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Steel Authority of India Ltd.

BSE: 500113 | NSE: SAIL |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE114A01011 | SECTOR: Steel - Large

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Nov 29, 16:01
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30-Day
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1,183,234
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Nov 29, 16:07
82.75 0.65 (0.79%)
Volume
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5-Day
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10-Day
16,915,820
30-Day
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19,526,525
  • Prev. Close

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  • Open Price

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  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    82.75 (8064)

Annual Report

For Year :
2021 2019 2018 2017 2016 2015 2014 2013 2012

Director’s Report

The Board of Directors has the pleasure of presenting the 49th Annual Report of Steel Authority of India Limited (SAIL, the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2021.

A. FINANCIAL REVIEW

Financial Results

('' crore)

Sl.

No.

Standalone Year ended

Particulars

31st March 2021 Audited

31st March 2020 Audited

1

Income

(a) Revenue from operations

69110.02

61660.55

(b) Other income

1011.69

985.22

Total Income

70121.71

62645.77

2

Expenses

a) Cost of materials consumed

23136.17

29212.87

b) Changes in inventories of finished goods, work-in-progress and by-products

4268.58

(5555.82)

c) Employee benefits expense

10445.94

8781.32

d) Finance costs

2817.14

3486.76

e) Depreciation and Amortisation expenses

4102.00

3755.05

f) Other expenses

18531.28

19023.17

Total Expenses

63301.11

58703.35

3

Profit before Exceptional items and Tax

6820.60

3942.42

Add / (Less): Exceptional items

58.43

(771.76)

4

Profit before Tax

6879.03

3170.66

Less: Tax expense

Current tax

12.05

224.14

Deferred tax (refer note 8)

3016.96

924.98

Total Tax expense

3029.01

1149.12

5

Net Profit for the period

3850.02

2021.54

power rates, interest charges etc. and higher dividend income, foreign exchange gain and reversal of Covid-19 discount on sub grade iron ore fines.

Your Company continued its thrust on judicious fund management with timely repayment of loans including interest, advance planning and action for future fund raising, etc. to meet our growth objectives. There has been significant reduction in the borrowings of the company during the FY 2020-21due to improved cash flows because of increasing steel prices and demand in India. The Company had borrowings of ''37,677 crore as on 31st March 2021 vis-a-vis ''54,127 crore as on 31st March 2020 in line with INDAS. The Company has hedged the foreign currency risk on Buyers'' Credit and External Commercial Borrowings. The debt equity ratio of the Company as on 31st March, 2021 decreased to 0.87:1 from 1.36:1 as on 31st March, 2020 primarily due to decrease in borrowings during the year. The net worth of the Company increased to ''43,495 crore as on 31st March 2021 from ''39,777 crore as on 31st March 2020.

An Interim Dividend of 10% i.e. Re.1/- per equity share was paid during the month of January, 2021. The Board of Directors of your Company has further recommended a Final Dividend of 18%, subject to approval of Members in the ensuing Annual General Meeting of the Company, i.e. total dividend for FY 2020-21 being 28% on equity share capital of the Company. Further, no amount has been transferred to general reserve during the year under review.

M/s. CARE Ratings, M/s. India Ratings and M/s Brickwork Ratings, RBI approved Credit Rating Agencies, assigned ‘CARE AA Outlook: Stable'', ‘India Ratings AA- Outlook: Negative'' and ‘BWR AA Outlook: Negative'' ratings respectively for SAILs long-term borrowing programme.

B. OPERATIONS REVIEW

Safety

Your Company is committed to the safety of its employees and the people associated with it including, those living in the neighbourhood of its Plants, Mines and Units. SAIL Safety Organization (SSO) monitors and guides the Safety Promotional and Fire activities undertaken at different Steel Plants/ Units/ Mines/ Stockyards. SSO formulates and prepares appropriate Safety Policies, Procedures, Systems, Action Plans, Guidelines, etc. and follows up for their implementation and thereby helps in providing Accident-free Work Environment. The Safety Guidelines framed by Ministry of Steel, developed by SSO in association with major private steel producers of India, as well as IPSS (Inter Plant Standardisation in Steel Industry) standards have been

Your Company achieved Sales Turnover of ''68,452 crore during the Financial Year (FY) 2020-21, which is higher by 12% as compared to corresponding period of last year (CPLY) mainly due to increase in Net Sales Realisation (NSR) of Saleable Steel of 5 Integrated Steel Plants by 10% and higher Sales Volume by 5%. During the Financial Year 2020-21 the Profit Before Tax and Profit After Tax are ''6,879 crore and ''3,850 crore respectively which shows a substantial growth as compared to CPLY Profit Before Tax of ''3,171 crore and Profit After Tax of ''2,022 crore There is an accounting impact of ''1,289 crore on Profit After Tax due to switch over to new tax regime under section 115BAA.

During the FY 2020-21, despite the lockdown in the Country during Q-1 because of Covid-19 situation, there has been significant improvement in the performance of the company mainly on account of increase in NSR of Saleable Steel (10%) and significant reduction in the imported coking coal prices (21%). The profit has further improved due to increase in saleable steel sales (5%) on account of higher demand of steel, higher sale of pig iron, secondary products and iron ore fines, decrease in expenditure of stores and spares, purchased

implemented and are extensively referred to in the course of working. Prioritising safety foremost, the Company has engaged Safety Management Consultant for Safety Culture Transformation, and a pilot project is in progress in Bhilai Steel Plant, and is in the process of being followed up in other Steel Plants/Units. Consistent efforts are also being made by SSO for competence building in the area of Safety Management through various HRD interventions, LEO workshops, webinars etc. on areas of concern, covering Heads of Shops, Line Managers, Safety Personnel and Trade Union leaders. Benefits of technology are leveraged by extensive utilization of IT in the area of Safety Management, by way of Web Portals for sharing important information, safety suggestions, etc. Good Practices in respect of Safety prevailing in the Plants & Units and other industries are captured and circulated among all for horizontal deployment and bringing improvement. Magazines in digital form are brought out periodically for increased safety communication and awareness among the employees. A multi-disciplinary Safety Engineering Departments exists in each of the Steel Plants and Mines to look after their safety needs. The emphasis is on Systematic Approach to Safety Management. SSO is also managing the secretariat of the Joint Committee on Safety, Health & Environment in the Steel Industry (JCSSI), a bipartite forum which addresses Steel Plant Safety, Health & Environment issues with active involvement of management and Central & Plant level trade unions and provides guidelines to the member organizations. Acknowledging the importance of Safety, the activities and measures undertaken are reviewed at the highest level by the Board Sub Committee on Health, Safety & Environment.

Operations

During the FY 2020-21, in-spite of the challenges of the market and the lock down and other restrictions imposed to contain the Covid-19 pandemic, your Company achieved Saleable Steel production of 14.602 million tonne (MT). Hot Metal and Crude Steel production during the FY 2020-21 was 16.582 MT and 15.215 MT respectively. There is negative growth in the Production over last year owing to the restricted production mainly in Q-1 of FY 2020-21 due to Covid-19 pandemic.

The outbreak of the Covid-19 pandemic in March, 2020 resulted in a series of restrictions by the Government of India/State Governments for preventing the spread of the virus. Due to the fast spread of Covid-19, the restrictions continued to be in place for more than four months before unlock down measures were initiated. The pandemic and countrywide restrictions severely affected market sentiments, coupled with interstate travel and transport restrictions, resulting in severe slump in the demand for steel products.

After the initial months of the FY 2020-21, your Company adopted focussed approach on improving its volumes, operational efficiencies, operating the facilities at optimum levels, reducing its inventory levels, etc. In spite of the pandemic situation resulting in lower production over previous year, your Company has achieved yearly best performance w.r.t. Coke Rate, CDI Rate and BF Productivity owing to better capacity utilization of bigger blast furnaces, optimization of BF operations and enhanced usage of CDI. The multi-pronged strategy has helped the Company to top the performances during the following quarters of the Financial Year.

The Research and Development Centre for Iron & Steel (RDCIS) of the Company provided innovative technological inputs to different Plants of SAIL, with special emphasis on productivity and quality improvement, product development and commercialization, energy conservation and automation. The continuous activities in respect of product development have led to development of 17 new Steel Products during FY 2020-21. Some of these products have been developed using the newly commissioned production facilities viz., Bar & Rod Mill and Universal Rail Mill at Bhilai Steel Plant; Medium Structural Mill at Durgapur Steel Plant; New Plate Mill at Rourkela Steel Plant; Cold Rolling Mill-III at Bokaro Steel Plant; Wire Rod Mill, Bar Mill and Universal Section Mill at IISCO Steel Plant.

At Bhilai Steel Plant (BSP), Blast Furnace-8 produced 2.45 MT of Hot Metal during the FY 2020-21, surpassing 2.36 MT achieved in the previous financial year. The SMS-III achieved its best ever production of 2.2 MT, surpassing the previous best of 1.14 MT achieved in the financial year 2019-20.The Plant has achieved best ever yearly Prime UTS-90 Rails production from its newly commissioned Universal Rail Mill at 6.29 lakh tonne in the FY 2020-21 against 5.38 lakh tonne in 2019-20. The improvement in production from new Universal Rail Mill (URM), has enabled a record loading of long rails at 7.36 lakh Tonne in FY 2020-21 against 6.33 lakh Tonne in 2019-20, registering a growth of 16.3%. A new grade of Rails (R 260) was developed and supplied to Indian Railways. At BRM, rolling of “SAIL SeQR” grade TMT bars (>10-20 mm) was successfully developed in the FY 2020-21. The Mill has produced 3.84 Lakh Tonnes of Finished products this year, overcoming the previous best of 1.83 lakh tonnes achieved in the year 2019-20. Your Company has supplied 10.87 lakh tonnes of Rails to Indian Railways in the FY 2020-21, out of which 68% component was 260 metre long rail welded panels, which has been best ever quantity supplied with a growth of 16.5% over CPLY

Durgapur Steel Plant (DSP) recorded highest ever production from its new Medium Structural Mill (MSM) at 2.94 lakh tonnes in FY 2020-21 against 2.17 lakh tonnes during 2019-20. Among other remarkable achievements, the Plant recorded the best ever despatch of 13,688 numbers of WAG9 Wheels (an import substitution product) for electric locomotives. WDG4 Loco Wheels (500 nos.) were developed first time within a span of two months, the fastest development of any wheel type in a period of two months. Special low C (C-0.04%), low Mn and Al killed steel cast in Bloom and Round Caster for cold rolled applications and hollow structures were also developed .

At Rourkela Steel Plant (RSP), New National Benchmark was registered with respect to highest number of 48 blows in single Converter “C” on 2nd July, 2020 and highest campaign life at 2500 heats in Torpedo Ladle during March, 2021. Successful rolling, finishing and supply of 4304 tonnes of API 5L X 70m PSL2 grade steel plate for pipeline transportation system was carried out. DMR-249B

At IISCO Steel Plant (ISP), with regard to development of new grades and sections to widen the product basket, 17 new grades, 4 new sections and 2 new products have been developed and dispatched in the FY 2020-21. Major Grades developed were Electrode Quality Grade, Cable Armour Quality, EN8D & EN8DCr Medium Carbon Wire Rods, High Carbon Basket (HC38B to HC80B) including PC115. New sections which were developed and dispatched included ISMC 300 Channel at WRM; 14 mm WRC, 6.5 mm WRC for Africa, 6 mm TMT Coil, 40 mm TMT bars at Bar Mill(the highest section in Bar Mill). Export quality semis in various grades (4sp, 5sp, SPHC, SS400) in 150x150 mm & 200x280 mm were also developed during the FY 2020-21.

Your Company has always strived to maximize and optimise its captive power potential in view of reliability of power supply as well as availability of power at optimum cost. During the FY 2020-21, about 64% of the total requirement of 1230 MW was met from the captive Power Plants. With an objective to optimize the cost, SAIL has been actively procuring power through open access route since such opportunity was introduced in Electricity Act, 2003. Continuing the legacy, this year too, SAIL Plants procured about 460 Million Units of power through open access route which also included purchase from power exchange and purchase of 32 Million units of renewable power from sugar mills in the State of Madhya Pradesh.

With the objective to enhance the share of captive power and ensure supply of reliable power at optimum cost to expansion projects, your Company is in the process of installing new captive power facility of 250 MW at Rourkela Steel Plant and another (2x20) MW capacity at Durgapur Steel Plant by NTPC-SAIL Power Company Limited (NSPCL), a Joint Venture Company of SAIL & NTPC Ltd.

Your Company is always focussed on its approach towards achieving better performance parameters with respect to usage of power purchased from utilities and maximize the rebates and incentives available in the power tariff for achieving higher load factor, power factor, etc. During FY 2020-21, ''185 crore was received as incentives and rebate in the power bills of utilities. SAIL has also been able to utilize the Regulatory interventions to its benefits in past few years. During the FY 2020-21, past tariff matters were resolved through such interventions, which helped in getting a refund of about ''135 crore.

Besides above, optimization of electricity consumption in various steel making processes is major thrust areas of SAIL Plants for lowering the power consumption per tonne of Saleable Steel production. As a responsible corporate house, your Company has given adequate emphasis on development

and usage of renewable power sources with focussed approach on Roof Top Solar(RTS) Power Plants. A Capacity of 3010 KWp of Roof Top Solar power plants has already been installed across SAIL Plants and Units. Further, installation of 6145 KW capacity roof top solar plants is in progress at various Plants/ Units of the Company across the Country.

Raw Materials

During the FY 2020-21, total requirement of iron ore was met from the captive sources. Your Company''s captive mines produced about 30.06 million tonnes (MT) of iron ore. However, in case of clean coking coal, a requirement of about 1.59 MT was met from indigenous sources (Coal India Limited & captive sources) and for the balance requirement of coking coal (13.70 MT), the Company had to depend on imports due to constraint of availability of required quantity and quality, within the Country. In the FY 2020-21, production from the captive collieries of the Company was about 0.55 MT, out of which 0.09 MT was raw coking coal and balance 0.46 MT was non-coking coal. In case of fluxes, around 1 MT of limestone and 0.77 MT of dolomite were produced, giving a production of 1.77 MT fluxes from captive sources. For thermal coal, your Company depends entirely on purchases from Coal India Limited except for small quantity produced from the captive mines.

On account of expiry of mining leases of Private Merchant Miners by 31st March, 2020 in the Country, Ministry of Mines, Government of India vide Order dated 16th September, 2019 has entrusted SAIL with the responsibility to make available in the open market, 25 percent of its total mineral production of the previous year. The permission is valid for a period of two years w.e.f. 16th September, 2019.

Further, in another separate Order dated 16th September, 2019, Ministry of Mines, has allowed SAIL to dispose off the old stock of 70 MT of low grade iron fines and ores (including slime) lying dumped across different captive mines of the Company. In this regard, efforts were being made in obtaining approval of respective State Governments and other concerned statutory authorities.

However, in view of delay in grant of permissions by the respective State Governments and Statutory Authorities, Ministry of Mines vide Orders dated 3rd December, 2020 modified the earlier Orders dated 16th September, 2019 and allowed sale of 25% of the cumulative production in the previous year in a State and also sale of sub-grade minerals lying at different captive mines under intimation to the concerned State Government and Indian Bureau of Mines. Accordingly, it was planned to make available about 7 MT of iron ore in FY 2020-21, subject to the grant of various approvals by the Government of Chhattisgarh, Jharkhand and Odisha i.e. forest land handover of Topailore Lease

of Gua, CTE & CTO from JSPCB for Duargaiburu Lease for selling of dump fines, etc. Subsequently, approvals from the State Governments of Chhattisgarh and Odisha were received. However, in view of the aforementioned approvals from Jharkhand State Government being still awaited, only about 4.55 MT of iron ore could be made available in open market during FY 2020-21.

Grant of Forest Clearance (FC)

In order to expedite capacity expansion projects of mines, Stage-II FC of 361.295 Ha of Duarguiburu Lease of Gua Ore Mines was granted on 7th December, 2020. However, Stage-II FC for the capacity expansion of Chiria Mines and opening of South-Central blocks in Kiriburu-Meghahatuburu Mines in Saranda forest in Jharkhand is awaited from MoEFCC. In addition to this, forest land w.r.t. Topailore and Duarguiburu Mining Leases of Gua Ore Mines is also to be released by the State Government. In view of its criticality to the capacity expansion projects, the matter is being actively pursued at the level of MoEFCC, Ministry of Steel and Government of Jharkhand.

Grant of Environment Clearance (EC)

In order to expedite the process of selling of dump iron ore from captive mines, proposals for amendment of existing environment clearances were submitted to the MoEFCC and on recommendation of Expert Appraisal Committee, following ECs have been granted:

• Topailore Lease (Gua) on 19th May, 2020.

• Amalgamated Lease (Kiriburu-Meghahatuburu) on 30th July, 2020.

• 5.1 Sq. Miles Lease (Bolani) on 30th July, 2020.

• ML-130 Lease (Barsua-Taldih-Kalta) on 3rd July, 2020 (Corrigendum dated 13th July, 2020) and Amendment in redistribution again on 17th March, 2021.

• Duarguiburu Lease (Gua) on 6th November, 2020.

In addition to this, MoEFCC also granted EC for development of 1 MTPA iron ore mine at Kalwar-Nagur Lease of Bhilai Steel Plant on 7th December, 2020.

Extension of lease period and reservation of new areas

• Amalgamation of ML-130 & ML-162 Mining Leases of Barusa-Taldih-Kalta Mines upto 5th January, 2030 granted by Government of Odisha on 2nd December, 2020, along with extension of Lease period upto 5th January, 2030 on 30th March, 2021.

• Lease period of Tulsidamar Dolomite Lease extended upto 31st March, 2022 by Government of Jharkhand vide Order dated 13th February, 2021.

• Government of Odisha vide proceeding dated 24th February, 2021 has granted Prospecting License in respect of 268.221 ha (as per DGPS) / 277.683 ha (as per ROR) in village Thakurani Pahad Block-A, Keonjhar for a period of 3 years.

On seeking clarification, Ministry of Coal vide letter dated 21st January, 2021 has clarified that there is no prohibition in the MMDR Act for renewal of mining leases of coal mines, even if the total period of mining lease and all renewals exceeds 50 years. The clarification shall facilitate second renewal of Tasra Coal Mining Lease beyond 30th April, 2022, for which renewal application has already been made to the Jharkhand State Government on 10th July, 2020.

However, delay in extension of lease periods of remaining leases of Chiria and Gua leases, and reservation of area for sand for stowing, are matter of concern.

Commencement of interim Mining at Rowghat Anjrel Block

Mining Lease for Rowghat Deposit-F was granted by the Chhattisgarh State Government on 21st October, 2009. However, the development work of the Mine and construction of rail line linked with mining project got affected mainly due to law and order issues prevailing in the area.

Though for development of 14 MTPA Mine at Rowghat, Mine Developer cum Operator (MDO) was appointed in September, 2017, mine development may commence only after cutting of trees and handing over the forest land to SAIL by the State Government. In this regard, order for cutting of about 39,000 trees in Rowghat Deposit-F was issued by the State Government and the same has started.

As MDO will take 5 years to arrive at required scale of mining operations, SAIL made a provision of interim mining for the supply of 3 lakh tonnes of iron ore per annum for a period of three years from Anjrel Block of Rowghat. Consequent upon tree cutting permission by the State Government on 13th July, 2020, tree cutting activities could commence on 18th July, 2020. Thereafter, on 23rd November, 2020 Collector, Narainpurwas requested to grant enter upon permission in the handed over forest area of Anjrel Block, and thereafter, after receiving necessary approvals to enter upon in the handed over forest area of Anjrel Block of Rowghat from Government of Chhattisgarh on 27th January, 2021, interim mining at Anjrel Block has started on 5th February, 2021.

Status of Return of Sitanala and Parbatpur Coal Blocks

Sitanala Coal Block

Consequent to the SAIL''s letter dated 12th March, 2018 to Ministry of Coal (MoC) regarding returning of Sitanala Coal Block, MoC, vide letter dated 4th October,

2018 issued a Termination Notice against Allotment Agreement and Allotment Order, in respect of Sitanala Coal Block and on 25th October, 2018 advised the bank to invoke the Bank Guarantee(BG) of ''10.43 crore. SAIL had preferred Writ Petitions before the Delhi High Court to challenge the Order dated 4th October, 2018. Though, Hon''ble Delhi High Court declined to pass any interim order, but clarified that if the petitioner prevails in this petition, the consequential direction for refund of the amount collected by invoking the BG will be passed. The matter is sub-judice.

Parbatpur Coal Block

Consequent to the SAIL''s letter dated 8th March, 2018 to Ministry of Coal (MoC) about returning of Parbatpur Coal Block, MoC, vide letter dated 5th December,

2019 issued a Termination Notice against Allotment Agreement and Allotment Order in respect of Parbatpur Coal Block and advised the bank to invoke the BG of '' 62.57 crore.

SAIL has preferred Writ Petitions before the Delhi High Court challenging the Order dated 5th December, 2019. In response, vide Order dated 19th December, 2019, the Hon''ble Delhi Court directed for maintaining status quo in respect of the BG, till the next date of hearing.

In view of the outbreak of Covid-19 pandemic and consequential lockdown, the matter on both the above mentioned cases could not be placed on scheduled dates and the next date of hearing is yet to be informed.

In the meanwhile, MoC in February, 2020, has appointed Chairman Coal India Limited(CIL) as the designated custodian to manage and operate Parbatpur Central Coal Mine. Subsequently, on request of SAIL, DC, Bokaro appointed Magistrate for assets verification of the Parbatpur Coal Blockand after completion of the same, Parbatpur Coal Block was handed over to BCCL on 10th July, 2020.

Sales & Marketing

During the Financial Year (FY) 2020-21, your Company achieved its best ever Saleable Steel sales volume of around 14.937 million tonnes (MT), registering a growth of about 4.4% over previous year. Continuing its efforts to enhance presence in the international markets, the Company took a big leap, with saleable Steel exports being highest ever at about 1.924 MT, achieving thereby a growth of over 64% over the previous year. Further, in our pursuit for increased exports, your Company has entered into several new markets for various product categories.

During the initial Covid-19 pandemic phase and resulting lockdowns, avenues for Steel business dried up in the domestic market, which demanded strategic balancing on domestic and exports fronts. A buoyant international market at the time when domestic demand was subdued, helped in managing inventories and mitigating the impact on production volumes. The resurgence of domestic markets by third quarter, fuelled by pent-up demand, helped in liquidating excess inventories as well as catching up on lost ground during the remaining FY 2020-21.

As a part of ongoing research and development initiative, a new Rail grade R-260 was developed along with its Flash Butt welding technology and supplied to Indian Railways. Your Company has also developed WDG4 locomotive wheels as an import substitution item, thereby, furthering the cause of Atmanirbhar initiative of Government of India. Further, SAIL has successfully worked towards expanding the product-basket by developing special quality steels such as HC62, HC72, HC80, HCT1130Cr (PC115),CAQ, CHQ, Bright Bar, EN8D, EN8D Cr from Wire Rod Mill of ISP

Your Company''s presence in certain critical areas of Defence has been strategically significant with supply of DMR steel materials, which has been highest during last 11 years. In addition to this, Space exploration projects have also been serviced through supply of various special grades of alloy steels during the FY 2020-21.

The brand “SAIL SeQR” reinforcement bars is growing from strength to strength by clocking 2.5 lakh tonnes during FY 2020-21, which helps in strengthening uniform brand experience in retail channel. Your Company is working towards expanding the 2-Tier and 1-Tier distributorship network across India, which will further strengthen our position in B2C space. As a part of supplementing this initiative, online e-portal has been launched during FY 2020-21 enabling the smallest of demand being serviced through the 2-Tier distributorship network. Your Company has been working towards focused brand building initiatives on “NEX” brand of structural by holding webinars and workshops with key influencers.

Subsequent to launch of Mission Poorvodaya by Government of India, an Incentivization Scheme was introduced by SAIL for development of MSMEs based in the districts in which its Integrated Steel Plants are located and 132 MSMEs have joined during FY 2020-21. Besides this, a scheme to supply select steel products to MSME members of Engineering Export Promotion Council (EEPC) at export parity price has also been launched by your Company. Further, in line with National Steel Policy, to improve per capita consumption of steel in the Country, around 117 “Gaon Ki Ore” workshops were organised during FY 2020-21 across India.

Your Company has been contributing in nation building since inception by servicing the requirement of various Infrastructure Projects and also projects of Strategic Importance. Continuing the trend, SAIL has supplied significant quantity of Steel to Power Projects, Road, Rail, Airport & Port Infrastructure Projects, Metro Rail Projects, Irrigation & Drinking Water projects, Fertiliser Industry, Oil & Gas Sector, etc.

Your Company has a leadership position in consumer mind space and is striving sincerely to bridge the ever changing expectation gaps with improved services, products and processes.

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 Financial Years 2020-21 and 2019-20 is given below:

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 396 TCS/Man/Year in 2020-21. The manpower strength of the Company was 65,564 nos. as on 1st April, 2021 with manpower rationalization of 3,815 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 2011-12, onwards is depicted below:

('' crore)

Particulars

2020-21

2019-20

Total Amount of Procurement

3747.22

4961.03

Total Procurement from MSE

1384.31

1431.27

%age Procurement from MSE

36.94

28.85

Modernisation & Expansion Plan

The Modernisation and Expansion Plan (MEP) at Rourkela, Burnpur, Durgapur, Bokaro and Salem Steel Plants and all major facilities under MEP of Bhilai Steel Plant have been completed. The various facilities are under operation, stabilization and ramp up.

The Revised Cost Estimates (RCE) of MEP of all the Plants have been approved progressively by year 2020-21. Considering these RCEs, the indicative investment for MEP is likely to be ''80,170 crore (Gross) (excluding the sustenance schemes). The cumulative expenditure of ''68,267 crore (Gross) has been incurred till March, 2021 on MEP (excluding sustenance schemes).

A capital expenditure of ''4,283 crore has been incurred during FY 2020-21 against the revised estimates of ''4,800 crore and capex planned for the Financial Year 2021-22 is '' 8,000 crore.

The details of Addition, Modification & Replacement (AMR) Schemes under implementation are given in the Management Discussion & Analysis (MD&A) Report.

C. HUMAN RESOURCE MANAGEMENT REVIEW

Your Company recognizes contribution of its Human Resources in providing it the competitive advantage. The Company has achieved its present level of excellence through investment in its human resource, where 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. Human Resource initiatives in SAIL are focused on developing team spirit, employee empowerment and their involvement in various improvement activities. Strategic alignment of HRM to business

Developing Employee Capabilities & Competencies

Your Company believes that people''s development is the key for overall growth of the organisation. Training and development activities have facilitated development of employee''s knowledge and skills, resulting in advancement of competencies, thereby leading to 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 and technology in collaboration with reputed organizations and development of effective managerial competencies in association with premier institutes.

Preparing employees for tomorrow is being given a major thrust for effectively taking up challenges and discharging new roles and responsibilities is being given a major thrust. Overall 36,563 employees were trained against target of 25,062 employees during the Financial Year 2020-21 on various contemporary technical and managerial modules in-spite of the challenges of Covid-19 pandemic.The learning and development continuity of the Organization was maintained through various online interventions, apart from the regular programs and e-learning modules being made available in the in-house e-learning portal, while ensuring adherence to all the protocols and local guidelines for the pandemic.

Harmonious Employee Relations

SAIL has maintained its glorious tradition of building and maintaining a conducive and fulfilling employer-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 industrial relations 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, 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 periodic basis and jointly evolve recommendations/ action plans for ensuring a safe environment & harmonious work culture which gets substantiated from the harmonious Industrial Relations witnessed over the years by SAIL Plants/Units, marked with diverse work culture at multi-locations.

In addition, Quality Circles, Suggestion Schemes, Shop Welfare Committees, Safety Committee, Canteen Management Committee, Productivity Committee, etc. 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.

Communication is done in a structured manner with employees at various levels on a wide range of issues impacting the Company''s performance as well as those related to employees'' welfare across the Company. Mass communication campaigns are undertaken at Chief Executive Officer / Senior Officers'' level involving structured discussion with large group of employees. These interactive sessions help employees to align their working with the goals and objective of the Company leading to not only higher production and productivity but also enhance the sense of belongingness of the employees.

Grievance Redressal Mechanism

Effective internal grievances redressal mechanism has been evolved and established in SAIL Plants and Units, separately for Executives and Nonexecutives. Joint grievance committees have been set up at Plant / Unit level for effective redressal of grievances.

SAIL Plants/Units are maintaining 3 stage grievance handling mechanism and employees are given an opportunity at every stage to raise grievances relating to wage irregularities, working conditions, transfers, leave, work assignments and welfare amenities, etc. Majority of grievances are redressed informally in view of the participative nature of environment prevailing in the Steel Plants/Units. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationship between employees and management.

250 staff grievances were received during the FY 2020-21, with 6 grievances pending from previous year, 237 staff grievances have been disposed off during the year, achieving 92.58% fulfilment.

Further, during FY 2020-21, 852 grievances were received under Centralised Public Grievance Redressal and Monitoring System (CPGRAMS), a National level online system managed by Department of Administrative Reforms and Public Grievance (DARPG), Government of India CPGRAMS is the platform based on web technology which primarily aims to enable submission of grievances by the aggrieved citizens from anywhere and anytime (24x7) basis to Ministries/Departments/Organisations who scrutinize and take action for speedy and favourable redressal of these grievances. Tracking grievances is also facilitated on this portal through the system generated unique registration number. However, there are certain issues which are not taken up for redressal and these include subjudice cases or any matter concerning judgment given by any court, personal and family disputes, RTI matters, anything that impacts upon territorial integrity of the Country or friendly relations with other countries, etc.

The Status of Grievances received and disposed from 1st April, 2020 to 31st March, 2021 is as under:

Sl.

No.

Particulars

Received

Disposed

Average Time taken for Disposal

Time allowed as per Guidelines

1

Brought Forward

32

747

15

60

2

Public Grievances

727

3

Covid Related Grievances

93

93

1.2

3

Total

852

840

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 1st January, 2007 was implemented in accordance with Presidential Directives dated 5th October, 2009. 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 1st July, 2014, effective from 1st January, 2012. In terms of notification dated 5th June, 2015 issued by Ministry of Corporate Affairs, 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 in respect of overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits are not included in this Report.

SAIL Plants and Units including Mines are situated in economically backward regions of the Country with predominantly SC/ST/OBC population. Your Company has made commendable contribution to the overall development of civic, medical, educational and other facilities in these regions. Some of the contributions are:

• Recruitment of non-executive employees is carried out mainly on regional level and hence, a large number of SCs/STs/OBCs and other weaker section of the society get the benefit of employment in SAIL.

• Over the years, a large group of ancillary industries have also 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 are engaged for executing job contracts wherein they deploy workmen from the local areas, which again provides an opportunity for employment of local candidates from economically weaker section.

• Establishment of SAIL Steel Plants in economically backward areas has given a fillip to the economic activities, thus, benefiting the population in the peripheral areas with different types of services. 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 OBC population who share the benefits of prosperity and development along with SAIL employees.

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 have been started exclusively for poor, underprivileged children at five Integrated Steel Plant locations. The facilities provided include free education, mid-day meals, uniforms including shoes, text books, stationery items, school bags, water bottles and transportation in some cases.

• No tuition fee is charged from SC/ST students studying in the Company run schools, whether they are SAIL employees'' wards or non-employees'' wards.

• Free medical health centres for poor have been set up at Bhilai, Durgapur, Rourkela, Bokaro and Burnpur (Gutgutpara) providing free medical consultation, medicines, etc. to the peripheral population mainly comprising of SC/ST and weaker sections of society.

• SAIL Plants have adopted tribal children. They are being provided free education, uniforms, text books, stationery, meals, boarding, lodging and medical facilities for their overall growth at residential hostels, Saranda Suvan Chhatravas, Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana for the nearly extinct Birhor Tribe.

• For Skill Development and better employability, tribal school passouts have been sponsored for coaching in premier institutes for IIT/JEE entrance examinations and for trainings along with monthly stipend, accommodation, transportation and food facility at various ITIs, Nursing and other vocational training institutes.

Implementation of Presidential Directives on Reservation for

SC/ST/OBC/EWS/PWDs, etc.

• Your Company follows Presidential Directives on Reservation for Scheduled Castes, Scheduled Tribes, Other Backward Classes, etc. As on 31st March, 2021, out of total manpower of 65564, 10919 belong to SCs (16.65%), 10109 belong to STs (15.41%) and 9894 belongs to OBCs (15.02%).

• Liaison/Nodal Officers have been appointed as per Presidential Directives for due compliance of the Orders and instructions pertaining to reservation for SCs/STs/OBCs /PWDs at Plants/Units of SAIL.

• The Liaison Officers for SC/ST/OBC at respective Plants/Units along with their subordinate staff take care of interest of SC/ST and OBC respectively and the function of SC/ST/OBC cell is being carried out by them. A member belonging to SC/ST community is associated in all the Departmental Promotion Committees (DPCs)/Selection Committees for promotion. A sufficiently senior level officer of SC/ST & OBC category is nominated as member of the Recruitment Board /Selection Committees for Recruitment

• Internal workshops are conducted at regular intervals through an external expert for Liaison Officers for SC/ST/OBC and other dealing officers of SAIL Plants/Units to keep them updated on the reservation policy for SC/ST/OBC/ etc. and other related matters.

• Plants/Units of SAIL have SC/ST Employees'' Welfare Associations which conduct regular meetings with Liaison Officers on implementation of reservation policy & other issues. In addition, an Apex level umbrella body namely SAIL SC/ST Employees Federation also exists in SAIL to represent the issues of SC/ST Employees in a coordinated manner.

Implementation of Right to Information Act, 2005

The provisions under the Right to Information Act, 2005(Act) are being complied by all the Plants and Units of SAIL. All statutory reports, including Annual Report, are being sent to Ministry of Steel and also being uploaded on the website of the Companv-www.sail.co.in. Your Company has appointed Public Information Officers (PIO)/Assistant. Public Information Officers and Appellate Authorities and Transparency Officer under Sections 5 and 19(1) of the Act in each Plant and Unit for speedy redressal of the queries received under the Act. Under Section 5(5), all the officers/ line managers responsible for providing information to the PIO are called Deemed PIO, and are made equally responsible as PIO, towards timely submission of information to the applicant.

An exclusive RTI Portal has been developed with link available on the website of the Company. All the Plants/Units have listed 17 manuals and details of Authorities under the Act are uploaded on the website of the Company. Quarterly Returns and Annual Returns on implementation of the Act are being submitted online through the CIC portal. Implementation of online request has already been introduced from 1st May, 2015. A compilation of Record Retention Policy of various functions of Corporate Office has also been uploaded on the website of the Company. In addition to this, compilations of important decisions of CIC, DoPT circulars and High Court cases are also available on the website of the Company.

Awareness Programs/Workshops on ‘Obligation of Public Authorities under RTI'' have been organised across Plants/Units and Information Commissioner has been present in most of these programs. Further, awareness programmes on the RTI Act are also held at Plants, Units and Corporate Office.

SAIL received a total of 2,706 applications and 482 appeals under the Act during the Financial Year 2020-21 and all of them have been disposed-off within the stipulated time frame under the Act. CIC has also taken up 97 cases and most of these cases were disposed-off in favour of the Company.

Since enactment of the Act, SAIL has received a total of 46,867 applications and 7,105 appeals upto 31st March, 2021, which were disposed-off within the stipulated time. Out of these, 940 cases were taken up by the CIC and most of these cases were disposed-off in favour of the Company.

Citizen Charter

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.

SAILs Citizen Charter has outlined commitment of SAIL towards its stakeholders, thereby empowering them to demand better products and services. Objectives of the Citizen''s Charter of SAIL may be summarized as below:

• Ensuring citizen-centric focus across all its processes by adopting Total Quality Management Principles for improvement of products and services.

• Ensuring effective citizen communication channels.

• Demonstrating transparency and openness of its business operations by hosting the Citizen''s Charter on the Corporate website.

• Working towards the delight of citizens, by fail-safe processes and in case of exigencies leveraging its service recovery processes, like Grievance Redressal, Handling Complaints, etc.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

The Company has set up Internal Complaints Committees in line with the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. These Committees have been set up to redress complaints received regarding sexual harassment. All employees of the Company are covered under these Rules. The details of sexual harassment complaints received and disposed off during the year 2020-21 are as under:

Particulars

No. of Complaints

Number of complaints pending as on 1st April, 2020

Nil

Number of complaints received in 2020-21

7

Number of complaints disposed off during 2020-21

5

Number of complaints pending as on 31st March, 2021

2

Empanelment of SAIL Hospitals under Ayushman Bharat-PradhanMantri Jan ArogyaYojana (PM-JAY), a flagship scheme of Government of India

SAIL has signed an MoU with National Health Authority (NHA) for empanelment of Company run hospitals at Plants/Mines directly under PM-JAY on 18th December, 2019 as National Health Care Providers (NHCPs). The MoU is aimed at partnering Government of India in its endeavor to ensure universal access to good quality health care services to the deprived population of the Country. The scheme provides cashless and paperless treatment to the beneficiaries at empanelled hospitals.

On 4th February, 2021, a meeting with Hospital Operations Division of NHA was held over Video Conference where status of empanelment of SAIL Hospitals has been shared and it has been reiterated that SAIL is committed to operationalization of PM-JAY at SAIL Hospitals. NHA has also proposed Training for operationalization of PM-JAY at one of the SAIL Hospitals to provide impetus to the process.

Upgradation of Ispat General Hospital, Rourkela to a Super Specialty Hospital

In the background of the announcement made by Hon''ble Prime Minister of India during his visit to Rourkela Steel Plant on 1st April, 2015, ISPAT Post Graduate Institute and Super Specialty Hospital (SSH) complex was dedicated to the nation by the Hon''ble President of India on 21st March, 2021 at Rourkela Steel Plant of SAIL. Subsequently, to tide over the surge in Covid-19 cases, the augmented ICU ventilator facilities for treatment of Covid patients, was dedicated by Shri Dharmendra Pradhan, the then Hon''ble Union Minister of Petroleum & Natural Gas and Steel, on 20th May, 2021 through virtual mode. The new state of the art hospital would provide quality healthcare facilities and specialized treatment at the doorstep of the population residing in the peripheral areas.

D. AWARDS & ACCOLADES WON DURING THE YEAR

Your Company has won the following awards during the Financial Year 2020-21:

• SAIL has been awarded with the prestigious Golden Peacock Environment Management Award for the year 2020 in the Steel Sector by the Institute of Directors. The Award was received through virtual mode by Chairman, SAIL on 15th December, 2020.

• Rourkela Steel Plant was awarded the ‘Greentech Foundation CSR Award, 2020'' for outstanding achievement in Promotion of Health and Healthcare category for CSR Project on Comprehensive Water & Sanitation Project in Rourkela. The award was received through virtual mode by Chairman, SAIL on 1st October, 2020.

• SAIL bagged six Awards at PRSI (Public Relations Society of India) National Awards 2020 for its efforts in the field of Communication. The Awards were presented by Union Education Minister during a virtual ceremony on 21st February, 2021. SAIL has been awarded in the category of Best House Journal (English), Best Communication campaign (External Public), Best Communication Campaign of the Year- COVID-19, Special /Prestige Publication, E-newsletter and Corporate Website categories.

• SAIL awarded with the “Rajbhasha Unnayak Samman” for extensive contribution in the propagation of the use of the official language. The Award was received by Chairman, SAIL on 14th December, 2020.

• ISP bagged the second runners-up position in the Final round of AIMA''s ‘29th National Management Games (NMG)'' held through online mode on 1st September, 2020.

• In the Grand Finale of AIMA online “Women''s Quiz” organised on 4th December, 2020, Bokaro Steel Plant was declared the Runners up.

• SAIL has been awarded with the prestigious 11th CII National HR Excellence Award-2020-21 Confluence on 18th March, 2021 virtually.

E. ENVIRONMENT MANAGEMENT

Within the ambit of notified environmental standards applicable for emission and discharge of pollutants into the environment and rules pertaining to ecofriendly management of various wastes, being generated inside the Plant premises as well as in the townships, SAIL Plants and Mines operate their processes without disturbing the ecological balance. Your Company has also drawn its environmental vision in consonance with the Corporate Environmental Policy, which not only addresses the need for compliance of stipulated norms but also emphasises on striving to go beyond. Besides, your Company is committed to address the stakeholders'' concerns and communicate its environmental philosophy to all the stake holders. The Corporate Environmental Policy is available at the website of the Company-www.sail.co.in.

Improvement in Emissions and Discharges

SAIL Plants and Mines are efficiently operating the pollution control devices/facilities and maintaining regularly through revamping/ refurbishing/revitalization and also up-grading them as and when required, for the purpose of complying with the applicable environmental standards, which are becoming more and more stringent day by day. Concerted efforts have resulted in achieving major improvements during the FY 2020-21 over the last five years in the following areas:

• The Particulate Matter (PM) Emission Load has reduced by more than 18% to 0.63 kg/tcs.

• Specific Water consumption has reduced by more than 10% to 3.37 m3/tcs.

• Specific Effluent Discharge has reduced by more than 15% to 1.62 m3/tss.

• Specific Effluent Load has reduced by around 7% to 0.080 kg/tcs.

• Utilisation of BF slag has increased by more than 10% to 98.99 %.

• Specific CO emission has been reduced by more than 2% to 2.55 T/tcs.

• Total Solid Waste Utilisation has increased by more than 8% to 90%.

Your Company has already implemented latest state-of-the-art clean technologies and best available and feasible pollution control facilities in the course of its Modernization and Expansion Plan and thereafter, in its drive for adoption of cleaner technologies. Some of the major clean technologies are as under:

• Tall Coke Oven Batteries along with Coke Dry Cooling Plant, Land based Pushing Emission Control System, Computerised Combustion Control System, etc. at BSP RSP and ISP

• Sinter Plant integrated with improved ignition system (multi-slit burners), Waste Heat Recovery facility from sinter cooler, etc. at RSP and ISP

• Blast Furnace of higher capacity, equipped with Top Pressure Recovery Turbine, Waste Heat Recovery facility, Pulverised Coal Injection, Cast House De-dusting System and torpedo ladle at BSP RSP and ISP

• Hot Metal handling using Torpedo Ladle at BSP RSP BSL and ISP

• Progressively switching over to Cast House Slag Granulation Plant from offsite slag granulation facility.

• Phasing out of energy-intensive ingot route with continuous casting.

• Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at the Rolling Mill in reducing energy consumption as well as CO emission.

• Introduction of Variable Voltage Variable Frequency (VVVF) drives in Plant machineries.

• New BOF Converters provided with a dedicated gas holder at SMS-III of BSP and SMS-I & II of BSL, for recovery and its use as fuel.

• Maximisation of Coal Dust Injection in Blast Furnaces.

• Up-gradation of BF stoves with heat recovery system at BSP and BSL.

• New Gas-fired boilers for power generation at BSP DSP and ISP

• Dog House for secondary emission control at all new Converters. Retrofitting of secondary emission control system is being taken up in phased manner in case of older Converters.

• Installation of energy-efficient LED lights instead of conventional lighting systems at Plants and Units.

New Initiatives

a. Environment friendly disposal of Poly Chlorinated Bi-Phenyls (PCBs) -an environmental pollutant

Bhilai Steel Plant, in partnership with the MoEF & CC and UNIDO, has initiated a project for setting up a disposal facility for Polychlorinated

Biphenyls (PCBs), categorized as Persistent Organic Pollutants (POPs) at its site. The project is at advance stage of completion. On commissioning, the project will systematically dispose of the PCB wastes accumulated over the years not only in SAIL Plants but also in other industrial establishments across the Country. This unique facility will help the nation in fulfilling its international commitment.

b. Installation of a taller chimney to safeguard environment

Revamping of process ESP 1&2 of Sinter Plant at RSP along with replacement of 70 meter chimney with a new 100 meter tall chimney has been completed for adhering to the applicable environmental norms. This facility will also help in ensuring a safe, cleaner and greener environment.

c. Ehancing utilization of wastes through application of 4Rs (Reduction, Reuse, Recycling and Recovery):

Your Company is committed to reduce solid waste generation and maximise its utilisation to achieve 100% and has adopted the “4R''s Policy” (Reduce, Recover, Recycle and Reuse) across all its processes. With a view to enhance utilisation of BOF Slag, a R&D project proposal on “Development of Steel Slag based cost effective eco-friendly fertilizers for sustainable agriculture and inclusive growth” has been taken up through ICAR-Indian Agricultural Research Institute, under the guidance of the Ministry of Steel. The project will ensure symbiotic growth of steel industry and agriculture.

d. Environment friendly domestic waste processing facility

As a green initiative and in compliance with the “Solid Waste Management (SWM) Rules, 2016”, BSP has set up a Solid Liquid Resource Management (SLRM) Centre. The waste is handled in a scientific and hygienic way at the centre. The wet garbage collected through door to door collection system in the township is processed to make fertilizer in specially designed trenches. The dry waste is segregated into plastic, construction debris and other inert materials.

e. Brick Manufacturing Facility for utilisation of GCP Sludge

With an aim to achieve 100% utilization of Gas Cleaning Plant (GCP) sludge, a brick manufacturing facility has been installed in Chandrapur Ferro Alloy Plant for making bricks out of GCP sludge and recycling thereafter through the Submerged Arc Furnaces (SAFs) to reuse the manganese of sludge.

f. Development of an interactive web page on Environment

An interactive web portal on “Environment of SAIL’ has been created in the Intranet Portal of the Company with a provision of alerts for critical environmental compliance issues, important environmental achievement, statutory notices, etc. to improve environmental footprint of SAIL.

Environmental Management System (EMS) linked with ISO-14001

Environmental Management System (EMS) linked to ISO 14001 is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency. Implementation of EMS has helped SAILs Plants and Mines to ensure that their performance being always within the applicable regulatory requirements.

The EMS (ISO-14001) was implemented at all the Plants and the Company is striving to cover all the Mines under its purview to further its commitment towards environment. In the recent years, Barsua Iron Ore Mine, Gua Ores Mine, Kiruburu and Meghahatuburu Iron Ore Mines, Bolani Iron Ore Mine, Mahoharpur Iron Ore Mine, Dalli Iron Mine and thirteen warehouses (Ahmedabad, Hyderabad, Ghaziabad, Faridabad, Vizag, Chennai, Mumbai, Delhi, Durgapur, Dankuni, Bokaro, Bangalore and Kanpur) of CMO have also been certified with ISO 14001.

Sustainable Development/Eco-restoration Projects

(i) Restoration and rehabilitation of degraded ecosystem is essential for maintaining and enhancing bio-diversity as well as replenishing the ecosystem services. About 250 acres of old barren overburden dumps and water void in 200 acres of limestone mined out area in Purnapani have been successfully restored to fully functional ecosystems that generate ecosystem services and goods as well as sequester CO2. The restored ecosystem provides many livelihood options for local people at Purnapani.

(ii) An MOU has been signed in January, 2021 with Institute of Forest Productivity, Ranchi for eco-restoration of mined out area and waste dumps separately for Kiriburu Iron Ore Mines and Meghahatuburu Iron Ore Mines.

Application of Renewable Energy towards a new era

Your Company has set a target of installation of 242 MW renewable energy Power Plants at the following locations:

• 120 MW capacity Solar Power Plant at Bokaro.

• 50 MW capacity Solar Power Plant at Salem.

• 40 MW capacity Solar Power Plant at Rourkela.

• 25 MW capacity Solar Power Plant at Kulti.

• 7 MW capacity Solar Power Plant at Bhilai.

Besides, some of the major initiatives undertaken towards implementation of renewable energy projects include setting up of (i)10 MW Hydel Power Plant at Mandira Dam, RSP under a Joint Venture initiative with Green Energy Development Corporation of Odisha Limited (GEDCOL) and (ii) 6.195 MW roof top Solar Units on different buildings at the various Plants/Units locations under Ministry of New and Renewable Energy (MNRE) scheme. 3 MW roof top Solar Power units have already been installed on various buildings of SAIL Plants & Units.

Plantation

Your Company realizes the role of plantation in overall environmental management initiatives. It is a well-known fact that plants play an important role in balancing the ecosystem and function as a carbon sink. Such plantations are established to foster native species and promote forest regeneration on

degraded lands as a tool of environmental restoration. The greenery developed by afforestation adds to the aesthetic environment, which becomes dust and noise barriers and also a natural sink/absorber of CO2. Keeping the enormous contribution of the plants in mind, SAIL has long been adopting extensive afforestation program religiously in its Plants and Mines since its nascent stage. More than 21.21 million saplings have been planted across SAIL Plants and Mines till date. Giving special thrust for plantation, more than 1.72 lakhs of saplings have been planted during 2020-21.

F. STRATEGIC INITIATIVES OF THE COMPANY

Your Company has adopted a multi-pronged approach that includes organic growth, brown-field projects, technology leadership through strategic alliances, ensuring raw material security by developing new mines, diversifying in allied areas, etc. In line with the above approach, SAIL has formed Joint Venture Companies in different areas viz. power generation, rail wagon manufacturing, slag cement production, securing coking coal supplies from new overseas sources, etc. New initiatives are currently being explored in areas such as pellet manufacturing in a joint venture, outsourcing of power distribution and township maintenance services in SAIL townships, etc. During the financial year 2020-21 closure of two Joint Ventures of SAIL namely SAIL Moil Ferro Alloys (P) Limited and SAIL Bengal Alloy Castings (P) Limited which were formed with MOIL Limited and Burn Standard Company Limited respectively but had failed to take off was completed. SAIL Board also approved exit of SAIL from S&T Mining Company Pvt. Ltd. (Joint Venture between SAIL and Tata Steel Limited) by transfer of the shares held by SAIL in this Joint Venture to Tata Steel Limited. The process of share transfer is being pursued with Tata Steel Limited.

• Disinvestment of SAIL Plants: The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 27th October, 2016 had accorded ‘in principle'' approval for strategic disinvestment of three units of Steel Authority of India Limited (SAIL) viz. Visveswaraya Iron & Steel Plant (VISP), Bhadravati, Karnataka, Salem Steel Plant (SSP), Tamil Nadu and Alloy Steels Plant (ASP), Durgapur, West Bengal.

Subsequently, SAIL Board had accorded ‘in-principle'' approval for the Strategic Disinvestment of these Steel Plants. The entire process of the Strategic Disinvestment is being overseen by an Inter-Ministerial Group (IMG) which is chaired by the Secretary (DIPAM) and co-chaired by Secretary (Steel). Chairman, SAIL and Director (Finance), SAIL are special invitees in the IMG.

SAIL has appointed M/s. SBI Capital Markets Ltd as Transaction Advisor (TA), M/s. Luthra & Luthra Law Offices as Legal Advisor (LA), M/s. Protocol Insurance Surveyors & Loss Assessors Pvt. Ltd. as Asset Valuer (AV) and M/s. KPMG as Tax-cum-Accounting Consultant (TCA) to assist SAIL in the disinvestment process.

Preliminary Information Memorandum (PIM) / Expression of Interest (EoI) of ASP SSP and VISP were issued on 4th July, 2019. EOI bids were opened on 10th September, 2020 and the eligible bidders have been shortlisted. The Confidential Information Memorandum (CIM), Request for Proposal (RFP) and Business Transfer Agreement (BTA) have been issued to the shortlisted bidders. The due diligence by the shortlisted bidders is under process.

Business Excellence Initiatives

Implementation of Management Systems

Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000, OHSAS 18000/ISO 45000, SA 8000, ISO 50000 and ISO 27000 Management Systems. Further, Empanelment of Certification Agencies for the third cycle i.e. 2020-2023 was completed in March, 2020 for Certification to six Management Systems i.e. ISO 9000, ISO 14000, OHSAS 18000/ISO 45000, SA 8000, ISO 27000 and ISO 50000 and related training. Due to the on-going Covid-19 pandemic, remote external/internal audits as well as on-site audits at some places were conducted for easy transition of existing certifications and maintaining all the Management Systems as per the requirements of the standards.

Information Technology Related Initiative

In today''s world of dynamic business environment, wherein, the competition is growing tremendously, your Company is leveraging information technology (IT) to face the challenges in the market place, in order to maintain and improve its competitive advantage. With this objective, your Company has already implemented ERP at all its Integrated Steel Plants, Marketing Organisation and Corporate Office. The robust IT Setup is being gainfully utilised for fulfilling the business requirements, to bring in efficiency and transparency as well as to reduce the operational cost and continuing with various IT initiatives within the Organization to strengthen its business processes. Some of these initiatives accomplished during FY 2020-21 are given below:

• ‘SAIL Pension Portal'' has been developed to facilitate ex-employees to apply for SAIL Pension Scheme. The Portal also facilitates the concerned officers at Plants/Units in processing the applications and calculation of pension amount.

• ‘CARE''- an Online Portal for enabling employees to apply for transfer on compassionate grounds has been developed to enhance transparency and employee satisfaction.

• Centralised Payroll System (CPRS) has been implemented for all the Plants/Units of SAIL, thereby bank payments of more than 65000 employees being operated centrally.

• New Online System for Executive Performance Management developed for executives in grades E-1 to E-7, ensures objective assessment of the executives and planning for their training & development.

• Your Company successfully complied with the statutory requirement of generating Invoice Registration Number and Quick Response Code under E-Invoicing System meeting the stringent deadlines. Further, ERP system was integrated with Government E-Way Bill Portal across all the Plants/Units of the Company.

• As a part of transparency, ‘SAIL Vendor Payment Query Portal'' has been designed and deployed where vendors can track their pending payments. Further, SAIL can also monitor high value inventory of Stores and Spares.

• As a step towards Paperless Office, On-Line Note-Sheet Approval System, ensuring confidentiality and protection against change in earlier notings and attachments, is functioning successfully. This has resulted in faster decision making, easy trackability of proposals while facilitating contactless working during the on-going Covid-19 pandemic.

• To take business automation ahead, provisions have been made for automatic mailing to customers on outstanding notification, interest bills, etc. and to vendors on generation of payment voucher.

• Technology is changing by leaps and bounds with the growth of mobile applications and digitization. In this regard, Real Time monitoring of important parameters in process areas like Blast Furnace, Steel Melting Shop, etc. has been made available on mobiles in some of the Plants. Further, for faster decision making, flow of Product Pricing from Central Marketing Organisation of the Company to respective Plants has been automated.

new norm, the role of sustained and effective communications became critical in every aspect of living, including the functioning of corporates and business houses. The changed scenario demanded that the stakeholders are continuously informed and updated about the company''s activities, priorities, strategies and other developments.

Strategic Objective

In the recent challenging period, the evolving role of Corporate Communication assumed an even greater significance, as the aftermath of Covid-19 pandemic has necessitated timely and continual engagement with the stakeholders. The companies around the world realized the significance and the utmost need to have a full-fledged and evolved team of communicators, who in the regular as well as in times of crisis, keep the good word and works of the organization in proper perspective and public focus. The Corporate Communication is a round-the-clock exercise, bridging the gap between the Stakeholders and the Company, strategize to bring the best image of the Company to the world in tandem with the evolving realties, goals and targets of the Company. While continuously fostering stakeholders'' engagement and employee motivation, the focus of corporate communication was also on aligning employees for better business performance.

• The procurements are being maximized through GeM Portal of Government of India and the same has been directly integrated with SAP SAP-ERP at Bhilai Steel Plant and integration is in progress at other Plants/Units.

• Initiatives undertaken during the ongoing Covid-19 pandemic, have resulted in formation of isolation wards; launching of various systems/apps at different Plants/Units for reporting of Covid-19 cases; constant updates for reimbursement of PPE & Hygiene products; onsite attendance recording during lock down period; conducting Financial & ISO Audits from ‘Remote'', Virtual Platforms, etc.

• The ongoing Covid-19 pandemic has also enabled your Company to conduct the Annual General Meeting through Online Mode, Board Meetings through Video Conferencing and facilitating remote access to the employees.

• Realising that IT is the way forward, all the remote locations/mines of SAIL have now been connected through Internet to facilitate in business and virtual interaction through Video conferencing.

Corporate Communication

The world experienced a disruptive change in FY 2020-21 with the onset of the Covid-19 pandemic. It greatly impacted our lives in every way. The business and industries initially grappled for a while, before they could adjust and adapt to the changing scenario, where doing more and more work online became sine qua non. With prolonged lockdowns and social distancing becoming the

information, was redesigned. In addition to this, through a well-coordinated approach, the communication efforts from SAIL''s Plants and Units got an added impetus, resulting in nationwide publicity and improved image management of the Company.

As the regular and routine communication channels and interfaces were affected during the Covid-19 period, extra efforts to keep the employees motivated and focussed during the challenging times, resulted in organisation of ‘SAIL Gaurav Diwas'' on 24th January, 2021 (SAIL Foundation Day) through online platform, thereby, ensuring participation from every Plant/Unit of the Company, spread over length and breadth of the Country. Also, a new SAIL logo with the caption ‘Mera SAIL, Mera Gaurav'', fostering a strong sense of pride among employees and their families, was launched to commemorate the occasion. A special film involving top management and a cross section of employees was made to boost the morale and spirit of the people across the Organization during lockdown.

External Communications

Your company maintains a transparent channel with its external stakeholders and the issuance of regular and timely press releases and media information is a testimony of that commitment. During the FY 2020-21, the corporate website, also an effective medium for highlighting and sharing Company''s

Media-Print, Electronic and Social

Excellent media relations were maintained through proactive and regular interactions with various media like newspapers, electronic including television and web based media by sharing Company''s important news on a regular and timely manner. The media was continuously informed about the various initiatives undertaken by SAIL to strengthen the nation''s fight against the Covid-19 pandemic and host of other issues.

Covid-19 Communication:

A series of unique communication tools since the onset of Covid-19 pandemic have been deployed and still continuing to create awareness about Covid-19 and the various steps taken by your Company to tackle it. The efforts of SAIL in

preparing a creative on ‘Aarogya Setu'' to create awareness about Covid-19 have been appreciated by the Hon''ble Prime Minister, Shri Narendra Modi. In addition to this, a tribute series of ten short films was conceptualized inhouse to recognize the contribution of the Corona warriors including—banking sector, sanitation workers, health workers, police, volunteers, employees of power sector, steel sector, etc. and was widely disseminated across various digital platforms. These innovative films became very popular and were highly appreciated from several corners. During the lockdown period, the Company strategically advertised and propagated the Covid message of ‘Stay Home, Stay Safe'' on the tele-serials ‘Ramayana'' and ‘Mahabharata'', the two most widely watched programs during the period. A SOP was also designed on back to workplace and widely circulated for safety of employees -after re-joining work.

Brand Outreach

Strategically utilizing the various platforms of media for advertising and creating brand recall, mediums which were widely viewed during the pandemic time were selected. In this regard, major SAIL and SAIL SeQR branding campaign was taken up on television during the telecast of Ramayana and Mahabharat on Doordarshan, the two most widely watched programs during the period. It gave tremendous publicity to the brand SAIL. During the year, the Company extensively promoted the use of Brand Manual and facilitated in standardizing branding for all SAIL branded products across the Country.

Implementation of Government initiatives

Apart from organizing routine communication drives for various government initiatives like Atmanirbhar Bharat Abhiyan, Jan Andolan, Swachh Bharat Abhiyan, Jal Shakti Abhiyan, Yoga Day, etc. your Company undertook the special campaign drive for the commemoration of Dandi March in the month of March 2021. Also, the Government''s Covid-19 awareness campaigns was widely publicized at various points of time throughout the year.

Social Media Efforts

In addition to this, extensive use of social media platforms like Facebook, Twitter, Instagram, LinkedIn, etc. was undertaken for wider dissemination of Company''s information and for better engagement of various stakeholders. The average growth in social media penetration of SAIL across various platforms witnessed an impressive surge.

G. VIGILANCE ACTIVITIES

The objective of SAIL Vigilance is to facilitate an environment enabling people to work with integrity, efficiency and in a transparent manner, upholding highest ethical standards for the organization. To achieve this objective, the Vigilance Department carries out preventive, proactive and punitive actions with greater emphasis in the preventive and proactive functions. Following activities were undertaken during the Financial Year 2020-21:

• To increase vigilance awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants and Units of the Company. A total of 211 workshops involving 2854 participants were organized for enhancing Vigilance Awareness on Whistle Blower Policy, Purchase/Contract Procedures, Conduct & Discipline Rules, Common Irregularities, System and Procedure followed in SAIL, etc. In the months of August 2020, and September, 2020, discussions were held by Ministry of Steel and CVC with all the CPSEs under the Ministry of Steel regarding inclusion of two days Preventive Vigilance Module in Induction Programmes for new entrants and MidCareer Training Programmes. As envisioned by the CVC and Ministry of Steel, SAIL organised the inaugural two days Preventive Vigilance Awareness Programme for mid-level executives in blended mode on 24th & 25th September, 2020. The valedictory session of the program was graced by Shri Sanjay Kothari, Central Vigilance Commissioner; Shri Suresh N. Patel, Vigilance Commissioner; Shri PK. Tripathi, Secretary, Steel and other officials of CVC and Ministry of Steel. Twenty four such dedicated two day Preventive Vigilance training programs have been completed till March 2021, wherein a total of 1012 mid-level executives and 142 fresh entrants of SAIL have been covered.

• Periodic Surprise Checks including Joint Checks were conducted regularly in vulnerable areas of the Company. A total of 2330 periodic checks including file scrutiny and Joint Checks were conducted at different Plants/ Units.

• Vigilance provides vital inputs to the operating authorities for improving the prevailing systems for bringing about more transparency. Accordingly, fifteen major System Improvement Projects (SIPs) were undertaken at different Plants/Units of SAIL.

• 14 cases were taken up for Intensive Examination at different Plants/Units. During these Intensive Examinations, high value procurement/contracts are scrutinized comprehensively and necessary recommendations are forwarded to concerned departments for implementing suggestions for improvement.

• As per the Guidelines of Central Vigilance Commission, Vigilance Awareness Week was observed in SAIL during 27th October to 2nd November, 2020. The week started with administering the Integrity pledge and reading out the messages of dignitaries on 27th October, 2020 at SAIL Corporate Office as well as in all Plants/Units of SAIL. During the week, Workshops/Sensitization Programmes, Anti-Corruption March/ Walkathon, Customers Meet, etc. were organised. Further, events like quiz, essay, slogan & drawing/poster, debate competition were organized for the employees and their families across SAIL. As outreach measures, various events like Speech/Oratory competition, Poster/Drawing competition, Essay/Slogan competition, Inter school debate competition, Quiz competition were organized for School and College Students across various townships of SAIL.

• The following four thrust areas were identified by SAIL Vigilance:

(i) Audit of SIPs implemented in 2017 and 2018.

(ii) Checking of loading/unloading/transportation of scrap/secondary materials inside Plant / Unit premises

(iii) Scrutiny of eligibility criteria fulfillment of the bidders (both eligible and non-eligible) in Open /Global Tender cases.

(iv) Scrutiny of Personnel Department related matters such as Recruitment, Promotion, Compassionate Appointment/Transfers, Retention of facilities on transfer, etc.

• ‘Inspiration-Prerna'', an in-house publication of SAIL Vigilance is being published regularly. The above publication contains case studies and informative articles to enhance awareness of the readers.

• As on 1st April, 2020, a total of 119 complaints were pending and the closing balance as on 31st March, 2021 was 75. The summary of disposal of complaints during 2020-21 is as under:

Complaints Disposed:

Closed as found anonymous / pseudonymous (filed in line with CVC Guidelines)

290

Closed as no vigilance angle / allegations not substantiated

270

Referred to other departments

142

Closed with preventive/administrative recommendations

104

Regular Departmental Actions (RDAs) initiated

(Include 8 cases of Major Penalty against 9 employees and 24 cases of Minor Penalty against 41 employees)

32

Total Disposed

838

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 the Mechanism and allows direct access to the Chairperson of the Audit Committee in exceptional cases. No complaint was received during the Financial Year 2020-21.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion and Analysis Report covering the performance and outlook of the Company is attached and forms part of this Report.

AUDITORS'' REPORT ON STANDALONE FINANCIAL STATEMENTS

The Statutory Auditors'' Report on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2021 along with Management''s replies thereon is placed at Annexure-I to this Report. The comments of Comptroller & Auditor General of India (C&AG) on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2021 under Section 143(6)(b) of the Companies Act, 2013 and the Management''s replies thereon are placed at Annexure-II to this Report.

COST AUDITORS

Pursuant to the direction of the Central Government for Audit of Cost Accounts, the Company has appointed M/s. Chandra Wadhwa & Co., New Delhi, M/s. ABK & Associates, Mumbai and M/s. R.M. Bansal & Co., Kanpur as Cost Auditors for the Financial Year 2020-21.

SECRETARIAL AUDITOR''S REPORT

In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors has appointed M/s. Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the Company for the FY ended on 31st March, 2021. Secretarial Audit Report is placed at Annexure-III to this Report.

With regard to the observation of the Secretarial Auditor, that composition of the Board of Directors of the Company was not as per requirements during the FY 2020-21, it is stated that appointment of Independent Directors on the Board of the Company is made by the Company based on nomination by Government of India. The Company has requested Ministry of Steel, Government of India for nomination of requisite number of Independent Directors on its Board.

In respect of observation regarding performance evaluation of the Directors not being carried out pursuant to the Regulation 17(10), 25(4) and 19(4) read with Schedule-II Part D(A) of Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is mentioned that Ministry of Corporate Affairs has vide its Notification dated 5th June, 2015 notified the exemptions to Government Companies from the provisions of the Companies Act, 2013 which, inter-alia, provides that Sub Sections (2), (3) & (4) of Section 178 regarding appointment, performance evaluation and remuneration shall not apply to Directors of the Government Companies. Further, the Ministry of Corporate Affairs vide Notification dated 5th July, 2017 has notified certain amendments in Schedule IV of the Companies Act, 2013 relating to Code for Independent Directors. As per the Notification, in Schedule IV, the clauses relating to evaluation of performance of Non-Independent Directors, Chairperson and Board have been exempted for Government Companies.

CORPORATE GOVERNANCE

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Corporate Governance Report and Auditors'' Certificate on compliance of conditions of Corporate Governance is placed at Annexure-IV to this Report.

In terms of the SEBI Regulations, 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 uploaded on the website of the Company. All the Board Members and Senior Management Personnel have affirmed compliance with the Code.

BUSINESS RESPONSIBILITY REPORT

As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility Report describing the initiatives taken by the Company from Environmental, Social and Governance perspective forms part of this Annual Report.

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.

Your Company has four other subsidiary Companies namely, SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant Limited, SAIL Sindri Projects Limited and Chhattisgarh Mega Steel Limited. SRCL is operating the Salem Refractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16th December, 2011. 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 have not taken off. SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited have been Struck-Off from the Register of Companies. Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with an objective of fast tracking developmental processes such as land acquisition, R&R activities, ensuring power and water linkages, securing necessary statutory approval/in-principle approval from Ministry of Environment, Forest and Climate Change, etc. for setting up of an Ultra Mega Steel Proiect. The project is no longer being pursued by SAIL.

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 at the Registered Office of the Company and the Subsidiary Companies concerned between 11 AM to 1 PM on working days. A soft copy of the details of accounts of subsidiaries shall be furnished to the shareholders on receipt of written request.

CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the duly Audited Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2021 are placed at Annexure-V to this Report.

AUDITORS'' REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

The Statutory Auditors'' Report on the Consolidated Financial Statements along with the Management''s replies thereon is placed at Annexure-VI to this Report. The comments of Comptroller & Auditor General of India (C&AG) on the Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2021 under Section 143(6)(b) read with Section 129(4) of the Companies Act, 2013 and Management''s replies thereon are placed at Annexure-VII to this Report. 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-VIII to this Report.

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-IX to this Report.

BOARD MEETINGS

During the year, 9 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report, forming part of this Annual Report.

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 in terms of the SEBI Regulations and Companies Act, 1956/2013. The minutes of the Audit Committee meetings are circulated to the Board, discussed and taken note of. The composition and other details pertaining to the Audit Committee are given in the Corporate Governance Report at Annexure-IV.

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

The Company has well established and documented policies and procedures, which are adhered to for transparent, efficient and ethical conduct of business and for safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of financial disclosures. Further, the Company has a good corporate governance structure, and strong management processes, controls, policies and guidelines which drives the organization towards its business objective and also meets the needs of various stakeholders.

Your Company''s robust protocols such as independent internal audit, documented policies, guidelines, procedures, regular review by Audit Committee / Board, etc. helps in compliance of Internal Financial Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. The Company is committed to the highest standards of Corporate Governance where the Board is accountable to all stakeholders for reporting effectiveness of Internal Financial Control (IFC) and its adequacy. Corporate Governance has been carried out in accordance with the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, etc.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) (c) of the Companies Act, 2013(the Act), 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(6) of the Companies Act, 2013, necessary declaration has been given by each Independent Director stating that he meets the criteria of independence. In terms of Section 149(7) of the Companies Act, 2013, Independent Directors of the Company have undertaken requisite steps towards registration of their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

In terms of the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, the details of Loans, Guarantees and Investments given during the FY ended on 31st March, 2021 are given in Annexure-X to this Report.

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 2020-21, with the 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 do not form part of the Report.

DIVIDEND DISTRIBUTION POLICY

In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has adopted Dividend Distribution Policy. The Policy is uploaded on the website of the Company-https://sail.co.in/sites/default/files/Dividend Distribution Policy 2017.pdf

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 in Annexure-XI to this Report. RISK MANAGEMENT POLICY

Enterprise Risk Management (ERM) is a strategic business discipline that supports the organization''s objectives by addressing its risks and managing the impact of these risks. It is the practice of planning, coordinating, executing and handling the activities of an organization in order to minimize the impact of risk on investment, earnings and also strategic, financial and operational risks.

The Enterprise Risk Management Policy of your Company was approved by the Board much before the same became a statutory requirement and since then, risk management in SAIL has grown and developed in line with internal and external business and economic changes. The Policy provides guidance for the management towards business risks across the Organisation. It focuses on ensuring that the risks are identified, evaluated and mitigated within a given time frame on a regular basis.

Currently, the architecture of Enterprise Risk Management in SAIL comprises a well-designed multi-layered organization structure, with each Plant/Unit having its own perceived Risks which are under constant monitoring by the Risk Owners / Risk Champions who frame and implement the mitigation strategy and take it to its logical conclusion. Risk Management Committee of the Plant/Unit Chaired by the Head of the Plant /Unit periodically reviews the risks and its mitigation status and reports the same to Chief Risk Officer (CRO) of SAIL. SAIL Risk Management Committee (SRMC) oversees the Risk Management function in the Company by addressing issues pertaining to the policy formulation as well as evaluation of risk management function to assess its continuing effectiveness. Risks identified by the Risk Champion/Risk Officer are deliberated in the Risk Management Committee and strategy for mitigating such risks is formulated. Roles and responsibility of Board, Audit Committee, SAIL Risk Management Committee, Risk Management Steering Committee, CRO, Risk Officer/Risk Champion related to risk management are defined under the Policy and duly approved by the Board. The Enterprise Risk Management Policy of your Company is uploaded on its website https://sail.co.in/companv/companv-policies.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

SAILs Social Objective is synonymous with Corporate Social Responsibility. Apart from the business of manufacturing steel, the objective of your Company is to conduct business in ways that provide social, environmental and economic benefits to the communities in which it operates. For any organization, CSR begins by being aware of the impact of its business on society. With the underlying philosophy and a credo to make a meaningful difference in people''s lives, your Company has been structuring and implementing CSR initiatives right from the inception. These efforts have seen the obscure villages, where SAIL Plants are located, turn into large industrial hubs today.

The CSR initiatives of your Company have always been undertaken in conformity to the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and DPE Guidelines on CSR & Sustainability, 2014. SAIL carries out CSR projects in and around periphery of steel townships, mines and far flung location across the Country in the thrust areas falling in line with Schedule-VII to the Companies Act, 2013, namely, Education, Healthcare, Access to Drinking Water, Sanitation, Rural Development in Peripheral Areas, Environment Sustainability, Women Empowerment, Assistance to Divyangs, Sustainable Income Generation through Self-Help Groups, Promotion of Art and Culture, etc.

The details of various CSR initiatives taken by the Company along with the Report on CSR in prescribed format are placed at Annexure XII to this Report. The CSR Policy of the Company is available on the website of the Company www.sail.co.in.

CSR initiatives on COVID-19

The Covid-19 pandemic has created an unprecedented crisis globally. The consequential lockdown by the Government to stem the spread of Covid-19 in India, has taken its toll on vulnerable sections of the society. Your Company, as a responsive corporate organization is responsible to ensure the health and safety of its facilities/premises, employees at the Plants/Units and all other persons working at the sites. SAIL has activated a scaled response towards management of the pandemic at its Plants, Units, Mines and Townships.

During FY 2020-21, your Company has contributed an amount of '' 25 crore to the Prime Minister''s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund and also contributed '' 4 crore @ '' 1 crore each to the Chief Minister''s Relief Fund/Covid-19 Fund of the States of Chhattisgarh, Jharkhand, Odisha and West Bengal.

SAIL has supplied over 83000 Metric Tonnes of Liquid Medical Oxygen (LMO) to different States of the Country in its endeavour to partner the Government of India in combatting Covid-19, through Railway Oxygen Express.

SAIL Plants have setup separate Jumbo Covid-19 Care facilities equipped with gaseous oxygen through dedicated pipelines from the Plants viz. 200 bed facility with 10 ventilators and 8 ICU beds at IISCO Steel Plant, Burnpur; Covid Care Hospital with 200 beds at Durgapur Steel Plant; 114 bed care facility at Bhilai Steel Plant (BSP); Ispat Nidan Kendra with 100 oxygenated beds including 50 ventilator-attached beds at Rourkela Steel Plant (RSP); 500 bed Covid care centre (with oxygen support) has been set-up in the premises of Salem Steel Plant.

In addition, to cope up with the increased Covid-19 cases, SAIL Hospitals manned by more than 900 qualified doctors and 1500 para-medical staff to extend round the clock Healthcare, have earmarked 1000 dedicated Covid-19 beds with oxygen support and 129 ICU beds with ventilator support, created 600 beds Quarantine Facilities and developed Covid-19 testing facilities like RAT, RTPCR, TRU-NAT in coordination with the respective State Governments. Besides this, arrangements have been made for touch-free hand-sanitizers, water dispensers, spraying disinfectants, using digital thermal recorders at prominent locations, ensuring continuous water supply in all the peripheral villages.

SAIL, with the help of district authorities, civil society organizations, Self-Help Groups and its employees, is actively implementing the lockdown rules, social distancing norms and effective use of Aarogya Setu App for breaking the chain of transmission of Covid-19 virus in the peripheral areas of steel Plants and Units.

In order to support the vulnerable sections of society, daily-wage earners/ labourers, poor peasants and their families, who are left with dwindled resources during the pandemic, the SAIL Plants and Units, through district authorities, are distributing dry ration packets (comprising of Rice, Dal, Salt, Condiments, wheat atta, soap, etc.), Milk packets, Milk powder, Khichdi, routine medicines, sanitary napkins for women, etc. Daily cooked meals to patients and healthcare workers are also being served. SAIL Plants/Units have also been transporting patients and health workers. CSR departments of Plants are also facilitating stitching of Face Masks, Gamachhas, Aprons, Gloves, etc. through SHGs, and their distribution to peripheral areas, District Authorities, Ministry of Steel/PMO.

Healthcare: SAIL''s extensive and specialised Healthcare Infrastructure provided specialized and basic healthcare to 173.6 lakh people living in the vicinity of its Plants and Units during the period 2011-2020. In order to deliver quality healthcare at the doorsteps of the needy, regular health camps are being organised in various villages on fixed days for the people living in the periphery of Plants/Units/Mines. During the FY 2020-21, regular Health Camps have been organized and 5 Mobile Medical Units (MMUs) extended quality healthcare to about 46,900 villagers at their doorsteps in peripheral areas of Plants, Units and Mines. 24 Primary Health centres at Plants exclusively provided free medical care and medicines to more than 95,000 patients, including 34,000 Covid-19

nstionte

In addition to this, to fight against the surging Covid-19 pandemic, the Company rose to the occasion and newly developed stat-of-art Jumbo Covid Treatment Centres with 100, 200 and 200 oxygenated beds, have been created in fast-track mode at Rourkela Steel Plant, Durgapur Steel Plant and Burnpur during the period May/June, 2021. These Centres will give boost to the Covid related medical infrastructure and provide much needed help to the patients in the region.

Education: To develop the society through education, SAIL is supporting about 77 schools, providing modern education to more than 40,000 children in the steel townships, 20 Special Schools (Kalyan & Mukul Vidyalayas) are benefitting around 4939 BPL category students at integrated steel plant locations with facilities of free education, mid-day meals, uniform including shoes, text books, stationary items, school bag, water bottles, etc., under CSR. SAIL in association with the Akshaya Patra Foundation, is providing Mid-day meals to about 59,000 students in over 600 Govt. schools in Bhilai and Rourkela.

Vocational and specialised skill development training targeted towards sustainable income generation has been provided to 383 youths & 703 women of peripheral villages 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/ Candle making, Screen printing, Handicrafts, Sericulture, Yarn Weaving, Tailoring, Sewing and embroidery, Gloves, Spices, Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, Soap, Smokeless chullah making, etc. 666 youth have been sponsored for ITI training at ITCs Bolani, Bargaon, Baliapur, Bokaro Private ITI and Rourkela, etc.

Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across 450 villages have been connected to mainstream by SAIL, since its inception, by constructing and repairing roads. Over 8176 water sources have been installed, since inception, thereby enabling easy access to drinking water to over 50 lakh people living in far-flung areas.

Environment Conservation: Maintenance of parks, water bodies, botanical gardens and plantation & maintenance of over 5 lakh trees in the townships is being undertaken.

Support to Divyangs & Senior Citizens: Divyang children/people are being supported through provision of equipments like-tricycle, motorized vehicles, calipers, hearing aids, artificial limbs, etc. SAIL supports centres and programmes at SAIL Plants like “Schools for blind, deaf & mentally challenged children” and “Home and Hope” at Rourkela; “Ashalata Kendra” at Bokaro; various programs like “Handicapped Oriented Education Program” and “Durgpaur Handicapped Happy Home” at Durgapur; and “Cheshire Home” at Burnpur. Old age homes are being supported at different Plant townships like “SiyanSadan” at Bhilai, “AcharyaDham and Badshah” at Durgapur, “Sr. Citizens Home” at Rourkela, etc.

Sports, Art & Culture: SAIL is regularly organizing inter-village sports tournaments, extending support to major National sports events and tournaments. Also, supporting and coaching aspiring sportsmen and women through its residential sports academies at Bokaro (Football), Rourkela (Hockey) - with world class astro-turf ground, Bhilai (Athletics for boys), Durgapur (Athletics for girls) and Kiriburu, Jharkhand (Archery). Cultural events like Chhattisgarh Lok Kala Mahotsav, Gramin Lokotsav are organised every year.

Development of Aspirational Districts: In order to provide comprehensive development of both physical and social infrastructure, SAIL has undertaken CSR activities in 7 Aspirational Districts, viz. Kanker, Narayanpur and Rajnandgaon in Chhattisgarh and West Singhbhum, Bokaro, Ranchi in Jharkhand and Nuh in Haryana.

SAIL Employees Rendering Volunteerism & Initiatives for Community Engagement (SERVICE) Scheme: The ''SERVICE'' Scheme has been launched to support volunteer activities and community outreach by SAIL employees. It has provided a much needed platform for like-minded employees having a sense of social responsibility to unite in their effort to help the society brace the fallout of the Covid-19 Pandemic. Over 29,000 volunteers have registered on the SERVICE portal.

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.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

• Shri Atul Srivastava ceased to be Director w.e.f. 10th June, 2020 due to untimely demise.

• Shri Vivek Gupta ceased to be Director w.e.f. 31st July, 2020.

• CA K.S. Chauhan and Prof. N.K. Taneja have ceased to be Independent Directors w.e.f. 21st September, 2020.

• Shri Harinand Rai, Director (Technical) has been re-designated as Director (Technical, Projects & Raw Materials) w.e.f. 28th September, 2020.

• Shri Anirban Dasgupta, Director (Projects & Business Planning) has been re-designated as Director (Incharge-Bhilai Steel Plant) w.e.f. 28th September, 2020.

• Shri Amarendu Prakash, CGM (Chairman''s Secretariat) has been appointed as Director (Incharge-Bokaro Steel Plant) w.e.f. 28th September, 2020.

• Shri Vijoy Kumar Singh, Additional Secretary & Financial Adviser, Ministry of Textiles having Additional Charge of Financial Adviser, Ministry of Steel ceased to be Director w.e.f. 5th November, 2020.

• Shri Shashank Priya, Additional Secretary & Financial Adviser, Ministry of Commerce & Industry, having Additional Charge of Financial Adviser, Ministry of Steel was on the Board of the Company as Government Director from 17th December, 2020 to 22nd April, 2021.

• Shri Anil Kumar Chaudhary ceased to be Chairman w.e.f. 31st December, 2020.

• Ms. Soma Mondal, Director(Commercial) has been appointed as Chairman w.e.f. 1st January, 2021.

• Ms. Sukriti Likhi, Additional Secretary & Financial Adviser, Ministry of Steel, has been appointed as Government Director w.e.f. 23rd April, 2021.

ACKNOWLEDGEMENT

The Board of Directors wish to place on record their appreciation for the sincere, untiring & dedicated efforts and contribution made by every member of the SAIL Family. The Directors acknowledge with deep sense of appreciation, the valuable guidance, support and co-operation received from Government of India, Regulatory & Statutory Authorities particularly from the Ministry of Steel, Ministry of Environment, Forests, & Climate Change, DIPAM, Niti Aayog, Department of Public Enterprises, Railways, State Governments, Electricity Boards, etc. The Board also convey its gratitude to all its stakeholders, including Bankers, Vendors, Customers, Investors, Consultants, and Members for their continued support and confidence reposed in the Organisation.

The Directors also thank the Comptroller & Auditor General of India, Statutory Auditors, Cost Auditors, Secretarial Auditor and other professionals associated with the Company for their valued contribution.

The Directors of your Company are immensely grateful for the invaluable contribution rendered by every person risking their life and safety to combat the pandemic and deeply regret the loss of human life due to COVID-19 Pandemic.

For and on behalf of the Board of Directors

(Soma Mondal)

Chairman

Place: New Delhi Date: 1st September, 2021

Director’s Report