Steel Authority of India Directors Report, SAIL Reports by Directors

Steel Authority of India

BSE: 500113|NSE: SAIL|ISIN: INE114A01011|SECTOR: Steel - Large
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Directors Report Year End : Mar '15    « Mar 14
To, The Members,
 The Directors have the pleasure of presenting the 43rd Annual Report of
 the Company together with Audited Accounts for the Financial Year ended
 31st March, 2015.
 Your Company achieved a turnover of Rs.50,627 crore during 2014-15, which
 is lower by 2% over previous year, mainly on account of lower sales
 volume. The steel prices which were at a high in the beginning of
 Financial Year 2014-15, started falling gradually every month from
 September''2014 onwards. Towards the end of the Financial Year 2014-15,
 the steel prices reached at the lowest for the Financial Year. The
 Profit After Tax of your Company for the Financial Year was Rs.2,093
 crore as compared to Rs.2,616 crore in the previous Financial Year, which
 included the one time receipt of Rs.1,056 crore from M/s. Vale Australia
 Pty Ltd.
 The net profit of your Company for the year 2014-15 has been negatively
 impacted on account of stagnant saleable steel production and lower
 sales volume of saleable steel, higher salaries & wages, higher stores
 & spares expenditure, higher repairs & maintenance expenditure,
 increase in royalty on iron ore, increase in purchased power rate,
 higher usage of imported coal in the blend due to lower availability of
 indigenous coal, higher interest charges, higher depreciation due to
 capitalization of new facilities and reduction in interest earning on
 term deposits. The Management has taken various cost reduction measures
 like reduction in usage of external BF Coke, lower coke rate & energy
 consumption, higher CDI usage, etc. to offset the impact of adverse
 Your Company 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 the growth objectives.
 Further, the 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. 2,000 crore as on 31st
 March, 2015 invested in short term deposits with scheduled banks
 against borrowings of Rs. 29,898 crore as on 31st March 2015. The debt
 equity ratio of the company increased to 0.69:1 as on 31st March 2015
 from 0.59:1 as on 31st March 2014 mainly on account of increase in
 borrowings during the year. The net worth of company improved from Rs.
 42,666 crore as on 31st March 2014 to Rs. 43,505 crore as on 31st March
 2015 and this helped in generation of internal resources for funding
 expansion plans of SAIL. During the Financial Year 2014-15, the capital
 expenditure incurred was Rs. 6,840 crore.
 The Company paid interim dividend @ 17.5% of the paid-up equity share
 capital during the year. The Board of Directors has further recommended
 a final dividend @ 2.5% subject to approval of shareholders, thus
 making the total dividend @ 20% of the paid up equity share capital for
 the Financial Year 2014-15.
 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.
 Production Review
 Financial Year 2014-15 witnessed several landmark achievements in the
 ongoing Modernisation and Expansion Plan of the Company.  Your Company
 achieved its highest ever Hot Metal production of 15.4 Million Tonne
 (MT) surpassing its previous best of 15.2 MT achieved in 2007-08. This
 was a result of series of ongoing projects getting either commissioned
 or stabilized during the year towards achievement of their envisaged
 capacity. Each and every Integrated Steel Plant of SAIL has achieved a
 breakthrough in operationalizing new units as stated below:
 - Bhilai Steel Plant has stabilised performance of the new Sinter
 Machine in SP-3 and new Coke Oven Battery-11 and has started trials in
 the new Rail Welding Plant which is a part of Universal Rail Mill.
 - At Durgapur Steel Plant, the new Bloom cum Round Caster has started
 trial production from Feb 2015 and is expected to stabilize soon.
 - At Rourkela Steel Plant, new Converter-C was commissioned and has
 been stabilized with maximum of 21 heats. Similarly, the new Caster has
 also been ramped up achieving a production level of 28 casts in a
 single day on 19/09/2014.
 - At Bokaro Steel Plant, new CRM-III has begun trials and will ramp up
 production after commissioning of auxiliaries.
 - At IISCO Steel Plant, Burnpur, new BF-5, new SMS (currently
 operating with 2 Converters and 2 Casters) and new Bar Mill have been
 commissioned and operation of Wire Rod Mill has been stabilised.
 Your Company achieved an all time best performance in case of
 Continuously-Cast (CC) Steel and Sinter production, with a production
 of 10.3 MT & 20.7 MT and a growth of 6% &11% over last year
 respectively. The Company also registered an improvement in its Crude
 Steel production volume, registering a growth of 2% over last year.
 Your Company''s various initiatives to reduce environmental footprint
 and enhance operational efficiency have led to a significant
 improvement in environmental parameters as well as in Techno-economic
 efficiency. This has enabled the Company to produce steel in a greener
 and more environmental friendly manner than ever before. SAIL Plants
 recorded the best ever Sp. Energy Consumption of 6.52 Gcal/Tonne of
 Crude Steel (tcs), an improvement of 1% over 2013-14. This was
 achieved, as a result of higher volume of crude steel being produced
 through energy efficient CC route (up by 6% over 2013-14). In addition,
 SAIL achieved the lowest ever Particulate Matter (PM) Emission Load
 (0.83 kg/tcs), Specific Water Consumption (3.66 m3/tcs) and Specific
 Effluent discharge (2.16 m3/Tonne of Saleable Steel (tss)).  SAIL
 Plants have also reduced their CO2 Emission levels to 2.65 T/tcs which
 is their lowest ever emission, showing significant improvement over
 earlier years.
 Your Company is proud to be a part of India''s ''Make in India''
 initiative, wherein the Country''s first indigenously built warship
 named INS Kamorta, an anti-submarine warfare corvette, was built with
 special grade high-tensile (DMR249A) steel produced by Bhilai Steel
 Plant. The ship was handed over to the Indian Navy by Garden Reach
 Shipbuilders & Engineers Limited in the month of July''14.
 Maintaining this fervor for continuous improvement, your Company has
 developed several new products during the year, further enhancing its
 extensive product portfolio. To satisfy the requirements for
 manufacturing of bullet proof vehicles for Indian Army, three heats of
 Armor quality steel were made at Alloy Steels Plant and 8 slabs were
 processed through Hot Strip Mill and Special Plates Plant at RSP to be
 dispatched to Vehicle Factory, Jabalpur.  The hardness achieved was
 490-520 BHN and it satisfied the specification of CQA M (47) or
 equivalent for protection from AK-47 from a distance of 10 meters.
 With the recent amendment of IS 1786 in 2012, two new grades of seismic
 resistant rebars, namely Fe-415S and Fe-500S with a minimum UTS/YS
 ratio of 1.25 were added. To keep pace with this development, SAIL took
 up the challenge to be the first producer in India for development of
 IS 1786 S grade in line with international specifications like ISO
 6935-2, ASTM A706, etc. Accordingly, process technology for production
 of Fe-415S and Fe 500S grades were established.
 In addition, Research & Development Centre for Iron & Steel (RDCIS) and
 Plants have developed a new standard IS 15962: 2012 on ''Structural
 Steels for Buildings and Structures with improved Seismic Resistance''
 in line with ISO 24314 and JIS G 3136. No Indian specification existed
 earlier for seismic resistant steel structures and plates. With these
 aforementioned initiatives, SAIL is planning to launch seismic grade
 plates, structurals and TMT rebars in 2015-16 which will make SAIL the
 First Producer of these grades in India.
 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 Projects (CoE), High Impact
 Projects (HIP) and Technology Missions (TM) Projects.
 Some of the assignments in these projects involving in-house process
 innovation / modifications / trials have been completed.  Other
 assignments are in various stages of implementation. The implementation
 of R&D Master Plan and increased thrust on R&D activities across SAIL
 Plants/ Units has led to a significant increase in R&D expenditure from
 Rs.100 crores in 2013-14 to Rs. 264 crores in 2014-15 and the R&D
 expenditure as percentage of turnover (net of excise) has increased
 from 0.24 in 2013-14 to 0.58 in 2014-15.
 Under CoE Projects, the average campaign life of steel ladle in SMS-2,
 BSL has increased from 80 to 101 heats, also achieving a maximum life
 of 123 heats. In addition, an RFID based ladle tracking system is being
 implemented in SMS-2, BSL and improved quality fused Alumina based
 Alumina-Magnesia-Carbon bricks have been developed for bottom impact
 pad of steel ladle giving an average life of 50 heats with a
 possibility of maximum of 62 heats.  RDCIS has also undertaken a new
 CoE project for development of high strength nano steels for which a
 MoU with Indian Institute of Science, Bangalore has been signed.
 Under High Impact Projects, lab experiments for slime beneficiation at
 Barsua Mines have been completed and order placement on turnkey basis
 is in progress. For use of air cooled BF slag for road making,
 laboratory investigations with different compositions using slag, local
 soil and moorum from BSP were carried out at Central Road Research
 Institute. Based on encouraging results, pilot construction of rigid
 pavement has been initiated at RDCIS as a separate project.
 Adoption of technologies for thin strip casting and CRGO steel
 production has been envisaged under TM-1 & TM-2 Projects.  Discussions
 regarding modalities of technology transfer by the technology vendors
 are under advanced stages. Working and licensing agreement with the
 vendors are being worked out.
 Under TM-2, one heat of CRGO steel was made at RSP as per the process
 prepared jointly by RDCIS and RSP. Rolling of two slabs was taken up in
 HSM. Detailed metallurgical characterization of Hot Rolled (HR) Coils
 was taken up at RDCIS. Samples of HR coils were annealed and their
 characterization is in progress at RDCIS.  A MOU has been signed
 between RDCIS and Mishra Dhatu Nigam Limited (MIDHANI) for development
 of CRGO steel at MIDHANI.
 Under TM-3 Project on Carbon sequestration through afforestation, M/s
 Tropical Forest Research Institute (TFRI), Jabalpur, M.P. have been
 appointed to act as Carbon Sequestration Service Provider.  TFRI has
 carried out base period measurement of 200 samples of soil for organic
 carbon content. Plantation of 12 different species of trees in 10 acres
 for pilot study on carbon sequestration has been completed and
 monitoring of growth of the plants is under progress.
 Average power requirement of SAIL Plants during the year was 1140 MW.
 This had increased by 60 MW from the previous year due to commissioning
 of expansion facilities at RSP and ISP. Captive Power Plants supplied
 about 61% of the total power requirement and balance 39% was purchased
 from outside, mainly grid utilities.  With an aim to reduce cost, about
 42 Million Units of cheaper power available in the power exchange were
 purchased which contributed to substantial cost savings. This practice
 of purchasing cheaper power from power exchange will be continued and
 increasing the quantity of such power will be targeted.
 The practice of gainful utilization of surplus captive power available
 at one Plant by wheeling to another Plant was continued during the
 year. DSP and RSP received wheeled power from Bhilai for the first
 time, whereas wheeling to VISL was also continued.  About 134 Million
 Units of power were wheeled from Bhilai to other Plants to replace
 costlier grid power and thereby resulting in substantial cost savings.
 The Company is in the process of upgrading Transmission & Distribution
 (T&D) facilities inside its Plants to facilitate handling of higher
 quantum of power requirement after ongoing expansion and improve the
 reliability of power supply. While power system at RSP, ISP, DSP, SSP
 and BSP have already been upgraded to higher voltages (220/230 KV),
 such up-gradation to 220 KV is nearing completion at BSL and CFP.
 Besides improving reliability of power supply, such arrangement will
 also help in reducing power cost as power tariff for some utilities is
 lower at high voltages.
 The Company is also in the process of augmenting its captive power
 generation capacity by installing new Captive Power Plants as part of
 its ongoing expansion and also through joint venture company with NTPC
 namely NTPC SAIL Power Company Private Limited (NSPCL). While, new
 power generation facilities of 146 MW capacities have already been
 added during the year, another 70 MW is expected during next year.
 Besides this, proposal for installation of 370 MW capacity through
 NSPCL is in advanced stage.
 As part of its commitment towards encouraging usage of renewable
 sources, the Company has initiated proposals for installation of 200 MW
 capacity Renewable energy projects during the period 2015-19.  Out of
 this, proposal for installation of 15 MW capacity small hydel plant at
 Mandira Dam, Rourkela is in advanced stage and Installation of 1 MW
 capacity grid interactive Solar PV plant at RSP is under progress.
 Raw Materials
 During the Financial Year 2014-15, total requirement of iron ore was
 met from captive sources. The Company''s captive iron ore mines produced
 about 23.18 million tonnes (MT). However, in case of coking coal,
 around 14% requirement was met from indigenous sources (Coal India
 Limited & captive sources) and balance through imports (12.87 MT).
 During 2014-15, production from captive collieries of the Company was
 about 0.65 million tonnes, out of which 0.44 million tonnes was raw
 coking coal and balance 0.21 million tonnes of non coking coal. In case
 of fluxes, around 1.11 million tonnes of Limestone and 0.97 million
 tonnes of Dolomite were produced, totaling to 2.08 million tonnes of
 fluxes 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 2014-15, at a time when consequent to a decision of the Apex
 Court of the Country, mining activities came to a grinding halt across
 the Country affecting some of the mines of the Company also, SAIL could
 manage its steel production level without disruption by ramping up
 production from its operating mines at a short notice. Most of the
 steel makers who have got access to captive sources had to still import
 iron ore. This is a sign of our intrinsic strength in regulation of
 operations as per the statute as well as in meeting crisis/challenges.
 In order to expedite capacity expansion projects of mines, following
 environment and forest clearance have been obtained during 2014-15:
 -Stage-II Forestry Clearance for diversion of 274.6916 Ha of forest
 land in Duargaiburu Lease-I of Gua mines.
 -Environment Clearance for capacity expansion of Kiriburu-
 Meghahatuburu mines to 16 MTPA ROM capacity.
 -Stage-II Forestry Clearance for diversion of 644.26 Ha of forest land
 in Lease-I of Kiriburu-Meghahatuburu mines.
 -Stage-II Forestry Clearance for balance area of 262.95 Ha and for
 safety Zone area of 5.1 Sq. Mile lease of Bolani Iron Ore Mine.
 -Stage-I Forestry Clearance with working permission for diversion of
 77.94 Ha of forest land in ML-162 lease of Barsua mines.
 -Environment Clearance for capacity expansion of Mahamaya- Dulki iron
 ore mine to 1.46 MTPA capacity.
 With execution of lease deeds for Barsua and Bolani mines, lease period
 of ML-130 lease of Barsua-Kalta mine and 5.1 Sq Mile lease of Bolani
 mine has now been renewed till January, 2030 and April, 2030
 In view of promulgation of MMDR Ordinance, 2015 and subsequent Order of
 the Ministry of Mines, Government of India dated 6th February, 2015
 regarding extension of lease period for Government Companies till 31st
 March, 2020, Jharkhand State Government vide Order dated 18th March,
 2015 has extended the lease renewal period of SAIL''s seven Iron Ore
 leases and four Flux leases till 31st March, 2020. Subsequently, vide
 Order dated 26th March, 2015, Government of Odisha has also extended
 the lease renewal period of ML-162 lease of Barsua mines to 31st March,
 Ministry of Mines, vide Notification dated 16th February, 2015 has
 notified SAIL along with 4 other PSUs for the purposes of carrying out
 exploration under second proviso to sub-section (1) of Section 4 of
 MMDR Act.
 Under notified Coal Blocks for allotment to Government Companies,
 Sitanala Coking Coal Block was allotted to SAIL and the Agreement in
 this regard with the Nominated Authority was signed on 30th March,
 For allotment of new coking coal and thermal coal blocks efforts are
 being made for obtaining allotment of coal blocks under Government
 dispensation route.
 Sales & Marketing
 In-spite of the challenging market conditions, your Company achieved a
 total sales volume of 11.8 million tonnes during the Financial Year
 2014-15. With regard to Dealer Sales, the best ever sales of 0.63
 million tonnes was achieved during the Financial Year 2014-15, thereby,
 registering a growth of 2% over previous best of 0.62 million tonnes in
 Financial Year 2013-14. Similarly, in case of Alloy & Stainless Steel,
 the best ever sales of 0.25 million tonnes was achieved in 2014-15
 which recorded a growth of 18% over previous year.
 Your Company had an export booking of 0.591 million tonnes, which was a
 significant growth over the previous year. Exports to neighbouring
 markets, however, increased at a faster pace of 15% over the previous
 year. The Company exported Plates to Brazil for the 1st time and a
 prestigious export order of Stainless Steel Cold Rolled Coils for
 French Mint was executed successfully.
 During the Financial Year 2014-15, 532 new SAIL Dealers were appointed.
 With this, total number of SAIL dealers stood at 2711 as on 1st April,
 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 & Small Enterprises
 during 2014-15 and 2013-14 is given below:
                                                         (Rs. Crore)
 Particulars                                2014-15       2013-14
 Total Amount of Procurement                3372.98       3862.69
 Total Procurement from MSE                  737.60        789.64
 %age Procurement from MSE                    21.87         20.44
 Growth Plan
 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 capacity, thereby meeting the strategic
 objectives of achieving leadership in Indian Steel sector and a
 position amongst the top Steel companies globally. 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.
 Modernisation & Expansion Programme
 Your Company is in the last leg of implementation of the ongoing
 Modernisation & Expansion Programme (MEP). SAIL has added about 5.5
 million tonnes per annum of Hot Metal capacity by 2014- 15 and will
 achieve the envisaged Hot Metal capacity of 23.5 million tonnes per
 annum in the Financial Year 2015-16.
 During the Financial Year 2014-15, the Company has achieved many
 milestones in the ongoing MEP. At Rourkela Steel Plant, all new
 facilities under the integrated process route of BF-BOF-Caster- Plate
 Mill have been made operational and Hon''ble Prime Minister of India
 dedicated Modernized & Expanded Rourkela Steel Plant to the Nation on
 1st April, 2015. At IISCO Steel Plant, Burnpur, with the completion of
 India''s largest Blast Furnace, all facilities under the integrated
 process route have become operational.  On 10th May, 2015, Hon''ble
 Prime Minister of India dedicated to the Nation, the Modernized and
 Expanded IISCO Steel Plant. At Bokaro Steel Plant, the major facility
 i.e. the new 1.2 MTPA Cold Rolling Mill has become operational. At
 Durgapur Steel Plant, all major facilities like Coke Oven Battery No.
 2, Ladle Furnace, Lime & Dolomite Plant and Bloom cum Round Caster
 become operational.  At Bhilai Steel Plant, facilities like 2nd Sinter
 Machine in SP-3 and Coke Oven Battery -11 have become operational.
 A capital expenditure of Rs.6,840 crore has been incurred during
 Financial Year 2014-15 and capex planned for 2015-16 is Rs.7,500 crore.
 Besides the Modernisation & Expansion Programme, the Company regularly
 undertakes various Addition, Modification & Replacement (AMR) Schemes
 at its Plants, the details of which are given in the Management
 Discussion & Analysis (MD&A) Report.
 Your Company recognizes contribution of its Human Resources (HR) in
 providing it the competitive advantage. The Company has achieved its
 present level of excellence through investment 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 the Company.
 Your Company provides an environment conducive for learning, encourages
 adoption of best practices in every area and nurtures creativity and
 innovation 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
 Expansion Projects.
 Enhanced Productivity with Rationalized Manpower
 Your Company achieved the Labour Productivity (LP) of 302 TCS/Man/Year
 in 2014-15. The manpower strength of the Company was 93,352 nos. (as on
 31.03.2015) with manpower rationalization of 4,545 nos. achieved during
 the year.  The enhanced productivity with rationalized manpower could
 be achieved as a result of judicious recruitments, 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 2004-05 onwards is depicted below:
 Developing Employee Capabilities & Competencies
 Your Company believes that training facilitates the development of
 employee''s knowledge and skills so that the resultant growth of
 competence contributes towards attainment of organisation''s goals and
 objectives. SAIL has been making sustained efforts through various
 training and development activities with focus on preservation,
 transfer and improvement of skills, knowledge, technology in
 collaboration with reputed organizations and development of effective
 managerial competencies in 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, 45,124 employees were trained against target of 40,003
 employees during the year on various contemporary technical and
 managerial modules.
 Harmonious Employee Relations
 Your Company has maintained its glorious tradition of building and
 maintaining a conducive and fulfilling employee relations environment.
 The healthy practice of sorting out and settling issues through
 discussions with trade unions/ workers'' representatives enabled the
 Company in ensuring workers'' participation at different levels and
 establishing a peaceful IR climate. Some of the bipartite 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
 (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
 Plants/ Units, marked with diverse work culture at multiple locations.
 The 9th NJCS agreement was finalised and signed on 1st July, 2014 which
 resulted in pay revision of non executive employees w.e.f. 1st January,
 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 are sought thereon through structured
 /interactive workshops.
 Communication with employees at various levels on a wide range of
 issues impacting the Company''s performance as well as those related to
 employees'' welfare is done in a structured manner across the Company.
 Mass communication campaigns are undertaken at the level of Chief
 Executive Officer(s) /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
 objectives of the Company, leading to not only higher production and
 productivity but also enhance the sense of belongingness to the
 Grievance Redressal Mechanism
 Effective internal grievances redressal machinery has been evolved and
 established in SAIL Plants and Units, separately for Executives and
 Non-executives. Joint grievance committees have been set up at Plants/
 Units level for effective redressal of grievances.
 SAIL Plants/ Units are maintaining 3 stage grievance handling system
 and employees are given an opportunity at every stage to raise
 grievances relating to wage irregularities, working conditions, work
 assignments, 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 the Management.
 Against 14 staff grievances pending at the start of the year (i.e. as
 on 1.4.2014) and 696 staff grievances received during the year, your
 Company disposed 703 staff grievances during 2014-15 achieving 99.01%
 Remuneration Policy
 In SAIL, pay and other benefits for Executives are based on the
 Presidential Directives issued by Ministry of Steel, Government of
 India. The last pay revision effective from 01/01/2007 was done in
 accordance with Presidential Directives dated 05/10/2009. As per this,
 variable pay in the form of Performance Related Pay (PRP) has been
 introduced for Executives.  The PRP is based on the
 performance/profitability of the Company as well as individual
 performance rating which is aligned to the organization objectives.  In
 case of Non-executive employees, the salaries and wages are finalized /
 revised in bipartite forum of National Joint Committee for Steel
 Industry (NJCS). The last NJCS Agreement was finalized and signed on
 01.07.2014, which resulted in pay revision of non- executive employees
 w.e.f. 01.01.2012. In terms of notification issued by the Government of
 India, the provisions of section 197 of the Companies Act, 2013 are not
 applicable to Government Companies. As such, the disclosures to be made
 in the Board''s Report on the remuneration of Directors and other
 prescribed details are not included in this Report.
 Initiatives for Socio-economic Development of SCs /STs & Other Weaker
 Sections of the Society
 Your Company follows Presidential Directives on Reservation of posts
 for Scheduled Castes and Scheduled Tribes in the matter of recruitments
 & promotions. As on 31st March 2015, out of total manpower of 93352,
 around 16.18% belong to SC category and 13.98% belong to ST category.
 SAIL Plants and Units including Mines are situated in economically
 backward regions of the Country with predominant SC/ST population.
 Therefore, SAIL has contributed to the overall development of civic,
 medical, educational and other facilities in these regions. Some of the
 contributions are:
 -Recruitment of non-executive employees, who comprise around 85% of the
 total employees, are carried out mainly on regional level and hence a
 large number of SCs/STs and other weaker sections of the society get
 the benefit of employment in SAIL.
 -Establishment of SAIL Steel Plants in economically backward areas has
 given a fillip to the economic activities thus benefiting the support
 population providing different types of services.
 -Over the years, a large group of ancillary industries have developed
 in the vicinity of Steel Plants. This has created opportunities for
 local unemployed persons for jobs and development of entrepreneurship.
 -For jobs of temporary & intermittent nature, generally contractors
 deploy workmen from the local areas, which again provide an opportunity
 for employment of local candidates of economically weaker sections.
 -Steel Townships developed by SAIL have the best of medical, education
 and civic facilities and are like an oasis for the local Scheduled
 Castes, Scheduled Tribes and other population who share the fruits of
 prosperity along with SAIL employees.
 -SAIL has also undertaken several initiatives for the socio- economic
 development of SCs/STs and other weaker sections of the society, such
 - Special Schools have been started exclusively for poor,
 underprivileged children at the five Integrated Steel Plant locations.
 The facilities provided include free education, mid-day meals, uniforms
 including shoes, text books, stationary items, school bags, water
 bottles and transportation in some cases. The schools now provide
 education to more than 1600 children.
 - 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.
 - No tuition fee is charged from SC/ST students studying in the Company
 run schools, whether they are SAIL employees'' wards or non-employees''
 - Free medical health centers for poor have been set up at Bhilai,
 Durgapur, Rourkela and Bokaro for providing free medical consultation,
 medicines, etc.  to the peripheral population mainly comprising of
 SC/ST and economically weaker sections of society.
 - Villagers are given free treatment- outdoor and indoor -in the
 hospitals of SAIL Mines at Kiriburu, Gua and Chiria when recommended by
 Manki/ Munda (Local Tribal Village Heads) of the peripheral villages
 which mainly helps the ST community people and other economically
 weaker sections of society.
 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 and Presidential Directives for SC/ST and other related matters.
 - SAIL has an Apex level identified body namely SAIL SC/ST Employees
 Federation to represent the issues of SC/ST employees in a coordinated
 manner. A meeting with the Federation is organized on a regular basis.
 - Parliamentary Committee on Welfare of Scheduled Castes & Scheduled
 Tribes during their study tour to Kochi, Bengaluru, Goa and Mumbai from
 4th to 9th February, 2015, examined representation of SCs/STs in
 services of SAIL on 6th February, 2015. The meeting was attended by
 Chairman, SAIL along with some senior officials. The Committee also met
 the representatives of the SAIL SC/ST Employees Federation separately.
 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 replies to
 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
 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 4496 applications and 659 appeals were received under the RTI
 Act, during the Financial Year 2014-15 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.
 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
 - 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.
 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.
 Disclosure under the Sexual Harassment of Women at Workplace
 (Prevention, Prohibition and Redressal) Act, 2013:
 The Company has in place a system (under SAIL Conduct, Discipline and
 Appeal (CDA) Rules, 1977) in line with the requirements of the Sexual
 Harassment of Women at the Workplace (Prevention, Prohibition and
 Redressal) Act, 2013. Complaint Committees have been set up to redress
 complaints received regarding sexual harassment. All employees of the
 Company are covered under this Policy. The following is a summary of
 sexual harassment complaints received and disposed off during the year
 - Number of complaints received : 5
 - Number of complaints disposed off : 4
 Company level
 - Your Company has been conferred with Excellent MoU Rating for the
 year 2013-14 for the 12th consecutive year.
 - 3 out of the 33 Prime Minister''s Shram Awards declared for the year
 2013 were won by SAIL, involving 3 numbers of employees.
 - Out of 28 awards declared, SAIL won 19 Viswakarma Rashtriya Puraskar
 involving 105 employees for the performance year 2012.
 - Bhilai Steel Plant (BSP), bagged the Prime Minister''s Trophy for the
 Best Performing Integrated Steel Plant (ISP) in the Country for the
 year 2011-12 declared in 2014-15. Chairman, SAIL and Chief Executive
 Officer, BSP received the trophy from Hon''ble Prime Minister, Shri
 Narendra Modi at Rourkela on 1st April, 2015.
 - SAIL bagged NARAKAS Rajbhasha Shield 2013-14 (1st Prize) for the
 Best Implementation of Official Language at the 40th Town Level
 Meeting & Prize Distribution Ceremony of NARAKAS on 25th February,
 - SAIL won ''Golden Peacock Award'' for ''Corporate Social Responsibility''
 for the year 2014 at the 9th International Conference on Corporate
 Social Responsibility on 19th January, 2015 at Mumbai.
 - SAIL was awarded the PHD Chamber Good Corporate Citizen Award 2014
 at an award ceremony held on 20th December, 2014 at New Delhi.
 - SAIL won ''SCOPE Meritorious Award for Environment Excellence &
 Sustainable Development for the year 2012-13''.
 The Award was given by Hon''ble President of India, Shri Pranab
 Mukherjee, in presence of other dignitaries in a award function held at
 Vigyan Bhawan, Delhi on 5th November, 2014.
 - The then Chairman, SAIL, Shri C. S. Verma received the IIM JRD Tata
 Award for Excellence in Corporate Leadership in Metallurgical
 Industries for the year 2014 from Hon''ble Minister of Mines & Steel,
 Shri Narendra Singh Tomar in a ceremony held at Pune on 14th November,
 - Town Official Language Implementation Committee (PSU), Delhi
 spearheaded by SAIL was adjudged First at National Level for
 commendable performance in implementing the Official Language Policy
 during the year 2013-14. The Award, in the form of Indira Gandhi
 Rajbhasha Shield, was given by Hon''ble President of India, Shri Pranab
 Mukherjee, in a function organized at Vigyan Bhawan, New Delhi on 15th
 November, 2014.
 - SAIL won Governance Now PSU Award 2014 under two award categories
 viz. IT Adoption in HR and Best HR Practices (Training).
 - SAIL won Skoch Renaissance Awards 2014 in the category ''Sustainable &
 Balanced Business Performance''.
 - SAIL was also conferred with Skoch Order-of-Merit Award in the
 following categories:
 - Best Project in the Country for Comprehensive Water & Sanitation
 Project (a CSR initiative of SAIL / RSP)
 - Unit Training System in SAIL
 - Environment Management
 - SAIL bagged the award for the ''Best in CSR & Sustainability as well
 as the Most eco-friendly PSU in the Maharatna Category'' at the 1st
 India Today Group PSU Awards-2014 at a function held in Delhi on 21st
 August, 2014.
 - The in-house Hindi journal of SAIL ''Ispat Bhasha Bharti'' bagged 1st
 prize at town level for the best magazine.
 - SAIL won BT Star Award, 2014 for Excellence in HR Management.
 - The then Chairman, SAIL, Shri C.S. Verma was awarded ''CEO of the
 Year'' at the 2014 Platts Global Metals Awards Ceremony held in London
 on 21st May, 2014, in recognition of improving the Company''s
 operational performance while also demonstrating a strong commitment to
 human resource development and corporate social responsibility.
 - SAIL won 5th Dalal Street Investment Journal PSU Award 2013 in the
 category of Highest Asset Creating Maharatna.
 - 5 Quality Circle teams from SAIL involving 26 employees participated
 in International Convention on Quality Circle 2014 held at Colombo, Sri
 Lanka during 12th -15th October, 2014.  Quality Circle Teams from DSP &
 BSL won Gold Awards whereas teams of BSP, RSP and RMD have won Silver
 - SAIL has been conferred with the First Award under the category of
 Public Manufacturing Organisation (Large) at the 12th National Award
 for Excellence in Cost Management by the Institute of Cost Accountants
 of India, 2014 on 15th July, 2015.
 - Shri Anil Kumar Chaudhary, Director (Finance), SAIL was conferred
 with the Best CMA CFO Award-2014 by the Institute of Cost Accountants
 of India on 7th July, 2015.
 Bhilai Steel Plant
 - IIM National Sustainability Award 2013-14 for performance and
 achievements accomplished during the Financial Year 2013-14 from IIM,
 Kolkata on 14th November, 2014.
 - CII - Exim Bank Award 2014 - Commendation Certificate for significant
 achievement from CII Institute of Quality on 14th November 2014.
 - CII Sustainability Award 2014 for performance and achievements
 accomplished during the Financial Year 2013-14 from CII on 19th
 November, 2014.
 - National Energy Conservation Award 2014 in the integrated steel
 sector on the basis of improvement in its energy performance over the
 previous year 2012-13.
 - Recognized and awarded for the maximum contribution towards ESIC in
 the State of Chhattisgarh in a function organized by ESIC on 30th
 April, 2014.
 Durgapur Steel Plant
 - Indira Gandhi Paryavaran Puraskar 2012 from Ministry of Environment &
 Forests, GoI for the year 2012-13 on 2nd February, 2015.
 - Greentech Environment Award-2015 (Gold) and Greentech CSR Award-2015
 (Gold) from Greentech Foundation, Delhi on 28th January, 2015 at
 Kolkata for the performance year 2013-14.
 - CII-Exim Bank Award for Business Excellence- Commendation Certificate
 for significant achievement from CII Institute of Quality on 19th
 November 2014 for the performance year 2014.
 - Safety Innovation Award from Institution of Engineers for the year
 2013-14 on 20th November, 2014.
 - Ispat Suraksha Puraskar awarded by JCSSI for the year 2013.
 Rourkela Steel Plant
 - 1st runner-up award for Best Overall HR Practices in 4th ZENITH
 Rewards & Recognition Programme organized by NHRD Bhubaneswar chapter
 at Bhubaneswar on 19th December, 2014.
 - Commendation for Strong Commitment to HR Excellence in 5th CII
 National HR Excellence Award on 5th December, 2014 at New Delhi.
 - BG Deshmukh Special Award for Excellence in CSR-2014 instituted by
 Maratha Chamber of Industry and Agriculture, Pune on 16th October,
 Bokaro Steel Plant
 - Rajbhasha Karyanvayan Award - Third Prize for outstanding work done
 in Rajbhasha in Eastern Region for 2013-14 by Hon''ble Governor, West
 Bengal in February, 2015.
 - CII (ER) Productivity Award 2014 by CII(ER) in February, 2015.
 - Greentech Award (Gold) in the Metal & Mining Sector from Greentech
 Foundation, Delhi on 28th January, 2015 at Kolkata for the performance
 year 2014.
 - CII-ITC Sustainability Award - 2014 for Excellence in Corporate
 Social Responsibility on 19th December 2014 at New Delhi.
 - IIM SMS DMAG Excellence Award from The Indian Institute of Metals for
 outstanding leadership contribution in Iron & Steel Industries in India
 on 14th November 2014 for the performance year 2014-15.
 - CII-Exim Bank Business Excellence Award - Strong Commitment to Excel
 from CII Institute of Quality on 19th November 2014 for the performance
 year 2014-15.
 - Shri Ashok Kumar, Junior Manager in the Slabbing Mill department of
 Bokaro Steel Plant was felicitated with the ''National Brand Ambassador
 for Vocational Training'' honour on 16th October, 2014 at the Pandit
 Deendayal Upadhyay Shramev Jayate Karyakram at Vigyan Bhavan, New
 Delhi.  The programme was launched by the Hon''ble Prime Minister, Shri
 Narendra Modi in presence of Shri Narendra Singh Tomar, Hon''ble
 Minister for Steel, Mines, Labour & Employment and other dignitaries.
 Alloy Steels Plant
 - First prize for Best Unit in Implementation of Rajbhasha given by
 TOLIC, Durgapur.
 Salem Steel Plant
 - Out of 91 State Shram Awards (Tamilaga Arasin Uyarntha Uzhaipalar
 Viruthu) for the year 2010, 2011 & 2012 awarded by Directorate of
 Industrial Safety and Health, Government of Tamil Nadu, Salem Steel
 Plant bagged 17 awards (18.7%)
 - 13th Annual Greentech Safety Gold Award in Metal & Mining Sector for
 outstanding achievements in Safety Management for Performance Year
 2013-14 awarded by Greentech Foundation.
 - JCSSI - Ispat Suraksha Puraskar - 2014 for no fatal accident
 (including contract labour) occurred during the calendar years 2012 &
 Raw Materials Division
 - Kalta Iron Ore Mines bagged the National Safety Awards (Mines) for
 longest accident free period. Hon''ble President of India, Shri Pranab
 Mukherjee gave away the awards at the presentation ceremony of the
 National Safety Awards (Mines) for the years 2011 & 2012 at Vigyan
 Bhawan, New Delhi on 20th March, 2015.
 - 1st Pandit Madan Mohan Malaviya Bronze Award 2014 from CSR Times for
 its extensive contribution to support the students of disturbed areas.
 SAIL Refractory Unit
 - SRU received the Running Trophy and the Certificate on
 16th Sept.''2014 by the NARAKAS.
 Your Company is committed to improve its environmental footprint and
 hence has initiated various activities with an aim to achieve
 sustainable solutions. The Company is fully committed to abide by the
 Rules, Regulations and the Laws of the land. The Company has
 progressively introduced Environment Management System: ISO 14001
 certification at most of its steel Plants/ Units and Mines.
 Compliance with the relevant environmental laws and effective operation
 of the various pollution control facilities are ensured at all the
 Plants/Units. Compliance of the relevant environmental laws and the
 various clearance conditions are monitored meticulously and quarterly
 reports are submitted to the Board of Directors.
 During October 2014, a Board Sub-committee (BSC) on Health, Safety and
 Environment has been constituted to review the policy, procedures and
 systems on these issues and to guide the Company towards adoption of a
 holistic approach for improvement. Besides this Apex Level Committee,
 other Committees like Expert Committee on Environment, Expert
 Committee on Water and Expert Committee on Material Recovery and
 Waste Product Utilisation are in operation to contribute towards
 overall improvement in environment.
 The challenges lying before the Company is to achieve 100% solid waste
 utilization, zero effluent discharge, bring down CO2 emission at the
 level of Global bench-marking, 100% regulatory compliance and go
 beyond. Enhancement of environmental awareness and regular monitoring
 are being fostered to ensure non-occurrence of any serious
 environmental incident.
 Improvement in Environmental Footprints and Operational Efficiency
 The Company has established a structured mechanism for monitoring the
 environmental safe guarding activities by setting up the Environment
 Management Division as a nodal agency and Environment Departments at
 Plants, Mines and Unit levels. Review of the environmental performance,
 including the compliance of Environment Clearance and Consent
 conditions, are being carried out regularly through detailed
 interactive discussions with the Plants and Units. Concerted efforts
 have resulted in achieving major improvements in the following areas:
 Particulate Matter (PM) Emission Load has reduced to 0.83 Kg/tcs from
 1.11 Kg/tcs in 2010-11, which is a reduction of more than 25% in the
 last five years.
 Specific water consumption has reduced to 3.66 m3/tcs from 4.06 m3/tcs
 in 2010-11, which is a reduction of around 10% in the last five years.
 Specific Effluent load has reduced to 0.10 Kg/tcs from 0.15 Kg/tcs in
 2010-11, which is a reduction to the tune of 33% in the last five
 Specific CO2 emission has reduced to 2.65 T/tcs from 2.87 T/tcs in
 2010-11, which is a reduction of 8% over the last five years.
 Major Pollution Control projects implemented during the year
 -Coal Dust Injection (CDI) facility at BF #2 and augmentation of CDI
 facility with BF-3, at DSP
 - CDI facility at BF#4 & BF#5 at RSP
 - Process ESP of strand#1 and strand#2 of Sinter Plant-1at RSP.
 - Dry Fog Dust Suppression System at Hammer Crusher of Coke Oven at
 - Incinerator for processing of the segregated Bio-medical Wastes (BMW)
 at BSL.
 Greenery and Eco-restoration
 - Green belts act as effective barrier to dust, noise and as sink for
 carbon dioxide. Every year, SAIL Units carry out extensive plantation
 programmes. During the year 2014-15, more than 2.64 lakhs saplings were
 planted in and around SAIL Plants and mines. Since the initiation of
 such schemes, a total of more than 186 lakhs saplings have been
 - A project on restoration and rehabilitation of degraded ecosystems is
 under execution at Purnapani Limestone Mine, where 190.92 acres of
 mined out area has been successfully restored so far to productive
 ecosystems by planting more than 3.485 lakhs saplings. During 2014-15,
 25,000 saplings have been planted, covering an area of 18 acres, which
 includes replacement plantation. Pisciculture had been put into
 practice in five abandoned quarries filled with water.
 Environmental Management System (EMS) linked with ISO- 14001:2004
 During the year 2014-15, the following Units of SAIL have been
 recommended for accreditation to EMS-ISO 14001:2004:
 - Barsua Iron Ore Mine
 - Warehouses of CMO at Delhi and Visakhapatnam Sustainable Development
 - SAIL is executing a Sustainable Development Project on Biodiversity
 Conservation & CO2 Sequestration at Bolani Iron Ore Mine over and
 above the stipulated legal requirements. This three year long
 ecological restoration project is in its final year of operations and
 is progressing as per schedule. During the year, over 1.36 lakh
 saplings of native tree species have been introduced
 - In order to maintain the restored ecosystem, SAIL has engaged the
 ''Centre for Environment Management of Degraded Eco-system'' (CEMDE) for
 a period of five years to achieve the objective of Sustainable
 Development at Purnapani.
 - 160 KW Off Grid PV System has been installed at the Roof Top of
 Burnpur Hospital, IISCO Steel Plant.
 - For conservation of water and also to minimise pollution from surface
 water by reducing discharge into the surrounding environment,
 re-circulation of overflow water to the tune of 42.682 lakhs m3 from
 Hitkasa Tailing pond of Dalli (Mech.) Mines of BSP was done during
 - To increase the life of the tailings pond and to reduce the surface
 water pollution, around 1.413 lakh m3 slimes from Hitkasa tailings pond
 of Dalli (Mech.) Mines of BSP has been de-silted during the year.
 - Bokaro Steel Plant has taken up a project with the South Eastern
 Railway (S.E.R.) to conduct a field trial at the Bokaro Rail Yard with
 the Weathered LD (WLD) Slag from the Plant.  Commencement of field
 trial is expected shortly.
 - Lab scale study is being conducted at IIT, Kharagpur, for development
 of technology for Dry Granulation of LD/BOF Slag and heat recovery.
 Scheduled completion of the study is by March, 2016.
 - In response to a representation from the major steel manufacturers,
 the Bureau of Indian Standard (BIS), New Delhi, has agreed
 ''in-principle'' to include BF and BOF slag as alternate material
 (partial replacement), in place of natural sand, for manufacturing
 cement concrete, in the relevant BIS standard (IS:383).
 - Bio-sequestration of CO2 Project (Technology Mission-3) under R&D
 Master Plan, is being jointly implemented by SAIL and the Tropical
 Forest Research Institute (TFRI) at the Rourkela Steel Plant (RSP).
 Scheduled completion of the Project is by March 2019.
 Your Company has adopted a multi-pronged approach that includes organic
 growth, brown-field projects, technology leadership through strategic
 alliances, ensuring raw material security through acquisition and
 development of new mines, diversifying in allied areas, R&D Master Plan
 and a Technology Plan. Such a strategy of investing in different areas
 will mitigate risk and help in maximizing returns.
 Over a span of last few years, SAIL has formed Joint Venture companies
 in different areas viz. power generation, rail transportation, slag
 cement production, securing supplies of key input raw materials viz.
 coking coal (from indigenous as well as imported sources), etc. New
 joint venture in the area of production of specialized products to
 cater to automotive sector, etc. is being envisaged. The Strategic
 Initiatives taken by your Company include the following:
 Growth Strategy in Steel: SAIL plans to scale up its production to 50
 million tonnes of Hot Metal by 2025-26 which will place the Company
 amongst the top global steel producers in the World. The capacities of
 Crude Steel and Saleable Steel have been planned at 48 million tonnes
 and 46 million tonnes respectively. Further, SAIL will develop a strong
 presence in the Value Added Products arena and capacities of the mines
 will be increased to take care of higher iron ore needs in line with
 increased production as above.
 Ultra Mega Steel Project in Bastar District, Chhattisgarh :
 A concept has been evolved by Ministry of Steel with the aim to develop
 large capacity mega steel projects in the Country, which would help
 India in achieving the capacity growth of 300 million tonnes of crude
 steel by 2025-26. Towards accomplishing this vision, SAIL would be
 participating for setting up of an Ultra Mega Steel Plant (UMSP) of
 approximately 6 million tonnes green-field capacity in Bastar district
 of Chhattisgarh. Chhattisgarh Mega Steel Limited has been
 incorporated by SAIL as a Special Purpose Vehicle (SPV) for UMSP in
 Chhattisgarh on 20th January 2015. The SPV will induct NMDC as a Joint
 Venture partner. In addition, a Mining SPV will be created which will
 undertake mineral exploration, mine development and commercial
 production of iron ore. A Memorandum of Understanding for setting up
 UMSP in Chhattisgarh has already been signed amongst Ministry of Steel,
 Government of India, SAIL, NMDC Ltd. and the Government of Chhattisgarh
 on 9th May, 2015 in the august presence of Hon''ble Prime Minister of
 Development of Rail Corridor from Rowghat to Jagdalpur in the State of
 In a significant move which will bring about socio-economic development
 of the backward areas of Bastar region predominantly inhabited by
 tribal population in the Chhattisgarh State and further the industrial
 progress and mining activities in the region, Government of India has
 taken a momentous step to expand the reach of its network in this
 backward area meeting the long pending demand of the local population.
 A Memorandum of Understanding has been signed amongst SAIL, State
 Government of Chhattisgarh, NMDC Ltd. and IRCON International Limited,
 for construction of 140 kilometer rail corridor from Rowghat to
 Jagdalpur via Narayanpur, Kondagaon in the State of Chhattisgarh.
 Automotive Steel Joint Venture in India:
 SAIL and ArcelorMittal are in discussions for exploring the possibility
 for setting up an automotive steel manufacturing facility under a Joint
 Venture (JV) arrangement in India. The proposed JV will construct a
 state-of-the-art cold rolling mill and other downstream finishing
 facilities in India that will offer technologically advanced steel
 products to India''s rapidly growing automotive sector. A MoU in this
 regard has been signed between the two companies on May 22, 2015.
 Joint Ventures
 International Coal Ventures Pvt. Ltd.: In a landmark acquisition of
 large coal mine and coal assets overseas by Indian companies,
 International Coal Ventures Pvt. Ltd. (ICVL), the joint venture of
 SAIL, Coal India Limited, Rashtriya Ispat Nigam Limited, NMDC Limited &
 NTPC Limited took over an operating coal mine and coal assets of Rio
 Tinto Limited in Moatize Coal basin in Tete province of Mozambique,
 with a total coal resource of 2.6 billion tonnes. This acquisition has
 been intended to give long term security for supply of a critical raw
 material for its Promoter Companies. The operating coal mine at Benga
 produces prime hard coking coal / thermal coal, and has a
 state-of-the-art wash plant and surface infrastructure with a potential
 to expand the raw coal production from the current 5 million tonnes per
 annum (Mtpa) to 12 Mtpa.
 Rail Transportation: A Joint Venture company between SAIL and RITES
 viz. SAIL RITES Bengal Wagon Industry Pvt. Ltd. has been formed for
 fabrication of wagons. Installation of plant and machinery is in
 progress. Rehabilitation of Wagons is ready to start and awaiting
 Assured Off-take Agreement from Railways.
 SAIL SCL Kerala Ltd. : Towards the quest for revival of operations of
 the joint venture company formed between SAIL and Government of Kerala
 (GOK), a new rolling mill for manufacturing 65,000 tonnes per annum. of
 TMT bars has been installed. The Hot Trials of the mill have been
 completed. Commercial production is awaited subject to BIS clearance.
 Business Excellence Initiatives
 Enterprise Scorecard (ESC)
 Fourth Enterprise Scorecard (ESC) of SAIL was prepared for the
 Financial Year 2014-15 comprising of 82 Strategic Objectives; 16 in
 Financial Perspective, 10 in Customer Perspective, 33 in Internal
 Business Process Perspective and 23 in Organisational Capability
 Building Perspective. Enterprise Scorecard not only brings integration
 with Memorandum of Understanding (MoU) with Government of India and
 Annual Business Plan (ABP) of the Company, but also facilitates
 deployment of the strategy across various leadership levels through
 Strategic Objectives and Key Initiatives. Enterprise Scorecard is
 deployed downwards through Unit Scorecards, Functional Scorecards and
 Departmental Scorecards and addresses the long term and short term
 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 of CII-EXIM Bank Awards for Business
 Excellence 2014. These Plants got following Recognition/ Awards:
 BSP - Commendation award for Strong Achievement.
 DSP - Commendation award for Strong Achievement.
 RSP - Commendation award for strong Commitment to Excel.
 BSL - 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 Systems. During the Financial Year
 2014-15, BSP implemented Integrated Management System (IMS) by
 integrating ISO 9000, ISO 14000, OHSAS 18000 and SA 8000 Management
 Systems while SSP implemented IMS by integrating ISO 9000, ISO 14000
 and OHSAS 18000. Lead Auditors were developed for ISO 50000 (Energy
 Management System) and ISO 27000 (Information Security System) through
 in-house programmes. Following Certifications were achieved during
 - ISO 50000 (EnMS) Energy Management System at DSP
 - ISO 27000 (ISMS) Information Security Management System at RDCIS
 The other ongoing initiatives across organisation are involvement of
 employees through 5-S and Quality Circles implementation.
 There were 2350 Quality Circles projects implemented during the year.
 IT Related Initiatives
 Your Company has embraced Information Technology (IT) enabled services,
 applications and tools in all its Plants & Units for improvement in
 productivity, yield, quality, reduction in operational costs and
 improvement in internal & external customer satisfaction.
 As a step towards this, Enterprise Resource Planning (ERP) has been
 implemented stage wise at 4 out of 5 Integrated Steel Plants i.e.
 Bhilai Steel Plant (BSP), Durgapur Steel Plant (DSP), Bokaro Steel
 Plant (BSL), Rourkela Steel Plant (RSP) and Central Marketing
 Organization (CMO). 100% primary domestic sales are covered through ERP
 System. ERP implementation at 5th Integrated Steel Plant i.e. IISCO
 Steel Plant (ISP) and ERP implementation at Corporate Office for data
 consolidation through integration of all Plants/Units is in progress.
 ERP of BSP & BSL has been awarded Customer Centre of Excellence (CCOE).
 The Manufacturing Execution System (MES) technology was implemented at
 BSP. System has been ISO certified. 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 for collection of
 medical insurance premium from ex-employees of SAIL has been
 strengthened and extended to other receivables.
 To ensure data & information security, steps have been taken at all
 SAIL Plants/Units. DSP and RDCIS has obtained Information Security
 Management System (ISMS):ISO certification.
 Corporate Communication
 The focus of Corporate Communications activities for the year has been
 proactive and structured image building exercises of your Company.
 Dissemination of information to the desired target audience through
 effective communications to stakeholders by means of press releases,
 press meets, one on one interaction with media personnel, etc. has
 strengthened your Company''s image amongst key stakeholders.
 Two prestigious events on Dedication to the Nation of the Modernized &
 Expanded Rourkela Steel Plant and IISCO Steel Plant by Hon''ble Prime
 Minister, Shri Narendra Modi have further strengthened brand image of
 SAIL. These events have featured in all forms of media in India and
 abroad such as print, electronic, online and social media (viz. twitter
 and Facebook).
 The multi-dimensional approach followed by SAIL has ensured that
 information relating to it reaches the target audience in a cost-
 effective manner. SAIL selectively identified and participated in
 specialized exhibitions and events throughout the year. These include
 the India International Trade Fair -IITF, Vibrant Gujarat, Indian
 Conference of Mining & Metallurgy, Minerals Metals, Metallurgy &
 Materials among others.
 Your Company also undertakes sponsorship of important events and
 promising sports persons. SAIL sponsored Wrestlers -Shri Yogeshwar Dutt
 and Shri Sushil Kumar won gold medals for our Country at the
 Commonwealth Games held in 2014. Yogeshwar Dutt also won the Gold Medal
 at the Asian Games in 2014.
 SAIL continued its thrust on reaching out to its target audience both
 in rural and urban areas through its radio campaign, advertisements in
 print media and through specialized product brochures, etc. SAIL has
 also been recognized as an important player in Nation building and is
 poised to play an important role in Hon''ble PM''s – Make in India
 In line with the Swachh Bharat Abhiyan initiative by the Hon''ble PM, a
 ''Swachh SAIL, Sundar SAIL'' campaign was launched and SAIL has also
 developed a set of collateral''s such as SAIL Diary & Calendar, Flyers,
 Posters, specifically highlighting the importance of Cleanliness
 Activities in day to day life.
 SAIL Vigilance lays emphasis on preventive and proactive vigilance
 activities to curb corruption and malpractices with a view to safeguard
 the interest of the Organization and to facilitate a conducive
 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 2014-15:
 - To increase vigilance awareness amongst employees,
 vigilance awareness sessions and workshops were regularly held at
 various Plants and Units. A total of 158 workshops involving 4006
 participants were organized for enhancing Vigilance Awareness on
 Whistle Blower Policy, Lokpal & Lokayukta Act, 2013, Purchase/Contract
 Procedures, RTI Act, Conduct, 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
 3174 periodic checks including file scrutiny and Joint Checks were
 conducted at different Plants / Units.  Saving of approx. Rs. 19.93
 Crores 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 and 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 SAIL during
 the period 27.10.2014 to 01.11.2014, on the theme of Combating
 Corruption – Technology as an enabler.
 During the week, various events including Quiz, Debate & Essay
 competition and workshops on revised Purchase/ Contract Procedure, 2014
 (PCP-14) were organized across all Plants and Units. Further,
 interactive awareness sessions with major customers /stakeholders were
 also conducted. On the closing day, Chairman, SAIL released the 12th
 issue of ''INSPIRATION'' in-house journal of SAIL Vigilance.  Chairman,
 SAIL also formally released the revised Purchase / Contract Procedure
 of SAIL, 2014 (PCP-14) which has become effective from 01.09.2014.
 - The following four (4) thrust areas were identified for SAIL
 i) Increase e-auction (Reverse Auction & Forward Auction) in all
 ii) Scrutiny of files pertaining to 13 high value projects being
 undertaken at various Plants and 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 & testing
 of high value raw materials and installing auto analyzers & auto
 samplers for raw material testing and sampling
 - Revision of Purchase /Contract Procedure (PCP) 2009:
 After incorporating the concepts of Expression of Interest (EOI) route
 & pre-bid discussions for technically complex projects, freezing of
 estimates before NIT, etc. along with the other CVC Guidelines issued
 relating to tenders and procurement, the revised PCP-2014 was brought
 out, which became effective from 1st September, 2014.
 - Revision of Standard Bidding Document (SBD) 2009 of SAIL:
 After incorporating the suggestions of Vigilance Department amongst
 others, the updated SBD, was implemented w.e.f.  October, 2014.
 - Revision in the list of Sensitive Areas (2009):
 The following three areas have been added to the existing list of 22
 sensitive areas from 20th June 2014:
 i.  Corporate Social Responsibility Group.
 ii.  Contract Labour Cell.
 iii. Section of Personnel Department dealing with the Appraisals and
 Promotion of Executives
 - Revision of SAIL Vigilance Manual 2011:
 After incorporating new CVC Guidelines relating to tenders, whistle
 blower complaints, disciplinary proceedings, Lokpal & Lokayukta Act
 2013 and updating the existing clauses related to sanction of
 prosecution, sensitive areas and job rotation, Quality Management
 System, etc., SAIL Vigilance Manual - 2015 has been released on 23rd
 March 2015.
 - Vendors'' Meet:
 A Vendors'' Meet was organized on Implementation of Integrity Pact on
 24.02.2015. The last such Vendors'' meet was organised in the year 2009.
 Around 30 renowned Indian and Foreign Vendors for Projects, Corporate
 Material Management Group (CMMG) and Coal Import Group (CIG) attended
 the programme. Chairman, SAIL, three Independent External
 Monitors(IEMs), Functional Directors of SAIL and Chief Vigilance
 Officer were present during the meet.
 - ''Inspiration- Prerna'', an in-house publication of SAIL Vigilance is
 being published regularly. The above publication contains case studies,
 articles from the employees, quiz on policy matters, important CVC
 circulars etc. to enhance awareness of the readers.
 Vigil Mechanism
 The Company has adopted Vigil Mechanism for conducting the affairs in a
 fair and transparent manner by adopting highest standards of
 professionalism, honesty, integrity and ethical behaviour. All
 employees of the Company and Directors on the Board of the Company are
 covered under this Mechanism. This Mechanism has been established for
 employees to report concerns about unethical behaviour, actual or
 suspected fraud or violation of Code of Conduct. It also provides for
 adequate safeguards against the victimization of employees who avail of
 the Mechanism and allows direct access to the Chairperson of the Audit
 Committee in exceptional cases.
 The Management Discussion and 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, 2015 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, 2015 under section 143(6) of the
 Companies Act, 2013 and the Managements replies thereto are placed at
 Pursuant to the direction of the Central Government for audit of cost
 accounts, the Company has appointed M/s. Sanjay Gupta & Associates,
 M/s. K.C. Kohli & Co. and M/s. R.J. Goel & Co. as Cost Auditor(s) for
 the Financial Year 2015-16.
 In terms of the provisions of Section 204 of the Companies Act, 2013,
 the Board of Directors have appointed M/s. Agarwal S. & Associates,
 Company Secretaries, as the Secretarial Auditor to conduct Secretarial
 Audit of the Company for the Financial Year ended on 31st March, 2015.
 Secretarial Audit Report issued by M/s.  Agarwal S. & Associates is
 placed at Annexure -III. With regard to the observation of the
 Secretarial Auditor that composition of the Board of Directors of the
 Company was not in compliance with Clause 49(II) of the Listing
 Agreement, para 3.1.2 & 3.1.4 of the DPE Guidelines on Corporate
 Governance and Section 149(4) of the Companies Act, 2013, it is stated
 that SAIL is a Government Company and in terms of its Articles of
 Association, the Directors on its Board are appointed by Government of
 India or by the Board of Directors and Shareholders on nomination by
 Government of India. The Company has requested Ministry of Steel,
 Government of India for appointment/nomination of requisite number of
 Independent Directors on its Board.
 In terms of Listing Agreement with the Stock Exchanges, a 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 the Listing Agreement,
 the Board has laid down a Code of Conduct for all Board Members and
 Senior Management Personnel 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
 In terms of Circular CIR/CFD/DIL/8/2012 dated August 13, 2012 issued by
 SEBI, the Business Responsibility Report describing the initiatives
 taken by the Company from Environmental, Social and Governance
 perspective is placed at Annexure VI.
 Subsidiaries, Joint Ventures and Associates
 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.
 Your Company has four other wholly owned subsidiary Companies namely,
 SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant
 Limited, SAIL Sindri Projects Limited and Chhattisgarh Mega Steel
 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.  Chhattisgarh Mega Steel Limited has been incorporated on
 20th January, 2015, as a Special Purpose Vehicle for setting up of an
 Ultra Mega Steel Plant of 6 Million Tonnes per annum as a green field
 steel project under Joint Venture.
 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.
 During the year, Chhattisgarh Mega Steel Limited was incorporated as a
 subsidiary company. Further, your Company sold its entire stake of 26%
 in Bokaro Jaypee Cement Limited (BoJCL) on 26th November, 2014 and
 consequently, BoJCL ceased to be a joint venture company of SAIL.
 Consolidated Financial Statements
 Pursuant to provisions of Section 129 (3) of the Companies Act, 2013,
 the duly Audited Consolidated Financial Statements are placed at
 Annexure-VII. The Statutory Auditors'' Report on the Consolidated
 Financial Statements along with the Management''s replies thereon is
 placed at Annexure-VIII. The Comments of Comptroller and Auditor
 General of India (C&AG) on the Consolidated Financial Statements of the
 Company for the Financial Year ended 31st March, 2015 and the
 Management''s replies thereto are placed at Annexure-IX. Further, the
 statement containing salient features of the financial statements of
 the subsidiary, joint venture and associate companies in the prescribed
 Form AOC-1 is placed at Annexure -X.
 Extract of Annual Return
 The Extract of Annual Return in Form MGT 9 as per the provisions of the
 Companies Act, 2013 and Rules prescribed therein is placed at
 Annexure -XI.
 Board Meetings
 During the year, 12 meetings of the Board of Directors of the Company
 were held, the details of which are given in the Corporate Governance
 Report placed at Annexure- IV.
 Audit Committee
 The Audit Committee of the Board was initially formed by the Company in
 1998. The Audit Committee has been reconstituted from time to time and
 as on 31.03.2015, it consisted of Dr.  Atmanand, Shri J.M. Mauskar and
 Shri S.S. Mohanty. During the last year, the Audit Committee met 10
 times. The minutes of the Audit Committee meetings are circulated to
 the Board, discussed, and taken note of.
 Internal Financial Control System
 The Company has an internal control system with reference to the
 Financial Statements commensurate with the size and nature of its
 business. The Audit Committee assists the Board of Directors in
 fulfilling its oversight responsibilities by reviewing the Financial
 Reports; the Company''s systems of internal controls regarding finance,
 accounting and legal compliance that Management and the Board have
 established; and the Company''s auditing, accounting and financial
 reporting process generally. The Audit Committee reviews reports of the
 Internal Auditors, meets Statutory Auditors, discusses their findings,
 suggestions and other related matters and reviews major Accounting
 Policies followed by the Company. The Audit Committee reviews with
 management, the Quarterly and Annual Financial Statements before their
 submission to the Board.
 The Audit Committee in its meetings with the Company''s Statutory
 Auditors also ascertains their views on the adequacy of internal
 control systems in the Company and their observations on financial
 reports. The Audit Committee''s recommendations are acted upon by the
 Directors'' Responsibility Statement
 Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors
 state that:
 (i) in the preparation of the Annual Accounts, the applicable
 Accounting Standards have been followed along with proper explanation
 relating to material departures;
 (ii) 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) 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) the Directors have prepared the Annual Accounts on a Going-
 Concern basis.
 (v) the Directors have laid down internal financial control to be
 followed by the Company and that such internal financial controls are
 adequate and are operating effectively; and
 (vi) the Directors have devised proper systems to ensure compliance
 with the provisions of all applicable laws and that such systems are
 adequate and operating effectively.
 Independent Directors Declaration
 In terms of section 149(7) of the Companies Act, 2013, necessary
 declaration has been given by each Independent Director stating that he
 meets the criteria of independence as provided in sub- section (6) of
 Section 149 of the Companies Act, 2013.
 Particulars of Loans, Guarantees or Investments under Section 186
 The details of Loans, Guarantees, Investments given during the
 Financial Year ended on 31st March, 2015 are given in Annexure- XII in
 compliance with the provisions of Section 186 of the Companies Act,
 2013 read with Companies (Meetings of Board and its Powers) Rules,
 Particulars of Contracts or Arrangements with Related Parties Referred
 to in Sub-Section (1) of Section 188
 All the contracts / arrangements / transactions entered by the Company
 during the financial year with related parties were in the ordinary
 course of business and on an arm''s length basis. The transactions with
 the related parties have been disclosed in the financial statements.
 Therefore, particulars of contracts or arrangements with related
 parties referred to in Section 188(1) along with the justification for
 entering into such contract or arrangement in Form AOC-2 does not form
 part of the report.
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings and Outgo
 In accordance with the provisions of Section 134(3)(m) of the Companies
 Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 the
 particulars relating to Conservation of Energy, Technology Absorption
 and Foreign Exchange Earnings and Outgo are given at Annexure-XIII.
 Risk Management Policy
 Your Company had envisaged the need and benefits of the Risk Management
 at the enterprise level through a laid down procedure and rules as
 early as in 2007. Risks are inherent as a result of the uncertainties
 emerging from the business environment in which the Company operates.
 It is critical that these risks are addressed by the Company to derive
 sustainable value. Consequently, Risk Policy for SAIL was approved by
 the SAIL Board in August 2009. The Policy provides guidance for the
 management of the business and operational risks across SAIL. In line
 with the same, the Enterprise Risk Management System (ERM) was rolled
 out in 2009-10 and is now well established in the Company. The ERM in
 SAIL focuses on ensuring that risks are identified, evaluated and
 mitigated on a regular basis.
 Currently, the Enterprise Risk Management in SAIL- a well designed,
 multi-layered organization structure - exists for efficient monitoring
 and mitigation of Risks. The risk management structure in SAIL starts
 with the identification of risk at the Unit or at Corporate level
 along-with outlining a detailed plan for addressing/ controlling the
 risk within specified time schedule and through identified risk owners
 and risk champions. At SAIL, Risks have been identified in wide ranging
 areas and mitigations plans drawn up to address these risks.
 The monitoring of the ERM function in SAIL, under the SAIL Board, lies
 with the Audit Committee and the SAIL Risk Management Committee. In
 line with the recent changes in the Listing Agreement, setting up of
 the SAIL Risk Management Committee ( SRMC) had been approved by the
 Board of Directors in December, 2014. The SRMC oversees the risk
 management function in SAIL by addressing issues pertaining to policy
 formulation as well as evaluation of the risk management function to
 assess its continuing effectiveness. It is also to assist the Board in
 framing and monitoring the Risk management system for the Company and
 guiding the Risk Policy.
 Corporate Social Responsibility
 Your Company has adopted a balanced approach towards inclusive growth
 consistent with socio-economic environment. The Company continued to
 focus on helping the downtrodden and the underprivileged with its
 development oriented Corporate Social Responsibility (CSR) projects in
 the areas of Healthcare, Drinking water, Sanitation, Education, Women
 Empowerment, Livelihood Generation, and many more.
 Inspired by clarion call of the Hon''ble Prime Minister for construction
 of toilets in schools under Swachha Vidyalaya Campaign, a drive to
 promote sanitation and hygiene in remote areas, SAIL has undertaken
 construction of toilets in schools without toilets/having dysfunctional
 toilets falling within the peripheral areas of SAIL Plants & Units
 which have been allocated to SAIL by Ministry of HRD on its website.
 In compliance of the provisions of the Companies Act, 2013 and Rules
 framed thereunder, a Board level CSR Committee is functioning under the
 Chairmanship of an Independent Director with Director (Finance),
 Director (Technical) and Director (Personnel) as members. A CSR Policy
 for the Company has been formulated with the approval of the Board and
 displayed on website of the Company.
 In view of changing CSR façade of the Country, SAIL has modified the
 CSR focus of the Company to accommodate a few large scale CSR projects
 in mission mode which are expected to have major impact on the
 Socio-Economic Development of the targeted groups in peripheral areas.
 These Mission Projects embark on the focus areas of education,
 sanitation, environment conservation, watershed development and skill
 development in line with Schedule VII of the Companies Act, 2013.
 SAIL is providing specialized and basic healthcare to more than 39.11
 million rural people through its well-established 53 Primary Health
 Centers, 23 Hospitals, 7 Reproductive and Child Health Centers and 7
 Special Hospitals.
 Endeavoring to facilitate the free medical and health check-up, path
 lab, treatment, medicine, immunization, etc. in remote areas, SAIL
 approached the doorsteps of 1.5 lakh underprivileged populace through
 its Mobile Medical Units (MMUs)/Ambulances and 2500 health camps in
 2014-15. In 2014-15, more than 1 Lakh needy people availed free medical
 care including medicines at our exclusive Seven Health centres (Kalyan
 Chikitsalaya) for poor.
 Over 80 lakh people across 450 villages have been connected to
 mainstream India by SAIL since its inception by construction and repair
 of roads. Over 10100 water resources have been installed during past
 five years thereby providing easy access to drinking water and
 benefitting over 43 lakh people living in far-flung areas.
 Your Company envisions the aptitude and faculties of the learned,
 enlightened citizens who can transform the society. The Company owns
 and run over 129 schools in its townships to provide holistic education
 to about 60,000 children and is providing assistance to another 629
 schools having 95,000 students. Seven Special Schools (Kalyan
 Vidyalaya), established at Steel Plants'' locations exclusively for BPL
 families, are providing free education, mid-day meals, uniform
 including shoes, text books, stationary items, school bags, water
 bottles and transportation to around 1600 students.  Scholarships to
 1670 deserving undergraduate & postgraduate engineering students,
 adoption of 152 tribal children in naxal affected areas, nearly extinct
 Birhore tribes, sponsoring youths for Industrial Training & Nursing
 course, etc. are the major steps taken for uplifting poor, including
 OBC, SC, ST, etc. The Company, in association with Akshya Patra
 Foundation, is providing mid-day meals to 63,000 students of 570 Govt.
 schools every day in and around Bhilai and Rourkela.
 In order to bridge the disparity between rural and urban areas and also
 for comprehensive development of both physical and social
 infrastructure, 79 villages have been developed as Model Steel
 Villages across the Country (in eight States).
 To promote use of renewable sources of energy, Solar street lights have
 been installed, Solar Lanterns and smokeless chullahs have been
 distributed among the rural people, over 20000 trees have been planted
 and maintained at various locations.
 In an effort to align the marginalized masses of remote Saranda forest
 with the mainstream, SAIL provided ambulances, bicycles, transistors,
 solar lanterns and has set up an Integrated Development Centre at Digha
 village in Saranda.
 SAIL, as a responsible Corporate Citizen, supported the rehabilitation
 initiatives for the people affected by Natural Calamities like floods
 in Jammu & Kashmir, Phylin cyclone in Odisha, Flash Floods in
 Uttarakhand, etc.
 Vocational and specialised skill development training targeted towards
 sustainable income generation has been provided to 3000 village youths
 and 7000 women folks of peripheral villages in 2014- 15, in areas such
 as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing,
 Welder, Fitter & Electrician Training, Improved agriculture, Mushroom
 cultivation, Goatery, Poultry, Fishery, Piggery, Achar/Pappad/Agarbati
 making, Screen printing, Handicrafts, Sericulture, Yarn Weaving,
 Tailoring, Sewing & embroidery, Smokeless chullah making, being a means
 to live a dignified life. 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 bond
 with mainstream. Over 800 youths have been sponsored for ITI training
 at ITCs Bolani & Bargaon and Bokaro Pvt ITI, etc.
 Over 20,000 rural youth/school students participated in varied events
 organized by SAIL for promoting the local art, culture and sports at
 different locations throughout the year. To elucidate Chhattisgarh Lok
 Kala Mahotsav, Lok Samskrutik Mahotsav, Gramin Lokotsav, Samvardhan :
 Rural Sports events, Gamin Athletics Competition, inter-village sports
 tournaments, inter- school girls'' sports events and SAIL Khel Mela,
 being the major events organized during 2014-15.
 SAIL''s efforts as a responsible corporate citizen in Nation building
 have been recognized by various organizations in the form of awards and
 accolades during the year such as Golden Peacock Award, PHD Meritorious
 Award : ''Best Companies for CSR, 2014''; Skoch Order-of-Merit for the
 Skoch Renaissance Award-2014; Good Corporate Citizen Award-2014;
 Greentech Gold Award for CSR-2015, etc..
 In terms of provisions of the Companies Act, 2013, the Report on
 Corporate Social Responsibility in the prescribed format is placed at
 Annexure–XIV. The reasons for not spending the prescribed amount have
 also been disclosed in the Report.
 General Disclosures
 i. During the year, the Company has not accepted any deposits under the
 Companies Act, 2013.
 ii. No significant or material orders were passed by the Regulators or
 Courts or Tribunals impacting the going concern status and Company''s
 operations in future. However, attention of members is drawn to the
 statement on contingent liabilities in notes forming part of the
 Financial Statements.
 - Shri N.C. Jha and Mrs. Parminder Hira Mathur resigned from the Board
 of Directors of the Company w.e.f. 19.09.2014.
 - Shri R.S. Sharma and Shri D.K. Mittal ceased to be Director of the
 Company w.e.f. 23.09.2014.
 - Shri U.P. Singh ceased to be Government Director of the Company
 w.e.f. 29.09.2014.
 - Dr. Isher Judge Ahluwalia resigned from the Board of Directors of the
 Company w.e.f. 10.11.2014.
 - Shri Sunil Barthwal has been appointed as Government Drector on the
 Board of the Company on 22.12.2014.
 - Shri Sujit Banerjee and CA Arun Kumar Srivastava ceased to be
 Directors of the Company w.e.f. 15.01.2015.
 - Shri Vinod Kumar Thakral ceased to be Government Director of the
 Company w.e.f. 12.03.2015.
 - Smt. Bharathi S. Sihag has been appointed as Government Director on
 the Board of the Company on 16.03.2015.
 - Shri H.S. Pati ceased to be Director of the Company w.e.f.
 - Shri T.S. Suresh ceased to be Director of the Company w.e.f.
 - Shri CS. Verma ceased to be Chairman & Managing Director of the
 Company w.e.f. 10.06.2015(A/N)
 - Shri Rakesh Singh, Secretary to the Government of India, Ministry of
 Steel assumed Additional Charge as Chairman & Managing Director of the
 Company w.e.f. 11.06.2015(F/N).
 The Board of Directors wish to place on record their appreciation for
 the support and co-operation 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 co-operation. 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
                                                        (Rakesh Singh)
                                         Secretary, Ministry of Steel,
                                                 Government of India &
                                    Chairman & Managing Director, SAIL
                                                   (Additional Charge)
 Place: New Delhi 
 Dated: 14th August, 2015
Source : Dion Global Solutions Limited
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