Balance sheet SAIL (Steel Authority of India Ltd)

Rs. In crore
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds
Owner's fund
Equity share capital 4,130.40 4,130.40 4,130.40 4,130.40 4,130.40
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 29,186.30 23,853.70 18,933.17 13,182.75 8,471.01

Loan funds
Secured loans 7,755.90 1,473.60 925.31 1,556.39 1,122.16
Unsecured loans 8,755.35 6,065.19 2,119.93 2,624.13 3,175.46
Total 49,827.95 35,522.89 26,108.81 21,493.67 16,899.03

Uses of funds
Fixed assets
Gross block 35,382.49 32,728.69 30,922.73 29,912.71 29,360.46
Less : revaluation reserve - - - - -
Less : accumulated depreciation 21,780.91 20,459.86 19,351.42 18,315.00 17,198.32
Net block 13,601.58 12,268.83 11,571.31 11,597.71 12,162.14
Capital work-in-progress 15,039.83 6,544.24 2,389.55 1,236.04 757.94
Investments 668.83 652.7 538.2 513.79 292

Net current assets

Current assets, loans & advances 40,113.05 35,666.84 27,309.01 21,673.75 18,788.80
Less : current liabilities & provisions 19,595.34 19,609.72 15,758.74 13,656.77 15,317.67
Total net current assets 20,517.71 16,057.12 11,550.27 8,016.98 3,471.13
Miscellaneous expenses not written - - 59.48 129.15 215.82
Total 49,827.95 35,522.89 26,108.81 21,493.67 16,899.03

Notes:
Book value of unquoted investments 676.25 660.12 546.02 521.61 296.61
Market value of quoted investments 6.08 2.7 5.12 4.31 3.33
Contingent liabilities 28,382.46 32,193.13 17,143.54 5,605.90 5,541.62
Number of equity sharesoutstanding (Lacs) 41304.01 41304.01 41304.01 41304.01 41304.01
 (Rs crore)
Profit loss account
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Income
Operating income/Sales or Revenues 40,595.90 43,798.58 39,958.67 34,328.77 28,200.48

Expenses
Material consumed 19,768.57 22,042.58 16,821.39 15,963.13 13,903.23
Manufacturing expenses  4,234.65 3,762.77 3,317.74 2,925.43 2,793.45
Personnel expenses 5,417.00 8,401.73 7,919.28 5,087.76 4,156.97
Selling expenses 1,126.12 935.68 1,143.90 1,066.73 1,108.12
Adminstrative expenses 834.52 1,644.78 1,321.44 1,064.29 1,035.99
Expenses capitalised - -1,930.40 -1,832.22 -1,423.08 -1,352.05
Cost of sales 31,380.86 34,857.14 28,691.53 24,684.26 21,645.71
Operating profit 9,215.04 8,941.44 11,267.14 9,644.51 6,554.77
Other recurring income 2,328.11 2,279.89 1,539.69 1,354.96 892.3
Adjusted PBDIT 11,543.15 11,221.33 12,806.83 10,999.47 7,447.07
Financial expenses 402.01 253.24 250.94 332.13 467.76
Depreciation  1,337.24 1,285.12 1,235.48 1,211.48 1,207.30
Other write offs 10.33 128.02 75.49 128.59 181.44
Adjusted PBT 9,793.57 9,554.95 11,244.92 9,327.27 5,590.57
Tax charges  3,452.89 3,284.28 3,934.65 3,253.80 1,694.36
Adjusted PAT 6,340.68 6,270.67 7,310.27 6,073.47 3,896.21
Non recurring items 228.89 -277.12 161.9 53.75 45.64
Other non cash adjustments 184.8 181.26 64.61 60.57 71.12
Reported net profit 6,754.37 6,174.81 7,536.78 6,187.79 4,012.97
Earnigs before appropriation 27,099.42 22,052.47 18,348.43 12,886.63 7,861.47
Equity dividend 1,363.03 1,073.90 1,528.25 1,280.42 826.08
Preference dividend - - - - -
Dividend tax 227.52 181.26 258.91 197.98 115.86
Retained earnings 25,508.87 20,797.31 16,561.27 11,408.23 6,919.53
 DD 2010
MM
Ratios
Ratios
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Per share ratios

Adjusted EPS (Rs) 15.35 15.18 17.7 14.7 9.43
Adjusted cash EPS (Rs) 18.61 18.6 20.87 17.95 12.8
Reported EPS (Rs) 16.35 14.95 18.25 15.02 9.72
Reported cash EPS (Rs) 19.62 18.37 21.42 18.26 13.08
Dividend per share 3.3 2.6 3.7 3.1 2
Operating profit per share (Rs) 22.31 21.65 27.28 23.35 15.87
Book value (excl rev res) per share
(Rs) 80.66 67.75 55.69 41.6 29.99
Book value (incl rev res) per share
(Rs.) 80.66 67.75 55.69 41.6 29.99
Net operating income per share
(Rs) 98.29 106.04 96.74 83.11 68.28
Free reserves per share (Rs) 69.93 57.16 45.02 30.72 19.02

Profitability ratios
Operating margin (%) 22.69 20.41 28.19 28.09 23.24
Gross profit margin (%) 19.4 17.48 25.1 24.56 18.96
Net profit margin (%) 15.73 13.4 18.16 17.38 13.79
Adjusted cash margin (%) 17.91 16.67 20.77 20.77 18.16

Adjusted return on net worth (%) 19.03 22.4 31.77 35.34 31.45

Reported return on net worth (%) 20.27 22.06 32.76 36.09 32.4
Return on long term funds (%) 21.97 28.98 44.47 45.55 36.75

Leverage ratios
Long term debt / Equity 0.39 0.2 0.12 0.22 0.3
Total debt/equity 0.49 0.26 0.13 0.24 0.34

Owners fund as % of total source 66.86 78.77 88.33 80.54 74.56

Fixed assets turnover ratio 1.2 1.35 1.31 1.16 0.96
Liquidity ratios 2010 2009 2008 2007 2006
Current ratio 2.05 1.82 1.73 1.59 1.23

Current ratio (inc. st loans) 1.6 1.61 1.68 1.52 1.17

Quick ratio 1.53 1.24 1.23 1.01 0.72
Inventory turnover ratio 6.02 5.86 8.62 7.5 6.57

Payout ratios

Dividend payout ratio (net profit) 23.54 20.32 23.71 23.83 23.47

Dividend payout ratio (cash profit) 19.63 16.54 20.19 19.6 17.43
Earning retention ratio 74.92 79.99 75.56 75.66 75.83
Cash earnings retention ratio 79.32 83.67 79.28 80.06 82.18

Coverage ratios

Adjusted cash flow time total debt 2.15 0.98 0.35 0.56 0.81

Financial charges coverage ratio 28.71 44.31 51.04 33.12 15.92

Fin. charges cov.ratio (post tax) 21.15 30.96 36.26 23.71 12.55

Component ratios
Material cost component (%
earnings) 45.84 54.6 43.18 47.34 53.31
Selling cost Component 2.77 2.13 2.86 3.1 3.92

Exports as percent of total sales 1.92 1.84 3.08 3.4 3.87

Import comp. in raw mat.
consumed 61.27 63.36 50.93 54.52 50.57
Long term assets / total Assets 0.4 0.34 0.34 0.37 0.4
Bonus component in equity capital
(%) - -
 Current ratio
2.5

1.5 Current ratio

0.5

0
2010 2009 2008 2007 2006
 1

0.5

0
2010 2009 2008 2007 2006
Current Ratio = Current Assets/ Current Liabilities
2010 2009 2008
Current
ratio 2.05 1.82 1.73

2010 2009 2008

Quick
ratio 1.53 1.24 1.23

Quick ratio
1.8
1.6
1.4
1.2
Quick ratio
1
0.8
0.6
0.4
0.2
0
2010 2009 2008 2007 2006
2007 2006

1.59 1.23

2007 2006

1.01 0.72
The ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities (debt and payables) with
its short-term assets (cash, inventory, receivables). The higher the current ratio, the more capable the company is of paying
its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that
point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as
there are many ways to access financing - but it is definitely not a good sign.

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash.
Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems
because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more
useful to compare companies within the same industry
The Current Ratio formula is:

The quick ratio is calculated as:

What Does Activity Ratio Mean?

Accounting ratios that measure a firm's ability to convert different accounts within their balance sheets into cash or sales.
Companies will typically try to turn their production into cash or sales as fast as possible because this will generally lead to
higher revenues.

Such ratios are frequently used when performing fundamental analysis on different companies. The asset turnover ratio and
inventory turnover ratio are good examples of activity ratios.
 Mar '10
Balance Sheet as on Rs. In crores

Sources Of Funds
Total Share Capital 14.85
Equity Share Capital 14.85
Share Application Money 3.50
Preference Share Capital -
Reserves (15.71)
Revaluation Reserves -
Networth 2.64
Secured Loans -
Unsecured Loans 13.43
Total Debt 13.43

Total Liabilities 16.07

Application Of Funds
Gross Block 11.47
Less: Accum. Depreciation 6.56
Net Block 4.91
Capital Work in Progress -
Investments 0.02
Inventories 0.92
Sundry Debtors 0.49
Cash and Bank Balance 1.48
Total Current Assets 2.89
Loans and Advances 8.92
Fixed Deposits -
Total CA, Loans & Advances 11.81
Deffered Credit -
Current Liabilities 0.61
Provisions 0.06
Total CL & Provisions 0.67
Net Current Assets 11.14
Miscellaneous Expenses -
Total Assets 16.07
Contingent Liabilities 0.82
Book Value (Rs) (0.56)
Liquidity Ratio :
Ability of a company to pay off its current liabialities from current assets. OR Liquidity ratios measure the availabilit
Current Ratio and Quick Ratio measures the liquidity of a company.

Current Ratio = Current Asset / Current Liabilities

Profit & Loss account for the Mar '10
year ending Rs. In crores

Income
Sales Turnover 1.24
Excise Duty 0
Net Sales 1.24
Other Income 0.7
Stock Adjustments 0.01
Total Income 1.95
Expenditure
Raw Materials 0.3
Power & Fuel Cost 0.16
Employee Cost 0.3
Other Manufacturing
Expenses 0.2
Selling and Admin Expenses 0
Miscellaneous Expenses 0.39
Preoperative Exp Capitalised 0
Total Expenses 1.35
Operating Profit -0.1
PBDIT 0.6
Interest 0
PBDT 0.6
Depreciation 0.5
Other Written Off 0
Profit Before Tax 0.1
Extra-ordinary items 0.17
PBT (Post Extra-ord Items) 0.27
Tax 1.29
Reported Net Profit -1.02
Total Value Addition 1.06
Preference Dividend 0
Equity Dividend 0
Corporate Dividend Tax 0
Per share data (annualised)
Shares in issue (lakhs) 152.5
Earning Per Share (Rs) -0.67
Equity Dividend (%) 0
Book Value (Rs) -0.56
 rent assets. OR Liquidity ratios measure the availability of cash to pay debt.
mpany.
EBIT 50,000.00 EAT= 30,000.00
Debentures 200,000.00 Total Equity= 240,000.00
Intrest@ 10%
Equity capatilazation Rate 12.50%

Net Income Approach

Cost of Equity= EAT/Total equity
Cost of Debt= Intrest/total debt

Total capital= 440,000.00

Cost of Capital= 11.36%

EBIT 40,000.00 EAT= 30,000.00

Debentures 100,000.00 Total Equity= 187,500.00
Intrest 10% Cost of debt= 10,000.00
Equity Capitaliation Rate @ 16%

Total Capital = 287,500.00

Cost of Captial= 13.91%