles generally accepted in India Fixed assets are stated at cost of acquisition less depreciation Expenditure on development of land, including leasehold land, is capitalized as part of cost of land Cost includes all identifiable expenditure including trial-run expenses Depreciation is provided on straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956 Long-term investments (including investments in subsidiary companies and joint ventures) are carried at cost Raw materials, stores & spares and finished/semi-finished products (including process scrap) are valued at lower of cost and net realisable value of the respective plants/units

Auditor s Certificate
To The Members of Steel Authority of India Limited We have audited the attached Balance Sheet of STEEL AUTHORITY OF INDIA LIMITED, as on 31st March 2011, the Profit & Loss Account and the Cash Flow Statement of the company for the year ended on that date annexed thereto, in which are incorporated the accounts of Plants, Units, Branches and other Offices audited by the Branch Auditors in accordance with the letter of appointment of Comptroller & Auditor General of India. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

Thank you !