SENSEX NIFTY
Steel Authority of India Directors Report, SAIL Reports by Directors
YOU ARE HERE > MONEYCONTROL > MARKETS > STEEL - LARGE > DIRECTORS REPORT - Steel Authority of India
Steel Authority of India
BSE: 500113|NSE: SAIL|ISIN: INE114A01011|SECTOR: Steel - Large
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
, 16:01
87.45
0.05 (0.06%)
VOLUME 813,599
LIVE
NSE
, 16:01
87.50
0.05 (0.06%)
VOLUME 3,859,184
Download Annual Report PDF Format 2013 | 2012 | 2011 | 2010
Directors Report Year End : Mar '13    « Mar 12
To, The Members,
 
 The Directors have pleasure in presenting the 41st Annual Report of the
 Company together with Audited Accounts for the Financial Year ended
 31st March, 2013.
 
 FINANCIAL REVIEW
 
 Your Company achieved a turnover of Rs.49,350 crore during the
 Financial Year 2012-13 which was almost at the same level as that of
 last year (Rs.50348 crore). The profit after tax of your Company for
 the Financial Year 2012-13 was Rs.2170.35 crore compared to Rs.3542.72
 crore in the previous Financial Year. Net profit was down largely due
 to the lower Net Sales Realization resulting from a subdued market.
 Higher usage of external inputs like BF Coke & pellets and higher
 salary & wages were other key factors impacting profitability
 adversely. The comparative performance of major financial parameters
 during the FinancialYears 2012-13 and 2011-12 is given in Management
 Discussion and Analysis Report.  SAIL continued its thrust on optimum
 utilisation of funds by better fund management. This included
 replacement of high cost short term loans with low cost debts, timely
 Repayment of loans including interest, strategic parking of surplus
 funds with scheduled banks, actions for future fund raising etc. to
 meet our growth objectives.  Further, the Company hedged the foreign
 currency risk on Buyer''s Credit and repayment of External Commercial
 Borrowing depending on market conditions. The Company had liquid assets
 of Rs.3,400 crore as on 31st March, 2013 invested in short term
 deposits with scheduled banks against borrowings of Rs.21,597 crore as
 on 31st March, 2013. The debt equity ratio of the Company was 0.53:1 as
 on 31st March, 2013 as against 0.41:1 as on 31st March, 2012 which went
 up on account of increase in borrowings during the year to fund the
 ongoing capital expenditure.
 
 The net worth of your Company improved from Rs.39,811 crore as on 31st
 March, 2012 to Rs.41,025 crore as on 31st March, 2013 and this helped
 in generation of internal resources for funding expansion plans of
 SAIL.  During the Financial Year 2012-13, SAIL''s relentless drive to
 fast track its modernization & expansion plan resulted in commissioning
 of projects worth Rs. 5500 crore. A capital expenditure of Rs. 9,731
 crore was made during the year.
 
 Your Company paid interim dividend @ 16% of the paid-up equity share
 capital during the year. The Board of Directors has further recommended
 a final dividend @ 4%, subject to approval of shareholders, thus making
 the total dividend @ 20% of the paid up equity share capital for the
 Financial Year 2012-13. A sum of Rs.163 crore has been transferred to
 the general reserves during the Financial Year 2012-13 (previous year
 Rs.275 crore).
 
 Credit Rating:
 
 M/s. FITCH and M/s. CARE, RBI approved credit rating agencies,
 maintained ''AAA'' ratings, indicating the highest safety, for SAIL''s
 long term borrowing programme. The International Borrowings programme
 of the Company has been rated at ''BBB-'' by M/s Fitch ratings and M/s
 Standard & Poor''s, which is also the sovereign rating of the Country.
 
 PRODUCTION REVIEW
 
 Notwithstanding the challenging market conditions in 2012-13 arising
 from demand stagnation, your Company produced 13.4 million tonnes (MT)
 of crude steel by operating at 103% of its capacity, marking an
 improvement of 1% over CPLY. In line with its long term objective of
 increasing the proportion of value added steel in the overall product
 basket of SAIL, the production of special steels was scaled up to 5 MT,
 up by 4% over last Financial Year. Best ever power generation of 690 MW
 was achieved during the Financial Year 2012-13, with a growth of 4%
 over last year. Improvement was also achieved in the production of Hot
 Metal, Finished Steel and Continuous Cast Steel with a growth of 1%
 each over last year.
 
 SAIL plants have taken various initiatives to enhance production
 processes, by improving operational discipline and minimizing equipment
 downtime.  This has led to a significant improvement in operating
 parameters, leading to best ever techno-economic efficiency. SAIL
 Plants recorded the best ever specific energy consumption of 6.68
 Gcal/tcs, an improvement of 3% over last year.This was achieved, as
 production through energy efficient CC route went up by 1% as compared
 to last year. Lowest ever coke rate at 512 kg/thm was achieved, with an
 improvement of 1% over last year.  This was possible primarily because
 of higher usage of CDI (Coal Dust Injection) at 54 kg/thm as compared
 to 51 kg/thm achieved last year. Best ever BF-Productivity of 1.58
 T/m3/day was achieved, with an improvement of 5% over last year, by
 consistent operation of Blast furnaces at BSP, DSP and RSP where 2%, 8%
 and 3% growth was achieved in BF-Productivity.  Your Company has
 strived to enhance its product basket by developing several new
 products during the year. Bhilai Steel Plant developed special soft
 iron magnetic plates for the prestigious India-based Neutrino
 Observatory (INO) Project of Bhabha Atomic Research Centre (BARC).  Our
 Plants at Bokaro and Salem started production of IS 2062 E450 and E 350
 HR Coils, tailor-made for wagons used by the Indian Railways. For the
 petrochemicals industry, Bhilai and Rourkela developed a new grade of
 ASTM 537 plates, which finds application in pressure vessels. Another
 product which caters to petrochemical industry is the NACE quality
 plate developed by SAIL Bhilai. These crack-resistant plates are ideal
 for transportation of gases having high Hydrogen-Sulphide content. SAIL
 Bokaro came out with ultra high strength HR and CR steel with Mn-B,
 especially for auto body components, thereby enhancing our presence in
 that sector. Besides catering to large scale industry, our penetration
 also improved in the medium and small scale industries with 31 CrV3
 grade billets rolled out in Durgapur Steel Plant for the first time in
 India; a product which finds a growing market among makers of spanners
 and hand tools.
 
 Several initiatives have been undertaken for implementation of R&D
 Master Plan of SAIL. An exhaustive Master Plan for R&D was prepared
 aiming at integrating R&D activities towards business and operational
 goals of your Company. The implementation of this Master Plan; besides
 giving a competitive advantage to SAIL by improving efficiencies,
 reducing costs, meeting market demands and upgrading current steel
 technologies; will also help in gradually increasing R&D expenditure to
 a level of 1% of sales turnover, which is an international benchmark.
 
 R&D Master Plan is envisaged to have positive impact on the existing
 operations through implementation of centralized and decentralized
 projects. Centralized projects consist of High Impact Projects (HIP)
 and Technology Mission Projects (TMP). The projects which are of common
 interest to all integrated steel Plants viz. coal & coke beneficiation,
 pelletisation, environmental projects etc. will come in the category of
 HIP, Development/acquisition of radically new technologies which are of
 strategic importance for SAIL viz. thin strip casting and inline
 rolling, CRGO etc. will be pursued throughTM Projects. Under the
 decentralized category, all the Plants/Units of SAIL have Centres of
 Excellence (CoE) in selected areas/products. Centre of Excellence
 projects mainly focus on augmenting product volume and product
 attribute.
 
 Centres of Excellence have been created at all plants and RDCIS. 13
 projects have been identified as CoE Projects, 2 each at BSP, RSP, ISP
 and SSP and one each at BSL, DSP, ASP, VISL and RDCIS. These projects
 have taken shape in terms of formulation of objective, scope, duration,
 budget and deliverables. A few examples are better quality plates and
 rails at Bhilai, high performance Cold Rolled Sheets at Bokaro, CRNO
 and API pipes at RSP etc. Three HIPs are being pursued with specific
 objectives of beneficiation and pelletisation of iron ore at mines,
 assimilation of new technologies for coke oven, sinter making and blast
 furnace at ISP and identification of new uses of BF and BOF sludge &
 slag for improving solid waste utilisation. Under the Technology
 Mission (TM) projects, discussions have been initiated with technology
 suppliers for acquiring technology for Thin Slab Casting & Direct
 Rolling (TSCDR) and CRGO Steel production.
 
 Raw Materials
 
 During the Financial Year 2012-13, total requirement of iron ore was
 met from captive sources. The Company''s captive iron ore mines produced
 about 21.48 million tonnes. However, in case of coking coal, around 24%
 requirement was met from indigenous sources and balance through
 imports. During the FinancialYear 2012-13, production in captive
 collieries of the Company was about 0.82 million tonnes. In case of
 fluxes, around 1.26 million tonnes of limestone and 0.96 million tonnes
 of dolomite was produced resulting in total production of 2.22 million
 tonnes from captive sources. For thermal coal, your Company depends
 entirely on purchases from Coal India Limited (CIL) except small
 quantity produced from captive mines.
 
 During the Financial Year 2012-13, your Company got the final forest
 clearance for Bolani, Barsua and Stage-I forest clearance for Gua Iron
 Ore Mines. Environment clearance for the capacity expansion of Gua and
 Bolani Iron Ore Mines and renewal of Dhobil mine were also obtained
 from MoEF, Government of India (GoI). Two mining leases of Kuteshwar
 Limestone mines got renewed for further period of twenty years.
 
 For ensuring regular supplies of iron ore, capacities of existing iron
 ore mines are being expanded and new iron ore mines are being
 developed.  In addition, new iron ore deposits in the States of
 Rajasthan, Chhattisgarh, MP, Maharashtra, Odisha and Karnataka are
 being explored.
 
 For improving coking coal security, your Company is also making efforts
 for development of new coking coal blocks at Tasra and Sitanala. At
 Tasra Coal Block, Letter of Acceptance (LoA) has been issued to the M/s
 Lanco Infratech on 26th July''13 for development of 4 MTPA (ROM) coal
 capacity mine through open cast mining and production of washed coal
 through establishing a washery of 3.5 MTPA input capacity and further,
 setting up of 200-300 MW Power Plant through JV route based on
 secondary product available from Tasra Washery. Production is likely to
 start by mid 2015 after completing pre-development activities such as
 land acquisition, R&R, setting up infrastructure like Coal Handling
 Plant, Heavy Earth Moving Machineries (CHP, HEMM), etc. M/s Lanco
 Infratech was selected as the H-I bidder (on Net Present Value basis)
 for development of Tasra coking coal block as Mine developer cum
 operator (MDO).
 
 For allotment of new thermal coal blocks applications have been
 submitted to Ministry of Coal, GoI and for coking coal Ministry of
 Coal, GoI has been approached for allotment of 2-3 coking coal blocks
 under Government dispensation route.
 
 SALES & MARKETING REVIEW
 
 - SAIL achieved a total sales volume of 11.35 million tonnes during
 the Financial Year 2012-13. Exports during the year at 0.368 million
 tonnes achieved 10.1% growth over previous year. Major categories where
 growth was recorded in home sales included: HR Coils: 2.1%, CR
 Coils/Sheets: 4.6%, GP/GC: 5.3%, Wire Rods: 1.7% and Electrical Steel
 Sheets: 16.8%. New records were also set in supplies of Wheels to
 Indian Railways during the year.
 
 - Highest ever sales of LPG grade HR Coils were achieved at 2.07 lac
 tonnes during the Financial Year 2012-13 registering 6.8% growth over
 the previous best achieved during 2011-12.
 
 - Supplies were started to rural dealers appointed under SAIL Rural
 Dealership Scheme which was launched in the year 2011-12 with the
 primary objective of meeting the steel demands of the small rural
 consumers at block, tehsil and taluka levels. Under this scheme 562
 rural dealers were appointed during the Financial Year 2012-13.
 Process for further appointments is under progress. As on 1st April,
 2013 SAIL has a wide network of 2896 dealers spread over 629 districts
 of the country.
 
 - The Company maintained its presence in neighbouring and traditional
 markets and exported 0.368 million tonnes steel during the year.  DSP
 Blooms and Chequered Coils were exported for the first time by the
 Company.
 
 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 14.3 million tonnes during the Financial
 Year 2012-13 to 23.5 million tonnes after expansion in a phased manner.
 The growth plan, besides targeting higher production, also addresses
 the need for eliminating technological obsolescence, achieving energy
 savings, enriching product-mix, reducing pollution, developing mines
 and collieries, introducing customer centric processes and developing
 matching infrastructure facilities.
 
 To maintain its current dominance in the domestic market and to meet
 the future challenges, your Company is working on a long term strategic
 plan ''Vision 2025'', which will steer the Company towards a target of 50
 million tonnes of hot metal production, thereby meeting the strategic
 objectives of achieving leadership in Indian steel sector and a
 position amongst the top steel companies globally.
 
 MODERNISATION & EXPANSION PROGRAMME 
 
 Steel Industry requires continuous Capital Investments for
 technological up-gradation and Addition/Modification/Replacement of its
 capital assets which are essential to maintain market competitiveness
 and meet the challenging need of customers. The market is becoming
 increasingly competitive making it imperative for Steel Authority of
 India Ltd. (SAIL) to make determined efforts to bring about substantial
 improvement in production, techno-economic parameters and
 profitability. Accordingly, the Modernisation & Expansion Program of
 SAIL aims towards almost doubling its production capacity with energy
 efficient and environment friendly technology and a wider product
 range.
 
 SAIL is currently implementing a Modernisation & Expansion Programme
 simultaneously at its five integrated steel plants at Bhilai, Durgapur,
 Rourkela, Bokaro & Burnpur and special steels plant at Salem including
 augmenting raw material resources and other related facilities. The
 Modernisation & Expansion Programme, apart from increasing the
 production capacity addresses the vital issues of elimination of
 technological obsolescence, installation of energy efficient &
 environment friendly technologies, value addition/ product-mix
 improvement/ sustenance of existing assets of the plants and
 introduction of customer- centric processes such as Enterprise Resource
 Planning (ERP) and Manufacturing Execution System (MES). At Salem Steel
 Plant, the production facilities envisaged under Expansion Program have
 already been installed and units are in regular production. At other
 Plants/Units, the expansion programmes are at advanced stage of
 implementation.  SAIL Board accorded ''in-principle'' approval for
 various new Projects with an estimated total outlay of around Rs. 1,641
 crore during the year.  Orders for about Rs. 58,151 crore have been
 placed (till Mar''13) under the current phase of Modernisation &
 Expansion Plan of SAIL. A capital expenditure of Rs.9,731 crore has
 been incurred during the financial year 2012-13 on this account and
 till Mar, 2013, the capital expenditure of Rs. 44,112 has been incurred
 under this program. The capital expenditure planned to be incurred
 during 2013-14 has been planned at Rs.11,500 crore. Current status of
 progress of implementation of Modernisation & Expansion Plan is given
 in Management Discussion and Analysis Report.  AMR Schemes:
 
 A number of capital projects costing Rs. 2556.28 crore are under
 implementation which include Augmentation of Grinding Facilities for
 Coal Dust Injection Unit in BF-6 & 7, Installation of Oxygen Evacuation
 Facilities for 2x1250 TPD New Oxygen Plant, Appointment of consultant
 for development of Rowghat Iron Ore Deposit, Cold Repair of COB-9 and
 Up-gradation of Stoves of BF-4 at BSP; Coal Dust Injection in BF-4,
 Battery Proper Pkg for Rebuilding of COB-3, Installation of Additional
 Heat Treatment Facilities in SPP, Re-habilitation of Mandira Dam,
 Installation of 125 tpd Sulphuric Acid Plant and Replacement of 2 nos
 of Process ESPs in SP-1 at RSP; Installation of Bell Less Top Charging
 System (BLT) in BF-3 & Re-building of COB-5 at DSP; Replacement of
 Converter Shell trunion ring and Pedestal Assembly in SMS-2 at BSL;
 Installation of One 45 Sub-merged Arc Furnace, 4 MW Power Plant and 220
 KV Sub-station at Chandrapur Ferro Alloy Plant and Projects for
 Development of Mines.  HUMAN RESOURCE MANAGEMENT REVIEW SAIL recognizes
 contribution of its Human Resources (HR) in providing the competitive
 advantage. SAIL has achieved its present level of excellence through
 investing in its human resource, whose skill and knowledge constitute
 the basis of every initiative - be it technology or innovation.
 Developing skills and capabilities of employees to improve manpower
 utilization and Labour Productivity is the key thrust area of Human
 Resource Management (HRM) in SAIL.
 
 SAIL provides an environment conducive for learning, encourages
 adoption of best practices in every area and nurtures creativity and
 innovativeness among employees. HR initiatives in SAIL are focused on
 developing team spirit, employee empowerment and their involvement in
 various improvement activities. Strategic alignment of Human Resource
 Management to business priorities and objectives has facilitated smooth
 transition to state-of-the-art technology in the modernization and
 expansion projects.
 
 Enhanced Productivity with Rationalized Manpower
 
 SAIL achieved the highest ever Labour Productivity (LP) of 258 TCS/
 Man/Year in the Financial Year 2012-13. The manpower strength of SAIL
 was 101878 nos. (as on 31.03.2013) with manpower rationalization of
 4126 nos. achieved during the year, The enhanced productivity with
 rationalized manpower could be achieved as a result of judicious
 recruitments, redeployment strategies, building competencies and
 infusing a sense of commitment and passion among employees to go beyond
 and excel. Trend of enhanced productivity and manpower rationalization
 since 2001-02 onwards is depicted below:
 
 Developing Employee Capabilities & Competencies
 
 In order to develop its human resources for harnessing their potential
 to the fullest and for according ample opportunity for realizing
 individual as well as organizational goals, your Company has been
 making sustained efforts through various training and development
 activities with focus on preservation of skills, transfer of skills and
 knowledge, training in specialized/advanced skills and technology in
 collaboration with reputed organizations and development of effective
 managerial competencies through association with premier institutes.
 Preparing employees for tomorrow, for effectively taking up challenges
 and discharging new roles and responsibilities was given a major
 thrust. Overall, 54810 employees were trained against target of 44958
 employees during the year on various contemporary technical and
 managerial modules.
 
 Harmonious Employee Relations
 
 - Your Company has a glorious tradition of conducive employee
 relations scenario. There has been a healthy tradition of settling the
 issues through discussions with trade unions/workers'' representatives
 and this has helped in establishing a peaceful IR climate.The Company
 has an established system of workers'' participation at different levels
 right from National level upto shop-floor level. Some of these forums
 are functioning since early seventies and are sufficiently empowered to
 address different issues related to wage, safety, and welfare of
 workers, arising from time to time thus helping in conducive work
 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
 Plant/Units, marked with diverse work culture at multi-locations.
 
 - In addition, Quality Circles, Suggestion Schemes, Shop Improvement
 Workshops also offer multiple avenues for enhanced workers''
 participation. Workers are also kept abreast of strategic business
 decisions and their views sought thereon through structured /
 interactive workshops.
 
 Grievance Redressal Mechanism
 
 - Effective internal grievances redressal machinery exists in SAIL
 Plants and Units, separately for executives and non-executives. The
 grievance procedure in SAIL has been evolved after sustained
 deliberations and consent of employees, trade unions and associations.
 
 - The grievances in SAIL Plants/Units are dealt in 3 stages and
 employees are given an opportunity at every stage to raise grievances
 relating to wage irregularities, working conditions, transfers, leave,
 work assignments and welfare amenities, etc. Such issues are
 effectively settled through the time-tested system of grievance
 management. However, majority of grievances are redressed informally in
 view of the participative nature of environment existing in the steel
 Plants. The system is comprehensive, simple and flexible and has proved
 effective in promoting harmonious relationship between employees and
 management.
 
 - A total of 1900 employee grievances were settled during the
 Financial Year 2012-13.
 
 INITIATIVES FOR SOCIO-ECONOMIC DEVELOPMENT OF SCs /STs & OTHER WEAKER
 SECTIONS OF SOCIETY
 
 SAIL follows Presidential Directives on Reservation for Scheduled
 Castes and Scheduled Tribes in the matter of recruitments & promotions.
 As on 31st March 2013, out of total manpower of 101878, 15.98% belong
 to SC category and 13.56% belong to ST category.
 
 SAIL steel Plants and Units including mines are located in economically
 backward regions of the country with predominant SC/ST population.
 SAIL has contributed to the overall development of civic, medical,
 educational, recreational and other facilities in these regions.
 
 National Commission for Scheduled Castes (NCSC) under Chairmanship of
 Dr. P. L. Punia, visited SAIL Corporate Office on 17th September, 2012.
 Vice Chairman, 3 members, Secretary and other senior officials of the
 Commission also accompanied Chairman, NCSC. Commission interacted with
 SAIL SC/ST Employees Federation and SAIL Management.  Deliberations
 were held on various initiatives of SAIL for welfare of SCs/ STs.
 Commission appreciated Socio Economic Schemes initiated by SAIL.
 
 SAIL has undertaken several initiatives for the socio-economic
 development of SCs/STs and other weaker sections of the society which
 are mainly as under:
 
 - Special schools opened exclusively for poor & underprivileged
 children at integrated steel plant locations.These schools are
 presently providing education to more than 1500 children. Free
 education, mid-day meals, transportation, text books & stationery
 items, school bags, water bottles, etc. are provided to the students in
 the school.
 
 - 188 SC/ST students belonging to BPL families/ primitive tribes have
 been adopted by our plants/mines. They are being provided free
 education, boarding, lodging, uniform, etc. for their overall growth.
 
 - No tuition fee is being charged from SC/ST students studying in the
 Company run schools, irrespective of whether they are wards of SAIL
 employees or non-employees.
 
 - Free medical health centres for poor have been set up at Bhilai,
 Durgapur, Rourkela, Bokaro, Burnpur (Gutgutpara) providing free medical
 consultation, medicines, etc. to the peripheral population mainly
 comprising of SC/ST and weaker sections of society.
 
 - Villagers are given free outdoor and indoor treatment in the mines
 hospitals of Kiriburu, Gua & Chiria after recommendations by Manki/
 Munda (Local Tribal Village Heads) of the peripheral villages.
 
 IMPLEMENTATION OF RTI ACT, 2005
 
 Your Company has been a front runner in implementation of Right to
 Information Act, 2005, in true spirit. The Company has designated
 Public Information Officers / Asstt. Public Information Officers,
 Appellate Authorities and Transparency Officers under Section 5 &
 Section 19(1) of RTI Act in each Plant & Unit for speedy redressal of
 the queries received under the Act.
 
 All Plants/Units of SAIL have listed, 17 manuals, and details of
 designated officials, in line with the provisions of the RTI Act, on
 SAIL website.Your Company has also institutionalized an exclusive RTI
 Portal for better awareness and knowledge sharing. In all, a total
 number of 3653 applications and 525 appeals were received under RTI
 Act, during the Financial Year 2012-13 and all of them have been
 disposed off within the timelines.  Efforts towards spreading awareness
 about RTI, amongst general public as also for PIOs / deemed PIOs
 continued throughout the year.
 
 AWARDS & ACCOLADES WON DURING THE YEAR
 
 - Your company has been conferred with Excellent Rating for the
 year 2011-12 for the 10th consecutive year.
 
 - SAIL bagged SCOPE Award for Best Practices in Human Resource
 Management for the year 2011-12 presented by the Hon''ble President of
 India on Public Sector Day function held on 26th April''13.
 
 - SAIL won 13 out of 28 Viswakarma Awards declared in the country,
 which is the highest for any organization amongst both private and
 public sector.
 
 - SAIL employees were awarded 11 out of 32 Prime Minister''s Shram
 Awards declared in the country. This is also the highest number for any
 organization amongst both private and public sector.
 
 - Two out of the five Olympics medal winners of the country were
 supported by SAIL (Sushil Kumar andYogeshwar Dutt). In recognition of
 SAIL''s initiatives, Rashtriya Khel Protsahan Puraskar - 2012 was
 conferred to the Company by Hon''ble President of India.
 
 - Indira Gandhi Rajbhasha Award for the best implementation of
 official language in ''A'' (Hindi-speaking) region was conferred to SAIL.
 SAIL''s Hindi magazine ''Ispat Bhasha Bharti'' was also adjudged First
 prize winner amongst the in-house journals published in ''A'' region in
 the country. These awards were conferred by Hon''ble President of India
 on Hindi Diwas i.e. 14th Sept''12.
 
 - In the International Convention on Quality Circle 2012 held at
 Kuala Lumpur, Malaysia during 14th-17th October, 2012, all the six
 participating teams from SAIL won the highest honour (3-star awards) in
 their respective categories.
 
 - SAIL was awarded CII - Sustainability Award 2012 [Certificate of
 Commendation], which was given by Hon''ble President of India on 14th
 January, 2013.
 
 - Adjudged as most efficient and largest Maharatna employer at the
 Dalal Street Investment Journal PSU Awards-2012.
 
 - SKOCH Financial Inclusion Award for 2013 for initiatives in
 corporate social responsibility.
 
 - Institution of Engineers (India)- Industry Excellence Award -2012
 under the award category A-Manufacturing & Processing.
 
 - Indira Gandhi Award (First prize) for excellence in implementation
 of Rajbhasha.
 
 - ''Ispat Bhasha Bharti''- in-house Rajbhasha journal, won the first
 prize under the Home Ministry''s All India House Journal Award Scheme.
 
 - ''Sahasrabdi Rajbhasha Shield'' from Rashtriya Hindi Academy,
 Rupambara, Kolkata.
 
 - It is also noteworthy to mention that Chairman, SAIL was conferred
 SCOPE Award for Excellence and Outstanding contribution to the Public
 Sector Management - Individual Leadership Category-I
 (Maharatna/Navratna PSEs) for 2010-11.
 
 Bhilai Steel Plant (BSP)
 
 - Prime Minister''s Trophy for the tenth time for emerging as the best
 performing steel plant in the country.
 
 - Steel Minister''s Trophy for the year 2010-11 and 2008-09.
 
 - CII-ITC Sustainability Awards-2012 - Certificate of commendation
 for significant achievement in its category.
 
 Bokaro Steel Plant (BSL)
 
 - Greentech HR Awards 2013 (Gold) under the Category of Training
 Excellence.
 
 - Golden Peacock National Training Award 2012 in steel sector for
 excellence in training practices.
 
 - Jharkhand CSR Award in the category of Regulation of Corporate
 Social and Environment Behaviour.
 
 - ''Golden Peacock HR Excellence Award'' for the year 2012.
 
 Durgapur Steel Plant (DSP)
 
 - Certificate of Strong Commitment to Excel from CII-EXIM Bank under
 Business Excellence Award.
 
 - Rajiv Gandhi National Quality Award 2011 - Certificate of
 Commendation.
 
 - Greentech Safety Award 2012 (Gold) and Greentech CSR Award 2012
 (Silver) in Metal & Mining Sector.
 
 - Greentech HR Award 2013 (Silver Trophy).
 
 Rourkela Steel Plant (RSP)
 
 - Award for Best Practices in Training and HRD-2012 from ISTD,
 Hyderabad Chapter.
 
 - ''Greentech Environment Gold Award'' in the field of eco-friendly
 steel making.
 
 - Awards under three categories - Best CSR Practices, Concern for
 Health and Women Empowerment in the World CSR Day Global CSR Leadership
 & Excellence Awards.
 
 Raw Materials Division (RMD)
 
 - No Fatal Accident in Collieries / Mines Award by the Annual Joint
 Committee on Safety, Health & Environment (JCSSI).
 
 - National Safety Awards (Mines) won by Kalta Iron Mine for Lowest
 Injury Frequency Rate and by Tulsidamar & Dalli mines for Longest
 Accident Free period.
 
 Alloy Steels Plant (ASP)
 
 - Ispat Suraksha Puraskar from JCSSI for no fatalities for two
 consecutive years.
 
 - Green Tech Environment Excellence (Silver) Award 2012.
 
 Salem Steel Plant (SSP)
 
 - Award for Excellence in Suggestion Scheme 2012 from INSSAN- SIC.
 
 - National Sustainability Award (First Prize) for the year 2011-12
 from IIM, Kolkata amongst the Secondary Steel Plants / Alloy Steel
 Plants category.
 
 RDCIS
 
 - Golden Peacock Innovation Management Award for the year 2012.
 
 CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABLE DEVELOPMENT
 
 Your Company''s focus on social responsibility remains unwavering. The
 pivotal role of education, health, income generation and sustainable
 development (SD) is the cornerstone of our Corporate Social
 Responsibility and SD initiatives.
 
 On the health front, the Company has established 53 Primary Health
 Centres, 23 Hospitals, 7 Reproductive & Child Health Centres and 7
 Super-Specialty Hospitals to provide specialized and basic healthcare
 to more than 34 million people living in the vicinity of its Plants and
 Units. In order to reach out to the underprivileged, over 4300 camps
 have been organized across the country benefitting more than 2 lakh
 people by providing free health check-up, path lab treatment, medicine,
 immunization, etc. in financial year 2012-13. 90 numbers of Mobile
 Medical Units (MMUs)/ Ambulances are being run or have been provided to
 various NGOs since 2007-08. Seven Health Centres (Kalyan Chikitsalaya)
 are being run at plants exclusively for providing free medical care
 including medicines to poor and needy families. In the Financial Year
 2012-13, healthcare was provided to more than 87,000 people through
 these exclusive health centres.
 
 Education has always been a priority area for SAIL. Company owns and
 maintains over 148 schools in its steel townships to provide modern
 education to over 55,000 children and is providing assistance to over
 492 schools. Seven Special Schools for BPL (Kalyan Vidyalaya) at five
 steel plants with facilities of free education, mid-day meals, uniform
 including shoes, text books, stationery items, school bag, water
 bottles and transportation in some cases are running under CSR. The
 strength of students in these schools is more than 1500 students.
 Scholarships to deserving undergraduate & postgraduate engineering
 students, adoption of naxal affected tribal children, nearly extinct
 Birhore tribes, sponsoring youths for Industrial Training & Nursing
 course, etc. are the major steps taken for uplifting poor, OBC, SC, ST,
 etc. SAIL is providing Mid-Day Meal to more than 22000 students in
 different schools of Bhilai everyday through Akshya Patra Foundation.
 This scheme is being replicated at Bokaro and Rourkela in Financial
 Year 2013-14.
 
 SAIL has provided access to over 75.56 lakh people across 435 villages
 since inception by constructing and repairing of roads. It has provided
 access to water infrastructure to people living in far-flung areas by
 installing over 7381 water sources, thereby providing drinking water
 access to around over 41.38 lakh people.
 
 In order to bridge the disparity between rural and urban areas as also
 to provide comprehensive development of both physical and social
 infrastructure, 79 villages have been identified & developed as Model
 Steel Villages across the country (in eight states). The developmental
 activities undertaken in these villages include medical & health
 services, education, roads & connectivity, sanitation, community
 centres, livelihood generation, sports facilities, etc.
 
 To promote renewable sources of energy, Solar street lights were
 installed and Solar Lanterns and smokeless chullahs have been
 distributed among the poor and needy in different parts of country.
 
 In an effort to bring the marginalized masses of the remote forest
 areas to the mainstream of development, SAIL in association with Govt.
 of Jharkhand and Ministry of Rural Development, GoI actively
 participated in the development process of Saranda forest, Jharkhand.
 SAIL provided ambulances, bicycles, transistors, solar lanterns and set
 up an Integrated Development Centre at Digha village in Saranda forest.
 
 Vocational training has been provided in areas such as Improved
 agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Piggery,
 Achar / Pappad/ Agarbati making, Welder, Fitter & ElectricianTraining,
 Sewing & embroidery, Smokeless chullah making etc. as a means to
 livelihood in a dignified manner.  Vocational Training centre for rural
 and unemployed youths - ''Bhilai Ispat Kaushal Kutir'' & Swayamsiddha at
 Bhilai, Skill Development and Self Employment Training Institute
 (SDSETI) at Durgapur, Garment Technician Training at Salem, JHARCRAFT
 centre at Bokaro and Self Employment centre KIRAN at Kiriburu Ore
 Mines are benefitting common masses by way of financial inclusion/
 SHG/training for income generation and then empowering them to be part
 of main stream.
 
 The Sustainable Development Performance Report (SDPR) for the year
 2011-12 has been adjudged to have met the criteria of Application Level
 A by the Global Reporting Initiative (GRI), Amsterdam.
 
 As per the DPE Guidelines on Sustainable Development (SD), SAIL took up
 Sustainable Development (SD) projects under the MoU with GOI for the
 year. These SD projects include carbon and water foot printing at SAIL
 plants, bio-diversity conservation at Bolani Iron Ore Mine, rain water
 harvesting and sustainability training.
 
 SAIL''s efforts as a responsible corporate citizen in Nation building
 have been recognized by various organizations in the form of awards and
 accolades. In the year, SAIL was awarded with Skoch Financial Inclusion
 Award-2013 by Skoch foundation for CSR, Golden Peacock National Award -
 2012 to Bhilai Steel Plant, Greentech Award for CSR - 2011 & 2012 to
 Durgapur Steel Plant, Jharkhand Sustainability Award in October, 2012
 to BSL and Global CSR Excellence & Leadership Award in categories: Best
 CSR practices, Women Empowerment & Concern for health to Rourkela Steel
 Plant.
 
 In compliance of DPE guidelines on CSR & Sustainability- 2013, the
 Company has identified Gonda district in Uttar Pradesh as ''Backward
 District'' for taking up CSR projects during 2013-14.
 
 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 web site.
 
 - Working towards delight of citizens by fail-safe processes and in
 case of exigencies leveraging its service recovery processes, like
 Grievance Redressal, Handling Complaints, etc.
 
 The Management of your Company is totally committed to excellence in
 public service delivery through good governance by a laid down process
 of identifying citizens, our commitment to them in meeting their
 expectations and our communication to them of our key policies in order
 to make the service delivery process more effective.
 
 STRATEGIC INITIATIVES OF THE COMPANY
 
 During the Financial Year 2012-13, your Company continued to give
 impetus towards taking new business initiatives, including
 incorporation/ formation of new JointVentures (JVs), mergers &
 acquisitions and entering into Memorandum of Understanding (MOUs) for
 its long term strategic objectives.Your Company has established
 communication with renowned international technology providers for
 forging strategic alliances in alternative iron & steel technologies,
 production of sophisticated spares and assemblies etc. The Company is
 continuously adopting the path of entering into Joint Ventures with
 public / private entities to attain its strategic goals of maximizing
 gains with optimal utilization of resources.  These include:
 
 (A) Joint Ventures:
 
 i) Development of Hajigak Iron Ore Deposits in Afghanistan: The
 SAIL-led consortium AFISCO (Afghan Iron & Steel Consortium) comprising
 of SAIL, NMDC, RINL, JSW Limited, JSPL, JSW Ispat Limited and Monnet
 Ispat and Energy Limited which had submitted its bid for development of
 Hajigak Iron Ore deposits, has been selected as the ''Preferred Bidder''
 for blocks B, C and D of the mines with an estimated reserve of 1.28
 billion tonnes of high-grade magnetite iron ore (with 62- 64% Fe
 content) and invited for negotiation of Hajigak Mining Contract. The
 consortium has held contract negotiation discussions with Ministry of
 Mines of Islamic Republic of Afghanistan. The contract is likely to be
 finalized in 2013-14.
 
 ii) Revival of Sindri unit of Fertilizer Corporation of India Limited
 (FCIL) :Your Company has envisaged a plan for revival of Sindri unit of
 FCIL by setting up a 5.6 mtpa steel plant, a 1.15 mtpa fertilizer plant
 and a suitable sized power plant, through the SPV SAIL-Sindri Projects
 Ltd which has already been incorporated. Department of Fertilizers
 (DoF) / FCIL have initiated the process for obtaining approval of
 revised Draft Rehabilitation Scheme (DRS) from Cabinet Committee of
 Economic Affairs (CCEA), for making its net worth positive, enabling
 FCIL to be discharged from Board for Industrial and Financial
 Reconstruction (BIFR). DoF/FCIL will get the land at its Sindri unit,
 free from all encroachment and encumbrances, before handing it over to
 SAIL.
 
 iii) Alternate technologies in Iron & Steel Making : A Memorandum of
 Agreement (MOA) was signed with Kobe Steel Limited, Japan in July''12
 for ITmK3 technology for iron making.A JointVenture Company SAIL-Kobe
 Iron India Private Limited has been incorporated with Kobe Steel,
 Japan for installation of an ITmK3 technology based 0.5 MTPA Iron
 Nugget plant at ASP, Durgapur.  The detailed project report is under
 preparation.
 
 iv) Revival of operation of Steel Complex Limited: The management of
 Steel Complex Limited, a BIFR registered Company was taken over by SAIL
 in 2010 and converted into a JV Company namely SAIL-SCL Kerala
 Limited with SAIL and Government of Kerala (GoK) having equal
 shareholding.  Steps have been taken for the revival of the Company,
 and it has been discharged from BIFR after infusion of equity by SAIL
 and GOK. The JV Company has embarked on installation of 65000 MTPA
 rolling mill for TMT bars, to improve its performance. An EOI has been
 issued for selection of a party for execution of the project.
 
 v) SAIL, on May 25, 2012 signed a joint venture agreement with Burn
 Standard Company Limited (BSCL), a PSU under Ministry of Railways, for
 setting up aWagon Components Manufacturing Facility at the premises of
 BSCL at Jellingham, Purba Medinapore district, in West Bengal, with a
 capacity to produce 10,000 bogies and couplers per annum.A joint
 venture Company SAIL Bengal Alloy Castings Private Limited between
 SAIL and BSCL has been incorporated. Work for preparation of Detailed
 Project Report (DPR) for the project has been initiated.
 
 (B) Strategic Alliances and Memorandum of Understanding (MOU):
 
 i) Your Company has been in talks with Chhattisgarh Mineral Development
 Corporation Ltd. (CMDC), an Undertaking of Govt. of Chhattisgarh for
 having a captive source of iron ore.  In this respect, SAIL has signed
 an MOU with CMDC on November 2, 2012 for development of Eklama Iron Ore
 deposit in Chhattisgarh which as per preliminary estimates have
 resources of around 100 million tonne. The Joint Venture Agreement is
 under finalization.
 
 ii) In order to promote industrialization in the State of MP where SAIL
 is interested in setting up iron ore beneficiation and pelletisation
 plant and has submitted five applications for grant of Prospecting
 Licence (PL) for iron ore bearing area in Chhatarpur district of MP, a
 MoU between SAIL and MP Trade and Investment Facilitation Corporation
 Ltd (TRIFAC) was executed on 15th October, 2012 at Bhopal.
 
 iii) Your Company is also in discussions with Industrial Development
 Corporation of Odisha Ltd. (IDCOL) for exploring the possibility of
 acquisition / JV with its wholly owned subsidiaries IFCAL (IDCOL Ferro
 Chrome Alloys Ltd.) and IKIWL (IDCOL Kalinga Iron Works Ltd.). IFCAL is
 engaged in production of High Carbon Ferro Chrome and sources raw
 material from its chromite mines at Tailangi (Sukinda Valley).  The
 other facility at IKIWL, currently engaged in production of Pig Iron,
 is planned to be utilized for iron ore beneficiation and pelletization
 facility. An MOU in this regard was signed between SAIL and IDCOL on
 2nd May, 2012. Due diligence and Valuation of IFCAL and IKIWL are in
 progress.
 
 iv) SAIL signed an MOU on 5th March, 2013 with Power Grid Corporation
 of India Limited (PGCIL) for working together to set up Joint Venture
 Company at a mutually agreed location for fabrication & galvanizing of
 Transmission line Tower and Tower parts and tubular structures
 including research and development facility.
 
 v) Titanium Project: SAIL has accepted Government of Kerala''s offer to
 jointly explore the possibility of developing a Titanium Project in
 joint venture in the state of Kerala. An MOU has been signed on 4th
 April, 2013 amongst SAIL, Kerala State Industrial Development
 Corporation (KSIDC) and Kerala Minerals and Metals Limited (KMML) to
 this effect.
 
 vi) Your Company is planning to set up engineering shops in joint
 venture to improve its capabilities in production of sophisticated
 spares and assemblies. This will meet its future requirement of
 engineering spares and assemblies which is bound to increase
 post-expansion of SAIL steel plants, both qualitatively and
 quantitatively. An MOU with Danieli & C of Italy has been signed on
 28th May, 2012 to assess and explore the technical and economic
 viability of installing and operating an Engineering Workshop Facility
 in JointVenture between SAIL and Danieli & C at SAIL Plant locations.
 
 BUSINESS EXCELLENCE - INITIATIVES Enterprise Scorecard (ESC)
 
 Enterprise Scorecard (ESC) of SAIL was prepared for the Financial Year
 2012-13. Enterprise Scorecard not only brought integration with
 Memorandum of Understanding (MoU) with Government of India and Annual
 Business Plan (ABP) of the Company but also facilitated deployment of
 these across various leadership levels. It facilitated deployment of
 organisational strategy through Strategic Objectives and Key
 Initiatives. ESC 2012-13 was aligned upwards with ABP & MOU; deployed
 downwards through Unit Scorecards, Functional Scorecards and
 Departmental Scorecards and addressed the long term and short term
 issues. Process for formulation of Enterprise Scorecard for 2013-14 has
 also been commenced.
 
 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 for CII-EXIM Bank Award for Business Excellence 2012.
 Three of these plants i.e. BSP, DSP and RSP 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
 
 Total Quality Management (TQM)
 
 Most of our Plants and Units are certified to ISO 9000, ISO 14000,
 OHSAS 18000 and SA 8000 Management Standards. During the financial year
 2012-13, RSP was certified to Social Accountability Standard (SA 8000)
 and DSP was certified to Information Security Standard (ISO 27000).
 
 IT RELATED INITIATIVES
 
 Your Company has been moving ahead in innovative usage of Information
 Technology (IT). As a step towards this, Enterprise Resource Planning
 (ERP) has been implemented stage wise at BSP, DSP, BSL, CMO and RSP
 during 2009-2012.
 
 Manufacturing Execution System (MES) has been implemented at BSP''s 3
 shops, namely SMS-2, Plate Mill and Rail Mill with the help of M/s
 POSDATA.  MES implementation has enabled detailed planning, scheduling
 and status monitoring of orders at these shops.
 
 Your Company has ensured that almost all payments are done through
 e-payment mode and steps are being taken to establish a formal system
 for e-receipts.
 
 Capacities of digital network among SAIL''s Plants/Units have been
 doubled in view of increased usage.
 
 Your Company is currently taking steps to implement the following:-
 
 - Centralized Mail Messaging for SAIL
 
 - ERP at ISP, Burnpur
 
 - Business Intelligence / Dashboards
 
 - Centralized HR & Payroll on ERP Platform
 
 ENVIRONMENT MANAGEMENT
 
 SAIL along with production and profitability gives emphasis on
 environment protection and considers clean environment practices a must
 for its every activity. SAIL Corporate Environmental Policy emphasizes
 ''conducting our operations in an environmentally responsible manner to
 comply with applicable regulations and striving to go beyond''.  A
 number of proactive environmental initiatives were taken by SAIL during
 the year, yielding noteworthy improvements. The highlights are:
 
 - Notable improvements in respect of the following Environmental
 Indices:
 
 - PM emission load has reduced to 0.88 kg/tcs from 1.6 kg/tcs in
 2008-09 which is a reduction of 45% in the last 5 years.
 
 - Specific Water Consumption has reduced to 3.73 m3/tcs from 3.95
 m3/tcs in 2008-09 which is a reduction of more than 5% in the last 5
 years.
 
 - Specific effluent discharge from SAIL Plants has reduced to 2.22
 m3/tfs from 2.56 m3/tfs in 2008-09 which is a reduction of more than
 13% over the last 5 years.
 
 - Utilisation of Blast Furnace (BF) Slag enhanced to 96% in the
 financial year 2012-13, an enhancement of 16% utilisation of the BF
 slag achieved over the last 5 years.
 
 - As a part of Greening of Warehouses Initiative, Hyderabad Warehouse
 and BTSO, Vizag were taken up for implementation of ISO 14001
 Environment Management System during the year and have been awarded the
 EMS Certification.
 
 - The MoEF, SAIL and UNIDO have joined hands to implement a
 Polychlorinated Biphenyls (PCB) management and disposal project at
 Bhilai. PCBs are highly toxic chemicals. Under this project, the PCB in
 electric transformers will be treated using appropriate technology to
 be brought in by UNIDO.
 
 CORPORATE COMMUNICATION
 
 Corporate Communication at SAIL helped the organization to achieve its
 planned objective of building ''Brand SAIL'' by creating and maintaining
 a vibrant, dynamic and responsive communication framework. Towards this
 end, SAIL communication team undertook relation building with its
 stakeholders by fostering dialogue between the Company and its
 audience, both through internal and external communication.
 
 Besides informing the stakeholders about the Company''s strategic plan,
 your Company also took into account their feedback and suggestions,
 thereby bridging a vital connect between the organization and its
 stakeholders.Your Company maintained harmonic and transparent media
 relation through organizing regular press conferences, interviews and
 informal media meets.
 
 While the Company reached out to its customers and vendors through
 focused advertising, exhibitions, events and mutually beneficial meets,
 its sponsorship and aid was governed by the motto of largest common
 good.  SAIL website stood unrivalled in the iron and steel industry,
 grabbing as many as 6 lakh hits per month! The Company also sponsored
 wrestlers like Sushil Kumar and Yogeshwar Dutt from their formative
 years, who won the Silver and Bronze medals respectively at London
 Olympics 2012.  In March, 2013, SAIL along with SBI organized the 6th
 edition of SAIL-SBI Open GolfTournament presented by Incredible
 India,Ministry ofTourism, also the second longest running national Golf
 Championship after Indian Open.
 
 Your Company''s greatest asset, however, remained those thousands of
 steel men and women who we call the SAIL family. Communication teams at
 SAIL, along with respective HR divisions, arranged mass contact
 exercise to facilitate free-wheeling discussion between employees and
 management.  The Company successfully launched an electronic version of
 its monthly journal, e-SAILNews, which reaches out to maximum employees
 at the least cost. Through tie-ups with local TV channels, employees''
 families in township were kept abreast of daily happenings in Plant and
 outside.  In order to benchmark the communication practices with other
 PSUs, regular interactions were organized with their PR Chiefs.
 Posters, fliers, brochures, wall painting, wall-sheets, intranet,
 journals etc were other conventional ways in which the Company went
 SAILing with fellow employees and their universe. Because at SAIL, we
 are many, but we are one. 
 
 VIGILANCE ACTIVITIES
 
 SAILVigilance lays emphasis on preventive and proactive vigilance
 activities to facilitate an environment enabling people to work with
 integrity, efficiency and in a transparent manner, upholding highest
 ethical standards for the organization.
 
 Following activities were undertaken during the Financial Year 2012-13:
 
 - To increase vigilance awareness amongst employees, vigilance
 awareness sessions and workshops were regularly held at various Plants
 and Units. 47 workshops involving 2945 participants were organized for
 enhancing Vigilance Awareness on Purchase/Contract procedures, RTI Act,
 Conduct & Discipline Rules, System and Procedures followed in SAIL,
 etc.
 
 - Periodic surprise checks including joint checks were conducted
 regularly in vulnerable areas of the Company. A total of 3338 periodic
 checks including file scrutiny and Joint Checks were conducted at
 different Plants / Units. Savings of Rs.2556.95 lakhs accrued from
 preventive vigilance activities mainly on account of Surprise Checks.
 
 - Vigilance provides vital inputs to the operating authorities for
 improving the prevailing systems for bringing about more
 transparency.Accordingly,eight major System Improvement Projects (SIPs)
 were undertaken at different Plants/Units of SAIL.
 
 - 13 cases were taken up for Intensive Examination at different
 Plants/ Units. During Intensive Examination, high value procurement /
 contracts are scrutinized comprehensively and necessary recommendations
 are forwarded to the concerned departments for implementing suggestions
 for improvement.
 
 - Various initiatives have been taken by SAIL Vigilance to increase
 leveraging of technology in vigilance function. On-line submission of
 Property Returns has been extended for all executives of SAIL in all
 the Plants / Units during the year 2012. Further, on-line facility for
 submission of Results Framework Documents (RFDs) for System Improvement
 Projects (SIPs), Intensive Examination (IE) & Thrust Areas of SAIL
 Vigilance and Preventive/Administrative recommendations of CVC/CVO has
 been created. This helps in real time monitoring of these activities.
 
 - On-line facility for submission of complaints has been created on
 SAIL website. Facility of on-line feedback to the complainants along
 with status of their complaints has also been created.
 
 - To increase the impact of preventive vigilance activities in
 improvement of overall functioning of organization, it has been decided
 to improve the effectiveness and quality of surprise checks and file
 scrutiny. Accordingly, Quality Management System Index followed
 inVigilance departments of SAIL has been revised to include these
 areas.
 
 - ''Inspiration- Prerna'', an in-house publication of SAILVigilance is
 being published regularly. The above publication contains case studies,
 articles from eminent personalities, quiz on policy matters, etc. to
 enhance awareness of the readers.
 
 CONSULTANCY SERVICES
 
 Based on its large and varied expertise and experience acquired over
 the last five decades, SAIL, through SAILCON, provides design,
 engineering, training, technical & management consultancy services in
 Iron & Steel and related areas and offers a wide range of services to
 clients Globally.  Technical and Management Training services are its
 forte and these services have been availed of by several organisations
 in private and public sector within India and abroad. To scale up the
 activities and to further reinforce the brand image of SAIL as a
 consultant, SAILCON is continuously exploring the market, both within
 and outside the Country for possible business opportunities as well as
 joint ventures with Global consultants for commercialization of SAIL''s
 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 2012-13, SAIL Consultancy Division, SAILCON
 laid enhanced focus on taking up training assignments for some leading
 organizations in the area of Steel making, by providing consultancy
 services to UNDP/GEF, Project Management Cell, Ministry of Steel for
 energy efficiency and productivity improvement in Steel re-rolling
 mills.
 
 MANAGEMENT DISCUSSION & ANALYSIS REPORT
 
 The Management Discussion & 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, 2013 along with Management''s replies
 thereon is placed at Annexure-I. The Comptroller & Auditor General of
 India (C&AG) vide its letter dated 9th July, 2013 has given ''nil''
 comments on the accounts of the Company for the Financial Year ended
 31st March, 2013 under Section 619(4) of the Companies Act, 1956. A
 copy of the above letter of C&AG is placed at Annexure-II.
 
 COST AUDITORS
 
 Pursuant to the direction of the Central Government for audit of cost
 accounts, your Company has appointed M/s. Jugal K. Puri & Associates,
 Gurgaon for Rourkela Steel Plant (RSP) & Bokaro Steel Plant (BSL), M/s.
 K.C. Kohli & Co, Delhi for Bhilai Steel Plant (BSP), Durgapur Steel
 Plant (DSP) & IISCO Steel Plant (ISP) and M/s. Mani & Co, Kolkata for
 Alloy Steels Plant (ASP), Salem Steel Plant (SSP) & Visvesvaraya Iron &
 Steel Plant (VISP) as Cost Auditor(s) for the Financial Year 2012-13.
 
 REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ETC.
 
 Information in accordance with the provisions of Section 2l7(l)(e) of
 the Companies Act, 1956 read with the Companies (Disclosure of
 Particulars in the Report of Board of Directors) Rules, l988 regarding
 Conservation of Energy, Technology Absorption and Foreign Exchange
 Earnings and Outgo is given at Annexure-III to this Report.
 
 PARTICULARS OF EMPLOYEES
 
 There was no employee of the Company who received remuneration in
 excess of the limits prescribed under Section 2l7(2A) of the Companies
 Act, l956 read with the Companies (Particulars of Employees) Rules,
 1975.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to Section 2l7(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 l00 listed entities, based on market capitalization of
 BSE and NSE, to include Business Responsibility Report describing the
 initiatives taken by the companies from Environmental, Social and
 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 & Foundary Company Limited, a wholly owned subsidiary
 of the erstwhile Indian Iron & Steel Company Limited (IISCO), was
 ordered to be wound up by BIFR. The Official Liquidator is continuing
 its liquidation process. The assets of the Company have been realized
 and the settlement of claims is in process.
 
 The Company has three other wholly owned subsidiary companies namely,
 SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant
 Limited and SAIL Sindri Projects Limited. SRCL has taken over the Salem
 Refractory Unit of Burn Standard Company Limited on 16th December, 2011
 and is operating the same. SAIL Jagdishpur Power Plant Limited,
 incorporated for setting up of Gas based power plant at Jagdishpur and
 SAIL Sindri Projects Limited, incorporated for revival of Sindri Unit
 of Fertilizer Corporation of India Limited are yet to commence
 operations pending relevant approvals.
 
 A Statement pursuant to Section 212 of the Companies Act, 1956 is
 attached to the Accounts. In terms of general exemption granted by
 Ministry of Corporate Affairs vide Circular No.5/l2/2007-CL-III dated
 8.2.2011, under Section 212(8) of the Companies Act, 1956, the Audited
 Balance Sheet, Profit and Loss Account, Report of the Board of
 Directors and Auditors of our subsidiaries need not be attached with
 the Balance Sheet of the Company as the Company has satisfied the
 conditions stipulated in the Circular. However, the requisite
 information as prescribed in the above Circular of Ministry of
 Corporate Affairs in respect of the subsidiary companies has been
 disclosed in the Statement.
 
 The Annual Accounts of the subsidiary companies and related detailed
 information shall be made available to the shareholders of the holding
 and subsidiary companies seeking such information at any point of time.
 Further, the Annual Accounts of the subsidiary companies are available
 for inspection by any shareholder in the Registered Office of the
 Company and of the subsidiary companies concerned during the office
 hours between ll AM to l PM. A hard copy of the details of accounts of
 subsidiaries shall be furnished to the shareholders on receipt of
 written request.
 
 DIRECTORS
 
 Prof. Deepak Nayyar and Shri A.K. Goswami ceased to be Directors w.e.f.
 10.02.2013 (A.N.)
 
 Shri A.K. Pandey, Director (Raw Material & Logistics) ceased to be
 Director w.e.f. 28.02.2013.
 
 Shri Kalyan Maity has been appointed as Director (Raw Material &
 Logistics) w.e.f. 01.03.2013.
 
 Shri E.K. Bharat Bhushan, Special Secretary & Financial Advisor,
 Ministry of Steel has resigned from the Directorship of the Company
 w.e.f.  29.04.2013.
 
 Shri S. Mukherjee, Director (Commercial) ceased to be Director w.e.f.
 01.05.2013.
 
 Shri Vinod Kumar Thakral, Additional Secretary & Financial Advisor,
 Ministry of Steel has been appointed as Director w.e.f. 04.06.2013.
 
 Dr. Atmanand and Shri J.M. Mauskar have been appointed as Directors
 w.e.f. 18.07.2013.
 
 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
 
                                                              (C.S.Verma)
 
                                                                Chairman
 
 New Delhi
 
 Dated: 16th August, 2013
Source : Dion Global Solutions Limited
Quick Links for steelauthorityindia
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.