Steel Authority of India Limited
The Board of Directors has the pleasure of presenting the 47th AnnualReport of Steel Authority of India Limited (SAIL the Company) together with the AuditedStandalone and Consolidated Financial Statements for the Financial Year ended 31st March2019.
A. FINANCIAL REVIEW
Your Company achieved sales turnover of र66267 crore during theFinancial Year 2018-19 which is higher by 16% as compared to corresponding period of lastyear (CPLY) mainly due to increase in Net Sales Realisation (NSR) of Saleable Steel of 5Integrated Steel Plants by about 16%. During the Financial Year 2018-19 the Profit beforeTax and Profit after Tax at र3338 crore and र2179 crore respectively reflectsubstantially better and higher performance over CPLY.
The profit of your Company during the Financial Year 2018-19 hasimproved on account of higher Saleable Steel production increase in Net Sales Realisationof Saleable Steel of 5 Integrated Steel Plants sales of secondary products lowervoluntary retirement compensation lower Coke Rate etc. However the same has beenpartially offset by increased imported coking coal rate purchased power rate increase inrepairs & maintenance expenditure stores & spares expenditure security expensesroyalty rates on Iron Ore foreign exchange loss higher imported coal in blend higherusage of Iron Ore provision for differential royalty on Bolani and Barsua Iron Ore Minesas well as Entry Tax in UP State consequent to the Order of Hon'ble Allahabad High Courtand incremental interest expenses & depreciation charges due to capitalisation of newfacilities.
Your Company continued its thrust on judicious fund management withtimely repayment of loans including interest advance planning and action for future fundraising etc. to meet our growth objectives. The Company had borrowings of र45170 croreas on 31st March 2019 vis--vis र45409 crore as on 31st March 2018. The Company hasfully hedged the foreign currency risk on Buyers' Credit and External CommercialBorrowings. The debt equity ratio of the Company as on 31st March 2019 decreased to1.18:1 from 1.27:1 as on 31st March 2018 primarily due to increase in net worth during theyear. The net worth of the Company increased to र38152 crore as on 31st March 2019 fromर35714 crore as on 31st March 2018.
The Board of Directors has recommended a dividend of र 0.50 per EquityShare of face value of र 10/- each for the Financial Year 2018-19 subject to approval ofshareholders.
M/s. CARE Ratings M/s India Ratings and M/s Brickwork Ratings RBIapproved Credit Rating Agencies assigned 'CARE AA- Outlook: Stable' 'India Ratings AA-Outlook: Stable' and 'BWR AA Outlook: Negative' ratings respectively for SAIL's long-termborrowing programme.
B. OPERATIONS REVIEW
Financial Year 2018-19 was another remarkable year in the performanceof the Company even with greater challenges like stiff competition from domestic marketand certain operational setbacks. However SAIL Plants continued with their journey ofrelentless efforts for improvement in production product-mix and efficiency parameters.
During the sixtieth year of production your Company recorded itshighest ever annual production of Hot Metal of 17.5 million tonnes (MT) Crude Steel of16.3 MT and Saleable Steel at 15.1 MT with a growth of 10% 8 % and 7% respectively withrespect to 2017-18 (CPLY). Finished steel production at 11.9 MT was achieved with agrowth of 4% over CPLY.
SAIL in its endeavor to become energy and cost efficient increasedproduction of Crude Steel through Continuous Casting route and achieved highest ever CrudeSteel production through Continuous Casting route at 13.8 MT in the Financial Year 2018-19with a growth of 8% over Previous Year. A large number of innovations are being carriedout in the Plants for process improvement and cost competitiveness.
The Research & Development Centre of SAIL provided innovativetechnological inputs to different Plants/Units of the Company with special emphasis onproductivity and quality improvement product development and commercialization energyconservation and automation.
At Bhilai Steel Plant(BSP) the 'state of the art' Blast Furnace-8Mahamaya achieved a landmark of 1 MT Hot Metal production on 18th October 2018 in record8 months and 17 days after blowing in on 2nd February 2018 fastest in SAIL. BF-8production has been ramped up to a level of 7000 tons per day. The improvement inproduction from new Universal Rail Mill (URM) has enabled a growth in UTS-90 railsproduction at 9.85 lakh ton by 9.1% compared to 9.03 lakh tonne in the previous yearcoupled with record loading of long rails at 4.42 lakh tonne in 2018-19 over 3.16 lakhtonne in 2017-18 registering a growth of 40%. In SMS-III the first heat was tapped fromConverter-2 on 27th November 2018 Caster CV1 for blooms was started on 28th September2018 and clearance from Research Designs and Standards Organisation for making Rail BloomHeats was obtained on 18th February 2019. At SMS-II Cast blooms production of 13.89 lakhtonne is the best ever yearly performance against the previous best of 12.16 lakh tonne in2017-18 with a growth of 14.9%. The trial rolling at the new 'state of the art' Bar andRod Mill was started on 28th December 2018.
Durgapur Steel Plant(DSP) achieved the best ever annual Hot MetalCrude Steel and Saleable Steel production during the Financial Year 2018-19 at 2.52 MT2.22 MT and 2.13 MT respectively. Under the development of new wheels DSP supplied wheelsfor Kolkata Metro Railways and NTPC. Further 30 nos. of LHB wheels which are safe &light were supplied to Indian Railways. In addition to this various new initiatives wereundertaken to improve productivity and efficiency of the process. Profile measurementdevice was installed at Medium Structural Mill (MSM) for preventing generation ofdefectives and reduce downtime. Use of cost effective dolomite based refractory in steelladles and use of CC Rounds for production of BG Coach/ EMU/ LHB wheels has beenintroduced.
At Rourkela Steel Plant (RSP) the new 'state of the art' Plate Millachieved highest ever annual production of 0.861 MT. Hot Metal Crude Steel and SaleableSteel production for the Financial Year 2018-19 recorded the highest annual production at3.837 MT 3.660 MT and 3.335 MT respectively.
Bokaro Steel Plant(BSL) recorded best annual figures of cast slabproduction of 3.394 MT HR Coils at 3.686 MT and CR Saleable at 1.142 MT.
At IISCO Steel Plant (ISP) various new sections were developed likeIPE/NPB 750 Narrow Parallel Flange Beams (5 variants) HE / WPB 240 Wide Parallel FlangeBeams (4 variants) IPE 600V Narrow Parallel Flange Beams (Sec. wt. 184 Kg/m) 6.5 mm WRC36 mm TMT Bars (IS 1786 Fe 500D). ISP successfully rolled out NPB 750 in its UniversalSection Mill and added this section to its product basket during the Financial Year2018-19 thus becoming the only Plant in the Country to roll this section.
Your Company renewed various initiatives to reduce environmentalfootprint and enhance operational efficiency and this has led to a significant improvementin environmental parameters as well as techno-economic efficiency. This enabled us toproduce greener and more environmental friendly steel than ever before. SAIL recorded thebest ever coke rate at 453 kg/thm. This was achieved as a result of higher volume of HotMetal produced through new 'state of art' large volume Blast Furnaces (38% of total HotMetal up by 29% over CPLY).
For the past sixty years your Company's steel has significantlycontributed to almost all the key projects of the Country including Railways DefenceHydroelectric Space Programs Infrastructure projects and has partnered with theGovernment in its initiatives like 'Make in India' 'Digital India' and 'Skill India'etc.
Your Company has played a key role in the development of home grown'state-of-the-art' gun-Dhanush for which it has supplied special quality forging steelfrom its Durgapur based Alloy Steels Plant. Besides this your Company has supplied steelto India's space missions and has been part of Country's growth story under the ambit ofNational Steel Policy 2017.
SAIL's steel has been used in every single infrastructure project ofNational significance in the last sixty years like- Chenani Nashri tunnel Statue ofUnity the world's tallest statue etc. The quality and variety of steel produced by SAILis praiseworthy and your Company is prioritizing to increase its volumes and achieve itsrated capacities along with adding value added products to cater to the marketrequirements.
Your Company has always strived to maximize its captive power potentialin view of reliability of power supply as well as availability of power at optimum cost.During the Financial Year 2018-19 about 58% of the total requirement of 11120 MillionUnits(MU) was met from the captive Power Plants. SAIL is the first non-utility powerproducer in the Country to have gainfully utilized the concept of Open Access Regulationslaid down in the Electricity Act 2003 by way of starting inter-regional wheeling ofsurplus captive power. Continuing the legacy this year too SAIL Plants procured about437 MU of energy under provisions of Open Access which amounts to about 3.93% of the totalpower requirement. This included purchase of about 283 MU from the power exchanges.
With the objective to enhance the share of captive power and supplyreliable power at optimum cost to all ongoing expansion projects commissioning of newcaptive power plants of 290 MW capacity is in advanced stage by NTPC-
SAIL Power Company Limited (NSPCL) a Joint Venture Company of SAIL& NTPC Ltd.
Besides above optimization of electricity consumption in various steelmaking processes is also one of the thrust areas of SAIL Plants for lowering the powerconsumption per ton of saleable steel production.
As a responsible corporate house your Company has laid adequateemphasis on development and usage of renewable power sources. While Rooftop Solar PowerPlant of 2 MWp capacity was commissioned during the Financial Year 2018-19 at variousbuildings of Bokaro Steel Plant tenders have also been invited for installation ofanother 6.2 MWp capacity of Roof Top Solar Plants at different SAIL Plants/ Units.
In addition to this a new Joint Venture Company GEDCOL SAIL PowerCorporation Limited (GSPCL) was incorporated during the Financial Year 2018-19 to developa small Hydro Electric Plant of 10 MW capacity at Mandira Dam Rourkela. SAIL owns 26%equity in the Joint Venture Company whereas remaining 74% equity is owned by Green EnergyDevelopment Corporation of Odisha Limited (GEDCOL) a Government of Odisha Company.
During Financial Year 2018-19 total requirement of iron ore was metfrom captive sources. Your Company's captive mines produced about 28.35 million tonnes(MT) of iron ore. In case of clean coking coal about 1.5MT was met from indigenoussources (Coal India Limited & captive sources) and for the balance requirement ofcoking coal (13.21 MT) the Company had to depend on imports due to limitation inavailability of required quantity and quality within the Country. In the Financial Year2018-19 production in captive collieries of the Company was about 0.74 MT out of which0.44 MT was raw coking coal and balance 0.30 MT of non-coking coal. In case of fluxesaround 1.32 MT of limestone and 0.52 MT of dolomite were produced giving a production of1.84 MT fluxes from captive sources. For thermal coal your Company depends entirely onpurchases from Coal India Limited except small quantity produced from captive mines.
Consequent upon issuance of the order by Hon'ble Supreme Court on11.05.2018 iron ore production at Barsua mines which remained suspended since17.05.2014 got resumed on 20.05.2018.
Grant of Environment Clearance(EC) Forest Clearance(FC)
In order to expedite capacity expansion projects of mines following
Environment and Forest Clearance have been obtained during 2018-19:
Stage-II FC for diversion of Sabik Kisam forest lands under 6.9 Sq. mile leaseof Bolani Mine was granted by MoEFCC on 29.04.2019.
Terms of Reference (ToR) for conducting EIA study for ML-139 Mining Lease ofBarsua Mine was granted on 24.08.2018.
However Stage-II Forest Clearance for the capacity expansion of Guaand Chiria Mines and opening of South-Central blocks in Kiriburu-Meghahatuburu Mines inSaranda forest in Jharkhand is awaited from MoEFCC. In view of its criticality to thecapacity expansion projects the matter is being actively pursued at the level of MoEFCCMinistry of Steel and Government of Jharkhand.
MoEFCC has also linked grant of EC for Kalwar-Nagur lease of BSP withpayment of Net Present Value(NPV) for entire forest land under lease. SAIL has challengedthe notice in this regard in the Hon'ble Chhattisgarh High Court. In pursuance of theHon'ble Chhattisgarh High Court Order dated 11.09.2018 two meetings were held under theChairmanship of Secretary MoEFCC on 27.11.2018 and 22.01.2019. SAIL has submittedcomprehensive plan for development of Kalwar-Nagur deposit as directed during the firstmeeting held on 27.11.2018 and has also submitted its representation regarding issues indisagreement during the second meeting held on 22.01.2019. In the meantime vide OM dated01.01.2019 MoEFCC provided the opinion of AGI to SAIL which is in line with theinterpretation of FC Act made by SAIL. The matter was last heard in Hon'ble ChhattisgarhHigh Court on 07.05.2019 wherein it was informed by the respondents (MoEFCC andGovernment of Chhattisgarh) that pleading on their part is complete. In the final hearingheld from 17th and 19th June 2019 Hon'ble Court heard all the parties at lengthincluding pleadings made by the UOI Chhattisgarh State Govt. and SAIL. The case has beenposted for next date of hearing.
Legal recourse in the matter of rejection of Environment Clearance proposals ofPandridalli & Rajhara Pahar iron ore mining lease of BSP and Tulsidamar Dolomite leaseof RMD is being taken.
Extension of lease period and reservation of new areas
On 06.08.2018 Government of Chhattisgarh amended the Chhattisgarh Minor MineralsRules 2015 and made a provision for extension of lease period of mining leases of minorminerals through onetime extension of lease period of twenty years after expiry of aperiod of 50 years from the date of original grant. With this amendment the lease periodof Hirri dolomite and Baraduar dolomite leases will extend up to the period of 2029 and2040 respectively which would have otherwise expired in 2020.
Vide Notification dated 20.02.2019 Ministry of Mines Government of Indiareserved the area of 150 Acres at Ramandurga Bellari District Karnataka for iron ore forundertaking prospecting or mining operations through VISL for a period of 10 year.
Government of Jharkhand has agreed for extension of lease period of iron oremining leases including sub-judice leases.
Pronouncement of Judgment by Hon'ble Delhi High Court on 26.03.2019 has pavedthe way for grant of iron ore mining lease in NEB area in Bellary District in favour ofVISL.
Under the provisions of Mineral (Mining by Government Company) Rules 2015Government of Jharkhand vide order dated 25.06.2019 has extended the lease period ofDuargaiburu Lease of Gua Iron Ore Mine for 20 years w.e.f. 22.02.2009 with conditions.
However delay in renewal of mining leases of Tasra Coking Coal Blockand reservation of area for sand mining leases for stowing are areas of concern. Thematter regarding clarification as sought by Government of Jharkhand for renewal of Tasralease from Ministry of Coal and reservation of area for sand for stowing are beingactively pursued with Ministry of Coal.
Impact of Judgment passed by Hon'ble Supreme Court in Common Cause
Consequent to the judgement dated 2nd August 2017 of the Hon'bleSupreme Court in the matter of Common Cause State Governments of Odisha and Jharkhandhave issued Demand Notices of र204.58 crore and र1759.02 crore respectively and StateGovernment of Chhattisgarh has issued Show Cause Notices amounting to र8349.09 crore forpayment of compensation under section 21(5) of the MMDR Act and for EC violations relatedto iron ore flux & coal mines till date.
In order to mitigate the impact of order of Hon'ble Supreme CourtSecretary Ministry of Steel vide letter dated 13.10.2017 had taken up the matter withSecretary Ministry of Mines to bring an Ordinance to amend Section (3) of MMDR Act 1957by including the definition of "lawful authority" and "mining operationwithout any lawful authority" and consequently Ministry of Mines vide O.M. dated15.03.2018 has sent a draft note for the Cabinet on proposal for amending the Mines andMinerals (Development and Regulation) Act 1957. Ordnance in this regard is awaited.
Return of Parbatpur and Sitanala Coal Blocks Sitanala Coal Block
Consequent to the SAIL's letter dated 12.03.2018 to Ministry ofCoal(MoC) regarding returning of Sitanala Coal Block MoC vide letter dated 04.10.2018issued a Termination Notice against Allotment Agreement and Allotment Order in respect ofSitanala Coal Block and advised the bank on 25.10.2018 to invoke the Bank Guarantee(BG) ofर10.43 crore. Consequently the bank invoked the BG on 30.10.2018. On challenging theTermination Notice before Delhi High Court Hon'ble Court vide its Order has not stayedthe invocation of BG but directed that if the petition is decided in favour of SAILconsequential direction for refund of the amount collected by invoking the Bank Guaranteewill be passed. The matter was listed on 10.01.2019 wherein counsel appearing forMinistry of Coal sought further time to file a counter affidavit. The matter has beenlisted for further hearing.
Parbatpur Coal Block
SAIL vide letter dated 08.03.2018 had intimated Nominated AuthorityMinistry of Coal(MoC) about the decision of its Board to return Parbatpur Coal Block toMoC. However decision from MoC in this regard is still awaited. Further Secretary MoCduring a meeting held on 16.10.2018 advised SAIL to make all efforts for ensuring miningof coal from the Parbatpur block by forming a Joint Venture with ONGC. On examination byboth SAIL and ONGC along with Central Mine Planning and Design Institute (CMPDI) Ranchiit emerged that concurrent mining of Coal & Coal Bed Methane (CBM) from the same areais not feasible technically and from safety view as well. SAIL informed the same to MoC on14.02.2019 and reiterated it's earlier request to refund the amounts paid including bankguarantee submitted at the time of allocation of the coal block and also for allotment ofa potential coking coal block in lieu of the returned coal block.
Notwithstanding the fact that SAIL has already returned the block toMoC Joint Secretary MoC passed an order on 15.02.2019 regarding determination ofcompensation for Land and Mine Infrastructure payable to M/s. Electrosteel Castings Ltd.as prior allottee of Parbatpur Central Coal Mine wherein previous valuation of Land andMine Infrastructure of prior allottee reduced from र62.2816 crore to र60.3055 crore.Further vide order dated 11.04.2019 it made clear that order of determination dated15.02.2019 does not require reconsideration and the determination made is final.
Furthermore Nominated Authority MoC vide letter dated 26.03.2019 hasrequested SAIL to communicate its decision to continue with the surrender of the ParbatpurCentral Coal Mine. Covering the aspects of overlap issues with Petroleum Mining Lease ofONGC and non-grant of mining lease it was informed to MoC on 09.04.2019 to take over theParbatpur mine from SAIL to refund the amount paid by SAIL at the time of allocation ofthe coal block and also allot a potential coking coal block in lieu of the returnedParbatpur coal block. Further action on the matter is awaited from MoC.
Sales & Marketing
During the Financial Year 2018-19 your Company achieved its best eversales volume of over 14.1 million tons (MT) registering a growth of about 0.4% over CPLY.Continuing to maintain its presence in international markets SAIL has exported 0.76 MT ofsteel a growth of about 9% over the previous financial year.
To tap the vast potential of Rural India your Company organized 152'Gaon Ki Ore' workshops in 29 States/Union territories for increasing awareness on usageof steel. Small consumers continued to be a focus area and 0.7 MT of steel were soldthrough the retail marketing channels.
Your Company has enhanced its efforts towards selling value added steelto various segments. Supplies from the Cold Rolling Mill #3 at Bokaro have been steadilyincreasing to consumers in the highly demanding high value auto segment besides newcustomers in Power sector. Supplies of special grades WRC has commenced from the new millat IISCO Steel Plant.
With the ramping up of production at the Universal Rail Mill at Bhilairecord 4.42 lakh tonnes of long rail panels (260 meters) were supplied to Indian Railwaysregistering a growth of around 40% in the 2018-19. This Mill produces the longest singlerail in the World (130 meters). During 2018-19 record 9.85 lakh tonnes of Rails in primequality were produced at Bhilai Steel Plant a growth of around 9% over 2017-18. A record9.44 lakh tons were supplied to Railways (including supply to RVNL and IRCON).
As a step towards enhancing brand visibility of Parallel FlangeStructural Sections under the brand name "NEX" were promoted through productawareness seminars and workshops conducted across the Country. Focused Customer engagementefforts including interactions with Structural Designers and Planners have helped yourCompany to establish the product range. This resulted in growth of 27% in sales ofstructurals from the new state of the art mills over CPLY.
Your Company continues to have a significant presence in theInfrastructure sector. Certain prestigious projects like Statue of Unity Bogibeel Bridgeetc. where SAIL was one of the largest supplier of steel were dedicated to the Nation inthe Financial Year 2018-19. In addition to this large quantities of Plates and Structuralsteel were supplied to prestigious power and irrigation projects as well as Rail and Roadinfrastructure projects in 2018-19.
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 2018-19 and 2017-18 is given below:
| || ||(र crore) |
|Particulars ||2018-19 ||2017-18 |
|Total Amount of Procurement ||6141.98 ||4143.67 |
|Total Procurement from MSE ||1241.47 ||858.17 |
|%age Procurement from MSE ||20.21 ||20.71 |
Modernisation & Expansion Plan
The Modernisation and Expansion Plan at Rourkela Burnpur DurgapurBokaro and Salem Steel Plants have been completed and various facilities are underoperation stabilization & ramp up.
During the year 2018-19 your Company has achieved many milestones. AtBhilai Steel Plant hot trial of Steel Melting Shop-III (SMS-III) facilities viz.Converter-2 Billet Casters 1 & 2 Billet cum Bloom Caster and RH Degasser has beenundertaken. Further processing of Rail Heat at SMS-III through RH Degasser andBillet-cum-Bloom Caster route has also been achieved during the year. The integratedprocess route under Modernisation & Expansion Plan is in operation stabilization& ramp-up. Hon'ble Prime Minister of India has dedicated the Modernized and ExpandedBhilai Steel Plant to the Nation on 14th June 2018. A capital expenditure of र4303 crorehas been incurred during Financial Year 2018-19 and capex planned for the Financial Year2019-20 is र4000 crore.
The details of Addition Modification & Replacement (AMR) Schemesunder 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 389 TCS/Man/Yearin 2018-19. The manpower strength of the Company was 72339 nos. as on 31st March 2019with manpower rationalization of 4531 nos. achieved during the year. The enhancedproductivity with rationalized manpower could be achieved as a result of judiciousrecruitments building competencies and infusing a sense of commitment and passion amongemployees to go beyond and excel. Trend of enhanced productivity and manpowerrationalization since 2009-10 onwards is depicted below: organizations and development ofeffective managerial competencies in association with premier institutes.
Preparing employees for tomorrow for effectively taking up challengesand discharging new roles and responsibilities is being given a major thrust. Overall44369 employees were trained against target of 33605 employees during the year onvarious contemporary technical and managerial modules.
Harmonious Employee Relations
SAIL has maintained its glorious tradition of building and maintaininga conducive and fulfilling employer-employee relations environment. The healthy practiceof resolving issues through discussions with trade unions/workers' representatives enabledthe Company in ensuring workers' participation at different levels and establishing apeaceful industrial relations climate. Some of the bipartite forums are functioning sinceearly seventies and are sufficiently empowered to address different issues related towage safety and welfare of workers arising from time to time thus helping inestablishing a conducive work environment.
Bipartite forums like National Joint Committee for Steel Industry(NJCS) Joint Committee on Safety Health & Environment in Steel Industry (JCSSI)etc. with representation from major central Trade Unions as well as representative 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 enjoyed 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 with employees at various levels on a wide range ofissues impacting the Company's performance as well as those related to employees' welfareis done in a structured manner across the Company. Mass communication campaigns areundertaken at Chief Executive Officer / 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 grievance handling mechanismand employees are given an opportunity at every stage to raise grievances relating to wageirregularities working conditions transfers leave work assignments and welfareamenities etc. Majority of grievances are redressed informally in view of theparticipative nature of environment existing in the Steel Plants. The system iscomprehensive simple and flexible and has proved effective in promoting harmoniousrelationship between employees and management.
Against 257 staff grievances received during the Financial Year 2018-19with 10 grievances pending from previous year 254 staff grievances have been disposed ofduring the year achieving 95.13% fulfilment.
Further during Financial Year 2018-19 681 grievances have beenreceived under Centralised Public Grievance Redressal and Monitoring System(CPGRAMS) aNational level online system managed by Department of Administrative Reforms and PublicGrievance (DARPG) Government of India and 17 grievances had been carried forward from theprevious Financial Year. Total 688 grievances have been disposed of during Financial Year2018-19 within average time of 11 days thereby achieving fulfilment rate of 98% and 10pending for disposal as on 31st March 2019.
In SAIL pay and other benefits for executives are based on thePresidential Directives issued by Ministry of Steel Government of India. The last payrevision effective from 1st January 2007 was implemented in accordance with PresidentialDirectives dated 5th October 2009. In case of Non-executive employees the salaries andwages are finalized / revised in bipartite forum of National Joint Committee for SteelIndustry (NJCS). The last NJCS agreement was finalized and signed on 1st July 2014effective from 1st January 2012. In terms of notification dated 5th June 2015 issued byMinistry of Corporate Affairs Government of India the provisions of section 197 of theCompanies Act 2013 are not applicable to Government Companies. As such the disclosuresto be made in the Board's Report in respect of overall maximum managerial remuneration andmanagerial remuneration in case of absence or inadequacy of profits are not included inthis Report.
Initiatives for Socio-economic Development of SCs /STs & OtherWeaker Sections of the Society
Your Company follows Presidential Directives on Reservation forScheduled Castes and Scheduled Tribes in the matter of recruitments and promotions. As on31.03.2019 out of total manpower of 72339 11974 belong to SCs (16.55%) and 10815 belongto STs (14.95%).
SAIL Plants and Units including Mines are situated in economically backward regions ofthe Country with predominant SC/ST population. Therefore SAIL has contributed to theoverall development of civic medical educational and other facilities in these regions.Some of the contributions are:
Recruitment of non-executive employees which comprise close to 84% of the totalemployees is carried out mainly on regional level and hence a large number of SCs/STsand other weaker section of the society get the benefit of employment in SAIL.
Over the years a large group of ancillary industries have also developed in thevicinity of Steel Plants. This has created opportunities for local unemployed persons forjobs and development of entrepreneurship.
For jobs of temporary & intermittent nature generally contractors deployworkmen from the local areas which again provide an opportunity for employment of localresources of economically weaker section.
Establishment of SAIL Steel Plants in economically backward areas has given afillip to the economic activities thus benefiting the support population providingdifferent types of services.
Steel Townships developed by SAIL have the best of medical education and civicfacilities and are like an oasis for the local Scheduled Castes Scheduled Tribes andother population who share the benefits of prosperity and development along with SAILemployees.
SAIL has undertaken several initiatives for the socio-economic development of SCs/STsand other weaker sections of the society which are mainly as under:
Special Schools have been started exclusively for poor underprivileged childrenat five integrated steel plant locations. The facilities provided include free educationmid-day meals uniforms including shoes text books stationary items school bags waterbottles and transportation in some cases.
No tuition fee is charged from SC/ST students studying in the Company runschools whether they are SAIL employees' wards or non-employees' wards.
Free medical health centres for poor have been set up at Bhilai DurgapurRourkela Bokaro and Burnpur providing free medical consultation medicines etc. to theperipheral population mainly comprising of SC/ST and weaker sections of society.
SAIL Plants have adopted tribal children. They are being provided freeeducation uniforms text books stationery meals boarding lodging and medicalfacilities for their overall growth at residential hostels Saranda Suvan ChhatravasGyanodaya Hostel and an exclusive Gyan Jyoti Yojana for nearly extinct Birhor Tribe.
For Skill Development and better employability tribal school passouts have beensponsored for coaching in premier institutes for IIT/JEE entrance examinations and fortrainings along with monthly stipend accommodation transportation and fooding facilityat various ITIs Nursing and other vocational training institutes.
Implementation of Presidential Directives on Reservation for SC/ST
Liaison Officers have been appointed as per Presidential Directives for duecompliance of the Orders and instructions pertaining to reservation for SCs/STs/OBCs atPlants/Units of SAIL.
SC/ST Cell is functioning in all of the main Plants/Units. A member belonging toSC/ST community is associated in all DPCs/Selection Committees. A sufficiently seniorlevel officer of SC/ST category is nominated for the purpose as per the level of theRecruitment Board / Selection Committees/DPC.
Internal workshops for Liaison Officers for SC/ST/OBC and other dealing officersof SAIL Plants/Units are conducted at regular intervals through an external expert to keepthem updated on the reservation policy for SC/ ST and other related matters.
Plants/Units of SAIL have SC/ST Employees' Welfare Associations which conductregular meetings with Liaison Officers on implementation of reservation policy & otherissues. In addition an Apex level umbrella body namely SAIL SC/ST Employees Federationalso exists in SAIL to represent the issues of SC/ST Employees in a coordinated manner.
Implementation of Right to Information Act 2005
The provisions under the Right to Information Act 2005(Act) are 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 Information Officers(PIO)/Asstt.Public Information Officers and Appellate Authorities and Transparency Officer underSections 5 and 19(1) of the Act in each Plant and Unit for speedy redressal of the queriesreceived under the Act. Under Sec.5(5) all the officers/ line managers responsible forproviding information to the PIO are called Deemed PIO and are made equally responsibleas PIO towards timely submission of information to the 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 1st May 2015. Acompilation of Record Retention Policy of various functions of Corporate Office has alsobeen uploaded on the website of the Company. In addition to this compilations ofimportant decisions of CIC DoPT circulars and High Court cases are also available on thewebsite of the Company.
Awareness Programs/Workshops on 'Obligation of Public Authorities underRTI' are being organised across Plants/Units on regular basis and Information Commissionerhas been present in most of these programs.
SAIL received a total of 3814 applications and 653 appeals under theAct during the Financial Year 2018-19 and all of them have been disposed-off within thestipulated time frame under the Act. CIC has also taken up 62 cases and most of thesecases were disposed-off in favour of the Company.
Since enactment of the Act SAIL has received a total of 42524applications and 6413 appeals upto 31st March 2019 which were disposed-off within thestipulated time. Out of these 818 cases were taken up by the CIC and most of these caseswere disposed-off in favour of the Company.
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 by adopting TotalQuality Management Principles for improvement of products and services.
Ensuring effective citizen communication channels.
Demonstrating transparency and openness of its business operations by hostingthe Citizen's Charter on the Corporate website.
Working towards delight of citizens by fail-safe processes and in case ofexigencies leveraging its service recovery processes like Grievance Redressal HandlingComplaints etc.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention Prohibitionand Redressal) Act 2013:
The 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 receivedregarding sexual harassment. All employees of the Company are covered under these Rules.The details of sexual harassment complaints received and disposed of during the year2018-19 are as under:
|Number of complaints received ||: 7 |
|Number of complaints disposed off ||: 5 |
|Number of complaints pending as on 31.03.2019 ||: 2 |
D. AWARDS & ACCOLADES WON DURING THE YEAR
Your Company has won the following awards during the Financial Year 2018- 19:
1 Prime Minister's Shram Award (involving 6 employees) for the Year 2017.
9 Vishwakarma Rashtriya Puraskar Awards (involving 48 employees) for thePerformance Year 2016.
Governance Now PSU Award for 'Resilient Growth' in the 'Maharatna' Category.
Shri Anil Kumar Chaudhary Chairman SAIL has been awarded Top RankersExcellence Award-2019 for 'Outstanding Leadership' by Shri Sanjeev Sanyal PrincipalEconomic Advisor Government of India.
Recognition towards "Strong Commitment to HR Excellence" in the 9thCII HR Excellence Award for the year 2018-19.
India's Top Challengers Award at the 16th Construction World Global Awards2018.
National Award for Excellence in Cost Management for first place in 'Public-Manufacturing-Mega' Category by The Institute of Cost Accountants of India.
'Runners up' Trophy (in Category-A) under "NIPM National Award for HR BestPractices 2018".
SAIL's "Ispat Bhasha Bharti" received second prize for the bestin-house journal at town level for the Year 2017-18 by Town Official LanguageImplementation Committee Delhi.
Paper submitted for National Conference on Employable Skill Development in NewIndia was selected as one of the Best Practices in India.
Golden Peacock Environment Management Award (GPEMA) - 2019.
Bhilai Steel Plant
Smt. Rajani Rajak Development Assistant(CSR) has been conferred with NariShakti Samman 2018 for outstanding contribution to women's empowerment.
Durgpaur Steel Plant
DSP bagged ENCON Award 2018 for Excellence in Energy Conservation organised byCII Eastern Region.
DSP was bestowed with 10 numbers Par-Excellence Award at National Convention onQuality Concepts organized by Quality Circle Forum of India.
Rourkela Steel Plant
RSP bagged the Certificate of Appreciation-theme based award in Prime Minister'sTrophy Awards 2016-17 for "Initiative to reduce turnaround time of BOBS wagonsleading to substantial reduction in Demurrage and Optimum Utilization of NationalResources".
RSP received the 'Golden Peacock Award for Corporate Social Responsibility' forthe year 2018.
RSP was awared with 'Srishti G-Cube Good Green Governance Award' for the year2018 for excellence in Environment Management.
The Quality Circle team from RSP was bestowed with Par Excellence Award atNational Convention on Quality Concepts organized by Quality Circle Forum of India.
Bokaro Steel Plant
BSL received the 18th Annual Greentech Environment Excellence Award- PlatinumCategory in Metal & Mining Sector for the year 2018 in recognition of excellentenvironmental performance from Greentech Foundation Delhi
BSL bagged the National Water Awards 2018 in recognition of best large scaleindustry for industrial water conservation category in eastern zone of India.
IISCO Steel Plant
ISP bagged the West Bengal Best Employer Brand Award for the year 2018 by WorldHRD Congress in recognition of HR initiatives.
ISP has won the 'Golden Peacock National Training Award' for the year 2017-18.
Alloy Steels Plant
ASP bagged the Ispat Suraksha Puraskar 2018 for 'No fatal accident' during theCalendar Year 2016 & 2017 under Scheme-II.
ASP received the Ispat Suraksha Puraskar 2018 for 'No fatal accident' involvingContract Labour during the Calendar Year 2016 & 2017 under Scheme-IV.
2 Quality Circle Teams from ASP were bestowed with Excellence Award in NationalConvention on Quality Concepts -2018 organised by Quality Circle Forum of India.
Salem Steel Plant
SSP bagged the "Innovation and Sustainability Award for Industry" forthe year 2017-18 by The Institution of Engineers Salem in recognition of ExcellentPerformance in various fields.
Chandrapur Ferro Alloy Plant
CFP received the Ispat Suraksha Puraskar 2018 for 'No fatal accident' involvingEmployees under Scheme-IV Group 'B'.
CFP won the Ispat Suraksha Puraskar 2018 for 'No fatal accident' involvingcontract labour for the year 2018 under Scheme-IV Group 'B'.
RDCIS bagged several prestigious awards during 2018-19 like Metallurgist of theyear O.P. Jindal Gold Medal Indranil Award M. Visvesvaraya Award etc.
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. Your Company has also drawn its environmental vision in consonancewith the Corporate Environmental Policy which not only addresses the need for complianceof stipulated norms but also emphasises on striving to go beyond. Besides your Company iscommitted to address the stakeholders' concerns and communicate its environmentalphilosophy to all the stake holders.
Improvement in Emissions and Discharges
SAIL Plants and Mines are efficiently operating the pollution controldevices/ facilities and maintaining regularly throughrevamping/refurbishing/revitalization and also up-grading them as and when required forthe purpose of complying with the applicable environmental standards which are becomingmore and more stringent day by day. Concerted efforts have resulted in achieving majorimprovements during the Financial Year 2018-19 over the last five years in the followingareas:
The Particulate Matter (PM) Emission Load has reduced by around 16% to 0.70kg/tcs.
Specific Water consumption has reduced by more than 6 % to 3.44 m3/ tcs.
Specific Effluent Discharge has reduced by around 17 % to 1.80 m3/tss.
Specific Effluent Load has reduced by around 11 % to 0.085 kg/tcs.
Utilisation of BF slag has increased by around 9.5% to 95.89 %.
emission has been reduced by more than 3% to 2.57 T/tcs.
Adoption of Energy-Efficient Technologies and State-of-the-Art Pollution ControlEquipment/Facilities
Your Company has already implemented latest state-of-the-art clean technologies andbest feasible and available pollution control facilities in the course of itsModernization and Expansion Plan. Some of the major clean technologies are as under:
Tall Coke Oven Batteries along with Coke Dry Cooling Plant Land based PushingEmission Control System Computerised Combustion Control System etc. at BSP RSP and ISP.
Sinter Plant integrated with improved ignition system (multi-slit burners)Waste Heat Recovery facility from sinter cooler etc. at RSP BSL and ISP.
Blast Furnace of higher capacity equipped with Top Pressure Recovery TurbineWaste Heat Recovery facility Pulverised Coal Injection Cast House De-dusting System andtorpedo ladle at BSP RSP and ISP.
Switching over to Cast House Slag Granulation Plant from offsite slaggranulation facility progressively.
Phasing out of energy-intensive ingot route with continuous casting.
Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at the RollingMill in reducing energy consumption as well as CO2 emission.
a. Environment friendly disposal of Poly Chlorinated Bi-Phenyls (PCBs) - aenvironmental 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 islikely to be completed by December 2019.
b. Bio-sequestration of CO2 emission and sequestration of the generated
For the purpose of reduction of CO2 carbon back into the system SAILis assessing its carbon footprint in one hand and potential of sequestration of CO2through its existing biotic resources on the other. A project on carbon sequestrationthrough afforestation has been taken up at the site of Rourkela Steel Plant. M/s. TropicalForest Research Institute Jabalpur has been engaged as the sequestration partner tocarry out the project in February 2014. The project will continue till March 2020. c.Enhancing utilization of wastes through application of 4Rs (Reduction Reuse Recyclingand Recovery):
With a view to increase utilization of wastes being generated insidePlant boundary in the recent years some R&D based initiatives like steam maturing ofBOF slag dry granulation of BOF slag use of BOF slag as rail track ballast use of BFand BOF slag as substitutes to natural aggregates use of BF/BOF slag in road making useof BOF slag as soil ameliorant and in cement making have been undertaken in the recentyears.
d. Application of Renewable Energy towards a new era
Your Company has set a target of installation of 242 MW renewableenergy Power Plants at the following locations:
120 MW capacity Solar Power Plant at Bokaro.
50 MW capacity Solar Power Plant at Salem.
40 MW capacity Solar Power Plant at Rourkela.
25 MW capacity Solar Power Plant at Kulti.
7 MW capacity Solar Power Plant at Bhilai.
Besides some of the major initiatives taken towards implementation ofrenewable energy projects include setting up of (i)10 MW Hydel Power Plant at Mandira DamRSP for which a Joint Venture Agreement has been signed between RSP and Green EnergyDevelopment Corporation of Odisha Limited (GEDCOL) and (ii) 6.195 MW roof top Solar Unitson different buildings under Ministry of New and Renewable Energy (MNRE) scheme. Further3 MW roof top Solar Power units have been installed on various buildings of SAIL Plantsand Units. e. Bio-digester for processing of wastes
As a green initiative and in compliance with the "Solid WasteManagement (SWM) Rules 2016" DSP and RSP have installed bio-digesters forprocessing of about 400 kg canteen wastes per day resulting in safe disposal of suchbiodegradable wastes inside plant premises. The bio-digester converts the bio-degradablesolid wastes into compost which is used as manure for horticulture. BSL has also taken upa project for installation of a bio-gas plant for processing of canteen waste.
Environmental Management System (EMS) linked with ISO-14001:2015
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 that their performance being always within the applicable regulatoryrequirements.
During the Financial Year 2018-19 implementation of EMS(ISO-14001:2015) has been completed at IISCO Steel Plant and Gua Ores Mine.Re-certification of EMS (ISO 14001:2015) was done at Meghahatuburu Iron Ore Mine KiriburuIron Ore Mine Bolani Ores Mine Barsua Iron Mine and Dalli Mechanised Mine. Sixwarehouses (Dankuni Faridabad Kalamboli Chennai Delhi and Vishakhapatnam) of CMO havealso been re-certified with EMS (ISO 14001:2015) during 2018-19.
Sustainable Development Projects
Restoration and rehabilitation of degraded ecosystem is essential formaintaining and enhancing bio-diversity as well as replenishing the eco-system services.About 250 acres of old barren overburden dumps and water void in 200 acres of limestonemined out area in Purnapani have been successfully restored to fully functional ecosystemsthat generate ecosystem services and goods as well as sequester CO2.
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. Keeping the enormous contributionof the plants in mind SAIL has long been adopting extensive afforestation programreligiously in its Plants and Mines since its nascent stage. More than 20.5 millionsaplings have been planted across SAIL Plants and Mines till date. Giving special thrustfor plantation more than 4.42 lakhs of saplings have been planted during 2018-19.
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. New initiatives are currently being explored inareas such as pellet manufacturing in a joint venture outsourcing of power distributionand township maintenance services in SAIL townships etc. The status of StrategicInitiatives taken by your Company in the recent past includes the following:
Memorandum of Understanding with KIOCL for exploring theTechno-economic Feasibility of Setting up of a Pellet Plant of Suitable Capacity under aJoint Venture: A Memorandum of Understanding(MOU) with M/s. KIOCL Limited (KIOCL) wassigned on January 30 2019 to undertake a Joint Techno-Economic Feasibility Study forsetting up of a Pellet Plant of suitable capacity at any appropriate location acrossSAIL's Integrated Steel Plants.
Memorandum of Understanding with Capital Goods ManufacturersUnder 'Make In India' Initiative: The National Steel Policy-2017 envisages creation of 300million tonnes (MT) of steel capacity in the Country by 2030-31 as against existingcapacity of about 137 MT. The estimated import of plant and equipment for reaching 300 MTcapacity will be around USD 25 billion. Further it is estimated that at 300 MT capacitylevel India will have to spend about USD 500 million annually for import of proprietaryand other spares. To accomplish the Vision of the Government of India your Company hassigned MOUs with Capital Goods Manufacturers' (BHEL and HEC) in order to give a boost toindigenization of manufacturing of capital goods related to steel sector. The MOUs weresigned at a Conclave on "Capital Goods for Steel Sector: Manufacturing in India"held on October 23 2018 at Bhubaneswar Odisha.
GEDCOL SAIL Power Corporation Limited a new Joint VentureCompany between SAIL and M/s. Green Energy Development Corporation of Odisha Limited (awholly owned subsidiary of Odisha Hydro Power Corporation Ltd.) has been formed onSeptember 6 2018 for setting up 10 MW small hydro-electric power plant at Mandira DamRourkela Odisha.
Closure/Exit from non-operational and non-performing JointVenture Companies and Subsidiary Companies of SAIL: Your Company has initiated actions forclosure / exit from certain Joint Venture Companies as well as Subsidiary Companies whichare either non-operational or non-performing. Closure action for two subsidiary companiesviz. SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limited under Fast TrackExit Mode is in progress.
In order to meet the challenges of adverse business environmenta Company-wide turnaround exercise named 'SAIL Uday' was initiated during 2016-17. As apart of the 'SAIL Uday' exercise your Company engaged M/s. Boston Consulting Group (BCG)a leading Global Management Consultant to study the health of the Company suggestsuitable measures for its turnaround and provide hand holding support and assistance toSAIL for implementation of approved road map for turn around. The study phase of 'SAILUday' culminated in October 2017 with the submission of the 'Comprehensive TurnaroundRoadmap' Report by
BCG. The Roadmap contains recommendations encompassing variousfunctional areas of the Company including Raw Materials Production Sales &Marketing Supply Chain & Logistics Manpower & Productivity etc. SAIL ispresently in the process of implementation of the recommendations which are expected tocontribute towards improvement in the Company's performance.
Disinvestment of SAIL Plants: On 27th October 2016 the Government ofIndia (GoI) accorded 'in-principle' approval for Strategic Disinvestment of three Units ofSAIL viz. Salem Steel Plant (SSP) Salem Visvesvaraya Iron and Steel Plant (VISP)Bhadrawati and Alloy Steels Plant (ASP) Durgapur. The entire process of StrategicDisinvestment is being overseen by an Inter-Ministerial Group(IMG) constituted by theMinistry of Steel(MoS) and chaired by the Secretary Steel.
SAIL Board has accorded 'in-principle' approval for the StrategicDisinvestment of these Steel Plants. To carry out the process the Company has appointedTransaction Advisor(TA) Legal Advisor (LA) Asset Valuer(AV) and Tax cum AccountingConsultant (TCA).
Upon receipt of approval of the Government for issue of PreliminaryInformation Memorandum (PIM)/Expression of Interest request (EoI) for disinvestment of ASPon 1st February 2018 from the Ministry of Steel Public Notice for inviting EoI for ASPDurgapur was issued on 14th February 2018. Since the EoIs received in response to theabove were not meeting the specified eligibility criteria the process has been annulled.Fresh process in this regard has been initiated and revised PIM/EoI Requests of ASP VISPand SSP have been issued.
Business Excellence Initiatives
Implementation of Management Systems
Most of SAIL Plants/Units are certified to ISO 9000 ISO 14000 OHSAS 18000 and SA 8000Management Systems. BSP BSL and DSP have implemented ISO 50000 (Energy Management System)and ISO 27000 (Information Security System) also in addition to the above mentioned foursystems.
Certifications achieved during 2018-19:
Plants and Units upgraded their systems to the new version i.e. ISO 9001 : 2015& ISO 14001 : 2015
ISP- BOF CCP Blast Furnace and Coke Ovens certified to ISO 9001 : 2015.
ISP - CE Certification achieved for exporting structurals.
DSP- Medium Structural Mill received CE certificate required for export of itsproducts.
IT Related Initiative
Your Company has put in consistent efforts to develop and implementInformation Technology (IT) systems in all spheres of business in line with the objectiveof achieving speed and accuracy of data availability and automating business processes.
Due to sustained efforts over the years to keep pace with latesttechnology your Company has been able to cover the major spectrum of business operationsunder the sphere of Enterprise Resource Planning (ERP). Four Integrated Steel Plants atBhilai Durgapur Bokaro and Rourkela and Central Marketing Organization (CMO) havealready implemented ERP. ERP implementation at 5th Integrated Steel Plant i.e. IISCO SteelPlant is in progress with Go-live planned in Financial Year 2019-20. At Corporate OfficeERP has Gone Live in July 2019.
SAIL embarked on the journey of availing IT services through Cloudmodel which is increasingly becoming de facto industry standard due to its inherentadvantages of quick deployment cost effectiveness ease of manageability while providingaccess to the latest technology. Corporate Office pioneered in this initiative fordeployment of ERP solution with ISP following the same for its ERP deployment.
Manufacturing Execution Systems (MES) in Bhilai Steel Plant has beenextended in URM and SMS-III to cater to shop execution material tracking and balancingsampling and result recording etc. inside each shop for enabling rolling as per stringentquality requirement of Railways and facilitate timely dispatch.
Implementation of e-Way Bill with respect to inter-State movements for statutorycompliance has been done in major Plants/Units of the Company.
As part of GOI initiative steps have been taken to maximize procurement through GeMPortal and as a step towards automation interfacing of Purchase Orders with ERP systemshas been initiated.
Your Company implemented in-house Online Human Resource Management System (HRMS) forcreating a centralized repository of employee information mainly pertaining to EmployeeMaster Data Last Pay Certificate Pension Data Grievance System Training Module and MISReports.
Your Company in its endeavor of keeping pace with digitization and changing times hastaken initiatives in mobility and has developed android apps in areas pertaining to HumanResources as well as capturing of shop floor parameters related to production.
To promote transparency across the Organization system has been implemented forComplaint Registration and Vigilance Clearance for executives of the Company.
Communication is assuming an increasingly important role today forevery Corporate. The role of corporate communication in SAIL the largest public sectorsteel maker of the Nation and a Company having multi-unit pan-India presence becomesvital in reaching out to its stakeholders. Recognizing the evolving paradigm ofcommunication and the ways of sharing information with both external and internalstakeholders your Company keeps undertaking several initiatives to maintain a healthyflow of information and reach out to the stakeholders.
Internal Communication efforts: Continuous information dissemination inyour Company and employee engagement is a primary focus area of Corporate Communicationsteam. This was achieved through various means:
Large Group Interactions - The senior management of your Company leadby Chairman and Board of Directors interacted with employees through a two-waycommunication process at every Plant & Unit of the Company in a phase-wise andstructured manner.
Communicating Company's strategies and aspirations - In Financial Year2018-19 employees were apprised of company related information and other important issuesduring every important occasion through various channels of communication including shortvideos developed in-house intranet corporate house journal: SAIL-News posters messagesand other management collaterals among others.
Focus areas - The focus areas of communication were on : targets andchallenges of the Company roadmap to achieve Company's goals achievements technologicaldevelopments in Company overall financial situation domestic steel scenario etc. Allcommunications efforts were aimed at highlighting and disseminating these to encourageSAIL collective greater efforts.
External Communications Efforts:
Media Relations - Excellent media relations were maintained throughproactive and regular interactions with various media like newspapers electronicincluding television and web based media by sharing Company's important news on a regularand timely manner. Along with this there were several interviews conducted and covered bytop national media outlets to get an overview vision target roadmaps of SAIL management.
Efficacious Brand Outreach - Newer option of reaching target audiencewas experimented through FM radio. Your Company judiciously utilized various FM Channelsfor publicity. Several interactive sessions were organized to engage with and reach out tomaximum possible target audiences which included architects customers educationalinstitutes Railways Defence etc. Several branding activities were also undertaken atvarious platforms to create further recall of Brand SAIL.
Exhibitions & Visibility - During this period SAIL alsoparticipated in various exhibitions including Metal & Metallurgy Vibrant Gujarat ISASteel Conclave FICCI India Steel and etc. creating far reaching visibility of Brand SAILas well as raising more awareness about SAIL's variety of new age steel products. The yearalso saw SAIL associating with various sponsorship events to create more connect with theCompany's brand.
Social Media Efforts:
SAIL also effectively utilized its social media handles like FacebookTwitter Instagram Youtube etc. for instantly reaching out and connecting with theexternal as well as internal stakeholders in a sustained manner. Celebration of everyspecial occasion and event was shared with stakeholders on the social media. Short filmsdeveloped in-house on relevant subjects related to steel were also shared on theCompany's social media handles.
Your company has stood the test of time and has its rich legacy sincethe year 1959. This year was the diamond jubilee year of production of SAIL. To highlightyour Company's rich legacy and future plans it was decided to celebrate this 60th year ina befitting manner. A special logo commemorating the milestone year was designed. Acommemorative event along with a special SAIL Day Walk and a unique cricket match betweenSAIL (SAIL GIANTS) and Rest of Steel Industry (STEEL WARRIORS) was organized at corporatelevel as a part of the celebration. The efforts were lauded by the entire steel industry.Your company's continuous efforts and initiatives to engage with stakeholders and reachout to them through communication made a lasting impact in the minds of the people.
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 2018-19:
To increase vigilance awareness amongst employees vigilanceawareness sessions and workshops were regularly held at various Plants and Units of theCompany. A total of 178 workshops involving 2994 participants were organized for enhancingVigilance Awareness on Whistle Blower Policy Purchase/Contract Procedures Conduct &Discipline Rules Common Irregularities System and Procedures followed in SAIL etc.
Periodic surprise checks including Joint Checks were conductedregularly in vulnerable areas of the Company. A total of 2444 periodic checks includingfile 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. Accordingly eightmajor System Improvement Projects (SIPs) were undertaken at different Plants/Units ofSAIL.
13 cases were taken up for Intensive Examination at differentPlants / Units. During these Intensive Examinations high value procurement / contractsare scrutinized comprehensively and necessary recommendations are forwarded to concerneddepartments for implementing suggestions for improvement.
As per the Guidelines of Central Vigilance Commission VigilanceAwareness Week was observed in SAIL between 29th October to 3rd November 2018. The weekstarted with administering the Integrity pledge and reading out the messages ofdignitaries on 29th October 2018 at SAIL Corporate Office as well as all Plants/Units ofSAIL. During the week Workshops/ Sensitization programmes Customers meetAnti-corruption March / Walkathon events like quiz essay slogan & drawing/ posterdebate competition were organized for the employees and their families. As outreachmeasures various events like Speech/Oratory competition Poster/Drawing competitionEssay/Slogan competition Inter school debate competition Quiz competition were organizedacross various townships of SAIL and metro cities of Delhi and Kolkata in which around900 students from 27 Colleges / Universities and more than 4000 students from variousschools participated.
The following three thrust areas were identified by SAIL Vigilance:
i) Surveillance in the areas of receipt sampling & testing of high value rawmaterials.
ii) Audit of SIPs implemented in 2015 and 2016.
iii) Scrutiny of emergency procurement and contract cases.
'Inspiration-Prerna' an in-house publication of SAIL Vigilance is beingpublished regularly. The above publication contains case studies informative articlesquiz on policy matters etc. to enhance awareness of the readers.
As on 01.04.2018 a total of 106 complaints were pending and theclosing balance as on 31.03.2019 was 102. The summary of processing of complaints during2018-19 is as under:
|Source ||Complaints |
| ||Received ||Disposed |
|CVC ||2 ||3 |
|MoS ||19 ||18 |
|Direct ||821 ||825 |
|Total ||842 ||846 |
|Type of Complaints disposed: || |
|Closed as found anonymous / pseudonymous (filed in line with CVC guidelines) ||307 |
|Closed as no vigilance angle / allegations not substantiated ||272 |
|Referred to other departments ||145 |
|Closed with preventive/administrative Recommendations ||98 |
|Regular Departmental Actions initiated ||24 (11 cases of major penalty against 20 employees and 13 cases of minor penalty against 26 employees) |
|Total Disposed ||846 |
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. No complaint was received duringthe Financial Year 2018-19.
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.
The Statutory Auditors' Report on the Accounts of the Company for theFinancial Year ended 31st March 2019 along with Management's replies thereon is placed atAnnexure-I to this Report. The Comptroller & Auditor General of India (C&AG) videits letter dated 27th July 2019 has given "Nil" comments on the StandaloneFinancial Statements of the Company for the Financial Year ended 31st March 2019 underSection 143(6)(b) of the Companies Act 2013. A copy of the above letter of C&AG isplaced at Annexure-II to this Report.
Pursuant to the direction of the Central Government for Audit of CostAccounts the Company has appointed M/s. Sanjay Gupta & Associates New Delhi M/s.Shome & Banerjee Kolkata and M/s. R J Goel & Co. New Delhi as Cost Auditor(s)for the Financial Year 2018-19.
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 Financial Year ended on 31st March 2019. 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 during apart of the Financial Year 2018-19 it is stated that appointment of Independent Directorson the Board of the Company is made by the Company based on nomination by Government ofIndia. The Company has requested Ministry of Steel Government of India for nomination ofrequisite number of Independent Directors on its Board.
In respect of observation regarding performance evaluation of theDirectors not being carried out pursuant to the Regulation 17(10) 25(4) and 19(4) readwith Schedule-II Part D(A) of Securities Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 it is mentioned that Ministry of CorporateAffairs has vide its Notification dated 5th June 2015 notified the exemptions toGovernment Companies from the provisions of the Companies Act 2013 which inter-aliaprovides that Sub Sections (2) (3) & (4) of Section 178 regarding appointmentperformance evaluation and remuneration shall not apply to Directors of the GovernmentCompanies. Further the Ministry of Corporate Affairs vide Notification dated 5th July2017 has notified certain amendments in Schedule IV of the Companies Act 2013 relating toCode for Independent Directors. As per the Notification in Schedule IV the clausesrelating to evaluation of performance of Non-Independent Directors Chairperson and Boardhave been exempted for Government Companies.
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 posted on the website of the Company. All the Board Members and Senior ManagementPersonnel have affirmed compliance with the Code.
BUSINESS RESPONSIBILITY REPORT
As per Regulation 34(2)(f) of the SEBI(Listing Obligations andDisclosure Requirements) Regulations 2015 the Business Responsibility Report describingthe initiatives taken by the Company from Environmental Social and Governance perspectiveforms part of this Annual Report.
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 other subsidiary Companies namely SAILRefractory Company Limited (SRCL) SAIL Jagdishpur Power Plant Limited SAIL SindriProjects Limited and Chhattisgarh Mega Steel Limited. SRCL is operating the SalemRefractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16thDecember 2011. SAIL Jagdishpur Power Plant Limited incorporated for setting up of Gasbased power Plant at Jagdishpur and SAIL Sindri Projects Limited incorporated for revivalof Sindri Unit of Fertilizer Corporation of India Limited have not taken off and are underclosure. Closure of SAIL Jagdishpur Power Plant Limited and SAIL Sindri Projects Limitedthrough Fast Track Exit Mode has been filed with the Ministry of Corporate Affairs.Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with anobjective of fast tracking developmental processes such as land acquisition R&Ractivities ensuring power and water linkages securing necessary statutoryapproval/in-principle approval from Ministry of Environment Forest and Climate Changeetc. for setting up of an Ultra Mega Steel Project. The project is no longer being pursuedby SAIL.
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 ofthe subsidiary companies are available for inspection by any Shareholder in the RegisteredOffice of the Company and the Subsidiary Companies concerned between 11 AM to 1 PM onworking days. A hard copy of the details of accounts of subsidiaries shall be furnished tothe shareholders on receipt of written request.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to provisions of Section 129(3) of the Companies Act 2013the duly Audited Consolidated Financial Statements are placed at Annexure-V to thisReport. The Statutory Auditors' Report on the Consolidated Financial Statements along withthe Management's replies thereon is placed at Annexure-VI to this Report. The Comptroller& Auditor General of India (C&AG) vide its letter dated 27th July 2019 has given"Nil" comments on the Consolidated Financial Statements of the Company for theFinancial Year ended 31st March 2019 under Section 143(6)(b) read with Section 129(4) ofthe Companies Act 2013. A copy of the above letter of C&AG is placed at Annexure-VIIto this Report. Further the statement containing salient features of the financialstatements of the subsidiary joint venture and associate companies in the prescribed FormAOC-1 is placed at Annexure-VIII to this Report.
EXTRACT OF ANNUAL RETURN
The Extract of Annual Return in Form MGT-9 as per the provisions of theCompanies Act 2013 and Rules prescribed therein is placed at Annexure-IX to this Report.
During the year 8 meetings of the Board of Directors of the Companywere held the details of which are given in the Corporate Governance Report.
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.
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) the Directors statethat:
(i) in the preparation of the Annual Accounts the applicable Accounting Standards havebeen followed along with proper explanation relating to material departures;
(ii) the Directors have selected such Accounting Policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the Financial Year and ofthe profit or loss of the Company for that period;
(iii) the Directors have taken proper and sufficient care for the maintenance ofadequate Accounting Records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;
(iv) the Directors have prepared the Annual Accounts on a Going-Concern basis;
(v) the Directors have laid down internal financial control to be followed by theCompany and that such internal financial controls are adequate and are operatingeffectively; and
(vi) the Directors have devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems are adequate and operating effectively.
INDEPENDENT DIRECTORS' DECLARATION
In terms of section 149(7) of the Companies Act 2013 necessarydeclaration has been given by each Independent Director stating that he/she meets thecriteria of independence as provided in sub-section (6) of Section 149 of the CompaniesAct 2013.
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 Financial Year ended on 31st March 2019 aregiven in Annexure-X to this Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERREDTO IN SUB-SECTION (1) OF SECTION 188
All the contracts / arrangements / transactions entered by the Companyduring the Financial Year 2018-19 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 which is uploaded on the website of the Company -https://sail.co.in/sites/default/files/Dividend_Distribution_ Policy_2017.pdf
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO
In accordance with the provisions of Section 134(3)(m) of the CompaniesAct 2013 read with Rule 8 of the Companies(Accounts) Rules 2014 the particularsrelating to Conservation of Energy Technology Absorption and Foreign Exchange Earningsand 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 Risk Management Policy of your Company was approved by the Boardmuch before the same became a statutory requirement and since then risk management inSAIL has grown and developed in line with internal and external changes. The Policyprovides guidance for the management towards business risks across the Organisation. Itfocuses on ensuring that the risks are identified evaluated and mitigated within a giventime 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.
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 produce 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 theobscure villages where SAIL Plants are located turn into large industrial hubs today.
The CSR initiatives of your Company have always been undertaken inconformity to the Companies Act-2013 and Companies (Corporate Social ResponsibilityPolicy) Rules 2014. SAIL carries out CSR projects in and around periphery of steeltownships mines and far flung location across the Country in the thrust areas falling inline with Schedule-VII of the Companies Act-2013 namely education health care accessto drinking water sanitation village development environment sustainability womenempowerment assistance to divyangs sustainable income generation through self-helpgroups sports coachings promotion of art and 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.
Swachha Bharat Abhiyaan-SwachhaVidhyalayaAbhiyaan
SAIL actively participated in the "Swachch Bharat Abhiyan"initiated by the Hon'ble Prime Minister of India. Under the campaign 672 toilets inschools falling within the periphery of its Plants & Mines in the States ofChhattisgarh West Bengal Odisha Jharkhand Madhya Pradesh and Tamil Nadu had beenconstructed. The toilets are also being maintained with the help of respective SchoolManagement Committees.
Healthcare: SAIL's extensive & specialised HealthcareInfrastructure provided specialized and basic healthcare to 1.72 crore people living inthe vicinity of its Plants and Units during the period 2011-18. In order to deliverquality healthcare at the doorsteps of the needy regular health camps in various villageson fixed days are being organized for the people living in the periphery of Plants/UnitsMines and far-flung areas. During the Financial Year 2018-19 about 3050 Health Camps havebeen organized benefitting approx. 60000 villagers. 5 Mobile Medical Units (MMUs) runningin the Plant peripheries have benefitted about 44000 villagers at their doorsteps. 24Primary Health centres at Plants exclusively provided free medical care and medicines toabove 69000 villagers.
Education: To develop the society through education SAIL is supportingabout 77 schools providing modern education to more than 40000 children in the steeltownships 19 Special Schools (Kalyan & Mukul Vidyalayas) are benefitting over 3741BPL category students at integrated steel plant locations with facilities of freeeducation mid-day meals uniform including shoes text books stationary items schoolbag water bottles and transportation under CSR. SAIL in association with the Akshya PatraFoundation is providing Midday meals to 64000 students in over 600 Govt. schools inBhilai and Rourkela.
Women Empowerment & Sustainable Income Generation: Vocational andspecialised skill development training targeted towards sustainable income generation hasbeen provided to 710 youths & 1168 women of peripheral villages in areas such asNursing Physiotherapy LMV Driving Computers Mobile repairing Agriculture techniquesAchar/Pappad/ Agarbati/Candle making Screen printing Handicrafts Sericulture YarnWeaving Tailoring Spices Towels Gunny-bags Low-cost-Sanitary Napkins Sweet BoxSoap Smokeless chullah making etc. 816 youths have been sponsored for ITI training atBolani Bargaon Baliapur Bokaro Pvt. 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 of 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 Sustainability: Maintenance of parks water bodies andbotanical gardens in its townships and plantation & maintenance of over 5 lakh treesat various locations have been undertaken.
Support to Divyangs & Senior Citizens: Divyang children/people arebeing supported through provision of equipments like-tricycle motorized vehiclescalipers hearing aids artificial limbs etc. SAIL supports various schemes and centresat SAIL Plants under CSR like "Sneh Sampada" "Prayas"and'Muskaan" at Bhilai; "Schools for blind deaf & mentally challengedchildren" and Home and Hope" at Rourkela; "Ashalata Kendra" at Bokaro;various programs like "Handicapped Oriented Education Program" and"Durgpaur Handicapped Happy Home" at Durgapur; and "Cheshire Home" atBurnpur. Old age homes are being supported at different Plant townships like "SiyanSadan" at Bhilai Acharya Dham and Badshah at Durgapur etc.
Sports Art & Culture: SAIL is regularly organizing inter-villagesports tournaments extending support to major national sports events & 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 villages in Saranda Forest: In an effort to bring themarginalized masses of the remote forest areas to the mainstream of development SAIL inassociation with Government of Jharkhand and Ministry of Rural Development Government ofIndia actively participated in the development process of Saranda forest Jharkhand. SAILprovided ambulances 7000 each of bicycles transistors solar lanterns and established anIntegrated Development Centre (IDC) at Digha village in Saranda forest. IDC comprises offacilities like Bank Panchayat Office Ration shop Telecom office Anganwadi CentreMeeting room etc. for the local populace.
In an effort to align the marginalized masses a project to promotecomprehensive Water Supply and Sanitation has been initiated by Rourkela Steel Plant bydeveloping sustainable tap water source and constructing useable toilets for each familyin 19 villages of Rourkela i.e. over 10000 natives have benefitted. The villagers havebeen mobilized and empowered for their active participation in the project. Village levelcommittees have been formed for long-term sustenance of the project.
SAIL/Bolani Ore Mines has initiated a project to provide continuousdrinking water supply and sanitation facility in the remote village of Barik Sahi (KuniSahi) under Bolani Panchayat connecting it with the water source 'Jhinkaria Spring' onsouth of Bolani through a network of G.I. pipelines. All the 300 natives of Barik Sahi(Kuni Sahi) who had to travel upto 2 kms daily to fetch water from the springs have beenbenefitted with this facility.
SAIL Bio-Diversity Environment Theme Park 'VASUNDHARA' near JC BoseAvenue of DSP Township Durgapur: The development of a 409 acres Bio-Diversity EnvironmentTheme Park with water body and plantation of 400 varieties of trees to attract migratorybirds facilitating avian diversity propagation of medicinal plants rainwater harvestingand soil conservation for maintaining ecological balance and environmental sustainabilityhas been carried out. The park site is enriching the environs for 75000 natives year onyear.
i. During the year the Company has not accepted any deposits under the Companies Act2013.
ii. No significant or material orders were passed by the Regulators or Courts orTribunals impacting the going concern status and Company's operations in future. Howeverattention of Members is drawn to the statement on contingent liabilities in notes formingpart of the Financial Statements.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Shri Puneet Kansal Joint Secretary to the Government of India Ministry ofSteel has been appointed as Director w.e.f. 7th May 2018.
Shri P.K. Singh has ceased to be Chairman and Managing Director of the Companyw.e.f. 30th June 2018(A/N).
Shri Saraswati Prasad Special Secretary & Financial Adviser to theGovernment of India Ministry of Steel was holding Additional Charge of Chairman andManaging Director of the Company for the period 1st July 2018 to 21st September 2018.
Shri Raman has ceased to be Director w.e.f. 31st July 2018(A/N).
Shri Harinand Rai has been appointed as Director w.e.f. 1st August 2018 (F/N).
Shri Anil Kumar Chaudhary Director (Finance) has been appointed as Chairman ofthe Company w.e.f. 22nd September 2018.
Prof. Ashok Gupta Mrs. Anshu Vaish and CA Parmod Bindal have been re-appointedas Independent Directors for a period of one year w.e.f. 18th November 2018.
Shri Krishan Kumar Gupta has been appointed as Independent Director w.e.f. 21stDecember 2018.
Shri Vivek Gupta has been appointed as Director w.e.f. 27th March 2019 (F/N).
Consequent to superannuation of Shri M.C. Jain ED(F&A) and CompanySecretary on 30th June 2019 Shri M.B. Balakrishnan DGM (Board & Company Affairs)SAIL has been appointed as Company Secretary of the Company w.e.f. 1st July 2019.
The Board of Directors wish to place on record their appreciation forthe support and value contributed by every member of the SAIL family. The Directors arethankful to the State Governments Electricity Boards Railways Banks SuppliersCustomers and Investors for their continued co-operation. The Directors also wish toacknowledge the continued support and guidance received from the different wings of theGovernment of India particularly from the Ministry of Steel.
| ||For and on behalf of the Board of Directors |
|Place: New Delhi ||(Anil Kumar Chaudhary) |
|Dated: 31st July 2019 ||Chairman |