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Steel Authority of India Ltd.

BSE: 500113 Sector: Metals & Mining
NSE: SAIL ISIN Code: INE114A01011
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OPEN 88.95
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VOLUME 518843
52-Week high 112.30
52-Week low 63.60
P/E 8.12
Mkt Cap.(Rs cr) 36,679
Buy Price 88.80
Buy Qty 2212.00
Sell Price 88.90
Sell Qty 4655.00
OPEN 88.95
CLOSE 88.95
VOLUME 518843
52-Week high 112.30
52-Week low 63.60
P/E 8.12
Mkt Cap.(Rs cr) 36,679
Buy Price 88.80
Buy Qty 2212.00
Sell Price 88.90
Sell Qty 4655.00

Steel Authority of India Ltd. (SAIL) - Director Report

Company director report

To

The Members

Steel Authority of india Limited

New delhi

The Board of Directors has the pleasure of presenting the 50thAnnual Report of Steel Authority of india Limited (SAIL the company) together with theaudited Standalone and consolidated Financial Statements for the Financial Year ended 31stMarch 2022.

A. FINANCIAL REVIEW

Financial Results

(Rs crore)

Sl. No. Standalone Year ended
Particulars 31st March 2022 31st March 2021
Audited Audited
1 Income
(a) Revenue from operations 103473.32 69110.02
(b) Other income 1042.03 1011.69
Total Income 104515.35 70121.71
2 Expenses
a) Cost of materials consumed 42776.46 23136.17
b) Changes in inventories of finished goods work-in-progress and byproducts (284.99) 4268.58
c) Employee benefits expense 12846.24 10445.94
d) Finance costs 1697.88 2817.14
e) Depreciation and Amortisation expenses 4274.17 4102.00
f) Other expenses 26813.46 18531.28
Total Expenses 88123.22 63301.11
3 Profit before Exceptional items and Tax 16392.13 6820.60
Add / (Less): Exceptional items (353.41) 58.43
4 Profit before Tax 16038.72 6879.03
Less: Tax expense
Current tax 12.05
Deferred tax 4023.68 3016.96
Total Tax expense 4023.68 3029.01
5 Net Profit for the period 12015.04 3850.02
Other Comprehensive Income (OCI)
A (i) Items that will not be reclassified to profit or loss (87.22) 374.16
(ii) Income tax relating to items that will not be reclassified to profit or loss 22.77 (93.63)
6 Total Comprehensive Income for the period 11950.59 4130.55

Your company achieved the best Sales turnover of '102805 crore duringthe financial Year (FY) 2021-22 which is higher by 50% as compared to correspondingperiod of last year (cpLY). during the FY 2021-22 there has been significant improvementin the performance of the company mainly

on account of increase in Saleable Steel production (16%) NSR ofSaleable Steel (41%) improved Techno-Economic parameters lower power usage and increasein Saleable Steel Sales Volume (8%). The profit has further improved due to higher sale ofPig iron on account of increased prices higher sales of Secondary products higherdividend income and lower interest charges etc. During FY 2021-22 the Company hasachieved highest ever EBITDA Profit Before Tax and Profit After Tax.

Your Company continued its thrust on judicious fund management withtimely repayment of loans including interest advance planning and action for fundraising etc. to meet our growth objectives. The relentless efforts in this regard hasresulted in significant reduction in the borrowings of the Company during the FY 2021-22which was '17284 crore as on 31st March 2022 vis-a-vis '37677 crore as on 31stMarch 2021 (INDAS). Resultantly the debt equity ratio of the Company as on 31stMarch 2022 improved to 0.33:1 from 0.87:1 as on 31st March 2021. The Companyhas hedged the foreign currency risk on Buyers' Credit and External Commercial Borrowings.The net worth of the Company increased to '52017 crore as on 31st March 2022from '43495 crore as on 31st March 2021.

Two instalments of interim Dividend of 40% and 25% i.e. '4.00 perequity share and '2.50 per equity share were declared in October 2021 and March 2022respectively. The Board of Directors of your Company has further recommended a FinalDividend of '2.25 per equity share subject to approval of Members in the ensuing AnnualGeneral Meeting of the Company i.e. total dividend for FY 2021-22 being 87.50% on equityshare capital of the Company. Further no amount has been transferred to general reserveduring the year under review.

M/s. CARE Ratings M/s. india Ratings and M/s Brickwork Ratings RBIapproved Credit Rating Agencies assigned 'CARE AA Outlook: Stable' 'India Ratings AAOutlook: Stable' and 'BWR AA Outlook: Stable' ratings respectively for SAIL's longtermborrowing programme.

B. OPERATIONS REVIEW

Safety

Your Company is committed to the safety of its employees and the peopleassociated with it including those living in the neighbourhood of its Plants Mines andUnits. SAIL Safety Organization (SSO) monitors and guides the Safety Promotional and Fireprevention activities undertaken at different Steel Plants/Units/Mines/Stockyards. SSOformulates and prepares appropriate Safety Policies Procedures Systems Action PlansGuidelines etc. and follows up for their implementation and thereby helps in providingAccident-free Work Environment. Plants are ISO- 45001 certified which is an advancedSafety Management System and as a compliance to this Hazard Identification and

Risk Assessment (HIRA) has been done for most of operation &maintenance activities and appropriate control measures have been implemented to bring theriskto acceptable limits.

Safety aspects have been incorporated in Standard operating &Maintenance procedures (Sops & SMps) which helps in integrating safety with operationsand maintaining necessary technological discipline. System of conducting safety audits andinspections is in vogue and observations complied at the earliest. prioritising safetyforemost the company has engaged Safety Management consultant for Safety cultureTransformation at its plants in Bhilai rourkela and Bokaro and is in the process ofbeing followed up in other Steel plants. consistent efforts are also being made by plantsand SSo for competence building in the area of Safety Management through regular HRDinterventions LEo workshops webinars etc. on areas of concern covering heads of ShopsLine Managers Safety personnel and trade union leaders. System of imparting safetyinduction and on-the- job training to contract workers prior to start of jobs exists inall plants and units. Benefits of technology are leveraged by extensive utilization of Itin the area of Safety Management by way of web portals for sharing important informationsafety suggestions etc. Good Safety practices prevailing in the plants & units andother industries are captured and circulated among all for horizontal deploymentknowledge sharing and bringing improvement. a multi-disciplinary Safety engineeringDepartments exists in each of the Steel plants and Mines to look into their safety needs.The emphasis is on Systematic Approach to Safety Management. SSo is also managing thesecretariat of the Joint committee on Safety health & environment in the Steelindustry (JcSSi) a bipartite forum which addresses Steel plant Safety health &environment issues with active involvement of management and central & plant leveltrade unions and provides guidelines to the member organizations. Acknowledging theimportance of Safety the activities and measures undertaken are reviewed at the highestlevel by the Board Sub committee on health Safety & environment.

Operations

The Financial Year (FY) 2021-22 began in the midst of the second waveof covid pandemic resulting into localized restrictions & lockdowns and manpowershortage at plant locations. The impetus obtained at the close of the previous financialyear got affected adversely affected the Q-1 performance of FY 2021-22. however in-spiteof lower production in Q-1 buoyant market conditions coupled with focused approach onramping up of new units catapulted the production levels to new heights during the FY2021-22 and all-time best records were achieved in the production of hot Metal crudeSteel and Saleable Steel and many other areas of operation.

During FY 2021-22 SAiL achieved hot Metal crude Steel and SaleableSteel production of 18.733 MT 17.366 MT and 16.896 MT respectively. in addition to thisyour company also achieved yearly best performance in respect of Technoeconomicparameters like- coke rate cDi rate and Specific energy consumption owing to focus oninreasing capacity utilisation of bigger Blast Furnaces (BF) optimisation of BFoperations and enhanced usage of cDi.

The research and Development centre for iron & Steel (RDcIS) of thecompany provided innovative technological inputs to different plants of SAiL with specialemphasis on productivity and quality improvement product development andcommercialization energy conservation and automation. The continuous activities inrespect of product development have led to development of 11 new Steel products during FY2021-22. Some of these products have been developed using the newly commissionedproduction facilities viz. Bar & rod Mill and universal rail Mill at Bhilai Steelplant; Medium Structural Mill at Durgapur Steel plant; New plate Mill at rourkela Steelplant; cold rolling Mill-iii at Bokaro Steel Plant; Wire Rod Mill at IISCO Steel Plant.

At Bhilai Steel plant (BSp) SMS-iii achieved its best ever productionof 2.73 MT surpassing the previous best of 2.21

MT achieved in the previous FY. The Plant produced highest everSaleable Steel at 4.67 MT surpassing the previous best of 4.57 MT achieved in the year2010-11. the year witnessed a new challenge thrown by the Indian Railways in terms ofdemand for new grade (R-260) and new profile (60E1). commercial production of r-260 Grade60E1 rails was started at both the universal Rail Mill (uRM) and the Rail and StructuralMill (RSM) with first rake being dispatched on 25th April 2021 from uRM. RSMalso started regular production of R260/60E1 from May 2021. During FY 2021-22 about 9.6lakh tonnes of R260/60E1 prime Rails have been produced. The improvement in productionfrom new Bar and Rod Mill (BRM) at 7.2 lakh tonnes registered growth of 87% compared to3.8 lakh tonnes produced in previous financial year. crude Steel at 2.23 MT surpassingthe previous best of 2.09 MT achieved in the FY 2020-21. further supply of newlydeveloped WDG4 Loco Wheels to indian Railways continued and 2146 Wheels were supplied inFY 2021-22.

Rourkela Steel plant (RSp) registered highest ever production of HotMetal at 4.34 MT crude Steel at 3.99 MT and Saleable Steel at 3.67 MT surpassing theprevious best production of hot Metal at 3.84 MT crude Steel at 3.66 MT and 3.33 MTachieved in the year 2018-19. The New plate Mill also recorded highest ever production at9.29 lakh tonnes surpassing the previous best of 8.74 lakh tonnes achieved in the year201920. The new hot Strip Mill-2 (HSM-2) has been commissioned in March 2022. durgapurSteel plant (DSp) recorded highest ever production from its new Medium Structural Mill(MSM) at 4.37 lakh tonnes in FY 2021-22 against 2.94 lakh tonnes during 2020-21. onsimilar lines the plant recorded the best ever production of

Bokaro Steel plant (BSL) registered the highest ever production at hotStrip Mill (HSM) at 3.91 MT surpassing the previous best of 3.68 MT achieved in the year2018-19. Similarly cold Rolling Mill (cRM-iii) also recorded highest ever production at6.52 lakh tonnes surpassing the previous best of 4.78 lakh tonnes achieved in the year2020-21. BSL also achieved highest ever Finished Steel production at 3.83 MT surpassingthe previous best of 3.63 MT achieved in the year 2018-19.

At iiSco Steel plant (iSp) crude Steel production at 2.23 MT andSaleable Steel production at 2.16 MT were highest ever surpassing the previous best of2.08 MT and 2.09 MT respectively achieved in the year 2019-20. the new Wire Rod Mill(WRM) at 4.65 lakh tonnes surpassed the previous best of 4.12 lakh tonnes achieved in theyear 2019-20 and Bar Mill at 6.50 lakh tonnes also surpassed the previous best of 6.32lakh tonnes achieved in the year 2019-20.

Power

Your company has always strived to maximize and optimise its captivepower potential in view of reliability of power supply as well as availability of power atoptimum cost. During the FY 2021-22 about 61% of the total requirement of 1368 MW was metfrom the captive power plants. With an objective to optimize the cost SAIL has beenactively procuring power through open access route since such opportunity was introducedin Electricity act 2003. continuing the legacy this year too Sail plants procured about480 Million units of power through open Access route which also included Green (renewable)power procured through Short term open Access. Your company was able to save about '121crore in FY 2021-22 by procuring cheaper power through open Access route.

With the objective to enhance the share of captive power and ensuresupply of reliable power at optimum cost to expansion projects the new captive powerfacility of 250 MW at rourkela Steel plant has been commissioned in March 2022. furtheryour company is in the process of installing new captive power facility of (2x20) MWcapacity at durgapur Steel plant by NTpc-SAIL power company Limited (NSpcL) a JointVenture company of SAIL & NTpc Ltd.

Your company has always been focussed on its approach towards achievingbetter performance parameters with respect to usage of power purchased from utilities andmaximize the rebates and incentives available in the power tariff for achieving higherload factor power factor etc. during FY 2021-22 '144 crore was received as incentivesand rebate in the power tariff from grid utilities.

Besides above optimization of electricity consumption in various steelmaking processes is major thrust areas of SAiL plants for lowering the power consumptionper tonne of saleable steel production. As a responsible corporate house your company hasgiven adequate emphasis on development and usage of renewable power sources with focussedapproach on roof Top Solar (RTS) power plants. A capacity of 6115 kWp of roof Top Solarpower plants has already been installed across SAiL plants and units. Furtherinstallation of 820 kWp capacity rooftop solar plants is in progress at various plants/units of the company across the country and installation of 19 MWp capacity floating solarplants over cooling ponds is envisaged at plants of the company.

Raw Materials

During the FY 2021-22 total requirement of iron ore was met from thecaptive sources. Your company's captive mines produced about 34.15 million tonnes (MT) ofiron ore. However in case of clean coking coal out of total requirement about 1.31 MTwas met from indigenous sources (coal India Limited & captive sources) and for thebalance requirement of coking coal (15.92 MT) the company had to depend on imports due toconstraint of availability of required quality within the country. in the FY 2021-22production from the captive collieries of the company was about 0.88 MT out of which 0.42MT was raw coking coal and balance 0.46 Mt was non-coking coal. in case of fluxes 1.89

MT which include around 1.24 Mt of limestone and 0.65 Mt of dolomitewere produced from captive sources. for thermal coal your company depends entirely onpurchases from coal india Limited except for small quantity produced from the captivemines.

Selling of iron Ore from Captive Mines in Open Market on account ofexpiry of mining leases of private Merchant Miners by 31st March 2020 in thecountry Ministry of Mines Government of india vide order dated 16thSeptember 2019 has entrusted SAiL with the responsibility to make available in the openmarket 25 percent of its total mineral production of the previous year. The permission isvalid for a period of two years w.e.f. 16th September 2019. further inanother separate order dated 16th September 2019 Ministry of Mines hasallowed Sail to dispose of 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 thisregard efforts are being made in obtaining approval of respective State governments andother concerned statutory authorities.

However in view of delay in grant of permissions by the respectiveState governments and Statutory Authorities Ministry of Mines vide orders dated 3rdDecember 2020 modified the earlier orders dated 16th September 2019 andallowed sale of 25% of the cumulative production in the previous year in a State and alsosale of sub-grade minerals lying at different captive mines under intimation to theconcerned State Government and Indian Bureau of Mines.

Further Ministry of Mines vide gazette Notification dated 28thMarch 2021 amending the MMDR Act provided that any lessee using mineral for captivepurpose may sell up to 50% of the total mineral produced in a year after meeting therequirement of the end use plant linked with the Mine subject to the prescribedconditions. accordingly about 2.504 MT of iron ore was made available in the open marketfrom the Mines in the States of odisha and chhattisgarh. However approvals from JharkhandState government are still awaited.

Grant of Environment Clearance (EC)

In order to expedite the process of selling of dump iron ore fromcaptive mines proposals for amendment of existing environment clearances were submittedto the MoEFcc and on recommendation of Expert appraisal committee following Ecs have beengranted:

• Bolani ore Mine on 5th august 2021.

• amalgamated Lease (Barsua-taldih-kalta) on 25thJanuary 2022 for RoM capacity of 8.05 MTpA.

• Extension of Ec beyond december 2021 for further 2 years forrowghat Mine.

Extension/Renewal of Periods of Mining Leases

• government of Madhya pradesh has extended the lease period ofright Bank Mining Lease of kuteshwar Limestone Mine for a period of 20 years w.e.f. 10thJune 2021 and of Left Bank Mining Lease for a period of 10 years from 15thMay 2022.

• government of chhattisgarh has extended the lease period ofMahamaya-dulki Lease of Bhilai Steel plant for a period of 20 years w.e.f. 4thnovember 2021.

• on execution of Lease deed for 6.9 Sq. Mile lease on 9thSeptember 2021 government of odisha has extended upto 13th november 2032.

Extension of lease Periods of Coal Mining leases of GovernmentCompanies

Ministry of coal vide gazette notification dated 1stoctober 2021 has notified the Mineral concession (amendment) rules 2021 wherein allmining leases granted on or after such amendment to a government company for coal orlignite shall be for a period of 50 years. Further all subsisting mining leases vested orgranted to a government company before such amendment for coal and lignite shall be deemedto have been granted for 50 years or till 31st March 2030 whichever is later.

On an application by a government company at least 3 months prior tothe expiry of the mining leases the State government shall extend the period of themining lease for a further period of 20 years at a time. however no extension of periodof mining leases shall be granted to a government company that has been selected throughauction. further a provision of deemed extension is also there in case application forextension of mining lease by government company at least 3 months prior to the expiry ofthe mining leases is not disposed of by the State government.

The aforesaid provisions will facilitate the extension of lease periodsof tasra coal Mining Lease beyond 30th April 2022.

Resolution of Surface lease ownership railway Siding of Gua Mine

Lease agreement for development of gua railway siding under 36.231(6.80 + 29.431) acres land for a period of 35 years was finalized on 22nddecember 2021 and Land Leasing agreement for undisputed 6.80 acres railway Land wassigned with the South Eastern railways chakradharpur on 24th december 2021.in this regard an amount of '4.23 crore was deposited with South Eastern railwayschakradharpur for long term leasing of 6.8 acres railway land for 35 years to Sail andconstruction of railway siding is under progress.

Handing over of 361.295 Ha of diverted forest land under DuargaiburuMining leases of Gua ore Mine government of Jharkhand has given its consent on 1stfebruary 2022 for handing over of diverted forest land of 361.295 ha of forest land underduargaiburu Lease of gua mine and the same will be done in phases.

Reservation of Area for Sand for Stowing for Captive underground Mines

Ministry of coal vide letter dated 23rd August 2021 hasintimated Jharkhand State government about reservation of the collective area of 134.63 haunder dungri ghat het kandra ghat chasnalla ghat and tasra ghat of river damodardistrict dhanbad for sand for stowing in favour of SAiL. this will help in facilitatingthe supplies of sand for stowing for its underground coal mining operations.

Sales & Marketing

During the financial Year (FY) 2021-22 your company achieved its bestever Saleable Steel sales volume of around 16.152 million tonnes (MT) registering agrowth of about 8% over previous year and 13% over 2019-20. continuing its efforts toenhance presence in the international markets the company exported about 1.349 Mt ofvarious product categories gaining access to several new markets besides retainingexisting markets.

The steel business scenario was initially subdued owing to the Globalpandemic circumstances intermittent lock downs uncertainties in various geographiesleading to difficult market conditions. the situation somewhat improved by the secondquarter of the FY 2021-22 and eventually picked up in fourth quarter after a phase ofslow-down in third quarter. the company adopted focused approach for improving its salesvolumes reducing its inventory levels besides improved price realizations.

Your company has been fulfilling the entire demand of steel tracks fromIndian Railways for decades. A total of 9.79 lakh tonnes of rails were supplied to indianrailways in FY2021- 22 the 260m long-rail welded-panel component in the total rail supplybeing about 71% which is highest ever. it may be mentioned that ~ 94.5% of the total railsupplies to railways during FY 2021-22 comprised the newly developed R-260 grade in E-1profile.

Sail is the only domestic producer catering to the forged steel wheelrequirements of indian railways. over the years a number of wheel profiles have beendeveloped by SAIL which have substituted imports thereby furthering the cause ofAtmanirbhar initiative of government of India. in this regard all-time best supply of16529 nos. of WAG9 locomotive wheels to railways was achieved during the FY 2021-22.further your company has also developed LHB Axle in FY 2021-22 also an importsubstitution item and supplied 3872 nos. to indian railways. in addition to this bestever supply of 2146 nos. of WDG-4 Loco wheels also an import substitution item wasachieved in FY 2021-22.

Your company's presence in certain critical areas of Defence has beenstrategically significant with first commercial order for special DMR grade steel platesfor underwater applications received from indian Navy during FY 2021-22.

Enhancing its efforts towards increasing sales of value added andspecial quality products to the consumers included Special grade Wire rod coils in EWNR(electrode Quality) MiG for continuous welding in Auto Segment cable Armour Quality forelectrical segment different grades of High carbon Wire rod coils for differentapplications such as umbrella ribs cycle spokes spring used in machines toolstyre-beads. Further Wires for rope and conveyors core Wire for electric cable crimpedwire mesh for vibrating screens HcT 1130 cr (pc 115) for manufacturing of railwaysleepers and electric poles EN8D / EN8D cr for bright bar for auto segment variousgrades for fastener and general engineering agriculture concrete reinforcing mesh etc.have also been supplied by SAiL during FY 2021-22. Apart from this with continuousengagement for new grades and products your company has developed Wide parallel flangeBeam WpB200 for railway Sleepers TMT Fe550D HcR and Fe600 for infra and constructionsectors high strength coated galvanized products for agriculture & solar industry cRSilicon for electrical applications etc.

The brand "SAIL SeQR" reinforcement bars is growing fromstrength to strength by clocking 3.78 lakh tonnes during FY 2021-22 which helps instrengthening uniform brand experience in retail channel. Your company is working towardsexpanding the 2-Tier and 1-Tier distributorship network across india which will furtherstrengthen our position in B2c space and around 5.26 lakh tonnes of TMT was suppliedthrough the 2-Tier distributor network during FY 2021-22. As a part of supplementing thisinitiative online e-portal was launched during 2020-21 enabling the smallest of demandbeing serviced through the 2-Tier distributorship network whereby small consumers/housebuilders could place orders through the e-portal.

To popularize usage of steel in designing and to boost the"NEX" brand of structural your company organized virtual meetings with Plantsand Customers and also participated in virtual workshops with Structural Designers andStructural Engineering groups. iiT Roorkee celebrated their 175th Yearwherein the Civil Engineering Department organized a 'Civil ConclaveRs in virtual modepresentations were made on SAIL products and particularly on "NEX" Structuralduring the event.

Under "Mission Poorvodaya" Scheme by Ministry of Steel anincentivization Scheme —"ispati ilakon Ka Vikas-SAIL Ke Saath" wasintroduced by SAiL for development of MSMEs based in the districts in which its integratedSteel Plants are located and 142 MSMEs have joined the Scheme.

Further in line with National Steel Policy to improve per capitaconsumption of steel in the Country around 130 "Gaon Ki Ore" workshops wereorganised during FY 2021-22 across india for propagating steel usage.

Your Company has been contributing in nation building since inceptionby servicing the requirement of various infrastructure Projects and also projects ofStrategic importance. During the year SAiL has supplied significant quantity of Steel toPower Projects Road Rail Airport & Port infrastructure Projects Metro RailProjects irrigation & Drinking Water projects Fertiliser industry Oil & GasSector etc. the major projects being Regional Rapid Transport System Delhi MeerutExpressway Eastern Dedicated Freight Corridor Corporation Western Dedicated FreightCorridor Corporation HPCL Rajasthan Refinery Limited Barmer Bullet Train Project fromAhmedabad to Mumbai for National High Speed Railway Corporation Limited india's longestriver road bridge of 19 km at Dhubri to Foolbari over river Brahmaputra etc.

Your Company has a leadership position in consumer mind space and isstriving sincerely to bridge the ever changing expectation gaps with improved servicesproducts and processes.

Public Procurement Policy for Micro and Small Enterprises

As required by the Public Procurement Policy of the Government ofindia the information on procurement from Micro & Small Enterprises during FinancialYears 2021-22 and 2020-21 is given below:

(Rs in crore)

Particulars 2021-22 2020-21
Total Amount of Procurement 6561.33 3747.22
Total Procurement from MSE 2233.73 1384.31
%age Procurement from MSE 34.04 36.94

Modernisation & Expansion Plan

A capital expenditure of '6013 crore has been incurred during FY2021-22 against a revised estimate/plan of '8000 crore. Capex planned for the FinancialYear 2022-23 is also at '8000 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 inproviding it the competitive advantage. The Company has achieved its present level ofexcellence through investment in its human resource where skill and knowledge constitutethe basis of every initiative - be it technology or innovation. Developing skills andcapabilities of employees to improve manpower utilization and labour productivity is thekey thrust area of Human Resource Management (HRM) in the company.

Your company provides an environment conducive for learning encouragesadoption of best practices in every area and nurtures creativity and innovation amongemployees. human resource initiatives in SAIL are focused on developing team spiritemployee empowerment and their involvement in various improvement activities. Strategicalignment of HRM to business priorities and objectives has facilitated smooth transitionto 'state-of-the-art' technology in the Modernization and Expansion Projects.

Enhanced Productivity with Rationalized Manpower

Your Company achieved the Labour Productivity (LP) of 474 TCS/Man/Yearin FY 2021-22. The manpower strength of the Company was 62181 nos. as on 1stApril 2022 with manpower rationalization of 3383 nos. achieved during the year. Theenhanced productivity with rationalized manpower could be achieved as a result ofjudicious recruitments building competencies and infusing a sense of commitment andpassion among employees to go beyond and excel. Trend of enhanced productivity andmanpower rationalization since 2012-13 onwards is depicted below:

Developing Employee Capabilities & Competencies

Your Company believes that people's development is the key for overallgrowth of the organisation. Training and development activities have facilitateddevelopment of employees' knowledge and skills resulting in advancement of competenciesthereby leading to attainment of organisation's goals and objectives. SAIL has been makingsustained efforts through various training and development activities with focus onpreservation transfer and improvement of skills knowledge and technology incollaboration with reputed organizations and development of effective managerialcompetencies in association with premier institutes.

Preparing employees for tomorrow is being given a major thrust foreffectively taking up challenges and discharging new roles and responsibilities is beinggiven a major thrust. Overall 32571 employees were trained against target of 30458employees during the Financial Year 2021-22 on various contemporary technical andmanagerial modules in-spite of the challenges of COVID19 pandemic. The learning anddevelopment continuity of the organization was maintained through various onlineinterventions apart from the regular programs and e-learning modules being made availablein the in-house e-learning portal while ensuring adherence to all the protocols and localguidelines for the pandemic.

Harmonious employee relations

SAIL has maintained its glorious tradition of building and maintaininga conducive and fulfilling employer-employee relations environment. The healthy practiceof sorting out and settling issues through discussions with trade unions/ workers'representatives enabled the Company in ensuring workers' participation at different levelsand establishing a peaceful industrial relations climate. Some of the bipartite forums arefunctioning since early seventies and are sufficiently empowered to address differentissues related to wage safety and welfare of workers thus helping in establishing aconducive 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 unionsof Plants/units meet on periodic basis and jointly evolve recommendations/ action plansfor ensuring a safe environment & harmonious work culture which gets substantiatedfrom the harmonious Industrial Relations witnessed over the years by SAIL Plants/unitsmarked with diverse work culture at multi-locations.

In addition Quality Circles Suggestion Schemes Shop WelfareCommittees Safety Committee Canteen Management Committee Productivity Committee etc.also offer multiple avenues for enhanced workers' participation. Workers are also keptabreast of strategic business decisions and their views sought thereon through structured/ interactive workshops.

Communication is done in a structured manner with employees at variouslevels on a wide range of issues impacting the Company's performance as well as thoserelated to employees' welfare across the Company. Mass communication campaigns areundertaken at Chairman/ Director Incharges'/ Senior Officers' level involving structureddiscussion with large group of employees. These interactive sessions help employees toalign their working with the goals and objective of the Company leading to not only higherproduction and productivity but also enhance the sense of belongingness of the employees.

Grievance redressal Mechanism

Effective internal grievances redressal mechanism has been evolved andestablished in SAIL Plants and Units separately for Executives and Non-executives. Jointgrievance committees have been set up at Plant / Unit level for effective redressal ofgrievances.

SAIL Plants/Units are maintaining 3 stage time-tested grievancehandling mechanism and employees are given an opportunity at every stage to raisegrievances relating to wage irregularities working conditions transfers leave workassignments and welfare amenities etc. Majority of grievances are redressed informally inview of the participative nature of environment prevailing in the Steel plants/units. Thesystem is comprehensive simple and flexible and has proved effective in promotingharmonious relationship between employees and management.

261 staff grievances were received during the FY 2021-22 and 19grievances were pending from previous year 238 staff grievances have been disposed ofduring the year achieving 85% fulfilment.

Further during FY 2021-22 584 grievances were received undercentralised public Grievance Redressal and Monitoring System (cpGRAMS) a National levelonline system managed by Department of Administrative reforms and public grievance(DARpG) government of India.

The Status of grievances received and disposed from 1stApril 2021 to 31st March 2022 is as under:

S. Particulars No. received (including Brought Forward) disposed Average time taken for disposal time allowed as per Guidelines
1 public grievances 513 489 13 45
2 Appeals 71 68
total 584 557

Remuneration Policy

In SAiL pay and other benefits for executives are based on thepresidential directives issued by Ministry of Steel government of india. the current payrevision due from 1st January 2017 for Executives has been implemented incompliance with presidential Directive dated 18th November 2021. in case ofnon-executive employees the wages are finalized/ revised in bipartite forum of NationalJoint committee for Steel industry (NJcS). A Memorandum of understanding (Mou) has beenarrived at and payment of revised Wages perks/Allowances etc. has been implemented afterobtaining approval of Ministry of Steel on 18th november 2021. in terms ofnotification dated 5th June 2015 issued by Ministry of corporate Affairsgovernment of india the provisions of section 197 of the companies Act 2013 are notapplicable to government companies. As such the disclosures to be made in the Board'sreport in respect of overall maximum managerial remuneration and managerial remunerationin case of absence or inadequacy of profits are not included in this Report.

Initiatives for Socio-economic Development of SCs /STs & otherWeaker Sections of the Society

SAiL plants and units including Mines are situated in economicallybackward regions of the country with predominant Sc/St population. Your company has madecommendable contribution to the overall development of civic medical educational andother facilities in these regions. Some of the contributions are:

• establishment of SAiL Steel plants in economically backwardareas has given a fillip to the economic activities thus benefiting the population inthe peripheral areas with different types of services. Steel townships developed by SAiLhave the best of medical education and civic facilities and are like an oasis for thelocal Scheduled castes Scheduled tribes and other population who share the benefits ofprosperity and development along with SAiL employees.

• recruitment of non-executive employees is carried out mainly onregional level and hence a large number of Scs/Sts and other weaker section of thesociety get the benefit of employment in SAiL.

• over the years a large group of ancillary industries have alsodeveloped in the vicinity of Steel plants. this has created opportunities for localunemployed persons for jobs and development of entrepreneurship.

• for jobs of temporary & intermittent nature generallycontractors are engaged for executing job contracts wherein they deploy workmen from thelocal areas which again provides an opportunity for employment of local candidates fromeconomically weaker section.

Your company has undertaken several initiatives for the socio-economicdevelopment of Scs/STs and other weaker sections of the society which are mainly as under:

• Special Schools have been started exclusively for poorunderprivileged children at five integrated Steel plant locations. the facilities providedinclude free education mid-day meals uniforms including shoes text books stationeryitems school bags water bottles and transportation in some cases.

• No tuition fee is charged from Sc/ST students studying in thecompany run schools whether they are SAiL employees' wards or non-employees' wards.

• free medical health centres for poor have been set up at Bhilaidurgapur rourkela Bokaro and Burnpur (gutgutpara) providing free medical consultationmedicines etc. to the peripheral population mainly comprising of Sc/ST and weakersections of society.

• SAiL plants have adopted tribal children. they are beingprovided free education uniforms text books stationery meals boarding lodging andmedical facilities for their overall growth at residential hostels Saranda SuvanChhatravas Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana for the nearly extinctBirhor Tribe.

• For Skill Development and better employability tribal schoolpassouts have been sponsored for coaching in premier institutes for IIT/JEE entranceexaminations and for trainings along with monthly stipend accommodation transportationand food facility at various ITIs Nursing and other vocational training institutes.

Implementation of Presidential Directives on Reservation for SC/ST/OBCetc.

• Your company follows presidential directives on Reservation forScheduled castes and Scheduled tribes in the matter of recruitments and promotions. As on31st March 2022 out of total manpower of 62181 10408 belong to Scs (16.73%)9678 belong to STs (15.56%).

• Liaison officers have been appointed as per presidentialdirectives for due compliance of the orders and instructions pertaining to reservation forScs/STs/oBcs at plants/units of Sail.

• Sc/ST/obc cell is functioning in all the main plants/units. Amember belonging to Sc/ST community is associated in all departmental promotion committees(Dpcs)/ Selection committees. A sufficiently senior level officer of Sc/ST category isnominated for the purpose as per the level of the recruitment Board /Selection committees/Dpc.

• out of the total manpower of 62181 number of oBc is 9692 whichis 15.58% of the manpower. Liaison officers have been appointed for due compliance oforders and instructions pertaining to reservation for oBc at plants/ units.

• Internal workshops are conducted at regular intervals through anexternal expert for Liaison officers for Sc/ ST/oBc and other dealing officers of SAILplants/units to keep them updated on the reservation policy for Sc/ST/ oBcs and otherrelated matters.

• plants/units of SAIL have Sc/ST Employees' Welfare Associationswhich conduct regular meetings with Liaison officers on implementation of reservationpolicy & other issues. In addition an Apex level umbrella body namely SAIL Sc/STEmployees federation also exists in SAIL to represent the issues of Sc/ST Employees in acoordinated manner.

Implementation of right to information Act 2005

The provisions under the right to Information Act 2005(Act) are beingcomplied by all the plants and units of SAIL. All statutory reports including Annualreport are being sent to Ministry of Steel and also being uploaded on the website of thecompany-www.sail.co.in. Your company has appointed public Informationofficers(pio)/Assistant. public Information officers and Appellate Authorities andTransparency officer in each plant and unit under Sections 5 and 19(1) of the Act forspeedy redressal of the queries received under the Act. under Section 5(5) all theofficers/ line managers responsible for providing information to the pio are called Deemedpio and are made equally responsible as pio towards timely submission of information tothe applicant.

An exclusive RTI portal has been developed with link available on thewebsite of the company. All the plants/units have listed 17 manuals and details ofAuthorities under the Act are uploaded on the website of the company. Quarterly returnsand Annual returns on implementation of the Act are being submitted online through the cicportal. Implementation of online request has already been introduced from 1stMay 2015. A compilation of record retention policy of various functions of corporateoffice has also been uploaded on the website of the company.

Awareness programs/Workshops on 'obligation of public Authorities underRTI' have been organised across plants/ units and Information commissioner has beenpresent in most of these programs. Further awareness programmes on the RTI Act are alsoheld at plants & units.

SAIL received a total of 3153 applications and 483 appeals under theAct during the Financial Year 2021-22 and all of them have been disposed of within thestipulated time frame under the Act. cic has also taken up 100 cases and most of thesecases were disposed-off in favour of the company.

Since enactment of the Act SAIL has received a total of 50020applications and 7588 appeals upto 31st March 2022 which were disposed ofwithin the stipulated time. out of these 1040 cases were taken up by the cic and most ofthese cases were disposed-off in favour of the company.

Citizen Charter

Your company is totally committed to excellence in public servicedelivery through good governance by a laid down process of identifying citizens ourcommitment to them in meeting their expectations and our communication to them of our keypolicies in order to make the service delivery process more effective.

SAIL's citizen charter has outlined commitment of SAIL towards itsstakeholders thereby empowering them to demand better products and services. objectivesof the citizen's charter of SAIL may be summarized as below:

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

• Ensuring effective citizen communication channels.

• Demonstrating transparency and openness of its businessoperations by hosting the citizen's charter on the corporate website.

• Working towards the delight of citizens by fail-safe processesand in case of exigencies leveraging its service recovery processes like GrievanceRedressal Handling complaints etc.

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

Your company has set up internal complaints committees in line with therequirement of the Sexual harassment of Women at the Workplace (prevention prohibitionand redressal) Act 2013. These committees have been set up to redress complaints if anyreceived regarding sexual harassment. An employees of the company are covered under theserules. The details of sexual harassment complaints received and disposed of during theyear 2021-22 are as under:

Particulars No. of Complaints
Number of complaints pending as on 1st April 2021 2
Number of complaints received in 2021-22 3
Number of complaints disposed of during 2021-22 4
Number of complaints pending as on 31st March 2022 1

D. AWARDS & ACCOLADES WON DURING THE YEAR

Your company has won the following awards during the

Financial Year 2021-22:

• 6 prime Minister's Shram awards (involving 31 employees) for theyear 2018.

• 11 Vishwakarma rashtriya puraskar (involving 52 employees) forthe performance Year 2018.

• prestigious Golden peacock Environment Management award for theyear 2021 in the Steel Sector by the institute of Directors.

• rourkela Steel plant bagged the energy conservation award in theeastern region ENcoN award 2021 in the competition held by the confederation of indianindustry (cii) on 5th November 2021.

• Kiriburu iron ore Mines(KioM) and Meghataburu iron ore Mines(MioM) under the Jharkhand group of Mines of Sail Bokaro Steel plant received 5-starrated awards for sustainable Mining practices and all round performance in the iron orecategory at the 5th National conclave on Mines & Minerals. KIoM was awardedfor the year 201718 & 2018-19 and MioM for the year 2018-19 and 201920. the award wasreceived by chairman SAIL from union Minister of coal Mines and parliamentary Affairs ina award ceremony held in New delhi on 23rd November 2021.

• SAIL was placed 3rd in the Best industry category of3rd National Water Awards organised by the Ministry of Jal Shakti departmentof Water resources river development and ganga rejuvenation in January 2022.

• SAIL achieved third place in the 17th National Awardsfor excellence in cost Management 2019 in the Manufacturing category-public havingturnover more than '10000 crore.

E. ENVIRONMENT MANAGEMENT

Within the ambit of notified environmental standards applicable foremission and discharge of pollutants into the environment and rules pertaining toeco-friendly management of various wastes being generated inside the plant premises aswell as in the townships SAIL plants and Mines operate their processes without disturbingthe ecological balance but at the same time preserving the same. Your company has alsodrawn its environmental vision in consonance with the corporate environmental policywhich not only addresses the need for compliance of prescribed norms but also emphasiseson striving to go beyond. Besides your company is committed to address the stakeholders'concerns and communicate its environmental philosophy to all the stake holders. thecorporate 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 controldevices/facilities and maintaining regularly through revamping/refurbishing/revitalizationand also up-grading them as and when required for the purpose of complying with theapplicable environmental standards which are becoming more and more stringent day by day.concerted efforts have resulted in achieving major improvements during the FY 2021-22 overthe last five years in the following areas:

• the particulate Matter (pM) emission Load has reduced by morethan 20% to 0.59 kg/tcs.

• Specific Water consumption has reduced by more than 14 % to 3.12m3/tcs.

• Specific effluent discharge has reduced by more than 24 % to1.35 m3/tss.

• Specific effluent Load has reduced by around 23 % to 0.062kg/tcs.

• utilisation of BF Slag has increased by more than 13% to102.01%.

• BoF Slag utilisation increased by more than 15% to 68.83%

• Specific co2 emission has been reduced by more than2% to 2.51 t/tcs.

• total Solid Waste utilisation has increased by more than 14% to94.66%

Adoption of Energy-Efficient Technologies and State-of- the-ArtPollution Control Equipment/Facilities

Your company has implemented latest state-of-the-art clean technologiesand best available and feasible pollution control facilities in the course of itsModernization and Expansion Plan and thereafter in its drive for adoption of cleanertechnologies. Some of the major clean technologies are as under:

• Tall coke oven Batteries along with coke Dry cooling plant Landbased pushing emission control System computerised combustion control System etc. atBSp RSp and ISR

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

• Blast Furnace of higher capacity equipped with Top pressureRecovery Turbine Waste Heat Recovery facility pulverised coal Injection and cast HouseDe-dusting System at BSP RSP and ISP.

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

• Progressively switching over to cast House Slag GranulationPlant from offsite slag granulation facility.

• Phasing out of energy-intensive ingot route with continuouscasting.

• Walking Beam Reheating Furnace (RHF) in place of pusher type RHFat the Rolling Mill in reducing energy consumption as well as cO2 emission.

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

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

• 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 incase of older converters.

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

New initiatives

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

Bhilai Steel Plant in partnership with the MoEF&cc and UNIDO hasinitiated a project for setting up a disposal facility for Polychlorinated Biphenyls(PcBs) categorized as Persistent organic Pollutants (PoPs) at its site. The project is atfinal lap of completion. On commissioning the project will systematically dispose of thePcB wastes accumulated over the years not only in SAIL Plants but also in other industrialestablishments across the country. This unique facility will help the nation in fulfillingits international commitment.

b. Enhancing utilization of wastes through application of 4R's(Reduction Reuse Recycling and Recovery):

Your company is committed to reduce solid waste generation and maximiseits utilisation to achieve 100% and has adopted the "4R's Policy" (ReduceRecover Recycle and Reuse) across all its processes. With a view to enhance utilisationof BOF Slag a R&D project proposal on "Development of Steel Slag based costeffective eco-friendly fertilizers for sustainable agriculture and inclusive growth"has been taken up through iCAR-indian Agricultural Research institute under the guidanceof the Ministry of Steel. The project will ensure symbiotic growth of steel industry andagriculture.

c. Environment friendly domestic waste processing facility

As a green initiative and in compliance with the "Solid WasteManagement (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. Theintegrated facility has separate systems for segregation of wastes converting green wasteinto manure and turning plastic waste into useful by-products and can handle 50 Tonne ofwaste every day.

d. Water Conservation Project for Outlet# B&C of BSP

With a view to minimise water consumption as well as to conserve waterresource across the plants actions have been/are being taken up to achieve the long-termgoal of "Zero Liquid Discharge" through treatment and recycling of effluentbeing discharged through the outfalls at the Plant boundary. in this regard waste watertreatment and recycling facilities at the outlet B&C of BSP have been installed duringthe financial year 2021-22 as a result of which around 8250 m3/hr. ofeffluent after treatment is re-circulated and reused at BSP.

e. Secondary emission Control System (DoG House) with the Converters ofSMS installed at DSP

Secondary Emission Control Systems (DOG Houses) with all the three BOFconverters have been set up at Durgapur Steel Plant to control the fugitive emission inand around the shop thereby improving working environment significantly.

f. Switching over to Led illuminating System

Your Company is gradually shifting to more energy-efficient and durableLED lighting system from conventional lighting system in consonance with the Government ofindia's initiative "Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme" inthis respect more than 1.75 lakh LED lights have already been installed all across thePlants and Units of the Company.

Environmental Management System (EMS) linked with iSo-14001

Environmental Management System (EMS) linked to iSO 14001 is a set ofprocesses and practices that enable an organization to reduce its environmental impactsand increase its operating efficiency. implementation of EMS has helped SAiL's Plants andMines to ensure performance within the applicable regulatory requirements.

The EMS (iSO-14001) was implemented at all the Plants and the Companyis striving to cover all the Mines under its purview to further its commitment towardsenvironment. in the recent years Barsua iron Ore Mine Gua Ores Mine Kiruburu andMeghahatuburu iron Ore Mines Bolani iron Ore Mine Manoharpur iron Ore Mine Dalli ironMine and thirteen warehouses (Ahmedabad Hyderabad Ghaziabad Faridabad Vizag ChennaiMumbai Delhi Durgapur Dankuni Bokaro Bangalore and Kanpur) of CMO have also been iSO14001 Certified.

Sustainable Development/Eco-restoration Projects

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

• An MOU has been signed in January 2021 with institute of ForestProductivity Ranchi for eco-restoration of mined out area and waste dumps separately forKiriburu iron Ore Mines and Meghahatuburu iron Ore Mines.

• At Durgapur Steel Plant around 400 acres of land has beentransformed into the bio-diversity park named 'Vasundhara' with development of flora andfauna of local species and water body.

Application of Renewable Energy towards a new era

Your Company has implemented many schemes for promotion of renewableenergy in its Plants Mines and peripheral villages/areas. The following solar powerprojects have already been implemented in recent years:

• 1 MW ground mounted Solar Power Plant connected with electricalgrid system of the State Electricity Board at RSP.

• 2 MW grid connected roof top solar power units on variousbuildings of BSL.

• 0.5 MW roof top solar power units on various buildings of BSP.

Besides some of the major initiatives undertaken towardsimplementation of renewable energy projects include setting up of (i)10 MW Hydel PowerPlant at Mandira Dam RSP under a Joint Venture initiative with Green Energy DevelopmentCorporation of Odisha Limited (GEDCOL) and

(ii) 6.145 MW roof top Solar Units on different buildings at thevarious Plants/Units locations under Ministry of New and Renewable Energy (MNRE) Schemeout of which 2.045 MW roof top Solar power units have already been installed on variousbuildings of SAIL plants & units.

Plantation

Your company realizes the role of plantation in overall environmentalmanagement initiatives. it is a well-known fact that plants play an important role inbalancing the ecosystem and function as a carbon sink. Such plantations are established tofoster native species and promote forest regeneration on degraded lands as a tool ofenvironmental restoration. The greenery developed by afforestation adds to the aestheticenvironment 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 adoptingextensive afforestation program religiously in its plants and Mines since its nascentstage. Giving special thrust for plantation more than 3.6 lakhs of saplings have beenplanted during 2021-22. More than 21.5 million saplings have been planted across SAiLplants and Mines till date.

F. STRATEGIC INITIATIVES OF THE COMPANY

Your company has adopted a multi-pronged approach that includes organicgrowth brown-field projects technology leadership through strategic alliances ensuringraw material security by developing new mines diversifying in allied areas etc. in linewith the above approach SAiL has formed Joint Venture companies in different areas viz.power generation rail wagon manufacturing slag cement production securing coking coalsupplies from new overseas sources etc.

• Closure/Exit from non-operational and nonperforming JointVenture Companies and Subsidiary Companies of Sail:

During the FY 2021-22 SAiL exited from two of the Joint Ventures viz.Abhinav-SAiL JVc and S&T Mining Ltd.

• Disinvestment of SAIL Plants: the cabinet committee on economicAffairs (ccEA) in its meeting held on 27th october 2016 had accorded 'inprinciple' approval for strategic disinvestment of three units of Steel Authority of indiaLimited (SAiL) viz. Visveswaraya iron & Steel plant (VISp) Bhadravati KarnatakaSalem Steel plant (SSp) Tamil Nadu and Alloy Steels plant (ASp) Durgapur West Bengal.

EOi bids were opened on 10th September 2020 and theeligible bidders have been shortlisted. The confidential information Memorandum (ciM)Request for proposal (RFp) and Business Transfer Agreement (BTA) have been issued to theshortlisted bidders. The disinvestment is under process.

Business Excellence Initiatives Implementation of Management Systems

Most of SAiL plants/Units are certified to iSO 9000 iSO 14000 OHSAS18000/iSO 45000 SA 8000 iSO 50000 and iSO 27000 Management Systems. Further Empanelmentof certification Agencies for the third cycle i.e. 2020-2023 was completed in March 2020for certification to six Management Systems i.e. iSO 9000 iSO 14000 OHSAS 18000/iSO45000 SA 8000 iSO 27000 and iSO 50000 and related training. Due to the ongoing covid-19pandemic remote external/internal audits as well as on-site audits at some places wereconducted for easy transition of existing certifications and maintaining all theManagement Systems as per the requirements of the standards.

Information Technology related Initiative

In today's world of dynamic business environment your company hasembarked on the Digital Transformation journey by adopting industry 4.0 which istransforming companies through data-led intelligent operations. Digital Transformationbesides aiding in quick decision making reducing the downtime of the equipment helpingin taking preventive actions it also assists in creating a smart factory for enhancingproductivity and reduce operational cost and strengthen its business processes. Some ofthe initiatives accomplished during FY 2021-22 are given below:

• iT Roadmap has been formulated outlining iT vision for theOrganisation.

• integration of despatch of Liquid Medical Oxygen from therespective plant with Oxygen Digital Tracking System (ODTS) portal of the centralGovernment facilitating the online tracking of oxygen tankers during the cOViD19pandemic.

• To enhance customer satisfaction customer Order Tracking Systemand customer Self Service portal have been implemented which includes registration ofcomplaints customer Satisfaction index (cSi) and printing of invoices and testcertificates.

• Your company successfully implemented the Online system forfacilitating the transfer of pension Funds of on-roll employees to the National pensionScheme (NpS).

• As a step towards transparency corporate complaint Monitoringportal for Vigilance (SuViDHA) has been implemented across the company.

• To take business automation ahead Unmanned WeighbridgeAutomated Vehicle Entry/Exit System and Vehicle Tracking System at warehouse andgeneration of predictive NSR based on Marketing Tools have been implemented at centralMarketing Organisation (cMO).

• in continuance of business automation Manufacturing ExecutionSystem (MES) system has been implemented in Bhilai Steel plant (BSp) which has improvedquality increased productivity and reduced operational maintenance and achieved Level 2Automation in the key shops.

• Technology is changing by leaps and bounds with the growth ofmobile applications and digitization. in this regard Real Time monitoring of cost ofproduction has been made available with the implementation of the costing Module ofSAp-ERp. Further it also assists in adopting measures to reduce and optimise the cost.

• System Integration between ERP and M/s. mjunction serviceslimited (auction platform) for transferring Auction details from SAiL plants and receivingsuccessful Bidder details from M/s. mjunction services limited has been successfullycompleted.

• To reduce physical movement of persons and documents and fasterissue of the Gate passes with transparency and control Work-flow based Digital permanentgate pass system for contractual labourers has been implemented successfully.

• As a one stop It solution for estate Management Billing realestate Flexible Management Module has been introduced.

• Implementation of System for online Safety Survey and trackingof critical spares.

Corporate Communication

With the constantly evolving business paradigm especially in the postcoVID19 pandemic era disruptive changes in quick succession have become new normal. Thedynamic circumstances necessitate increased and effective communication by the businessorganisations to reach out to their stakeholders and target audiences quickly andefficaciously. AIso today the ways and means of communication have undergone sea change.In such a situation the role of corporate communications has assumed greater significanceto maintain an unhindered flow of company's communication and information to itsstakeholders while delivering the desired message to its target audiences throughdifferent channels. The corporate communications also help businesses to promote theculture of creativity and innovation business excellence better employee engagement andgrowth within the company and to create a positive brand image and connect with theexternal stakeholders.

The role of corporate communications at Sail has been evolving intandem with the emergent requirements and growth trajectory of the company. The companyfocused on creating a vibrant and active connect amongst employees and enhancing the brandimage of SAiL through external communication drives. during the year 2021-22 variouscommunication drives were undertaken to ensure better engagement with the stakeholders andtarget audiences of the company. New age mediums were leveraged to connect with thestakeholders on a continuous basis. Throughout the year 2021-22 the company'sdevelopments and achievements were regularly circulated across the organization as well asto the external stakeholders by optimally utilising all communications channels.

The external communication drives were efficiently carried oututilizing a media mix of company's social media handles digital media conventional medialike print and electronic which aided in creating a further robust image of SAiL. Theinternal communication drives aiming at improving collaboration and synergy in theorganization were successful in achieving larger and better connect across the employeesin the company.

Internal Communication

There is an opportunity in every challenge. As SAiL manoeuvred robustlythrough the coVID19 pandemic internal communication in the company underwent a dynamictransformation wherein both online and physical forms of interactions were carried outthroughout the company. Large scale online interactions with active participation from alllevels of management were implemented creating a platform for sharing best practices andsolutions. The award winning in-house journal 'SAiL News' has been redesigned and revampedalong with regular production of the company's audio-visual news capsule 'SAiL TrackRsinnovative steel promotional videos and other related videos entirely developed andproduced utilizing in-house resources were circulated on various internal platforms whichhave helped employees remain updated with the Steel/company related developments. in ameasure to ensure larger employee engagement and connect with all the piants/Units of thecompany spread over length and breadth of the country at one go 'SAiL Gaurav Diwas' on 24thJanuary 2022 commemorating SAiL's Foundation Day was also conducted consecutively forthe second time through online mode.

External Communications

Your company maintains a transparent channel with its externalstakeholders and the issuance of regular and timely press releases and media informationis a testimony of that commitment. Seizing the strength and reach of new age media SAiLhas extensively utilized its various social media handles to regularly promote theachievements and post updates about various developments taking place in the company. Thefollowership of SAiL's social media handles have organically increased exponentially alongwith substantial increase in the engagement. As a responsible stakeholder of the steelindustry your company has taken various unique initiatives including campaigns on 'Switchto Steel' and promoting Steel usage. These are given regular publicity through its socialmedia and print media. News and information about SAiL has remained available on digitalmedia extensively throughout the year 2021-22. The SAiL's website which is a repertoireof reliable information about the organization has been regularly updated to providelatest information at the click of one button. The website's viewership has also seen avery good growth during 202122. Branding activities have been curated to promote the brand'SAiLRs in innovative and effective ways. Through a collaborative approach the strengthof 'The Bureau of Outreach & communications' (erstwhile DAVp) services have beenextensively explored for better and cost effective means for undertaking brandingactivities whenever possible.

Promoting Government initiatives

Your company has been one of the most active participants incelebrating and promoting 'Azadi Ka Amrit Mahotsav'

(AKAM). Focusing on widely popularizing #AKAM to as many as possibleSail is publicizing the AKAM campaign through various programs and mediums. The company isextensively reaching out to its stakeholders across its plants and units to connect withpeople for broader citizens' participation and converting AkAM into a 'Janandolan'.

The other initiatives including Aatmanirbhar Bharat Swachh BahratYoga Day Water conservation etc. have also been regularly promoted through variouscommunication drives across the Organisation.

Promoting brand SAIL and steel at large have remained the focus ofcorporate communications team of SAIL. The synchronized working of all communicationsteams across SAIL helped in creating stronger communication campaigns for theOrganization. Creating improved employee experiences and stakeholders' engagement can beachieved through sustained communication drives and these remain the focus area of thecommunications team of SAIL.

G. VIGILANCE ACTiViTiES

The objective of SAIL Vigilance is to facilitate an environmentenabling people to work with integrity efficiency and in a transparent manner upholdinghighest ethical standards for the organization. To achieve this objective the VigilanceDepartment carries out preventive proactive and punitive actions with greater emphasis inthe preventive and proactive functions. Following activities were undertaken during theFinancial Year 2021-22:

• To increase vigilance awareness amongst employees vigilanceawareness sessions and workshops were regularly held at various Plants and Units of theCompany. A total of 102 workshops involving 1686 participants were organized for enhancingVigilance Awareness on Whistle Blower Policy Purchase/Contract Procedures PreventiveVigilance Conduct & Discipline Rules Common Irregularities System and Procedurefollowed in SAIL etc. Amongst these training programmes forty five dedicated two dayPreventive Vigilance training programs were organised during 2021-22 wherein a total of829 mid-level executives and 160 fresh entrants of SAIL have been covered.

• Preventive Checks including file scrutiny and Joint Checks wereconducted regularly in vulnerable areas of the Company. A total of 2282 preventive checksincluding file scrutiny and Joint Checks were conducted at different Plants/ Units.

• Vigilance provides vital inputs to the operating authorities forimproving the prevailing systems for bringing about more transparency. Accordinglythirteen System Improvement Projects (SIPs) were undertaken at different Plants/Units ofSAIL.

• 14 cases were taken up for Intensive Examination at differentPlants/Units. During these Intensive Examinations high value procurement/contracts arescrutinized comprehensively and necessary recommendations were forwarded to concerneddepartments for implementation.

• As per the Guidelines of Central Vigilance Commission VigilanceAwareness Week was observed in SAIL during 26th October to 1stNovember 2021. The week started with administering the Integrity Pledge and reading outthe messages of dignitaries on 26th October 2021 at SAIL Corporate Office aswell as in all Plants/Units of SAIL. During the week Workshops/ Sensitization ProgrammesCustomers Meet etc. were organised. Further events like quiz essay slogan &drawing/ poster debate competition were organized for the employees and their familiesacross SAIL. As outreach measures various events like Speech/Oratory competitionEssay/Slogan competition etc. were organized for School/ College Students across varioustownships of SAIL.

• In an another Participative Vigilance initiative taken upEthics Club and Ethics Circle activities were undertaken in different Plants/Units duringthe FY 2021-22. In order to propagate ethical behavior in the society at large EthicsClubs have been formed in the schools of SAIL Townships with the belief that it isessential to create a strong ethical and moral foundation for children to facilitateformation of an ethically sustainable society. During 2021-22 Ethics Clubs of variousSchools engaged their students named as 'Young Champions of Ethics' in propagating Ethics/ Ethical Values through various programmes / competitions such as Expert talks SpeechesSongs Dance Videos Drawings etc. Further Ethics Circle of Salem Steel Plant alsoreleased a booklet on the theme 'Inculcating Ethical Values' for building a strong ethicalculture amongst employees with focus being on Integrity Responsibility HonestyTransparency Team-work Loyalty etc.

• It has also been decided to implement the AntiBribery ManagementSystem (ABMS) in SAIL as per ISO 37001:2016. The Board of Directors has approved the AntiBribery Management Policy (Vision Statement) and the 1st Phase is beingimplemented in Corporate Office and Bokaro Steel Plant.

• To bring uniformity and clarity regarding acceptable modes oflodging complaints and processing of the same a Complaint Handling Policy for SAILVigilance has been implemented from 1st January 2022. The Policy seeks toensure that complaints about corruption malpractice or misconduct by officials of SAILare received recorded and acted upon in a manner consistent with the Complaint HandlingPolicy of CVC.

• The following three thrust areas were identified by SAILVigilance:

(i) Scrutiny of procurement files within approving powers delegated tocGM & below level executives with special thrust on powers delegated to dealingofficers.

(ii) Scrutiny of cases of final settlement of dues after superannuationas per extant guidelines / statutory provisions with special emphasis on adherence toprescribed timelines.

(iii) Scrutiny of Repeat orders and related quantity variation fororders valuing ' 50.00 lakh and more.

• 'inspiration-prerna' an in-house publication of Sail Vigilanceis being published regularly. The above publication contains case studies and informativearticles to enhance awareness of the readers.

• As on 1st April 2021 a total of 75 complaints werepending and the closing balance as on 31st March 2022 was 69. The summary ofdisposal of complaints during 2021-22 is as under:

Complaints Disposed:

Particulars Complaints
Closed as found anonymous / pseudonymous (filed in line with CVC Guidelines) 172
Closed as no vigilance angle/allegations not substantiated 219
Referred to other departments 165
Closed with preventive/administrative recommendations 98
Regular Departmental Actions (RDAs) initiated (Include 6 cases of Major Penalty against 8 employees and 10 cases of Minor Penalty against 18 employees) 16
Total Disposed 670

Vigil Mechanism

The Company has adopted Vigil Mechanism for conducting the affairs in afair and transparent manner by adopting highest standards of professionalism honestyintegrity and ethical behaviour. All employees of the Company and directors on the Boardof the Company are covered under this Mechanism. This Mechanism has been established foremployees to report concerns about unethical behaviour actual or suspected fraud orviolation of Code of Conduct. it also provides for adequate safeguards against thevictimization of employees who avail the Mechanism and allows direct access to theChairperson of the Audit Committee in exceptional cases. One complaint was received duringthe Financial Year 2021-22 and action has been taken thereon.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 Management Discussion and Analysis Report covering the performance andoutlook 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 Statementsof the Company for the Financial Year ended 31st March 2022 along withManagement's replies thereon is placed at Annexure-i to this Report. The comments ofComptroller & Auditor General of india (C&AG) on the Standalone FinancialStatements of the Company for the Financial Year ended 31st March 2022 underSection 143(6) (b) of the Companies Act 2013 and the Management's replies thereon areplaced at Annexure-ii to this Report.

COST AUDITORS

The Company is required to maintain cost accounting records at itsvarious Steel Plants as required under the provisions of Section 148 of the Companies Act2013. The Board of Directors of the Company on the recommendation of the Audit Committeeappointed M/s. Chandra Wadhwa & Co. New Delhi; M/s. ABK & Associates Mumbai; andM/s. R.M. Bansal & Co. Kanpur as Cost Auditors for the Financial Year 2021-22. TheBoard had fixed a fee of '12.12 lakhs plus applicable taxes and reimbursement of out ofpocket expenses for conducting the audit of cost records maintained by the Company for theFinancial Year 2021-22 which was ratified by the shareholders in the last Annual GeneralMeeting.

SECRETARIAL AUDITOR'S REPORT

In terms of the provisions of Section 204 of the Companies Act 2013the Board of Directors has appointed M/s. Agarwal S. & Associates CompanySecretaries as the Secretarial Auditor to conduct Secretarial Audit of the Company forthe FY ended on 31st March 2022. Secretarial Audit Report is placed atAnnexure-iii to this Report.

With regard to the observation of the Secretarial Auditor thatcomposition of the Board of Directors of the Company was not as per requirements duringthe FY 2021-22 it is stated that appointment of Independent Directors on the Board of theCompany is made by the Company based on nomination by Government of India. The Company hasrequested Ministry of Steel Government of India for nomination of requisite number ofIndependent Directors including Woman Independent Director on its Board. Consequentlyfive Independent Directors including one Woman Independent Woman Director have beenappointed on Board of the Company during November 2021 and one more Independent Directorhas been appointed in April 2022.

In respect of observation regarding performance evaluation of theDirectors not being carried out pursuant to the Regulation 17(10) and 25(4) of SecuritiesExchange Board of India (Listing obligations and Disclosure Requirements) Regulations2015 it is mentioned that Ministry of Corporate Affairs has vide its Notification dated 5thJune 2015 notified the exemptions to Government Companies from the provisions of theCompanies Act 2013 which inter-alia provides that Sub Sections (2) (3) & (4) ofSection 178 regarding appointment performance evaluation and remuneration shall not apply

To Directors of the Government Companies. Further the Ministry ofCorporate Affairs vide Notification dated 5th July 2017 has notified certainamendments in Schedule IV of the companies act 2013 relating to code for independentDirectors. As per the Notification in Schedule IV the clauses relating to evaluation ofperformance of non-independent Directors chairperson and Board have been exempted forGovernment companies.

CORPORATE GOVERNANCE

In terms of SEBi (Listing obligations and disclosure Requirements)Regulations 2015 the corporate governance Report and auditors' certificate on complianceof 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 ofconduct for all Board Members and Senior Management of the company. The code of conducthas been uploaded on the website of the company. An the Board Members and SeniorManagement personnel have affirmed compliance with the code.

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

In terms of the SEBi (Listing obligations and disclosure requirements)regulations 2015 the Business responsibility & Sustainability report describing theinitiatives taken by the company from Environmental Social and governance perspectiveforms part of this annual report and is placed at Annexure-V.

SUBSIDIARIES JOINT VENTURES AND ASSOCIATES

IISco-ujjain pipe and foundry company Limited a wholly ownedsubsidiary of the erstwhile indian iron and Steel company Limited (iiSco) was ordered tobe wound up by BIFR. the official Liquidator is continuing its liquidation process.

Your company has four subsidiary companies namely Sail refractorycompany Limited (SRcL) SAiL Jagdishpur power plant Limited SAiL Sindri projects Limitedand chhattisgarh Mega Steel Limited.

SRcL is operating the Salem Refractory unit which was acquired by SAiLfrom Burn Standard company Limited on 16th december 2011. SAiL Jagdishpurpower plant Limited incorporated for setting up of gas based power plant at Jagdishpurand SAiL Sindri projects Limited incorporated for revival of Sindri unit of fertilizercorporation of india Limited have not taken off. SAiL Jagdishpur power plant Limited andSAiL Sindri projects Limited have been Struck-off from the Register of companies.

Chhattisgarh Mega Steel Limited was incorporated as a Special purposeVehicle with an objective of setting up of an ultra Mega Steel project. the project hasnot taken off.

The Annual Accounts of the Subsidiary companies and related detailedinformation shall be made available to the Shareholders of the holding and subsidiarycompanies seeking such information at any point of time. further the

Annual Accounts of the subsidiary companies are available forinspection by any Shareholder at the Registered office of the company and the Subsidiarycompanies concerned between 11 AM to 1 pm on working days. A hard copy of the details ofaccounts of subsidiaries shall be furnished to the shareholders on receipt of writtenrequest.

CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to provisions of Section 129(3) of the companies Act 2013the duly Audited consolidated financial Statements of the company for the financial Yearended 31st March 2022 are placed at Annexure-VI to this Report.

AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

The Statutory Auditors' Report on the consolidated financial Statementsalong with the Management's replies thereon is placed at Annexure-VII to this Report. thecomments of comptroller & Auditor general of india (c&AG) on the consolidatedfinancial Statements of the company for the financial Year ended 31st March2022 under Section 143(6) (b) read with Section 129(4) of the companies Act 2013 andManagement's replies thereon are placed at Annexure-VIII to this Report. further thestatement containing salient features of the financial statements of the Subsidiary JointVenture and Associate companies in the prescribed form Aoc-1 is placed at Annexure-IX tothis Report.

ANNUAL RETURN

As per the provisions of the companies Act 2013 the Annual Return forFY 2021-22 is available at https://www. sail.co.in/sites/default/files/2022-09/SAiL DraftANNuAL RETuRN 2021 22.pdf.

BOARD MEETINGS

During the year 9 meetings of the Board of directors of the companywere held the details of which are given in the corporate governance Report atAnnexure-IV forming part of this Annual Report.

AUDIT COMMITTEE

The Audit committee of the Board was initially formed by the company in1998. The Audit committee has been reconstituted from time to time in terms of the SEBiRegulations and companies Act 1956/2013. The minutes of the Audit committee meetings arecirculated to the Board discussed and taken note of. The composition and other detailspertaining to the Audit committee are given in the corporate governance Report atAnnexure-IV.

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

The company has well established and documented policies andprocedures which are adhered to for transparent efficient and ethical conduct ofbusiness and for safeguarding its assets prevention and detection of frauds and errorsaccuracy and completeness of the accounting records and timely preparation of financialdisclosures. Further the company has a good corporate governance structure and strongmanagement processes controls policies and guidelines which drives the organizationtowards its business objective and also meets the needs of various stakeholders.

Your company's robust protocols such as independent internal auditdocumented policies guidelines procedures regular review by Audit committee / Boardetc. helps in compliance of internal Financial controls under the companies act 2013SEBi (LoDR) Regulations 2015 etc. The company is committed to the highest standards ofcorporate Governance where the Board is accountable to all stakeholders for reportingeffectiveness of internal financial control (IFc) and its adequacy. corporate governancehas 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) thedirectors state that:

(i) in the preparation of the annual accounts the applicableaccounting Standards have been followed along with proper explanation relating to materialdepartures;

(ii) the directors have selected such accounting policies and appliedthem consistently and made judgments and estimates that are reasonable and prudent so asto give a true and fair view of the state of affairs of the company at the end of thefinancial Year and of the profit or loss of the company for that period;

(iii) the directors have taken proper and sufficient care for themaintenance of adequate accounting records in accordance with the provisions of the actfor safeguarding the assets of the company and for preventing and detecting fraud andother irregularities;

(iv) the directors have prepared the annual accounts on a going-concernbasis;

(v) the directors have laid down internal financial control to befollowed by the company and that such internal financial controls are adequate and areoperating effectively; and

(vi) the directors have devised proper systems to ensure compliancewith the provisions of all applicable laws and that such systems are adequate andoperating effectively.

INDEPENDENT DIRECTORS' DECLARATION

In terms of Section 149(6) of the companies act 2013 necessarydeclaration has been given by each independent director stating that he/she meets thecriteria of independence. in terms of Section 149(7) of the companies act 2013independent directors of the company have undertaken requisite steps towards registrationof their names in the data bank of independent directors maintained with the Indianinstitute of corporate affairs.

In the opinion of the Board the independent director(s) appointedduring the year possess integrity necessary expertise and experience.

PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS UNDER SECTION 186

In terms of the provisions of Section 186 of the companies act 2013read with companies (Meetings of Board and its powers) rules 2014 the details of Loansguarantees and investments given during the fY ended on 31st March 2022 aregiven in Annexure-X to this report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERREDTO IN SUBSECTION (1) OF SECTION 188

AN the contracts / arrangements / transactions entered by the companyduring the financial Year 2021-22 with the related parties were in the ordinary course ofbusiness and on an arm's length basis. The transactions with the related parties have beendisclosed in the financial statements. therefore particulars of contracts or arrangementswith related parties referred to in Section 188(1) along with the justification forentering 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 anddisclosure requirements) regulations 2015 the Board of directors of the company hasadopted dividend distribution policy. the policy is uploaded on the website of the company- https://sail.co.in/sites/default/files/Pividend distribution policy 2017.pdf

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO

In accordance with the provisions of Section 134(3) (m) of thecompanies Act 2013 read with rule 8 of the companies(Accounts) rules 2014 theparticulars relating to conservation of Energy Technology Absorption and foreign ExchangeEarnings and Outgo are given in Annexure-XI to this report.

RISK MANAGEMENT POLICY

Enterprise risk Management (ERM) is a strategic business disciplinethat supports the organization's objectives by addressing its risks and managing theimpact of these risks. it is the practice of planning coordinating executing andhandling the activities of an organization in order to minimize the impact of risk oninvestment earnings and also strategic financial and operational risks.

The Enterprise risk Management policy of your company was approved bythe Board much before the same became a statutory requirement and since then riskmanagement in SAIL has grown and developed in line with internal and external business andeconomic changes. The policy provides guidance for the management towards business risksacross the organisation. it focuses on ensuring that the risks are identified evaluatedand mitigated within a given time frame on a regular basis.

Currently the architecture of Enterprise Risk Management in SAILcomprises a well-designed multi-layered organization structure with each plant/unithaving 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 logicalconclusion. 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 tochief risk officer (cro) of Sail. Sail risk Management committee (SRMc) oversees the riskManagement function in the company by addressing issues pertaining to the policyformulation as well as evaluation of risk management function to assess its continuingeffectiveness. Risks identified by the risk champion/risk officer are deliberated in theRisk Management committee and strategy for mitigating such risks is formulated. Roles andresponsibility of Board Audit committee SAIL Risk Management committee Risk ManagementSteering committee cRo Risk officer/Risk champion related to risk management are definedunder the policy and duly approved by the Board. The enterprise Risk Management policy ofyour company is uploaded on its website https://sail.co.in/companv/companv-policies.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

SAIL's Social objective is synonymous with corporate SocialResponsibility. Apart from the business of manufacturing steel the objective of yourcompany is to conduct business in ways that provide social environmental and economicbenefits to the communities in which it operates. For any organization cSR begins bybeing aware of the impact of its business on society. With the underlying philosophy and acredo to make a meaningful difference in people's lives your company has been structuringand implementing cSR initiatives right from the inception. These efforts have seen theerstwhile obscure villages where SAIL plants are located turn into large industrial hubstoday.

The cSR initiatives of your company have always been undertaken inconformity to the companies Act 2013 companies (corporate Social Responsibility policy)Rules 2014 companies (cSR policy) Amendment Rules 2021 and DpE Guidelines on cSR &Sustainability 2014. SAIL carries out cSR projects in and around periphery of steeltownships mines and far flung locations across the country in the areas of RuralDevelopment including maintenance of Model Steel Villages Education HealthcareImmunisation Ante/ post-natal care Access to Drinking Water Sanitation Road side treeplantation Environment Sustainability Women Empowerment Assistance to Sr. citizens& Divyangs Sustainable Income Generation through Self-Help Groups promotion of Artand culture etc.

The details of various cSR initiatives taken by the company along withthe Report on cSR in prescribed format are placed at Annexure Xii to this Report. The cSRpolicy of the company is available on the website of the company www.sail.co.in.

CSR INITIATIVES ON COVID19

The coronavirus (coVID19) pandemic has created an unprecedented crisisglobally. The nation posed the cumulative risk of coVID19 variants i.e. 'Delta' as well as'omicron' which mutated and spread rapidly causing exponential rise in coVID19 cases.Your company as a responsive corporate organization is committed to ensure the health andsafety of its facilities/premises employees at the plants/Units and all other personsworking at the sites. SAIL has activated a scaled response towards management of thepandemic at its plants Units Mines and Townships.

During FY 2021-22 your Company has contributed an amount of '50 croreto the prime Minister's citizen Assistance and Relief in Emergency Situations (pm cARES)Fund.

Sail has during the crucial time supplied over 1.3 lakh Metric Tonnesof Liquid Medical oxygen (LMo) to different States of the country in its endeavour topartner the Government of India in combatting coVID19 through railway oxygen Express.

SAIL plants have setup separate Jumbo coVID19 care facilities equippedwith gaseous oxygen through dedicated pipelines from the plants viz. 1444 bedded covidcare facilities in addition to ventilators and Icu beds.

In addition SAIL Hospitals manned by more than 900 qualified doctorsand 1500 para-medical staff to extend round the clock healthcare have earmarked 1000dedicated covid-19 beds with oxygen support and 129 Icu beds with ventilator support inview of surge in cases created 600 beds Quarantine facilities and developed covid-19testing facilities like Rat RTpcR TRu-NAT in coordination with the respective StateGovernments. Besides this arrangements have been made for touch-free hand-sanitizerswater dispensers spraying disinfectants using digital thermal recorders at prominentlocations ensuring continuous water supply in all the peripheral villages.

In order to support the vulnerable sections of society daily- wageearners/ labourers poor peasants and their families the SAIL plants and unitsdistributed dry ration packets Milk packets Milk powder Khichdi routine medicinesdaily cooked meals to patients and healthcare workers sanitary napkins for womenfacilitated stitching/distribution of face masks Aprons and Gloves etc.

Healthcare: Your company's extensive and specialised healthcareInfrastructure provided specialized and basic healthcare to 177 lakh people living in thevicinity of its plants and units during the period 2011-2022. In order to deliver qualityhealthcare at the doorsteps of the needy regular health camps are being organised invarious villages on fixed days for the people living in the periphery of plants/units/Mines. during the FY 2021-22 regular health camps have been organized and 5 MobileMedical units (MMus) extended quality healthcare to about 64500 villagers at theirdoorsteps in peripheral areas of plants units and Mines. 24 primary health centres atplants exclusively provided free medical care and medicines to more than 125000patients including about 11300 covid-19 patients.

Education: To develop the society through education SAIL is supportingover 77 schools providing modern education to more than 40000 children in the steeltownships 19 Special Schools (kalyan & Mukul Vidyalayas) are benefiting around 4865BpL category students at integrated steel plants and mines locations with facilities offree education mid-day meals uniform including shoes text books stationary itemsschool bag water bottles etc. under cSR. More than 441 children from tribal andnaxal-affected areas are getting free education Accommodation Meals uniform andTextbooks etc. at Saranda Suvan chhatravas kiriburu; gyanodaya chhatravas BSp SchoolRajhara Bhilai; gyanjyoti Yojna Bokaro.

Your company in association with the Akshaya patra Foundation isproviding Mid-day meals and dry ration kits to around 63000 students in over 600 govt.schools in Bhilai and Rourkela.

Women Empowerment & Sustainable income Generation:

Vocational and specialised skill development training targeted towardssustainable income generation has been provided to 223 youths & 1306 women ofperipheral villages in areas such as Nursing physiotherapy LMV driving computersMobile repairing Welder Fitter Electrician training Improved agriculture Mushroomcultivation goatery poultry fishery piggery Achar/pappad/ Agarbati/ candle makingScreen printing handlooms Sericulture Yarn Weaving Tailoring Sewing and embroiderygloves Spices Towels gunny-bags Low-cost-Sanitary Napkins Sweet Box Soap Smokelesschullah making etc. About 418 youths have been sponsored for ITI training at ITIs BolaniBargaon Baliapur Bokaro private ITI and Rourkela etc.

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

Environment Conservation: Maintenance of parks water bodies botanicalgardens and plantation & maintenance of over 5 lakh trees in the townships is beingundertaken.

Support to Divyangs & Senior Citizens: Divyang (children/people)are being supported through provision of equipment like-tricycle motorized vehiclescalipers hearing aids artificial limbs etc. Your company supports centres andprogrammes at its plants like "Schools for blind deaf & mentally challengedchildren" and "Home and Hope" at Rourkela; "Ashalata Kendra" atBokaro; various programs like "Handicapped Oriented Education Program" and"Durgpaur Handicapped Happy Home" at Durgapur; and "cheshire Home" atBurnpur. old age homes are being supported at different Plant townships like "SiyanSadan" at Bhilai "Acharya Dham" at Durgapur "Sr. Citizens Home"at Rourkela etc.

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

Development of Aspirational districts: In order to providecomprehensive development of both physical and social infrastructure SAIL has undertakencSR activities in 6 Aspirational Districts viz. Kanker Narayanpur and Rajnandgaon inChhattisgarh and West Singhbhum Bokaro Ranchi in Jharkhand.

REPORTING OF FRAUD BY AUDITORS

During the Financial Year 2021-22 neither the Statutory Auditors northe Secretarial Auditor have reported to the Audit Committee any instances of fraudcommitted against the Company by its officers or employees which would need mention inthe Board's Report.

GENERAL DISCLOSURES

i. During the year the Company has not accepted any deposits under theCompanies Act 2013.

ii. No significant or material orders were passed by the Regulators orCourts 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 notesforming part of the Financial Statements.

iii. During the year there has been no change in the nature ofBusiness of the Company.

iv. During the year no application was made and no proceeding ispending under the Insolvency and Bankruptcy Code 2016.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

• Shri Shashank Priya Additional Secretary & FinancialAdviser Ministry of Commerce & Industry having Additional Charge of FinancialAdviser Ministry of Steel ceased to be Government Director w.e.f. 22nd April2021.

• Smt. Sukriti Likhi Additional Secretary & FinancialAdviser Ministry of Steel has been appointed as Government Director w.e.f. 23rdApril 2021.

• Shri Ashok Kumar Tripathy has been appointed as IndependentDirector w.e.f. 8th November 2021.

• Shri Kanhaiya Sarda has been appointed as Independent Directorw.e.f. 12th November 2021.

• Smt. Neelam Sonker has been appointed as Independent Directorw.e.f. 15th November 2021.

• Shri Sagi Kasi Viswanatha Raju has been appointed asIndependent Director w.e.f. 16th November 2021.

• Dr. Gopal Singh Bhati has been appointed as IndependentDirector w.e.f. 18th November 2021.

• Shri Krishan Kumar Gupta ceased to be Independent Directorw.e.f. 20th December 2021.

• Shri Vejendla Srinivasa Chakravarthy has been appointed asDirector (Commercial) w.e.f. 24th December 2021.

• Shri Amit Sen Director (Finance) ceased to be Director w.e.f.31st December 2021

• Shri Atanu Bhowmick has been appointed as Director (InCharge-Rourkela Steel Plant) w.e.f. 11th February 2022.

• Shri Brijendra Patap Singh has been appointed as Director

(In Charge-Burnpur and Durgapur Steel Plant) w.e.f. 19th April2022.

• prof. (Do) K. Jayaprasad has been appointed as independentdirector w.e.f. 26th April 2022.

• Shri puneet kansal Joint Secretary Ministry of Steel anddirector Sail has ceased to be Government director w.e.f. 26th April 2022.

• Shri Abhijit Narendra Joint Secretary Ministry of Steel hasbeen appointed as government director w.e.f. 27th April 2022.

• Shri Harinand Rai director (Technical projects and RawMaterials) has ceased to be director w.e.f. 30th April 2022.

• Shri Anil kumar tulsiani has been appointed as director(Finance) w.e.f. 20th June 2022.

• Shri krishna kumar Singh has been appointed as director(personnel) w.e.f. 25th August 2022.

• Shri Arvind kumar Singh has been appointed as director(technical projects & raw Materials) w.e.f. 2nd September 2022.

The Shareholders of the company by way of resolutions passed throughpostal Ballot has approved the appointments of directors the details of which are asunder:

Nil Name Designation Resolution Date of Resolution
1. Shri Atanu Bhowmick Whole time director ordinary 4th May 2022
2. Shri Ashok kumar tripathy independent director Special 13th July 2022
3. Shri kanhaiya Sarda independent director Special 13th July 2022
4. Smt. neelam Sonker independent director Special 13th July 2022
5. Shri Sagi kasi Viswanatha raju independent director Special 13th July 2022
6. dr. gopal Singh Bhati independent director Special 13th July 2022
7. Shri Vejendla Srinivasa chakravarthy Whole time director ordinary 13th July 2022
8. Shri Brijendra pratap Singh Whole time director ordinary 13th July 2022
9. prof. (dr.) K. Jayaprasad independent director Special 13th July 2022
10. Shri Abhijit narendra government director ordinary 13th July 2022
11. Shri Anil kumar tulsiani Whole time director ordinary 2nd September 2022

ACKNOWLEDGEMENT

The Board of directors wish to place on record their appreciation forthe sincere untiring & dedicated efforts and contribution made by every member of theSAiL family. the directors acknowledge with deep sense of appreciation the valuableguidance support and co-operation received from government of india particularlyMinistry of Steel regulatory & Statutory Authorities Ministry of Environmentforests & climate change DIpAM Niti Aayog department of public enterprisesrailways State governments electricity Boards etc. the Board also convey its gratitudeto all its stakeholders including Members investors customers Vendors Bankers andconsultants for their continued support and confidence reposed in the organisation.

The directors also thank the comptroller & Auditor general ofindia Statutory Auditors cost Auditors Secretarial Auditor and other professionalsassociated with the company for their valued contribution.

The directors of your company are immensely grateful for the invaluablecontribution rendered by every person risking their life and safety to combat the pandemicand deeply regret the loss of human life due to coVID19 pandemic.

for and on behalf of the Board of directors
chairman
(Soma Mondal)
place: new delhi
dated: 5th September 2022

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