To, The Members,
The Directors have pleasure in presenting the 41st Annual Report of the
Company together with Audited Accounts for the Financial Year ended
31st March, 2013.
Your Company achieved a turnover of Rs.49,350 crore during the
Financial Year 2012-13 which was almost at the same level as that of
last year (Rs.50348 crore). The profit after tax of your Company for
the Financial Year 2012-13 was Rs.2170.35 crore compared to Rs.3542.72
crore in the previous Financial Year. Net profit was down largely due
to the lower Net Sales Realization resulting from a subdued market.
Higher usage of external inputs like BF Coke & pellets and higher
salary & wages were other key factors impacting profitability
adversely. The comparative performance of major financial parameters
during the FinancialYears 2012-13 and 2011-12 is given in Management
Discussion and Analysis Report. SAIL continued its thrust on optimum
utilisation of funds by better fund management. This included
replacement of high cost short term loans with low cost debts, timely
Repayment of loans including interest, strategic parking of surplus
funds with scheduled banks, actions for future fund raising etc. to
meet our growth objectives. Further, the Company hedged the foreign
currency risk on Buyer''s Credit and repayment of External Commercial
Borrowing depending on market conditions. The Company had liquid assets
of Rs.3,400 crore as on 31st March, 2013 invested in short term
deposits with scheduled banks against borrowings of Rs.21,597 crore as
on 31st March, 2013. The debt equity ratio of the Company was 0.53:1 as
on 31st March, 2013 as against 0.41:1 as on 31st March, 2012 which went
up on account of increase in borrowings during the year to fund the
ongoing capital expenditure.
The net worth of your Company improved from Rs.39,811 crore as on 31st
March, 2012 to Rs.41,025 crore as on 31st March, 2013 and this helped
in generation of internal resources for funding expansion plans of
SAIL. During the Financial Year 2012-13, SAIL''s relentless drive to
fast track its modernization & expansion plan resulted in commissioning
of projects worth Rs. 5500 crore. A capital expenditure of Rs. 9,731
crore was made during the year.
Your Company paid interim dividend @ 16% of the paid-up equity share
capital during the year. The Board of Directors has further recommended
a final dividend @ 4%, subject to approval of shareholders, thus making
the total dividend @ 20% of the paid up equity share capital for the
Financial Year 2012-13. A sum of Rs.163 crore has been transferred to
the general reserves during the Financial Year 2012-13 (previous year
M/s. FITCH and M/s. CARE, RBI approved credit rating agencies,
maintained ''AAA'' ratings, indicating the highest safety, for SAIL''s
long term borrowing programme. The International Borrowings programme
of the Company has been rated at ''BBB-'' by M/s Fitch ratings and M/s
Standard & Poor''s, which is also the sovereign rating of the Country.
Notwithstanding the challenging market conditions in 2012-13 arising
from demand stagnation, your Company produced 13.4 million tonnes (MT)
of crude steel by operating at 103% of its capacity, marking an
improvement of 1% over CPLY. In line with its long term objective of
increasing the proportion of value added steel in the overall product
basket of SAIL, the production of special steels was scaled up to 5 MT,
up by 4% over last Financial Year. Best ever power generation of 690 MW
was achieved during the Financial Year 2012-13, with a growth of 4%
over last year. Improvement was also achieved in the production of Hot
Metal, Finished Steel and Continuous Cast Steel with a growth of 1%
each over last year.
SAIL plants have taken various initiatives to enhance production
processes, by improving operational discipline and minimizing equipment
downtime. This has led to a significant improvement in operating
parameters, leading to best ever techno-economic efficiency. SAIL
Plants recorded the best ever specific energy consumption of 6.68
Gcal/tcs, an improvement of 3% over last year.This was achieved, as
production through energy efficient CC route went up by 1% as compared
to last year. Lowest ever coke rate at 512 kg/thm was achieved, with an
improvement of 1% over last year. This was possible primarily because
of higher usage of CDI (Coal Dust Injection) at 54 kg/thm as compared
to 51 kg/thm achieved last year. Best ever BF-Productivity of 1.58
T/m3/day was achieved, with an improvement of 5% over last year, by
consistent operation of Blast furnaces at BSP, DSP and RSP where 2%, 8%
and 3% growth was achieved in BF-Productivity. Your Company has
strived to enhance its product basket by developing several new
products during the year. Bhilai Steel Plant developed special soft
iron magnetic plates for the prestigious India-based Neutrino
Observatory (INO) Project of Bhabha Atomic Research Centre (BARC). Our
Plants at Bokaro and Salem started production of IS 2062 E450 and E 350
HR Coils, tailor-made for wagons used by the Indian Railways. For the
petrochemicals industry, Bhilai and Rourkela developed a new grade of
ASTM 537 plates, which finds application in pressure vessels. Another
product which caters to petrochemical industry is the NACE quality
plate developed by SAIL Bhilai. These crack-resistant plates are ideal
for transportation of gases having high Hydrogen-Sulphide content. SAIL
Bokaro came out with ultra high strength HR and CR steel with Mn-B,
especially for auto body components, thereby enhancing our presence in
that sector. Besides catering to large scale industry, our penetration
also improved in the medium and small scale industries with 31 CrV3
grade billets rolled out in Durgapur Steel Plant for the first time in
India; a product which finds a growing market among makers of spanners
and hand tools.
Several initiatives have been undertaken for implementation of R&D
Master Plan of SAIL. An exhaustive Master Plan for R&D was prepared
aiming at integrating R&D activities towards business and operational
goals of your Company. The implementation of this Master Plan; besides
giving a competitive advantage to SAIL by improving efficiencies,
reducing costs, meeting market demands and upgrading current steel
technologies; will also help in gradually increasing R&D expenditure to
a level of 1% of sales turnover, which is an international benchmark.
R&D Master Plan is envisaged to have positive impact on the existing
operations through implementation of centralized and decentralized
projects. Centralized projects consist of High Impact Projects (HIP)
and Technology Mission Projects (TMP). The projects which are of common
interest to all integrated steel Plants viz. coal & coke beneficiation,
pelletisation, environmental projects etc. will come in the category of
HIP, Development/acquisition of radically new technologies which are of
strategic importance for SAIL viz. thin strip casting and inline
rolling, CRGO etc. will be pursued throughTM Projects. Under the
decentralized category, all the Plants/Units of SAIL have Centres of
Excellence (CoE) in selected areas/products. Centre of Excellence
projects mainly focus on augmenting product volume and product
Centres of Excellence have been created at all plants and RDCIS. 13
projects have been identified as CoE Projects, 2 each at BSP, RSP, ISP
and SSP and one each at BSL, DSP, ASP, VISL and RDCIS. These projects
have taken shape in terms of formulation of objective, scope, duration,
budget and deliverables. A few examples are better quality plates and
rails at Bhilai, high performance Cold Rolled Sheets at Bokaro, CRNO
and API pipes at RSP etc. Three HIPs are being pursued with specific
objectives of beneficiation and pelletisation of iron ore at mines,
assimilation of new technologies for coke oven, sinter making and blast
furnace at ISP and identification of new uses of BF and BOF sludge &
slag for improving solid waste utilisation. Under the Technology
Mission (TM) projects, discussions have been initiated with technology
suppliers for acquiring technology for Thin Slab Casting & Direct
Rolling (TSCDR) and CRGO Steel production.
During the Financial Year 2012-13, total requirement of iron ore was
met from captive sources. The Company''s captive iron ore mines produced
about 21.48 million tonnes. However, in case of coking coal, around 24%
requirement was met from indigenous sources and balance through
imports. During the FinancialYear 2012-13, production in captive
collieries of the Company was about 0.82 million tonnes. In case of
fluxes, around 1.26 million tonnes of limestone and 0.96 million tonnes
of dolomite was produced resulting in total production of 2.22 million
tonnes from captive sources. For thermal coal, your Company depends
entirely on purchases from Coal India Limited (CIL) except small
quantity produced from captive mines.
During the Financial Year 2012-13, your Company got the final forest
clearance for Bolani, Barsua and Stage-I forest clearance for Gua Iron
Ore Mines. Environment clearance for the capacity expansion of Gua and
Bolani Iron Ore Mines and renewal of Dhobil mine were also obtained
from MoEF, Government of India (GoI). Two mining leases of Kuteshwar
Limestone mines got renewed for further period of twenty years.
For ensuring regular supplies of iron ore, capacities of existing iron
ore mines are being expanded and new iron ore mines are being
developed. In addition, new iron ore deposits in the States of
Rajasthan, Chhattisgarh, MP, Maharashtra, Odisha and Karnataka are
For improving coking coal security, your Company is also making efforts
for development of new coking coal blocks at Tasra and Sitanala. At
Tasra Coal Block, Letter of Acceptance (LoA) has been issued to the M/s
Lanco Infratech on 26th July''13 for development of 4 MTPA (ROM) coal
capacity mine through open cast mining and production of washed coal
through establishing a washery of 3.5 MTPA input capacity and further,
setting up of 200-300 MW Power Plant through JV route based on
secondary product available from Tasra Washery. Production is likely to
start by mid 2015 after completing pre-development activities such as
land acquisition, R&R, setting up infrastructure like Coal Handling
Plant, Heavy Earth Moving Machineries (CHP, HEMM), etc. M/s Lanco
Infratech was selected as the H-I bidder (on Net Present Value basis)
for development of Tasra coking coal block as Mine developer cum
For allotment of new thermal coal blocks applications have been
submitted to Ministry of Coal, GoI and for coking coal Ministry of
Coal, GoI has been approached for allotment of 2-3 coking coal blocks
under Government dispensation route.
SALES & MARKETING REVIEW
- SAIL achieved a total sales volume of 11.35 million tonnes during
the Financial Year 2012-13. Exports during the year at 0.368 million
tonnes achieved 10.1% growth over previous year. Major categories where
growth was recorded in home sales included: HR Coils: 2.1%, CR
Coils/Sheets: 4.6%, GP/GC: 5.3%, Wire Rods: 1.7% and Electrical Steel
Sheets: 16.8%. New records were also set in supplies of Wheels to
Indian Railways during the year.
- Highest ever sales of LPG grade HR Coils were achieved at 2.07 lac
tonnes during the Financial Year 2012-13 registering 6.8% growth over
the previous best achieved during 2011-12.
- Supplies were started to rural dealers appointed under SAIL Rural
Dealership Scheme which was launched in the year 2011-12 with the
primary objective of meeting the steel demands of the small rural
consumers at block, tehsil and taluka levels. Under this scheme 562
rural dealers were appointed during the Financial Year 2012-13.
Process for further appointments is under progress. As on 1st April,
2013 SAIL has a wide network of 2896 dealers spread over 629 districts
of the country.
- The Company maintained its presence in neighbouring and traditional
markets and exported 0.368 million tonnes steel during the year. DSP
Blooms and Chequered Coils were exported for the first time by the
Keeping in view the projected demand for steel in the Country, your
Company is currently implementing growth plan to enhance its hot metal
production from the level of 14.3 million tonnes during the Financial
Year 2012-13 to 23.5 million tonnes after expansion in a phased manner.
The growth plan, besides targeting higher production, also addresses
the need for eliminating technological obsolescence, achieving energy
savings, enriching product-mix, reducing pollution, developing mines
and collieries, introducing customer centric processes and developing
matching infrastructure facilities.
To maintain its current dominance in the domestic market and to meet
the future challenges, your Company is working on a long term strategic
plan ''Vision 2025'', which will steer the Company towards a target of 50
million tonnes of hot metal production, thereby meeting the strategic
objectives of achieving leadership in Indian steel sector and a
position amongst the top steel companies globally.
MODERNISATION & EXPANSION PROGRAMME
Steel Industry requires continuous Capital Investments for
technological up-gradation and Addition/Modification/Replacement of its
capital assets which are essential to maintain market competitiveness
and meet the challenging need of customers. The market is becoming
increasingly competitive making it imperative for Steel Authority of
India Ltd. (SAIL) to make determined efforts to bring about substantial
improvement in production, techno-economic parameters and
profitability. Accordingly, the Modernisation & Expansion Program of
SAIL aims towards almost doubling its production capacity with energy
efficient and environment friendly technology and a wider product
SAIL is currently implementing a Modernisation & Expansion Programme
simultaneously at its five integrated steel plants at Bhilai, Durgapur,
Rourkela, Bokaro & Burnpur and special steels plant at Salem including
augmenting raw material resources and other related facilities. The
Modernisation & Expansion Programme, apart from increasing the
production capacity addresses the vital issues of elimination of
technological obsolescence, installation of energy efficient &
environment friendly technologies, value addition/ product-mix
improvement/ sustenance of existing assets of the plants and
introduction of customer- centric processes such as Enterprise Resource
Planning (ERP) and Manufacturing Execution System (MES). At Salem Steel
Plant, the production facilities envisaged under Expansion Program have
already been installed and units are in regular production. At other
Plants/Units, the expansion programmes are at advanced stage of
implementation. SAIL Board accorded ''in-principle'' approval for
various new Projects with an estimated total outlay of around Rs. 1,641
crore during the year. Orders for about Rs. 58,151 crore have been
placed (till Mar''13) under the current phase of Modernisation &
Expansion Plan of SAIL. A capital expenditure of Rs.9,731 crore has
been incurred during the financial year 2012-13 on this account and
till Mar, 2013, the capital expenditure of Rs. 44,112 has been incurred
under this program. The capital expenditure planned to be incurred
during 2013-14 has been planned at Rs.11,500 crore. Current status of
progress of implementation of Modernisation & Expansion Plan is given
in Management Discussion and Analysis Report. AMR Schemes:
A number of capital projects costing Rs. 2556.28 crore are under
implementation which include Augmentation of Grinding Facilities for
Coal Dust Injection Unit in BF-6 & 7, Installation of Oxygen Evacuation
Facilities for 2x1250 TPD New Oxygen Plant, Appointment of consultant
for development of Rowghat Iron Ore Deposit, Cold Repair of COB-9 and
Up-gradation of Stoves of BF-4 at BSP; Coal Dust Injection in BF-4,
Battery Proper Pkg for Rebuilding of COB-3, Installation of Additional
Heat Treatment Facilities in SPP, Re-habilitation of Mandira Dam,
Installation of 125 tpd Sulphuric Acid Plant and Replacement of 2 nos
of Process ESPs in SP-1 at RSP; Installation of Bell Less Top Charging
System (BLT) in BF-3 & Re-building of COB-5 at DSP; Replacement of
Converter Shell trunion ring and Pedestal Assembly in SMS-2 at BSL;
Installation of One 45 Sub-merged Arc Furnace, 4 MW Power Plant and 220
KV Sub-station at Chandrapur Ferro Alloy Plant and Projects for
Development of Mines. HUMAN RESOURCE MANAGEMENT REVIEW SAIL recognizes
contribution of its Human Resources (HR) in providing the competitive
advantage. SAIL has achieved its present level of excellence through
investing in its human resource, whose skill and knowledge constitute
the basis of every initiative - be it technology or innovation.
Developing skills and capabilities of employees to improve manpower
utilization and Labour Productivity is the key thrust area of Human
Resource Management (HRM) in SAIL.
SAIL provides an environment conducive for learning, encourages
adoption of best practices in every area and nurtures creativity and
innovativeness among employees. HR initiatives in SAIL are focused on
developing team spirit, employee empowerment and their involvement in
various improvement activities. Strategic alignment of Human Resource
Management to business priorities and objectives has facilitated smooth
transition to state-of-the-art technology in the modernization and
Enhanced Productivity with Rationalized Manpower
SAIL achieved the highest ever Labour Productivity (LP) of 258 TCS/
Man/Year in the Financial Year 2012-13. The manpower strength of SAIL
was 101878 nos. (as on 31.03.2013) with manpower rationalization of
4126 nos. achieved during the year, The enhanced productivity with
rationalized manpower could be achieved as a result of judicious
recruitments, redeployment strategies, building competencies and
infusing a sense of commitment and passion among employees to go beyond
and excel. Trend of enhanced productivity and manpower rationalization
since 2001-02 onwards is depicted below:
Developing Employee Capabilities & Competencies
In order to develop its human resources for harnessing their potential
to the fullest and for according ample opportunity for realizing
individual as well as organizational goals, your Company has been
making sustained efforts through various training and development
activities with focus on preservation of skills, transfer of skills and
knowledge, training in specialized/advanced skills and technology in
collaboration with reputed organizations and development of effective
managerial competencies through association with premier institutes.
Preparing employees for tomorrow, for effectively taking up challenges
and discharging new roles and responsibilities was given a major
thrust. Overall, 54810 employees were trained against target of 44958
employees during the year on various contemporary technical and
Harmonious Employee Relations
- Your Company has a glorious tradition of conducive employee
relations scenario. There has been a healthy tradition of settling the
issues through discussions with trade unions/workers'' representatives
and this has helped in establishing a peaceful IR climate.The Company
has an established system of workers'' participation at different levels
right from National level upto shop-floor level. Some of these forums
are functioning since early seventies and are sufficiently empowered to
address different issues related to wage, safety, and welfare of
workers, arising from time to time thus helping in conducive work
- Bipartite forums, like National Joint Committee for Steel Industry
(NJCS), Joint Committee on Safety, Health & Environment in Steel
Industry (JCSSI), etc. with representation from major central trade
unions as well as representative unions of Plants/Units meet on a
periodic basis and jointly evolve recommendations/ action plans for
ensuring a safe & harmonious work culture which gets substantiated from
the harmonious industrial relations enjoyed over the years by SAIL
Plant/Units, marked with diverse work culture at multi-locations.
- In addition, Quality Circles, Suggestion Schemes, Shop Improvement
Workshops also offer multiple avenues for enhanced workers''
participation. Workers are also kept abreast of strategic business
decisions and their views sought thereon through structured /
Grievance Redressal Mechanism
- Effective internal grievances redressal machinery exists in SAIL
Plants and Units, separately for executives and non-executives. The
grievance procedure in SAIL has been evolved after sustained
deliberations and consent of employees, trade unions and associations.
- The grievances in SAIL Plants/Units are dealt in 3 stages and
employees are given an opportunity at every stage to raise grievances
relating to wage irregularities, working conditions, transfers, leave,
work assignments and welfare amenities, etc. Such issues are
effectively settled through the time-tested system of grievance
management. However, majority of grievances are redressed informally in
view of the participative nature of environment existing in the steel
Plants. The system is comprehensive, simple and flexible and has proved
effective in promoting harmonious relationship between employees and
- A total of 1900 employee grievances were settled during the
Financial Year 2012-13.
INITIATIVES FOR SOCIO-ECONOMIC DEVELOPMENT OF SCs /STs & OTHER WEAKER
SECTIONS OF SOCIETY
SAIL follows Presidential Directives on Reservation for Scheduled
Castes and Scheduled Tribes in the matter of recruitments & promotions.
As on 31st March 2013, out of total manpower of 101878, 15.98% belong
to SC category and 13.56% belong to ST category.
SAIL steel Plants and Units including mines are located in economically
backward regions of the country with predominant SC/ST population.
SAIL has contributed to the overall development of civic, medical,
educational, recreational and other facilities in these regions.
National Commission for Scheduled Castes (NCSC) under Chairmanship of
Dr. P. L. Punia, visited SAIL Corporate Office on 17th September, 2012.
Vice Chairman, 3 members, Secretary and other senior officials of the
Commission also accompanied Chairman, NCSC. Commission interacted with
SAIL SC/ST Employees Federation and SAIL Management. Deliberations
were held on various initiatives of SAIL for welfare of SCs/ STs.
Commission appreciated Socio Economic Schemes initiated by SAIL.
SAIL has undertaken several initiatives for the socio-economic
development of SCs/STs and other weaker sections of the society which
are mainly as under:
- Special schools opened exclusively for poor & underprivileged
children at integrated steel plant locations.These schools are
presently providing education to more than 1500 children. Free
education, mid-day meals, transportation, text books & stationery
items, school bags, water bottles, etc. are provided to the students in
- 188 SC/ST students belonging to BPL families/ primitive tribes have
been adopted by our plants/mines. They are being provided free
education, boarding, lodging, uniform, etc. for their overall growth.
- No tuition fee is being charged from SC/ST students studying in the
Company run schools, irrespective of whether they are wards of SAIL
employees or non-employees.
- Free medical health centres for poor have been set up at Bhilai,
Durgapur, Rourkela, Bokaro, Burnpur (Gutgutpara) providing free medical
consultation, medicines, etc. to the peripheral population mainly
comprising of SC/ST and weaker sections of society.
- Villagers are given free outdoor and indoor treatment in the mines
hospitals of Kiriburu, Gua & Chiria after recommendations by Manki/
Munda (Local Tribal Village Heads) of the peripheral villages.
IMPLEMENTATION OF RTI ACT, 2005
Your Company has been a front runner in implementation of Right to
Information Act, 2005, in true spirit. The Company has designated
Public Information Officers / Asstt. Public Information Officers,
Appellate Authorities and Transparency Officers under Section 5 &
Section 19(1) of RTI Act in each Plant & Unit for speedy redressal of
the queries received under the Act.
All Plants/Units of SAIL have listed, 17 manuals, and details of
designated officials, in line with the provisions of the RTI Act, on
SAIL website.Your Company has also institutionalized an exclusive RTI
Portal for better awareness and knowledge sharing. In all, a total
number of 3653 applications and 525 appeals were received under RTI
Act, during the Financial Year 2012-13 and all of them have been
disposed off within the timelines. Efforts towards spreading awareness
about RTI, amongst general public as also for PIOs / deemed PIOs
continued throughout the year.
AWARDS & ACCOLADES WON DURING THE YEAR
- Your company has been conferred with Excellent Rating for the
year 2011-12 for the 10th consecutive year.
- SAIL bagged SCOPE Award for Best Practices in Human Resource
Management for the year 2011-12 presented by the Hon''ble President of
India on Public Sector Day function held on 26th April''13.
- SAIL won 13 out of 28 Viswakarma Awards declared in the country,
which is the highest for any organization amongst both private and
- SAIL employees were awarded 11 out of 32 Prime Minister''s Shram
Awards declared in the country. This is also the highest number for any
organization amongst both private and public sector.
- Two out of the five Olympics medal winners of the country were
supported by SAIL (Sushil Kumar andYogeshwar Dutt). In recognition of
SAIL''s initiatives, Rashtriya Khel Protsahan Puraskar - 2012 was
conferred to the Company by Hon''ble President of India.
- Indira Gandhi Rajbhasha Award for the best implementation of
official language in ''A'' (Hindi-speaking) region was conferred to SAIL.
SAIL''s Hindi magazine ''Ispat Bhasha Bharti'' was also adjudged First
prize winner amongst the in-house journals published in ''A'' region in
the country. These awards were conferred by Hon''ble President of India
on Hindi Diwas i.e. 14th Sept''12.
- In the International Convention on Quality Circle 2012 held at
Kuala Lumpur, Malaysia during 14th-17th October, 2012, all the six
participating teams from SAIL won the highest honour (3-star awards) in
their respective categories.
- SAIL was awarded CII - Sustainability Award 2012 [Certificate of
Commendation], which was given by Hon''ble President of India on 14th
- Adjudged as most efficient and largest Maharatna employer at the
Dalal Street Investment Journal PSU Awards-2012.
- SKOCH Financial Inclusion Award for 2013 for initiatives in
corporate social responsibility.
- Institution of Engineers (India)- Industry Excellence Award -2012
under the award category A-Manufacturing & Processing.
- Indira Gandhi Award (First prize) for excellence in implementation
- ''Ispat Bhasha Bharti''- in-house Rajbhasha journal, won the first
prize under the Home Ministry''s All India House Journal Award Scheme.
- ''Sahasrabdi Rajbhasha Shield'' from Rashtriya Hindi Academy,
- It is also noteworthy to mention that Chairman, SAIL was conferred
SCOPE Award for Excellence and Outstanding contribution to the Public
Sector Management - Individual Leadership Category-I
(Maharatna/Navratna PSEs) for 2010-11.
Bhilai Steel Plant (BSP)
- Prime Minister''s Trophy for the tenth time for emerging as the best
performing steel plant in the country.
- Steel Minister''s Trophy for the year 2010-11 and 2008-09.
- CII-ITC Sustainability Awards-2012 - Certificate of commendation
for significant achievement in its category.
Bokaro Steel Plant (BSL)
- Greentech HR Awards 2013 (Gold) under the Category of Training
- Golden Peacock National Training Award 2012 in steel sector for
excellence in training practices.
- Jharkhand CSR Award in the category of Regulation of Corporate
Social and Environment Behaviour.
- ''Golden Peacock HR Excellence Award'' for the year 2012.
Durgapur Steel Plant (DSP)
- Certificate of Strong Commitment to Excel from CII-EXIM Bank under
Business Excellence Award.
- Rajiv Gandhi National Quality Award 2011 - Certificate of
- Greentech Safety Award 2012 (Gold) and Greentech CSR Award 2012
(Silver) in Metal & Mining Sector.
- Greentech HR Award 2013 (Silver Trophy).
Rourkela Steel Plant (RSP)
- Award for Best Practices in Training and HRD-2012 from ISTD,
- ''Greentech Environment Gold Award'' in the field of eco-friendly
- Awards under three categories - Best CSR Practices, Concern for
Health and Women Empowerment in the World CSR Day Global CSR Leadership
& Excellence Awards.
Raw Materials Division (RMD)
- No Fatal Accident in Collieries / Mines Award by the Annual Joint
Committee on Safety, Health & Environment (JCSSI).
- National Safety Awards (Mines) won by Kalta Iron Mine for Lowest
Injury Frequency Rate and by Tulsidamar & Dalli mines for Longest
Accident Free period.
Alloy Steels Plant (ASP)
- Ispat Suraksha Puraskar from JCSSI for no fatalities for two
- Green Tech Environment Excellence (Silver) Award 2012.
Salem Steel Plant (SSP)
- Award for Excellence in Suggestion Scheme 2012 from INSSAN- SIC.
- National Sustainability Award (First Prize) for the year 2011-12
from IIM, Kolkata amongst the Secondary Steel Plants / Alloy Steel
- Golden Peacock Innovation Management Award for the year 2012.
CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABLE DEVELOPMENT
Your Company''s focus on social responsibility remains unwavering. The
pivotal role of education, health, income generation and sustainable
development (SD) is the cornerstone of our Corporate Social
Responsibility and SD initiatives.
On the health front, the Company has established 53 Primary Health
Centres, 23 Hospitals, 7 Reproductive & Child Health Centres and 7
Super-Specialty Hospitals to provide specialized and basic healthcare
to more than 34 million people living in the vicinity of its Plants and
Units. In order to reach out to the underprivileged, over 4300 camps
have been organized across the country benefitting more than 2 lakh
people by providing free health check-up, path lab treatment, medicine,
immunization, etc. in financial year 2012-13. 90 numbers of Mobile
Medical Units (MMUs)/ Ambulances are being run or have been provided to
various NGOs since 2007-08. Seven Health Centres (Kalyan Chikitsalaya)
are being run at plants exclusively for providing free medical care
including medicines to poor and needy families. In the Financial Year
2012-13, healthcare was provided to more than 87,000 people through
these exclusive health centres.
Education has always been a priority area for SAIL. Company owns and
maintains over 148 schools in its steel townships to provide modern
education to over 55,000 children and is providing assistance to over
492 schools. Seven Special Schools for BPL (Kalyan Vidyalaya) at five
steel plants with facilities of free education, mid-day meals, uniform
including shoes, text books, stationery items, school bag, water
bottles and transportation in some cases are running under CSR. The
strength of students in these schools is more than 1500 students.
Scholarships to deserving undergraduate & postgraduate engineering
students, adoption of naxal affected tribal children, nearly extinct
Birhore tribes, sponsoring youths for Industrial Training & Nursing
course, etc. are the major steps taken for uplifting poor, OBC, SC, ST,
etc. SAIL is providing Mid-Day Meal to more than 22000 students in
different schools of Bhilai everyday through Akshya Patra Foundation.
This scheme is being replicated at Bokaro and Rourkela in Financial
SAIL has provided access to over 75.56 lakh people across 435 villages
since inception by constructing and repairing of roads. It has provided
access to water infrastructure to people living in far-flung areas by
installing over 7381 water sources, thereby providing drinking water
access to around over 41.38 lakh people.
In order to bridge the disparity between rural and urban areas as also
to provide comprehensive development of both physical and social
infrastructure, 79 villages have been identified & developed as Model
Steel Villages across the country (in eight states). The developmental
activities undertaken in these villages include medical & health
services, education, roads & connectivity, sanitation, community
centres, livelihood generation, sports facilities, etc.
To promote renewable sources of energy, Solar street lights were
installed and Solar Lanterns and smokeless chullahs have been
distributed among the poor and needy in different parts of country.
In an effort to bring the marginalized masses of the remote forest
areas to the mainstream of development, SAIL in association with Govt.
of Jharkhand and Ministry of Rural Development, GoI actively
participated in the development process of Saranda forest, Jharkhand.
SAIL provided ambulances, bicycles, transistors, solar lanterns and set
up an Integrated Development Centre at Digha village in Saranda forest.
Vocational training has been provided in areas such as Improved
agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Piggery,
Achar / Pappad/ Agarbati making, Welder, Fitter & ElectricianTraining,
Sewing & embroidery, Smokeless chullah making etc. as a means to
livelihood in a dignified manner. Vocational Training centre for rural
and unemployed youths - ''Bhilai Ispat Kaushal Kutir'' & Swayamsiddha at
Bhilai, Skill Development and Self Employment Training Institute
(SDSETI) at Durgapur, Garment Technician Training at Salem, JHARCRAFT
centre at Bokaro and Self Employment centre KIRAN at Kiriburu Ore
Mines are benefitting common masses by way of financial inclusion/
SHG/training for income generation and then empowering them to be part
of main stream.
The Sustainable Development Performance Report (SDPR) for the year
2011-12 has been adjudged to have met the criteria of Application Level
A by the Global Reporting Initiative (GRI), Amsterdam.
As per the DPE Guidelines on Sustainable Development (SD), SAIL took up
Sustainable Development (SD) projects under the MoU with GOI for the
year. These SD projects include carbon and water foot printing at SAIL
plants, bio-diversity conservation at Bolani Iron Ore Mine, rain water
harvesting and sustainability training.
SAIL''s efforts as a responsible corporate citizen in Nation building
have been recognized by various organizations in the form of awards and
accolades. In the year, SAIL was awarded with Skoch Financial Inclusion
Award-2013 by Skoch foundation for CSR, Golden Peacock National Award -
2012 to Bhilai Steel Plant, Greentech Award for CSR - 2011 & 2012 to
Durgapur Steel Plant, Jharkhand Sustainability Award in October, 2012
to BSL and Global CSR Excellence & Leadership Award in categories: Best
CSR practices, Women Empowerment & Concern for health to Rourkela Steel
In compliance of DPE guidelines on CSR & Sustainability- 2013, the
Company has identified Gonda district in Uttar Pradesh as ''Backward
District'' for taking up CSR projects during 2013-14.
SAIL''s Citizen Charter has outlined commitment of SAIL towards its
stakeholders thereby empowering them to demand better products and
services. The Citizen''s Charter of SAIL may be summarized in four
objectives as given below:
- Ensuring citizen-centric focus across all its processes by adopting
Total Quality Management principles for improvement of products and
- Ensuring effective citizen communication channels.
- Demonstrating transparency and openness of its business operations
by hosting the Citizen''s Charter on the corporate web site.
- Working towards delight of citizens by fail-safe processes and in
case of exigencies leveraging its service recovery processes, like
Grievance Redressal, Handling Complaints, etc.
The Management of your Company is totally committed to excellence in
public service delivery through good governance by a laid down process
of identifying citizens, our commitment to them in meeting their
expectations and our communication to them of our key policies in order
to make the service delivery process more effective.
STRATEGIC INITIATIVES OF THE COMPANY
During the Financial Year 2012-13, your Company continued to give
impetus towards taking new business initiatives, including
incorporation/ formation of new JointVentures (JVs), mergers &
acquisitions and entering into Memorandum of Understanding (MOUs) for
its long term strategic objectives.Your Company has established
communication with renowned international technology providers for
forging strategic alliances in alternative iron & steel technologies,
production of sophisticated spares and assemblies etc. The Company is
continuously adopting the path of entering into Joint Ventures with
public / private entities to attain its strategic goals of maximizing
gains with optimal utilization of resources. These include:
(A) Joint Ventures:
i) Development of Hajigak Iron Ore Deposits in Afghanistan: The
SAIL-led consortium AFISCO (Afghan Iron & Steel Consortium) comprising
of SAIL, NMDC, RINL, JSW Limited, JSPL, JSW Ispat Limited and Monnet
Ispat and Energy Limited which had submitted its bid for development of
Hajigak Iron Ore deposits, has been selected as the ''Preferred Bidder''
for blocks B, C and D of the mines with an estimated reserve of 1.28
billion tonnes of high-grade magnetite iron ore (with 62- 64% Fe
content) and invited for negotiation of Hajigak Mining Contract. The
consortium has held contract negotiation discussions with Ministry of
Mines of Islamic Republic of Afghanistan. The contract is likely to be
finalized in 2013-14.
ii) Revival of Sindri unit of Fertilizer Corporation of India Limited
(FCIL) :Your Company has envisaged a plan for revival of Sindri unit of
FCIL by setting up a 5.6 mtpa steel plant, a 1.15 mtpa fertilizer plant
and a suitable sized power plant, through the SPV SAIL-Sindri Projects
Ltd which has already been incorporated. Department of Fertilizers
(DoF) / FCIL have initiated the process for obtaining approval of
revised Draft Rehabilitation Scheme (DRS) from Cabinet Committee of
Economic Affairs (CCEA), for making its net worth positive, enabling
FCIL to be discharged from Board for Industrial and Financial
Reconstruction (BIFR). DoF/FCIL will get the land at its Sindri unit,
free from all encroachment and encumbrances, before handing it over to
iii) Alternate technologies in Iron & Steel Making : A Memorandum of
Agreement (MOA) was signed with Kobe Steel Limited, Japan in July''12
for ITmK3 technology for iron making.A JointVenture Company SAIL-Kobe
Iron India Private Limited has been incorporated with Kobe Steel,
Japan for installation of an ITmK3 technology based 0.5 MTPA Iron
Nugget plant at ASP, Durgapur. The detailed project report is under
iv) Revival of operation of Steel Complex Limited: The management of
Steel Complex Limited, a BIFR registered Company was taken over by SAIL
in 2010 and converted into a JV Company namely SAIL-SCL Kerala
Limited with SAIL and Government of Kerala (GoK) having equal
shareholding. Steps have been taken for the revival of the Company,
and it has been discharged from BIFR after infusion of equity by SAIL
and GOK. The JV Company has embarked on installation of 65000 MTPA
rolling mill for TMT bars, to improve its performance. An EOI has been
issued for selection of a party for execution of the project.
v) SAIL, on May 25, 2012 signed a joint venture agreement with Burn
Standard Company Limited (BSCL), a PSU under Ministry of Railways, for
setting up aWagon Components Manufacturing Facility at the premises of
BSCL at Jellingham, Purba Medinapore district, in West Bengal, with a
capacity to produce 10,000 bogies and couplers per annum.A joint
venture Company SAIL Bengal Alloy Castings Private Limited between
SAIL and BSCL has been incorporated. Work for preparation of Detailed
Project Report (DPR) for the project has been initiated.
(B) Strategic Alliances and Memorandum of Understanding (MOU):
i) Your Company has been in talks with Chhattisgarh Mineral Development
Corporation Ltd. (CMDC), an Undertaking of Govt. of Chhattisgarh for
having a captive source of iron ore. In this respect, SAIL has signed
an MOU with CMDC on November 2, 2012 for development of Eklama Iron Ore
deposit in Chhattisgarh which as per preliminary estimates have
resources of around 100 million tonne. The Joint Venture Agreement is
ii) In order to promote industrialization in the State of MP where SAIL
is interested in setting up iron ore beneficiation and pelletisation
plant and has submitted five applications for grant of Prospecting
Licence (PL) for iron ore bearing area in Chhatarpur district of MP, a
MoU between SAIL and MP Trade and Investment Facilitation Corporation
Ltd (TRIFAC) was executed on 15th October, 2012 at Bhopal.
iii) Your Company is also in discussions with Industrial Development
Corporation of Odisha Ltd. (IDCOL) for exploring the possibility of
acquisition / JV with its wholly owned subsidiaries IFCAL (IDCOL Ferro
Chrome Alloys Ltd.) and IKIWL (IDCOL Kalinga Iron Works Ltd.). IFCAL is
engaged in production of High Carbon Ferro Chrome and sources raw
material from its chromite mines at Tailangi (Sukinda Valley). The
other facility at IKIWL, currently engaged in production of Pig Iron,
is planned to be utilized for iron ore beneficiation and pelletization
facility. An MOU in this regard was signed between SAIL and IDCOL on
2nd May, 2012. Due diligence and Valuation of IFCAL and IKIWL are in
iv) SAIL signed an MOU on 5th March, 2013 with Power Grid Corporation
of India Limited (PGCIL) for working together to set up Joint Venture
Company at a mutually agreed location for fabrication & galvanizing of
Transmission line Tower and Tower parts and tubular structures
including research and development facility.
v) Titanium Project: SAIL has accepted Government of Kerala''s offer to
jointly explore the possibility of developing a Titanium Project in
joint venture in the state of Kerala. An MOU has been signed on 4th
April, 2013 amongst SAIL, Kerala State Industrial Development
Corporation (KSIDC) and Kerala Minerals and Metals Limited (KMML) to
vi) Your Company is planning to set up engineering shops in joint
venture to improve its capabilities in production of sophisticated
spares and assemblies. This will meet its future requirement of
engineering spares and assemblies which is bound to increase
post-expansion of SAIL steel plants, both qualitatively and
quantitatively. An MOU with Danieli & C of Italy has been signed on
28th May, 2012 to assess and explore the technical and economic
viability of installing and operating an Engineering Workshop Facility
in JointVenture between SAIL and Danieli & C at SAIL Plant locations.
BUSINESS EXCELLENCE - INITIATIVES Enterprise Scorecard (ESC)
Enterprise Scorecard (ESC) of SAIL was prepared for the Financial Year
2012-13. Enterprise Scorecard not only brought integration with
Memorandum of Understanding (MoU) with Government of India and Annual
Business Plan (ABP) of the Company but also facilitated deployment of
these across various leadership levels. It facilitated deployment of
organisational strategy through Strategic Objectives and Key
Initiatives. ESC 2012-13 was aligned upwards with ABP & MOU; deployed
downwards through Unit Scorecards, Functional Scorecards and
Departmental Scorecards and addressed the long term and short term
issues. Process for formulation of Enterprise Scorecard for 2013-14 has
also been commenced.
Your Company has adopted European Foundation of Quality Management
(EFQM) Model which is implemented in India through CII EXIM Bank Award
for Business Excellence. Four SAIL plants i.e. BSP, DSP, BSL and RSP
participated for CII-EXIM Bank Award for Business Excellence 2012.
Three of these plants i.e. BSP, DSP and RSP got following Recognition
- BSP - Commendation award for Strong Achievement
- DSP - Commendation award for Strong Commitment to Excel
- RSP - Commendation award for Strong Commitment to Excel
Total Quality Management (TQM)
Most of our Plants and Units are certified to ISO 9000, ISO 14000,
OHSAS 18000 and SA 8000 Management Standards. During the financial year
2012-13, RSP was certified to Social Accountability Standard (SA 8000)
and DSP was certified to Information Security Standard (ISO 27000).
IT RELATED INITIATIVES
Your Company has been moving ahead in innovative usage of Information
Technology (IT). As a step towards this, Enterprise Resource Planning
(ERP) has been implemented stage wise at BSP, DSP, BSL, CMO and RSP
Manufacturing Execution System (MES) has been implemented at BSP''s 3
shops, namely SMS-2, Plate Mill and Rail Mill with the help of M/s
POSDATA. MES implementation has enabled detailed planning, scheduling
and status monitoring of orders at these shops.
Your Company has ensured that almost all payments are done through
e-payment mode and steps are being taken to establish a formal system
Capacities of digital network among SAIL''s Plants/Units have been
doubled in view of increased usage.
Your Company is currently taking steps to implement the following:-
- Centralized Mail Messaging for SAIL
- ERP at ISP, Burnpur
- Business Intelligence / Dashboards
- Centralized HR & Payroll on ERP Platform
SAIL along with production and profitability gives emphasis on
environment protection and considers clean environment practices a must
for its every activity. SAIL Corporate Environmental Policy emphasizes
''conducting our operations in an environmentally responsible manner to
comply with applicable regulations and striving to go beyond''. A
number of proactive environmental initiatives were taken by SAIL during
the year, yielding noteworthy improvements. The highlights are:
- Notable improvements in respect of the following Environmental
- PM emission load has reduced to 0.88 kg/tcs from 1.6 kg/tcs in
2008-09 which is a reduction of 45% in the last 5 years.
- Specific Water Consumption has reduced to 3.73 m3/tcs from 3.95
m3/tcs in 2008-09 which is a reduction of more than 5% in the last 5
- Specific effluent discharge from SAIL Plants has reduced to 2.22
m3/tfs from 2.56 m3/tfs in 2008-09 which is a reduction of more than
13% over the last 5 years.
- Utilisation of Blast Furnace (BF) Slag enhanced to 96% in the
financial year 2012-13, an enhancement of 16% utilisation of the BF
slag achieved over the last 5 years.
- As a part of Greening of Warehouses Initiative, Hyderabad Warehouse
and BTSO, Vizag were taken up for implementation of ISO 14001
Environment Management System during the year and have been awarded the
- The MoEF, SAIL and UNIDO have joined hands to implement a
Polychlorinated Biphenyls (PCB) management and disposal project at
Bhilai. PCBs are highly toxic chemicals. Under this project, the PCB in
electric transformers will be treated using appropriate technology to
be brought in by UNIDO.
Corporate Communication at SAIL helped the organization to achieve its
planned objective of building ''Brand SAIL'' by creating and maintaining
a vibrant, dynamic and responsive communication framework. Towards this
end, SAIL communication team undertook relation building with its
stakeholders by fostering dialogue between the Company and its
audience, both through internal and external communication.
Besides informing the stakeholders about the Company''s strategic plan,
your Company also took into account their feedback and suggestions,
thereby bridging a vital connect between the organization and its
stakeholders.Your Company maintained harmonic and transparent media
relation through organizing regular press conferences, interviews and
informal media meets.
While the Company reached out to its customers and vendors through
focused advertising, exhibitions, events and mutually beneficial meets,
its sponsorship and aid was governed by the motto of largest common
good. SAIL website stood unrivalled in the iron and steel industry,
grabbing as many as 6 lakh hits per month! The Company also sponsored
wrestlers like Sushil Kumar and Yogeshwar Dutt from their formative
years, who won the Silver and Bronze medals respectively at London
Olympics 2012. In March, 2013, SAIL along with SBI organized the 6th
edition of SAIL-SBI Open GolfTournament presented by Incredible
India,Ministry ofTourism, also the second longest running national Golf
Championship after Indian Open.
Your Company''s greatest asset, however, remained those thousands of
steel men and women who we call the SAIL family. Communication teams at
SAIL, along with respective HR divisions, arranged mass contact
exercise to facilitate free-wheeling discussion between employees and
management. The Company successfully launched an electronic version of
its monthly journal, e-SAILNews, which reaches out to maximum employees
at the least cost. Through tie-ups with local TV channels, employees''
families in township were kept abreast of daily happenings in Plant and
outside. In order to benchmark the communication practices with other
PSUs, regular interactions were organized with their PR Chiefs.
Posters, fliers, brochures, wall painting, wall-sheets, intranet,
journals etc were other conventional ways in which the Company went
SAILing with fellow employees and their universe. Because at SAIL, we
are many, but we are one.
SAILVigilance lays emphasis on preventive and proactive vigilance
activities to facilitate an environment enabling people to work with
integrity, efficiency and in a transparent manner, upholding highest
ethical standards for the organization.
Following activities were undertaken during the Financial Year 2012-13:
- To increase vigilance awareness amongst employees, vigilance
awareness sessions and workshops were regularly held at various Plants
and Units. 47 workshops involving 2945 participants were organized for
enhancing Vigilance Awareness on Purchase/Contract procedures, RTI Act,
Conduct & Discipline Rules, System and Procedures followed in SAIL,
- Periodic surprise checks including joint checks were conducted
regularly in vulnerable areas of the Company. A total of 3338 periodic
checks including file scrutiny and Joint Checks were conducted at
different Plants / Units. Savings of Rs.2556.95 lakhs accrued from
preventive vigilance activities mainly on account of Surprise Checks.
- Vigilance provides vital inputs to the operating authorities for
improving the prevailing systems for bringing about more
transparency.Accordingly,eight major System Improvement Projects (SIPs)
were undertaken at different Plants/Units of SAIL.
- 13 cases were taken up for Intensive Examination at different
Plants/ Units. During Intensive Examination, high value procurement /
contracts are scrutinized comprehensively and necessary recommendations
are forwarded to the concerned departments for implementing suggestions
- Various initiatives have been taken by SAIL Vigilance to increase
leveraging of technology in vigilance function. On-line submission of
Property Returns has been extended for all executives of SAIL in all
the Plants / Units during the year 2012. Further, on-line facility for
submission of Results Framework Documents (RFDs) for System Improvement
Projects (SIPs), Intensive Examination (IE) & Thrust Areas of SAIL
Vigilance and Preventive/Administrative recommendations of CVC/CVO has
been created. This helps in real time monitoring of these activities.
- On-line facility for submission of complaints has been created on
SAIL website. Facility of on-line feedback to the complainants along
with status of their complaints has also been created.
- To increase the impact of preventive vigilance activities in
improvement of overall functioning of organization, it has been decided
to improve the effectiveness and quality of surprise checks and file
scrutiny. Accordingly, Quality Management System Index followed
inVigilance departments of SAIL has been revised to include these
- ''Inspiration- Prerna'', an in-house publication of SAILVigilance is
being published regularly. The above publication contains case studies,
articles from eminent personalities, quiz on policy matters, etc. to
enhance awareness of the readers.
Based on its large and varied expertise and experience acquired over
the last five decades, SAIL, through SAILCON, provides design,
engineering, training, technical & management consultancy services in
Iron & Steel and related areas and offers a wide range of services to
clients Globally. Technical and Management Training services are its
forte and these services have been availed of by several organisations
in private and public sector within India and abroad. To scale up the
activities and to further reinforce the brand image of SAIL as a
consultant, SAILCON is continuously exploring the market, both within
and outside the Country for possible business opportunities as well as
joint ventures with Global consultants for commercialization of SAIL''s
''SAILCON'' has executed assignments within India and abroad covering
countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal,
During the Financial Year 2012-13, SAIL Consultancy Division, SAILCON
laid enhanced focus on taking up training assignments for some leading
organizations in the area of Steel making, by providing consultancy
services to UNDP/GEF, Project Management Cell, Ministry of Steel for
energy efficiency and productivity improvement in Steel re-rolling
MANAGEMENT DISCUSSION & ANALYSIS REPORT
The Management Discussion & Analysis Report covering the performance
and outlook of the Company is enclosed.
The Statutory Auditors'' Report on the Accounts of the Company for the
Financial Year ended 31st March, 2013 along with Management''s replies
thereon is placed at Annexure-I. The Comptroller & Auditor General of
India (C&AG) vide its letter dated 9th July, 2013 has given ''nil''
comments on the accounts of the Company for the Financial Year ended
31st March, 2013 under Section 619(4) of the Companies Act, 1956. A
copy of the above letter of C&AG is placed at Annexure-II.
Pursuant to the direction of the Central Government for audit of cost
accounts, your Company has appointed M/s. Jugal K. Puri & Associates,
Gurgaon for Rourkela Steel Plant (RSP) & Bokaro Steel Plant (BSL), M/s.
K.C. Kohli & Co, Delhi for Bhilai Steel Plant (BSP), Durgapur Steel
Plant (DSP) & IISCO Steel Plant (ISP) and M/s. Mani & Co, Kolkata for
Alloy Steels Plant (ASP), Salem Steel Plant (SSP) & Visvesvaraya Iron &
Steel Plant (VISP) as Cost Auditor(s) for the Financial Year 2012-13.
REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ETC.
Information in accordance with the provisions of Section 2l7(l)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, l988 regarding
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo is given at Annexure-III to this Report.
PARTICULARS OF EMPLOYEES
There was no employee of the Company who received remuneration in
excess of the limits prescribed under Section 2l7(2A) of the Companies
Act, l956 read with the Companies (Particulars of Employees) Rules,
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 2l7(2AA) of the Companies Act, 1956, it is hereby
(i) that in the preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures;
(ii) that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the Financial Year and of the
profit or loss of the Company for that period;
(iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(iv) that the Directors have prepared the annual accounts on a going
In terms of listing agreement with the Stock Exchanges, a compliance
report on Corporate Governance is given at Annexure-IV. A certificate
from Auditors of the Company regarding compliance of conditions of
Corporate Governance is placed at Annexure-V. In terms of Listing
Agreement, the Board has laid down a Code of Conduct for all Board
Members and Senior Management of the Company.The Code of Conduct has
been posted on the website of the Company. All the Board Members and
Senior Management Personnel have affirmed compliance with the Code.
BUSINESS RESPONSIBILITY REPORT
SEBI vide its Circular CIR/CFD/DIL/8/2012 dated August 13, 2012, has
mandated the top l00 listed entities, based on market capitalization of
BSE and NSE, to include Business Responsibility Report describing the
initiatives taken by the companies from Environmental, Social and
Accordingly, the Business Responsibility Report is attached at Annexure
VI and forms part of the Annual Report.
CONSOLIDATED FINANCIAL STATEMENTS
In terms of listing agreement with the Stock Exchange(s), the duly
audited Consolidated Financial Statements are placed at Annexure-VII.
IISCO-Ujjain Pipe & Foundary Company Limited, a wholly owned subsidiary
of the erstwhile Indian Iron & Steel Company Limited (IISCO), was
ordered to be wound up by BIFR. The Official Liquidator is continuing
its liquidation process. The assets of the Company have been realized
and the settlement of claims is in process.
The Company has three other wholly owned subsidiary companies namely,
SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant
Limited and SAIL Sindri Projects Limited. SRCL has taken over the Salem
Refractory Unit of Burn Standard Company Limited on 16th December, 2011
and is operating the same. SAIL Jagdishpur Power Plant Limited,
incorporated for setting up of Gas based power plant at Jagdishpur and
SAIL Sindri Projects Limited, incorporated for revival of Sindri Unit
of Fertilizer Corporation of India Limited are yet to commence
operations pending relevant approvals.
A Statement pursuant to Section 212 of the Companies Act, 1956 is
attached to the Accounts. In terms of general exemption granted by
Ministry of Corporate Affairs vide Circular No.5/l2/2007-CL-III dated
8.2.2011, under Section 212(8) of the Companies Act, 1956, the Audited
Balance Sheet, Profit and Loss Account, Report of the Board of
Directors and Auditors of our subsidiaries need not be attached with
the Balance Sheet of the Company as the Company has satisfied the
conditions stipulated in the Circular. However, the requisite
information as prescribed in the above Circular of Ministry of
Corporate Affairs in respect of the subsidiary companies has been
disclosed in the Statement.
The Annual Accounts of the subsidiary companies and related detailed
information shall be made available to the shareholders of the holding
and subsidiary companies seeking such information at any point of time.
Further, the Annual Accounts of the subsidiary companies are available
for inspection by any shareholder in the Registered Office of the
Company and of the subsidiary companies concerned during the office
hours between ll AM to l PM. A hard copy of the details of accounts of
subsidiaries shall be furnished to the shareholders on receipt of
Prof. Deepak Nayyar and Shri A.K. Goswami ceased to be Directors w.e.f.
Shri A.K. Pandey, Director (Raw Material & Logistics) ceased to be
Director w.e.f. 28.02.2013.
Shri Kalyan Maity has been appointed as Director (Raw Material &
Logistics) w.e.f. 01.03.2013.
Shri E.K. Bharat Bhushan, Special Secretary & Financial Advisor,
Ministry of Steel has resigned from the Directorship of the Company
Shri S. Mukherjee, Director (Commercial) ceased to be Director w.e.f.
Shri Vinod Kumar Thakral, Additional Secretary & Financial Advisor,
Ministry of Steel has been appointed as Director w.e.f. 04.06.2013.
Dr. Atmanand and Shri J.M. Mauskar have been appointed as Directors
The Board of Directors wish to place on record their appreciation for
the support and cooperation extended by every member of the SAIL
family. The Directors are thankful to the State Governments,
Electricity Boards, Railways, Banks, Suppliers, Customers and
Shareholders for their continued cooperation. The Directors also wish
to acknowledge the continued support and guidance received from the
different wings of the Government of India, particularly from the
Ministry of Steel.
For and on behalf of the Board of Directors
Dated: 16th August, 2013