On July 29, 2025, the Comptroller and Auditor General (CAG) of India formally presented its audit findings on SAIL’s inventory management for the years 2016 to 2023 in Parliament. The report exposes serious discrepancies in inventory recording, valuation, and stock control within the Steel Authority of India Limited (SAIL), pointing to inefficiencies that have translated into significant financial losses and wasted resources
The audit highlights that SAIL’s internal controls over raw materials and finished goods were inadequate, leading to inaccurate inventory data and misstatements in financial reporting. These shortcomings not only affected operational efficiency but also hampered the company’s ability to optimize procurement and production planning. As a major public sector undertaking, SAIL’s failure to maintain accurate inventory systems undermines public sector fiscal oversight and accountability .
The CAG strongly recommends that SAIL immediately strengthen its inventory tracking mechanisms, adopt robust valuation methods, and improve transparency in stock management. Implementing modern ERP systems and tighter internal audits are essential to prevent future mismanagement and to enhance fiscal governance. This report serves as a critical reminder of the importance of accurate inventory controls in public enterprises.
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