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A REPORT ON
SAIL AND JSW STEEEL
BY
Enrollment Number:
IFHE for Higher Education and
Foundation
ICFAI BUSINESS SCHOOL(IBS),
Hyderabad
A REPORT ON
SAIL AND JSW STEEL
BY
The report was written to
A report submitted in partial fulfilment of
the requirements of BBA Program of IBS
Hyderabad.
DATE OF SUBMISSION:
TABLE OF CONTENTS
Chapter 1: Introduction
Chapter 2:Company Profiles.
Chapter 3: Companies Tax rates before GST
Chapter 4: Companies Tax rates After GST implementation
Chapter 5: Summary of Findings and Conclusions
Bibliography
Chapter 1
Introduction
What is GST & How it works?
GST stands for Goods and Services Tax. It is an Indirect tax which introduced to replacing a
host of other Indirect taxes such as value added tax, service tax, purchase tax, excise duty, and
so on. GST levied on the supply of certain goods and services in India. It is one tax that is
applicable all over India.
How will GST works:
 Manufacturer: The manufacturer will have to pay GST on the raw material that is
purchased and the value that has been added to make the product.
 Service Provider: Here, the service provider will have to pay GST on the amount that
is paid for the product and the value that has been added to it. However, the tax that has
been paid by the manufacturer can be reduced from the overall GST that must be paid.
 Retailer: The retailer will need to pay GST on the product that has been purchased from
the distributor as well as the margin that has been added. However, the tax that has been
paid by the retailer can be reduced from the overall GST that must be paid.
 Consumer: GST must be paid on the product that has been purchased.
History Of GST
On July 1st 2017, the Goods and Services Tax implemented in India. But, the process of
implementing the new tax regime commenced a long time ago. In 2000, Atal Bihari Vajpayee,
then Prime Minister of India, set up a committee to draft the GST law. In 2004, a task force
concluded that the new tax structure should put in place to enhance the tax regime at the time.
In 2006, Finance Minister proposed the introduction of GST from 1st April 2010 and in 2011
the Constitution Amendment Bill passed to enable the introduction of the GST law. In 2012,
the Standing Committee started discussions about GST, and tabled its report on GST a year
later. In 2014, the new Finance Minister at the time, Arun Jaitley, reintroduced the GST bill in
Parliament and passed the bill in Lok Sabha in 2015. Yet, the implementation of the law
delayed as it was not passed in Rajya Sabha.
GST went live in 2016, and the amended model GST law passed in both the house. The
President of India also gave assent. In 2017 the passing of 4 supplementary GST Bills in Lok
Sabha as well as the approval of the same by the Cabinet. Rajya Sabha then passed 4
supplementary GST Bills and the new tax regime implemented on 1st July 2017.
Tax Laws Before the Implementation of GST
 The Centre and the State used to collect tax separately. Depending on the state, the tax
regimes were different.
 Even though import tax was levied on one individual, the burden was levied on
another individual. In the cases of direct tax, the taxpayer must pay the tax.
 Prior to the introduction of GST, direct and indirect taxes were present in India.
Types of GST
The four different types of GST are given below:
1. Central Goods and Services Tax : CGST is charged on the intra state supply of
products and services.
2. State Goods and Services Tax : SGST, like CGST, is charged on the sale of products
or services within a state.
3. Integrated Goods and Services Tax : IGST is charged on inter-state transactions of
products and services.
4. Union Territory Goods and Services Tax : UTGST is levied on the supply of
products and services in any of the Union Territories in the country, viz. Andaman and
Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and
Chandigarh. UTGST is levied along with CGST.
Who is Eligible for GST?
The below mentioned entities and individuals must register for Goods And Services Tax:
 E-commerce aggregators
 Individuals who supply through e-commerce aggregators
 Individuals who pay tax as per the reverse change mechanism
 Agents of input service distributors and suppliers
 Non-Resident individuals who pay tax
 Businesses that have a turnover that is more than the threshold limit
 Individuals who have registered before the GST law was introduced
Registration of GST
Any company that is eligible under GST must register itself in the GST portal created by the
Government of India. The registered entities will get a unique registration number called
GSTIN.
It is mandatory for all Service providers, buyers, and sellers to register. A business that makes
a total income of Rs.20 lakhs and more in a financial year must be required to do GST
registration. It takes 2-6 working days to process.
Know the GSTIN – GST Identification Number
A 15-digit distinctive code that is provided to every taxpayer is the GSTIN. The GSTIN will
be provided based on the state you live at and the PAN. Some of the main uses of GSTIN are
mentioned below:
 Loans can be availed with the help of the number.
 Refunds can be claimed with the GSTIN.
 The verification process is easy with the help of the GSTIN.
 Corrections can be made.
GST Certificate
A GST Certificate is an official document that is issued by the concerned authorities for a
business that has been enrolled under the GST system. Any business with an annual turnover
of Rs.20 lakh or more and certain special businesses are required to be registered under this
system. The GST registration certificate is issued in Form GST REG-06. If you are a registered
taxpayer under this system, you can download the GST Certificate from the official GST Portal.
The certificate is not issued physically. It is available in digital format only. GST Certificate
contains GSTIN, Legal Name, Trade Name, Constitution of Business, Address, Date of
liability, Period of Validity, Types of Registration, Particulars of Approving Authority,
Signature, Details of the Approving GST officer, and Date of issue of a certificate.
GST Returns
A GST Returns is a document that contains information about the income that a taxpayer must
file with the authorities. This information used to compute the taxpayer’s tax liability. Under
the Goods and Services Tax, registered dealers must file their GST returns with details
regarding their purchases, sales, input tax credit, and output GST. Businesses are expected to
file 2 monthly returns as well as an annual return.
GST Rates
The GST Council has assigned GST rates to different goods and services. While some products
can be purchased without any GST, there are others that come at 5% GST, 12% GST, 18%
GST, and 28% GST. GST rates for goods and services have been changed a few time since the
new tax regime was implemented in July 2017.
Name of Item Applicable GST Rate
Mobile Phone 12%
Sanitizer 18%
Gold Jewellery 3%
Two wheeler 28%
Car 28%
How do I calculate GST?
Calculating the amount that needs to be paid as GST when filing your returns can be quite
tedious. Several aspects and factors must be taken into consideration, such as ITC, exempted
supplies, reverse charge, etc. Failure to pay the entire GST amount can see you slapped with
an 18% interest on the shortfall, thereby making it necessary to ensure that you pay the right
amount towards GST.
The GST Calculator makes it simple for taxpayers to calculate the amount that needs to paid
as GST. You will have to enter all the required details such as the month for which you are
calculating GST, the due date for filing returns for the particular month, the actual date on
which the returns are filed, the tax liability for the month, the purchases that attract Reverse
Charge Mechanism, the opening balance of your cash ledger as well as your credit ledger and
the eligible ITC.
Here is an example showing how you can calculate your GST liability:
Particulars Amount
Overall value of interstate sales Rs.20 lakh
Overall value of intrastate sales Rs.25 lakh
Advance received Rs.8 lakh
SGST Rs.25 lakh x 9% = Rs.2.25 lakh
CGST Rs.25 lakh x 9% = Rs.2.25 lakh
IGST
Rs.20 lakh x 18% = Rs.3.6 lakh
Rs.8 lakh x 18% = Rs.1.44 lakh
Total = Rs.5.04 lakh
GST Payments
Currently, the GST must be paid every month. The GSTR-1 and GSTR-3B must be filed. In
the case of refunds, the relevant forms must be submitted as well. GST payments can be made
both online and offline. Once the payment has made, a challan must be generated.
GST E-Way Bill
An electronic document that is generated to show proof of goods movement is the E-Way bill.
You can generate the bill from the GST portal.
Advantages of GST
The following are the advantages of goods and services tax in India
1. Regulation of the unorganized sector
2. E-commerce operators no longer suffer from differential treatment
3. Fewer complications
4. Composition scheme
5. Registration process and filing of returns are simple
6. Higher threshold
7. Elimination of the cascading tax effect
GST Council
Any recommendations that are made to the State and Union Government regarding any issues
that are related to GST is done by the GST Council. The chairman of gst council is Union
Finance Minister of India. The other members of the GST Council are the Union State Minister
of Revenue or Finance of all the states.
GSTN - Goods and Service Tax Network
The GSTN is the Goods and Services Tax Network which is responsible for managing the IT
system concerning the GST Portal. It is a non-profit, non-government organization and is the
database for the official GST Portal.
The current structure of the GST Network can be summed up as follows:
 Central Government – 24.5%
 State Governments and EC – 24.5%
 LIC Housing Finance Ltd. - 11%
 01ICICI Bank, HDFC, NSE Strategic Investment Co., and HDFC Bank – 10% each.
Features of GSTN
The salient features of the GST Network can be listed as follows:
 Keeping the information of all the taxpayers safe and secure.
 Maintaining confidentiality of the taxpayers’ information.
 It is a trusted National Information Utility (NIU).
Functions of GSTN
The main functions of the GST Network or GSTN can be summed up as follows:
 It is responsible for handling the invoices
 It is responsible for handling the registrations
 It is responsible for handling the payments and refunds (if any)
 It is responsible for handling different types of returns.
Chapter 2
Company Profiles
STEEL AUTHORITY OF INDIA LTD. (SAIL)
Steel Authority of India Ltd (SAIL) is the leading steel-making company in India. The
company 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. They are also among the seven Maharatnas of the country's Central
Public Sector Enterprises. The company manufactures and sells a broad range of steel products
including hot and cold rolled sheets and coils galvanised sheets electrical sheets structural
railway products plates bars and rods stainless steel and other alloy steels. They produce 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's wide range of long and
flat steel products are much in demand in the domestic as well as the international market. The
company's International Trade Division ( ITD) in New Delhi- an ISO 9001:2000 accredited
unit of CMO undertakes exports of Mild Steel products and Pig Iron from SAIL's five
integrated steel plants. With technical and managerial expertise and know-how in steel making
gained over four decades the company's Consultancy Division (SAILCON) at New Delhi
offers services and consultancy to clients world-wide.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. Besides they have
their own in-house Centre for Engineering and Technology (CET) Management Training
Institute (MTI) and Safety Organisation at Ranchi. The Government of India owns about 75%
of the company's equity and retains voting control of the company. However SAIL by virtue
of their 'Maharatna' status enjoys significant operational and financial autonomy. Steel
Authority of India Ltd was incorporated on January 24 1973. 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 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 the year 1974 SAIL International Ltd was
incorporated to coordinate the export and import business. In the year 1976 Durgapur Mishra
Ispat Ltd Bhiali Ispat Ltd and Rourkela Ispat Ltd were formed as fully owned subsidiaries of
the company for taking over the running business of Alloy Steels Plants Bhilai steel Plant and
Rourkela Steel Plant. In the year 1978 the company was restructured as an operating company.
In the year 1982 the Salem Steel Plant was inaugurated at Salem in Tamil Nadu. The number
of technological improvement schemes was undertaken during the year 1985 the most notable
thing was the conversion of open-hearth furnace No.10 into twin hearth furnace. A year after
in 1986 all the Phase-I units under the plants' 4 million tonnes expansion programme were
commissioned. A vacuum arc-degassing unit was started in the converter shop and a second
normalizing furnace in plate mill was added. In the year 1988 Visvesvaraya Irons & Steel Co
Ltd became a subsidiary of the company by acquisition of 60% of the shares. Also Bhilai Steel
Plant set up a blast furnace bell-less top charging system. In the year 1990 the company made
a modernisation programme to revamp and technologically upgrade the plant. After the
modernisation the plant slated for a crude steel capacity of 1.9 million TPA. In the year 1992
the company's R&D unit at Ranchi was set up with a view to promote continuous improvement
in critical performance indices of the steel plant in order to increase productivity reduce
production cost and improve quality by production optimization or by introduction of new
technologies. In the year 1993 the company launched the consultancy division with a view to
harness the resources and expertise in steel related areas and market engineering technical
managerial and training services.In the year 1994 two major schemes namely. new sinter plant
III and expansion of oxygen plant II were taken up for implementation. Also C.O. Battery No.
10 was commissioned during the year. At Rourkela steel plant five of phase II modernisation
packages viz. power distribution mobile equipment for RMHS II sizing plant at Satara and
Tarkera intake facilities and make-up water pump houses for Tarkera works were
commissioned. In the year 1995 the company ventured into setting up a power project at Bhilai
by the form joint venture with Larsen & Toubro and CEA USA Inc. In the year 1997 the
modernisation of rail & structural mill (stage 1-phase) was commissioned. In the year 1999 the
company made a marketing tie up with Tyazprom export (TPE) of Russia to sell the entire
range of castings and pig iron produced by Kulti Works a division of Indian Iron and Steel
Company (IISCO). In the year 2000 the company signed a MoU with Egypt's public sector
Metallurgical Industries Corporation (Micor) for the establishment of a modern technical and
management training centre for the Egyptian steel industry. They launched a new millennium
special media campaign to hard sell its wide range of products. The Durgapur Steel Plant of
the company commissioned the computerised integrated production planning and control
(PPC) system that helps in practically every aspect of plant operation and dispatch. The
company Tata Steel and Kalyani Steels Ltd entered into an agreement for creation of an
Internet-based global independent B2B Steel Market place. During the year 2002-03 the
company implemented major projects which includes up gradation of BF-3 with increase in
useful volume and installation of INBA Cast House Slag Granulation Plant at BF-3 at DSP
installation of De-scaling Unit before 950 mm Roughing Stand of Rail & Structural Mill of
BSP and installation of Combined Blowing Technology in Converter No. 2 at SMS-II of BSL.
During the year 2004-05 the company entered into an agreement with GAIL for supply of
natural gas for its integrated steel plants. They signed an MoU with KIOCL for joint
development of some iron ore mines of the company. They received the prestigious SCOPE
Gold Trophy for Excellence and Outstanding Contribution to the Public Sector Management-
Institutional category for the year 2004-05. The company bagged 'Business world-FICCI-
SEDF Corporate Social Responsibility Award - 2006'.During the year 2006-07 the company
undertook a massive modernization and expansion plan with an indicative cost of over Rs.
40000 crore to expand capacity of hot metal to over 25 million tonnes from current level of
14.6 million tonnes. They introduced several new products in the domestic market namely
HCR-EQR TMT for earthquake resistant construction rock bolt TMT for tunnel construction
EN series HR coils for LPG cylinders MC 12 HR coils for chains etc. In addition Bhilai Steel
Plant developed high strength vanadium rails; Durgapur Steel Plant produced S-profile loco
wheels for high-speed locos and Rourkela Steel Plant rolled special plates which were used in
the indigenously built rocket PSLV C-7. During the year 2007-08 the company in association
with Tata Steel Ltd formed a joint venture company to mine coal blocks for securing assured
coking coal supply to meet their increasing production needs. During the year 2008-09 the
company incorporated new joint venture companies namely 'SAIL & MOIL Ferro Alloys Pvt
Ltd.' and 'S&T Mining Co Pvt Ltd'. They signed a Joint Venture Agreement signed with Govt.
of Kerala (GoK) to acquire equity stake in Steel Complex Ltd (SCL) Kozhikode a Govt. of
Kerala Undertaking. Also they singed an MoU with Shipping Corporation of India (SCI) for
proposal for incorporation of a joint venture company for carrying out transportation of
imported coking coal & dry bulk shipping trade.During the year the company signed an MoU
with Larsen & Toubro Ltd (L&T) for setting up captive / independent power plants(s) under
joint venture using super-critical technology alongwith opportunities to own captive thermal
coal blocks. They entered into an MoU with M/s. Rajasthan State Mines & Minerals Ltd.
(RSMML) - A Govt. of Rajasthan Undertaking to ensure supply of Low Silica Limestone for
a period of 10 years. Also they entered into an MoU with Bharat Earth Movers Ltd (BEML)
Bangalore - a Ministry of Defence Undertaking for a period of 3 years for supply of Heavy
Earth Moving Equipment.During the year 2009-10 the company added two warehouses and
two customer contact offices to their distribution network. With this the company's marketing
network has expanded to 37 branch sales offices (BSOs) 26 customer contact offices (CCOs)
and 67 Warehouses. The company also expanded their dealer network by appointing 700
dealers during the year. In July 28 2009 Bharat Refractories Ltd was amalgamated with the
company with effect from April 1 2007. After amalgamation erstwhile BRL became a unit of
SAIL and renamed as SAIL Refractory Unit (SRU). Also the company acquired the assets of
Malvika Steel Limited at Jagdishpur in Uttar Pradesh during the year. In August 2010 the
company started hot trials at Salem Steel Plant (SSP) after expansion. In May 19 2010 the
Government of India accorded the status of 'Maharatna' to the company. During the year 2010-
11 all major facilities under expansion plan of Salem Steel Plant completed on schedule in
September 2010 and are under stabilisation for regular production. In July 2010 Blast Furnace
unit 2 at Bokaro Steel Plant was upgraded & commissioned. They completed upgradation of
Plate Mill at Bhilai Steel Plant installation of 700 tonne per day Oxygen Plant & simultaneous
blowing of converters in SMS-II at Rourkela Steel Plant and rebuilding of Coke Oven
Battery#10 at IISCO Steel Plant Burnpur.During the year Maharashtra Elecktosmelt Ltd
(MEL) was amalgamated with the company with effect from April 1 2010 MEL became a unit
of the company and it was renamed as Chandrapur Ferro Alloy Plant. In June 2010 Cabinet
Committee on Economic Affairs (CCEA) approved transfer of Salem Refractory Unit of Burn
Standard Company Ltd to the company.
JSW STEEL
JSW is part of $10 billion OP Jindal Group. It has grown to $5 billion in little over a decade
and has presence across various sectors – Steel, Energy, Minerals, Port & Infrastructure,
Cement, Aluminium and IT. JSW Steel, the flagship company of the JSW Group, is today an
integrated steel manufacturer. JSW Steel is the largest private sector steel manufacturer in
terms of installed capacity.
The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired
Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals,
who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. (JISCO).
In 1994, in order to achieve the vision of moving up the value chain and building a strong,
resilient company, Jindal Vijayanagar Steel (JVSL) was setup, with its plant located at
Toranagallu in the Bellary–Hospet area of Karnataka, the heart of the high–grade iron ore belt
and spread over 3,700 acres of land. It is just 340 kms from Bangalore, and is well connected
with both the Goa and Chennai ports. In 2005, JISCO and JVSL merged to form JSW Steel.
JSW Steel is one of the lowest cost steel producers in the world. It has established a strong
presence in the global value–added steel segment with the acquisition of steel mill in US and a
service center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in
Georgia. The Company has also tied up with JFE Steel Corp, Japan for manufacturing the high
grade automotive steel. JSW Steel has acquired a majority stake in Ispat Industries Ltd. The
Company has also acquired mining assets in Chile, USA and Mozambique.Today JSW Steel
has plants in six locations in India – Vijayanagar in Karnataka, Salem in Tamil Nadu, and
Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra.
Its global operations include a plate and pipe mill in the US. In order to securitise resources,
the company has acquired mining assets in Chile, USA and Mozambique.
Manufacturing facilities JSW Steel's manufacturing units are located in Bellary District
near Bangalore, near Mumbai and Tamil Nadu.
Its manufacturing facilities, Vijayanagar Works in Bellary district is the first greenfield project
in the world to have Corex technology to produce hot metal.
JSW Steel’s Vasind & Tarapur Works, located near Mumbai, is country–region India
1country–region’s biggest producer and largest exporter of galvanized steel. The total capacity
of this plant is 0.9 MTPA of galvanised, Galvume and colour coated cold rolled products.
The company’s Tamil Nadu plant, Salem Works manufactures pig iron, steel, billet and rolled
steel products with 1 MTPA of production capacity.
JSW Steel is country–region on India country–region’s third largest steelmaker that has
received various certifications such as ISO: 9001 for Quality Management System, ISO: 14001
for Environment Management System and OHSAS: 18001 for Occupational Health and Safety
Management System.
Products of the company
 Hot Rolled Coils & Sheets
 Hot Rolled (HRPO & HRSPO) Coils & Sheets
 Cold Rolled Closed Annealed Coils & Sheets
 Galvanised Coils & Sheets
 JSW Vishwas G.C. Sheets
 JSW Pragati Colour Coated Sheets
 Pre–Painted Galvanised Coils & Sheets
 Pre–Painted Profiles
 JSW TMT Plus Bars
 Wire Rods & Special Steel – RCS, Rounds & Spring Steel Flats
Awards
JSW Steel received CII–ITC Sustainability Award for Significant Achievement in Economic,
Environment and Social Performance.
It was honoured with CII–Exim Bank Award for significant Achievement towards Business
Excellence
The company received Gold Award in Metal and Mining Sector: for Outstanding Achievement
in Safety Management by Greentech Foundation.
Chapter 3
Companies Tax rates before GST
STEEL AUTHORITY OF INDIA LTD. (SAIL)
During the year, India was the only major steel consuming market in the world which
exhibited a growth. However, due to the oversupply scenario globally, there was an
unprecedented surge in imports which increased by 27% over 2014-15 and by 123% over
2013-14. In fact, the increase in net imports in the year was more than the increase in
domestic steel consumption. These imports, often at predatory prices, forced significant price
cuts by the Indian steel producers, leading to severe margin squeeze.
In this year we shall be completing the balance modernization and expansion projects in our
Bhilai Steel Plant. The facilities include a state of the art Universal Rail Mill capable of
producing the longest single piece rail in the world. Commissioning of this mill would
provide SAIL with the capability of producing high quality rails to meet the requirements of
the Indian Railways, Metro projects, dedicated freight & passenger corridors as well as the
exports market.
General Description of Defined Benefit Schemes:
 Gratuity: Payable on separation @15 days’ pay for each completed year of service to
eligible employees who render continuous service of 5 years or more. Maximum
amount of `10 lakhs for executives & non-executives joined on or after 1st July, 2014
and without any monetary limit for other non-executives, has been considered for
actuarial valuation.
 Leave Encashment: Payable on superannuation to eligible employees who have
accumulated earned and half pay leave, subject to maximum limit of 300 days
combined for earned leave and half pay leave. Encashment of accumulated earned
leave allowed up to 30 days once in the financial year up to 18th November, 2015 and
stopped thereafter.
 Provident Fund: 12% of Basic Pay Plus Dearness Allowance, contributed to the
Provident Fund Trusts by the company. Post-Retirement Medical Benefits: Available
to retired employees at company's hospitals and/or under the health insurance policy.
 Post Retirement Settlement Benefits: Payable to retiring employees for settlement at
their home town.
 Employees' Family Benefit Scheme: Monthly payments to disabled separated
employees / legal heirs of deceased employees in lieu of prescribed deposit till the
notional date of superannuation.
 Long Term Service Award: Payable in kind on rendering minimum 25 years of
service and also on superannuation.
SAIL ansd jsw steel gst report .docx
Brief Description of Provisions :
 Mines afforestation costs – Payable on renewal (including deemed renewal)/forest
clearance of mining leases to Government authorities, towards afforestation cost at
mines for use of forest land for mining purposes.
 Mines closure costs – Estimated liability towards closure of mines, to be incurred at
the time of cessation of mining activities.
 Overburden backlog removal costs – To be incurred towards removal of overburden
backlog at mines over the future years.
JSW STEEL
The global economic growth remained largely subdued at 3.1%in CY2015as against 3.4% in
CY2014. The emerging markets anddeveloping economies’ growth which still accounts for
over 70%of global growth, declined for the fifth consecutive year and the advanced
economies witnessed a modest but uneven recovery. However, the global economy saw a
sizeable leg down in the last quarter of CY2015 – in both advanced and emerging markets and
developing economies. During the year, the global economic.
INDIA
India’s GDP grew by 7.6% in FY2016, registering a stellar performance in a world battered
by sluggish growth as well as turbulent financial and commodity markets.
The Indian economy, however, also faced major headwinds during the year in the form of : a)
slow agricultural growth due to two consecutive years of poor monsoons, b) disappointing
manufacturing output owing to weak demand and low commodity prices, c) sharp contraction
in exports due to weakglobal demand and low commodity prices.
Relevant facts about global steel: Performance in CY 2015over CY 2014
 Capacity: 2384 MnT grew by 1.4% (2351MnT)
 Production: 1621 MnT de-grew by (2.9%) (1670 MnT)
 Consumption: 1500 MnT de-grew by (3%) (1547 MnT)
Gross turnover in FY 2015-16 declined by 19% from
`49,658 crores to `40,354 crores.
Interest Cost 2,687 2,909
Profit before Exceptional Items 794 3,645
from `49,658 crores to `40,354 crores mainly due to a decline in realisations, inspite of
increase of 1 lacs tonnes of volume of sales. The operating EBITDA for the year was at `
5,723 crores, lower by 35% over last year, and EBIDTA margin stood at 15.6%. EBIDTA is
lower due to reduction in sales realisation in line with international prices and import of
steel products at predatory prices into India. However lower prices of Iron ore and Coal and
operational efficiencies has mitigated the impact of lower realisation to some extent.
The Company registered a net loss after tax of ` 3,498 crores, primarily driven by provision
for diminution in value of investments and loans and advances in 3Q FY 2016.
The Company’s total net debt gearing was at `1.41 (vis-à-vis
` 1.02, as on March 31, 2015). The weighted average interest cost of debt was at 7.50% (vis-
à-vis 7.75% as on March 31, 2015).
Revenue Analysis
Trade receivables (` Crores)
2015-16 2014-15 Change Change%
Trade 2,511 2,027 484 24%
Receivables
Chapter 4
Companies Tax rates After GST
SAIL
The Board of Directors has the pleasure of presenting the 49th Annual Report of Steel
Authority of India Limited (SAIL, the Company) together with the Audited Standalone and
Consolidated Financial Statements for the Financial Year ended 31st March, 2021.
A. FINANCIAL REVIEW
Financial Results ('' crore)
Sl.
N
o. Standalone Year ended
Particulars
31st March 2021
Audited
31st March 2020
Audited
1 Income
(a) Revenue from operations 69110.02 61660.55
(b) Other income 1011.69 985.22
Total Income 70121.71 62645.77
2 Expenses
a) Cost of materials consumed 23136.17 29212.87
b) Changes in inventories of finished goods, work-i
n-progress and by-products 4268.58 (5555.82)
c) Employee benefits expense 10445.94 8781.32
d) Finance costs 2817.14 3486.76
e) Depreciation and Amortisation expenses 4102.00 3755.05
f) Other expenses 18531.28 19023.17
Total Expenses 63301.11 58703.35
3 Profit before Exceptional items and Tax 6820.60 3942.42
Add / (Less): Exceptional items 58.43 (771.76)
4 Profit before Tax 6879.03 3170.66
Less: Tax expense
Current tax 12.05 224.14
Deferred tax (refer note 8) 3016.96 924.98
Total Tax expense 3029.01 1149.12
5 Net Profit for the period 3850.02 2021.54
power rates, interest charges etc. and higher dividend income, foreign exchange gain and
reversal of Covid-19 discount on sub grade iron ore fines.
Your Company continued its thrust on judicious fund management with timely repayment of
loans including interest, advance planning and action for future fund raising, etc. to meet our
growth objectives. There has been significant reduction in the borrowings of the company
during the FY 2020-21due to improved cash flows because of increasing steel prices and
demand in India. The Company had borrowings of ''37,677 crore as on 31st March 2021 vis-
a-vis ''54,127 crore as on 31st March 2020 in line with INDAS. The Company has hedged the
foreign currency risk on Buyers'' Credit and External Commercial Borrowings. The debt
equity ratio of the Company as on 31st March, 2021 decreased to 0.87:1 from 1.36:1 as on
31st March, 2020 primarily due to decrease in borrowings during the year. The net worth of
the Company increased to ''43,495 crore as on 31st March 2021 from ''39,777 crore as on
31st March 2020.
An Interim Dividend of 10% i.e. Re.1/- per equity share was paid during the month of
January, 2021. The Board of Directors of your Company has further recommended a Final
Dividend of 18%, subject to approval of Members in the ensuing Annual General Meeting of
the Company, i.e. total dividend for FY 2020-21 being 28% on equity share capital of the
Company. Further, no amount has been transferred to general reserve during the year under
review.
M/s. CARE Ratings, M/s. India Ratings and M/s Brickwork Ratings, RBI approved Credit
Rating Agencies, assigned ‘CARE AA Outlook: Stable'', ‘India Ratings AA- Outlook:
Negative'' and ‘BWR AA Outlook: Negative'' ratings respectively for SAILs long-term
borrowing programme.
Steel Authority of India Limited New Delhi
The Board of Directors has the pleasure of presenting the 49 Annual Report of Steel
Authority of India Limited (SAIL the Company) together with the Audited Standalone and
Consolidated Financial Statements for the Financial Year ended 31 March2021.
(Rs.in crore)
STANDALONE YEAR
ENDED
PARTICULARS
31 MARCH
2021
31 MARCH
2020
AUDITED AUDITED
1 INCOME
(A) REVENUE FROM OPERATIONS 69110.02 61660.55
(B) OTHER INCOME 1011.69 985.22
TOTAL INCOME 70121.71 62645.77
2 EXPENSES
A) COST OF MATERIALS CONSUMED 23136.17 29212.87
B) CHANGES IN INVENTORIES OF FINISHED GOODS
WORK-IN-PROGRESS AND BY-PRODUCTS
4268.58 (5555.82)
C) EMPLOYEE BENEFITS EXPENSE 10445.94 8781.32
D) FINANCE COSTS 2817.14 3486.76
E) DEPRECIATION AND AMORTISATION EXPENSES 4102.00 3755.05
F) OTHER EXPENSES 18531.28 19023.17
TOTAL EXPENSES 63301.11 58703.35
3 PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 6820.60 3942.42
ADD / (LESS): EXCEPTIONAL ITEMS 58.43 (771.76)
4 PROFIT BEFORE TAX 6879.03 3170.66
LESS: TAX EXPENSE
CURRENT TAX 12.05 224.14
DEFERRED TAX (REFER NOTE 8) 3016.96 924.98
TOTAL TAX EXPENSE 3029.01 1149.12
5 NET PROFIT FOR THE PERIOD 3850.02 2021.54
JSW STEEL
The last 15 months have been perhaps the most eventful in living memory. The COVID-19
pandemic has impacted the lives and livelihoods of people across the world in what might be
one of the most significant black swan events of our time. However, through these
unpredictable times, we have witnessed remarkable scientific progress, multilateral
cooperation, government responsiveness, and rapid global transformation – many of which
will impact the way we live and interact with each other. Several countries, including India,
are now emerging from the throes of a brutal second wave of COVID-19. I am hopeful that
the worst is behind us and that better days are ahead.
We are committed to a circular economy and it is with that focus that we strive to
consistently optimise our water, waste, carbon and energy footprint. For example, we have
resolved to improve net carbon emission intensity well beyond India’s Nationally Determined
Contributions as per the Paris Accord commitments, with an aim of achieving more than 41%
reduction by 2030 (from the base year of 2005).
Emerging Market and Developing Economies (EMDEs) Following a 2.2% de-growth in CY
2020, EMDEs are expected to witness a y-o-y growth of 6.7% in CY 2021, indicating a V-
shaped recovery. The trend lines on forecast also align with those of the AMEs.
Percentage of GST charged on each product.
Wire Rods Wire rod are manufactured at JSW Vijayanagar and Salem comprising 5% of
product portfolio with an overall sales growth of 13% y-o-y
Chapter 5
Summary, Findings and Conclusion
Manufacturing facilities JSW Steel's manufacturing units are located in Bellary
District near Bangalore, near Mumbai and Tamil Nadu. JSW STEEL The global
economic growth remained largely subdued at 3.1% in CY2015 as against 3.4%
in CY2014. The Company’s total net debt gearing was at ` 1.41 (vis-à-vis ` 1.02,
as on March 31, 2015). Post-Retirement Medical Benefits: Available to retired
employees at company's hospitals and/or under the health insurance policy. In
this year we shall be completing the balance modernization and expansion
projects in our Bhilai Steel Plant. With this the company's marketing network
has expanded to 37 branch sales offices (BSOs) 26 customer contact offices
(CCOs) and 67 Warehouses. In the year 1982 the Salem Steel Plant was
inaugurated at Salem in Tamil Nadu. The Group set up its first steel plant in
1982 at Vasind near Mumbai. In July 2010 Blast Furnace unit 2 at Bokaro Steel
Plant was upgraded & commissioned. Also Bhilai Steel Plant set up a blast
furnace bell-less top charging system. JSW STEEL JSW is part of $10 billion OP
Jindal Group. This information used to compute the taxpayer’s tax liability. At
Rourkela steel plant five of phase II modernisation packages viz. JSW Steel has
acquired a majority stake in Ispat Industries Ltd. In 2005, JISCO and JVSL
merged to form JSW Steel. During the year 2010-11 all major facilities under
expansion plan of Salem Steel Plant completed on schedule in September 2010
and are under stabilisation for regular production. INDIA India’s GDP grew by
7.6% in FY2016, registering a stellar performance in a world battered by
sluggish growth as well as turbulent financial and commodity markets. JSW
Steel has also formed a joint venture for setting up a steel plant in Georgia.
BIBLOGRAPHY
 https://www.google.com/search?q=sail+annual+report+2020-
21&oq=sail+annual+report+20&aqs=chrome.0.0i19j69i57j0i19l2j0i19i22i30.14205j0
j15&sourceid=chrome&ie=UTF-8
 https://www.business-standard.com/company/s-a-i-l-2299/financials-balance-sheet
 https://www.moneycontrol.com/annual-report/steelauthorityindia/directors-report/SAI
 https://sail.co.in/en/investors-relation/financials
 https://www.jsw.in/sites/default/files/assets/downloads/steel/IR/Financial%20Perform
ance/Annual%20Reports%20Steel/20-
21/JSW%20Steel%20Annual%20Report%202020-21.pdf
 https://www.jsw.in/sites/default/files/assets/downloads/steel/IR/Financial%20Perform
ance/Annual%20Reports%20Steel/jsw-steel-20-21/fy-2020-21-highlights.html
 https://www.jsw.in/sites/default/files/assets/downloads/steel/IR/Financial%20Perform
ance/Annual%20Reports%20Steel/jsw-steel-20-21/index.html

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SAIL ansd jsw steel gst report .docx

  • 1. A REPORT ON SAIL AND JSW STEEEL BY Enrollment Number: IFHE for Higher Education and Foundation ICFAI BUSINESS SCHOOL(IBS), Hyderabad
  • 2. A REPORT ON SAIL AND JSW STEEL BY The report was written to A report submitted in partial fulfilment of the requirements of BBA Program of IBS Hyderabad. DATE OF SUBMISSION:
  • 3. TABLE OF CONTENTS Chapter 1: Introduction Chapter 2:Company Profiles. Chapter 3: Companies Tax rates before GST Chapter 4: Companies Tax rates After GST implementation Chapter 5: Summary of Findings and Conclusions Bibliography
  • 4. Chapter 1 Introduction What is GST & How it works? GST stands for Goods and Services Tax. It is an Indirect tax which introduced to replacing a host of other Indirect taxes such as value added tax, service tax, purchase tax, excise duty, and so on. GST levied on the supply of certain goods and services in India. It is one tax that is applicable all over India. How will GST works:  Manufacturer: The manufacturer will have to pay GST on the raw material that is purchased and the value that has been added to make the product.  Service Provider: Here, the service provider will have to pay GST on the amount that is paid for the product and the value that has been added to it. However, the tax that has been paid by the manufacturer can be reduced from the overall GST that must be paid.  Retailer: The retailer will need to pay GST on the product that has been purchased from the distributor as well as the margin that has been added. However, the tax that has been paid by the retailer can be reduced from the overall GST that must be paid.  Consumer: GST must be paid on the product that has been purchased. History Of GST On July 1st 2017, the Goods and Services Tax implemented in India. But, the process of implementing the new tax regime commenced a long time ago. In 2000, Atal Bihari Vajpayee, then Prime Minister of India, set up a committee to draft the GST law. In 2004, a task force concluded that the new tax structure should put in place to enhance the tax regime at the time. In 2006, Finance Minister proposed the introduction of GST from 1st April 2010 and in 2011 the Constitution Amendment Bill passed to enable the introduction of the GST law. In 2012, the Standing Committee started discussions about GST, and tabled its report on GST a year later. In 2014, the new Finance Minister at the time, Arun Jaitley, reintroduced the GST bill in Parliament and passed the bill in Lok Sabha in 2015. Yet, the implementation of the law delayed as it was not passed in Rajya Sabha.
  • 5. GST went live in 2016, and the amended model GST law passed in both the house. The President of India also gave assent. In 2017 the passing of 4 supplementary GST Bills in Lok Sabha as well as the approval of the same by the Cabinet. Rajya Sabha then passed 4 supplementary GST Bills and the new tax regime implemented on 1st July 2017. Tax Laws Before the Implementation of GST  The Centre and the State used to collect tax separately. Depending on the state, the tax regimes were different.  Even though import tax was levied on one individual, the burden was levied on another individual. In the cases of direct tax, the taxpayer must pay the tax.  Prior to the introduction of GST, direct and indirect taxes were present in India. Types of GST The four different types of GST are given below: 1. Central Goods and Services Tax : CGST is charged on the intra state supply of products and services. 2. State Goods and Services Tax : SGST, like CGST, is charged on the sale of products or services within a state. 3. Integrated Goods and Services Tax : IGST is charged on inter-state transactions of products and services. 4. Union Territory Goods and Services Tax : UTGST is levied on the supply of products and services in any of the Union Territories in the country, viz. Andaman and Nicobar Islands, Daman and Diu, Dadra and Nagar Haveli, Lakshadweep, and Chandigarh. UTGST is levied along with CGST. Who is Eligible for GST? The below mentioned entities and individuals must register for Goods And Services Tax:  E-commerce aggregators  Individuals who supply through e-commerce aggregators  Individuals who pay tax as per the reverse change mechanism  Agents of input service distributors and suppliers
  • 6.  Non-Resident individuals who pay tax  Businesses that have a turnover that is more than the threshold limit  Individuals who have registered before the GST law was introduced Registration of GST Any company that is eligible under GST must register itself in the GST portal created by the Government of India. The registered entities will get a unique registration number called GSTIN. It is mandatory for all Service providers, buyers, and sellers to register. A business that makes a total income of Rs.20 lakhs and more in a financial year must be required to do GST registration. It takes 2-6 working days to process. Know the GSTIN – GST Identification Number A 15-digit distinctive code that is provided to every taxpayer is the GSTIN. The GSTIN will be provided based on the state you live at and the PAN. Some of the main uses of GSTIN are mentioned below:  Loans can be availed with the help of the number.  Refunds can be claimed with the GSTIN.  The verification process is easy with the help of the GSTIN.  Corrections can be made. GST Certificate A GST Certificate is an official document that is issued by the concerned authorities for a business that has been enrolled under the GST system. Any business with an annual turnover of Rs.20 lakh or more and certain special businesses are required to be registered under this system. The GST registration certificate is issued in Form GST REG-06. If you are a registered taxpayer under this system, you can download the GST Certificate from the official GST Portal. The certificate is not issued physically. It is available in digital format only. GST Certificate contains GSTIN, Legal Name, Trade Name, Constitution of Business, Address, Date of liability, Period of Validity, Types of Registration, Particulars of Approving Authority, Signature, Details of the Approving GST officer, and Date of issue of a certificate.
  • 7. GST Returns A GST Returns is a document that contains information about the income that a taxpayer must file with the authorities. This information used to compute the taxpayer’s tax liability. Under the Goods and Services Tax, registered dealers must file their GST returns with details regarding their purchases, sales, input tax credit, and output GST. Businesses are expected to file 2 monthly returns as well as an annual return. GST Rates The GST Council has assigned GST rates to different goods and services. While some products can be purchased without any GST, there are others that come at 5% GST, 12% GST, 18% GST, and 28% GST. GST rates for goods and services have been changed a few time since the new tax regime was implemented in July 2017. Name of Item Applicable GST Rate Mobile Phone 12% Sanitizer 18% Gold Jewellery 3% Two wheeler 28% Car 28% How do I calculate GST? Calculating the amount that needs to be paid as GST when filing your returns can be quite tedious. Several aspects and factors must be taken into consideration, such as ITC, exempted supplies, reverse charge, etc. Failure to pay the entire GST amount can see you slapped with
  • 8. an 18% interest on the shortfall, thereby making it necessary to ensure that you pay the right amount towards GST. The GST Calculator makes it simple for taxpayers to calculate the amount that needs to paid as GST. You will have to enter all the required details such as the month for which you are calculating GST, the due date for filing returns for the particular month, the actual date on which the returns are filed, the tax liability for the month, the purchases that attract Reverse Charge Mechanism, the opening balance of your cash ledger as well as your credit ledger and the eligible ITC. Here is an example showing how you can calculate your GST liability: Particulars Amount Overall value of interstate sales Rs.20 lakh Overall value of intrastate sales Rs.25 lakh Advance received Rs.8 lakh SGST Rs.25 lakh x 9% = Rs.2.25 lakh CGST Rs.25 lakh x 9% = Rs.2.25 lakh IGST Rs.20 lakh x 18% = Rs.3.6 lakh Rs.8 lakh x 18% = Rs.1.44 lakh Total = Rs.5.04 lakh GST Payments Currently, the GST must be paid every month. The GSTR-1 and GSTR-3B must be filed. In the case of refunds, the relevant forms must be submitted as well. GST payments can be made both online and offline. Once the payment has made, a challan must be generated.
  • 9. GST E-Way Bill An electronic document that is generated to show proof of goods movement is the E-Way bill. You can generate the bill from the GST portal. Advantages of GST The following are the advantages of goods and services tax in India 1. Regulation of the unorganized sector 2. E-commerce operators no longer suffer from differential treatment 3. Fewer complications 4. Composition scheme 5. Registration process and filing of returns are simple 6. Higher threshold 7. Elimination of the cascading tax effect GST Council Any recommendations that are made to the State and Union Government regarding any issues that are related to GST is done by the GST Council. The chairman of gst council is Union Finance Minister of India. The other members of the GST Council are the Union State Minister of Revenue or Finance of all the states. GSTN - Goods and Service Tax Network The GSTN is the Goods and Services Tax Network which is responsible for managing the IT system concerning the GST Portal. It is a non-profit, non-government organization and is the database for the official GST Portal. The current structure of the GST Network can be summed up as follows:  Central Government – 24.5%  State Governments and EC – 24.5%  LIC Housing Finance Ltd. - 11%  01ICICI Bank, HDFC, NSE Strategic Investment Co., and HDFC Bank – 10% each.
  • 10. Features of GSTN The salient features of the GST Network can be listed as follows:  Keeping the information of all the taxpayers safe and secure.  Maintaining confidentiality of the taxpayers’ information.  It is a trusted National Information Utility (NIU). Functions of GSTN The main functions of the GST Network or GSTN can be summed up as follows:  It is responsible for handling the invoices  It is responsible for handling the registrations  It is responsible for handling the payments and refunds (if any)  It is responsible for handling different types of returns.
  • 11. Chapter 2 Company Profiles STEEL AUTHORITY OF INDIA LTD. (SAIL) Steel Authority of India Ltd (SAIL) is the leading steel-making company in India. The company 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. They are also among the seven Maharatnas of the country's Central Public Sector Enterprises. The company manufactures and sells a broad range of steel products including hot and cold rolled sheets and coils galvanised sheets electrical sheets structural railway products plates bars and rods stainless steel and other alloy steels. They produce 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's wide range of long and flat steel products are much in demand in the domestic as well as the international market. The company's International Trade Division ( ITD) in New Delhi- an ISO 9001:2000 accredited unit of CMO undertakes exports of Mild Steel products and Pig Iron from SAIL's five integrated steel plants. With technical and managerial expertise and know-how in steel making gained over four decades the company's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.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. Besides they have their own in-house Centre for Engineering and Technology (CET) Management Training Institute (MTI) and Safety Organisation at Ranchi. The Government of India owns about 75% of the company's equity and retains voting control of the company. However SAIL by virtue of their 'Maharatna' status enjoys significant operational and financial autonomy. Steel Authority of India Ltd was incorporated on January 24 1973. 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
  • 12. the formation of Steel Authority of India Ltd. The company 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 the year 1974 SAIL International Ltd was incorporated to coordinate the export and import business. In the year 1976 Durgapur Mishra Ispat Ltd Bhiali Ispat Ltd and Rourkela Ispat Ltd were formed as fully owned subsidiaries of the company for taking over the running business of Alloy Steels Plants Bhilai steel Plant and Rourkela Steel Plant. In the year 1978 the company was restructured as an operating company. In the year 1982 the Salem Steel Plant was inaugurated at Salem in Tamil Nadu. The number of technological improvement schemes was undertaken during the year 1985 the most notable thing was the conversion of open-hearth furnace No.10 into twin hearth furnace. A year after in 1986 all the Phase-I units under the plants' 4 million tonnes expansion programme were commissioned. A vacuum arc-degassing unit was started in the converter shop and a second normalizing furnace in plate mill was added. In the year 1988 Visvesvaraya Irons & Steel Co Ltd became a subsidiary of the company by acquisition of 60% of the shares. Also Bhilai Steel Plant set up a blast furnace bell-less top charging system. In the year 1990 the company made a modernisation programme to revamp and technologically upgrade the plant. After the modernisation the plant slated for a crude steel capacity of 1.9 million TPA. In the year 1992 the company's R&D unit at Ranchi was set up with a view to promote continuous improvement in critical performance indices of the steel plant in order to increase productivity reduce production cost and improve quality by production optimization or by introduction of new technologies. In the year 1993 the company launched the consultancy division with a view to harness the resources and expertise in steel related areas and market engineering technical managerial and training services.In the year 1994 two major schemes namely. new sinter plant III and expansion of oxygen plant II were taken up for implementation. Also C.O. Battery No. 10 was commissioned during the year. At Rourkela steel plant five of phase II modernisation packages viz. power distribution mobile equipment for RMHS II sizing plant at Satara and Tarkera intake facilities and make-up water pump houses for Tarkera works were commissioned. In the year 1995 the company ventured into setting up a power project at Bhilai by the form joint venture with Larsen & Toubro and CEA USA Inc. In the year 1997 the modernisation of rail & structural mill (stage 1-phase) was commissioned. In the year 1999 the company made a marketing tie up with Tyazprom export (TPE) of Russia to sell the entire range of castings and pig iron produced by Kulti Works a division of Indian Iron and Steel
  • 13. Company (IISCO). In the year 2000 the company signed a MoU with Egypt's public sector Metallurgical Industries Corporation (Micor) for the establishment of a modern technical and management training centre for the Egyptian steel industry. They launched a new millennium special media campaign to hard sell its wide range of products. The Durgapur Steel Plant of the company commissioned the computerised integrated production planning and control (PPC) system that helps in practically every aspect of plant operation and dispatch. The company Tata Steel and Kalyani Steels Ltd entered into an agreement for creation of an Internet-based global independent B2B Steel Market place. During the year 2002-03 the company implemented major projects which includes up gradation of BF-3 with increase in useful volume and installation of INBA Cast House Slag Granulation Plant at BF-3 at DSP installation of De-scaling Unit before 950 mm Roughing Stand of Rail & Structural Mill of BSP and installation of Combined Blowing Technology in Converter No. 2 at SMS-II of BSL. During the year 2004-05 the company entered into an agreement with GAIL for supply of natural gas for its integrated steel plants. They signed an MoU with KIOCL for joint development of some iron ore mines of the company. They received the prestigious SCOPE Gold Trophy for Excellence and Outstanding Contribution to the Public Sector Management- Institutional category for the year 2004-05. The company bagged 'Business world-FICCI- SEDF Corporate Social Responsibility Award - 2006'.During the year 2006-07 the company undertook a massive modernization and expansion plan with an indicative cost of over Rs. 40000 crore to expand capacity of hot metal to over 25 million tonnes from current level of 14.6 million tonnes. They introduced several new products in the domestic market namely HCR-EQR TMT for earthquake resistant construction rock bolt TMT for tunnel construction EN series HR coils for LPG cylinders MC 12 HR coils for chains etc. In addition Bhilai Steel Plant developed high strength vanadium rails; Durgapur Steel Plant produced S-profile loco wheels for high-speed locos and Rourkela Steel Plant rolled special plates which were used in the indigenously built rocket PSLV C-7. During the year 2007-08 the company in association with Tata Steel Ltd formed a joint venture company to mine coal blocks for securing assured coking coal supply to meet their increasing production needs. During the year 2008-09 the company incorporated new joint venture companies namely 'SAIL & MOIL Ferro Alloys Pvt Ltd.' and 'S&T Mining Co Pvt Ltd'. They signed a Joint Venture Agreement signed with Govt. of Kerala (GoK) to acquire equity stake in Steel Complex Ltd (SCL) Kozhikode a Govt. of Kerala Undertaking. Also they singed an MoU with Shipping Corporation of India (SCI) for
  • 14. proposal for incorporation of a joint venture company for carrying out transportation of imported coking coal & dry bulk shipping trade.During the year the company signed an MoU with Larsen & Toubro Ltd (L&T) for setting up captive / independent power plants(s) under joint venture using super-critical technology alongwith opportunities to own captive thermal coal blocks. They entered into an MoU with M/s. Rajasthan State Mines & Minerals Ltd. (RSMML) - A Govt. of Rajasthan Undertaking to ensure supply of Low Silica Limestone for a period of 10 years. Also they entered into an MoU with Bharat Earth Movers Ltd (BEML) Bangalore - a Ministry of Defence Undertaking for a period of 3 years for supply of Heavy Earth Moving Equipment.During the year 2009-10 the company added two warehouses and two customer contact offices to their distribution network. With this the company's marketing network has expanded to 37 branch sales offices (BSOs) 26 customer contact offices (CCOs) and 67 Warehouses. The company also expanded their dealer network by appointing 700 dealers during the year. In July 28 2009 Bharat Refractories Ltd was amalgamated with the company with effect from April 1 2007. After amalgamation erstwhile BRL became a unit of SAIL and renamed as SAIL Refractory Unit (SRU). Also the company acquired the assets of Malvika Steel Limited at Jagdishpur in Uttar Pradesh during the year. In August 2010 the company started hot trials at Salem Steel Plant (SSP) after expansion. In May 19 2010 the Government of India accorded the status of 'Maharatna' to the company. During the year 2010- 11 all major facilities under expansion plan of Salem Steel Plant completed on schedule in September 2010 and are under stabilisation for regular production. In July 2010 Blast Furnace unit 2 at Bokaro Steel Plant was upgraded & commissioned. They completed upgradation of Plate Mill at Bhilai Steel Plant installation of 700 tonne per day Oxygen Plant & simultaneous blowing of converters in SMS-II at Rourkela Steel Plant and rebuilding of Coke Oven Battery#10 at IISCO Steel Plant Burnpur.During the year Maharashtra Elecktosmelt Ltd (MEL) was amalgamated with the company with effect from April 1 2010 MEL became a unit of the company and it was renamed as Chandrapur Ferro Alloy Plant. In June 2010 Cabinet Committee on Economic Affairs (CCEA) approved transfer of Salem Refractory Unit of Burn Standard Company Ltd to the company. JSW STEEL
  • 15. JSW is part of $10 billion OP Jindal Group. It has grown to $5 billion in little over a decade and has presence across various sectors – Steel, Energy, Minerals, Port & Infrastructure, Cement, Aluminium and IT. JSW Steel, the flagship company of the JSW Group, is today an integrated steel manufacturer. JSW Steel is the largest private sector steel manufacturer in terms of installed capacity. The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. (JISCO). In 1994, in order to achieve the vision of moving up the value chain and building a strong, resilient company, Jindal Vijayanagar Steel (JVSL) was setup, with its plant located at Toranagallu in the Bellary–Hospet area of Karnataka, the heart of the high–grade iron ore belt and spread over 3,700 acres of land. It is just 340 kms from Bangalore, and is well connected with both the Goa and Chennai ports. In 2005, JISCO and JVSL merged to form JSW Steel. JSW Steel is one of the lowest cost steel producers in the world. It has established a strong presence in the global value–added steel segment with the acquisition of steel mill in US and a service center in UK. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. The Company has also tied up with JFE Steel Corp, Japan for manufacturing the high grade automotive steel. JSW Steel has acquired a majority stake in Ispat Industries Ltd. The Company has also acquired mining assets in Chile, USA and Mozambique.Today JSW Steel has plants in six locations in India – Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra. Its global operations include a plate and pipe mill in the US. In order to securitise resources, the company has acquired mining assets in Chile, USA and Mozambique. Manufacturing facilities JSW Steel's manufacturing units are located in Bellary District near Bangalore, near Mumbai and Tamil Nadu. Its manufacturing facilities, Vijayanagar Works in Bellary district is the first greenfield project in the world to have Corex technology to produce hot metal.
  • 16. JSW Steel’s Vasind & Tarapur Works, located near Mumbai, is country–region India 1country–region’s biggest producer and largest exporter of galvanized steel. The total capacity of this plant is 0.9 MTPA of galvanised, Galvume and colour coated cold rolled products. The company’s Tamil Nadu plant, Salem Works manufactures pig iron, steel, billet and rolled steel products with 1 MTPA of production capacity. JSW Steel is country–region on India country–region’s third largest steelmaker that has received various certifications such as ISO: 9001 for Quality Management System, ISO: 14001 for Environment Management System and OHSAS: 18001 for Occupational Health and Safety Management System. Products of the company  Hot Rolled Coils & Sheets  Hot Rolled (HRPO & HRSPO) Coils & Sheets  Cold Rolled Closed Annealed Coils & Sheets  Galvanised Coils & Sheets  JSW Vishwas G.C. Sheets  JSW Pragati Colour Coated Sheets  Pre–Painted Galvanised Coils & Sheets  Pre–Painted Profiles  JSW TMT Plus Bars  Wire Rods & Special Steel – RCS, Rounds & Spring Steel Flats Awards JSW Steel received CII–ITC Sustainability Award for Significant Achievement in Economic, Environment and Social Performance. It was honoured with CII–Exim Bank Award for significant Achievement towards Business Excellence The company received Gold Award in Metal and Mining Sector: for Outstanding Achievement in Safety Management by Greentech Foundation.
  • 17. Chapter 3 Companies Tax rates before GST STEEL AUTHORITY OF INDIA LTD. (SAIL) During the year, India was the only major steel consuming market in the world which exhibited a growth. However, due to the oversupply scenario globally, there was an unprecedented surge in imports which increased by 27% over 2014-15 and by 123% over 2013-14. In fact, the increase in net imports in the year was more than the increase in domestic steel consumption. These imports, often at predatory prices, forced significant price cuts by the Indian steel producers, leading to severe margin squeeze. In this year we shall be completing the balance modernization and expansion projects in our Bhilai Steel Plant. The facilities include a state of the art Universal Rail Mill capable of producing the longest single piece rail in the world. Commissioning of this mill would provide SAIL with the capability of producing high quality rails to meet the requirements of the Indian Railways, Metro projects, dedicated freight & passenger corridors as well as the exports market. General Description of Defined Benefit Schemes:  Gratuity: Payable on separation @15 days’ pay for each completed year of service to eligible employees who render continuous service of 5 years or more. Maximum amount of `10 lakhs for executives & non-executives joined on or after 1st July, 2014 and without any monetary limit for other non-executives, has been considered for actuarial valuation.  Leave Encashment: Payable on superannuation to eligible employees who have accumulated earned and half pay leave, subject to maximum limit of 300 days combined for earned leave and half pay leave. Encashment of accumulated earned
  • 18. leave allowed up to 30 days once in the financial year up to 18th November, 2015 and stopped thereafter.  Provident Fund: 12% of Basic Pay Plus Dearness Allowance, contributed to the Provident Fund Trusts by the company. Post-Retirement Medical Benefits: Available to retired employees at company's hospitals and/or under the health insurance policy.  Post Retirement Settlement Benefits: Payable to retiring employees for settlement at their home town.  Employees' Family Benefit Scheme: Monthly payments to disabled separated employees / legal heirs of deceased employees in lieu of prescribed deposit till the notional date of superannuation.  Long Term Service Award: Payable in kind on rendering minimum 25 years of service and also on superannuation.
  • 20. Brief Description of Provisions :  Mines afforestation costs – Payable on renewal (including deemed renewal)/forest clearance of mining leases to Government authorities, towards afforestation cost at mines for use of forest land for mining purposes.  Mines closure costs – Estimated liability towards closure of mines, to be incurred at the time of cessation of mining activities.  Overburden backlog removal costs – To be incurred towards removal of overburden backlog at mines over the future years.
  • 21. JSW STEEL The global economic growth remained largely subdued at 3.1%in CY2015as against 3.4% in CY2014. The emerging markets anddeveloping economies’ growth which still accounts for over 70%of global growth, declined for the fifth consecutive year and the advanced economies witnessed a modest but uneven recovery. However, the global economy saw a sizeable leg down in the last quarter of CY2015 – in both advanced and emerging markets and developing economies. During the year, the global economic. INDIA India’s GDP grew by 7.6% in FY2016, registering a stellar performance in a world battered by sluggish growth as well as turbulent financial and commodity markets. The Indian economy, however, also faced major headwinds during the year in the form of : a) slow agricultural growth due to two consecutive years of poor monsoons, b) disappointing manufacturing output owing to weak demand and low commodity prices, c) sharp contraction in exports due to weakglobal demand and low commodity prices. Relevant facts about global steel: Performance in CY 2015over CY 2014  Capacity: 2384 MnT grew by 1.4% (2351MnT)  Production: 1621 MnT de-grew by (2.9%) (1670 MnT)  Consumption: 1500 MnT de-grew by (3%) (1547 MnT) Gross turnover in FY 2015-16 declined by 19% from `49,658 crores to `40,354 crores. Interest Cost 2,687 2,909 Profit before Exceptional Items 794 3,645
  • 22. from `49,658 crores to `40,354 crores mainly due to a decline in realisations, inspite of increase of 1 lacs tonnes of volume of sales. The operating EBITDA for the year was at ` 5,723 crores, lower by 35% over last year, and EBIDTA margin stood at 15.6%. EBIDTA is lower due to reduction in sales realisation in line with international prices and import of steel products at predatory prices into India. However lower prices of Iron ore and Coal and operational efficiencies has mitigated the impact of lower realisation to some extent. The Company registered a net loss after tax of ` 3,498 crores, primarily driven by provision for diminution in value of investments and loans and advances in 3Q FY 2016. The Company’s total net debt gearing was at `1.41 (vis-à-vis ` 1.02, as on March 31, 2015). The weighted average interest cost of debt was at 7.50% (vis- à-vis 7.75% as on March 31, 2015). Revenue Analysis Trade receivables (` Crores) 2015-16 2014-15 Change Change% Trade 2,511 2,027 484 24% Receivables
  • 23. Chapter 4 Companies Tax rates After GST SAIL The Board of Directors has the pleasure of presenting the 49th Annual Report of Steel Authority of India Limited (SAIL, the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2021. A. FINANCIAL REVIEW Financial Results ('' crore) Sl. N o. Standalone Year ended Particulars 31st March 2021 Audited 31st March 2020 Audited 1 Income (a) Revenue from operations 69110.02 61660.55 (b) Other income 1011.69 985.22 Total Income 70121.71 62645.77 2 Expenses a) Cost of materials consumed 23136.17 29212.87 b) Changes in inventories of finished goods, work-i n-progress and by-products 4268.58 (5555.82) c) Employee benefits expense 10445.94 8781.32 d) Finance costs 2817.14 3486.76 e) Depreciation and Amortisation expenses 4102.00 3755.05 f) Other expenses 18531.28 19023.17 Total Expenses 63301.11 58703.35
  • 24. 3 Profit before Exceptional items and Tax 6820.60 3942.42 Add / (Less): Exceptional items 58.43 (771.76) 4 Profit before Tax 6879.03 3170.66 Less: Tax expense Current tax 12.05 224.14 Deferred tax (refer note 8) 3016.96 924.98 Total Tax expense 3029.01 1149.12 5 Net Profit for the period 3850.02 2021.54 power rates, interest charges etc. and higher dividend income, foreign exchange gain and reversal of Covid-19 discount on sub grade iron ore fines. Your Company continued its thrust on judicious fund management with timely repayment of loans including interest, advance planning and action for future fund raising, etc. to meet our growth objectives. There has been significant reduction in the borrowings of the company during the FY 2020-21due to improved cash flows because of increasing steel prices and demand in India. The Company had borrowings of ''37,677 crore as on 31st March 2021 vis- a-vis ''54,127 crore as on 31st March 2020 in line with INDAS. The Company has hedged the foreign currency risk on Buyers'' Credit and External Commercial Borrowings. The debt equity ratio of the Company as on 31st March, 2021 decreased to 0.87:1 from 1.36:1 as on 31st March, 2020 primarily due to decrease in borrowings during the year. The net worth of the Company increased to ''43,495 crore as on 31st March 2021 from ''39,777 crore as on 31st March 2020. An Interim Dividend of 10% i.e. Re.1/- per equity share was paid during the month of January, 2021. The Board of Directors of your Company has further recommended a Final Dividend of 18%, subject to approval of Members in the ensuing Annual General Meeting of the Company, i.e. total dividend for FY 2020-21 being 28% on equity share capital of the Company. Further, no amount has been transferred to general reserve during the year under review. M/s. CARE Ratings, M/s. India Ratings and M/s Brickwork Ratings, RBI approved Credit Rating Agencies, assigned ‘CARE AA Outlook: Stable'', ‘India Ratings AA- Outlook:
  • 25. Negative'' and ‘BWR AA Outlook: Negative'' ratings respectively for SAILs long-term borrowing programme. Steel Authority of India Limited New Delhi The Board of Directors has the pleasure of presenting the 49 Annual Report of Steel Authority of India Limited (SAIL the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31 March2021. (Rs.in crore) STANDALONE YEAR ENDED PARTICULARS 31 MARCH 2021 31 MARCH 2020 AUDITED AUDITED 1 INCOME (A) REVENUE FROM OPERATIONS 69110.02 61660.55 (B) OTHER INCOME 1011.69 985.22 TOTAL INCOME 70121.71 62645.77 2 EXPENSES A) COST OF MATERIALS CONSUMED 23136.17 29212.87 B) CHANGES IN INVENTORIES OF FINISHED GOODS WORK-IN-PROGRESS AND BY-PRODUCTS 4268.58 (5555.82) C) EMPLOYEE BENEFITS EXPENSE 10445.94 8781.32
  • 26. D) FINANCE COSTS 2817.14 3486.76 E) DEPRECIATION AND AMORTISATION EXPENSES 4102.00 3755.05 F) OTHER EXPENSES 18531.28 19023.17 TOTAL EXPENSES 63301.11 58703.35 3 PROFIT BEFORE EXCEPTIONAL ITEMS AND TAX 6820.60 3942.42 ADD / (LESS): EXCEPTIONAL ITEMS 58.43 (771.76) 4 PROFIT BEFORE TAX 6879.03 3170.66 LESS: TAX EXPENSE CURRENT TAX 12.05 224.14 DEFERRED TAX (REFER NOTE 8) 3016.96 924.98 TOTAL TAX EXPENSE 3029.01 1149.12 5 NET PROFIT FOR THE PERIOD 3850.02 2021.54 JSW STEEL The last 15 months have been perhaps the most eventful in living memory. The COVID-19 pandemic has impacted the lives and livelihoods of people across the world in what might be one of the most significant black swan events of our time. However, through these unpredictable times, we have witnessed remarkable scientific progress, multilateral cooperation, government responsiveness, and rapid global transformation – many of which will impact the way we live and interact with each other. Several countries, including India, are now emerging from the throes of a brutal second wave of COVID-19. I am hopeful that the worst is behind us and that better days are ahead.
  • 27. We are committed to a circular economy and it is with that focus that we strive to consistently optimise our water, waste, carbon and energy footprint. For example, we have resolved to improve net carbon emission intensity well beyond India’s Nationally Determined Contributions as per the Paris Accord commitments, with an aim of achieving more than 41% reduction by 2030 (from the base year of 2005). Emerging Market and Developing Economies (EMDEs) Following a 2.2% de-growth in CY 2020, EMDEs are expected to witness a y-o-y growth of 6.7% in CY 2021, indicating a V- shaped recovery. The trend lines on forecast also align with those of the AMEs. Percentage of GST charged on each product.
  • 28. Wire Rods Wire rod are manufactured at JSW Vijayanagar and Salem comprising 5% of product portfolio with an overall sales growth of 13% y-o-y Chapter 5 Summary, Findings and Conclusion Manufacturing facilities JSW Steel's manufacturing units are located in Bellary District near Bangalore, near Mumbai and Tamil Nadu. JSW STEEL The global economic growth remained largely subdued at 3.1% in CY2015 as against 3.4% in CY2014. The Company’s total net debt gearing was at ` 1.41 (vis-à-vis ` 1.02, as on March 31, 2015). Post-Retirement Medical Benefits: Available to retired employees at company's hospitals and/or under the health insurance policy. In this year we shall be completing the balance modernization and expansion projects in our Bhilai Steel Plant. With this the company's marketing network has expanded to 37 branch sales offices (BSOs) 26 customer contact offices (CCOs) and 67 Warehouses. In the year 1982 the Salem Steel Plant was
  • 29. inaugurated at Salem in Tamil Nadu. The Group set up its first steel plant in 1982 at Vasind near Mumbai. In July 2010 Blast Furnace unit 2 at Bokaro Steel Plant was upgraded & commissioned. Also Bhilai Steel Plant set up a blast furnace bell-less top charging system. JSW STEEL JSW is part of $10 billion OP Jindal Group. This information used to compute the taxpayer’s tax liability. At Rourkela steel plant five of phase II modernisation packages viz. JSW Steel has acquired a majority stake in Ispat Industries Ltd. In 2005, JISCO and JVSL merged to form JSW Steel. During the year 2010-11 all major facilities under expansion plan of Salem Steel Plant completed on schedule in September 2010 and are under stabilisation for regular production. INDIA India’s GDP grew by 7.6% in FY2016, registering a stellar performance in a world battered by sluggish growth as well as turbulent financial and commodity markets. JSW Steel has also formed a joint venture for setting up a steel plant in Georgia. BIBLOGRAPHY  https://www.google.com/search?q=sail+annual+report+2020- 21&oq=sail+annual+report+20&aqs=chrome.0.0i19j69i57j0i19l2j0i19i22i30.14205j0 j15&sourceid=chrome&ie=UTF-8  https://www.business-standard.com/company/s-a-i-l-2299/financials-balance-sheet  https://www.moneycontrol.com/annual-report/steelauthorityindia/directors-report/SAI  https://sail.co.in/en/investors-relation/financials