Chapter-1: Profile of the Company INTRODUCTION TO SAIL

Name of Company STEEL AUTHORITY OF INDIA LTD. Address Steel Authority of India Limited, Ispat Bhawan, Doranda, Ranchi - 834002, Jharkhand, India Telephone Nos. 91 (0651) 2411111 / 2411156 E-mail Address [email protected]/ [email protected] Website Name sail.co.in Level of Business National Location of registered office Steel Authority of India Limited, Ispat Bhavan 40, Jawaharlal Nehru Road, Kolkata - 700 071. Geographical area of operation North , South , East & West of India (All over India) Nature of Organisation Production of Steel

SAILs STEEL PLANTS

INTEGRATED STEEL PLANTS
Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal

SPECIAL STEEL PLANTS

Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

SAILs HISTORY
The Precursor
SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialisaton of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954. The President of India held the shares of the company on behalf of the people of India.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959. A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

Holding Company
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. 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. In 1978 SAIL was restructured as an operating company. Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.

SAILS SIZE
SAIL is Indias largest steel producing company with a turnover of Rs.45,555 cr. the company is among the top five highest profit earning corporate of the country.

OWNERSHIP & MANAGEMENT

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its Navratna status, enjoys significant operational and financial autonomy

SAILs VISION
SAIL today is one of the largest industrial entities in India. Its strength has been the diversified range of quality steel products catering to the domestic, as well as the export markets and a large pool of technical and professional expertise. Today, the accent in SAIL is to continously adapt to the competitive business environment and excel as a business organisation, both within and outside India.

SAILS MISSION
Modernisation and Expansion Plan of SAIL Corporate Plan, 2012
Corporate Plan, 2012 (CP12) was formulated in 2004 for 4 integrated steel plants for increase in Hot Metal production to 20 Mt by 2012. After merger of in IISCO feb06, the Hot Metal production Plan was revised to 22.5 Mt by 2012. Expansion of Special Steel Plants was also included. Besides capacity enhancement, the plan also addresses the need of SAIL Plants towards eliminating technological obsolescence, energy savings, enriching product mix, pollution control, developing mines & collieries to meet higher requirement of key raw materials, introduce customer centric processes and have matching infrastructure facilities in the Plant to support higher production volumes. Investment to the tune of Rs 34,982 crore was envisaged under the Corporate Plan. It was envisaged to take up the Projects in segregated manner based on the Techno-economic viability of each project.

Objective of CP12

100% production of steel through Basic Oxygen Furnace (BOF) route 100% processing of steel through continuous casting Value addition by reduction of semi finished steel Auxiliary fuel injection system in all the Blast Furnaces State-of-art process control computerisation/ automation State-of-art online testing and quality control Energy saving schemes Secondary refining Adherence to environment norms

Production (Mtpa)
Item Hot Metal Crude Steel 2004-05 (Actual) 13.2 12.5 CP-12 22.5 21.6

Saleable Steel

11.3

20.2

Areas-Wise Investment Planned (Rs. crore)

Plant BSP DSP RSP BSL ASP SSP VISL ISP RMD Total % Sustenance 2120 772 1199 2187 306 18 239 513 7354 21 Quality 880 545 832 833 154 60 3304 9 Capacity 6000 1523 2559 3320 1248 7504 2170 24324 70 Total 9000 2840 4590 6340 460 1266 299 8017 2170 34982 100

Expansion Plan, 2010

The Corporate Plan, 2012 was reviewed by Honble Minister of Steel in Jul06, wherein it was decided to take up the Expansion of Integrated Steel Plants and Special Steel Plant in one go based on Composite Project Feasibility Report (CPFR). By that time Expansion of IISCO Steel Plant and Salem Steel Plant was already approved in-principle based on the Techno-Economic Feasibility Report (TEFR) of MECON. For the Expansion of other four integrated Steel Plants, MECON was assigned the job of Preparation of CPFR in Aug06. The CPFR for the four integrated steel plants was prepared by MECON. In principle approval has been accorded by SAIL Board for the expansion plans of IISCO Steel Plant (Jul06), Salem Steel Plant (Jun06), Bokaro Steel Plant (Dec06), Bhilai Steel Plant (Apr07), Rourkela Steel Plant (May07) and Durgapur Steel Plant (Jul07).

Item

2006-07 (Actual) 14.61 13.51 12.58

Hot Metal Crude Steel Saleable Steel

Capacity as per Expansion Plans 2010 26.18 24.59 23.13

PRODUCT RANGE OF SAIL

Semis Long Products
Blooms, Billets & Slabs Structurals Crane Rails Bars, Rods & Rebars Wire Rods HR Coils, Sheets & Skelp Plates CR Coils & Sheets GC Sheets\ GP Sheets and Coils Tinplates Electrical Steel Pipes Rails Wheels, Axles, Wheel Sets

Flat Products

Tubular Products Railway Products

ABOUT SAIL
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. 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, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being Indias largest producer of iron ore and of having the countrys second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making. SAIL's wide range of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organisation (CMO) and the International Trade Division. CMO encompasses a wide network of 34 branch offices and 54 stockyards located in major cities and towns throughout India. With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide. SAIL 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. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

SOME OTHER PRODUCTS

1. 2. Pig Iron Fertilsers Ammonium Sulphate (20.6% N)

3 Coal Chemical Benzene (NG) Toluene (NG & IG) Xylene Light Solvent Naptha Solvent Oil Heavy Solvent Naptha Benzol (IG) Still Bottom Oil Hard, Medium, Granulated and Liquid Pitch Extra Hard Pitch Hot Pressed Naphthalene/ Naphthalene Flakes Heavy Creosote Oil Anthracene Oil Light Creosote Oil Meta Para Creosole Light Oil Sodium Phenolate Drained Naphthalene Oil Dephenolised Oil Heavy Benzol NG: Nitration Grade

BOARD & ORGANISATION OF SAIL

Chairman Shri S.K. Roongta Functional Directors Technical Shri K.K. Khanna Personnel Shri G. Ojha Finance Shri Soiles Bhattacharya Commercial Shri Shoeb S. Ahmed Managing Directors IISCO Steel Plant Shri Nilotpal Roy Durgapur Steel Plant Shri V. Shyamsundar Rourkela Steel Plant Shri B.N. Singh Bokaro Steel Plant Shri V.K. Srivastava Bhilai Steel Plant Shri R. Ramaraju

Government Directors Shri A.K. Rath Special Secretary & Financial Adviser Ministry of Steel, Government of India Shri G. Elias Joint Secretary Ministry of Steel, Government of India Independent Directors Dr. S.C. Jain Prof. R.P. Sengupta Dr. Velu Annamalai Shri Siddharth Kak Shri Shyamal Ghosh Shri Mohammad Yusuf Khan Prof. Deepak Nayyar Prof. Javaid Akhtar Shri P.K. Sengupta Dr. Vinayshil Gautam Secretary Shri Devinder Kumar

BRIEF DESCRIPTION ABOUT STEEL PLANTS OF SAIL

BHILAI STEEL PLANT
Seven - time winner of Prime Ministers Trophy for best Integrated Steel Plant in the country, Bhilai Steel Plant (BSP) is Indias sole producer of rails and heavy steel plates and major producer of structural. The plant is the sole supplier of the country's longest rail tracks of 260 metres. With an annual production capacity of 3.153 MT of saleable steel, the plant also specializes in other products such as wire rods and merchant products. Since BSP is accredited with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel Plant come under the ISO umbrella. At Bhilai IS0:14001 has been awarded for Environment Management System in the Plant, Township and Dalli Mines and it is the only steel plant to get certification in all these areas. The Plant is accredited with SA: 8000 certification for social accountability and the OHSAS-18001 certification for Occupational health and safety. These internationally recognised certifications adds value to Bhilais products and helps create a place among the best organisations in the steel industry. PRODUCT-MIX TONNES/ANNUM Semis 5,53,000 Rail & Heavy Structural 7,50,000 Merchant Products (Angles, Channels, Round & TMT bars) 5,00,000 Wire Rods (TMT, Plain & Ribbed) 4,00,000 Plates (up to 3600 mm wide) 9,50,000 Total Saleable steel 31,53,000 Location : Forty kms west of Raipur, the capital city of Chhattisgarh, along the HowrahMumbai railway line and the Great-Eastern highway, stands Bhilai Steel Plant (BSP).

BOKARO STEEL PLANT

Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL, first as a susidiary and then as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968. The Plant is hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have already been commissioned and the 90s' modernisation has further upgraded this to 4.5 MT of liquid steel. The new features added in modernisation of SMS-II include two twin-strand slab casters along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. The modernisation of the Hot Strip Mill saw addition of new features like high pressure descalers, work roll bending, hydraulic automatic gauge control, quick work roll change, laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient pusher type furnaces. A new hydraulic coiler has been added and two of the existing ones revamped. With the completion of Hot Strip Mill modernisation, Bokaro is producing top quality hot rolled products that are well accepted in the global market. Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries.

DURGAPUR STEEL PLANT

Set up in the late 50's with an initial annual capacity of one million tonnes of crude steel per year, the capacity of Durgapur Steel Plant (DSP) was later expanded to 1.6 million tonnes in the 70's. A massive modernisation programme was undertaken in the plant in early 90's, which, while bringing numerous technological developments in the plant, enhanced the capacity of the plant to 2.088 million tonnes of hot metal,1.8 million tonnes crude steel and 1.586 million tonnes saleable steel. The entire plant is covered under ISO 9001: 2000 quality management system. The modernized DSP now has state-of the-art technology for quality steel making. The modernized units have brought about improved productivity, substantial improvement in energy conservation and better quality products. DSPs Steel Making complex and the entire mills zone, comprising its Blooming & Billet Mill, Merchant Mill, Skelp Mill, Section Mill and Wheel & Axle Plant, are covered under ISO: 9002 quality assurance certification. With the successful commissioning of the modernized units, DSP is all set to produce 2.088 million tones of hot metal, 1.8 million tones of crude steel and 1.586 million tones of saleable steel annually. PRODUCT-MIX Merchant Products Structural Skelp Wheels & Axles Semis Total Saleable steel TONNES/ANNUM 2,80,000 2,07,000 1,80,000 58,000 8,61,000 15,86,000

Location Situated at a distance of 158 km from Calcutta, its geographical location is defined as 230 27' North and 880 29' East. It is situated on the banks of the Damodar river. The Grand Trunk Road and the main Calcutta-Delhi railway line pass through Durgapur.

IISCO STEEL PLANT (ISP)

IISCO Steel Plant (ISP), an integrated steel plant in Burnpur, has the capacity to produce 4.26 lakh tonnes of saleable steel and 2.54 lakh tonnes of pig iron annually. ISP, the erstwhile Indian Iron & Steel Company (IISCO), which was a 100% subsidiary of Steel Authority of India Limited (SAIL) has been amalgamated with the parent company with effect from 16 February 2006. ISP produces a large number of steel structurals and special sections as well as pig iron. the plant pioneered the production of centre sill Z-section used in the fabrication of wagon and Z-type sheet piling section used in construction of barrages, bridge foundations and other projects and colliery arch section used for roof support in collieries. The plant has also developed slit rolling for small diameter rounds (10 mm and 12 TMT), which are in high demand in the domestic market. The plant is set to undego modernisation-cum-capacity expansion though which its hot metal production capacity will be raised to 2.5 MT by 2011-12. ISP is accredited with ISO 9001:2000 QMS for its Heavy Structural Mill and Merchant & Rod Mill. It has also been awarded ISO 14001:2004 EMS for its entire Rolling Mill Complex. Location ISP is situated at Burnpur near Asansol in the Burdwan district of West Bengal. History The origin of ISP can be traced to 1874 when James Erskine founded the Bengal Iron Works and set up a plant at Kulti (in West Bengal) to produce pig iron. In 1918, the erstwhile IISCO, promoted by Burn and Company, came into being after changing hands several times. The manufacture of steel at Burnpur started in 1939. By the middle of the 1960s, the plant, under the chairmanship of industrialist Sir Biren Mookerjee, was producing one million tonne a year. On July 4, 1972, the company was taken over by the Government of India. In March 1979, it was made a wholly-owned subsidiary of SAIL. The erstwhile IISCO was once quoted on the London Stock Exchange, and had the pride of place on the Calcutta Stock Exchange in the early 1960s.

ROURKELA STEEL PLANT

Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. Subsequently, the capacity was enhanced to 1.9 million tonnes. The plant was modernized in the mid 1990s with a number of new units with state-of -the-art facilities. Most of the old units have also been revamped for effecting substantial improvement in the quality of products, reducing the cost and ensuring cleaner environment. RSP was the first plant in India to incorporate LD technology of steel making. It is also the first steel plant in SAIL and the only one presently where 100% of the slabs rolled are produced through the cost effective and quality centered continuous casting route. RSP is the only plant in SAIL to produce silicon steels for the power sector, high quality pipes for the oil and gas sector and tin plates for the packaging industry. Almost all major units of the plant are covered under ISO: 9002 certification, while its Silicon Steel Mill and Sintering Plant II have been awarded ISO: 14001 certification for Environment Management. The present capacity of the Plant is 2 million tonnes of Hot Metal, 1.9 million tons of Crude Steel and 1.671 million tonnes of Saleable Steel. Its wide and sophisticated product range includes various flat, tubular and coated products. PRODUCT-MIX TONNES/ANNUM Plate Mill Plates 2,99,000 HR Plates 92,500 HR Coils 3,98,000 ERW Pipes 75,000 SW Pipes 55,000 CR Sheets & Coils 4,33,000 Galvanized Sheets (GP& GC) 1,60,000 Electrolytic Tin-Plates 85,000 Silicon Steel Sheets 73,500 Total Saleable Steel 16,71,000 Location Rourkela Steel Plant is located in the northwestern tip of Orissa and at the heart of a rich mineral belt. Being situated on the Howrah-Mumbai mainline, Rourkela is very well connected with most of the important cities of India. The nearby airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413KM). Rourkela also has an Airstrip maintained by Rourkela Steel Plant

ALLOY STEEL PLANT

The pioneer in the production of alloy and special steels. Alloy Steels Plant (ASP), Durgapur was commissioned with an initial capacity of 1,00,000 tonnes of ingot steel and 60,000 tonnes of saleable steel. Through two phases of expansion and modernization, the capacity has been revised to 2.46 lakh tonnes of liquid steel and 1.78 lakh tonnes of saleable steel. Recipient of ISO-9001 (2000) certification for the entire plant, ASP is equipped with state-of-the-art technology for producing world-class quality alloy and special steels. The plant has one slab-cum-twin bloom continuous casting machine, the only one of its kind in India. It is specially designed for casting special steels like Austenitic and Ferritic stainless steel and a variety of non-stainless steels including bulletproof steel. The continuous casting machine is equipped with a state-of-art Electro-Magnetic Stirrer in its mould for casting Blooms. ASP has the capacity to produce Slabs, Blooms, Bars, Plates and Forged items of over 400 grades in a wide range of sizes. It also produces value added items like Cold Rolling Mill rolls, Concast rollers, crane wheels, springs, hammers, grate bars, hot saw blade, shear blade, bright bar, stainless steel liner plate, etc. ASP is also supplying import substitution item components to many customers through established conversion agents. Location Alloy Steels Plant has a unit-based marketing set-up with Head Quarters at Durgapur and regional offices at Kolkata, Murnbai, New Delhi and Chennai. It also has field offices in different places throughout the country, exclusively marketing the products of ASP. The Field Executives work in all the important centres in the country to ensure prompt and effective customer service and speedy redressal of complaints, if any.

SALEM STEEL PLANT

Salem Steel Plant (SSP) is a premier producer of international quality stainless steel in India. Commissioned in 1981, the Plant has a capacity to roll 1,86,000 tones of hot rolled carbon and stainless steel flat products and 70,000 tones of cold rolled stainless steel sheets and coils per annum. The Plant has gone beyond its designed capacity and successfully cold rolled value added 0.13 mm thick stainless steel. SSP can also supply hot rolled carbon steel in thick nesses of 1.5, 1.4 and 1.25 mm. Its products have become a household name Salem Stainless in the domestic market and are widely exported; besides meeting the requirements of 100 per cent export oriented units and free-trade zones in India. In hot rolled special grade carbon steels, SSP has been recognized as a well-known manufacturer of boiler quality steel. The Plant is also supplying LPG grade IS 6240 steel in sheet form. The entire Plant is certified for the ISO: 9001:2000 Quality Assurance and the ISO: 14001 Environmental Management Systems. A Blanking Line, the first of its kind in India, was established in 1993, with an annual capacity to produce 3000 tonnes of ferritic grade coin blanks or 3600 tonnes of utility blanks. Coinage of Re 1, 50 paise and 25 paise denominations are minted from the blanks supplied by SSP to the Government Mint in Noida, Mumbai, Kolkata and Hyderabad. SSP has revolutionized application of stainless steel in India both in conventional and unconventional areas. High-tech industries like atomic power stations prefer 'Salem Stainless'. It is also chosen in industrial sectors like dairy and food processing, chemical and fertilizer, heavy engineering, railways, automobile, bulk solid handling, power etc. The building and architecture segment, which is growing at a rapid pace, sees 'Salem Stainless' as the most dependable companion. SSP undertakes turnkey projects like fabrication and supply of stainless steel tubes, pipes for sugar and chemical industry and for water pipelines. Under conversion scheme, valueadded products like kitchen & tableware and doorframes are manufactured and supplied in bulk to corporates. SSP has also developed new application of its products, viz. LPG tanks for automobile, stainless steel ceiling fans, exhaust fans, corrugated sheets, water tanks, etc. In architecture, building and construction, the prestigious structure where Salem Stainless was chosen include the Parliament House Library Complex, New Delhi, the worlds tallest twin buildings -- the Petronas Twin-Towers, in Malaysia and the retractable roofing at the Melbourne Tennis Stadium, Australia. The coaches of the high speed Jan Shatabdi Express trains are furnished with modular rail marts and sub pantries made entirely of Salem Stainless. Korean blue resin coated corrugated curved roofing of the Koparkhairane Railway Station and the copper tan shade-coloured roofing of the the Airoli railway station in Navi Mumbai is a trendsetter for railways in India.

VISVESVARAYA IRON AND STEEL PLANT

Visvesvaraya Iron and Steel Plant (VISL) is a pioneer in production of high quality alloy and special steels and pig iron. Steel is produced through BF-BOF-LRF-VD route. The facilities include vacuum degassing, vacuum oxygen decarburisation, ladle refining furnaces, continuous casting machine, 1600 Tonnes-hydraulic-high-speed forging press, a fully automatic horizontal long forging machine with high programmeable Logic Controller (PLC) numerical control system for a semi-automatic and automatic mode of operation. VISL has an installed capacity of 77,000 tonnes of alloy and special steels and 205,000 tonnes of hot metal. VISL has received the ISO: 9001:2000 certificate for steel production through rolled and forged routes and pig iron production. Facilities Blast Furnaces BOF LRF VD/VOD CCM Primary Mill Bar Mill Press LFM QTY 1 No. 2 Nos. 4 Nos. 1 No. 1 No. 1 No. 1 No. 1 No. 1 No. Capacities 530 Cu.M. -2,05,000THot Metal/Annum 17-25 T Per Heat 25 T 25 T 80,000 T 78,000 T 36,000 T 6,000 T 1500 T

ABOUT CHAIRMAN OF SAIL

Mr. S K Roongta is the Chairman of Steel Authority of India Ltd. - the largest steel producing company in the country and one of the largest in the world. SAIL is one of the world-class steelmakers amongst major steel producer companies in the world as assessed by 'World Steel Dynamics' for the year 2006. SAIL ranks amongst the biggest corporates in India with a turnover of over Rs. 40,000 cr. and a workforce of around 1.31 lakh. SAIL is the first metal company to cross Rs. one trillion of market capitalization. An engineering graduate from BITS, Pilani and a post-graduate in International Trade from the Indian Institute of Foreign Trade (IIFT), New Delhi, Mr. Roongta started his career in 1972 as a marketing executive in SAIL, and held several vital positions in the marketing division. Acknowledged for his astute knowledge of the steel industry, analytical skills and strategic thinking, he was elevated to the SAIL Board as Director (Commercial) in 2004, and spearheaded various key marketing initiatives for the company. As Director (Personnel) of SAIL, he also headed strategic functions like HR, Business Planning and Raw Materials. He was at the forefront for upgradation of HR policies, and led initiatives for strategic alliances for meeting critical raw material needs. Mr. Roongta also headed Durgapur Steel Plant as Managing Director, as an additional charge in 2006 and during his tenure, plant could set number of records in the area of efficiency parameters. Mr. Roongta assumed charge as Chairman, SAIL in August, 2006, and within a short span of a year, he has stamped his style on the business approach of the company. He heads one of the largest corporate boards in the world, comprising of 24 distinguished members with rich experience, of which half are independent directors from diverse fields like academics, science, economics and financial sectors. Mr. Roongta has special interest in professional activities. He is a Fellow member of the All India Management Association (AIMA) , and Member on the Board of BITS, Pilani. He is also a council member of Indian Institute of Metals (IIM), Institution of Engineers, as well as several other institutions. He is a Board member of International Iron and Steel Institute (IISI), Brussels and has been playing an active role in steering the global issues relating to the steel industry. He chairs the `National Committee of CII (Confederation of Indian Industries) on Steel and Non-Ferrous Metals. He is also a member on the Board of SCOPE, an apex body of CPSEs in the country. Mr. Roongta is an avid reader and has authored and presented papers at several national as well as international conferences. Mr. Roongta is recipient of number of awards like Eminent Engineers Award by The Institution of Engineers, ' IIFT Alumnus of the Year 2006' Award, 'Honorary CEPMPMA Fellowship Award' by Project Management Associates, Fellow award by World Academy of Productivity Science and World Confederation of Productivity Science.

JOINT VENTURES OF SAIL

SAIL has promoted joint ventures in different areas ranging from power plants to ecommerce. NTPC SAIL Power Company Pvt. Ltd A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power Corporation Ltd. (NTPC Ltd.), it manages the captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 314 megawatts (MW) Bokaro Power Supply Company Pvt. Limited This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002 is managing the 302-MW power generation and 1880 tonnes per hour steam generation facilities at Bokaro Steel Plant. Mjunction Services Limited A joint venture between SAIL and Tata Steel on 50:50 basis, this company promotes ecommerce activities in steel and related areas. SAIL-Bansal Service Center Ltd. SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre at Bokaro with the objective of adding value to steel. Bhilai JP Cement Ltd SAIL has also incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set up a 2.2 MT cement plant at Bhilai SAIL has signed an MOU with Manganese Ore India Ltd (MOIL) to set up a joint venture company to produce ferro-manganese and silico-manganese at Bhilai.

SUMMER TRAINING PROJECT STEEL AUTHORITY OF INDIA LTD

Submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Business Administration (Computer Aided Managemnt) To Guru Govind Singh Indraprastha University, Delhi

Guide: Mrs Neha Parashar

Submitted by: Rahul Batra 0491371907

IITM
Nurturing Excellence

Institute of Information Technology & Management New Delhi 110058

Batch (2007-2010)

Chapter-2: SWOT Analysis of the Company

Before discussing about SWOT of SAIL below stated is a brief description what SWOT Analysis is all about: SWOT Analysis is a powerful technique for understanding your Strengths and Weaknesses, and for looking at the Opportunities and Threats you face. Used in a business context, it helps you carve a sustainable niche in your market. Used in a personal context, it helps you develop your career in a way that takes best advantage of your talents, abilities and opportunities. In business context the following are some points that we should consider: Strengths:

What advantages does your company have? What do you do better than anyone else? What unique or lowest-cost resources do you have access to? What do people in your market see as your strengths? What factors mean that you "get the sale"?

Weaknesses:

What could you improve? What should you avoid? What are people in your market likely to see as weaknesses? What factors lose you sales?

Opportunities:

Where are the good opportunities facing you? What are the interesting trends you are aware of?

Threats:

What obstacles do you face? What is your competition doing that you should be worried about? Are the required specifications for your job, products or services changing?

Is changing technology threatening your position? Do you have bad debt or cash-flow problems? Could any of your weaknesses seriously threaten your business?

Now we discuss about Strength, Weakness, Opportunities, Threats of SAIL

CH-3 Analysis of Financial Reports of the Company

Balance Sheet of SAIL As at 31st March, 2007
Schedule As at No. 31st March, 2007 SOURCES OF FUNDS Shareholders Fund Share Capital Reserves and Surplus 12601.41 Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability ( Net ) As at 31st March, 2006 (Rupees in crore) 4130.40 8471.01 1122.16 3175.46

1.1 1.2 1.3 1.4

4130.40 13182.75 17313.15 1556.39 2624.13

4180.52 1412.66 22906.33 18383.49

4297.62 1484.46

APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress Investments

1.6 1.7

1.5 29912.71 18315.00 11597.71 1236.04 12833.75 513.79 6651.47 2314.75 9609.83 152.56 1650.01

29360.46 17198.32 12162.14 757.94 12920.8 292.00 6210.06 1881.73 6172.64 85.48 1280.92

Current Assets, Loans & Advances Inventories 1.8 Sundry Debtors 1.9 Cash & Bank Balances 1.10 Other Current Assets 1.11 Loans & Advances 1.12

20378.62 Less: Current Liabilities & Provisions Current Liabilities 1.13 Provisions 1.14 Net Current Assets Miscellaneous Expenditure 1.15 (to the extent not written off or adjusted) 5398.20 5550.78 10948.98 9429.64 129.15 22906.33

15630.83 5191.70 5483.54 10675.24 4955.59 215.82 18383.49

Balance Sheet of SAIL As at 31st March, 2006

Schedule As at No. 31st March, 2007 SOURCES OF FUNDS Shareholders Fund Share Capital Reserves and Surplus 10306.65 Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability ( Net ) As at 31st March, 2006 (Rupees in crore) 4130.40 6176.25 1603.98 4165.81

1.1 1.2 1.3 1.4

4130.40 8471.01 12601.41 1122.16 3175.46

4297.62 1484.46 18383.49 17920.75

5769.79 1844.31

APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Work-in-Progress 12851.55 Investments

1.5 29360.46 17198.32 12162.14 757.94 28043.48 15558.41 12485.07 366.48 606.71 4220.69 1908.45 6132.12 142.18

1.6 1.7

12920.8 292.00

Current Assets, Loans & Advances Inventories 1.8 Sundry Debtors 1.9 Cash & Bank Balances 1.10 Other Current Assets 1.11

6210.06 1881.73 6172.64 85.48

Loans & Advances

1.12

1280.92 15630.83 5191.70 5483.54 10675.24 4955.59 215.82 18383.49

146.20 14333.63 4780.67 5385.50 10166.07 4167.56 294.93 17920.75

Less: Current Liabilities & Provisions Current Liabilities 1.13 Provisions 1.14 Net Current Assets Miscellaneous Expenditure 1.15 (to the extent not written off or adjusted)

Cash Flow Statement As at 31st March, 2007

Cash Flow Statement for the year A. Cash flow from Operating Activities Net Profit / loss (-) before taxation Add / (Less) Adjustments for : Depreciation Interest Expenses Bad debts written-off Unrealised Foreign Exchange Fluctuation Provision for Long Term Service Awards Provision for diminution in value of investments Provision for Others Deferred revenue expenditure (Charged during the year) Profit on sale of Fixed Assets Interest Income Dividend Income Operating cash flow before working capital change Adjustments for :(Increase) / Decrease in Inventories (Increase) / Decrease in Sundry Debtors (Increase) / Decrease in Loans and Advances Increase / (Decrease) in Current Liabilities Deferred Revenue Expenditure (Additions) Cash generated from Operations Direct Taxes Paid Net Cash from Operating Activities 2006-07 2005-06 (Rupees in crore) 9422.62 1236.75 215.25 4.59 (5.61) (1.38) 3.21 (182.31) 127.34 (13.97) (752.60) (17.34) 10036.55 (441.41) (437.61) (394.54) 337.90 (40.67) 9060.22 (3427.31) 5632.91 5705.74 1217.47 467.76 4.12 (20.54) 0.00 0.00 428.92 184.08 (58.24) (461.49) (13.66) 7454.16 (1766.94) 64.45 (1213.97) 79.55 (46.87) 4570.38 (746.45) 3823.93

B. Cash flow from Investing Activities Purchase of Fixed Assets Proceeds from Sale of Fixed Assets Loans to Subsidiary & Other Companies Purchase/Sale of Investments (net) Interest received Dividend received Net Cash from / (used in) Investing Activities C. Cash flow from Financing Activities Increase in Reserve & Surplus (Decrease) in Borrowings (net) Reversal of Interest on SDF Loans Interest and Finance Charges paid Dividend Paid (1259.77) Tax on Dividend Net Cash from / (used in) Financing Activities Net Increase in Cash & Cash Equivalents (A+B+C) Cash & Cash Equivalents (Opening) Cash & Cash Equivalents (Closing) (Represented by Cash & Bank balances)

(1137.66) 46.82 25.45 (225.00) 685.52 17.34 (587.53) 2.35 (111.49) 116.88 (509.16)

(896.65) 87.65 (0.83) (60.17) 518.33 13.66 (337.18)

0.21 (1515.63) 0.00 (621.56) .1 (970.64)

(136.13) (176.68) (1608.19) (3574.26) 3437.19 (87.51) 6172.64 6260.15 9609.83 6172.64

Cash Flow Statement As at 31st March, 2006

Cash Flow Statement for the year A. Cash flow from Operating Activities Net Profit / loss ( - ) before taxation Add / ( Less ) Adjustments for : Depreciation Interest Expenses Bad debts written-off Unrealised Foreign Exchange Fluctuation Provision for diminution in value of investments Provision for Others Deferred revenue expenditure (Charged during the year) Profit on sale of Fixed Assets Interest Income Dividend Income Operating cash flow before working capital change Adjustments for :( Increase ) / Decrease in Inventories ( Increase ) / Decrease in Sundry Debtors ( Increase ) / Decrease in Loans and Advances Increase / ( Decrease ) in Current liabilities Deferred revenue expenditure (Additions) Cash generated from Operations Direct Taxes Paid Net Cash from Operating Activities B. Cash flow from Investing Activities Purchase of Fixed Assets Fixed Assets sold /discarded Purchase/Sale of investments (net) Interest received Dividend received Net Cash from / ( used in ) Investing Activities C. Cash flow from Financing Activities Increase in Reserves & Surplus (Decrease) in Borrowings (net) Loans to subsidiary & Other Companies Interest and Finance Charges paid Dividend Paid (619.56) Tax on Dividend 2005-06 2004-05 (Rupees in crore) 5705.74 1217.47 467.76 4.12 (20.54) (23.54) 428.92 184.08 (58.24) (461.49) (13.66) 7454.16 (1766.94) 64.45 (1213.97) 79.55 (46.87) 4570.38 (746.45) 3823.93 (896.65) 87.65 (60.17) 518.33 13.66 (337.18) 9365.35 1192.20 605.05 35.93 24.86 (668.10) 158.25 6.52 (262.76) (13.38) 10420.38 (1163.63) (392.42) 244.46 645.29 (74.68) 9677.40 (777.93) 8899.47 (527.59) 60.91 (40.00) 206.76 13.38 (286.54)

0.21 0.28 (1515.63) (2945.13) (0.83) (45.98) (621.56) (917.23) (1259.77) (176.68) (80.97)

Net Cash from / ( used in ) Financing Activities Net Increase in Cash & Cash Equivalents (A+B+C) Cash & Cash Equivalents (Opening) Cash & Cash Equivalents (Closing) (Represented by Cash & Bank balances)

.1 (3574.26) (4516.63) (87.51) 4096.30 6260.15 2035.82 6172.64 6132.12

.2

Profit & Loss Account For year ended 31st March 2007
Schedule No. INCOME Sales Less : Excise duty Finished products internally consumed Interest earned Other revenues Provisions no longer required written back EXPENDITURE Accretion( - ) to stocks Raw materials consumed Purchase of finished / semi-finished products Employee Remuneration & Benefits Stores & Spares Consumed Power & Fuel Repairs & Maintenance Freight outward Other expenses Interest & finance charges Depreciation Less : Inter Account Adjustments Adjustments pertaining to earlier years 2.13 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 -246.52 13274.91 1.29 5087.42 2976.08 2578.84 383.43 692.04 1616.38 332.13 1211.48 27907.48 1423.08 Year ended 31st March, 2007 39188.66 5265.54 Year ended 31st March, 2006 (Rupees in crore) 27860.34 428.00 461.49 589.18 80.18 29419.19

32279.75 33923.12 4419.41 410.00 752.60 779.70 58.65 35924.07 -1010.65 12325.63 65.49 4156.69 2643.42 2493.99 356.98 753.37 1594.87 467.76 1207.30 25054.85 26484.40 1352.05 9439.67 -17.05

23702.80 5716.39 -10.65

Profit before tax Less : Provision for taxation Current tax Deferred tax Fringe benefit tax Earlier years Profit after tax Transferred from Bonds Redemption Reserve ( net ) Accumulated losses of IISCO taken over Balance brought forward from last year Provision towards long term service awards to employees upto 31st March 2006 (net of tax) Amount available for appropriation APPROPRIATIONS Amount Transferred to General Reserve Interim dividend Proposed dividend (Final) Tax on Interim dividend Tax on Proposed dividend (Final) Balance carried to Balance Sheet Earnings per Share ( Face value Rupees 10/- each ) Profit after tax Average Number of equity shares Basic and Diluted Earnings per share ( Rupees )

9422.62 3299.12 -71.80 26.48 -33.47

5705.74

1915.40 -245.37 24.33 3220.33 -1.59 1692.77 6202.29 4012.97 38.42 89.31 0.00 -910.27 6698.84 4758.77 -14.50 0.00 12925.05 635.00 660.86 619.56 92.69 105.29 10811.65 12925.05 7950.78 310.00 516.30 309.78 72.41 43.45 6698.84 7950.78 4012.97 4130400545 9.72

6202.29 4130400545 15.02

Profit & Loss Account For year ended 31st March 2007
Schedule No. INCOME Sales Less : Excise duty Finished products internally consumed Interest earned Other revenues Provisions no longer required written back EXPENDITURE Accretion in stocks Raw materials consumed Purchase of finished / semi-finished products Employees Remuneration & Benefits Stores & Spares Consumed Power & Fuel Repairs & Maintenance Freight outward Other expenses Interest & finance charges Depreciation Less : Inter Account Adjustments Year ended 31st March, 2007 Year ended 31st March, 2006 (Rupees in crore)

2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12

32279.75 4442.18

31804.99 27837.57 3282.16 428.00 461.49 584.93 80.18 29392.17 -247.61 9351.46 7.46 3811.61 2164.13 2195.59 239.83 678.64 1328.52 605.05 1126.95 21261.63 23675.78 921.71 5716.39

28522.83 285.04 262.76 503.97 192.57 29767.17

-1033.30 12325.63 65.49 4156.69 2643.42 2489.74 346.76 753.37 1604.97 467.76 1207.30 25027.83 1352.05

20339.92 9427.25

Adjustments pertaining to earlier years Profit before tax Less : Provision for taxation Current tax Deferred tax Fringe benefit tax Earlier years adjustments Profit after tax Amount Transferred from Bonds Redemption Reserve ( net ) Accumulated losses of IISCO taken over Balance brought forward Amount available for appropriation APPROPRIATIONS Transferred to General Reserve Interim dividend Proposed dividend (Final) Tax on Interim dividend Tax on Proposed dividend (Final) Balance carried over to Balance Sheet Earnings per Share (Face value Rupees 10/- each) Profit after tax Average Number of equity shares Basic and Diluted Earnings per share (Rupees)

2.13 1915.40 -245.37 24.33 -1.59

-10.65 5705.74 748.06 1844.31 0.00 -43.99

-61.90 9365.35

1692.77 4012.97 89.31 -910.27 4758.77 7950.78 310.00 516.30 309.78 72.41 43.45 6698.84 7950.78

2548.38 6816.97 167.38 22.69 7007.04 700.00 619.56 743.47 80.97 104.27 4758.77 7007.04 6816.97 4130400545 16.50

4012.97 4130400545 9.72

Analysis of Financial Statement

To analyze Balance sheet and Profit & Loss Account we have a tool known as Accounting Ratios and with the help of these ratios we can analyze the performance of a company financially. Some of the ratios that we are going to use are discussed below:

Current Ratio Current asset

Current liability This ratio shows short term financial soundness of the business. Its ideal ratio is 2:1 higher to some extent the ratio is better for company.

Liquid Ratio Quick asset

Current liability This ratio shows liquidity position of the business. Its ideal ratio is 1:1 higher to some extent the ratio is better the short term financial position.

Debt-Equity Ratio Debt

Equity This ratio judges the long term financial position and soundness of the firm. Higher the ratio is better for company.

Total Asset to Debt Ratio Total asset

Debt This ratio measures the safety margin available to the suppliers of long term debts. Higher the ratio is better for company.

Net Profit Ratio Net Profit

*

100

Sales It indicates the overall efficiency of the business. Higher the net profit ratio is better for company. Information required for calculating these ratios is as follows : 2007 2006 2005 (In Crore) Current Asset 20378.62 15630.83 14333.63 Current Liability 10948.68 10675.24 10166.07 Liquid Asset 13727.15 9420.77 10112.94 Debt 4180.52 4297.62 5769.79 Equity 17313.15 12601.41 10306.65 Total Asset 22906.33 18383.47 17920.75 Net Profit 6202.29 4012.97 6816.97 Sales 33923.12 27837.57 28522.83

Current Ratio In year 2007 - 1.86:1 In year 2006 1.46:1 In year 2005 - 1.40:1 As ideal current ratio is 2:1 therefore, in 2007 the current is better which mean a clear increment in short term financial position of company. Liquid Ratio In year 2007 1.25:1 In year 2006 0.86:1 In year 2005 0.99:1 As we have ideal liquid ratio equal to 1:1 there fore in 2005 it was approximately ideal But as higher is better so in 2007 we can see growth in liquidity position of the company. Debt Equity Ratio In year 2007 0.23:1 In year 2006 0.34:1 In year 2005 0.56:1 In case of debt-equity ratio the ratio lower is better which mean less debt in company in comparison to equity and through these figures we can notice there is certain on going improvement in company. Total Asset to Debt Ratio In year 2007 5.47:1 In year 2006 4.27:1 In year 2005 3.1:1 Total asset to debt ratio indicates how much asset do company have tackle with debt and higher the ratio is good so there is constant increase in every year so it is good for company. Net Profit Ratio In year 2007 18.3% In year 2006 14.1% In year 2005 23.9% Net profit ratio is an important ratio which tell about the most concerned thing in company that is profit and higher the percentage of net profit ratio is better so in this context max. profit was in yea 2005 but company has raised profit ratio from 2006 to 2007 so it is a good sign for company.

For analyzing Cash Flow we have to compare various aspects of cash flow which are as follows: Net Cash from Operating Activities In year 2007 5632.91 In year 2006 3823.93 In year 2005 8899.77 The maximum cash flow takes place in year 2005 and in 2007 there is increase so its clearly depicts that 2005 was best year but ther is improvement in company. Net Cash from / (used in) Investing Activities In year 2007 (587.53) In year 2006 (337.18) In year 2005 (286.54) In case investing activities higher the amount use is better for company so in that context company is showing a certain growth. Net Cash from / (used in) Financing Activities In year 2007 (1608.19) In year 2006 (3574.26) In year 2005 (4516.63) In case of financing activities cash flow is better and not use but company has used cash in all three years so they need to correct this aspect but according to figures company is certainly moving in right direction. Net Increase in Cash & Cash Equivalents In year 2007 3437.19 In year 2006 (87.51) In year 2005 4096.3 We can clearly see from the figures that 2007 and 2005 have been a good year for the company because there is an increase in cash at the end of the year.

So over all we can say that 2007 and 2005 have been very good financial years for SAIL but there was slight problems in 2005 in some aspects but SAIL is moving in right direction which takes the company to path of growth and success.

CHAPTER-1 PROFILE OF COMPANY

CHAPTER-2 SWOT ANALYSIS OF THE COMPANY

CHAPTER-3 ANALYSIS OF FINAL REPORTS OF THE COMPANY

STRENGTHS OF SAIL
Positioned at top SAIL is among the top ten public sector company in India in terms of turnover. It is also the leading steel producing company of India and also ranked 19th in world. Wide Range SAIL has diversified range of quality steel products catering to the domestic , as well as the export markets and large pool of technical and professional expertise. Goodwill Lead consultant of SAIL has strong goodwill within the Indian as well as international market. SAIL also enjoys good public reputation because of its quality goods. Socio-economic Approach SAIL uphold highest ethical standards in conduct of their business and thats why SAIL is also appraised by customers.

OPPORTUNITIES OF SAIL
SAIL has a unique opportunity and distinct strength in the steel sector to grow as it possesses all the three basic pre-requisites for growth of any steel industry, viz. infrastructure including land, skilled workforce and capital. SAIL plants/units have capacity to produce 13 million tonnes of crude steel and 11 million tonnes of saleable steel with most diversified product-mix, to cater to its large customer base and their diverse requirements in terms of quality, sizes and grades. SAIL has the widest distribution network across the country with 56 warehouses and a network of dealers encompassing almost all districts in the country. This gives an opportunity to SAIL to further spread its market base. The per capita steel consumption in the country is approx. 39 kg as compared to the world average of around 173 kg. There is a substantial scope for increase in domestic steel consumption which will get boost with investments in infrastructure development in the country, especially in construction of highways, bridges, airports, seaports, oil & gas pipelines, drinking water supply pipelines etc. The size and quality range of its products make SAIL, as a preferred choice of project customers. There is accelerated growth in many steel consuming sectors such as automobile and auto components sector, oil & gas transportation etc. With the facilities planned post modernization, SAIL would be in a better position to cater to the growing needs of these segments. Keeping the above opportunities in mind, SAIL's implementation of modernization & expansion plans to raise the capacity to over 25 million tonnes of hot metal has now been put on the fast track with completion expected by 2010 as against the earlier schedule of 2012.

THREATS OF SAIL
The customs duty on import of steel is 5%, which is even lower than some ASEAN countries. Although 2006 has been a good year for steel with the international prices remaining buoyant, any dip in the prices would lead to increase in imports, resulting in reduction in realisation in the domestic market. The availability of TMT Bars, Wire Rods and Structurals from the secondary sectors mushrooming in the rich iron ore eastern region without much quality consciousness, may affect the realization of even quality products. There is substantial excess capacity for galvanised products in India which results in substantial export volumes. Any set back in export will have a negative impact and a negative cascading effect on demand and prices of CR & HR coils. China produced 423 million tonnes of crude steel in 2006 as against 356 million tonnes in 2005, a growth of 18.8%. China overtook Japan, Russia and the EU25 to become the World's biggest steel exporting country in the world in 2006. From 26 million tonnes of finished and semi-finished steel in 2005, Chinese exports touched nearly 50 million tonnes in 2006. With the momentum of the growth being maintained, China is likely to have over capacity to the extent of almost 100 million tonnes. China being a neighbour, India is a likely target for future Chinese exports.

Comparison of some of the financial factors over the years discussed before can also be shown using some diagrams which are as follows:
TURNOVER
40000 35000 30000 25000 20000 15000 10000 5000 0 2003 2004 2005 YEARS 2006 2007 19207 Turnover 24178 32280 39189

31805

EARNING PER SHARE

18 16 14 12 10 8 6 4 2 0 -2 -0.7 2003 6 9.7 Earming pe r share 16.5 15

2004

2005 YEARS

2006

2007

DEBT & EQUITY 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2003 2004 2005 YEARS 2006 2007 Total loans Share holders fund

PROFIT AFTER TAX

8000 7000 6000 5000 4000 3000 2512 2000 1000 0 -1000 YEARS -304 2003 4013 profit 6817

6502

2004

2005

2006

2007

These graphs without any description depicts very clearly the variations between various financial factors in the time span of 5 years that is 2003-2007.

CONTENTS
CHAPTER 1 Introduction to SAIL About SAIL SAILs Steel Plants SAILs History & Ownership Joint ventures of SAIL SAILs Vision & Mission Product Range of SAIL About the Chairman Board & organization of SAIL Description about Steel Plants of SAIL

CHAPTER 2 About SWOT Strengths of SAIL Opportunities of SAIL Threats of SAIL

CHAPTER 3 Balance sheet of 2006 & 2007 Cash Flow Statement of 2006 & 2007 Profit & Loss Account of 2006 & 2007 Analysis of Financial Statements

LIST OF FIGURES
TURNOVER OF SAIL EARNING PER SHARE DEBT & EQUITY OF SAIL PROFIT AFTER TAX

CERTIFICATE
I, Mr. Rahul Batra , Roll no. 0491371907 certify that the Summer Training Report ( BBA CAM 213 ) entitled Steel Authority of India Ltd. is done by me and is an authentic work. The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of student Date

Certified that the Summer Training Report (BBA CAM-213 ) entitled Steel Authority of India Ltd. Done by Mr. Rahul Batra ,Roll no. 0491371907, is completed under my guidance.

Signature of Guide Date Name of the guide Designation

Countersigned Director