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KIOCL Ltd.

BSE: 540680 Sector: Metals & Mining
NSE: KIOCL ISIN Code: INE880L01014
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OPEN 280.90
PREVIOUS CLOSE 283.60
VOLUME 9194
52-Week high 318.50
52-Week low 107.50
P/E 32.14
Mkt Cap.(Rs cr) 16,233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 280.90
CLOSE 283.60
VOLUME 9194
52-Week high 318.50
52-Week low 107.50
P/E 32.14
Mkt Cap.(Rs cr) 16,233
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

KIOCL Ltd. (KIOCL) - Director Report

Company director report

To the Members

Your Board of Directors are pleased to present the 45th Annual Report on thebusiness and operations of your Company ("the Company" or "KIOCL")along with Audited Financial Statements for the Financial Year ended March 31 2021together with the Auditors’ Report on the Annual Financial Statements and Comments onthe same by the Comptroller & Auditor General (C&AG) of India.

The Audited Financial Statements of the Company for the year ended March 31 2021 areprepared in accordance with the relevant applicable Ind AS and Regulation 33 of the SEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 ("SEBI ListingRegulations") and provisions of the Companies Act 2013 ("Act").

1. FINANCIAL RESULTS AND STATE OF COMPANY'S AFFAIRS

(t in crores Except EPS & Book Value)

Particulars FY 2021 FY 2020
Total Income 2477.83 2056.53
Revenue from Operations 2383.61 1937.65
Other Income 94.22 118.88
Earnings Before Interest and Tax (EBIT) 425.09 73.65
Profit Before Tax (PBT) 410.23 63.68
Tax Expense (including deferred taxes) 109.06 20.20
Profit After Tax (PAT) 301.17 43.48
Add: Other Comprehensive Income (Net of Tax) 1.37 (0.21)
Total Comprehensive Income 302.54 43.27
EPS (Basic & Diluted) 4.87 0.70
Average Net worth 1950.96 1954.94
Average Capital Employed 2152.16 2104.38
Book Value per Share 32.68 30.81
Return (EBDITA) on Average Capital Employed (%) 21.03 4.81
Return on Average Net Worth (%) 15.44 2.22
Capital expenditure 41.05 21.93
Contribution to Exchequer: -
Central 147.97 84.62
State 2.00 1.66

Despite uncertainty in international market for iron ore Pellets since outbreak ofCOVID-19 Pandemic your Company produced 2.210 Million Tons and dispatched 2.311 MillionTons of Pellets during the year and achieved a record total income of t 2477.83 croreswhich is highest since inception of the Company as against t 2056.53 crores in theFinancial Year 2019-20 registering growth of 20.49%. Your Company achieved its bestfinancial performance since closure of its captive mine and has earned a PBT of t 410.23crores and PAT of t 301.17 crores during the year as against PBT of t63.68 crores and PATof t 43.48 crores during previous Financial Year. The net profit includes an operatingprofit t 316.01 crores as against operating loss of t 55.21 crores during previous Year.

COVID-19 Pandemic its Impact and KIOCL's Response

Since the outbreak ofCOVID-19 Pandemic International market for iron ore Pellet wasunder severe pressure as manufacturing and economic activities across the globe wereaffected. KIOCL being a shore-based pellet plant could continue its sales activitieswithout much hindrance and service the contracts. Due to lockdown imposed across thecountries your Company faced initial difficulties in timely collection and negotiation ofshipping / sales documents through banks for realisation of sales proceeds. However yourCompany could overcome the difficulty by making specific agreements with its customers.

COVID-19 outbreak in India followed by the lockdown had impacted the domestic steelindustry severely. It had affected demand output of steel players and the supply chain.Hit by the pandemic steel production in India was down by 10% at 100 million tons in2020 against the 111 million tons logged in the same period during the previous year.Effects of COVID-19 being unclear it would be extremely difficult to predict marketbehaviour. Europe is yet to start full scale operations Japan and South Korea are alsogoing through scaled down production activities. Though presently Chinese market isdepicting slightly positive trend its sustainability needs to be observed. VolatileGeopolitical situation is also a matter of concern and its effects are tough to envisage.

If not for the Government’s spending on infrastructure steel demand would havefallen even sharply as the pandemic has taken a heavy toll on the industry. Howevertimely measures such as push for housing and infrastructure projects aid to MSME’sMining reforms and "Atmanirbhar Bharat" scheme by Government have helpedindustry to recover the turbulence. Though domestic demand recovered to pre-COVID levelsin the month of August 2020 with economic activities limping back to normalcy afull-blown recovery was seen only in the month of November 2020 when sales volume surgedto 11% year-on-year. However with second wave of Pandemic gaining momentum its impact onthe industry is yet to be ascertained.

Revenues

During the year your Company earned Revenue from Operations of K 2383.61 crores ascompared to K1937.65 crores in the previous year a growth of 23.02 %. Revenue fromexport sales increased by 17.27 % to K 1846.06 crores as compared to the previousFinancial Year figure of K 1574.13 crores. Your Company achieved export sales of 1.84million tonnes of Pellets against previous years export of 1.99 million tonnes. YourCompany achieved 77.45 % of total revenue from operations through export. Income from Saleof Services (O&M Operations and Mineral Exploration Services) during the year was K14.01 crores against K 41.30 crores of previous year. Other Income comprising of Incomefrom Treasury Operation and other Miscellaneous Income has decreased to K 94.22 croresfrom K 118.88 crores mainly due to corpus reduction on account of buyback dividendpayment totaling approx. K 300 crore during the year and reduction of interest rates ofFixed Deposits.

Profits

Your Company earned a record Profit Before Tax of K 410.23 crores against a ProfitBefore Tax of K 63.68 crores in the previous year an increase of 544 %. The increase isprimarily due to realisation of contribution to K 2475 per ton an increase of K 1724 perton compared to K 751 per ton during the previous year. Your Company had earned ProfitAfter Tax of K 301.17 crores during the current year as compared to K 43.48 crores duringprevious year.

2. RETURN OF SURPLUS FUNDS TO SHAREHOLDERS

Dividend

In view of the Company’s encouraging performance your Directors have recommendedto distribute 33.09% of PAT

i.e. a final dividend of K 1.64 per equity share on face value of K 10/- each for theFY 2021 (16.40% on the Paid-up Share Capital) against K 0.70 per equity shares during theprevious year subject to the approval of Members at the ensuing AGM to be held on15/09/2021. The final dividend if approved by the Members would involve a cash outflowof K 99.67 crore against a cash outflow of K 43.54 crore during the previous FinancialYear.

Buyback of Shares

The Board ofyour Company in its Meeting held on 19/10/2020 approved the buyback offully paid-up equity shares of K 10/- each not exceeding 14174469 equity shares(representing 2.28% of the total number of equity shares in the paid- up share capital ofthe Company) at a price of K 110/- per equity share payable in cash for an aggregateconsideration not exceeding K 155.92 crores (excluding tax) being 8.25% of the aggregateof the fully paid-up equity share capital and free reserves as per the audited financialstatements of the Company for the financial year ended March 31 2020. This

was within the statutory limits of 10% of the aggregate of the fully paid-up equityshare capital and free reserves under the Board of Directors approval route as per theprovisions of the Companies Act from the equity shareholders of the Company as on therecord date on a proportionate basis through the Tender Offer route as prescribed underthe Buyback Regulations. The total outflow of funds on account of buyback including taxeswas ^ 188.94 crores.

Your Company completed buyback in accordance with provisions contained in CompaniesAct 2013 and SEBI (Buyback of Securities) Regulations 2018. The President of Indiaacting through Ministry of Steel Govt. of India being the Promoter of the Company hadtendered Buy Back offer through Stock Exchange Mechanism and 14173577 Equity Shareswere accepted in the Buy-back and 892 Equity Shares were accepted from other non-promotershareholders.

The Company concluded buy-back on 24/12/2020 consequently 14174469 Equity Shareswere extinguished. The Company utilized its general reserve for the buy-back of itsshares. In accordance with Section 69 of the Companies Act 2013 the Company created aCapital Redemption Reserve of ^ 14.17 crore equal to the nominal value of shares boughtback as an appropriation from the general reserve.

The Shareholding Pattern of the Company pre-Buyback and post-Buyback is as under:

Credit Rating

During the year your Company’s credit worthiness for availing Bank Facilities wasevaluated by ICRA Limited and the following Credit Rating was assigned: -

Name of Agency Facilities Amount (t in crores) Rating Remarks
ICRA Limited Line of Credit (LOC) 1049 Long Term Rating: ICRA AA- [ICRA Double A Minus; Outlook: Stable] Assigned two notches below the highest rating.
Short Term Rating: ICRA A1+ [ICRA A One Plus] Highest rating.

Market Capitalization - Top 500 Companies

Your Company had been included amongst the top 500 listed Companies as per MarketCapitalization on NSE and BSE and stands at No. 291 and 295 with Market Capitalisation of^ 8715.15 crore and ^ 8730.34 crore respectively.

Pre-Buyback

Post Buyback

Particulars No. of Equity Share % of existing Equity Share Capital No. of Equity Share % of the Post Buyback Equity Share Capital
Govt. of India 616051204 99.06 601877627 99.03
Public Shareholding 5874361 0.94 5873469 0.97
Total 621925565 100 607751096 100

Liquidity

Your Company continue to be debt-free and maintain sufficient cash to meet itsstrategic and operational requirements. As on March 31 2021 the Company had a net cashand cash equivalent balance of ^ 1454.87 crores as against ^ 1530.09 crores as on31/03/2020.

Capital Expenditure (CAPEX)

During the year the total CAPEX was ^ 41.05 crores which was 14.40% of the BudgetEstimate (BE) of ^ 285 crores and 12.07% of the Revised Estimate (RE) of ^ 340 crores. Theshortfall was mainly on account of Forward and Backward integration project of BlastFurnace Unit not taking off as the Public Procurement Policy for domestic tendering forless than ^200 crores entailed re-tendering of the same; delayed finalization of PressureFilters project for Pellet Plant Unit and pending forest clearance for Devadari Iron OreMine.

MoU Performance

Performance of your Company in terms of the Memorandum of Understanding (MoU) with theMinistry of Steel Government of India for the Financial Year 2019-20 was provisinallyrated as "Fair". Final rating from DPE is awaited. The MoU evaluation for theFinancial Year 2020-21 is under finalisation and is expected to achieve a "VeryGood" rating despite uncertainty in business environment due to COVID-19 Pandemic.

Risk Management

Pursuant to the requirement of Regulation 21 of the Listing Regulations the Companyhad constituted a Board level Risk Management Committee w.e.f. 26/03/2019. The details ofCommittee and its terms ofreference are set out in the Corporate Governance Report formingpart of the Board’s Report. The Company has a robust Risk Management framework toidentify evaluate business risks and opportunities.

Particulars of Loans Guarantees or Investments

During the year 2020-21 there was no loan guarantee or investment made by your Companyunder Section 186 of the Companies Act 2013.

Particulars of Contracts or Arrangements made with Related Parties

No transactions were entered into with Related Parties as defined under the Section 188of Companies Act 2013 read with Regulation 34(3) and Para A of Schedule V of the SEBI(Listing Obligation and Disclosure Requirements) Regulations 2015 during the Financialyear as such annexure AOC-2 is not furnished. There was no materially significanttransactions with related parties which were in conflict with the interest of the Company.The Board approved Policy on Materiality of Related Party Transactions and dealing withRelated Party Transactions is available on the Company’s Website.

Material Changes and Commitments if any affecting Financial Position

There was no material change / commitment occurred affecting the financial position ofthe Company subsequent to the financial year ended March 31 2021 till the date of thisreport and there was no change in the nature of business of the Company during the year.

Disinvestment through Follow-on Public Offer

The disinvestment of 15% KIOCL Equity Shares by Follow-on Public Offer (FPO) asapproved by the Cabinet Committee on Economic Affairs (CCEA) had not been achieved byGovt. of India during the year.

Management Discussion and Analysis Report

The Management’s discussion and analysis report is set out in this Annual Reportin terms of the provisions of Regulation 34(2)(e) of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations. 2015.

Business Responsibility Report (BRR)

During the year your Company continued to be in top 500 listed companies in term ofmarket capitalization. Accordingly in compliance to Regulation 34(2)(f) of SEBI (LODR)Regulations 2015 BRR disclosures have been integrated in the Annual Report.

3. BUSINESS AND OPERATIONAL REVIEW Pellet Plant Unit

Your Company produced 2.210 million tons of Pellets during the year 2020-21 ascomparison to 2.375 million tons in the previous year and sold 2.311 million tons ofPellets as against 2.356 million tons in the previous year against a MoU target of 2.500(Very Good). The Company missed the MoU target due to non-availability of raw material dueto frequent cyclones in the eastern region coupled with COVID-19 Pandemic affecting themining activities at NMDC mines at Chhattisgarh. Out of the total quantity sold exportedquantity was 1.84 million tons which was about 80% of the total sales and balance 0.47million tons was sold to domestic customers.

Blast Furnace Unit

The Blast Furnace Unit (BFU) remained under suspension due to uneconomic price of PigIron and high Coke Price.

A snapshot of production target vis-a-vis actual achievement with capacity utilizationand sales performance during last five years including current year are depicted at Table1 & 2.

Table 1: Capacity Utilisation

(Qty. In Million Tons)

Year MOU Target (Very Good) Actual Production Utilisation of installed capacity in %
2020-21 2.500 2.210 63
2019-20 2.300 2.375 68
2018-19 2.170 2.238 64
2017-18 1.925 2.327 66
2016-17 1.300 1.460 42

(Installed capacity of Pellet Plant is 3.500 million tons / annum)

(Qty: in Million Tons Value: ^ In Crs.)

Table 2: Sales Performance

Year

Pellets

Pig Iron

Total

Qty Value Qty Value Qty Value
2020-21 2.311 2343.80 0.003 3.55 2.314 2347.35
2019-20 2.356 1878.97 0.003 5.20 2.359 1884.17
2018-19 2.206 1825.97 0.002 2.80 2.208 1828.77
2017-18 2.301 1553.09 0.003 0.40 2.304 1553.49
2016-17 1.387 868.72 0.000 0.07 1.387 868.79

Mineral Exploration Works

Highlights of performance during the Financial Year 2020-21

are: -

Fifteen (15) Mineral Exploration Projects with cumulative project approved value of^ 129.81 crores (including GST) were handled;

Total revenue of ^ 4.57 crores (including GST) was received from NMET and Govt. ofKarnataka. Interest free advance of an amount (mobilization amount) of ^ 7.62 crores(including GST) was received from Govt. of Karnataka.

Four (4) Mineral Exploration projects were completed as per the approved timelinesof National Mineral Exploration Trust (NMET) Ministry of Mines GoI. Geological Reportswere submitted to NMET.

Details of Mineral Exploration Projects executed: -

Projects approved and funded by NMET: -

Mineral Exploration works of below indicated four (4) blocks

completed and GR submitted to NMET: -

Udbur Gold Block Mysore (District) Karnataka: G4 level ME works for Gold &Associated elements (NICKEL PHASE);

Neerbudhihal Limestone & Dolomite Blocks (East & West) Bagalkote Karnataka(02 Blocks): G4 level ME works for limestone and dolomite;

Reddipalayam Amalgamated Limestone Block Ariyalur (Tq & Dist) Tamil Nadu: G2level ME works for limestone.

Total revenue of ^ 4.41 crores (inclusive of GST) was generated from NMET. The Companyreceived the sanction order for carrying out G4 level of ME works for Kyanite inKallahalli Kyanite Block Mysore (Dist) Karnataka with project approved cost of ^ 1.92Crores (Including GST). Project is planned for execution during the Financial Year2021-22.

Six (6) potential areas in the State of Karnataka for precious and base metals wereidentified for future Mineral Exploration works through NMET funding. Mineral ExplorationProject Proposals (MEPP) were placed before Department of Mining and Geology (DMG) Govtof Karnataka (GoK) for scrutiny and consent.

Projects approved and funded by DMG GoK: -

Iron Ore and Manganese - 10 Blocks (Lot No 01 Lot 02 and Haddinapade) for G3 and G2level situated in Bellary and Chitradurga (Dists) of Karnataka:

Detailed Geological Mapping works completed and Technical Committee of GoK approvedthe borehole plan.

Proposal seeking permission for diversion of forest land is under process and forestclearance is awaited.

Revenue of ^ 15.68 Lakhs (inclusive of GST) is generated from GoK blocks.

Progress of Mineral Exploration Work is depicted as under: -

Operation and Maintenance Portal - M/s. OMC at South Kaliapani Odisha: -

M/s. OMC had awarded the work to your Company to take up balance works of constructionof Chrome Ore Beneficiation Plant and commissioning. The total awarded contract price forthe balance work was ^ 28.60 crores plus GST and subsequently to carry out the operationand maintenance for at least five years period after commissioning. KIOCL had procuredequipments worth ^ 13 crores to M/s OMC for the project as per the contractual terms. Thejobs were expected to be completed by 30/11/2020. However the same got extended due tonon-supply of mechanical equipment and other items at site by various suppliers due toCOVID 19

Pandemic. Construction works is expected to be completed by August 2021.

MARKET SCENARIO

Global crude steel production reached 1864 million tonnes (Mt) for the year 2020 downby 0.9% compared to 2019. Asia produced 1374.9 Mt of crude steel in 2020 an increase of1.5% compared to 2019. China's crude steel production in 2020 reached 1053 Mt up by 5.2%on 2019. China's share of global crude steel production increased from 53.3% in 2019 to56.5% in 2020. India's crude steel production for 2020

was 99.6 Mt down by 10.6% on 2019. India remained as the second largest steel producerin the world. Japan produced 83.2 Mt in 2020 down 16.2% on 2019. South Korea produced67.1 Mt down 6.0% on 2019. The United States produced 72.7 Mt in 2020 down 17.2% on2019. The EU produced 138.8 Mt of crude steel in 2020 a decrease of 11.8% compared to2019.

Russia was estimated to have produced 73.4 Mt in 2020 up by 2.6% against 2019. TheMiddle East produced 45.4 Mt of crude steel in 2020 an increase of 2.5% on 2019. Iran wasestimated to have produced 29.0 Mt in 2020 up 13.4% on 2019. Africa produced 17.2 Mt ofcrude steel in 2020 the same as the 2019 production figure.

During the year 2020-21 domestic sale of pellets was up by about 28% y-o-y due toimproved demand. Share of domestic sales in the total sales increased to about 20.24% from15.55% during the previous year.

DIVERSIFICATION OF EXPORT MARKET

Your Companyis making all efforts to diversify its market base and minimize dependenceon few markets. During the year about 56% of the total exports were made to markets otherthan China in Middle East Brazil Bahrain and Malaysia.

CAPEX AND GROWTH PLAN

For long term sustainability / viability of your Company in the competitive marketenvironment and forward consistent steady growth yourBoard madethe following efforts:

Commencement and Development of Devadari Ioon Ore Mine

Govf. of karnataka vide G azette Notification dated 23/01/2017 reserved an area of470.40 ha in kevadari Rarge Sandur Taluk Bellary District formininn least od Iron andMaaganese ore for captive utilization at Pellet Plant and Blast Furnace Unit at Mangaluru.Company had initiated actions for obtaining statutory clearances from authorities forexecution of mining lerse deed.

Mining Plan was approved on 08/03/2018 for production of 2 mtpa iron ore and setting upof 2 mtpa crushing conveying and beneficiation plant from IBM.

Company had submitted Form-I through online portal of MOEF&CC GoI on 18.01.2018.EIA/EMP report was prepared based on Terms of Reference issued on 16.05.2018 by theEnvironment Appraisal Committee (EAC) MoEF&CC GoI. On conducting Public Hearing on25.06.2019 Company submitted Form-II along with Final EIA/EMP report to MoEF&CC GoIon 12.09.2019 for grant of EC. Environmental Clearance (EC) presentation was made on19.12.2019 before EAC. On 07/02/2020 EAC had issued summary records of Meeting ofenvironment appraisal and directed KIOCL to submit additional information / documentsincluding status of forest clearance of the project and approval for the allocation ofwater from Tungabhadra Dam to the project.

EC proposal was presented once again in the 20th EAC Meeting held on19.08.2020. The EC proposal was deferred for want of Additional Details sought likeSubmission of Stage - I forest clearance approval for drawl of 4 MLD water from TB Damfrom GoK.

Water permission proposal was submitted on 12.10.2018 to Principal Secretary WaterResource Department Govt. of Karnataka for allocation of water for DIOM. The applicationwas under process with Water Resource Dept. GoK. Meanwhile Company had engaged M/s MECONLtd for Water availability study and preparation of Feasibility report for drawl of 4MLDof water from TB Dam or down stream of TB dam or Narihalla reservoir. M/s MECON hassubmitted report to KIOCL. This Report was submitted to Chief Engineer KNNL TB DamMunirabad and accordingly chief engineer recommended on 27.01.2021 to State Govt foraccording permission for water drawl from downstream of TB dam. Water allocation proposalis under active consideration at Water Resource Dept. GoK.

The Company submitted Forest Clearance application in Form "A" on 16/03/2018through online portal of MoEF & CC GoI for forest clearance. Govt. of Karnataka on09.10.2020 recommenced the Forest clearance proposal to MoEF&CC GoI for In-Principle(Stage I) clearance for an extent of401.5761 ha i.e. 388 ha for mining area + 13.5761 hafor conveyor corridor power line approach road etc. DDG IRO Bengaluru MoEF&CC GoIvisited the project site on 09.02.2021 for submission of Site Inspection Report (SIR) toMoEF&CC GoI. SIR was submitted on 15.02.2021 to MOEF&CC GoI.

The Agenda for in-principal stage-I Forest Clearance for Devadari Iron Ore Mine was putup in Forest Advisory Committee (FAC) Meeting held on 17.02.2021 for deliberations andrecommendations. As per the recommendations of FAC a sub-committee visited Devadari Minesite on 19.03.2021 and had interaction with officials of Forest Dept. GoK Directorate ofMines & Geology GoK and KIOCL. Sub-committee had submitted the report to MOEF&CC.FC proposal would be placed before the FAC in its Meeting to be held during May- June 2021for according in-principle (Stage I) approval.

On obtaining statutory clearance Mining lease deed would be executed with theGovernment of Karnataka for commencement of Mining operation.

The Company would undertake development of mine construction and commissioning ofbeneficiation plant along with infrastructure development viz railway siding waterpipeline power transmission line conveyor corridor with capital investment of around ^1500 - 2000 crores. The iron ore produced from the mine would be utilized in the PelletPlant Unit and Blast Furnace Unit of the Company at Mangaluru. Setting up of Pellet Plantat Devadari site had been envisaged at later stage.

Setting up of Coke Oven and DISP projects of BFU

In order to make the Blast Furnace Unit (BFU) viable on standalone basis your Companyhad envisaged setting up of 1.8 Lakh TPA capacity of Non-recovery Coke Oven plant withwaste recovery Power Generation Plant as back ward integration project and 2 Lakh TPAcapacity Ductile Iron Spun pipe (DISP) project as forward integration project at theexisting BFU of KIOCL at Mangaluru. KIOCL's Board and PIB has approved the project withtotal capital outlay of ^ 836.90 Crores. MoEF & CC has granted Environment clearance(EC) in Feb 2020.

Company had appointed M/s MECON as EPCM Consultant for the project. Main technologicalpackages envisaged are installation of Coke Oven Plant Waste heat recovery Power PlantDISP Plant Pulverised Coal Injection plant Oxygen and Nitrogen plants.

Site Levelling and some of civil jobs have started at the proposed site. Maintechnological packages are under tendering stage. Due to COVID -19 pandemic the tenderprocess is also getting delayed.

Due to change in General Finance Rules of GoI under the 'Atmanirbhar Bharat'finalizing tenders is getting delayed. Further change in GFR and Procurement Policy ofGovt. of India registration of DPIIT is mandatory for participation of foreign companiesin the bid sharing the country border.

Setting up of 5.0 MWac Captive Solar Power Plant

In order to meet the power requirement of Company’s plant at Mangaluru and furtherto reduce the cost of power of Pellet production Company envisaged for setting up ofCaptive Solar Power Plant with an estimated cost of ^ 24.17 crores. Company engaged an EPCcontractor for land identification Engineering and Construction for setting of 5.0 MWac(6.5 MWp) captive solar plant in Karnataka and appointed M/s IDeCK as technical consultantfor Project monitoring. The EPC Contractor have identified 20 acres of land for setting upof Solar Power Plant at Kathrikehal Village Chikkanayakanahalli Tq Tumku dist. Land hadbeen registered in the name of Company on 29.07.2020. All statutory clearances have beenobtained for Solar Power Plant. Installation of all solar panel and necessary equipmenthave been completed. Performance test is being conducted. Long Term Open Access (LTOA)agreement for Wheeling was entered among BESCOM MESCOM and KPTCL. Solar Power generatedis being pumped to Kathrikehal KPTCL substation w.e.f 11.03.2021.

JOINT VENTURE / MOU

Setting up 2 MTPA Pellet Plant on JV basis between KIOCL & RINL

Your Company had signed a MoU with M/s RINL Visakhapatnam for setting up a 2 MTPAcapacity Pellet Plant at RINL premises Visakhapatnam on Joint Venture Basis. To take theproject forward the Techno-Economic Feasibility Report (TEFR) Detailed Project Report(DPR) and Shareholders Agreement was approved by the Boards of both KIOCL and RINL. M/sMECON was engaged as Technical Consultant for obtaining the Environmental Clearance fromMoEF and Consent for Establishment (CoE) from Andhra Pradesh State Pollution ControlBoard.

Meanwhile M/s RINL had floated an EoI for setting up of 2 MTPA Pellet Plant at Vizagon "Build Operate and Maintain Mode" Basis. RINL have informed your Company tohold the Joint Venture (JV) activities at present however JV is still open till clarityemerges on outcomes of EoI. In view of the above KIOCL has informed MECON to hold furtherstudy / work on preparation of draft report of EIA / EMP study.

MoU with M/s SAIL

Your Company had entered into a MoU with M/s SAIL for exploring the Techno-economicfeasibility for consideration of setting up of pellet plant under a Joint Venture (JV).M/s MECON was entrusted for preparation of bankable TEFR for identifying the best suitedISP of M/s SAIL for setting up of pellet plant. With due consultation it is decided toset up 4 mtpa pellet plant at Bokaro Steel Limited of M/s SAIL. Discussion was underprogress with M/s SAIL to finalize the JV agreement for setting up of pellet plant underJV. Meanwhile KIOCL has started the work of setting up of Coke Oven Plant & DISPPlant at BFU Mangalore and Devadari Iron Ore Mining project was also under advance stageso KIOCL intimated SAIL to withdraw from the setting up of pellet plant project toaugment its resources for its own projects.

MODERNIZATION OF PELLET PLANT UNIT Installation of a Barrel Type Blender Reclaimer

For modernization and to fulfil the current requirement of Pellet Plant Company hasinstalled 1000 tph capacity barrel type blender reclaimer with associated civil andstructural works electrics instrumentation & control etc.

Installation of Vertical Pressure Filters

The existing vacuum disc filters are not suitable to filter the iron ore having highalumina content and slimy in nature. Considering the present scenario and marketconditions for the raw materials KIOCL intends to develop the operations to haveflexibility in the blending of ore from any part of the country. Your Company appointedM/s MECON as consultant for installation of vertical pressure filters to handle oresourcing from Bellary-Hospet belt Bailadala region or Odisha region. The Board of yourCompany had approved the project in its 257th Meeting with the estimated costof ^ 158.60 crores.

Purchase Order on M/s METSO for procuring main equipment had been placed. Auxiliaryequipments and Material handling systems are being procured. Dismantling part of SPFbuilding

Civil and Structural jobs are under progress for erection of the main equipment. Thetotal savings in production cost by installation of vertical pressure filters is expectedto be ^ 45.3

crores per annum and it would enable the plant to improve capacity utilization withflexibility in blending of ores from various sources.

4. DIGITAL INDIA - SINGLE INTEGRATED INFORMATION SYSTEM / ERP

Your Company is in the process of implementation of SAP S/4 Hana ERP on MeitYempanelled cloud environment (IaaS model) and had accordingly appointed a SystemIntegrator (SI). Functional experts of respective modules from SI have started Businessdiscussion sessions on Functional Requirement Specification (FRS) of each module with Coreteam and functional team members. The modules to be implemented are Procurement andInventory and Payroll with ESS Project Management Financial Management PlantMaintenance Production and Quality control Reporting management & Analytics alongwith Document Management System.

5. HUMAN RESOURCE MANAGEMENT & INDUSTRIAL RELATIONS

Human Assets

Your Company has been conferred with "Karnataka Best Employer Brand Award2020" by World HRD Congress. The award was presented to CMD during Virtual Event heldon 26.12.2020.

Your Company takes proactive measure in building positive employee-employerrelationship by nurturing initiatives innovations and aspirations of the employees as anintegrated approach of Human Resource Management focusing on people to manage change andstrive for continued excellence.

As on March 31 2021 the Company had 746 employees on its rolls comprising of 208Executives (28%) 37 NonUnionized Supervisors (5%) and 501 Non-Executive Employees (67%).

Table: 3 Breakup of employees on rolls as on March 31 2021.

Group Total SC ST Ex-servicemen PwD Women Employees
A 208 41 13 - 4 11
B 37 4 1 - 2 6
C 471 69 29 - 2 5
D & D (S) 30 4 5 - 3 1
Total 746 118 48 - 11 23

Persons with Disabilities Act 1995

Your Company ensures compliance under the Persons with Disabilities Act 1995.

Industrial Relations and Employees Welfare

Your Company continued to maintain harmonious industrial relations co-operationbetween the elected representative bodies of employees and management ensuring no loss ofmandays during the year. During the Financial Year Wage Revision for Non-ExecutivesEmployees w.e.f. 01.01.2017 was implemented as per the Memorandum of Settlement arrivedbetween three unions and Management of KIOCL before Dy. Chief Labour Commissioner(Central) on 07.10.2020.

Recruitment VRS & Superannuation

During the year: -

(a) Company recruited thirteen (13) Executives in different levels;

(b) Thirteen (13) employees separated under Voluntary Retirement Scheme; and

(c) Fifty-Six (56) employees superannuated on attaining the age of superannuation.

l Human Resource Development

5 During the Financial Year 2020-21 various activities were f carried out as per theguidelines / instructions of Department of 5 Public Enterprise in the area of HumanResource Development. s Management Development Program (MDP) was conducted for 1 middleand senior level officers by NITK-Mangaluru. Various . Training programs includingin-house training programs weblearning programs on various topics were carried out toenhance the skill sets of employees and to build their technical and managerialcompetencies. Appraisal Team Members training was also conducted as part of PCMM level-2implementation. During the year 2247 number of mandays of training were imparted to theemployees of the Company.

Particulars of Employees

Ministry of Corporate Affairs vide its notification dated June 5 2015 exemptedGovernment Company with the applicability of Section 197 of the Companies Act 2013.However the remuneration received by the employees of the Company had not exceeded thelimit prescribed under Section 197 read with Rule 5 of The Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 during the Financial Year 2020-21.

Public/Staff Grievance Redressal

Your Company has framed a well-defined grievance procedure evolved under the 'Code ofDiscipline'. Staff Grievances received are redressed to the satisfaction of the aggrieved.With respect to public grievance as and when any complaints are received necessaryremedial action is taken promptly. Complaints/ grievances other than the staff grievanceare categorized into customer / consumer complaints / grievances from the ContractorsNGOs / General Public etc. The respective project heads are empowered to dispose of thegrievances concerning their areas. Linkage has been provided to Centralized PublicGrievances Redressal & Monitoring System (CPGRAMS) with effect from May 1 2011. APublic Service Delivery (SEVOTTAM) portal has been created by Govt. of India for assessingand improving the quality of services delivered to the citizens. The same is alsoavailable on the Company's website.

6. CORPORATE GOVERNANCE

Pursuant to Regulation 34(3) and Para-C of SEBI (LODR) Regulations 2015 a separatesection on Corporate Governance along with certificate from Practising Company Secretaryconfirming the level of compliance is attached and forms a part of the Board’sReport.

Directors and Other Key Managerial Personnel

During the year the Board consists of ten members four of whom are executive orwhole-time Directors two are nonexecutive Directors representing Ministry of Steel andfour are Independent Directors. Sitting Fees/Remuneration paid to Directors and toKMP’s respectively are provided at table 14 in Corporate Governance Report.

Declaration by Independent Directors

The Company received necessary declaration from Independent Directors under Section149(7) of the Companies Act 2013 that they meet the criteria of independence laid downin Section 149(6) of the Companies Act 2013 and Regulation 25 of the Listing Regulations.The Board of Directors at its 272nd Meeting held on 27/05/2021 noted thedeclarations. Independent Directors of the Company have registered themselves withIndependent Directors databank in compliance with Companies (Creation and Maintenance ofdatabase of Independent Directors) Rules 2019 and Companies (Appointment andQualification of Directors) Fifth Amendment Rules 2019.

Independent Woman Director

In terms of the provisions of Section 149 of the Companies Act 2013 and Regulation17(1)(a) of SEBI (LODR) Regulations 2015 your Company does not have Independent WomanDirector on its Board. The aforesaid non-compliance is being continuously brought to thenotice of Ministry of Steel for its needful action.

Changes in the Composition of the Board Inductions / Cessations

In terms of Article 91 of the Articles of Association of the Company the President ofIndia is vested with the power to appoint the Directors of the Company from time to timeand also shall determine the term of office of such Directors. Accordingly the followingappointment/cessations on the Board of your Company were effected as per the directives ofthe President of India: -

Sri Shashank Priya Additional Secretary and Financial Advisor Ministry of Commerce& Industry having Additional charge of Financial Advisor in Ministry of Steel wasappointed as an Additional Director and designated as Govt. Nominee Director on the Boardof the Company with effect from 17.12.2020 vice Sri Vijoy Kumar Singh Ministry of Steelwho ceased to be Director on the Board of the Company w.e.f. 05.11.2020.

Smt Sukriti Likhi Additional Secretary and Financial Advisor Ministry of Steel wasappointed as an Additional Director and designated as Govt. Nominee Director on the Boardof the Company with effect from 23.04.2021 vice Sri Shashank Priya Ex-AdditionalSecretary and Financial Advisor Ministry of Steel. Having so appointed Smt Sukriti Likhishall hold office till the date of ensuing Annual General Meeting by virtue of Section 160of the Companies Act 2013 and Sri Shashank Priya ceased to be Director on the Board ofthe Company w.e.f. 23.04.2021.

Appointments / Resignations of the KMP

During the year there was no appointment / resignation of KMP. However pursuant toMinistry of Steel Order F. No. 5/3/2017-BLA dated 30/01/2018 Sri MV Subba Rao ceased tobe the Chairman-cum-Managing Director of the Company w.e.f. 30.06.2021 on account of hisretirement from the Company on attaining the age of superannuation.

Further Ministry of Steel vide its Order F. No. 5/1/2020-BLA dated 30/06/2021 hadassigned the Additional Charge of the post of Chairman-cum-Managing Director KIOCL to SriS.K. Gorai Director (Finance) w.e.f. 01.07.2021 for a period of three months or till thejoining of a regular incumbent or until further orders whichever is the earliest.

Directors Retiring by Rotation

In terms of Section 152 (6) of the Companies Act 2013 Sri T. Saminathan Director(Commercial) and Sri K. V Bhaskara Reddy Director (Production and Projects) being longestin office shall retire by rotation at the ensuing AGM and being eligible forre-appointment offers themselves for re-appointment. The Board recommends theirre-appointment.

Number of Meetings of the Board

The Board met eight (8) times during the year under review the details of which aregiven in the Corporate Governance Report. The maximum interval between any two Meetingsdid not exceed 120 days. The Meetings were conducted in compliance with relevantregulations of Listing Regulations and Secretarial Standard -1 issued by The Institute ofCompany Secretaries of India (ICSI).

Directors Responsibility Statement

To the best of their knowledge and belief and according to the information andexplanations obtained by them your Directors make the following statement in terms ofSection 134 (5) of the Companies Act 2013 that:

(a) In the preparation of the Annual Accounts for the Financial Year ended March 312021 the applicable Accounting Standards had been followed along with proper explanationrelating to material departure.

(b) The Company has selected such Accounting Policies and applied them consistently andmade judgments & estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the Financial Year and ofthe Profit & Loss of the Company for that period.

(c) The Company has taken proper and sufficient care towards the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act 2013for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.

(d) The Company have prepared the Annual Accounts on a going concern basis.

(e) The Company has laid down Internal Financial Controls which are adequate and areoperating effectively.

(f) The Company has devised proper systems to ensure compliance with the provisions ofall applicable laws and that such systems were adequate and operating effectively.

Annual Return

In terms of Section 92(3) of the Companies Act 2013 the Annual Return in form MGT - 7filed for the year 2019-20 with MCA during the FY 2020-21 is available at weblink https://www.kioclltd.in/user/cms/371. The Annual Return for the year 2020-21 will be filed within60 days from the date of 45th AGM of the Company.

Statutory Auditor

The C&AG of India vide its letter dated 10.08.2020 had appointed M/s YCRJ &Associates Chartered Accountants as the Statutory Auditor of the Company under Section139 of the Companies Act 2013 for the financial year 2020-21.

Cost Records and Cost Audit

The Company is maintaining the cost records and requirement of cost audit as prescribedunder the provisions of Section 148(1) of the Companies Act 2013. The Cost Audit Reportfor the Financial Year 2019-20 was filed with the Ministry of Corporate Affairs on16/09/2020. The Cost Audit Report for Financial Year 2020-21 is under finalisation andwill be submitted to the Ministry of Corporate Affairs.

Cost Auditor

Pursuant to Section 148 of the Companies Act 2013 read with the Companies (CostRecords and Audit) Amendment Rules 2014 the Cost Audit records of the Pellet Plant Unitof the Company is required to be audited. The Board on the recommendations of the AuditCommittee had appointed M/s R. M. Bansal & Co. Cost Accountants to audit the costrecords for the Financial Year 2021-22. The remuneration payable to the Auditor beingplaced before the members in the Annual General Meeting (AGM) for their ratification videResolution at Item No.7 of the Notice convening the AGM.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act 2013 and the Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 the Company hadappointed Sri S. Viswanathan Practicing Company Secretary for conducting the SecretarialAudit of the Company for the Financial Year 2018-19 to 2020-21. The Secretarial AuditorReport for the Financial Year 2020-21 forms part of the Directors Report.

C&AG Audit

The Comptroller & Auditor General of India (C&AG) vide its letter dated15.07.2021 has conveyed "NIL" comments on the accounts of the Company for theyear ended March 31 2021. Copy of the same is annexed to this Report.

Adoption of new set of Memorandum of Association and Articles of Association

In line with the approval of the Board at its Meeting held on 11.02.2020 the proposalfor adoption of new set of Memorandum of Association and Articles of Association had beentaken up with the Administrative Ministry for its approval vide Company’s letterdated 11.03.2020. The approval from Ministry is awaited.

7. CORPORATE SOCIAL RESPONSIBILITY

The brief outline of the Corporate Social Responsibility (CSR) initiatives undertakenby the Company during the year under review form a part of this Report as an Annexure inthe format

prescribed in the Companies (Corporate Social Responsibility Policy) Rules 2014 andamendments. For other details regarding the CSR Committee please refer to the CorporateGovernance Report which is a part of this report. The CSR policy is available on weblinkhttps://www.kioclltd.in/user/ cms/344.

8. KEY INITIATIVES

Environmental Management and Pollution Control Measures

Your Company has taken initiatives to address the cause of Global environmental issuesand as a part of the initiatives following has been carried out:

Increased the green cover by planting a number of trees in the plant premises andother areas. As a part of green belt development initiative about 200 saplings of localvariety were planted near the pipe line corridor area.

About 110 saplings were donated by Pilikula Nisargadam in this year and they wereplanted in the Blast Furnace Unit premises. Additionally 250 saplings have also beenplanted departmentally / CISF at BFU.

The formation of concrete road taken up for a length of about 872 meters at OBLarea Pellet Plant premises to ensure dust free atmosphere. The entrance to Shed-1 is alsobeing concreted for smooth movement of trucks and to control dust. The work is undercompletion stage.

Many trees were transplanted at new site project in BFU.

The environmental monitoring is being carried out as stipulated in the 'Consent toOperate' issued by the KSPCB.

Company reduced emission of Green House Gases by adopting various energyconservation measures as under:

(a) The energy generated from roof top and ground based solar plants at Mangalore wasas under: -

(i) Roof top solar plant at CPP = 104912 Kwh Units

(ii) Roof tops solar plant at BFU = 391096 Kwh Units

(iii) 1MW ground based solar system =1666958 Kwh Units.

(b) Purchased renewable energy of 17.87 GWh through wheeling which is 10.87% of totalenergy utilized in the Pellet Plant Unit thereby saving energy cost as well as fulfillingRenewable Energy Purchase Obligation.

(c) Energy efficient Motors installed in place of conventional motors.

(d) Conventional light fittings replaced by LED Light fittings.

(e) Old ACs replaced with energy efficient inverter type ACs.

Safety

The Onsite emergency plan approved by Director of Factories is in existence for bothPPU and BFU. The same was updated as and when there was change in plant condition as wellas emergency team members. Worker's participation in Safety Management system was one ofthe important subjects as per the Factories Act. The Company had formed area wise safetycommittees. Worker's participation in these Safety Committees were ensured. The safetyCommittee Meetings were conducted at regular intervals.

Safety Inspections were carried out regularly by the Safety Officer along withconcerned Department Engineers and Safety Committee members. The observations made duringthe Inspection were noted and reported to the concerned Departmental Heads for compliance.An Internal cross Departmental Safety Audit was conducted on 18.08.2020 along with aCommittee formulated by Competent Authority as per Standard checklist IS:14489.

Suitable Personal Protective Equipment's were issued to all employees to protect themagainst work place hazards. Various Training programmes were conducted to inculcate safetyconsciousness and develop the human resources. Forty- five ATS trainees were given with1800 RI classes and 13500 Man days on the job skill development training classes and 150Technical college students were provided with one week each Internship training during theyear.

National Safety week celebrations were conducted on 4th to 10thMarch 2021 and Productivity Week celebrations were conducted from 12 th to 18thFebruary 2021. The Onsite Emergency Mock drills were also conducted in Pellet Plant Unitand Blast Furnace Unit to check the emergency preparedness for any major accident.

ISO Certification

Your Company is certified with ISO 9001: 2015 for Quality Management System ISO14001:2015 for Environmental Management System and ISO 45001:2018 for Occupational Healthand Safety Management System. All certifications are valid up to 08/11/2021.

Implementation of Official Language Policy

Rajbhasha Department of the Company is entrusted with the responsibility of ensuringcompliance of the Official Language Act 1963. During the year Rajbhasha Departmentscheduled Official Language Implementation Committee Meetings organised workshops &conducted Official Language inspections as per targets of the Annual Program 2020-21 ofDepartment of Official Language (Ministry of Home Affairs).

Employees of the Company made their significant presence during online workshops andother virtual activities conducted under the aegis of TOLIC (PSU) Bengaluru &Mangaluru.

As a remarkable initiative the Rajbhasha Department prepared its first Rajbhasha E-House Magazine ‘Srigandha’ during lockdown period utilising creative use of workfrom home duration and inaugural issue was formally released during Hindi Pakhwada 2020.The magazine was circulated through Email & WhatsApp. The link of the e-magazine wasalso provided on the website of the company and web-portal of Official Language Department(Ministry of Home Affairs) under E-Pustakalay segment.

The Company was awarded a citation as an appreciation by TOLIC (PSU) Bengaluru; basedon the recommendation

of the evaluation committee to retain the first prize awarded in the last two years ofoutstanding performance in the implementation of Official Language.

Vigilance

Preventive vigilance has been the thrust area of Vigilance Department all these yearsand the same has received focused attention during the year. A climate of preventivevigilance is generated to sensitize officials at all levels about the ill effects ofcorruption and malpractices. Regular Structured Meeting of Vigilance with the managementis being conducted and issues related to e-governance Leveraging Technology TenderManagement Award of Works Recruitment Policy have been discussed. The VigilanceDepartment is certified for compliance to ISO certification 9001-2015 standards to ensurecontinuous improvement in Quality Management System. Certificate is valid upto 29thJanuary 2022. Vigilance Awareness Week was observed from 27th October to 2ndNovember 2020 at all the locations/offices of the Company. Workshops Trainings GuestLectures and awareness programmes were conducted during the week through web based/hybridmode observing COVID-19 prevention guideline. E-Procurement is in vogue and the thresholdvalue for this is fixed at ^ 2 Lakhs and above. During the year 95.15% contracts by valueare covered under this. All payments are being made through electronic mode. During theYear 143 work/purchase/sale orders have been issued incorporating Integrity Pact Clausecovering 98.71% of contracts by value. No complaints received under Integrity Pact. 49Scrutiny/examinations 44 checks/inspections carried out during the period and correctiveactions suggested. Necessary action is taken as regards to the complaints received duringthe year. Vigilance Department conducted 13 training programmes at three differentlocations covering 1930 man-hours. Topics such as Preventive Vigilance DigitalVigilance Indenting & Tendering procedures Role of Technology in combatingcorruption and enhancing competitiveness etc. were covered. During the year five trainingprograms on Preventive Vigilance for Mid-Career & Induction level employees as per CVCPV training module were conducted through video conference / hybrid mode covering 1480man-hours.

Compliance of recommendations made by the Committee on Papers Laid on the Table (RajyaSabha) in its 150th Report

Details of cases initiated / disposed-off during 2020-21: -

The details of vigilance cases initiated / disposed-off during 2020-21 were as under: -

- No. of cases pending as on 31.03.2020 :- NIL
- No. of cases initiated during 2020-21 :- 1
- No. of cases pending as on 31.03.2021 :- 1

Nature of Pending case: -The pending case is regarding procedural lapses in procurementof medicines while on deputation to other PSU.

- Officer involved :- 1
- Charge sheet issue on :- 29.03.2021
- Disciplinary proceedings :- Yet to conclude

Audit Paras:

Audit Para No. 3.7.2.2 of Audit Report No. 2 of 2009-10 19.1.1 of Audit Report No. 9of 2009-10 Para No. 15.2 of Audit Report No. 8 of 2012-13 and Para No. 17.1 of AuditReport No. 13 of 2014 were dropped by C&AG during the year under review.

Grant-in-aid for R&D Project

The Company had received a grant-in-aid from Ministry of Steel Govt. of India for anamount of ^ 1120260/- on 05/12/2018 for carrying out R&D for "Synthesis ofKudremukh Iron Ore Mine Tailings based Geopolymer Aggregates using Fly ash as precursor inConstruction Industry" by KIOCL Limited in association with

Dayananda Sagar College of Engineering (DSCE) Bengaluru. DSCE carried out the R&Dwork for a period of 24 months and objectives of the Project was to arrive at designspecifications and identify optimum mix of fly ash bottom ash and iron ore tailings formanufacture of geopolymer aggregates for using in Construction Industry. R&D work hadbeen completed and final report preparation was under progress.

Collection of tailing samples preparation and lab analysis was completed. Draft R& D report was submitted by DSCE for evaluation. Final report would be submitted toMinistry of Steel GoI shortly.

Implementation of Public Procurement Policy for MSEs

In line with the Govt. of India guidelines as per MSMED Act 2006 and keeping in viewof the effective implementation of Public Procurement Policy for Micro and SmallEnterprises (MSEs) Order 2012 following steps were taken:

List of item components that could be sourced from MSEs were posted on theCompany’s website at www.kioclltd.in for the information of MSE vendors.

Communication sent to all the registered vendors regarding the said policy with theobjective of achieving an overall procurement from MSEs. Further for enhancing theprocurement from MSEs owned by SC/ST all the vendors were approached for capturingnecessary details and update the data bank.

During 2020-21 Company placed orders for Goods & Services for a value of ^14.23 crores from MSE’s which constituted 33.02 % of the total procurement value of ^43.09 crores (excluding raw materials imported items proprietary items capital itemspetroleum oil & Lubricants).

Energy Conservation R&D Technology Absorption Foreign Exchange Earnings &Outgo

Details of Energy Conservation R&D Technology Absorption and foreign exchangeearnings and outgo stipulated under Section 134(3) (m) of the Companies Act 2013 readwith Rule 8 of The Companies (Accounts) Rules 2014 is annexed to this report.

Dividend Distribution Policy

In terms of the Regulation 43A of SEBI (LODR) Regulations 2015 the Board of yourCompany have adopted a Dividend Distribution Policy which is available on the website ofthe Company under weblink https://www.kioclltd.in/user/ cms/344.

Appreciations and Acknowledgement

Your Directors gratefully acknowledge the support co-operation and guidance receivedfrom the Hon’ble Minister of Steel Hon’ble Minister of State for SteelHon’ble Chief Minister of Karnataka the Secretary Ministry of Steel and otherofficials of the Ministry of Steel as well as other Ministries of the Government of IndiaGovernment of Karnataka Odisha Tamil Nadu and all other departments / agencies ofCentral and State Government in all the endeavours of the Company.

Your Directors acknowledge the support extended by the valued and esteemed customersshareholders bankers suppliers and other stakeholders for their support andco-operation.

Your Directors appreciate and value the contribution made by every member of the KIOCLfamily.

For and on behalf of the Board of Directors
Sd/-
Date: 05/08/2021 S.K. Gorai
Place: Bengaluru Chairman-cum-Managing Director (Addl. Charge)

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