The results of characterization of TiAlSiON hard coatings deposited on ferric-chromium AISI 430 stainless steel by plasma enhanced magnetron sputtering are presented. The coating with maximum hardness (of 45 GPa) was obtained at the following optimal values of elemental concentrations: Si ~5 at.%, Al ~15 at.%, and Ti ~27 at.%. The elastic modulus of the coating was 590 GPa. The reading of gaseous mixture (Ar-N2) pressure was 1*10-3 Torr and the reading of partial pressure of oxygen (O2) was 1*10-5 Torr. The X-ray diffraction (XRD) measurements showed the presence of Ti(Al)N. High-energy resolved XPS spectra of core levels revealed the formation of Ti-N, Ti-O-N, Si-N and Al-O-N bonds. Comparison of XPS valence band spectra with specially performed density functional theory calculations for two ordered and few disordered TiN1-xOx (0 =< x <= 1) demonstrates that a Ti(Al)OxNy phase is formed on the surface of AISI430 steel upon the plasma enhanced magnetron sputtering, which provides this material with a good combination of high hardness and improved oxidation resistance.