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Steel Authority of India Directors Report, SAIL Reports by Directors
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Directors Report Year End : Mar '14    « Mar 13
The Members,
 
 The Directors have pleasure of presenting the 42nd Annual Report of the
 Company together with Audited Accounts for the Financial Year ended
 31st March, 2014.
 
 FINANCIAL REVIEW
 
 Your Company achieved a turnover of Rs.51,866 crore during the Financial
 Year 2013-14 (FY 14), which is higher by 5% over the turnover during
 the previous Financial Year. The Company registered an increase of
 20.6% in its Profit After Tax (PAT), to Rs. 2,616 crore in FY 14 up from
 Rs.2,170 crore in Financial Year 2012-13 (FY 13). The net worth of
 company improved substantially from Rs. 41,025 crore as on 31st March,
 2013 to Rs.42,666 crore as on 31st March, 2014 and this helped in
 generation of internal resources for funding expansion plans of
 Company.
 
 Higher production and sales along with lower cost of imported coal
 helped improve the bottom line, offsetting more than Rs. 1000 crore of
 additional wage provision made during the year on account of revision
 of wages/perks of non-executives pending w.e.f. 1.1.2012.  Profit for
 the year includes receipt of Rs.1056 crore from M/s Vale, Australia on
 account of a favourable arbitration/court award in case of a commercial
 dispute with SAIL. The comparative performance of major financial
 parameters during the Financial Years 2013-14 and 2012-13 is given in
 Management Discussion and Analysis Report.
 
 Your Company continued its thrust on optimum utilization 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, your Company hedged the foreign currency risk on Buyer''s
 Credit and repayment of External
 
 Commercial Borrowings depending on market conditions. The Company had
 liquid assets of Rs. 2500 crore as on 31st March, 2014 invested in
 short-term deposits with scheduled banks against borrowings of Rs. 25281
 crore as on 31st March, 2014. The debt equity ratio of the Company
 increased to 0.59:1 as on 31st March, 2014 as against 0.53:1 as on 31
 st March, 2013, mainly on account of increase in borrowings during the
 year to meet the capital expenditure requirements of the Company.
 Capital expenditure of Rs. 9,890 crore was made during the year, which
 was higher than the previous Financial Year.
 
 The Company paid Interim Dividend @ 20.20% of the paid-up equity share
 capital during the year, which is marginally higher than the total
 dividend of 20% paid in FY ''13. The Board has decided to treat this
 Interim Dividend as the total dividend for the year 2013-14. A sum of
 Rs.264 crore was transferred to the general reserves during the year
 (previous year Rs. 163 crore).
 
 Credit Rating
 
 M/s India Ratings & Research Pvt. Ltd. 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.
 
 PRODUCTION REVIEW
 
 Your Company produced 12.9 million tonnes (MT) of saleable steel in
 FY''14, registering an improvement of 4% over FY''13. Production of 14.5
 MT of hot metal and 13.6 MT of crude steel was also 1% higher each than
 corresponding period of last year (CPLY) respectively.  All-time best
 production of special quality & value added products of 5.42 MT was
 achieved, which was 6% higher than FY''13. Power Plants maintained the
 best ever power generation of 699 MW during 2013-14, with a growth of
 1% over last year.
 
 During the year SAIL took a major step forward on the modernization &
 expansion front, with the new 4060 m3 Blast
 
 Furnace (largest in the country) at Rourkela Steel Plant becoming
 operational since August, 2013. It marked a new chapter in the
 modernization and expansion of the company. Thereafter, other upcoming
 facilities at RSP have also been operationalized. From June, 2014, the
 entire integrated process route comprising the new Ore Bedding &
 Blending Plant, 360 sq.m. Sinter Plant, the 7 m tall Coke Oven Battery
 No.6, the 4060 m3 Blast Furnace No.7, the 3rd BOF, 2500 mm Slab Caster
 and the Plate Rolling facility in the New 1.0 Million tonne per annum
 Plate Mill are operational at RSP. Work in the finishing mill of the
 Plate Mill will be completed shortly. The production from these
 facilities is being ramped up. BSP experienced an incidence of gas
 leakage in the Pump House of Blast Furnace Gas Cleaning Plant on 12th
 June, 2014 resulting in loss of six precious lives. Causes of incident
 were thereafter analysed and remedial measures taken. The units were
 re-started within 7 days and were stabilised soon.
 
 Research & Development (R&D)
 
 Several initiatives have been undertaken for implementation of the
 ambitious R & D Master Plan of SAIL, initiated under three broad
 categories namely, Centre of Excellence(CoE) Projects, High Impact
 Projects (HIP) and Technology Missions (TM) Projects.
 
 The successes achieved under CoE Projects include, introduction of Roll
 Bite Lubrication System in all the finishing stands of Hot Strip Mill
 at Bokaro, increase in the average campaign life of Steel ladle in
 SMS-II, Bokaro Steel Plant from 80 to 89 heats using in-house SRU (SAIL
 Refractory Unit) bricks.
 
 Under High Impact Projects where headway has been made are,
 beneficiation of iron ore fines/Slimes, modification in CDI and Coke
 Ovens door system, Micro pelletisation of sludge and its re- use in
 Sinter Plant. For use of BF slag for road making, studies are being
 conducted with CRRI (Central Road Research Institute).
 
 The Technology Missions being pursued by your Company are mainly, thin
 strip casting and CRGO Steel production for which modalities for
 technology transfer are being worked out.
 
 Development of New Products
 
 Your Company is proud to be a part of India''s Defence Indigenisation
 initiatives, wherein its steel plants at Bhilai and Rourkela had
 jointly developed and supplied DMR-249 grade steel for India''s first
 indigenously developed aircraft carrier, Vikrant.  Maintaining this
 fervour for continuous improvement, your Company has developed several
 new products during the year, further enhancing its extensive product
 portfolio. The new products developed at different Plants are as
 follows:
 
 - Bokaro Steel Limited and Research and Development Centre for Iron and
 Steel (RDCIS) have jointly developed a Super Formable/High Strength
 Formable Steel specifically designed for producing cylinders in various
 shapes to service the export market. The new grade of steel will bring
 about more than 15% reduction in blank cylinder weight leading to a
 significant reduction in both manufacturing costs as well as the cost
 incurred in transportation and handling.
 
 - Bhilai Steel Plant has developed High Toughness Corrosion Resistant
 Rails to provide improved hardness and elongation and better fracture
 toughness in rails supplied to Indian Railways.
 
 - Durgapur Steel Plant has produced Aluminium killed IS 2062 E 410
 blooms to cater to the latest trend of using high strength steel
 members in electrical transmission towers to reduce weight and improve
 cost effectiveness.
 
 - SAIL has also introduced Earthquake resistant Fe 415S and Fe 500S
 grade TMT rebars complying with the IS 1786 standards, leading to TMT
 bars with better ductility and toughness as compared to ordinary TMT.
 
 Raw Materials
 
 During Financial Year 2013-14, total requirement of iron ore was met
 from captive sources. The Company''s captive iron ore mines produced
 about 25.32 million tonnes (MT). However, in case of coking coal,
 around 18% requirement was met from indigenous sources (Coal India
 Limited & captive sources) and balance through imports (11.36 MT).
 During 2013-14, production in captive collieries of the Company was
 about 0.69 million tonnes, out of which 0.58 million tonnes was raw
 coking coal and balance 0.11 million tonnes of non-coking coal. In case
 of fluxes, around 1.13 million tonnes of limestone and 1.05 million
 tonnes of dolomite was produced resulting in total production of 2.18
 million tonnes fluxes from captive sources. For thermal coal, your
 Company depends entirely on purchases from Coal India Limited except
 small quantity produced from captive mines.
 
 During 2013-14, production at Gua Iron Ore Mines resumed on 12th April,
 2013, after a gap of about two years, after obtaining forest and
 environment clearance from Ministry of Environment & Forest (MoEF),
 Government of India (GoI).  Further, on 4th March, 2014,
 
 MoEF, GoI granted Stage-I forest clearance for additional diversion of
 361.295 ha of forest land in Durgaiburu lease of Gua Mine, thereby
 making total diversion as 635.986 ha. Grant of the forest clearance has
 paved the way for capacity expansion of the Gua Mines from present
 level of 2.4 million tonnes per annum to 10 Million tonnes per annum.
 Letter of Acceptance (LoA) has been placed for main package of capacity
 expansion project.
 
 Approval of Odisha Govt. on the report of the Technical Committee
 regarding status of Karo-Karampada Elephant Corridor, in context of 5.1
 Sq. Mile lease of Bolani Mines in Feb''14, paved the way for continued
 operations in core iron ore bearing area of the lease and capacity
 expansion of Bolani Mine to 10 Million tonnes per annum (MTPA).
 
 For ensuring regular supplies of iron ore, capacities of existing iron
 ore mines are being expanded and new iron ore mines are being
 developed. Process for selection of Mine Developer-cum-Operator for
 development of Rowghat and Chiria iron ore mines has been initiated.
 
 In addition, new iron ore deposits in the States of Rajasthan,
 Chhattisgarh, MP, Maharashtra, Odisha and Karnataka are being explored.
 In this regard, Ministry of Mines, GoI, vide order dated 2.9.2013
 accorded its approval for grant of mining lease for iron ore associated
 mineral over 871.38 ha in village Dhul Khera, district Bhilwara,
 Rajasthan in favour of SAIL for a period of 30 years.
 
 Efforts are being made for allotment of new coking coal and thermal
 coal blocks under Government dispensation route.
 
 Hon''ble Supreme Court in its judgement passed on 16th May, 2014 in
 respect of the PIL regarding illegal mining in Odisha has expressed
 that in respect of mines where second and subsequent renewals are
 pending with State Government, the mining operations cannot be allowed
 without any express orders passed by State Government in terms of
 Section 8(3), MMDR Act, 1957. In view of this order, the mining
 operations of the mines of SAIL in Odisha viz.  Bolani, Barsua & Kalta
 running under the deemed extension provisions of Rule 24(A)(6) of MCR,
 1960 were suspended by Odisha Government during the period 17th May,
 2014 to 31st May, 2014, till the required express orders were issued by
 State Government of Odisha.
 
 Power Production and Consumption:
 
 SAIL met about 67% of its total average power requirement of 1050 MW
 through its own captive generation and the balance 33% power was
 purchased from outside, mainly from grid utilities. With an aim to
 reduce cost, the opportunity of cheaper power available in the Power
 Exchange was utilised and total 19.7 MU was purchased for Salem Steel
 Plant (SSP) from Indian Energy Exchange. This practice will be
 continued.
 
 The practice of gainful utilisation of surplus captive power available
 at one Plant through wheeling to other Plants was also continued during
 the year and about 25 MU was wheeled to Visvesvaraya Iron & Steel Plant
 (VISL) in Karnataka from Bhilai Steel Plant (BSP) in Chhattisgarh
 resulting in substantial cost benefits.
 
 With an aim to ensure the availability of enhanced requirement of
 reliable power after the completion of ongoing expansion, your Company
 is in the process of augmenting its captive generation facilities and
 Transmission & Distribution infrastructure. Power receiving substation
 at Rourkela Steel Plant (RSP) was upgraded to 220 KV GIS during the
 year and similar projects are under execution at Bokaro Steel Plant
 (BSL) and Chandrapur Ferro Alloy Plant (CFP). Additional captive
 generation capacity of 216 MW is under installation at various SAIL
 Plants. In addition, expansion of capacity by 1x250 MW at RSP and 2x20
 MW at Durgapur Steel Plant (DSP) is being carried out by NTPC-SAIL
 Power Company Private Limited (NSPCL), a JV Company of SAIL and NTPC.
 
 SALES AND MARKETING REVIEW
 
 Notwithstanding the challenging market conditions during the year in
 which the demand of steel in the country remained suppressed, your
 Company achieved a total sales volume of 12.07 million tonnes during
 the Financial Year 2013-14 registering a growth of 8.6% over Financial
 Year 2012-13. Product categories where major growth were recorded in
 domestic sales included: Plates: 12.7%, HR Coils: 7.8%, GP/GC: 23%.
 
 The Company exported 0.47 million tonnes of steel during FY''14,
 registering a growth of 28% over the previous year. New export markets
 were developed, such as Saudi Arabia for Blooms, Canada for Plates and
 Indonesia and Thailand for Slabs.
 
 The Company''s Rural Dealer network was further expanded to 1004 number
 of Rural Dealers, as on 31st March, 2014. With this, total number of
 SAIL dealers stood at 2,948 as on 1st April, 2014. Records Retail sales
 were achieved at 0.62 million tonnes, registering an increase of 14%
 over 2012-13.
 
 GROWTH PLAN
 
 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 14.4 million tonnes during the Financial
 Year 2013-14 to 23.5 million tonnes after expansion.  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 AND EXPANSION PROGRAMME
 
 Your Company is implementing Modernisation & Expansion Plan of its five
 Integrated Steel Plants at Bhilai, Bokaro, Rourkela, Durgapur &
 Burnpur. The modernization & expansion plan envisages increase in
 production capacity of Hot Metal from 14.4 million tonnes per annum to
 23.5 million tonnes per annum.
 
 Orders for about Rs. 59,288 crore have been placed (till Mar''14) under
 the current Modernisation & Expansion Plan of SAIL and a capital
 expenditure of Rs.53,270 crores has been made under this program till
 Mar''14. Facilities of about Rs.20,000 crore have been already
 operationalized till Mar''14. This includes facilities at SSP, Raw
 Material Handling Plant, Sinter Plant, COB-11 Complex, Wire Rod Mill at
 ISP and New Sinter Plant-3 at RSP.
 
 Further, during FY''14, production commenced from several new facilities
 such as New Ore Bedding & Blending Plant, New Coke Oven Battery No.6
 Complex including Coal Handling Plant, 3rd Single Strand Caster at RSP;
 Coke Oven Battery No.2 at DSP; 2nd Sinter Machine in SP-3 at BSP. A
 major achievement was recorded with the new 4060 m3 blast furnace
 (largest in the country) at RSP operationalized from August''13. The
 production has been ramped up from the furnace since then.
 
 SAIL Board accorded ''in-principle'' approval during the year for various
 new Projects with an estimated total outlay of around Rs. 7,862 crore
 during the year.
 
 A capital expenditure of Rs. 9,890 crore was incurred during the
 Financial Year 2013-14 on this account and capex planned during 2014-15
 is Rs. 9,000 crore.
 
 The details of the Additions, Modification & Replacement (AMR) Schemes
 under implementation are given in the Management Discussion & Analysis
 (MD&A) Report.
 
 HUMAN RESOURCE MANAGEMENT REVIEW
 
 Your Company 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.
 
 Enhanced Productivity with Rationalized Manpower
 
 Your Company achieved the highest ever Labour Productivity (LP) of 278
 tonnes of crude steel (TCS)/Man/Year in 2013-14.  The manpower strength
 of SAIL was 97897 nos. (as on 31.03.2014) with manpower rationalization
 of 3981 nos. achieved during the year.  The enhanced productivity with
 rationalized manpower could be achieved as a result of judicious
 recruitments, redeployment strategies, multi-skilling, building
 competencies and infusing a sense of commitment and passion among
 employees to excel. Trend of enhanced productivity and manpower
 rationalization since 2003-04 onwards is depicted below:
 
 Developing Employee Capabilities & Competencies
 
 In order to develop its human resources for harnessing their potential
 and for according ample opportunity to employees 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, 47187 employees were trained against target of 41340
 employees during the year on various contemporary technical and
 managerial modules.
 
 Harmonious Employee Relations
 
 - Your Company has a glorious tradition of conducive and fulfilling
 employee relations environment. The healthy practice of settling the
 issues through discussions with trade unions/workers'' representatives
 enabled workers'' participation at different levels and facilitated in
 establishing a peaceful IR climate. The Company has an established
 system of worker''s 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 establishing a
 conducive work environment.
 
 - Bipartite forums like National Joint Committee for Steel Industry
 (NJCSI), 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
 Plants/Units, marked with diverse work culture at multi-locations.
 
 - In addition, Quality Circles, Suggestion Schemes, Shop specific
 Performance Improvement Workshops also offer multiple avenues for
 enhanced workers'' participation.  Workers are also kept abreast of
 strategic business decisions and their views sought through
 structured/interactive workshops.
 
 - Communication with employees at various levels concerning wide range
 of issues impacting the Company''s performance as well as those related
 to employees'' welfare is carried out in a structured manner across the
 Company. Mass communication campaigns are undertaken at the level of
 Chief Executive Officers (CEO)/Senior Officers'' of the Plants involving
 structured discussion with large group of employees.  These interactive
 sessions help employees to align their working with the goals and
 objective of the Company leading to higher production & productivity
 and enhanced employee engagement.
 
 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 involvement of employees, trade unions and
 associations. Joint grievance committees have been set up at Plant/Unit
 level for effective redressal of grievances.
 
 - The grievances are dealt through a 3 stage grievance handling system
 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. 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 management.
 
 - There were 44 grievances pending for redressal as on 31.03.2013.
 Number of grievances received during the period from 01.04.2013 to
 31.03.2014 were 1127. During the year, 1157 grievances were disposed
 off and 14 grievances were pending for redressal as on 31.03.2014.
 
 INITIATIVES FOR SOCIO-ECONOMIC DEVELOPMENT OF SCs /STs and OTHER WEAKER
 SECTIONS OF SOCIETY
 
 Your Company follows Presidential Directives on Reservation for
 Scheduled Castes (SCs) and Scheduled Tribes (STs) in the matter of
 recruitments & promotions. As on 31st March, 2014, out of total
 manpower of 97897, 15.95% belong to SC category and 13.77% belong to ST
 category.
 
 SAIL steel plants and units including mines are located in economically
 backward regions of the country with predominantly SC/ST population.
 SAIL has contributed to the overall development of civic, medical,
 educational, recreational and other facilities in these regions.
 
 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:
 
 - No tuition fee is charged from SC/ST students studying in the
 
 Company run schools, irrespective of whether they are SAIL employees''
 wards or non-employees'' wards.
 
 - 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.
 
 - SAIL Plants have adopted 15 children from nearly extinct Birhor
 Tribe. They are being provided free education, boarding, lodging and
 medical facilities for their overall growth.
 
 - Villagers are given free outdoor and indoor treatment in the SAIL
 hospitals located at Kiriburu, Gua & Chiria Mines after recommendations
 by Manki / Munda (Local Tribal Village Heads) of the peripheral
 villages.
 
 Initiatives towards propagating awareness about Reservation Policy
 
 - Internal workshops for Liaison Officers for SC/ST and other dealing
 officers of SAIL Plants/Units are conducted at regular intervals
 through an external expert to keep them updated on the reservation
 policy for SC/ST and other related matters.
 
 - A meeting with SAIL SC/ST Employees'' Federation under the
 Chairmanship of Director (Personnel) was organized on 18th June, 2013
 at Rourkela. Federation members were apprised about the position and
 the challenges faced by the Company.  Meeting was followed by a two-day
 workshop on reservation matters for the members of the Federation.
 
 - A Workshop on reservation for SC/ST/OBC/PWD was organized on 20th and
 21st of June, 2013 at Rourkela. The workshop was attended by 40
 executives from different Plants and Units of SAIL and it has assisted
 in disseminating the nuances of implementation of guidelines on
 reservation policy.
 
 - Dr. Rameshwar Oraon, Hon''ble Chairperson, National Commission for
 Scheduled Tribes visited RSP during 9th -11th September, 2013 and
 reviewed implementation of Reservation Policy in respect of STs. He
 appreciated the efforts of SAIL/RSP towards the overall development of
 peripheral population which predominantly comprises of SC/ST.
 
 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(PIO)/Asstt. Public Information Officers (APIO),
 Appellate Authorities and Transparency Officer under Section 5 &
 Section 19(1) of RTI Act in each Plant and Unit for speedy redressal of
 the queries received under the Act.
 
 The provisions under the Act are being complied with by all Plants and
 Units of SAIL. All statutory reports including Annual Report are sent
 to Ministry of Steel and are also posted on SAIL website.  Under Sec.
 5(5), all the officers/ line managers responsible for providing
 information to the PIO, called Deemed PIO, have been made equally
 responsible as PIO towards timely providing of information to the
 applicant.
 
 All Plants/Units of SAIL have listed 17 manuals and details of
 designated officials in line with the provisions of the RTI Act has
 been uploaded on SAIL website. Your Company has also institutionalised
 an exclusive RTI Portal for better awareness and knowledge sharing.  In
 all, a total number of 4940 applications and 942 appeals were received
 under RTI Act, during the Financial Year 2013-14 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 MoU Rating for the
 year 2012-13 for the 11th consecutive year.
 
 - Chairman, SAIL has been adjudged ''CEO of the year'' by Platts at the
 2014 Platts Global Metal Award.
 
 - SAIL employees won 18 out of 28 Viswakarma Awards declared in 2013,
 which is the highest for any organization amongst both private and
 public sector.  In terms of number of employees, 76% awardees in the
 country were from SAIL.
 
 - 6 out of 16 Shram Awards declared in the country in 2013 for Public
 Sector were won by SAIL employees. This was also the highest number for
 any organization amongst both private and public sector. In terms of
 number of employees, 50% awardees in the country were from SAIL.
 
 - In the international Quality Meet at Taipei, Taiwan during October,
 2013, 5 Quality Circle teams consisting of 29 SAIL employees won Gold
 Medals.
 
 - BSP/SAIL was awarded the prestigious PM''s trophy for the Best
 integrated Steel Plant (2011-12) for the 11th time (out of 20 times
 awarded).
 
 - SAIL bagged Indira Gandhi Rajbhasha Shield for best implementation of
 official language in ''A'' (Hindi-speaking) region by Ministry of Home
 Affairs, Government of India.  This award was conferred by Hon''ble
 President of India on Hindi Diwas i.e. 14th Sept''13.
 
 - SAIL bagged the Gold Trophy for SCOPE Meritorious Award for
 Environmental Excellence & Sustainable Development for the year
 2012-13.
 
 - SAIL was conferred with ''Employer Federation of India National Award
 2013'' for Excellence in Industrial Relations at Mumbai on 25th October,
 2013.
 
 - SAIL has been awarded with ''Commendation Certificate for Strong
 Commitment to HR excellence'' by CII in the 4th CII National HR
 Excellence Award 2013 held on 24th September, 2013 at New Delhi.
 
 - Top prize in the ''National Energy Conservation Awards 2013'' was
 awarded by Hon''ble President of India Shri Pranab Mukherjee on 16th
 December, 2013 in recognition of ''Systematic and serious efforts made
 by BSP for efficient utilization and conservation of energy during the
 last two years''.
 
 - Town Official Language Implementation Committee (NARAKAS), PSU-Delhi,
 under the Chairmanship of SAIL has been awarded the Ist prize for the
 best performance in implementation of Rajbhasha in northern region. The
 award was presented by Hon''ble Governor of Punjab Mr. Shivraj Patil on
 31st March, 2014 at Chandigarh.
 
 - Ispat Rajbhasha Shield (Ist prize) awarded by Hon''ble Minister of
 Steel on 24th February, 2014 at Lucknow for best implementation of
 Official Language in SAIL.
 
 - In recognition of excellent implementation of Official Language in
 SAIL, NARAKAS Rajbhasha Shield (IInd prize) was awarded by Secretary,
 Rajbhasha, Govt of India on 21st February, 2014 at New Delhi.
 
 - Ispat Bhasha Bharati, the Hindi House Journal of SAIL has been
 adjudged as the best magazine among all PSUs for the year 2012-13 by
 Town Official Language Implementation Committee, Delhi on July 29,
 2013.
 
 - India Pride Award 2013-14 for Excellence in CSR under Central Public
 Sector Undertakings was awarded by Union Minister of Human Resource
 Development on 19th December, 2013 at New Delhi.
 
 - ''Company with Best CSR & Sustainability Practices Award - 2013''
 conferred upon SAIL by Asian Centre for Corporate Governance &
 Sustainability.
 
 - SAIL won the ''ICC PSE Excellence Awards 2013'' under Corporate Social
 Responsibility & Sustainability in Maharatna & Navratna Award Category.
 The award was conferred upon SAIL by Advisor to the Prime Minister and
 Secretary, DPE on 16th December, 2013 at New Delhi.
 
 - ''SKOCH Corporate Leadership trophy'' was awarded to Chairman, SAIL by
 Union Finance Minister in the 34th SKOCH Summit held on 12th November,
 2013 at New Delhi.
 
 - SAIL won ''SKOCH Order-of-merit Award'' in 3 award categories i.e. HRD,
 Environment Management and Sustainability on 11th November, 2013 at New
 Delhi.
 
 - Jury award for ''Lasting Impact on Indian Economy'' at Governance (Now
 PSU Awards-2013) conferred upon SAIL
 
 Chairman by Union Minister of Heavy Industries, Sh. Praful Patel on
 July24, 2013 at New Delhi.
 
 - SAIL bagged ''e-INDIA PSE Awards-2013'' in the field of Education for
 the project Special Schools for the Underprivileged on 23rd July,
 2013.
 
 - SAIL has been awarded Responsible Business Awards-2013 in the
 category ''CSR Leadership Award'' by World CSR Day in June, 2013.
 
 - Chairman, SAIL has been conferred with ''Star PSU CMD of the year
 Award'' for outstanding performance under the Maharatna category in
 BT-Star PSU Excellence Awards-2013.
 
 - SAIL has won ''Randstad Award 2013 at Bangalore on 18th April, 2013.
 
 - SAIL bagged two prizes in Regional Rajbhasha Conference held by MoH
 in Chandigarh on 5th June, 2013; one for best implementation of
 Rajbhasha at regional level and another for conducting the activities
 of the NARAKAS in excellent manner.
 
 Bhilai Steel Plant
 
 - INSAAN Award – First prize for Excellence in Suggestion Scheme
 (Theme: Institutionalizing innovation) for the year 2013.
 
 - BSP, SAIL won ''Commendation Certificate'' for significant role played
 in promoting Business Excellence in India for the year 2013 in the 21st
 CII National Quality Summit at Bangalore on 8th November, 2013.
 
 - Nandini Mines of BSP won 5 prizes for Mineral conservation and
 Environment.
 
 - Greentech Environment Award (Gold) for the year 2012-13 by Greentech
 Foundation.
 
 - Bhilai/Durg TOLIC won first prize in the central region for best
 implementation of Rajbhasha during 2012-13 by Rajbhasha Deptt. Central
 Region.
 
 - Golden Peacock Sustainability Award for sustainability initiatives
 during Assessment Year 2012-13 by Institute of Directors – New Delhi.
 
 - ''IIM National Sustainability Award'' for 2012-13 by Indian Institute
 of Metals, Kolkata.
 
 Bokaro Steel Plant
 
 - BSL was conferred with Commendation for Strong Commitment to Excel by
 CII-Exim Bank.
 
 - CII (ER) Productivity Award 2013-14 in Group ''C'' by CII (ER).
 
 - Second prize for implementation of Rajbhasha Hindi in ''D'' Category
 States in Eastern Region by Deptt. of Official Languages, Govt. of
 India in March 2014.
 
 - Greentech Environment Award (Gold) and Greentech CSR Award (Silver)
 for the year 2012-13 by Greentech Foundation.
 
 Durgapur Steel Plant
 
 - DSP was conferred with Commendation for Strong Commitment to Excel by
 CII Exim Bank.
 
 - Certificate of Merit awarded to DSP by CII Eastern Region for Energy
 Conservation
 
 - Greentech Environment Award (Gold) and Greentech CSR Award (Silver)
 for the year 2012-13 by Greentech Foundation.
 
 - Greentech Safety Award 2013 (Silver) for year 2012-13 by Greentech
 Foundation, New Delhi.
 
 - Srishti Good Green Governance Award 2012 for Environment (Runner up)
 by Srishti Publications, New Delhi for the year 2012-13.
 
 - ''Commendation Certificate'' under the ''Large Scale Manufacturing –
 Metallurgical'' category of Rajiv Gandhi National Quality Awards, 2011
 on 26th April at New Delhi.
 
 - Greentech HR Award 2013 (Silver) for training excellence at 3rd
 Annual Greentech HR Awards ceremony held at Goa.
 
 Rourkela Steel Plant
 
 - Award in three categories viz. Best CSR Practices, Women''s
 Empowerment and Support & Improvement in Quality of
 
 Education was awarded to RSP at the World CSR Congress & World CSR Day
 held at Mumbai in Feb.''14 during Global CSR Excellence and Leadership
 Award Presentation Ceremony.
 
 - Certificate of Commendation was awarded to RSP in the ''CII ITC
 Sustainability Award 2013'' for significant achievement in the journey
 towards Sustainable Development.
 
 - Greentech Environment Award (Gold) for the year 2012-13 by Greentech
 Foundation at Chandigarh on 29th-30th January, 2014.
 
 - Golden Peacock Environment Management Award 2012.
 
 - CII-EXIM Bank Award 2012-13 for strong commitment towards excellence
 in November, 2013.
 
 - CSR Leadership Award in the Think CSR Forum jointly organized by
 Telfa''s, the Times of India and Think Foundation in August, 2013.
 
 - Champion''s Award for Employee Engagement in June, 2013 by INSAAN.
 
 - Srishsti Good Green Governance Award, 2011 received 4th times in a
 row in June''13.
 
 - Ispat Suraksha Puraskar-2010 for no fatal accident in two areas,
 namely, Coal, Coke & Chemicals Zone and the Blast Furnace, Slag
 Granulation Plant, Sinter Plants & Raw Materials Department Zone by
 Joint Committee on Safety, Health and Environment of the Steel Industry
 in June, 2013
 
 Raw Materials Division
 
 - Greentech CSR Award (Gold) was awarded to RMD for the year 2012-13 by
 Greentech Foundation at Chandigarh on 29- 30th January, 2014.
 
 - Quality circle team of Bolani Ores Mines bagged the Quality Circle
 Award at Taipei, Taiwan in October, 2013 for its innovative project on
 ''Eliminating overloading problem of conveyor LC-2 at Bolani Ore Mines
 
 - Barsua Iron Mines was awarded with 2nd Prize in Use of Mechanized
 Beneficiation Equipments and 3rd Prize in SAIL''s in house magazine
 Ispat Bhasha Bharti awarded Rajbhasha Shield in a function of TOLIC in
 New Delhi, where Chairman SAIL Mr CS Verma and Ms Nita Chowdhury,
 Secretary (Rajbhasha), Govt of India, honouring senior Hindi writer and
 critic Professor Kedarnath Singh with NARAKAS Sahitya Samman
 
 Publicity & Propaganda in the Mines Environment & Mineral Conservation
 Week 2013-14
 
 Alloy Steels Plant
 
 - Greentech Environment Award (Silver) was won by ASP for the year
 2012-13 by Greentech Foundation at Chandigarh on
 
 29th-30th January, 2014.
 
 Salem Steel Plant
 
 - 26 employees of Salem Steel Plant have won State Shram Award
 announced by Directorate Safety and Health, Govt. of Tamil Nadu
 recognizing outstanding suggestions implemented in the work area. SSP
 also bagged 3 safety awards.
 
 - SSP won National Sustainability Award (Second Prize) for the year
 2012-13 from Indian Institute of Metals, Kolkata amongst the Secondary
 Steel Plants/Alloy Steel Plants category consecutively for the 10th
 time and 17th time since inception.
 
 SAIL Refractory Unit
 
 - 2nd Prize in Official Language Implementation in Eastern Region.
 
 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT
 
 Steel Authority of India Limited - the Maharatna Steel Company, has
 adopted a balanced approach towards inclusive growth, consistent with
 socio-environment. Your Company, during 2013-14, continued to focus on
 helping the downtrodden, the underprivileged with its development
 oriented CSR projects in the area of Medical and Healthcare, Education,
 livelihood generation etc.
 
 Specialized and basic healthcare facilities either completely free or
 at very nominal charges are being provided to needy and underprivileged
 living in the vicinity of Pants/Units through 57 Primary Health
 Centres, 21 Hospitals, 7 Reproductive & Child Health Centres and 7
 Super-Specialty Hospitals created by SAIL.  More than 38.61 million
 people have benefited so far by availing the healthcare facilities
 being provided by SAIL.
 
 Seven health centres (Kalyan Chikitsalaya) have been established
 exclusively for BPL families at Plants location which provide free OPD
 facilities & medicines to poor and needy families. Over 90,000 people
 were treated at these Kalyan Chikitsalayas in 2013-14.
 
 SAIL has continuously been providing basic medical services to the
 rural populace residing in its peripheral villages.  Around 3000
 medical camps were organized during 2013-14 in the vicinity of its
 Plants/Units to provide medical facilities to such people in their
 neighbourhood itself. More than 2 lakh people received the medical
 facilities in these camps in 2013-14.
 
 SAIL has created infrastructure for enhancing availability of safe
 drinking water for people living in far-flung areas, by installing over
 7625 water sources. By virtue of these facilities created by SAIL,
 42.70 lakh people have gained access to drinking water through
 improvement in availability of potable water resources at rural and
 water deficit locations.
 
 In order to promote sanitation and hygiene in peripheral villages, RSP
 has completed the project ''Comprehensive Water & Sanitation Facilities''
 in five peripheral villages – Chutiatola, Dumerjore, Ushra Colony,
 Baniguni & Jagdishpur benefiting 621 households.
 
 Your Company firmly believes that only an enlightened and well informed
 citizen can play a constructive role in the progress of society.
 Company owns and maintains over 129 schools in its Steel townships for
 providing modern education to more than 59,000 children, besides
 actively providing assistance to over 629 schools with over 92,000
 students. Seven Special Schools (Kalyan Vidyalaya), exclusively for BPL
 families established at Steel Plants locations, are providing free
 education, mid-day meals, uniform including shoes, text books,
 stationery items, school bags, water bottles and transportation to
 around 1,600 students. Scholarships to deserving undergraduate and
 postgraduate engineering students, adoption of tribal children from
 Maoist insurgency affected areas, nearly extinct Birhore tribes,
 sponsoring youth for Industrial Training and Nursing course, etc. are
 some of the major steps taken for uplifting poor, OBC, SC, ST, etc.
 Saranda Suvan Chhatravas - a fully residential complex at Kiriburu
 Mines has been set up for providing education and residential
 facilities to students belonging to areas affected by Maoist
 insurgency.
 
 SAIL in association with Akshya Patra Foundation is providing Mid-Day
 Meal to students of Govt. schools in and around Bhilai and Rourkela.
 Under this scheme, healthy & nutritious meal is being provided to more
 than 73000 students of around 550 Govt. schools every day.
 
 SAIL has carried out construction of new roads/pathways and also
 undertaken repairs of damaged road/pathways in rural areas thereby
 providing connectivity for facilitating reach of education and
 healthcare amenities to over 77.04 Lakh people across 435 villages.
 
 In order to bridge the disparity between rural and urban areas and
 bring about holistic development of both physical and social
 infrastructure, 79 villages have been developed as Model Steel
 Villages across the country (in eight states).
 
 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.
 
 People of remote forest areas are deprived of basic infrastructural
 i.e.  medical care, education and other essential requirements of
 livelihoods. The dense reserve forest of Saranda wherein SAIL''s mines
 are situated is one of such deprived region where people face real
 hardships of life. Being a responsible corporate entity and to bring
 the marginalized masses of this remote forest area to the mainstream of
 development, SAIL in association with Ministry of Rural Development,
 Govt. of India has undertaken a developmental plan for the benefit of
 habitants of Saranda forest region.
 
 Under the Saranda Development Plan, SAIL has distributed bicycles,
 transistors, solar lanterns (seven thousand each) to the people of
 region and established an Integrated Development Centre (IDC) at Digha
 village in Saranda forest, West Singhbum District, Jharkhand consisting
 of a Hospital, Anganwadi Centre, Bank, Forest & Agriculture office,
 Ration shop, Community Hall, Accommodation Complex for civil official
 and a Community kitchen.
 
 SAIL, as a responsible corporate citizen, supported the rehabilitation
 initiatives for the people affected by Flash Floods in Uttarakhand and
 Phylin cyclone in Odisha by contributing Rs.1 Crore and Rs.20 Crore,
 respectively.
 
 Vocational training has been provided in areas such as Improved
 agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Piggery,
 Achar/Pappad/Agarbatti making, Welder, Fitter and Electrician Training,
 Sewing and embroidery, Smoke less chullah making etc.  as a means to
 livelihood in a dignified manner.
 
 Vocational Training centre for rural and unemployed youths – ''Bhilai
 Ispat Kaushal Kutir'' and ''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.
 
 Besides running Vocational Training Institutes (VTI), SAIL is
 supporting vocational training of the local youth at other ITIs/ITCs/
 VTIs. RSP, ISP & RMD supported ITI/ITC training of more than 700 youths
 at ITC, Bargaon, (under the rehabilitation/prevention program for the
 left wing extremists ) & ITCs at Rourkela.
 
 For promoting the local art and culture, Chhattisgarh Lok Kala Mahotsav
 and Gramin Lokotsav are being organised every year. To promote local
 culture and games, Gramin Lokotsavas and Gramin Athletics Competition
 were organised by SAIL at different locations throughout the year.
 
 SAIL''s efforts as a responsible corporate citizen in Nation building
 have been recognized at various forums in the form of numerous awards
 and accolades received by the Company which are tabulated along with
 other awards in Awards & Accolades Section reported earlier.
 
 CITIZEN CHARTER
 
 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
 services.
 
 - Ensuring effective citizen communication channels.
 
 - Demonstrating transparency and openness of its business operations by
 hosting the Citizen''s Charter on the Corporate website.
 
 - 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 2013-14, your Company continued to give
 impetus towards taking new business initiatives, including mergers and
 acquisitions, establishing new strategic alliances with renowned
 companies, ensuring raw material security through acquisition of
 potential opportunity, as well as diversifying in allied areas for
 meeting its long-term strategic objectives. Your Company has
 established communication with renowned international technology
 providers for forging strategic alliances, in alternative iron and
 Steel technologies, as well as 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.
 
 The strategic initiatives taken by your Company include: Merger and
 Acquisitions (M & As):
 
 Your Company has taken up with Ministry of Commerce/ Government of
 India for possibility of acquiring majority stake in Neelachal Ispat
 Nigam Limited (NINL) in Jajpur, Odisha. SAIL has reiterated its plan to
 develop NINL into a 5 million tonne per annum (mtpa) Steel Plant, in
 phases, from the current capacity of 0.9 mtpa.
 
 Joint Ventures / Memorandum of Understanding (MOU) :
 
 1.  Development of Hajigak Iron Ore Deposits in Afghanistan:
 
 The SAIL-led consortium AFISCO (Afghan Iron and Steel
 
 Consortium) comprising of SAIL, NMDC, RINL, JSW Limited, JSPL, JSW
 Ispat Limited and Monnet Ispat and Energy Limited was selected as the
 ''Preferred Bidder'' for blocks B, C and D of the Hajigak Iron Ore 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 is carrying out contract
 negotiations with the Ministry of Mines and Petroleum of the Islamic
 Republic of Afghanistan.
 
 2.  Alternate technologies in Iron and Steel Making : Your Company is
 jointly exploring with Kobe Steel, Japan for installation of an ITmK3
 technology based 0.5 MTPA Iron Nugget Plant at ASP, Durgapur. A Joint
 Venture Company SAIL-Kobe Iron India Private Limited has already been
 incorporated. The Detailed Project Report is under preparation.
 
 3.  Revival of operation of SAIL SCL Kerala Ltd. (SSKL), Kozhikode :
 The management of erstwhile Steel Complex Limited, a BIFR registered
 Company was taken over by SAIL, after its release from BIFR, in 2010,
 and converted into a Joint Venture Company, namely SAIL-SCL Kerala
 Limited with SAIL and Government of Kerala having equal shareholding.
 The Joint Venture Company has initiated the process for installing
 65000 tpa TMT rolling mill in the premises.
 
 4.  In pursuance to signing of the Joint Venture Agreement with Burn
 Standard Company Limited (BSCL), a Public Sector Unit under Ministry of
 Railways, for setting up a Wagon Components Manufacturing Facility at
 the premises of BSCL at Jellingham, Purba Medinapore District, in West
 Bengal, with capacity to produce 10,000 bogies and couplers per annum,
 a new Joint Venture Company SAIL Bengal Alloy Castings Private
 Limited was incorporated on 12th February, 2013. Work for preparation
 of Detailed Project Report (DPR) for the Project has been initiated.
 
 5.  SAIL had formed a Joint Venture Company (JVC) with RITES viz. SAIL
 RITES Bengal Wagon Industry Pvt. Ltd. (SRBWIPL), to manufacture 1200
 wagons and undertake rehabilitation of 300 number of wagons per year at
 Kulti, West Bengal. Project related activities are under progress,
 including installation and erection of equipment. The JVC is likely to
 start commercial production by this year end.
 
 6.  Your Company has signed an MOU with Industrial Development
 Corporation of Odisha Ltd. (IDCOL) for exploring the possibility of
 acquisition of/Joint Venture with its wholly owned subsidiaries IFCAL
 (IDCOL Ferro Chrome Alloys Ltd.) and IKIWL (IDCOL Kalinga Iron Works
 Ltd.).  Based on detailed due-diligence and approval by the SAIL Board,
 financial bid for acquisition of 100% equity stake in IKIWL and 51%
 equity stake in IFCAL has been submitted on 30.08.2013. Negotiations
 are ongoing with Inter Departmental Core Group (IDCG) of Govt. of
 Odisha.
 
 BUSINESS EXCELLENCE – INITIATIVES
 
 Enterprise Score Card (ESC)
 
 Third Enterprise Scorecard (ESC) of SAIL was prepared for the Financial
 Year 2013-14 comprising of 75 Strategic Objectives; 17 in Financial
 perspectives, 9 in Customer perspectives, 29 in Internal Business
 Process perspectives and 20 in Organisational Capability Building
 perspectives. 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 through Strategic Objectives and Key
 Initiatives.  Enterprise Scorecard was deployed downwards through Unit
 Scorecards, Functional Scorecards and Departmental Scorecards and
 addressed the long-term and short-term issues. Enterprise Scorecard for
 2014-15 has also been completed.
 
 Excellence Model
 
 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 in the process for CII-EXIM Bank Award for Business
 Excellence 2013. These Plants got following Recognition awards:
 
 BSP – Commendation award for Strong Achievement.
 
 DSP – Commendation award for Strong Commitment to Excel.
 
 RSP – Commendation award for strong Commitment to Excel.
 
 BSL – Commendation award for Strong Commitment to Excel.
 
 Your Company was also conferred a Special Award by CII for Significant
 role played in promoting Business Excellence in India during the
 National Quality Summit organized by CII.
 
 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
 2013-14, three Certification Agencies have been empanelled through open
 tender for three years for audit across SAIL Plants/Units for ISO 9000,
 ISO 14000, OHSAS 18000 and SA 8000. This would also facilitate gradual
 implementation of Integrated Management System in Plants.
 
 IT RELATED INITIATIVES
 
 Your Company has embraced Information Technology (IT) enabled services,
 applications and tools in all its Plants and Units for improvement in
 productivity, yield, quality, reduction in operational costs and
 improvement in internal and external customer satisfaction.
 
 As a step towards this, Enterprise Resource Planning (ERP) has been
 implemented stage wise in 4 Integrated Steel Plants i.e. Bhilai Steel
 Plant, Durgapur Steel Plant, Bokaro Steel Plant, Rourkela Steel Plant
 and the process of ERP implementation has been initiated at
 5thIntegrated Steel Plant i.e. IISCO Steel Plant. Central Marketing
 Organisation (CMO) ERP has already covered 100% primary domestic sales
 by 2013.
 
 The Manufacturing Execution System (MES) technology was implemented at
 Bhilai Steel Plant and its deployment over marketing network has
 facilitated customers in placement of optimal orders in terms of
 quality, size and quantity.
 
 Electronic facility of receiving online payment has been launched with
 collection of medical insurance premium from ex-employees of SAIL and
 is being extended to other receivables.
 
 Provision of centralized visibility of bill payment status of all
 external vendors/suppliers is made available through SAIL Corporate
 Portal.
 
 To ensure data and information security, steps have been taken at all
 SAIL Plants/Units and Durgapur Steel Plant has obtained ISO 27001:2005
 Information Security Management System (ISMS) certificate.
 
 ENVIRONMENT MANAGEMENT
 
 Your Company assumes its responsibility to honour and adhere to the
 applicable laws of the land pertaining to environment. In order to
 attain the compliance with environmental laws, your Company has
 established separate department on environment at all the Plant/Units.
 Besides, it has an Environment Management Division at the corporate
 level.
 
 The Company is also complying with all the forestry laws as per the
 laid down conditions. In addition to this, conditions imposed by the
 State Government(s) are also complied with.
 
 The ongoing Modernization and Expansion programme of the Company, apart
 from increasing the production capacity, also envisages installation of
 more efficient & environment friendly technologies and incorporation of
 latest pollution control technologies and equipment. The Company is
 spending about Rs.5000 crore on pollution control scheme out of the total
 outlay of about Rs.72000 crore for the on-going Modernization and
 Expansion programme. Various environmental protection and conservation
 measures being undertaken by the Company are mentioned in MD&A Report.
 
 CORPORATE COMMUNICATION
 
 Corporate Communications initiatives for the year 2013-14 have been
 strategically aligned with objectives of your Company for the year. A
 number of new activities and projects have been taken up this year in
 order to enhance and strengthen the image of Brand SAIL amongst the
 various stakeholders.
 
 Your Company''s communication with the various target audience was
 strengthened through various channels by regularly informing our
 stakeholders about various initiatives through press releases, press
 meets, one-to-one interactions with media within India and
 internationally. Key highlights of SAIL''s achievements throughout the
 year, such as your Company''s Modernization and Expansion plan, higher
 volumes of production and sales, development of value added products,
 engaging our customers, etc. were some of the news items that generated
 positive coverage for your Company.
 
 Your Company made focused efforts to engage and interact with the
 employees across our Plant/Unit locations as matter of strategy, to
 build a sustainable organization.  The objectives and achievements of
 the organization were communicated to the employees through
 multilayered framework like messages of Management, in-house television
 channels, video-conferencing, face-to-face communication and
 newsletters etc. In order to instill a greater feeling of ownership,
 drive and sense of pride amongst employees of your Company, a new
 initiative – My SAIL My Pride has been launched.
 
 The advertising strategy of your Company focused its activities to
 target present and potential customers pan–India, besides pan- India
 audience involving multiple stakeholders. New corporate and product
 advertisements were designed and developed to enhance the image of your
 Company.
 
 As part of our overall strategy of strengthening the image of your
 Company, number of sponsorship initiatives were identified and taken up
 this year by your Company. Your Company, along with SBI, organized the
 SAIL – SBI Open 2014 which was presented by Incredible India, Ministry
 of Tourism. The SAIL Open Golf Tournament has helped in strengthening
 the SAIL Brand, besides being the second longest running national Golf
 championship after Indian Open. Football being a very popular in the
 neighbourhood of our Plants, we have collaborated with Baichung Bhutia
 Football School for providing training to the cadets as well as the
 coaches of the Football Academies of your Company.
 
 VIGILANCE ACTIVITIES
 
 SAIL Vigilance 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 2013-14:
 
 - To increase vigilance awareness amongst employees, vigilance
 awareness sessions and workshops were regularly held at the various
 Plants and Units. A total of 147 workshops involving 3179 participants
 were organized for enhancing Vigilance Awareness on Whistle Blower
 Policy, Purchase/Contract Procedures, RTI Act, Conduct and
 
 Discipline Rules, System and Procedures followed in SAIL, etc.
 
 - Periodic surprise checks including joint checks were conducted
 regularly in vulnerable areas of the Company. A total of 3296 periodic
 checks including file scrutiny and Joint Checks were conducted at
 different Plants/Units. Saving of approx. Rs. 23.22 crore accrued from
 the preventive vigilance activities mainly on account of these 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 concerned departments for implementing
 suggestions for improvement.
 
 - As decided by the Central Vigilance Commission, Vigilance Awareness
 Week was observed in all the Plants and Units of Steel Authority of
 India Limited (SAIL) during the period 28.10.2013 to 2.11.2013. The
 theme of Vigilance Awareness Week this year was Promoting Good
 Governance – Positive Contribution of Vigilance. Based on the above
 theme, a number of seminars/workshops were organized during the week,
 to emphasize the need of greater transparency in commercial dealings
 with the stakeholders. Various events like debate competition, essay
 writing, quiz competition, talk by eminent personalities were also
 organized for the employees as well as school children. Further,
 interactive awareness sessions with major customers/stakeholders were
 conducted.
 
 - The following four (4) thrust areas were identified for SAIL
 Vigilance:
 
 i) Increase e-auction (Reverse Auction and Forward Auction) in all
 spheres of the activity and to achieve 100% e-payment in time bound
 manner.
 
 ii) Scrutiny of files pertaining to 21 high value projects being
 undertaken at various Plants/Units, in line with the guidelines of
 Chief Technical Examiner of CVC.
 
 iii) Scrutiny of the contracts awarded on single tender enquiry
 (nomination basis).
 
 iv) Increased surveillance in the areas of receipt, sampling and
 testing of high value raw materials and installing auto analyzers and
 auto samplers for raw material testing and sampling.
 
 - A study on Conversion Agents / Wet Leasing Agents appointed by SAIL
 for conversion of semis into finished products was conducted by SAIL
 Vigilance Department, which brought out certain deficiencies in the
 system. A number of systemic improvement measures were recommended to
 prevent misuse of SAIL Logo/Brand as well as to streamline the
 conversion process through regular monitoring/periodic checks by the
 concerned authorities.
 
 - The Purchase/Contract Procedure (PCP) 2009 was issued by the
 Vigilance Department based on the feedback obtained from different
 stake holders. On the initiative of SAIL Vigilance, PCP is being
 revised to include the guidelines issued from time to time by various
 authorities such as CVC after discussions with stakeholders and the
 revised PCP is expected to be issued shortly.
 
 - ''Inspiration-Prerna'', an in-house publication of SAIL Vigilance 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.
 
 PUBLIC PROCUREMENT POLICY FOR MICRO AND SMALL ENTERPRISES
 
 As required by the Public Procurement Policy of the Government of
 India, the information on procurement from Micro and Small Enterprises
 during Financial Years 2013-14 and 2012-13 is given below:
 
                                                      (Rs. crore)
 
 Particulars                             2013-14          2012-13
 
 Total Amount Procurement                3862.69          4142.00
 
 Total Procurement from MSE               789.64           942.00
 
 % of Procurement from MSE                 20.44            22.74
 
 CONSULTANCY SERVICES
 
 SAIL has one of the largest pool of qualified and experienced
 engineers, technologists, Finance professionals and professionally
 qualified HR and training experts. Based on its large and varied
 expertise and experience acquired over the last five decades, SAIL,
 through SAILCON, provides design, engineering, training, technical and
 management consultancy services in Iron and 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 organizations 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 expertise.
 
 SAILCON has executed assignments within India and abroad covering
 countries like Egypt, Saudi Arabia, Iran, Qatar, Thailand, Nepal,
 Philippines etc.
 
 During the Financial Year 2013-14, SAILCON laid enhanced focus on
 taking up training assignments along with technical consultancy in
 setting up of Steel Plants for some leading organizations.  Consultancy
 is also being extended for setting up of Power Plants, based on waste
 heat recovery from the flue gases released out of Blast Furnace and
 non-recovery type of Coke Oven batteries, as an environment friendly
 measure and as a step to combat Global warming.
 
 MANAGEMENT DISCUSSION AND ANALYSIS REPORT
 
 The Management Discussion and Analysis Report covering the performance
 and outlook of the Company is enclosed.
 
 AUDITORS'' REPORT
 
 The Statutory Auditors'' Report on the Accounts of the Company for the
 Financial Year ended 31st March, 2014 along with Management''s replies
 thereon is placed at Annexure-I. The comments of Comptroller and
 Auditor General of India (C&AG) on the accounts of the Company for the
 Financial Year ended 31st March, 2014 under Section 619(4) of the
 Companies Act, 1956 and the Management''s replies thereto are placed at
 Annexure-II.
 
 COST AUDITORS
 
 Pursuant to the direction of the Central Government for audit of cost
 accounts, your Company has appointed M/s Sanjay Gupta & Associates, New
 Delhi 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 R J Goel & Co., New Delhi
 for Alloy Steels Plant (ASP), Salem Steel Plant (SSP) & Visvesvaraya
 Iron & Steel Plant (VISP) as Cost Auditor(s) for the Financial Year
 2013-14.
 
 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ETC.
 
 In accordance with the provisions of Section 217 (1)(e) of the
 Companies Act, 1956 read with the Companies (Disclosure of Particulars
 in the Report of Board of Directors) Rules, 1988 regarding Conservation
 of Energy, Technology Absorption and Foreign Exchange Earnings and
 Outgo is given at Annexure-III to this Report.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act, 1956, it is hereby
 confirmed:
 
 (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
 concern basis.
 
 CORPORATE GOVERNANCE
 
 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 100 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
 Governance perspective.
 
 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.
 
 SUBSIDIARIES
 
 IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned
 subsidiary of the erstwhile Indian Iron and 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.5/12/2007-CL-III dated
 8.2.2011, 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 11 AM to 1 PM. A hard copy of the details of accounts of
 subsidiaries shall be furnished to the shareholders on receipt of
 written request.
 
 DIRECTORS
 
 Dr. Jagdish Khattar and Prof. Subrata Chaudhuri ceased to be Directors
 w.e.f. 20.08.2013 (A.N.)
 
 Shri Binod Kumar has been appointed as Director (Commercial) on
 02.12.2013 and joined SAIL Board on 03.12.2013.
 
 Shri P.K. Sengupta and Shri P.C Jha ceased to be Directors w.e.f.
 12.01.2014 (AN).
 
 Shri R.S. Sharma, Shri N.C Jha, Shri D.K. Mittal and Mrs.  Parminder
 Hira Mathur have been appointed as Directors w.e.f.  19.02.2014.
 
 ACKNOWLEDGEMENT
 
 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
 
 (CS. Verma)
 
 Chairman
 
 New Delhi
 
 Dated: 14th August, 2014
 
 
 
 
Source : Dion Global Solutions Limited
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