DIRECTORS' REPORT To, The Members, The Directors have the pleasure of presenting the 43rd Annual Report of the Company together with Audited Accounts for the Financial Year ended 31st March, 2015 A. FINANCIAL REVIEW Your Company achieved a turnover of Rs.50,627 crore during 2014-15, which is lower by 2% over previous year, mainly on account of lower sales volume. The steel prices which were at a high in the beginning of Financial Year 2014-15, started falling gradually every month from September'2014 onwards. Towards the end of the Financial Year 2014-15, the steel prices reached at the lowest for the Financial Year. The Profit After Tax of your Company for the Financial Year was Rs.2,093 crore as compared to Rs.2,616 crore in the previous Financial Year, which included the one time receipt of Rs.1,056 crore from M/s. Vale Australia Pty Ltd. The net profit of your Company for the year 2014-15 has been negatively impacted on account of stagnant saleable steel production and lower sales volume of saleable steel, higher salaries & wages, higher stores & spares expenditure, higher repairs & maintenance expenditure, increase in royalty on iron ore, increase in purchased power rate, higher usage of imported coal in the blend due to lower availability of indigenous coal, higher interest charges, higher depreciation due to capitalization of new facilities and reduction in interest earning on term deposits. The Management has taken various cost reduction measures like reduction in usage of external BF Coke, lower coke rate & energy consumption, higher CDI usage, etc. to offset the impact of adverse factors. Your Company continued its thrust on optimum utilisation of funds by better fund management. This included replacement of high cost short term loans with low cost debts, timely repayment of loans including interest, strategic parking of surplus funds with scheduled banks, actions for future fund raising etc. to meet the growth objectives. Further, the Company hedged the foreign currency risk on Buyer's Credit and repayment of External Commercial Borrowings depending on market conditions. The Company had liquid assets of Rs. 2,000 crore as on 31st March, 2015 invested in short term deposits with scheduled banks against borrowings of Rs. 29,898 crore as on 31st March 2015. The debt equity ratio of the company increased to 0.69:1 as on 31st March 2015 from 0.59:1 as on 31st March 2014 mainly on account of increase in borrowings during the year. The net worth of company improved from Rs. 42,666 crore as on 31st March 2014 to Rs. 43,505 crore as on 31st March 2015 and this helped in generation of internal resources for funding expansion plans of SAIL. During the Financial Year 2014-15, the capital expenditure incurred was Rs. 6,840 crore. The Company paid interim dividend @ 17.5% of the paid-up equity share capital during the year. The Board of Directors has further recommended a final dividend @ 2.5% subject to approval of shareholders, thus making the total dividend @ 20% of the paid up equity share capital for the Financial Year 2014-15. Credit Rating: M/s India Ratings & Research Pvt. Ltd. and M/s CARE, RBI approved credit rating agencies, maintained 'AAA' ratings indicating the highest safety, for SAIL's long term-borrowing programme. The international borrowings programme of the Company has been rated at 'BBB-' by M/s. FITCH Ratings. B. OPERATIONS REVIEW Production Review Financial Year 2014-15 witnessed several landmark achievements in the ongoing Modernisation and Expansion Plan of the Company. Your Company achieved its highest ever Hot Metal production of 15.4 Million Tonne (MT) surpassing its previous best of 15.2 MT achieved in 2007-08. This was a result of series of ongoing projects getting either commissioned or stabilized during the year towards achievement of their envisaged capacity. Each and every Integrated Steel Plant of SAIL has achieved a breakthrough in operationalizing new units as stated below: • Bhilai Steel Plant has stabilised performance of the new Sinter Machine in SP-3 and new Coke Oven Battery-11 and has started trials in the new Rail Welding Plant which is a part of Universal Rail Mill. • At Durgapur Steel Plant, the new Bloom cum Round Caster has started trial production from Feb 2015 and is expected to stabilize soon. • At Rourkela Steel Plant, new Converter-C was commissioned and has been stabilized with maximum of 21 heats. Similarly, the new Caster has also been ramped up achieving a production level of 28 casts in a single day on 19/09/2014. • At Bokaro Steel Plant, new CRM-III has begun trials and will ramp up production after commissioning of auxiliaries. • At IISCO Steel Plant, Burnpur, new BF-5, new SMS (currently operating with 2 Converters and 2 Casters) and new Bar Mill have been commissioned and operation of Wire Rod Mill has been stabilised. Your Company achieved an all time best performance in case of Continuously-Cast (CC) Steel and Sinter production, with a production of 10.3 MT & 20.7 MT and a growth of 6% over last year respectively. The Company also registered an improvement in its Crude Steel production volume, registering a growth of 2% over last year. Your Company's various initiatives to reduce environmental footprint and enhance operational efficiency have led to a significant improvement in environmental parameters as well as in Techno-economic efficiency. This has enabled the Company to produce steel in a greener and more environmental friendly manner than ever before. SAIL Plants recorded the best ever Sp. Energy Consumption of 6.52 Gcal/Tonne of Crude Steel (tcs), an improvement of 1% over 2013-14. This was achieved, as a result of higher volume of crude steel being produced through energy efficient CC route (up by 6% over 2013-14). In addition, SAIL achieved the lowest ever Particulate Matter (PM) Emission Load (0.83 kg/tcs), Specific Water Consumption (3.66 m3/tcs) and Specific Effluent discharge (2.16 m3/Tonne of Saleable Steel (tss)). SAIL Plants have also reduced their CO2 Emission levels to 2.65 T/tcs which is their lowest ever emission, showing significant improvement over earlier years. Your Company is proud to be a part of India's 'Make in India' initiative, wherein the Country's first indigenously built warship named INS Kamorta, an anti-submarine warfare corvette, was built with special grade high-tensile (DMR249A) steel produced by Bhilai Steel Plant. The ship was handed over to the Indian Navy by Garden Reach Shipbuilders & Engineers Limited in the month of July'14. Maintaining this fervor for continuous improvement, your Company has developed several new products during the year, further enhancing its extensive product portfolio. To satisfy the requirements for manufacturing of bullet proof vehicles for Indian Army, three heats of Armor quality steel were made at Alloy Steels Plant and 8 slabs were processed through Hot Strip Mill and Special Plates Plant at RSP to be dispatched to Vehicle Factory, Jabalpur. The hardness achieved was 490-520 BHN and it satisfied the specification of CQA M (47) or equivalent for protection from AK-47 from a distance of 10 meters. With the recent amendment of IS 1786 in 2012, two new grades of seismic resistant rebars, namely Fe-415S and Fe-500S with a minimum UTS/YS ratio of 1.25 were added. To keep pace with this development, SAIL took up the challenge to be the first producer in India for development of IS 1786 S grade in line with international specifications like ISO 6935-2, ASTM A706, etc. Accordingly, process technology for production of Fe-415S and Fe 500S grades were established. In addition, Research & Development Centre for Iron & Steel (RDCIS) and Plants have developed a new standard IS 15962: 2012 on 'Structural Steels for Buildings and Structures with improved Seismic Resistance' in line with ISO 24314 and JIS G 3136. No Indian specification existed earlier for seismic resistant steel structures and plates. With these aforementioned initiatives, SAIL is planning to launch seismic grade plates, structurals and TMT rebars in 2015-16 which will make SAIL the "First Producer" of these grades in India. Several initiatives have been undertaken for implementation of the ambitious R&D Master Plan of SAIL, initiated under three broad categories namely, Centre of Excellence Projects (CoE), High Impact Projects (HIP) and Technology Missions (TM) Projects. Some of the assignments in these projects involving in-house process innovation / modifications / trials have been completed. Other assignments are in various stages of implementation. The implementation of R&D Master Plan and increased thrust on R&D activities across SAIL Plants/ Units has led to a significant increase in R&D expenditure from Rs.100 crores in 2013-14 to Rs.264 crores in 2014-15 and the R&D expenditure as percentage of turnover (net of excise) has increased from 0.24 in 2013-14 to 0.58 in 2014-15. Under CoE Projects, the average campaign life of steel ladle in SMS-2, BSL has increased from 80 to 101 heats, also achieving a maximum life of 123 heats. In addition, an RFID based ladle tracking system is being implemented in SMS-2, BSL and improved quality fused Alumina based Alumina-Magnesia-Carbon bricks have been developed for bottom impact pad of steel ladle giving an average life of 50 heats with a possibility of maximum of 62 heats. RDCIS has also undertaken a new CoE project for development of high strength nano steels for which a MoU with Indian Institute of Science, Bangalore has been signed. Under High Impact Projects, lab experiments for slime beneficiation at Barsua Mines have been completed and order placement on turnkey basis is in progress. For use of air cooled BF slag for road making, laboratory investigations with different compositions using slag, local soil and moorum from BSP were carried out at Central Road Research Institute. Based on encouraging results, pilot construction of rigid pavement has been initiated at RDCIS as a separate project. Adoption of technologies for thin strip casting and CRGO steel production has been envisaged under TM-1 & TM-2 Projects. Discussions regarding modalities of technology transfer by the technology vendors are under advanced stages. Working and licensing agreement with the vendors are being worked out. Under TM-2, one heat of CRGO steel was made at RSP as per the process prepared jointly by RDCIS and RSP. Rolling of two slabs was taken up in HSM. Detailed metallurgical characterization of Hot Rolled (HR) Coils was taken up at RDCIS. Samples of HR coils were annealed and their characterization is in progress at RDCIS. A MOU has been signed between RDCIS and Mishra Dhatu Nigam Limited (MIDHANI) for development of CRGO steel at MIDHANI. Under TM-3 Project on Carbon sequestration through afforestation, M/s Tropical Forest Research Institute (TFRI), Jabalpur, M.P. have been appointed to act as Carbon Sequestration Service Provider. TFRI has carried out base period measurement of 200 samples of soil for organic carbon content. Plantation of 12 different species of trees in 10 acres for pilot study on carbon sequestration has been completed and monitoring of growth of the plants is under progress. Power Average power requirement of SAIL Plants during the year was 1140 MW. This had increased by 60 MW from the previous year due to commissioning of expansion facilities at RSP and ISP. Captive Power Plants supplied about 61% of the total power requirement and balance 39% was purchased from outside, mainly grid utilities. With an aim to reduce cost, about 42 Million Units of cheaper power available in the power exchange were purchased which contributed to substantial cost savings. This practice of purchasing cheaper power from power exchange will be continued and increasing the quantity of such power will be targeted. The practice of gainful utilization of surplus captive power available at one Plant by wheeling to another Plant was continued during the year. DSP and RSP received wheeled power from Bhilai for the first time, whereas wheeling to VISL was also continued. About 134 Million Units of power were wheeled from Bhilai to other Plants to replace costlier grid power and thereby resulting in substantial cost savings. The Company is in the process of upgrading Transmission & Distribution (T&D) facilities inside its Plants to facilitate handling of higher quantum of power requirement after ongoing expansion and improve the reliability of power supply. While power system at RSP, ISP, DSP, SSP and BSP have already been upgraded to higher voltages (220/230 KV), such up-gradation to 220 KV is nearing completion at BSL and CFP. Besides improving reliability of power supply, such arrangement will also help in reducing power cost as power tariff for some utilities is lower at high voltages. The Company is also in the process of augmenting its captive power generation capacity by installing new Captive Power Plants as part of its ongoing expansion and also through joint venture company with NTPC namely NTPC SAIL Power Company Private Limited (NSPCL). While, new power generation facilities of 146 MW capacities have already been added during the year, another 70 MW is expected during next year. Besides this, proposal for installation of 370 MW capacity through NSPCL is in advanced stage. As part of its commitment towards encouraging usage of renewable sources, the Company has initiated proposals for installation of 200 MW capacity Renewable energy projects during the period 2015-19. Out of this, proposal for installation of 15 MW capacity small hydel plant at Mandira Dam, Rourkela is in advanced stage and Installation of 1 MW capacity grid interactive Solar PV plant at RSP is under progress. Raw Materials During the Financial Year 2014-15, total requirement of iron ore was met from captive sources. The Company's captive iron ore mines produced about 23.18 million tonnes (MT). However, in case of coking coal, around 14% requirement was met from indigenous sources (Coal India Limited & captive sources) and balance through imports (12.87 MT). During 2014-15, production from captive collieries of the Company was about 0.65 million tonnes, out of which 0.44 million tonnes was raw coking coal and balance 0.21 million tonnes of non coking coal. In case of fluxes, around 1.11 million tonnes of Limestone and 0.97 million tonnes of Dolomite were produced, totaling to 2.08 million tonnes of fluxes from captive sources. For thermal coal, your Company depends entirely on purchases from Coal India Limited (CIL) except small quantity produced from captive mines. During 2014-15, at a time when consequent to a decision of the Apex Court of the Country, mining activities came to a grinding halt across the Country affecting some of the mines of the Company also, SAIL could manage its steel production level without disruption by ramping up production from its operating mines at a short notice. Most of the steel makers who have got access to captive sources had to still import iron ore. This is a sign of our intrinsic strength in regulation of operations as per the statute as well as in meeting crisis/challenges. In order to expedite capacity expansion projects of mines, following environment and forest clearance have been obtained during 2014-15: •Stage-II Forestry Clearance for diversion of 274.6916 Ha of forest land in Duargaiburu Lease-I of Gua mines. •Environment Clearance for capacity expansion of Kiriburu-Meghahatuburu mines to 16 MTPA ROM capacity. •Stage-II Forestry Clearance for diversion of 644.26 Ha of forest land in Lease-I of Kiriburu-Meghahatuburu mines. •Stage-II Forestry Clearance for balance area of 262.95 Ha and for safety Zone area of 5.1 Sq. Mile lease of Bolani Iron Ore Mine. •Stage-I Forestry Clearance with working permission for diversion of 77.94 Ha of forest land in ML-162 lease of Barsua mines. •Environment Clearance for capacity expansion of Mahamaya-Dulki iron ore mine to 1.46 MTPA capacity. With execution of lease deeds for Barsua and Bolani mines, lease period of ML-130 lease of Barsua-Kalta mine and 5.1 Sq Mile lease of Bolani mine has now been renewed till January, 2030 and April, 2030 respectively. In view of promulgation of MMDR Ordinance, 2015 and subsequent Order of the Ministry of Mines, Government of India dated 6th February, 2015 regarding extension of lease period for Government Companies till 31st March, 2020, Jharkhand State Government vide Order dated 18th March, 2015 has extended thelease renewal period of SAIL's seven Iron Ore leases and four Flux leases till 31st March, 2020. Subsequently, vide Order dated 26th March, 2015, Government of Odisha has also extended the lease renewal period of ML-162 lease of Barsua mines to 31st March, 2020. Ministry of Mines, vide Notification dated 16th February, 2015 has notified SAIL along with 4 other PSUs for the purposes of carrying out exploration under second proviso to sub-section (1) of Section 4 of MMDR Act. Under notified Coal Blocks for allotment to Government Companies, Sitanala Coking Coal Block was allotted to SAIL and the Agreement in this regard with the Nominated Authority was signed on 30th March, 2015. For allotment of new coking coal and thermal coal blocks efforts are being made for obtaining allotment of coal blocks under Government dispensation route. Sales & Marketing In-spite of the challenging market conditions, your Company achieved a total sales volume of 11.8 million tonnes during the Financial Year 2014-15. With regard to Dealer Sales, the best ever sales of 0.63 million tonnes was achieved during the Financial Year 2014-15, thereby, registering a growth of 2% over previous best of 0.62 million tonnes in Financial Year 2013-14. Similarly, in case of Alloy & Stainless Steel, the best ever sales of 0.25 million tonnes was achieved in 2014-15 which recorded a growth of 18% over previous year. Your Company had an export booking of 0.591 million tonnes, which was a significant growth over the previous year. Exports to neighbouring markets, however, increased at a faster pace of 15% over the previous year. The Company exported Plates to Brazil for the 1st time and a prestigious export order of Stainless Steel Cold Rolled Coils for French Mint was executed successfully. During the Financial Year 2014-15, 532 new SAIL Dealers were appointed. With this, total number of SAIL dealers stood at 2711 as on 1st April, 2015. Public Procurement Policy for Micro and Small Enterprises As required by the Public Procurement Policy of the Government of India, the information on procurement from Micro & Small Enterprises during 2014-15 and 2013-14 is given below: C. GROWTH PLAN AND MODERNISATION & EXPANSION PROGRAMME Growth Plan To maintain its current dominance in the domestic market and to meet the future challenges, your Company is working on a long term strategic plan 'Vision 2025', which will steer the Company towards a target of 50 million tonnes of Hot Metal capacity, thereby meeting the strategic objectives of achieving leadership in Indian Steel sector and a position amongst the top Steel companies globally. The growth plan, besides targeting higher production, also addresses the need for eliminating technological obsolescence, achieving energy savings, enriching product-mix, reducing pollution, developing mines and collieries, introducing customer centric processes and developing matching infrastructure facilities. Modernization & Expansion Programme Your Company is in the last leg of implementation of the ongoing Modernisation & Expansion Programme (MEP). SAIL has added about 5.5 million tonnes per annum of Hot Metal capacity by 201415 and will achieve the envisaged Hot Metal capacity of 23.5 million tonnes per annum in the Financial Year 2015-16. During the Financial Year 2014-15, the Company has achieved many milestones in the ongoing MEP. At Rourkela Steel Plant, all new facilities under the integrated process route of BF-BOF-Caster-Plate Mill have been made operational and Hon'ble Prime Minister of India dedicated Modernized & Expanded Rourkela Steel Plant to the Nation on 1st April, 2015. At IISCO Steel Plant, Burnpur, with the completion of India's largest Blast Furnace, all facilities under the integrated process route have become operational. On 10th May, 2015, Hon'ble Prime Minister of India dedicated to the Nation, the Modernized and Expanded IISCO Steel Plant. At Bokaro Steel Plant, the major facility i.e. the new 1.2 MTPA Cold Rolling Mill has become operational. At Durgapur Steel Plant, all major facilities like Coke Oven Battery No. 2, Ladle Furnace, Lime & Dolomite Plant and Bloom cum Round Caster become operational. At Bhilai Steel Plant, facilities like 2nd Sinter Machine in SP-3 and Coke Oven Battery -11 have become operational. A capital expenditure of Rs.6,840 crore has been incurred during Financial Year 2014-15 and capex planned for 2015-16 is Rs.7,500 crore. Besides the Modernisation & Expansion Programme, the Company regularly undertakes various Addition, Modification & Replacement (AMR) Schemes at its Plants, the details of which are given in the Management Discussion & Analysis (MD&A) Report. D. HUMAN RESOURCE MANAGEMENT REVIEW Your Company recognizes contribution of its Human Resources (HR) in providing it the competitive advantage. The Company has achieved its present level of excellence through investment in its human resource, whose skill and knowledge constitute the basis of every initiative - be it technology or innovation. Developing skills and capabilities of employees to improve manpower utilization and labour productivity is the key thrust area of Human Resource Management (HRM) in the Company. Your Company provides an environment conducive for learning, encourages adoption of best practices in every area and nurtures creativity and innovation among employees. HR initiatives in SAIL are focused on developing team spirit, employee empowerment and their involvement in various improvement activities. Strategic alignment of Human Resource Management to business priorities and objectives has facilitated smooth transition to state-of-the-art technology in the Modernization and Expansion Projects. Enhanced Productivity with Rationalized Manpower Your Company achieved the Labour Productivity (LP) of 302 TCS/Man/Year in 2014-15. The manpower strength of the Company was 93,352 nos. (as on 31.03.2015) with manpower rationalization of 4,545 nos. achieved during the year. The enhanced productivity with rationalized manpower could be achieved as a result of judicious recruitments, building competencies and infusing a sense of commitment and passion among employees to go beyond and excel. Trend of enhanced productivity and manpower rationalization since 2004-05 onwards is depicted below: Developing Employee Capabilities & Competencies Your Company believes that training facilitates the development of employee's knowledge and skills so that the resultant growth of competence contributes towards attainment of organisation's goals and objectives. SAIL has been making sustained efforts through various training and development activities with focus on preservation, transfer and improvement of skills, knowledge, technology in collaboration with reputed organizations and development of effective managerial competencies in association with premier institutes. Preparing employees for tomorrow, for effectively taking up challenges and discharging new roles and responsibilities was given a major thrust. Overall, 45,124 employees were trained against target of 40,003 employees during the year on various contemporary technical and managerial modules. Harmonious Employee Relations Your Company has maintained its glorious tradition of building and maintaining a conducive and fulfilling employee relations environment. The healthy practice of sorting out and settling issues through discussions with trade unions/ workers' representatives enabled the Company in ensuring workers' participation at different levels and establishing a peaceful IR climate. Some of the bipartite forums are functioning since early seventies and are sufficiently empowered to address different issues related to wage, safety, and welfare of workers, arising from time to time thus helping in establishing a conducive work environment. Bipartite forums like National Joint Committee for Steel Industry (NJCS), Joint Committee on Safety, Health & Environment in Steel Industry (JCSSI), etc. with representation from major central trade unions as well as representative unions of Plants/ Units meet on a periodic basis and jointly evolve recommendations/ action plans for ensuring a safe & harmonious work culture which gets substantiated from the harmonious Industrial Relations enjoyed over the years by SAIL Plants/ Units, marked with diverse work culture at multiple locations. The 9th NJCS agreement was finalized and signed on 1st July, 2014 which resulted in pay revision of non executive employees w.e.f. 1st January, 2012. In addition, Quality Circles, Suggestion schemes, Shop Improvement workshops also offer multiple avenues for enhanced workers' participation. Workers are also kept abreast of strategic business decisions and their views are sought thereon through structured /interactive workshops. Communication with employees at various levels on a wide range of issues impacting the Company's performance as well as those related to employees' welfare is done in a structured manner across the Company. Mass communication campaigns are undertaken at the level of Chief Executive Officer(s) /Senior Officers of the Plants involving structured discussion with large group of employees. These interactive sessions help employees to align their working with the goals and objectives of the Company, leading to not only higher production and productivity but also enhance the sense of belongingness to the employees. Grievance Redressal Mechanism Effective internal grievances redressal machinery has been evolved and established in SAIL Plants and Units, separately for Executives and Non-executives. Joint grievance committees have been set up at Plants/ Units level for effective redressal of grievances. SAIL Plants/ Units are maintaining 3 stage grievance handling system and employees are given an opportunity at every stage to raise grievances relating to wage irregularities, working conditions, work assignments, welfare amenities, etc. Majority of grievances are redressed informally in view of the participative nature of environment existing in the Steel Plants. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationship between employees and the Management. Against 14 staff grievances pending at the start of the year (i.e. as on 1.4.2014) and 696 staff grievances received during the year, your Company disposed 703 staff grievances during 2014-15 achieving 99.01% fulfillment. Remuneration Policy In SAIL, pay and other benefits for Executives are based on the Presidential Directives issued by Ministry of Steel, Government of India. The last pay revision effective from 01/01/2007 was done in accordance with Presidential Directives dated 05/10/2009. As per this, variable pay in the form of Performance Related Pay (PRP) has been introduced for Executives. The PRP is based on the performance/profitability of the Company as well as individual performance rating which is aligned to the organization objectives. In case of Non-executive employees, the salaries and wages are finalized / revised in bipartite forum of National Joint Committee for Steel Industry (NJCS). The last NJCS Agreement was finalized and signed on 01.07.2014, which resulted in pay revision of nonexecutive employees w.e.f. 01.01.2012. In terms of notification issued by the Government of India, the provisions of section 197 of the Companies Act, 2013 are not applicable to Government Companies. As such, the disclosures to be made in the Board's Report on the remuneration of Directors and other prescribed details are not included in this Report. Initiatives for Socio-economic Development of SCs /STs & Other Weaker Sections of the Society Your Company follows Presidential Directives on Reservation of posts for Scheduled Castes and Scheduled Tribes in the matter ofrecruitments & promotions. As on 31st March 2015, out of total manpower of 93352, around 16.18% belong to SC category and 13.98% belong to ST category. SAIL Plants and Units including Mines are situated in economically backward regions of the Country with predominant SC/ST population. Therefore, SAIL has contributed to the overall development of civic, medical, educational and other facilities in these regions. Some of the contributions are: •Recruitment of non-executive employees, who comprise around 85% of the total employees, are carried out mainly on regional level and hence a large number of SCs/STs and other weaker sections of the society get the benefit of employment in SAIL. •Establishment of SAIL Steel Plants in economically backward areas has given a fillip to the economic activities thus benefiting the support population providing different types of services. •Over the years, a large group of ancillary industries have developed in the vicinity of Steel Plants. This has created opportunities for local unemployed persons for jobs and development of entrepreneurship. •For jobs of temporary & intermittent nature, generally contractors deploy workmen from the local areas, which again provide an opportunity for employment of local candidates of economically weaker sections. •Steel Townships developed by SAIL have the best of medical, education and civic facilities and are like an oasis for the local Scheduled Castes, Scheduled Tribes and other population who share the fruits of prosperity along with SAIL employees. •SAIL has also undertaken several initiatives for the socioeconomic development of SCs/STs and other weaker sections of the society, such as: • Special Schools have been started exclusively for poor, underprivileged children at the five Integrated Steel Plant locations. The facilities provided include free education, mid-day meals, uniforms including shoes, text books, stationary items, school bags, water bottles and transportation in some cases. The schools now provide education to more than 1600 children. • SAIL Plants have adopted 15 children from nearly extinct Birhor Tribe. They are being provided free education, boarding, lodging and medical facilities for their overall growth. • No tuition fee is charged from SC/ST students studying in the Company run schools, whether they are SAIL employees' wards or non-employees' wards. • Free medical health centers for poor have been set up at Bhilai, Durgapur, Rourkela and Bokaro for providing free medical consultation, medicines, etc. to the peripheral population mainly comprising of SC/ST and economically weaker sections of society. • Villagers are given free treatment- outdoor and indoor -in the hospitals of SAIL Mines at Kiriburu, Gua and Chiria when recommended by Manki/ Munda (Local Tribal Village Heads) of the peripheral villages which mainly helps the ST community people and other economically weaker sections of society. Initiatives Towards Propagating Awareness About Reservation Policy • Internal workshops for Liaison Officers for SC/ST and other dealing officers of SAIL Plants/Units are conducted at regular intervals through an external expert to keep them updated on the Reservation Policy and Presidential Directives for SC/ST and other related matters. • SAIL has an Apex level identified body namely SAIL SC/ST Employees Federation to represent the issues of SC/ST employees in a coordinated manner. A meeting with the Federation is organized on a regular basis. • Parliamentary Committee on Welfare of Scheduled Castes & Scheduled Tribes during their study tour to Kochi, Bengaluru, Goa and Mumbai from 4th to 9th February, 2015, examined representation of SCs/STs in services of SAIL on 6th February, 2015. The meeting was attended by Chairman, SAIL along with some senior officials. The Committee also met the representatives of the SAIL SC/ST Employees Federation separately. Implementation of Rightto Information Act, 2005 Your Company has been a front runner in implementation of Right to Information Act, 2005 in true spirit. The Company has designated Public Information Officers (PIO)/Asstt. Public Information Officers (APIO), Appellate Authorities and Transparency Officer under Section 5 & Section 19(1) of RTI Act in each Plant and Unit for speedy replies to the queries received under the Act. The provisions under the Act are being complied with by all Plants and Units of SAIL. All statutory reports including Annual Report are sent to Ministry of Steel and are also posted on SAIL website. Under Sec. 5(5), all the officers/line managers responsible for providing information to the PIO, called Deemed PIO, have been made equally responsible as PIO towards timely providing of information to the applicant. All Plants/Units of SAIL have listed 17 manuals and details of designated officials in line with the provisions of the RTI Act, on SAIL website. Your Company has also institutionalized an exclusive RTI Portal for better awareness and knowledge sharing. In all, a total number of 4496 applications and 659 appeals were received under the RTI Act, during the Financial Year 2014-15 and all of them have been disposed off within the timelines. Efforts towards spreading awareness about RTI amongst general public as also for PIOs/Deemed PIOs continued throughout the year. Citizen Charter SAIL's Citizen Charter has outlined commitment of SAIL towards its stakeholders, thereby empowering them to demand better products and services. The Citizen's Charter of SAIL may besummarized in four objectives, as given below: • Ensuring citizen-centric focus across all its processes by adopting Total Quality Management principles for improvement of products and services. • Ensuring effective citizen communication channels. • Demonstrating transparency and openness of its business operations by hosting the Citizen's Charter on the Corporate website. • Working towards delight of citizens, by fail-safe processes and in case of exigencies leveraging its service recovery processes, like Grievance Redressal, Handling Complaints, etc. Your Company is totally committed to excellence in public service delivery through good governance, by a laid down process of identifying citizens, our commitment to them in meeting their expectations and our communication to them of our key policies, in order to make the service delivery process more effective. Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: The Company has in place a system (under SAIL Conduct, Discipline and Appeal (CDA) Rules, 1977) in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. Complaint Committees have been set up to redress complaints received regarding sexual harassment. All employees of the Company are covered under this Policy. The following is a summary of sexual harassment complaints received and disposed off during the year 2014-15: • Number of complaints received : 5 • Number of complaints disposed off : 4 E. AWARDS & ACCOLADES WON DURING THE YEAR Company level • Your Company has been conferred with "Excellent" MoU Rating for the year 2013-14 for the 12th consecutive year. • 3 out of the 33 Prime Minister's Shram Awards declared for the year 2013 were won by SAIL, involving 3 numbers of employees. • Out of 28 awards declared, SAIL won 19 Viswakarma Rashtriya Puraskar involving 105 employees for the performance year 2012. • Bhilai Steel Plant (BSP), bagged the Prime Minister's Trophy for the Best Performing Integrated Steel Plant (ISP) in the Country for the year 2011-12 declared in 2014-15. Chairman, SAIL and Chief Executive Officer, BSP received the trophy from Hon'ble Prime Minister, Shri Narendra Modi at Rourkela on 1st April, 2015. • SAIL bagged NARAKAS Rajbhasha Shield 2013-14 (1st Prize) for the "Best Implementation of Official Language" at the 40th Town Level Meeting & Prize Distribution Ceremony of NARAKAS on 25th February, 2015. • SAIL won 'Golden Peacock Award' for 'Corporate Social Responsibility' for the year 2014 at the 9th International Conference on Corporate Social Responsibility on 19th January, 2015 at Mumbai. • SAIL was awarded the "PHD Chamber Good Corporate Citizen Award 2014" at an award ceremony held on 20th December, 2014 at New Delhi. • SAIL won 'SCOPE Meritorious Award for Environment Excellence & Sustainable Development for the year 2012-13'. The Award was given by Hon'ble President of India, Shri Pranab Mukherjee, in presence of other dignitaries in a award function held at Vigyan Bhawan, Delhi on 5th November, 2014. The then Chairman, SAIL, Shri C. S. Verma received the IIM JRD Tata Award for "Excellence in Corporate Leadership in Metallurgical Industries" for the year 2014 from Hon'ble Minister of Mines & Steel, Shri Narendra Singh Tomar in a ceremony held at Pune on 14th November, 2014. Town Official Language Implementation Committee (PSU), Delhi spearheaded by SAIL was adjudged First at National Level for commendable performance in implementing the Official Language Policy during the year 2013-14. The Award, in the form of Indira Gandhi Rajbhasha Shield, was given by Hon'ble President of India, Shri Pranab Mukherjee, in a function organized at Vigyan Bhawan, New Delhi on 15th November, 2014. •SAIL won Governance Now PSU Award 2014 under two award categories viz. IT Adoption in HR and Best HR Practices (Training). •SAIL won Skoch Renaissance Awards 2014 in the category 'Sustainable & Balanced Business Performance'. •SAIL was also conferred with Skoch Order-of-Merit Award in the following categories: • Best Project in the Country for Comprehensive Water & Sanitation Project (a CSR initiative of SAIL / RSP) • Unit Training System in SAIL • Environment Management • SAIL bagged the award for the 'Best in CSR & Sustainability as well as the Most eco-friendly PSU in the Maharatna Category' at the 1st India Today Group PSU Awards-2014 at a function held in Delhi on 21st August, 2014. • The in-house Hindi journal of SAIL 'Ispat Bhasha Bharti' bagged 1st prize at town level for the best magazine. •SAIL won BT Star Award, Management. 2014 for Excellence in HR •The then Chairman, SAIL, Shri C.S. Verma was awarded 'CEO of the Year' at the 2014 Platts Global Metals Awards Ceremony held in London on 21st May, 2014, in recognition of improving the Company's operational performance while also demonstrating a strong commitment to human resource development and corporate social responsibility. •SAIL won 5th Dalal Street Investment Journal PSU Award 2013 in the category of Highest Asset Creating Maharatna. • 5 Quality Circle teams from SAIL involving 26 employees participated in International Convention on Quality Circle 2014 held at Colombo, Sri Lanka during 12th -15th October, 2014. Quality Circle Teams from DSP & BSL won Gold Awards whereas teams of BSP, RSP and RMD have won Silver Award. •SAIL has been conferred with the First Award under the category of Public Manufacturing Organisation (Large) at the 12th National Award for Excellence in Cost Management by the Institute of Cost Accountants of India, 2014 on 15th July, 2015. • Shri Anil Kumar Chaudhary, Director (Finance), SAIL was conferred with the Best CMA CFO Award-2014 by the Institute of Cost Accountants of India on 7th July, 2015. Bhilai Steel Plant • IIM National Sustainability Award 2013-14 for performance and achievements accomplished during the Financial Year 2013-14 from IIM, Kolkata on 14th November, 2014. • CII - Exim Bank Award 2014 - Commendation Certificate for significant achievement from CII Institute of Quality on 14th November 2014. • CII Sustainability Award 2014 for performance and achievements accomplished during the Financial Year 2013-14 from CII on 19th November, 2014. • National Energy Conservation Award 2014 in the integrated steel sector on the basis of improvement in its energy performance over the previous year 2012-13. • Recognized and awarded for the maximum contribution towards ESIC in the State of Chhattisgarh in a function organized by ESIC on 30th April, 2014. Durgapur Steel Plant • Indira Gandhi Paryavaran Puraskar 2012 from Ministry of Environment & Forests, GoI for the year 2012-13 on 2nd February, 2015. • Greentech Environment Award-2015 (Gold) and Greentech CSR Award-2015 (Gold) from Greentech Foundation, Delhi on 28th January, 2015 at Kolkata for the performance year 2013-14. • CII-Exim Bank Award for Business Excellence-Commendation Certificate for significant achievement from CII Institute of Quality on 19th November 2014 for the performance year 2014. • Safety Innovation Award from Institution of Engineers for the year 2013-14 on 20th November, 2014. • Ispat Suraksha Puraskar awarded by JCSSI for the year 2013. Rourkela Steel Plant • 1st runner-up award for "Best Overall HR Practices" in 4th ZENITH Rewards & Recognition Programme organized by NHRD Bhubaneswar chapter at Bhubaneswar on 19th December, 2014. • Commendation for "Strong Commitment to HR Excellence" in 5th CII National HR Excellence Award on 5th December, 2014 at New Delhi. • BG Deshmukh Special Award for Excellence in CSR-2014 instituted by Maratha Chamber of Industry and Agriculture, Pune on 16th October, 2014. Bokaro Steel Plant • Rajbhasha Karyanvayan Award - Third Prize for outstanding work done in Rajbhasha in Eastern Region for 2013-14 by Hon'ble Governor, West Bengal in February, 2015. • CII (ER) Productivity Award 2014 by CII(ER) in February, 2015. • Greentech Award (Gold) in the Metal & Mining Sector from Greentech Foundation, Delhi on 28th January, 2015 at Kolkata for the performance year 2014. • CII-ITC Sustainability Award - 2014 for Excellence in Corporate Social Responsibility on 19th December 2014 at New Delhi. • IIM SMS DMAG Excellence Award from The Indian Institute of Metals for outstanding leadership contribution in Iron & Steel Industries in India on 14th November 2014 for the performance year 2014-15. • CII-Exim Bank Business Excellence Award - Strong Commitment to Excel from CII Institute of Quality on 19th November 2014 for the performance year 2014-15. • Shri Ashok Kumar, Junior Manager in the Slabbing Mill department of Bokaro Steel Plant was felicitated with the 'National Brand Ambassador for Vocational Training' honour on 16th October, 2014 at the Pandit Deendayal Upadhyay Shramev Jayate Karyakram at Vigyan Bhavan, New Delhi. The programme was launched by the Hon'ble Prime Minister, Shri Narendra Modi in presence of Shri Narendra Singh Tomar, Hon'ble Minister for Steel, Mines, Labour & Employment and other dignitaries. Alloy Steels Plant • First prize for Best Unit in Implementation of Rajbhasha given by TOLIC, Durgapur. Salem Steel Plant • Out of 91 State Shram Awards (Tamilaga Arasin Uyarntha Uzhaipalar Viruthu) for the year 2010, 2011 & 2012 awarded by Directorate of Industrial Safety and Health, Government of Tamil Nadu, Salem Steel Plant bagged 17 awards (18.7%) • 13th Annual Greentech Safety Gold Award in Metal & Mining Sector for outstanding achievements in Safety Management for Performance Year 2013-14 awarded by Greentech Foundation. • JCSSI - Ispat Suraksha Puraskar - 2014 for no fatal accident (including contract labour) occurred during the calendar years 2012 & 2013. Raw Materials Division • Kalta Iron Ore Mines bagged the National Safety Awards (Mines) for longest accident free period. Hon'ble President of India, Shri Pranab Mukherjee gave away the awards at the presentation ceremony of the National Safety Awards (Mines) for the years 2011 & 2012 at Vigyan Bhawan, New Delhi on 20th March, 2015. • 1st Pandit Madan Mohan Malaviya Bronze Award 2014 from CSR Times for its extensive contribution to support the students of disturbed areas. SAIL Refractory Unit • SRU received the "Running Trophy" and the "Certificate" on 16th Sept.'2014 by the "NARAKAS". F. ENVIROMENT PROTECTION AND CONSERVATION Your Company is committed to improve its environmental footprint and hence has initiated various activities with an aim to achieve sustainable solutions. The Company is fully committed to abide by the Rules, Regulations and the Laws of the land. The Company has progressively introduced Environment Management System: ISO 14001 certification at most of its steel Plants/ Units and Mines. Compliance with the relevant environmental laws and effective operation of the various pollution control facilities are ensured at all the Plants/Units. Compliance of the relevant environmental laws and the various clearance conditions are monitored meticulously and quarterly reports are submitted to the Board of Directors. During October 2014, a Board Sub-committee (BSC) on Health, Safety and Environment has been constituted to review the policy, procedures and systems on these issues and to guide the Company towards adoption of a holistic approach for improvement. Besides this Apex Level Committee, other Committees like "Expert Committee on Environment", "Expert Committee on Water" and "Expert Committee on Material Recovery and Waste Product Utilisation" are in operation to contribute towards overall improvement in environment. The challenges lying before the Company is to achieve 100% solid waste utilization, zero effluent discharge, bring down CO2 emissionat the level of Global bench-marking, 100% regulatory compliance and go beyond. Enhancement of environmental awareness and regular monitoring are being fostered to ensure non-occurrence of any serious environmental incident. Improvement in Environmental Footprints and Operational Efficiency The Company has established a structured mechanism for monitoring the environmental safe guarding activities by setting up the Environment Management Division as a nodal agency and Environment Departments at Plants, Mines and Unit levels. Review of the environmental performance, including the compliance of Environment Clearance and Consent conditions, are being carried out regularly through detailed interactive discussions with the Plants and Units. Concerted efforts have resulted in achieving major improvements in the following areas: Major Pollution Control projects implemented during the year Coal Dust Injection (CDI) facility at BF #2 and augmentation of CDI facility with BF-3, at DSP CDI facility at BF#4 & BF#5 at RSP Process ESP of strand#1 and strand#2 of Sinter Plant-1at RSP. Dry Fog Dust Suppression System at Hammer Crusher of Coke Oven at BSL. Incinerator for processing of the segregated Bio-medical Wastes (BMW) at BSL. Greenery and Eco-restoration Green belts act as effective barrier to dust, noise and as sink for carbon dioxide. Every year, SAIL Units carry out extensive plantation programmes. During the year 2014-15, more than 2.64 lakhs saplings were planted in and around SAIL Plants and mines. Since the initiation of such schemes, a total of more than 186 lakhs saplings have been planted. A project on restoration and rehabilitation of degraded ecosystems is under execution at Purnapani Limestone Mine, where 190.92 acres of mined out area has been successfully restored so far to productive ecosystems by planting more than 3.485 lakhs saplings. During 2014-15, 25,000 saplings have been planted, covering an area of 18 acres, which includes replacement plantation. Pisciculture had been put into practice in five abandoned quarries filled with water. Environmental Management System (EMS) linked with ISO- 14001:2004 During the year 2014-15, the following Units of SAIL have been recommended for accreditation to EMS-ISO 14001:2004: Barsua Iron Ore Mine Warehouses of CMO at Delhi and Visakhapatnam Sustainable Development Projects SAIL is executing a Sustainable Development Project on "Biodiversity Conservation & CO2 Sequestration at Bolani Iron Ore Mine" over and above the stipulated legal requirements. This three year long ecological restoration project is in its final year of operations and is progressing as per schedule. During the year, over 1.36 lakh saplings of native tree species have been introduced In order to maintain the restored ecosystem, SAIL has engaged the 'Centre for Environment Management of Degraded Eco-system' (CEMDE) for a period of five years to achieve the objective of Sustainable Development at Purnapani. 160 KW Off Grid PV System has been installed at the Roof Top of Burnpur Hospital, IISCO Steel Plant. For conservation of water and also to minimise pollution from surface water by reducing discharge into the surrounding environment, re-circulation of overflow water to the tune of 42.682 lakhs m3 from Hitkasa Tailing pond of Dalli (Mech.) Mines of BSP was done during 2014-15. To increase the life of the tailings pond and to reduce the surface water pollution, around 1.413 lakh m3 slimes fromHitkasa tailings pond of Dalli (Mech.) Mines of BSP has been de-silted during the year. Bokaro Steel Plant has taken up a project with the South Eastern Railway (S.E.R.) to conduct a field trial at the Bokaro Rail Yard with the Weathered LD (WLD) Slag from the Plant. Commencement of field trial is expected shortly. Lab scale study is being conducted at IIT, Kharagpur, for development of technology for Dry Granulation of LD/BOF Slag and heat recovery. Scheduled completion of the study is by March, 2016. In response to a representation from the major steel manufacturers, the Bureau of Indian Standard (BIS), New Delhi, has agreed 'in-principle' to include BF and BOF slag as alternate material (partial replacement), in place of natural sand, for manufacturing cement concrete, in the relevant BIS standard (IS:383). Bio-sequestration of CO2 Project (Technology Mission-3) under R&D Master Plan, is being jointly implemented by SAIL and the Tropical Forest Research Institute (TFRI) at the Rourkela Steel Plant (RSP). Scheduled completion of the Project is by March 2019. G. STRATEGIC INITIATIVES OF THE COMPANY Your Company has adopted a multi-pronged approach that includes organic growth, brown-field projects, technology leadership through strategic alliances, ensuring raw material security through acquisition and development of new mines, diversifying in allied areas, R&D Master Plan and a Technology Plan. Such a strategy of investing in different areas will mitigate risk and help in maximizing returns. Over a span of last few years, SAIL has formed Joint Venture companies in different areas viz. power generation, rail transportation, slag cement production, securing supplies of key input raw materials viz. coking coal (from indigenous as well as imported sources), etc. New joint venture in the area of production of specialized products to cater to automotive sector, etc. is being envisaged. The Strategic Initiatives taken by your Company include the following: Growth Strategy in Steel: SAIL plans to scale up its production to 50 million tonnes of Hot Metal by 2025-26 which will place the Company amongst the top global steel producers in the World. The capacities of Crude Steel and Saleable Steel have been planned at 48 million tonnes and 46 million tonnes respectively. Further, SAIL will develop a strong presence in the Value Added Products arena and capacities of the mines will be increased to take care of higher iron ore needs in line with increased production as above. Ultra Mega Steel Project in Bastar District, Chhattisgarh : A concept has been evolved by Ministry of Steel with the aim to develop large capacity mega steel projects in the Country, which would help India in achieving the capacity growth of 300 million tonnes of crude steel by 2025-26. Towards accomplishing this vision, SAIL would be participating for setting up of an Ultra Mega Steel Plant (UMSP) of approximately 6 million tonnes green-field capacity in Bastar district of Chhattisgarh. "Chhattisgarh Mega Steel Limited" has been incorporated by SAIL as a Special Purpose Vehicle (SPV) for UMSP in Chhattisgarh on 20th January 2015. The SPV will induct NMDC as a Joint Venture partner. In addition, a Mining SPV will be created which will undertake mineral exploration, mine development and commercial production of iron ore. A Memorandum of Understanding for setting up UMSP in Chhattisgarh has already been signed amongst Ministry of Steel, Government of India, SAIL, NMDC Ltd. and the Government of Chhattisgarh on 9th May, 2015 in the august presence of Hon'ble Prime Minister of India. Development of Rail Corridor from Rowghat to Jagdalpur in the State of Chhattisgarh: In a significant move which will bring about socio-economic development of the backward areas of Bastar region predominantly inhabited by tribal population in the Chhattisgarh State and further the industrial progress and mining activities in the region, Government of India has taken a momentous step to expand the reach of its network in this backward area meeting the long pending demand of the local population. A Memorandum of Understanding has been signed amongst SAIL, State Government of Chhattisgarh, NMDC Ltd. and IRCON International Limited, for construction of 140 kilometer rail corridor from Rowghat to Jagdalpur via Narayanpur, Kondagaon in the State of Chhattisgarh. Automotive Steel Joint Venture in India: SAIL and ArcelorMittal are in discussions for exploring the possibility for setting up an automotive steel manufacturing facility under a Joint Venture (JV) arrangement in India. The proposed JV will construct a state-of-the-art cold rolling mill and other downstream finishing facilities in India that will offer technologically advanced steel products to India's rapidly growing automotive sector. A MoU in this regard has been signed between the two companies on May 22, 2015. Joint Ventures International Coal Ventures Pvt. Ltd.: In a landmark acquisition of large coal mine and coal assets overseas by Indian companies, International Coal Ventures Pvt. Ltd. (ICVL), the joint venture of SAIL, Coal India Limited, Rashtriya Ispat Nigam Limited, NMDC Limited & NTPC Limited took over an operating coal mine and coal assets of Rio Tinto Limited in Moatize Coal basin in Tete province of Mozambique, with a total coal resource of 2.6 billion tonnes. This acquisition has been intended to give long term security for supply of a critical raw material for its Promoter Companies. The operating coal mine at Benga produces prime hard coking coal / thermal coal, and has a state-of-the-art wash plant and surface infrastructure with a potential to expand the raw coal production from the current 5 million tonnes per annum (Mtpa) to 12 Mtpa. Rail Transportation: A Joint Venture company between SAIL and RITES viz. "SAIL RITES Bengal Wagon Industry Pvt. Ltd." has beenformed for fabrication of wagons. Installation of plant and machinery is in progress. Rehabilitation of Wagons is ready to start and awaiting Assured Off-take Agreement from Railways. SAIL SCL Kerala Ltd. : Towards the quest for revival of operations of the joint venture company formed between SAIL and Government of Kerala (GOK), a new rolling mill for manufacturing 65,000 tonnes per annum. of TMT bars has been installed. The Hot Trials of the mill have been completed. Commercial production is awaited subject to BIS clearance. Business Excellence Initiatives Enterprise Scorecard (ESC) Fourth Enterprise Scorecard (ESC) of SAIL was prepared for the Financial Year 2014-15 comprising of 82 Strategic Objectives; 16 in Financial Perspective, 10 in Customer Perspective, 33 in Internal Business Process Perspective and 23 in Organisational Capability Building Perspective. Enterprise Scorecard not only brings integration with Memorandum of Understanding (MoU) with Government of India and Annual Business Plan (ABP) of the Company, but also facilitates deployment of the strategy across various leadership levels through Strategic Objectives and Key Initiatives. Enterprise Scorecard is deployed downwards through Unit Scorecards, Functional Scorecards and Departmental Scorecards and addresses the long term and short term issues. Excellence Model Your Company has adopted European Foundation of Quality Management (EFQM) Model which is implemented in India through CII-EXIM Bank Award for Business Excellence. Four SAIL Plants, i.e., BSP, DSP, BSL and RSP participated in the process of CII-EXIM Bank Awards for Business Excellence 2014. These Plants got following Recognition/ Awards: BSP - Commendation award for Strong Achievement. DSP - Commendation award for Strong Achievement. RSP - Commendation award for strong Commitment to Excel. BSL - Commendation award for Strong Commitment to Excel. Total Quality Management (TQM) Most of our Plants and Units are certified to ISO 9000, ISO 14000, OHSAS 18000 and SA 8000 Management Systems. During the Financial Year 2014-15, BSP implemented Integrated Management System (IMS) by integrating ISO 9000, ISO 14000, OHSAS 18000 and SA 8000 Management Systems while SSP implemented IMS by integrating ISO 9000, ISO 14000 and OHSAS 18000. Lead Auditors were developed for ISO 50000 (Energy Management System) and ISO 27000 (Information Security System) through in-house programmes. Following Certifications were achieved during 2014-15: • ISO 50000 (EnMS) Energy Management System at DSP • ISO 27000 (ISMS) Information Security Management System at RDCIS The other ongoing initiatives across organisation are involvement of employees through 5-S and Quality Circles implementation. There were 2350 Quality Circles projects implemented during the year. IT Related Initiatives Your Company has embraced Information Technology (IT) enabled services, applications and tools in all its Plants & Units for improvement in productivity, yield, quality, reduction in operational costs and improvement in internal & external customer satisfaction. As a step towards this, Enterprise Resource Planning (ERP) has been implemented stage wise at 4 out of 5 Integrated Steel Plants i.e. Bhilai Steel Plant (BSP), Durgapur Steel Plant (DSP), Bokaro Steel Plant (BSL), Rourkela Steel Plant (RSP) and Central Marketing Organization (CMO). 100% primary domestic sales are covered through ERP System. ERP implementation at 5th Integrated Steel Plant i.e. IISCO Steel Plant (ISP) and ERP implementation at Corporate Office for data consolidation through integration of all Plants/Units is in progress. ERP of BSP & BSL has been awarded Customer Centre of Excellence (CCOE). The Manufacturing Execution System (MES) technology was implemented at BSP. System has been ISO certified. Its deployment over marketing network has facilitated customers in placement of optimal orders in terms of quality, size and quantity. Electronic facility of receiving online payment for collection of medical insurance premium from ex-employees of SAIL has been strengthened and extended to other receivables. To ensure data & information security, steps have been taken at all SAIL Plants/Units. DSP and RDCIS has obtained Information Security Management System (ISMS):ISO certification. Corporate Communication The focus of Corporate Communications activities for the year has been proactive and structured image building exercises of your Company. Dissemination of information to the desired target audience through effective communications to stakeholders by means of press releases, press meets, one on one interaction with media personnel, etc. has strengthened your Company's image amongst key stakeholders. Two prestigious events on Dedication to the Nation of the Modernized & Expanded Rourkela Steel Plant and IISCO Steel Plant by Hon'ble Prime Minister, Shri Narendra Modi have further strengthened brand image of SAIL. These events have featured in all forms of media in India and abroad such as print, electronic, online and social media (viz. twitter and Facebook). The multi-dimensional approach followed by SAIL has ensured that information relating to it reaches the target audience in a cost- effective manner. SAIL selectively identified and participated in specialized exhibitions and events throughout the year. These include the India International Trade Fair -IITF, Vibrant Gujarat, Indian Conference of Mining & Metallurgy, Minerals Metals, Metallurgy & Materials among others. Your Company also undertakes sponsorship of important events and promising sports persons. SAIL sponsored Wrestlers -Shri Yogeshwar Dutt and Shri Sushil Kumar won gold medals for our Country at the Commonwealth Games held in 2014. Yogeshwar Dutt also won the Gold Medal at the Asian Games in 2014. SAIL continued its thrust on reaching out to its target audience both in rural and urban areas through its radio campaign, advertisements in print media and through specialized product brochures, etc. SAIL has also been recognized as an important player in Nation building and is poised to play an important role in Hon'ble PM's - "Make in India" initiative. In line with the Swachh Bharat Abhiyan initiative by the Hon'ble PM, a 'Swachh SAIL, Sundar SAIL' campaign was launched and SAIL has also developed a set of collateral's such as SAIL Diary & Calendar, Flyers, Posters, specifically highlighting the importance of Cleanliness Activities in day to day life. H. VIGILANCE ACTIVITIES SAIL Vigilance lays emphasis on preventive and proactive vigilance activities to curb corruption and malpractices with a view to safeguard the interest of the Organization and to facilitate a conducive environment enabling people to work with integrity, efficiency and in a transparent manner, upholding highest ethical standards for the Organization. Following activities were undertaken during the Financial Year 2014-15: • To increase vigilance awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants and Units. A total of 158 workshops involving 4006 participants were organized for enhancing Vigilance Awareness on Whistle Blower Policy, Lokpal & Lokayukta Act, 2013, Purchase/Contract Procedures, RTI Act, Conduct, Discipline & Rules, system and procedures followed in SAIL, etc. • Periodic surprise checks including joint checks were conducted regularly in vulnerable areas of the Company. A total of 3174 periodic checks including file scrutiny and Joint Checks were conducted at different Plants / Units. Saving of approx. Rs. 19.93 Crores accrued from the preventive vigilance activities mainly on account of these Surprise Checks. • Vigilance provides vital inputs to the operating authorities for improving the prevailing systems for bringing about more transparency. Accordingly, eight major System Improvement Projects (SIPs) were undertaken at different Plants/Units of SAIL. • 13 cases were taken up for Intensive Examination at different Plants and Units. During Intensive Examination, high value procurement / contracts are scrutinized comprehensively and necessary recommendations are forwarded to concerned departments for implementing suggestions for improvement. • As decided by the Central Vigilance Commission, Vigilance Awareness Week was observed in all the Plants and Units of SAIL during the period 27.10.2014 to 01.11.2014, on the theme of "Combating Corruption - Technology as an enabler". TSAIL ' During the week, various events including Quiz, Debate & Essay competition and workshops on revised Purchase/ Contract Procedure, 2014 (PCP-14) were organized across all Plants and Units. Further, interactive awareness sessions with major customers /stakeholders were also conducted. On the closing day, Chairman, SAIL released the 12th issue of 'INSPIRATION' in-house journal of SAIL Vigilance. Chairman, SAIL also formally released the revised Purchase / Contract Procedure of SAIL, 2014 (PCP-14) which has become effective from 01.09.2014. • The following four (4) thrust areas were identified for SAIL Vigilance: i) Increase e-auction (Reverse Auction & Forward Auction) in all spheres. ii) Scrutiny of files pertaining to 13 high value projects being undertaken at various Plants and Units, in line with the Guidelines of Chief Technical Examiner of CVC. iii) Scrutiny of the contracts awarded on single tender enquiry (nomination basis) iv) Increased surveillance in the areas of receipt, sampling & testing of high value raw materials and installing auto analyzers & auto samplers for raw material testing and sampling • Revision of Purchase /Contract Procedure (PCP) 2009: After incorporating the concepts of Expression of Interest (EOI) route & pre-bid discussions for technically complex projects, freezing of estimates before NIT, etc. along with the other CVC Guidelines issued relating to tenders and procurement, the revised PCP-2014 was brought out, which became effective from 1st September, 2014. • Revision of Standard Bidding Document (SBD) 2009 of SAIL: After incorporating the suggestions of Vigilance Department amongst others, the updated SBD, was implemented w.e.f. October, 2014. • Revision in the list of Sensitive Areas (2009): The following three areas have been added to the existing list of 22 sensitive areas from 20th June 2014: i. Corporate Social Responsibility Group. ii. Contract Labour Cell. iii. Section of Personnel Department dealing with the Appraisals and Promotion of Executives • Revision of SAIL Vigilance Manual 2011: After incorporating new CVC Guidelines relating to tenders, whistle blower complaints, disciplinary proceedings, Lokpal & Lokayukta Act 2013 and updating the existing clauses related to sanction of prosecution, sensitive areas and job rotation, Quality Management System, etc., SAIL Vigilance Manual - 2015 has been released on 23rd March 2015. • Vendors' Meet: A Vendors' Meet was organized on "Implementation of Integrity Pact" on 24.02.2015. The last such Vendors' meet was organised in the year 2009. Around 30 renowned Indian and Foreign Vendors for Projects, Corporate Material Management Group (CMMG) and Coal Import Group (CIG) attended the programme. Chairman, SAIL, three Independent External Monitors(IEMs), Functional Directors of SAIL and Chief Vigilance Officer were present during the meet. • 'Inspiration- Prerna', an in-house publication of SAIL Vigilance is being published regularly. The above publication contains case studies, articles from the employees, quiz on policy matters, important CVC circulars etc. to enhance awareness of the readers. Vigil Mechanism The Company has adopted Vigil Mechanism for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behaviour. All employees of the Company and Directors on the Board of the Company are covered under this Mechanism. This Mechanism has been established for employees to report concerns about unethical behaviour, actual or suspected fraud or violation of Code of Conduct. It also provides for adequate safeguards against the victimization of employees who avail of the Mechanism and allows direct access to the Chairperson of the Audit Committee in exceptional cases. MANAGEMENT DISCUSSION AND ANALYSIS REPORT The Management Discussion and Analysis Report covering the performance and outlook of the Company is enclosed. AUDITORS' REPORT The Statutory Auditors' Report on the Accounts of the Company for the Financial Year ended 31st March, 2015 along with Management's replies thereon is placed at Annexure-I. The Comments of Comptroller and Auditor General of India (C&AG) on the accounts of the Company for the Financial Year ended 31st March, 2015 under section 143(6) of the Companies Act, 2013 and the Managements replies thereto are placed at Annexure-II. COST AUDITORS Pursuant to the direction of the Central Government for audit of cost accounts, the Company has appointed M/s. Sanjay Gupta & Associates, M/s. K.C. Kohli & Co. and M/s. R.J. Goel & Co. as Cost Auditor(s) for the Financial Year 2015-16. SECRETARIAL AUDITOR'S REPORT In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors have appointed M/s. Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the Company for the Financial Year ended on 31st March, 2015. Secretarial Audit Report issued by M/s. Agarwal S. & Associates is placed at Annexure -III. With regard to the observation of the Secretarial Auditor that composition of the Board of Directors of the Company was not in compliance with Clause 49(II) of the Listing Agreement, para 3.1.2 & 3.1.4 of the DPE Guidelines on Corporate Governance and Section 149(4) of the Companies Act, 2013, it is stated that SAIL is a Government Company and in terms of its Articles of Association, the Directors on its Board are appointed by Government of India or by the Board of Directors and Shareholders on nomination by Government of India. The Company has requested Ministry of Steel, Government of India for appointment/nomination of requisite number of Independent Directors on its Board. CORPORATE GOVERNANCE In terms of Listing Agreement with the Stock Exchanges, a Report on Corporate Governance is given at Annexure-IV. A certificate from Auditors of the Company regarding compliance of conditions of Corporate Governance is placed at Annexure-V. In terms of the Listing Agreement, the Board has laid down a Code of Conduct for all Board Members and Senior Management Personnel of the Company. The Code of Conduct has been posted on the website of the Company. All the Board Members and Senior Management Personnel have affirmed compliance with the Code. Business Responsibility Report In terms of Circular CIR/CFD/DIL/8/2012 dated August 13, 2012 issued by SEBI, the Business Responsibility Report describing the initiatives taken by the Company from Environmental, Social and Governance perspective is placed at Annexure VI. Subsidiaries, Joint Ventures and Associates IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned subsidiary of the erstwhile Indian Iron and Steel Company Limited (IISCO), was ordered to be wound up by BIFR. The Official Liquidator is continuing its liquidation process. The assets of the Company have been realized and the settlement of claims is in process. Your Company has four other wholly owned subsidiary Companies namely, SAIL Refractory Company Limited (SRCL), SAIL Jagdishpur Power Plant Limited, SAIL Sindri Projects Limited and Chhattisgarh Mega Steel Limited. SRCL has taken over the Salem Refractory Unit of Burn Standard Company Limited on 16th December, 2011 and is operating the same. SAIL Jagdishpur Power Plant Limited, incorporated for setting up of Gas based power Plant at Jagdishpur and SAIL Sindri Projects Limited, incorporated for revival of Sindri Unit of Fertilizer Corporation of India Limited are yet to commence operations pending relevant approvals. Chhattisgarh Mega Steel Limited has been incorporated on 20th January, 2015, as a Special Purpose Vehicle for setting up of an Ultra Mega Steel Plant of 6 Million Tonnes per annum as a green field steel project under Joint Venture. The Annual Accounts of the subsidiary Companies and related detailed information shall be made available to the Shareholders of the holding and subsidiary companies, seeking such information at any point of time. Further, the Annual Accounts of the subsidiary companies are available for inspection by any Shareholder in the Registered Office of the Company and of the subsidiary companies concerned during the office hours between 11 AM to 1 PM. A hard copy of the details of accounts of subsidiaries shall be furnished to the shareholders on receipt of written request. During the year, Chhattisgarh Mega Steel Limited was incorporated as a subsidiary company. Further, your Company sold its entire stake of 26% in Bokaro Jaypee Cement Limited (BoJCL) on 26th November, 2014 and consequently, BoJCL ceased to be a joint venture company of SAIL. Consolidated Financial Statements Pursuant to provisions of Section 129 (3) of the Companies Act, 2013, the duly Audited Consolidated Financial Statements are placed at Annexure-VII. The Statutory Auditors' Report on the Consolidated Financial Statements along with the Management's replies thereon is placed at Annexure-VIII. The Comments of Comptroller and Auditor General of India (C&AG) on the Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2015 and the Management's replies thereto are placed at Annexure-IX. Further, the statement containing salient features of the financial statements of the subsidiary, joint venture and associate companies in the prescribed Form AOC-1 is placed at Annexure -X. Extract of Annual Return The Extract of Annual Return in Form MGT 9 as per the provisions of the Companies Act, 2013 and Rules prescribed therein is placed at Annexure -XI. Board Meetings During the year, 12 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report placed at Annexure- IV. Audit Committee The Audit Committee of the Board was initially formed by the Company in 1998. The Audit Committee has been reconstituted from time to time and as on 31.03.2015, it consisted of Dr. Atmanand, Shri J.M. Mauskar and Shri S.S. Mohanty. During the last year, the Audit Committee met 10 times. The minutes of the Audit Committee meetings are circulated to the Board, discussed, and taken note of. Internal Financial Control System The Company has an internal control system with reference to the Financial Statements commensurate with the size and nature of its business. The Audit Committee assists the Board of Directors in fulfilling its oversight responsibilities by reviewing the Financial Reports; the Company's systems of internal controls regarding finance, accounting and legal compliance that Management and the Board have established; and the Company's auditing, accounting and financial reporting process generally. The Audit Committee reviews reports of the Internal Auditors, meets Statutory Auditors, discusses their findings, suggestions and other related matters and reviews major Accounting Policies followed by the Company. The Audit Committee reviews with management, the Quarterly and Annual Financial Statements before their submission to the Board. The Audit Committee in its meetings with the Company's Statutory Auditors also ascertains their views on the adequacy of internal control systems in the Company and their observations on financial reports. The Audit Committee's recommendations are acted upon by the Management. Directors' Responsibility Statement Pursuant to Section 134(3)(c) of the Companies Act, 2013, the Directors state that: (i) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; (ii) the Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit or loss of the Company for that period; (iii) the Directors have taken proper and sufficient care for the maintenance of adequate Accounting Records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the Directors have prepared the Annual Accounts on a Going- Concern basis. (v) the Directors have laid down internal financial control to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and (vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively. Independent Directors Declaration In terms of section 149(7) of the Companies Act, 2013, necessary declaration has been given by each Independent Director stating that he meets the criteria of independence as provided in subsection (6) of Section 149 of the Companies Act, 2013. Particulars of Loans, Guarantees or Investments under Section 186 The details of Loans, Guarantees, Investments given during the Financial Year ended on 31st March, 2015 are given in Annexure-XII in compliance with the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014. Particulars of Contracts or Arrangements with Related Parties Referred to in Sub-Section (1) of Section 188 All the contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis. The transactions with the related parties have been disclosed in the financial statements. Therefore, particulars of contracts or arrangements with related parties referred to in Section 188(1)along with the justification for entering into such contract or arrangement in Form AOC-2 does not form part of the report. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo In accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 the particulars relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given at Annexure-XIII. Risk Management Policy Your Company had envisaged the need and benefits of the Risk Management at the enterprise level through a laid down procedure and rules as early as in 2007. Risks are inherent as a result of the uncertainties emerging from the business environment in which the Company operates. It is critical that these risks are addressed by the Company to derive sustainable value. Consequently, Risk Policy for SAIL was approved by the SAIL Board in August 2009. The Policy provides guidance for the management of the business and operational risks across SAIL. In line with the same, the Enterprise Risk Management System (ERM) was rolled out in 2009-10 and is now well established in the Company. The ERM in SAIL focuses on ensuring that risks are identified, evaluated and mitigated on a regular basis. Currently, the "Enterprise Risk Management in SAIL"- a well designed, multi-layered rganization structure - exists for efficient monitoring and mitigation of Risks. The risk management structure in SAIL starts with the identification of risk at the Unit or at Corporate level along-with outlining a detailed plan for addressing/ controlling the risk within specified time schedule and through identified risk owners and risk champions. At SAIL, Risks have been identified in wide ranging areas and mitigations plans drawn up to address these risks. The monitoring of the ERM function in SAIL, under the SAIL Board, lies with the Audit Committee and the SAIL Risk Management Committee. In line with the recent changes in the Listing Agreement, setting up of the SAIL Risk Management Committee ( SRMC) had been approved by the Board of Directors in December, 2014. The SRMC oversees the risk management function in SAIL by addressing issues pertaining to policy formulation as well as evaluation of the risk management function to assess its continuing effectiveness. It is also to assist the Board in framing and monitoring the Risk management system for the Company and guiding the Risk Policy. Corporate Social Responsibility Your Company has adopted a balanced approach towards inclusive growth consistent with socio-economic environment. The Company continued to focus on helping the downtrodden and the underprivileged with its development oriented Corporate Social Responsibility (CSR) projects in the areas of Healthcare, Drinking water, Sanitation, Education, Women Empowerment, Livelihood Generation, and many more. Inspired by clarion call of the Hon'ble Prime Minister for construction of toilets in schools under "Swachha Vidyalaya Campaign", a drive to promote sanitation and hygiene in remote areas, SAIL has undertaken construction of toilets in schools without toilets/having dysfunctional toilets falling within the peripheral areas of SAIL Plants & Units which have been allocated to SAIL by Ministry of HRD on its website. In compliance of the provisions of the Companies Act, 2013 and Rules framed thereunder, a Board level CSR Committee is functioning under the Chairmanship of an Independent Director with Director (Finance), Director (Technical) and Director (Personnel) as members. A CSR Policy for the Company has been formulated with the approval of the Board and displayed on website of the Company. In view of changing CSR fagade of the Country, SAIL has modified the CSR focus of the Company to accommodate a few large scale CSR projects in mission mode which are expected to have major impact on the Socio-Economic Development of the targeted groups in peripheral areas. These Mission Projects embark on the focus areas of education, sanitation, environment conservation, watershed development and skill development in line with Schedule VII of the Companies Act, 2013. SAIL is providing specialized and basic healthcare to more than 39.11 million rural people through its well-established 53 Primary Health Centers, 23 Hospitals, 7 Reproductive and Child Health Centers and 7 Special Hospitals. Endeavoring to facilitate the free medical and health check-up, path lab, treatment, medicine, immunization, etc. in remote areas, SAIL approached the doorsteps of 1.5 lakh underprivileged populace through its Mobile Medical Units (MMUs)/Ambulances and 2500 health camps in 2014-15. In 2014-15, more than 1 Lakh needy people availed free medical care including medicines at our exclusive Seven Health centres (Kalyan Chikitsalaya) for poor. Over 80 lakh people across 450 villages have been connected to mainstream India by SAIL since its inception by construction and repair of roads. Over 10100 water resources have been installed during past five years thereby providing easy access to drinking water and benefitting over 43 lakh people living in far-flung areas. Your Company envisions the aptitude and faculties of the learned, enlightened citizens who can transform the society. The Company owns and run over 129 schools in its townships to provide holistic education to about 60,000 children and is providing assistance to another 629 schools having 95,000 students. Seven Special Schools (Kalyan Vidyalaya), established at Steel Plants' locations exclusively for BPL families, are providing free education, mid-day meals, uniform including shoes, text books, stationary items, school bags, water bottles and transportation to around 1600 students. Scholarships to 1670 deserving undergraduate & postgraduate engineering students, adoption of 152 tribal children in naxal affected areas, nearly extinct Birhore tribes, sponsoring youths for Industrial Training & Nursing course, etc. are the major steps taken for uplifting poor, including OBC, SC, ST, etc. The Company, in association with Akshya Patra Foundation, is providing mid-day meals to 63,000 students of 570 Govt. schools every day in and around Bhilai and Rourkela. In order to bridge the disparity between rural and urban areas and also for comprehensive development of both physical and social infrastructure, 79 villages have been developed as "Model Steel Villages" across the Country (in eight States). To promote use of renewable sources of energy, Solar street lights have been installed, Solar Lanterns and smokeless chullahs have been distributed among the rural people, over 20000 trees have been planted and maintained at various locations. In an effort to align the marginalized masses of remote Saranda forest with the mainstream, SAIL provided ambulances, bicycles, transistors, solar lanterns and has set up an Integrated Development Centre at Digha village in Saranda. SAIL, as a responsible Corporate Citizen, supported the rehabilitation initiatives for the people affected by Natural Calamities like floods in Jammu & Kashmir, Phylin cyclone in Odisha, Flash Floods in Uttarakhand, etc. Vocational and specialised skill development training targeted towards sustainable income generation has been provided to 3000 village youths and 7000 women folks of peripheral villages in 201415, in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing, Welder, Fitter & Electrician Training, Improved agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Piggery, Achar/Pappad/Agarbati making, Screen printing, Handicrafts, Sericulture, Yarn Weaving, Tailoring, Sewing & embroidery, Smokeless chullah making, being a means to live a dignified life. Vocational Training centre for rural and unemployed youths - 'Bhilai Ispat Kaushal Kutir' & Swayamsiddha at Bhilai, Skill Development and Self Employment Training Institute (SDSETI) at Durgapur, Garment Technician Training at Salem, JHARCRAFT centre at Bokaro and Self employment centre "KIRAN" at Kiriburu Ore Mines are benefitting common masses by way of financial inclusion/ SHG/training for income generation and then empowering them to bond with mainstream. Over 800 youths have been sponsored for ITI training at ITCs Bolani & Bargaon and Bokaro Pvt ITI, etc. Over 20,000 rural youth/school students participated in varied events organized by SAIL for promoting the local art, culture and sports at different locations throughout the year. To elucidate Chhattisgarh Lok Kala Mahotsav, Lok Samskrutik Mahotsav, Gramin Lokotsav, Samvardhan : Rural Sports events, Gamin Athletics Competition, inter-village sports tournaments, inter-school girls' sports events and SAIL Khel Mela, being the major events organized during 2014-15. SAIL's efforts as a responsible corporate citizen in Nation building have been recognized by various organizations in the form of awards and accolades during the year such as Golden Peacock Award, PHD Meritorious Award : 'Best Companies for CSR, 2014'; Skoch Order-of-Merit for the Skoch Renaissance Award-2014; Good Corporate Citizen Award-2014; Greentech Gold Award for CSR-2015, etc.. In terms of provisions of the Companies Act, 2013, the Report on Corporate Social Responsibility in the prescribed format is placed at Annexure-XIV. The reasons for not spending the prescribed amount have also been disclosed in the Report. General Disclosures i. During the year, the Company has not accepted any deposits under the Companies Act, 2013. ii. No significant or material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations in future. However, attention of members is drawn to the statement on contingent liabilities in notes forming part of the Financial Statements. DIRECTORS AND KEY MANAGERIAL PERSONNEL Shri N.C. Jha and Mrs. Parminder Hira Mathur resigned from the Board of Directors of the Company w.e.f. 19.09.2014. Shri R.S. Sharma and Shri D.K. Mittal ceased to be Director of the Company w.e.f. 23.09.2014. Shri U.P. Singh ceased to be Government Director of the Company w.e.f. 29.09.2014. Dr. Isher Judge Ahluwalia resigned from the Board of Directors of the Company w.e.f. 10.11.2014. Shri Sunil Barthwal has been appointed as Government Director on the Board of the Company on 22.12.2014. Shri Sujit Banerjee and CA Arun Kumar Srivastava ceased to be Directors of the Company w.e.f. 15.01.2015. Shri Vinod Kumar Thakral ceased to be Government Director of the Company w.e.f. 12.03.2015. Smt. Bharathi S. Sihag has been appointed as Government Director on the Board of the Company on 16.03.2015. Shri H.S. Pati ceased to be Director of the Company w.e.f. 31.03.2015. Shri T.S. Suresh ceased to be Director of the Company w.e.f. 31.05.2015. Shri C.S. Verma ceased to be Chairman & Managing Director of the Company w.e.f. 10.06.2015(A/N) Shri Rakesh Singh, Secretary to the Government of India, Ministry of Steel assumed Additional Charge as Chairman & Managing Director of the Company w.e.f. 11.06.2015(F/N). ACKNOWLEDGEMENT The Board of Directors wish to place on record their appreciation for the support and co-operation extended by every member of the SAIL family. The Directors are thankful to the State Governments, Electricity Boards, Railways, Banks, Suppliers, Customers and Shareholders for their continued co-operation. The Directors also wish to acknowledge the continued support and guidance received from the different wings of the Government of India, particularly from the Ministry of Steel. For and on behalf of the Board of Directors (Rakesh Singh) Secretary, Ministry of Steel, Government of India & Chairman & Managing Director, SAIL (Additional Charge) Place: New Delhi Dated: 14th August, 2015 |