To,
The Members,
Steel Authority of India Limited, New Delhi
The Board of Directors has the pleasure of presenting the 51st Annual Report
of Steel Authority of India Limited (SAIL, the Company) together with the Audited
Standalone and Consolidated Financial Statements for the Financial Year ended 31st
March, 2023.
A. FINANCIAL REVIEW
Financial Results (Rs. crore)
|
Standalone Year ended |
|
Particulars |
31st March, 2023 Audited |
31st March, 2022 Audited |
1 Income |
|
|
(a) Revenue from operations |
104447.36 |
103473.32 |
(b) Other income |
1354.84 |
1042.03 |
Total Income |
105802.20 |
104515.35 |
2 Expenses |
|
|
a) Cost of materials consumed |
62091.10 |
42776.46 |
b) Changes in inventories of finished |
(5160.14) |
(284.99) |
goods, work-in-progress and by- |
|
|
products |
|
|
c) Employee benefits expense |
12053.62 |
12846.24 |
d) Finance costs |
2037.47 |
1697.88 |
e) Depreciation and Amortisation expenses |
4962.52 |
4274.17 |
f) Other expenses |
27438.71 |
26813.46 |
Total Expenses |
103423.28 |
88123.22 |
3 Profit before Exceptional items and |
2378.92 |
16392.13 |
Tax |
|
|
Add / (Less): Exceptional items |
257.99 |
(353.41) |
4 Profit before Tax |
2636.91 |
16038.72 |
Less: Tax expense |
|
|
Current tax |
118.37 |
- |
Deferred tax |
615.47 |
4023.68 |
Total Tax expense |
733.84 |
4023.68 |
5 Net Profit for the period |
1903.07 |
12015.04 |
Other Comprehensive Income (OCI) |
|
|
(i) Items that will not be reclassified to profit or loss |
(566.83) |
(87.22) |
(ii) Income tax relating to items that will not be reclassified to profit or loss |
128.22 |
22.77 |
6 Total Comprehensive Income for the |
1464.46 |
11950.59 |
period |
|
|
Your Company achieved the best Sales Turnover of Rs.1,03,768 crore during the Financial
Year (FY) 2022-23, which is higher by 1% as compared to corresponding period of last year
(CPLY) mainly due to increase in Net Sales Realisation (NSR) of Saleable Steel of 5
Integrated Steel Plants and marginal increase in Sales Volume (2%). During the FY 2022-23,
the decline in the profitability as compared to CPLY is on account of higher input cost
perpetuated mainly by imported coal prices, increase in stores and spares consumption,
repairs & maintenance expenses, increase in purchased power rates, conversion charges,
security expenses, higher usage of raw materials like Iron ore, Limestone and other
ferro-alloys, higher interest charges and depreciation and loss on account of foreign
exchange fluctuation, etc. The decline in the profitability was offset partially by
increase in production volume, improved NSR, lower salaries & wages, better
techno-economic parameters viz. improvement in BF productivity and Coke Rate, lower
imported coal in blend, etc., decrease in Royalty expenses, higher stock valuation rate,
higher dividend income, etc.
Your Company continued its thrust on judicious fund management with timely action for
fund raising and repayment of loans including interest to meet its growth objectives. The
Company had borrowings of Rs. 30,773 crore as on 31st March, 2023 vis-a-vis Rs.
17,284 crore as on 31st March, 2022 (INDAS). The debt equity ratio of
the Company as on 31st March, 2023 has increased to 0.59:1 from 0.33:1 as on 31st
March, 2022 primarily due to increase in borrowings during the FY 2022-23. The net worth
of the Company increased to Rs. 52,139 crore as on 31st March, 2023 from Rs.
52,017 crore as on 31st March, 2022.
Interim Dividend of 10% i.e. Rs. 1.00 per equity share was paid during the FY 2022-23.
The Board of Directors of your Company has further recommended a Final Dividend of
Rs. 0.50 per equity share, subject to approval of Members in the ensuing Annual General
Meeting of the Company, i.e. total dividend for FY 2022-23 being 15% on equity share
capital of the Company. No amount has been transferred to general reserve during the year
under review.
M/s. CARE Ratings, M/s. India Ratings and M/s Brickwork Ratings, RBI approved Credit
Rating Agencies, assigned CARE AA Outlook: Stable', Ind AA Outlook:
Stable' and BWR AA (Stable)' ratings respectively for SAIL's
long-term borrowing programme.
B. OPERATIONS REVIEW
Safety
Your Company is committed to the safety of its employees and the people associated with
it, including those living in the neighborhood of its Plants, Mines and Units. SAIL Safety
Organization (SSO) centrally monitors and guides the Safety Promotional and Fire
prevention activities undertaken at different Steel Plants/Units/Mines/Stockyards. SSO
formulates and prepares appropriate Safety Policies, Procedures, Systems, Action Plans,
Guidelines, etc. and follows up for their implementation, and thereby, helps in providing
Accident-free Work Environment. Plants are ISO-45001 certified, which is an advanced
Safety Management System and as a compliance to this, Hazard Identification and Risk
Assessment (HIRA) has been conducted for most of operation & maintenance activities
and appropriate control measures have been formulated and implemented to either eliminate
the risk or bring it to acceptable limits.
Safety aspects have been incorporated in Standard Operating & Maintenance
Procedures (SOPs & SMPs) which helps in integrating safety with operations and
maintaining necessary technological discipline. System of conducting safety audits and
inspections is in vogue and observations, if any, are complied with at the earliest. As a
new initiative, theme based Safety Audits are being conducted with the help of Industry
experts. Prioritising safety foremost, the Company has engaged Safety Management
Consultant for Safety Culture Transformation, at its Plants in Bhilai, Bokaro, Rourkela
and Durgapur and Burnpur. Relentless e_ orts are also being made by Plants and SSO for
competence building in the area of Safety Management through regular HRD interventions,
LEO workshops, webinars, etc., in-house as well as through external experts, on areas of
concern covering Heads of Shops, Line Managers, Safety Personnel and Trade Union leaders.
System of imparting safety training at induction and on-the-job trainings to contract
workers prior to start of jobs, exists in all the Plants and Units. SSO has recently
launched many new initiatives to reach the lowest strata of the Company. A new initiative
called Suraksha Manthan' for achieving Zero Fatality, with the participation of
Heads of Safety of all Plants/Units, where learnings from incidents/ Near Miss cases, good
safety practices across Plants/Units are discussed and followed up for its implementation.
A safety interaction module named Sampark' has been launched for sensitizing
di_ erent working levels of Plants i.e. HODs, Shift in-charges and Departmental Safety O_
cers. In the beginning of every training programme at Management Training Institute (MTI),
the participants are sensitized on the importance of safety through a customized module
titled Sparsh'.
Bene_ ts of technology are leveraged by extensive utilization of IT in the area of
Safety Management, by way of web portals for sharing important information, safety
suggestions, etc. Good Safety Practices prevailing in the Plants & Units and other
industries are captured and circulated among all for horizontal deployment, knowledge
sharing and bringing improvement. A multi-disciplinary Safety Engineering Department
exists in each of the Steel Plants and Mines to look into their safety needs. The emphasis
is on Systematic
Approach to Safety Management. SSO is also managing the secretariat of the Joint
Committee on Safety, Health & Environment in the Steel Industry (JCSSI), a bipartite
forum which addresses Safety, Health & Environment issues of the Steel Plants with
active involvement of Management and Central & Plant level trade unions and provides
guidelines to the member organizations. Acknowledging the importance of Safety, the
activities and measures undertaken are reviewed at the highest level by the Board Sub
Committee on Health, Safety & Environment.
Operations
The FY 2022-23 has been largely a year of mixed sentiments and performances for the
domestic steel industry. The impact of the Russia-Ukraine con_ ict was felt across the
global steel industry. The in_ ationary pressures due to supply chain bottlenecks in the
post Covid world resulted in shooting up of fuel prices. Coal prices and raw materials
cost put extreme pressure on margins. Also during second quarter, the reduced availability
of rakes at ports severely hampered supply of coking coal to the Steel Plants of SAIL.
During FY 2022-23, SAIL achieved Hot Metal, Crude Steel and Saleable Steel production
of 19.4 MT, 18.3 MT and 17.2 MT respectively. In addition to this, your Company also
achieved, its best annual performance in respect of Techno- economic parameters like Coke
Rate, CDI Rate and BF Productivity owing to focus on better capacity utilisation of bigger
Blast Furnaces (BF) and optimisation of BF operations.
The Research and Development Centre for Iron & Steel (RDCIS) of the Company
provided innovative technological inputs to di_ erent Plants of SAIL, with special
emphasis on process and quality improvement, product development and commercialization.
The continuous activities in respect of product development have led to development of 12
new Steel Products during FY 2022-23. At Bhilai Steel Plant (BSP), the new Blast Furnace
i.e. BF-8 produced 2.54 MT of Hot Metal, surpassing the previous best achievement of 2.47
MT in the previous FY. The new SMS i.e. SMS-III achieved its best ever production of 3.06
MT, surpassing the previous best of 2.73 MT achieved in the previous FY and achieving
103.8% of its installed capacity with three Casters. The Plant produced highest ever
Saleable Steel at 4.82 MT, surpassing the previous best of 4.67 MT achieved in the FY
2021-22. The year witnessed commencement of regular production of Thick Web Asymmetric
Rails in grade (R-260) and pro_ le (60E1A1) from August, 2022 onwards to meet the demand
for these products from Indian Railways. The Universal Rail Mill (URM) and the Rail and
Structural Mill (RSM) produced 9.1 lakh tonnes of Long Rails, thereby surpassing the
previous best of 7.0 lakh tonnes achieved in the FY 2020-21. In addition, the total
loading of Long Rails at 9.38 lakh tonnes was the best ever, surpassing the previous best
of 7.36 lakh tonnes in the FY 2020-21 and 1000 Rakes of Long Rails were dispatched to
Indian Railways in the FY 2022-23. With regard to the 1175 HT grade Rails, trial rolling
was carried out at URM, for which process has been approved by Indian Railways/RDSO. Under
the Product Linked Incentive (PLI) Scheme launched by Government of India, BSP's
applications for Head Hardened Rails and Asymmetric Rails have been approved by Ministry
of Steel for implementation and MOU was signed on 17th March, 2023. The
improvement in production from new Bar and Rod Mill (BRM) at 8.4 lakh tonnes registered
growth of 17% over 7.2 lakh tonnes produced in the previous _ financial year. On
techno-economic front, BSP achieved the highest ever CDI rate at 120 kg/thm surpassing the
previous best of 83kg/thm in FY2021-22. Durgapur Steel Plant (DSP) recorded the best ever
production of Hot Metal at 2.57 MT, surpassing the previous best of 2.52 MT recorded in
the FY 2018-19. DSP also produced highest ever Crude Steel at 2.29 MT and Saleable Steel
2.18 MT, surpassing the previous best of 2.23 MT and 2.12 MT respectively achieved in the
previous FY. The Plant recorded highest ever production from its new Medium Structural
Mill (MSM) at 4.85 lakh tonnes in FY 2022-23 against 4.37 lakh tonnes during FY 2021-22.
Also, the production at 4.06 lakh tonnes from Merchant Mill was highest ever, surpassing
the previous best of 3.96 lakh tonnes achieved in the previous FY.
Rourkela Steel Plant (RSP) registered highest ever production of Hot Metal from BF-5 at
2.77 MT, surpassing the previous best of 2.76 MT achieved in FY 2016-17. Crude Steel
production at 4.04 MT and Saleable Steel production at 3.77 MT was also the best ever,
surpassing the previous best production of 3.99 MT and 3.67 MT achieved in the year
2021-22 respectively.
Bokaro Steel Plant (BSL) registered the highest ever production of Hot Metal at 4.52 MT
with four BFs operation, surpassing the previous best of 4.26 MT achieved in the previous
FY. New SMS (with Concast Route) recorded highest ever production at 0.630 MT, surpassing
the previous best of 0.585 MT achieved in FY 2021-22. Highest ever SMS-II production at
3.49 MT was achieved, surpassing the previous best of 3.39 MT achieved in the year
2018-19. Similarly, Cold Rolling Mill (CRM-III) also recorded highest ever production at
7.1 lakh tonnes, surpassing the previous best of 6.5 lakh tonnes achieved in the previous
FY.
At IISCO Steel Plant (ISP), Hot Metal, Crude Steel and Saleable Steel production at
2.59 MT, 2.42 MT and 2.32 MT were highest ever, surpassing the previous best of 2.51 MT,
2.23 MT and 2.16 MT achieved in FY 2021-22, respectively. The production at new Wire Rod
Mill (WRM) at 4.66 lakh tonnes, surpassed the previous best of 4.65 lakh tonnes achieved
in the FY 2021-22. Further, Bar Mill at 7.75 lakh tonnes and
Universal Structural Mill at 3.62 lakh tonnes also surpassed the previous best of 6.50
lakh tonnes and 2.45 lakh tonnes achieved in the FYs 2021-22 and 2018-19 respectively.
Power
Your Company has always strived to maximize its captive power usage in view of
reliability of power supply as well as availability of power at lower cost vis-a-vis the
grid power. During the FY 2022-23, about 63% of the total requirement of 1393 MW was met
from the Captive Power Plants. This is signifi cant in view of the coal shortages faced by
captive power plants from April to October, 2022 due to national priority being accorded
to Independent Power Producers over Captive Power Producers and other logistics issues.
With an objective to optimize the cost, SAIL has been actively procuring power through
open access route since such opportunity was introduced in Electricity Act, 2003.
Continuing the legacy, this year too, SAIL Plants procured about 321 Million Units (MUs)
of power through Open Access route which also included Green (renewable) power procured
through Short Term Open Access. A major contributor to Green Open Access Power was 55.10
MUs of bagasse-based power from Rajshree Sugar Mills, Coimbatore through Power Exchange
for Salem Steel Plant during the sugarcane crushing season. Your company was able to save
about Rs.44 crore in the FY 2022-23 by procuring cheaper power through Open Access route
as compared to Grid Utility power.
With the objective of enhancing the share of captive power and ensuring supply of
reliable power at optimum cost, the new captive power facility of 250 MW at Rourkela Steel
Plant had been commissioned in March, 2022. Further, the _ first 20 MW Unit of New Captive
Power facility of (2x20) MW capacity at Durgapur Steel Plant by NTPC-SAIL Power Company
Limited (NSPCL), a Joint Venture Company of SAIL & NTPC Ltd., was commissioned on 30th
September, 2022. In this regard, the second 20 MW Unit is expected to be commissioned by
H1 of the FY 2023-24. While, the New Power & Blowing Stations (PBSs) at Integrated
Steel Plants at Bhilai, Rourkela and Burnpur are cogeneration Plants that run entirely on
process gases (Blast Furnace & Coke Ovens gases), generating 8.43% of total power
requirement of your Company, the old Captive Power Plants / Power Blowing Stations at
Bhilai, Rourkela, and Durgapur also utilize the process gases to the maximum, using
minimal amounts of coal. In addition to this, process gases are also provided to NSPCL and
Bokaro Power Supply Co. Ltd. (a JV of SAIL and DVC) for substituting coal as a fuel to the
optimum level feasible vis-?-vis operational e_ ciency. Your Company has always been
focussed on its approach towards achieving better performance parameters with respect to
usage of power purchased from utilities and capitalizing to maximize the rebates and
incentives available in the power tari_ for achieving higher load factor, power factor,
etc. During the FY 2022-23, Rs. 170 crore was received as incentives and rebate in the
power tari_ from grid utilities. It may be mentioned here that most of the grid utilities
raised their power tari_ during the year. Further, import of coal as per Government
guidelines by DVC (grid utility for SAIL Plants / Mines in West Bengal and Jharkhand) and
NSPCL (for Power Plant-3, Bhilai) also led to increase in power tari_ .
Besides above, optimization of electricity consumption in various steel making
processes is a major thrust areas of SAIL Plants for lowering the power consumption per
tonne of production of saleable steel. As a responsible corporate house, your Company has
given adequate emphasis on development and usage of renewable power sources with focussed
approach on Roof Top Solar (RTS) Power Plants. A capacity of 6.342 MWp of Roof Top Solar
power plants has already been installed across SAIL Plants and Units. Further,
installation of 4 MWp _ floating solar plant at ISP and 7.11 MWp capacity rooftop solar
plants at various Plants/ Units of the Company across the Country is in progress. Besides
this, installation of 60 MWp capacity _ floating solar plants over cooling ponds is
envisaged at Plants of the Company. This along with renewable bagasse-based power being
procured for Salem Steel Plant and the proposed 10 MW Small Hydro Electric Plant over
Mandira Dam, Rourkela in Joint venture with Green Energy Development Corporation of Odisha
Ltd. (GEDCOL) are progressively enhancing your Company's green footprint.
Raw Materials
During the FY 2022-23, total requirement of iron ore was met from the captive sources.
Your Company's captive mines produced about 33.78 million tonnes (MT) of iron ore.
However, in case of clean coking coal, out of total requirement, about 2.3 MT was met from
indigenous sources (Coal India Limited & captive sources) and for the balance
requirement of coking coal (14.02 MT), the Company had to depend on imports due to
constraint in availability of required quality, within the Country. In the FY 2022-23,
production from the captive collieries of the Company was about 0.94 MT, out of which 0.37
MT was raw coking coal and balance 0.57
MT was non-coking coal. In case of _ uxes, around 1.36 MT of limestone and 0.45 MT of
dolomite were produced from captive sources. For thermal coal, your Company depends
entirely on purchases from Coal India Limited except for small quantity produced from the
captive mines.
Selling of Iron Ore from Captive Mines in Open Market
About 0.58 MT of iron ore was made available in the open market from the Mines in the
States of Odisha. Further, approval from Jharkhand State Government for selling of iron
ore in the open market is still awaited.
Grant of Environment Clearance (EC)
In order to expedite the process of selling of dump iron ore from captive mines,
proposals for amendment of existing environment clearances were submitted to the MoEFCC
and following ECs have been granted:
Setting up of Pellet Plant with Upstream Slime Bene_ ciation facilitates at
DalliRajhara: Extension for a period of 3 years from 17th April, 2022
granted on 22nd April, 2022.
Topailore lease of Gua Mine: Clearance for mining/ excavation of _ nes at
the rate of 0.6 MTPA granted on 13th December, 2022.
Amalgamated Lease (Barsua-Taldih-Kalta): Clearance for expansion of ROM
capacity from 8.05 MTPA to 16.00 MTPA granted on 28th April, 2023.
Dobil Lease of Chiria Mine: Clearance granted for transportation of iron
ore through road for another 2 years from 23rd January, 2022.
Grant of Forest Clearance
MoEFCC vide Order dated 7th February, 2023 has granted Stage-II Forest
Clearance for diversion of 30.43 ha of forest land under the Jhillingburu-II lease of Gua
Mine.
Operationalization of Kalwar-Nagur Iron Ore Mining Lease of BSP
Ministry of Mines, Government of India vide Order dated 7th March, 2023
directed the Government of Chhattisgarh to extend the lease period of the mining lease of
Kalwar-Nagur Iron Ore Mine upto 31st March, 2025 for starting production and
dispatch from the Mine. This shall facilitate early operationalization of the Mine.
Resumption of Manganese Mining Operations in Bolani Ore Mines
On getting the necessary approvals, mining has commenced on 16th March, 2023
of Manganese @15,000 tonnes per annum in the 6.9 Sq. Mile lease of Bolani Mine.
Resumption of Production at Chasnalla Colliery
On account of the unavailability of sand for stowing, coal production at Chasnalla
Colliery was suspended from November, 2020. Subsequently, on obtaining the necessary
approval for stowing with a mixture of sand and bottom ash and both being available,
production at Chasnalla Colliery resumed from 22nd July, 2022.
Commencement of Dispatch of Iron Ore in Rowghat
The iron ore dispatch by road from Anjrel Block of Rowghat Mine to Antagarh Rail
Siding, on the Dalli-Rajhara-Rowghat Rail Line, commenced from 22nd August,
2022 on resolution of the issues regarding local agitation by the District Administration.
Sales & Marketing
During the Financial Year (FY) 2022-23, your Company achieved Saleable Steel sales
volume of around 16.21 million tonnes (MT), registering a growth of about 0.4% over
previous year. With Home Sales of 15.04 MT for Mild Steel, there has been a growth of
about 8.3% over FY 2021-22. While the overall exports declined over FY 2021-22, the
Company was able to achieve highest ever exports of about 1.44 lakh tonnes of various
products to Europe during FY 2022-23. During the FY 2022-23, the Global Steel business
scenario has been under pressure from the impact of the Russia-Ukraine con_ ict and its
multi-fold repercussions (from raw material supply to logistics to insecurities in trade
and the impact of sanctions) as also, the signifi cant rise in Covid-19 cases in China
during FY 2022-23, which went on to impact both supply and demand.
The domestic steel business witnessed rising cost of production during the beginning of
FY 2022-23, resulting in increase in steel prices. Higher International price level for
various steel products during initial months of Q1 helped in boosting domestic price
sentiments. However, Global Steel prices remained mostly south-bound thereafter. Lower
Exports and lower international prices resulted in higher domestic availability, which in
turn kept domestic prices under pressure during major part of the year. The Company
adopted focused approach for improving its sales in domestic markets by entering new
market segments, optimizing inventory levels and making e_ orts to improve price
realization in a highly competitive scenario.
Your Company has been ful_ lling the entire demand of steel tracks from Indian Railways
for decades. A total of 11.70 lakh tonnes of Rails were supplied to Indian Railways in FY
2022-23, the 260m long-rail welded-panel component in the total Rail supply being about
80%, which is highest ever and registered a growth of 35% over the previous year. It may
be mentioned that 100% of the 60 kg Rail supplied to Railways during FY 2022-23 comprised
the newly developed R-260 grade in 60E-1 pro_ le. In addition to this, various
technological developments, including installation of new _ ash butt welding machine at
Rail & Structural Mill, Bhilai Steel Plant have been carried out to improve the supply
component of Long Rail panels, as per demand from Indian Railways. Production of End
forged Asymmetrical Rails and 1175HT/R350HT Grade Rails has been envisaged under
Production Inventive Linked 1.0 Scheme of Steel Ministry, Government of India.
SAIL has been the pioneer and the only domestic producer catering to the forged steel
wheel requirements of Indian Railways. In addition to being the largest domestic producer
of Loco Wheels for Indian Railways, over the years, a number of wheel pro_ les have been
developed by SAIL, which have substituted imports, thereby, furthering the cause of
Atmanirbhar Bharat initiative of the Government of India. In this regard, all-time best
supply of 31,567 numbers of locomotive wheels to Railways was achieved during the FY
2022-23. Apart from this, your Company also supplied highest ever 6,929 numbers of LHB
Axle in FY 2022-23, also an import substitution item.
Your Company's presence in certain critical areas of Defence has been
strategically signifi cant with supplies of around 730 tonnes against _ first commercial
order for High Strength Steel Plates for Underwater Applications received from Indian Navy
during FY 2022-23.
Continuing the journey for increasing sales of value added and special quality products
to the consumers, SAIL's basket in FY 2022-23, inter-alia, included High Strength
Steel Plates for under water applications; High Carbon Wire Rod in HC82B for railway
sleepers, concrete electric poles; Cable Armour Quality(CAQ) Wire Rod Coils; IS 2830C25HMn
MAV55 grade semis for use in solar panels; High Strength Higher Coating Galvanized Coil IS
277 GP 350 + 450 GSM grade for Grain Silos; SAIL SeQR Fe550D TMT in 8mm to 20mm for Retail
segment; NPB 600 in E410 BR grade for Defence; HRC IS 11587 for Containers / Wagons.
The brand "SAIL SeQR" for TMT has been further strengthened by clocking sales
of 5.6 lakh tonnes during FY 2022-23, compared to 3.8 lakh tonnes in the previous year,
thereby registering a growth of 47%. In addition to this, brand NEX' for
Structurals is also being promoted. Your Company is working towards expanding the 2-Tier
and 1-Tier distributorship networks across India, which will further strengthen our
position in B2C space. 25 more distributors were added in 1-Tier during the FY 2022-23,
thereby reaching a total of 38 as on 31st March, 2023. With regard to 2-Tier,
for giving boost to sales through Retail Channel, SAIL has a strong network of
distributors and dealers across the Country with 42 distributors and 4734 dealers as on 31st
March, 2023. Further, the Company has achieved highest ever retail sales of 8.26 lakh
tonnes with a growth of 20% over the previous year. Under "Mission Poorvodaya"
Scheme by Ministry of Steel, an Incentivization Scheme"Ispati Ilakon Ka
Vikas-SAIL Ke Saath" was introduced by SAIL for development of MSMEs based in the
districts in which its Integrated Steel Plants are located. During the FY 2022-23, more
than 90,000 tonnes of various steel products have been sold to these MSMEs, registering a
growth of around 50% over the previous year.
Further, in line with National Steel Policy, to improve per capita consumption of steel
in the Country, more than 350 "Gaon Ki Ore" workshops were organised during FY
2022-23 across India for propagating steel usage. In addition to this, your Company also
participated in a number of trade fairs and exhibitions related to steel sector viz. Steel
Construction
Expo 2022 at Hyderabad, Defence Expo 22 at Gandhinagar, Indian Railway Path Way
EngineersIPWE'23 Seminar at Kolkata, UP Global Summit Lucknow, IESS Chennai,
CREDAI (Vijayawada), SARAS-22 (Vizag) and Krishi Darshan Expo at Hisar, to name a few.
With regard to Industry 4.0, the Warehousing Group of Marketing Organisation has rolled
out various initiatives including implementation of unmanned weighbridge system &
automated entry / exit system and Integrated Vehicle Tracking System (IVTS) in some
warehouses. With 680 numbers of e-transactions taking place through SAIL on-line portal
SAIL Suraksha', the small customers are showing their interest and con_ dence
in the e-portal, having the tag line 'Ab Nishchint ho Jayein',' for
buying of SAIL SeQR TMT Bars. Your Company has been contributing to nation building since
inception by servicing the requirement of various Infrastructure Projects and also
projects of Strategic Importance. During the year, SAIL has supplied signifi cant quantity
of Steel to Power Projects, Road, Rail, Airport Infrastructure Projects, Oil & Gas
Sector, etc., the major projects being Subansiri Lower Hydroelectric Project (SLHEP) on
Assam Arunachal border, Crude Oil Import Terminal (COIT) at Paradip, Central Vista Project
Delhi, Delhi Vadodara Expressway, Delhi Katra Expressway, Delhi Mumbai Expressway,
Varanasi Ring Road, Ahmedabad Mumbai High Speed Rail, Zozila Tunnel, Z-morh Tunnel,
on-going Dhubri-
Phulbari Bridge Project over the Brahmaputra river, Kolkata Metro Twin Tunnel below
Hooghly river bed, etc.
Your Company with a focused and strategic approach has a developed leadership position
in consumer mind space and is striving sincerely to bridge the ever changing expectation
gaps with improved services, products and processes, in an ever evolving and increasingly
demanding business scenario.
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 FYs 2022-23 and
2021-22 is given below: (Rs. crore)
Particulars |
2022-23 |
2021-22 |
Total Amount of Procurement |
9508.86 |
6561.33 |
Total Procurement from MSE |
3110.30 |
2233.73 |
% age Procurement from MSE |
32.71 |
34.04 |
Modernisation & Expansion Plan
A capital expenditure of Rs. 5,474 crore has been incurred during FY 2022-23 against
the Revised Budget Estimate of
Rs. 6,803 crore. Capex planned for the FY 2023-24 is at Rs. 6,800 crore. The details of
Addition, Modi_ cation & Replacement (AMR) Schemes under implementation are given in
the Management Discussion & Analysis (MD&A) Report.
C. HUMAN RESOURCE MANAGEMENT REVIEW
Your Company recognizes contribution of its Human Resources in providing it the
competitive advantage. The Company has achieved its present level of excellence through
investment in its human resource, where skill and knowledge constitute the basis of every
initiative- be it technology or innovation. Developing skills and capabilities of
employees to improve manpower utilization and labour productivity is the key thrust area
of Human Resource Management (HRM) in the Company.
Your Company provides an environment conducive for learning, encourages adoption of
best practices in every area and nurtures creativity and innovation among employees. Human
Resource initiatives in SAIL are focused on developing team spirit, employee empowerment
and their involvement in various improvement activities. Strategic alignment of HRM to
business 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 Labour Productivity (LP) of 521 TCS/Man/Year in FY 2022-23. The
manpower strength of the Company was 59,186 nos. as on 1st April, 2023 with
manpower rationalization of 2,995 nos. achieved during the FY 2022-23. 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 2013-14, onwards is depicted below:
Manpower & Labour Productivity during last 10 years
Developing Employee Capabilities & Competencies
Your Company believes that people's development is the key for overall growth of
the organisation. Training and development activities have facilitated development of
employees' knowledge and skills, resulting in advancement of competencies, thereby
leading to attainment of Organisational goals and objectives. SAIL has been making
sustained efforts through various training and development activities with focus on
preservation, transfer and improvement of skills, knowledge and technology in
collaboration with reputed organizations and development of effective managerial
competencies in association with premier institutes.
Preparing employees for tomorrow is being given a major thrust with a view to enable
them to effectively take up challenges and discharge new roles and responsibilities.
Overall 46,818 employees were trained against target of 29,485 employees during the FY
2022-23 on various contemporary technical and managerial modules. The learning and
development continuity of the Organization was maintained through various online
interventions, apart from the regular programs and e-learning modules being made available
in the in-house e-learning portal.
Harmonious Employee Relations
SAIL has maintained its glorious tradition of building and maintaining a conducive and
fulfilling employer-employee relations environment. The healthy practice of sorting out
and settling issues through discussions with trade unions/ workers' representatives
enabled the Company in ensuring workers' participation at different levels and
establishing a peaceful industrial relations climate. Some of the bipartite forums are
functioning since early seventies and are sufficiently empowered to address different
issues related to wage, safety, and welfare of workers, thus, helping in establishing a
conducive work environment.
Bipartite forums like National Joint Committee for Steel Industry (NJCS), Joint
Committee on Safety, Health & Environment in Steel Industry (JCSSI), etc. with
representation from major central Trade Unions as well as representative Unions of
Plants/Units meet on periodic basis and jointly evolve recommendations/ action plans for
ensuring a safe environment and harmonious work culture which gets substantiated from the
harmonious Industrial Relations witnessed over the years by SAIL Plants/ Units, marked
with diverse work culture at multi-locations. In addition, Quality Circles, Suggestion
Schemes, Shop Welfare Committees, Safety Committee, Canteen Management Committee,
Productivity Committee, etc. also offer multiple avenues for enhanced workers'
participation. Workers are also kept abreast of strategic business decisions and their
views sought thereon through structured/interactive workshops. Communication is done in a
structured manner with employees at various levels on a wide range of issues impacting the
Company's performance as well as those related to employees' welfare across the
Company. Mass communication campaigns are undertaken at Director In-charges'/Senior
Officers' level involving structured discussion with large group of employees. These
interactive sessions help employees to align their working with the goals and objective of
the Company leading to not only higher production and productivity but also enhance the
sense of belongingness of the employees.
Grievance Redressal Mechanism
Effective internal grievances redressal mechanism has been evolved and established in
SAIL Plants and Units, separately for Executives and Non-executives. Joint grievance
committees have been set up at Plant / Unit level for effective redressal of grievances.
SAIL Plants/Units are maintaining grievance handling mechanism and employees are given
an opportunity at every stage to raise grievances relating to wage irregularities, working
conditions, transfers, leave, work assignments, welfare amenities, etc. Majority of
grievances are redressed informally in view of the participative nature of environment
prevailing in the Steel Plants/Units. The system is comprehensive, simple and flexible and
has proved effective in promoting harmonious relationship between employees and
management.
126 staff grievances were received during the FY 2022-23 and 42 grievances were pending
from previous year, 157 staff grievances have been disposed of during the year, achieving
93% fulfillment and leaving 11 grievances outstanding at the end of FY 2022-23.
Further, during FY 2022-23, 550 grievances were received under Centralised Public
Grievance Redressal and Monitoring System (CPGRAMS), a National level online system
managed by Department of Administrative Reforms and Public Grievance (DARPG), Government
of India.
The Status of Grievances received and disposed from 1st April, 2022 to 31st
March, 2023 is as under:
S. No. |
Particulars |
Received (including Brought Forward) |
Disposed |
Average Time taken for Disposal (Days) |
Time allowed as per Guidelines (Days) |
1 |
Public Grievances |
456 |
448 |
12 |
45 |
2 |
Appeals |
94 |
88 |
|
|
|
Total |
550 |
536 |
|
|
Remuneration Policy
In SAIL, pay and other benefits for executives are based on the Presidential Directives
issued by the Ministry of Steel, Government of India. Presidential Directives for revision
of pay scales of Board level and below Board level executives were issued by the Ministry
of Steel vide letter dated 18th November, 2021 w.e.f. 1st January,
2017 notionally and the actual payment was made w.e.f. 1st April, 2020. In case
of Non-executive employees, the wages including perks were finalized/ revised in bipartite
forum of National Joint Committee for Steel Industry (NJCS) with the approval of Ministry
of Steel on 18th November, 2021. The pay scales have been implemented
notionally w.e.f. 1st January, 2017 and the actual payment was made w.e.f. 1st
April, 2020. The Perks and Allowances under Cafeteria Approach have been implemented
w.e.f. 18th November, 2021. In terms of notification dated 5th June,
2015 issued by Ministry of Corporate Affairs, Government of India, the provisions of
section 197 of the Companies Act, 2013 are not applicable to Government Companies. As
such, the disclosures to be made in the Board's Report in respect of overall maximum
managerial remuneration and managerial remuneration in case of absence or inadequacy of
profits are not included in this Report.
Initiatives for Socio-economic Development of SCs /STs & Other Weaker Sections of
the Society
SAIL Plants and Units including Mines are situated in economically backward regions of
the Country with predominant SC/ST population. Your Company has made commendable
contribution to the overall development of civic, medical, educational and other
facilities in these regions. Some of the contributions are:
Establishment of SAIL Steel Plants in economically backward areas has given a
fillip to the economic activities, thus, benefiting the population in the peripheral areas
with different types of services. Steel Townships developed by SAIL have the best of
medical, education and civic facilities and are like an oasis for the local Scheduled
Castes, Scheduled Tribes and other population who share the benefits of prosperity and
development along with SAIL employees.
Recruitment of non-executive employees, around 83% of the total employees, is
carried out mainly on regional level and hence, a large number of SCs/STs and other weaker
section of the society get the benefit of employment in SAIL.
Over the years, a large group of ancillary industries have also developed in the
vicinity of Steel Plants. This has created opportunities for local unemployed persons for
jobs and development of entrepreneurship.
For jobs of temporary & intermittent nature, generally contractors are
engaged for executing job contracts wherein they deploy workmen from the local areas,
which again provides an opportunity for employment of local candidates from economically
weaker section.
ur Company has undertaken several initiatives for the socio-economic development
of SCs/STs and other weaker sections of the society which are mainly as under:
Special Schools have been started exclusively for poor, underprivileged children
at five Integrated Steel Plant locations. The facilities provided include free education,
mid-day meals, uniforms including shoes, text books, stationery items, school bags, water
bottles and transportation in some cases.
No tuition fee is charged from SC/ST students studying in the Company run
schools, whether they are SAIL employees' wards or non-employees' wards.
Free medical health centres have been set up at Bhilai, Durgapur, Rourkela,
Bokaro and Burnpur (Gutgutpara) providing free medical consultation, medicines, etc. to
the peripheral population mainly comprising of SC/ST and weaker sections of society.
SAIL Plants have adopted tribal children. They are being provided free
education, uniforms, text books, stationery, meals, boarding, lodging and medical
facilities for their overall growth at residential hostels, Saranda Suvan Chhatravas,
Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana for the nearly extinct Birhor Tribe.
For Skill Development and better employability, tribal school pass-outs have been
sponsored for coaching in premier institutes for IIT/JEE entrance examinations and for
trainings along with monthly stipend, accommodation, transportation and food facility at
various ITIs, Nursing and other vocational training institutes.
Implementation of Presidential Directives on Reservation for SC/ST/OBC, etc.
Your Company follows Presidential Directives on Reservation for Scheduled Castes
and Scheduled Tribes in the matter of recruitments and promotions. As on 1st
April, 2023, out of total manpower of 59186, 9998 belong to SCs (16.9%), 9417 belong to
STs (15.9%).
Liaison Officers have been appointed as per Presidential Directives for due
compliance of the Orders and instructions pertaining to reservation for SCs/STs/OBCs/ PWDs
at Plants/Units of SAIL.
SC/ST/OBC Cell is functioning in all the main Plants/Units. A member belonging
to SC/ST community is associated in all Departmental Promotion Committees (DPCs)/
Selection Committees. A sufficiently senior level officer of SC/ST category is nominated
for the purpose as per the level of the Recruitment Board /Selection Committees/DPC.
Out of the total manpower of 59186, number of OBCs is 9594, which is 16.2% of
the manpower. Reservation for OBCs came into force with effect from 8th
September, 1993. OBC candidates joining prior to this date are shown against the
Unreserved (UR) category. Liaison officers have been appointed for due compliance of
orders and instructions pertaining to reservation for OBC at Plants/ Units.
Internal workshops are conducted at regular intervals through an external expert
for Liaison Officers for SC/ ST/OBC and other dealing officers of SAIL Plants/Units to
keep them updated on the reservation policy for SC/ST/ OBCs and other related matters.
Plants/Units of SAIL have SC/ST Employees' Welfare Associations which
conduct regular meetings with Liaison Officers on implementation of reservation policy
& other issues. In addition, an Apex level umbrella body namely SAIL SC/ST Employees
Federation also exists in SAIL to represent the issues of SC/ST Employees in a coordinated
manner.
Implementation of Right to Information Act, 2005
The provisions under the Right to Information Act, 2005(Act) are being complied by all
the Plants and Units of SAIL. All statutory reports, including Annual Report, are being
sent to Ministry of Steel and also being uploaded on the website of the
Company-www.sail.co.in. Your Company has appointed Public Information Officers
(PIO)/Assistant Public Information Officers and Appellate Authorities and Transparency
Officer in each Plant and Unit under Sections 5 and 19(1) of the Act for speedy redressal
of the queries received under the Act. Under Section 5(5), all the officers/ line managers
responsible for providing information to the PIO are called Deemed PIO, and are made
equally responsible as PIO, towards timely submission of information to the applicant.
An exclusive RTI Portal has been developed with link available on the website of the
Company. All the Plants/Units have listed 17 manuals and details of Authorities under the
Act are uploaded on the website of the Company. Quarterly Returns and Annual Returns on
implementation of the Act are being submitted online through the CIC portal.
Implementation of online request has already been introduced from 1st May,
2015. A compilation of Record Retention Policy of various functions of Corporate Office
has also been uploaded on the website of the Company. Awareness Programs/Workshops on RTI
have been organised across Plants/ Units.
SAIL received a total of 2,476 applications and 465 appeals under the Act during the FY
2022-23 and all of them have been disposed of within the time frame stipulated under the
Act. CIC has also taken up 68 cases and most of these cases were disposed of in favour of
the Company.
Since enactment of the Act, SAIL has received a total of 52,496 applications and 8,053
appeals up to 31st March, 2023, which were disposed-o_ within the stipulated
time. Out of these, 1,108 cases were taken up by the CIC and most of these cases were
disposed of in favour of the Company.
Citizen Charter
Your Company is totally committed to excellence in public service delivery through good
governance, by a laid down process of identifying citizens, our commitment to them in
meeting their expectations and our communication to them of our key policies, in order to
make the service delivery process more effective.
SAIL's Citizen Charter has outlined commitment of SAIL towards its stakeholders,
thereby empowering them to demand better products and services. Objectives of the
Citizen's Charter of SAIL may be summarized as below: Ensuring citizen-centric focus
across all its processes by adopting Total Quality Management Principles for improvement
of products and services.
Ensuring effective citizen communication channels.
Demonstrating transparency and openness of its business operations by hosting
the Citizen's Charter on the Corporate website.
Working towards the delight of citizens, by fail-safe processes and in case of
exigencies leveraging its service recovery processes, like Grievance Redressal, Handling
Complaints, etc.
Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013:
Your Company has set up Internal Complaints Committees in line with the requirement of
the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal)
Act, 2013. These Committees have been set up to redress complaints, if any, received
regarding sexual harassment. All employees of the Company are covered under these Rules.
The details of sexual harassment complaints received and disposed of during the year
2022-23 are as under:
Particulars |
No. of Complaints |
Number of complaints pending as on 1st April, |
|
|
1 |
2022 |
|
Number of complaints received in 2022-23 |
8 |
Number of complaints disposed of during 2022-23 |
7 |
Number of complaints pending as on 31st March, |
2 |
2023 |
|
D. AWARDS & ACCOLADES WON DURING THE YEAR
Your Company has won the following awards during the FY 2022-23:
SAIL achieved 3rd Place in the 17th National Awards for
Excellence in Cost Management, 2019 in the Manufacturing Category-Public, having Turnover
more than Rs.10,000 crore.
SAIL was felicitated for emerging as the topmost CPSE buyer of products and
services on GeM during the FY 2021-22.
Environment Management Division bagged the Greentech Environment Award 2022 for
outstanding achievements in "Environment Protection" Category by the Greentech
Foundation.
RSP and IISCO Steel Plant awarded with 1st prize and 2nd prize
respectively in the National Energy Conservation Award 2022 for Energy Conservation in the
Integrated Steel Plant category.
Durgapur Steel Plant adjudged as winner of "Sustain Award 2022"
(Indo-German Sustainability award on
Industrial Water Management) under the category Large Scale Industry' by the
Indo-German Chamber of Commerce (IGCC) and Deutsche Gesellschaft f?r Internationale
Zusammenarbeit GmbH (GIZ) India.
BSP, DSP, BSL and RSP adjudged 4 & 5 Star Rating in Productivity
Excellence Award 2022" organized on the theme Productivity, Green Growth and
Sustainability' by Orissa State Productivity Council, 25th February, 2023.
Salem Steel Plant won 2nd Prize in IIM Sustainability Award in the
secondary Alloy Steel Plant Category, 14th November, 2022.
Salem Steel Plant awarded with JCSSI Ispat Suraksha Puraskar for 2022 & 2023
for No fatal accidents in Plant and No fatal accident involving Contract Workers, on 22nd
March, 2023.
E. ENVIRONMENT MANAGEMENT
Within the ambit of notified environmental standards applicable for emission and
discharge of pollutants into the environment and rules pertaining to eco-friendly
management of various wastes, being generated inside the Plant premises as well as in the
townships, SAIL Plants and Mines operate their processes without disturbing the ecological
balance, rather preserving the same. Your Company has also drawn its environmental vision
in consonance with the Corporate Environmental Policy, which not only addresses the need
for compliance of prescribed norms but also emphasizes on striving to go beyond. Besides,
your Company is committed to address the stakeholders' concerns and communicate its
environmental philosophy to all the stake holders. The Corporate Environmental Policy is
available at the website of the Company-www.sail.co.in.
SAIL Plants and Mines are e_ ciently operating the pollution control devices/facilities
and maintaining them regularly through revamping/ refurbishing/revitalization and also
up-grading them as and when required, for the purpose of complying with the applicable
environmental standards, which are becoming more and more stringent with each passing day.
Concerted e_ orts have resulted in achieving major improvements during the FY 2022-23 over
the last _ ve years in the following areas:
The Specifi c Particulate Matter (PM) Emission Load has reduced by more than 19%
to 0.57 kg/tcs.
Specifi c Water consumption has reduced by more than 11 % to 3.06 m3/tcs.
Specifi c E_ uent Discharge has reduced by more than 27% to 1.32 m3/tss.
Specifi c E_ uent Load has reduced by around 39% to 0.052 kg/tcs.
Utilisation of BF Slag has increased by more than 10% to 105.77%.
BOF Slag Utilisation increased by more than 61% to 89.80%.
Specifi c CO2 emission has been reduced by more than 3% to 2.49 T/tcs.
Total Solid Waste Utilisation has increased by more than 19% to 101.48%.
(Values more than 100% indicate utilization from old stock)
During the FY 2022-23, following projects were completed to improve upon environmental
footprint:
Replacement of Multi-Cyclones with Electrostatic Precipitator at Sinter Plant-II
of BSP
Installation of ESP based de-dusting system at Sinter Plant-II of BSP.
Installation of Cast House De-fuming System at Blast Furnace-7 of BSP.
Recirculation of clean pit water from Wheel and Axle Plant and scale pit water
from Merchant Mill at DSP
Installation of Sewage Treatment Plant of 4 MLD capacity at RSP.
Modernisation of BOD Plant on Zero Liquid Discharge (ZLD) at RSP.
Recycling of waste water from Sinter Plant and PBS including TRT at ISP.
Installation of Sewage Treatment Plant for treating 140 m3/hr of
sewage water at ISP.
Installation & up-linking of online e_ uent monitoring systems at the ETP
outlets of the Gas Cleaning Plants of Submerged Arc Furnace (SAF)-1&2 and SAF-3 of
CFP.
Adoption of Energy-E_ cient Technologies and State-of- the-Art Pollution Control
Equipment/Facilities
Your Company has implemented latest state-of-the-art clean technologies and best
available and feasible pollution control facilities in the course of its Modernization and
Expansion Plan and thereafter, in its drive for adoption of cleaner technologies. Some of
the major clean technologies/ latest pollution control facilities installed are as under:
Tall Coke Oven Batteries along with Coke Dry Cooling Plant, Land based Pushing
Emission Control System, Computerised Combustion Control System, etc. at BSP, RSP and ISP.
Sinter Plant integrated with improved ignition system (multi-slit burners),
Waste Heat Recovery facility from sinter cooler, etc. at RSP and ISP.
Blast Furnace of higher capacity, equipped with Top Pressure Recovery Turbine,
Waste Heat Recovery facility, Pulverised Coal Injection and Cast House De-dusting System
at BSP, RSP and ISP.
Hot Metal handling using Torpedo Ladle at BSP, RSP and ISP.
Progressively switching over to Cast House Slag Granulation Plant from off site
slag granulation facility.
Phasing out of energy-intensive ingot route with continuous casting.
Walking Beam Reheating Furnace (RHF) in place of pusher type RHF at the Rolling
Mill for reducing energy emission.
consumption as well as CO 2
Introduction of Variable Voltage Variable Frequency (VVVF) drives in Plant
machineries.
New BOF Converters provided with a dedicated gas holder at SMS-III of BSP and
SMS-I & II of BSL, for recovery and its use as fuel.
New Gas-_ red boilers for power generation at BSP, DSP and ISP.
Dog House for secondary emission control at all new Converters. Retro_ tting of
secondary emission control system is being taken up in phased manner in case of old
Converters.
Installation of energy-e_ cient LED lights instead of conventional lighting
systems at Plants and Units.
MoU signed between IISCO Steel Plant and IIT, Bombay for Carbon Capture, Utilisation
and Sequestration
Carbon Capture, Utilisation and Sequestration (CCUS) is one of the technologies that
can mitigate the carbon emission from the Iron and Steel Industry and has immense
potential to help the Country meet its emission targets, while ensuring the sustainability
of the sectors critical to growth of the Indian economy. With the aim of collaborating in
the area of CCUS, an MoU has been signed between IISCO Steel Plant and IIT, Bombay for
carbon capture, its utilization and geological sequestration in nearby CBM wells. This
shall be an important milestone in SAIL's journey towards carbon neutrality.
Technology Level for Decarbonisation
M/s. M. N. Dastur has been engaged as a consultant in Bokaro Steel Plant to carry out a
study for preparation of its GHG inventory as well as a comprehensive action plan for
reduction of GHG emission. The study shall also include the carbon sequestration
separately by trees and technologies and recommendations for adoption of emerging
decarbonisation technologies either by retro_ tting or through expansion-cum-modernization
program.
Life Cycle Inventory Study
Under the framework of World Steel Association, Life Cycle Inventory study has been
conducted for products from BSP, RSP and BSL.
Enhancing utilization of wastes through application of 4R's (Reduction, Reuse,
Recycling and Recovery)
Your Company is committed to reduce solid waste generation and maximise its
utilisation to achieve 100% and has adopted the "4R's Policy" (Reduce,
Recover, Recycle and Reuse) across all its processes.
With a view to enhance utilisation of BOF Slag, a R&D project proposal on
"Development of Steel Slag based cost e_ ective eco-friendly fertilizers for
sustainable agriculture and inclusive growth" has been taken up through ICAR-Indian
Agricultural Research Institute, under the guidance of the Ministry of Steel. The project
will ensure symbiotic growth of steel industry and agriculture.
SAIL has also taken steps for utilisation of BOF slag in rural road construction
under Pradhan Mantri Gramin Sadak Yojna (PMGSY).
As a step towards environment friendly disposal of waste plastics, Bhilai Steel
Plant has taken up a project in association with RDCIS for charging waste plastic beads
into Coke Oven Batteries.
Switching over to LED Illuminating System
Your Company is gradually shifting to more energy-e_ cient and durable LED lighting
system from conventional lighting system in consonance with the Government of India's
initiative "Unnat Jyoti by A_ ordable LEDs for All (UJALA) Scheme". In this
respect, around 7.34 lakh LED lights have already been installed across all the Plants and
Units of the Company. Further, all upcoming projects will be having LED lighting systems
only.
Environmental Management System (EMS)
Environmental Management System (EMS) linked to ISO:14001 is a set of processes and
practices that enable an organization to reduce its environmental impacts and increase its
operating e_ ciency. Implementation of EMS has helped SAIL's Plants and Mines to
ensure performance within the applicable regulatory requirements.
The EMS (ISO-14001) was implemented at all the Plants and the Company is striving to
cover all the Mines under its purview to further its commitment towards environment. In
the recent years, Barsua Iron Ore Mine, Gua Ores Mine, Kiruburu and Meghahatuburu Iron Ore
Mines, Bolani Iron Ore Mine, Manoharpur Iron Ore Mine, Dalli Iron Mine and thirteen
warehouses (Ahmedabad, Hyderabad, Ghaziabad, Faridabad, Vizag, Chennai, Mumbai, Delhi,
Durgapur, Dankuni, Bokaro, Bangalore and Kanpur) of CMO have also been ISO 14001 Certifi
ed.
Eco-restoration Projects
Restoration and rehabilitation of degraded ecosystem is essential for maintaining and
enhancing bio-diversity as well as replenishing the ecosystem services. After the degraded
landscapes in and around Purnapani Limestone Mines in Odisha had been successfully
restored, fresh initiative has been taken for eco-restoration of Meghahatuburu Iron Ore
Mines and Kiriburu Iron Ore Mines. An MOU has been signed with Institute of Forest
Productivity, Ranchi for eco-restoration of mined out area and waste dumps at both the
Mines. The work is under progress.
Harnessing Renewable Energy
Your Company has implemented many schemes for promotion of renewable energy in its
Plants, Mines and peripheral villages/areas. In this regard, in addition to setting up of
6.387 MW solar units, most of the Guest Houses and Hospitals have also been equipped with
Solar Water Heaters/ Solar Lighting Systems. Besides, some of the major initiatives
undertaken towards implementation of renewable energy projects are under advanced stage of
installation, which include setting up of (i)10 MW Hydel Power Plant at Mandira Dam, RSP,
under a Joint Venture initiative with Green Energy Development Corporation of Odisha
Limited (GEDCOL); (ii) 6.145 MW roof top Solar Units on di_ erent buildings at the various
Plants/ Units locations under Ministry of New and Renewable Energy (MNRE) Scheme, out of
which, 2.045 MW roof top Solar Power units have already been installed on various
buildings of SAIL Plants & Units. Further, another 1.34 MW solar capacity is under
installation; and (iii) 4 MW _ floating solar power unit plant on the cooling pond of ISP.
Plantation
Your Company realizes the role of plantation in overall environmental management
initiatives. It is a well-known fact that plants play an important role in balancing the
ecosystem and function as a carbon sink. Such plantations are established to foster native
species and promote forest regeneration on degraded lands as a tool of environmental
restoration. The greenery developed by a_orestation adds to the aesthetic environment,
which becomes dust and noise
barriers and also a natural sink/absorber of CO 2. Keeping the
enormous contribution of the plants in mind, SAIL has long been adopting extensive
a_orestation program religiously in its Plants and Mines since its nascent stage. Giving
special thrust for plantation, more than 2.8 lakhs of saplings have been planted during
2022-23. More than 21.82 million saplings have been planted across SAIL Plants and Mines
till date.
F. STRATEGIC INITIATIVES OF THE COMPANY
Your Company has adopted a multi-pronged approach that includes organic growth,
brown-field projects, technology leadership through strategic alliances, ensuring raw
material security by developing new mines, diversifying in allied areas, etc. In line with
the above approach, SAIL has formed Joint Venture Companies in different areas viz. power
generation, rail wagon manufacturing, slag cement production, securing coking coal
supplies from new overseas sources, etc.
Disinvestment of SAIL Plants
The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 27th
October, 2016 had accorded in principle' approval for strategic disinvestment
of three units of Steel Authority of India Limited (SAIL) viz. Visveswaraya Iron &
Steel Plant (VISP), Bhadravati, Karnataka, Salem Steel Plant (SSP), Tamil Nadu and Alloy
Steels Plant (ASP), Durgapur, West Bengal.
Expression of Interest (EOI) of ASP, SSP and VISP was issued on 4th July,
2019. EOI bids were opened on 10th September, 2020 and the eligible bidders of
VISP and SSP were shortlisted. In case of ASP, no EOI was received. The Confidential
Information Memorandum (CIM), Request for Proposal (RFP) and Business Transfer Agreement
(BTA) were issued to the shortlisted bidders of SSP and VISP. After two unsuccessful
attempts of disinvestment of ASP through EOI, DIPAM has requested Ministry of Steel to
examine the issue.
Meanwhile, SAIL is preparing viable options for upgradation/ modernization of ASP.
DIPAM has informed SAIL that it has been decided that the existing EOI of VISP be
annulled and the process for closure of VISP be initiated. SAIL Board has in-principle
approved the closure of VISP, in its meeting held on 16th January, 2023. In
case of SSP, as per the revised timelines, non-financial bid and financial bid are to be
submitted physically to the Transaction Advisor by 21st November, 2023.
Business Excellence Initiative
Most of SAIL Plants/Units are certified to ISO 9000, ISO 14000, ISO 45000, SA 8000, ISO
50000 and ISO 27000 Management Systems. Empanelment of Certification Agencies has led to
various benefits, significant among them being Reduction in Audit Man-Days, Single
Certification Agency for all Management Systems of a Plant/Unit, Ease of Operation in
engaging Certification Agencies, Improved Quality of Audits, and Reduced administrative
hassles. For new cycle of empanelment, the process will be completed soon for
Certification and Training to six Management Systems i.e. ISO 9000, ISO 14000, ISO 45000,
SA 8000, ISO 27000 and ISO 50000. For maintenance of Management Systems as per the
requirement of standards, on-site and remote (online) audits/ trainings were organised.
Information Technology Related Initiative
Your Company has always been a front runner in various Digital Initiatives and has
stepped up Digital Transformation and Industry 4.0 initiatives to improve business
performance, and thus, enhance overall customer experience. Digital Transformation besides
aiding in quick decision making, reducing the downtime of the equipment, helping in taking
preventive actions, it also assists in creating a smart factory for enhancing productivity
and reducing operational cost and strengthening its business processes. All the Integrated
Steel Plants, Central Marketing Organisation and Corporate Office are already working on
ERP solution and are continuously striving to improve their business processes so as to
achieve automation and reduce manual intervention. Safeguarding business is of utmost
importance today, as more and more data is generated and shared. Some of the Initiatives
accomplished during FY 2022-23 are given below:
IT Security Policy of SAIL was revised incorporating latest security aspects.
Also, multiple Cyber Security awareness sessions on cyber-threats and safe practices were
held in various forums in line with the GOI initiative for Cyber Security.
To improve decision making process and to monitor various KPIs, visually
appealing web based Dashboards have been developed for Top Management, which provide 360
degree view of the Organization covering major functionalities such as Marketing,
Production, Finance, Raw Materials, Covid cases, Sale of Fines, Price Index, Logistics,
Industrial Relations, Laboratory Information Management System (LIMS) and Capital
Expenditure incurred.
AI-based Chatbot SAIL Sarathi' for better Customer Engagement and
Service has been launched for selling products.
AI-based process model to forecast the next day's production based on the
Blast Furnace condition and Shaft Simulation model with 2D & 3D visualization
implemented to track real-time movement of burden charge.
Your Company had Digitized various functions through development of web-based
online systems to ease the working and provide the information at the click of a button.
To take business automation ahead, Automated Vehicle entry-exit system using
Arti_ cial Intelligence for detecting Vehicle Number Plate, Vehicle Positioning, etc. has
been installed at few warehouses of Central Marketing Organisation (CMO) to improve
productivity and minimise human interference.
In continuance of business automation, ERP is being Interfaced with
Manufacturing Execution System (MES) and Legacy Systems in areas like Blast Furnace, Hot
Strip Mill, wherein, data is being captured from various PLCs for generation of
intelligent reports.
Technology is changing by leaps and bounds with the growth of mobile
applications and digitization. In this regard, Mobile Apps for enabling Digital Mobility
and User Convenience have been introduced in areas such as issuance of medical referral
letter, generating Area Pass request for entry of sales related vehicles in Plant premises
for lifting of materials and approved online by respective shippers, shutdown
requisitions, employee services, patient feedback, etc. Further, barcoding has been
implemented to automate processing of medical booklets, issuance of gate pass to contract
workers, maintenance of machineries, etc.
Government e Marketplace (GeM) has been successfully integrated with ERP at few
Integrated Steel Plants to reduce manual intervention.
AI theme based Sia, (Smart & Intelligent Assistant) has been introduced to
answer queries of employees related to Circulars, Policies, URL for applications, etc.
To improve Safety Awareness, Safety Portal has been implemented with online
features including Near Miss cases recording, Safety inspections, Safety training, etc.
Contactless Facial Recognition Biometric system introduced for attendance of
employees.
SAP-ERP has been extended to Mines operated by Bhilai Steel Plant.
Corporate Communication
In today's fast-paced, interconnected business milieu, the essence of
communication cannot be overstated. It forms the backbone of corporate structures; both
tangible and intangible, allowing companies like SAIL to build and sustain robust brand
identities, foster lasting relationships and chart a course towards unassailable success.
This is achieved through meticulous, engaging and comprehensive communication strategies.
Your Company believes in the power of meaningful conversations-with the employees,
customers, investors, suppliers and the community at large.
Our communication approach is designed to engage with the stakeholders. It's a
two-way street where we listen, understand, respond and inspire. We establish an open
dialogue with stakeholders, keeping them apprised of our initiatives, activities and
future plans. Stakeholders are encouraged for feedback, their concerns are addressed and
they are involved in decision-making also. This participative culture is central to our
value proposition - one that fosters trust, instills confidence and creates a sense of
ownership among all our stakeholders. The role of corporate communications at SAIL has
been evolving in tandem with the emergent requirements and growth trajectory of the
Company.
Internal Communication
At SAIL, we recognize that employees are the driving force behind our success. The
robust internal communication mechanisms facilitate effective collaboration, foster a
positive work environment and boost morale. The communication lines within your Company
are always open, keeping employees informed and engaged. Accordingly, internal
communication campaigns across the Company are undertaken regularly. Your Company
celebrated SAIL Swarna Jayanti (SSJ) in the FY 2022-23 to mark the occasion of 50 years of
incorporation on 24th January, 1973. The celebration was marked by various
competitions, cultural programs and sporting activities, providing a platform for employee
engagement and interactions. The successes and key moments of such celebration were shared
pan-India through the in-house journal - SAIL News' and video capsule
SAIL Track'. Utilizing various social media platforms, we ensure that the sense
of belonging and engagement among employees is not just preserved but continually
strengthened.
External Communication
Communication with the outside world mirrors our commitment to transparency,
credibility and responsiveness. Regular press releases, media interactions and social
media updates keep our stakeholders well-informed about the corporate developments, new
initiatives, financial health and achievements. At SAIL both new-age and traditional media
channels are leveraged to connect with the audience, with the social media presence
witnessing steady growth. SAIL adopts a multi-pronged approach in engaging with the media
where our commitment to timely and transparent communication has been instrumental in
creating a strong brand image and maintaining healthy relations with the media.
Maintaining organic followership, your Company's social media presence has witnessed
a steady growth in terms of number of followers across all the platforms. Communication,
at SAIL, goes beyond the corporate realm. We focus on showcasing corporate social
responsibility efforts, sustainability practices and ethical values to highlight our
commitment to the community and the environment. Such an approach enables us to create a
sense of shared purpose, build strong relationships and garner support for our
initiatives, driving our growth and sustainability. In an era marked by rapid change, the
role of effective communication in business is more critical than ever. Your Company has
leveraged this transformative power to create a vibrant, inclusive and transparent
culture. The dynamic communication strategy ensures a seamless flow of information,
cultivates a culture of creativity and innovation and enhances employee engagement. In the
face of challenges such as the Covid-19 pandemic, SAIL has proven its mettle by adapting
swiftly and effectively. The seamless transition to large-scale online interactions has
not only ensured business continuity, but also strengthened our resolve as an
organization. As we march into the future, your Company is committed to its culture of
openness, collaboration, and engagement. Our communication approach continues to evolve,
setting new benchmarks in employee participation and stakeholder engagement. Be it through
engaging in-house journal, impactful press releases or vibrant social media campaigns, our
narrative is one of constant growth, innovation and sustainable success.
G. VIGILANCE ACTIVITIES
The objective of SAIL Vigilance is to facilitate an environment enabling people to work
with integrity, efficiency and in a transparent manner, upholding highest ethical
standards for the organization. To achieve this objective, the Vigilance Department
carries out preventive, proactive and punitive actions with greater emphasis in the
preventive and proactive functions. Following activities were undertaken during the FY
2022-23:
To increase vigilance awareness amongst employees, vigilance awareness sessions
and workshops were regularly held at various Plants and Units of the Company. A total of
164 workshops involving 3146 participants were organized for enhancing Vigilance Awareness
on Whistle Blower Policy, Purchase/Contract Procedures, Preventive Vigilance, Conduct
& Discipline Rules, Common Irregularities, Systems and Procedures followed in SAIL,
etc. Amongst these training programmes, thirty nine dedicated two day Preventive Vigilance
training programs were organised during FY 2022-23, wherein, a total of 661 executives of
SAIL have been covered.
Preventive Checks including file scrutiny and Joint Checks were conducted
regularly in vulnerable areas of the Company. A total of 2855 preventive checks including
file scrutiny and Joint Checks were conducted at different Plants/ Units.
Vigilance provides vital inputs to the operating authorities for improving the
prevailing systems for bringing about more transparency. Accordingly, sixteen System
Improvement Projects (SIPs) were undertaken at different Plants/Units of SAIL.
12 cases were taken up for Intensive Examination at different Plants/Units.
During these Intensive Examinations, high value procurement/contracts are scrutinized
comprehensively and necessary recommendations were forwarded to concerned departments for
implementation.
As per the Guidelines of Central Vigilance Commission, Vigilance Awareness Week
was observed in SAIL during 31st October to 6th November, 2022. The week
started with administering the Integrity Pledge and reading out the messages of
dignitaries on 31st October, 2022 at SAIL Corporate Office as well as in all
Plants/Units of SAIL. During the week, Workshops/ Sensitization Programmes, Customers
Meet, etc. were organised. Further, events like quiz, essay, slogan & drawing/ poster,
debate competition, etc. were organized for the employees across SAIL. As outreach
measures, various events like Speech/Oratory competition, Essay/Slogan competition, etc.
were organized for School/ College Students across various townships of SAIL. A Pocket
Size preventive vigilance booklet on DOs and DONTs was released by the Management and CVO,
SAIL on 31st October, 2022.
In an another Participative Vigilance initiative taken up, Ethics Club and
Ethics Circle activities were undertaken in different Plants/Units during the FY 2022-23.
In order to propagate ethical behavior in the society at large, Ethics Clubs have been
formed in the schools of SAIL Townships with the belief that it is essential to create a
strong ethical and moral foundation for children to facilitate formation of an ethically
sustainable society.
SAIL had brought out its last Vigilance Manual in the year 2015, and thereafter,
many new instructions and guidelines were issued by the DoPT, CVC, MHA, etc. Further, the
updated CVC Vigilance Manual was also issued in the year 2021. Therefore, there was a need
to bring out an updated edition of SAIL Vigilance Manual which would serve as a
comprehensive document for Management as well as employees. SAIL Vigilance Manual, 2022
was released by SAIL Management and CVO, SAIL on 18th June, 2022.
SAIL has achieved the distinction of becoming the first Maharatna Public Sector
Undertaking to have implemented the Anti-Bribery Management System (ABMS). During the
concluding ceremony of Vigilance Awareness Week 2022 held on 5th November 2022,
the Bureau of Indian Standards (BIS) awarded the ABMS Certificate as per IS/ISO 37001:2016
to Corporate Office and Bokaro Steel Plant.
The following five thrust areas were identified by SAIL Vigilance for
examination/scrutiny: (i) Payment of wages & other statutory benefits in high value
services contracts.
(ii) Maintenance / updation of Hindrance Register in Project cases.
(iii) Receipt, sampling and testing of high value raw materials.
(iv) LTE procurements against UCS codes created in last one year.
(v) Re-tender cases after L-1 price discovery in original tender.
Inspiration-Prerna', an in-house publication of SAIL Vigilance is
being published regularly. The above publication contains case studies and informative
articles to enhance awareness of the readers.
As on 1st April, 2022, a total of 69 complaints were pending and the
closing balance as on 31st March, 2023 was 60. The summary of disposal of
complaints during 2022-23 is as under:
Complaints Disposed:
Particulars |
Complaints |
Closed as found anonymous / pseudonymous |
|
|
136 |
(filed in line with CVC Guidelines) |
|
Closed as no vigilance angle/allegations not substantiated |
168 |
Referred to other departments |
131 |
Closed with preventive/administrative recommendations |
73 |
Regular Departmental Actions (RDAs) initiated (Include |
20 |
6 cases of Ma-jor Penalty against 8 employees and 10 |
|
cases of Minor Penalty against 18 employees) |
|
Total Disposed |
528 |
Vigil Mechanism
The Company has adopted Vigil Mechanism for conducting the affairs in a fair and
transparent manner by adopting highest standards of professionalism, honesty, integrity
and ethical behaviour. All employees of the Company and directors on the Board of the
Company are covered under this Mechanism. This Mechanism has been established for
employees to report concerns about unethical behaviour, actual or suspected fraud or
violation of Code of Conduct. It also provides for adequate safeguards against the
victimization of employees who avail the Mechanism and allows direct access to the
Chairperson of the Audit Committee in exceptional cases. No complaint was received during
the Financial Year 2022-23.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
Management Discussion and Analysis Report covering the performance and outlook of the
Company is attached and forms part of this Report.
AUDITORS' REPORT ON STANDALONE FINANCIAL STATEMENTS
The Statutory Auditors' Report on the Standalone Financial Statements of the
Company for the Financial Year ended 31st March, 2023 along with
Management's replies thereon is placed at Annexure-I to this Report. The
comments of Comptroller & Auditor General of India (C&AG) on the Standalone
Financial Statements of the Company for the Financial Year ended 31st March,
2023 under Section 143(6) (b) of the Companies Act, 2013 are placed at Annexure-II
to this Report.
COST AUDITORS
The Company is required to maintain cost accounting records at its various Steel Plants
as required under the provisions of Section 148 of the Companies Act, 2013. The Board of
Directors of the Company on the recommendation of the Audit Committee appointed M/s.
Chandra Wadhwa & Co., New Delhi; M/s. ABK & Associates, Mumbai; and M/s. R.M.
Bansal & Co., Kanpur as Cost Auditors for the FY 2022-23. The Board had fixed a fee of
Rs. 12.12 lakhs plus applicable taxes and reimbursement of out of pocket expenses for
conducting the audit of cost records maintained by the Company for the FY 2022-23, which
was rati_ed by the shareholders in the last Annual General Meeting.
SECRETARIAL AUDITOR'S REPORT
In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of
Directors has appointed M/s. Agarwal S. & Associates, Company Secretaries, as the
Secretarial Auditor to conduct Secretarial Audit of the Company for the FY ended on 31st
March, 2023. Secretarial Audit Report is placed at Annexure-III to this Report.
With regard to the observation of the Secretarial Auditor, that composition of the
Board of Directors of the Company was not as per requirements during the FY 2022-23, it is
stated that appointment of Independent Directors on the Board of the Company is made by
the Company based on nomination by Government of India. The Company has requested Ministry
of Steel, Government of India for nomination of requisite number of Independent Directors
on its Board. Consequently, one Independent Director has been appointed on Board of the
Company during April, 2022.
CORPORATE GOVERNANCE
In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
the Corporate Governance Report and Auditors' Certificate on compliance of conditions
of Corporate Governance is placed at Annexure-IV to this Report.
In terms of the SEBI Regulations, the Board has laid down a Code of Conduct for all
Board Members and Senior Management of the Company. The Code of Conduct has been uploaded
on the website of the Company. All the Board Members and Senior Management Personnel have
afirmed compliance with the Code.
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Business Responsibility
& Sustainability Report describing the initiatives taken by the Company from
Environmental, Social and Governance perspective forms part of this Annual Report and is
placed at Annexure-V.
SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES
IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned subsidiary of the
erstwhile Indian Iron and Steel Company Limited (IISCO), was ordered to be wound up by
BIFR. The O_cial Liquidator is continuing its liquidation process.
Your Company currently has two subsidiary Companies namely, SAIL Refractory Company
Limited (SRCL) and Chhattisgarh Mega Steel Limited. Two erstwhile subsidiary companies,
namely, SAIL Jagdishpur Power Plant Limited incorporated for setting up of Gas based power
Plant at Jagdishpur and SAIL Sindri Projects Limited incorporated for revival of Sindri
Unit of Fertilizer Corporation of India Limited have not taken off and have been Struck-O_
by the Registrar of Companies. SRCL is operating the Salem Refractory Unit which was
acquired by SAIL from Burn Standard Company Limited on 16th December, 2011.
Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with an
objective of setting up of an Ultra Mega Steel Project. The project has not taken off.
The Annual Accounts of the Subsidiary Companies and related detailed information shall
be made available to the Shareholders of the holding and subsidiary companies, seeking
such information at any point of time. Further, the Annual Accounts of the subsidiary
companies are available for inspection by any Shareholder at the Registered Office of the
Company and the Subsidiary Companies concerned between 11 AM to 1 PM on working days. A
hard copy of the details of accounts of subsidiaries shall be furnished to the
shareholders on receipt of written request.
CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the duly Audited
Consolidated Financial Statements of the Company for the Financial Year ended 31st
March, 2023 are placed at Annexure-VI to this Report.
AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENTS
The Statutory Auditors' Report on the Consolidated Financial Statements along with
the Management's replies thereon is placed at Annexure-VII to this Report. The
comments of Comptroller & Auditor General of India (C&AG) on the Consolidated
Financial Statements of the Company for the Financial Year ended 31st March,
2023 under Section 143(6) (b) read with Section 129(4) of the Companies Act, 2013 are
placed at Annexure-VIII to this Report. Further, the statement containing salient
features of the financial statements of the Subsidiary, Joint Venture and Associate
Companies in the prescribed Form AOC-1 is placed atAnnexure-IX to this Report.
RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE (RAJYA SABHA) IN ITS
150TH REPORT
The details of twelve Audit Paras pertaining to SAIL included in the Reports of
Comptroller and Auditor General of India (C&AG) tabled in the Parliament in the FY
2022-23 are as follows: (i) Report No.8 of 2022: (a) Refractory Management (Chapter-I)
(b)Financial Management (Chapter-II); Report
No.27 of 2022:(a) Dividend payout by CPSEs (Para No.1.3.4) (b)Return on Investment of
Listed CPSEs (Para No.1.4.5) (c) Significant comments of CAG issued as supplement to the
Statutory Auditors' reports on Government companies/ Government controlled other
companies (Para No.2.5.1.3) (d) Non-compliance with provisions of Accounting Standards/
Ind AS (Para No.2.6) (e) Disclosure of core skills/ expertise/ competencies of Board of
Directors through Chart/ Matrix in Corporate Governance Report (Para No. 3.3 F) (f)
Non-alignment of draft MoU with Annual Plan/ Budget/ Corporate Plan (Para No.5.7.1.1) (g)
Non-compliance of MSE guidelines (Para No. 5.7.2.4); Report No.31 of 2022 (a) Shortfall in
payment of dividend (Para No. 3.3.4A); Report No.33 of 2022: (a) Loss on account of
de_ciencies in project management (Para No.5.2) (b) Loss due to idling of Gas holder
installed at Rourkela Steel Plant (Para No.5.3).
ANNUAL RETURN
As per the provisions of the Companies Act, 2013, the Annual Return for FY 2022-23 is
available at https://www. sail.co.in/sites/default/files/2022-23/SAIL_DRAFT_ANNUAL_
RETURN_2022_23.pdf.
BOARD MEETINGS
During the year, 11 meetings of the Board of Directors of the Company were held, the
details of which are given in the Corporate Governance Report at Annexure-IV,
forming part of this Annual Report.
AUDIT COMMITTEE
The Audit Committee of the Board was initially formed by the Company in 1998. The Audit
Committee has been reconstituted from time to time in terms of the SEBI Regulations and
Companies Act, 1956/2013. The minutes of the Audit Committee meetings are circulated to
the Board, discussed and taken note of. The composition and other details pertaining to
the Audit Committee are given in the Corporate Governance Report at Annexure-IV.
INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY
The Company has well established and documented policies and procedures, which are
adhered to for transparent, efficient and ethical conduct of business and for safeguarding
its assets, prevention and detection of frauds and errors, accuracy and completeness of
the accounting records and timely preparation of financial disclosures. Further, the
Company has a sound corporate governance structure, and strong management processes,
controls, policies and guidelines which drives the Organization towards its business
objective and also meets the needs of various stakeholders. Your Company's robust
protocols such as independent internal audit, documented policies, guidelines, procedures,
regular review by Audit Committee / Board, etc. helps in compliance of Internal Financial
Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. The Company is
committed to the highest standards of Corporate Governance where the Board is accountable
to all stakeholders for reporting effectiveness of Internal Financial Control (IFC) and
its adequacy. Corporate Governance has been carried out in accordance with the Companies
Act, 2013 and SEBI (LODR) Regulations, 2015, etc.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(3)(c) of the Companies Act, 2013(the Act), the Directors state
that: (i) in the preparation of the Annual Accounts, the applicable Accounting Standards
have been followed along with proper explanation relating to material departures; (ii) the
Directors have selected such Accounting Policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the Financial Year and of the profit
or loss of the Company for that period; (iii) the Directors have taken proper and
sufficient care for the maintenance of adequate Accounting Records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities; (iv) the Directors have prepared the Annual
Accounts on a Going-Concern basis; (v) the Directors have laid down internal financial
control to be followed by the Company and that such internal financial controls are
adequate and are operating effectively; and (vi) the Directors have devised proper systems
to ensure compliance with the provisions of all applicable laws and that such systems are
adequate and operating effectively.
INDEPENDENT DIRECTORS' DECLARATION
In terms of Section 149(6) of the Companies Act, 2013, necessary declaration has been
given by each Independent Director stating that he/she meets the criteria of independence.
In terms of Section 149(7) of the Companies Act, 2013, Independent Directors of the
Company have undertaken requisite steps towards registration of their names in the data
bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.
In the opinion of the Board, the Independent Director(s) appointed during the year
possess integrity, necessary expertise and experience.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
In terms of the provisions of Section 186 of the Companies Act, 2013 read with
Companies (Meetings of Board and its Powers) Rules, 2014, the details of Loans, Guarantees
and Investments given during the FY ended on 31st March, 2023 are given in Annexure-X
to this Report.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN
SUB-SECTION (1) OF SECTION 188
All the contracts / arrangements / transactions entered by the Company during the FY
2022-23, with the related parties were in the ordinary course of business and on an
arm's length basis. The transactions with the related parties have been disclosed in
the financial statements. Therefore, particulars of contracts or arrangements with related
parties referred to in Section 188(1) along with the justification for entering into such
contract or arrangement in Form AOC-2 do not form part of the Report.
DIVIDEND DISTRIBUTION POLICY
In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board of Directors of the Company has adopted
Dividend Distribution Policy. The Policy is uploaded on the website of the Company -
https://sail.co.in/sites/default/files/Dividend_Distribution_ Policy_2017.pdf
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
In accordance with the provisions of Section 134(3) (m) of the Companies Act, 2013 read
with Rule 8 of the Companies(Accounts) Rules, 2014, the particulars relating to
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are
given in Annexure-XI to this Report.
RISK MANAGEMENT POLICY
Enterprise Risk Management (ERM) is a strategic business discipline that supports the
organization's objectives by addressing its risks and managing the impact of these
risks. It is the practice of planning, coordinating, executing and handling the activities
of an organization in order to minimize the impact of risk on investment, earnings and
also strategic, financial and operational risks.
The Enterprise Risk Management Policy of your Company was approved by the Board much
before the same became a statutory requirement and since then, risk management in SAIL has
grown and developed in line with internal and external business and economic changes. The
Policy provides guidance for the management towards business risks across the
Organisation. It focuses on ensuring that the risks are identified, evaluated and
mitigated within a given time frame on a regular basis.
Currently, the architecture of Enterprise Risk Management in SAIL comprises a
well-designed multi-layered organization structure, with each Plant/Unit having its own
perceived Risks which are under constant monitoring by the Risk Owners / Risk Champions
who frame and implement the mitigation strategy and take it to its logical conclusion.
Risk Management Committee of the Plant/Unit Chaired by the Head of the Plant /Unit
periodically reviews the risks and its mitigation status and reports the same to Chief
Risk Officer (CRO) of SAIL. SAIL Risk Management Committee (SRMC) oversees the Risk
Management function in the Company by addressing issues pertaining to the policy
formulation as well as evaluation of risk management function to assess its continuing
effectiveness. Risks identified by the Risk Champion/Risk Officer are deliberated in the
Risk Management Committee and strategy for mitigating such risks is formulated. Roles and
responsibility of Board, Audit Committee, SAIL Risk Management Committee, Risk Management
Steering Committee, CRO, Risk Officer/Risk Champion related to risk management are defined
under the Policy and duly approved by the Board. The Enterprise Risk Management Policy of
your Company is uploaded on its website https://sail.co.in/company/company-policies.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
SAIL's Social Objective is synonymous with Corporate Social Responsibility. Apart
from the business of manufacturing steel, the objective of your Company is to conduct
business in ways that provide social, environmental and economic benefits to the
communities in which it operates. For any organization, CSR begins by being aware of the
impact of its business on society. With the underlying philosophy and a credo to make a
meaningful difference in people's lives, your Company has been structuring and
implementing CSR initiatives from the inception. These efforts have seen the erstwhile
obscure villages, where SAIL Plants are located, turn into large industrial hubs today.
The CSR initiatives of your Company have always been undertaken in conformity to the
Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014,
Companies (CSR Policy) Amendment Rules, 2021 and 2022 and DPE Guidelines on CSR &
Sustainability, 2014. SAIL carries out CSR projects in and around periphery of steel
townships, mines and far _ung locations across the Country in the areas of Rural
Development including maintenance of Model Steel Villages, Education, Healthcare,
Immunisation, Ante/ post-natal care, Access to Drinking Water, Sanitation, Road side tree
plantation, Environment Sustainability, Women Empowerment, Assistance to Sr. Citizens
& Divyangs, Sustainable Income Generation through Self-Help Groups, Promotion of Art
and Culture, etc.
The details of various CSR initiatives taken by the Company along with the Report on
CSR in prescribed format are placed at Annexure-XII to this Report. The CSR Policy
of the Company is available on the website of the Company www.sail.co.in. Healthcare: Your
Company's extensive and specialised Healthcare Infrastructure provided specialized
and basic healthcare to nearly 180 lakh people living in the vicinity of its Plants and
Units during the period 2011-2023. In order to deliver quality healthcare at the doorsteps
of the needy, regular health camps are being organised in various villages on fixed days
for the people living in the periphery of Plants/ Units/Mines. During the FY 2022-23,
regular Health Camps have been organized and 5 Mobile Medical Units (MMUs) extended
quality healthcare to about 1,15,000 villagers at their doorsteps in peripheral areas of
Plants, Units and Mines. 24 Primary Health centres at Plants exclusively provided free
medical care and medicines to more than 90,000 patients.
Education: To develop the society through education, SAIL is supporting over 77
schools, providing education to more than 40,000 children in the steel townships, 22
Special Schools (Kalyan, Mukul & DAV Vidyalayas) are bene_ tting around 9169 BPL
category students at integrated steel plants and mines locations with facilities of free
education, mid-day meals, uniform including shoes, text books, stationary items, school
bag, water bottles, etc., under CSR. More than 441 children from tribal and naxal-a_ ected
areas are getting free Education, Accommodation, Meals, Uniform and Textbooks, etc. at
Saranda Suvan Chhatravas, Kiriburu; Gyanodaya Chhatravas, BSP School Rajhara, Bhilai;
Gyanjyoti Yojna, Bokaro.
Your Company in association with the Akshaya Patra Foundation, is providing Mid-day
meals and dry ration kits to around 60,000 students in over 600 Govt. schools in Bhilai
and Rourkela.
Women Empowerment & Sustainable Income Generation:
Vocational and specialised skill development training targeted towards sustainable
income generation has been provided to 2265 youths & 2315 women of peripheral villages
in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing, Welder,
Fitter, Electrician training, Improved agriculture, Mushroom cultivation, Goatery,
Poultry, Fishery, Achar/Pappad/ Agarbati/ Candle making, Screen printing, Handlooms,
Sericulture, Yarn Weaving, Tailoring, Sewing and embroidery, Gloves, Spices, Towels,
Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, bans/Jute Shilp, Smokeless challah
making, etc. About 409 youths have been sponsored for ITI training at ITIs Bolani,
Bargaon, Baliapur, Bokaro Private ITI and Rourkela, etc.
Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across
450 villages have been connected to mainstream by SAIL, since its inception, by
constructing and repairing roads. Over 8176 water sources have been installed, since
inception, thereby enabling easy access to drinking water to over 50 lakh people living in
far-_ ung areas.
Environment Conservation: Maintenance of parks, water bodies, botanical gardens and
plantation & maintenance of over 5 lakh trees in the townships is being undertaken.
Support to Divyangs & Senior Citizens: Divyang (children/people) are being
supported through provision of equipment like-tricycle, motorized vehicles, calipers,
hearing aids, arti_ cial limbs, etc. Your Company supports centres and programmes at its
Plants like "Schools for blind, deaf & mentally challenged children" and
"Home and Hope" at Rourkela; "Ashalata Kendra" at Bokaro; various
programs like "Handicapped Oriented Education Program" and "Durgpaur
Handicapped Happy Home" at Durgapur; and "Cheshire Home" at Burnpur. Old
age homes are being supported at di_ erent Plant townships like "Siyan Sadan" at
Bhilai, "Acharya Dham" at Durgapur, "Sr. Citizens Home" at Rourkela,
etc. Series of events were organised across the Company to celebrate the
International Day of Persons with Disabilities' commencing on 3rd
December, 2022 in alignment of ongoing Azadi ka Amrit Mahotsav'. The assistive
devices like Tricycle, Motorized Vehicles, Calipers, Hearing Aids, Smart Phones, Smart
Canes, etc. provided by Arti_ cial Limbs Manufacturing Corporation of India (ALIMCO) were
distributed among Divyangjans through Plants/Units and Corporate O_ ce at New Delhi.
Sports, Art & Culture: SAIL is regularly organizing inter- village sports
tournaments, extending support to major National sports events and tournaments. Also,
supporting and coaching aspiring sportsmen and women through its residential sports
academies at Bokaro (Football), Rourkela (Hockey)-with world class astro-turf ground,
Bhilai (Athletics for boys), Durgapur (Athletics for girls) and Kiriburu,
Jharkhand (Archery). Cultural events like Chhattisgarh Lok Kala Mahotsav, Gramin
Lokotsav are organised every year. Bokaro Steel Plant organised Special Olympics Bharat
(SOB) under National Sports Preparatory Training Camps and also selected/trained Divyang
athletes for participation in the Special Olympics Summer World Games 2023 (SOSWG 2023).
Development of Aspirational Districts: In order to provide comprehensive
development of both physical and social infrastructure, SAIL has undertaken CSR activities
in 6 Aspirational Districts, viz. Kanker, Narayanpur and Rajnandgaon in Chhattisgarh and
West Singhbhum, Bokaro, Ranchi in Jharkhand.
SAIL Employees Rendering Volunteerism and Initiatives for Community Engagement
(SERVICE): It supports volunteer activities and community outreach by SAIL employees.
Over 29,000 volunteers/like-minded employees having a sense of social responsibility to
unite in their e_ ort to help the society have registered on the SERVICE portal.
REPORTING OF FRAUD BY AUDITORS
During the FY 2022-23, neither the Statutory Auditors nor the Secretarial Auditor have
reported to the Audit Committee any instances of fraud committed against the Company by
its off cers or employees, which would need mention in the Board's Report.
PERFORMANCE EVALUATION OF DIRECTORS AND BOARD
Ministry of Corporate A_ airs has vide its Notifi cation dated 5th June,
2015 has exempted Government Companies from the provisions of the Companies Act, 2013
which, inter-alia, provides that Sub Sections (2), (3) & (4) of Section 178 regarding
appointment, performance evaluation and remuneration shall not apply to Directors of the
Government Companies. Further, the Ministry of Corporate A_ airs vide Notifi cation dated
5th July, 2017 has notified certain amendments in Schedule IV of the Companies
Act, 2013, according to which, provisions relating to evaluation of performance of
Non-Independent Directors, Chairperson and Board have been exempted for Government
Companies.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 197(12) of the Companies Act, 2023 read with Rule
5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014,
every listed company is required to disclose the ratio of the remuneration of each
director to the median employee's remuneration and details of employees receiving
remuneration exceeding limits prescribed from time to time in the Board's Report.
Ministry of Corporate A_ airs vide its Notifi cation dated 5th June, 2015
has exempted Government Companies from complying with the provisions of Section 197 of the
Companies Act, 2013. Accordingly, such particulars have not been included in the
Board's Report.
GENERAL DISCLOSURES i. During the year, the Company has not accepted any deposits
under the Companies Act, 2013. ii. No signifi cant 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.
iii. During the year, there has been no change in the nature of Business of the
Company. iv. During the year, no application was made and no proceeding is pending under
the Insolvency and Bankruptcy Code, 2016. v. SAIL has been identifying itself as a Large
Corporate for FY 2022-23 and FY 2023-24, as per the Applicability Criteria given under
Chapter XII of SEBI Operational Circular dated 10th August, 2021 (Updated on
13th April, 2022). The Company has not accessed any incremental borrowing
in FY 2022-23 and therefore, no penalty has accrued or paid.
DIRECTORS AND KEY MANAGERIAL PERSONNEL
Shri Brijendra Patap Singh has been appointed as Director (In Charge-Burnpur and
Durgapur Steel Plant) w.e.f. 19th April, 2022.
Prof. (Dr.) K. Jayaprasad has been appointed as Independent Director w.e.f. 26th
April, 2022.
Shri Puneet Kansal, Joint Secretary, Ministry of Steel and Director, SAIL, has
ceased to be Government Nominee Director w.e.f. 26th April, 2022.
Shri Abhijit Narendra, Joint Secretary, Ministry of Steel has been appointed as
Government Nominee Director w.e.f. 27th April, 2022.
Shri Harinand Rai, Director (Technical, Projects and Raw Materials) has ceased
to be Director w.e.f. 30th April, 2022.
Shri Anil Kumar Tulsiani has been appointed as Director (Finance) w.e.f. 20th
June, 2022.
Shri Krishna Kumar Singh has been appointed as Director (Personnel) w.e.f. 25th
August, 2022.
Shri Arvind Kumar Singh has been appointed as Director (Technical Projects &
Raw Materials) w.e.f. 2nd September, 2022.
Smt. Soma Mondal ceased to be Chairman w.e.f. 30th April,
2023.
Shri Amarendu Prakash has taken over as Chairman w.e.f. 31st May,
2023.
The Shareholders of the Company by way of Resolutions passed through Postal Ballot has
approved the appointments of Directors, the details of which are as under:
S. No. |
Name |
Designation |
Resolution |
Date of Resolution |
1. |
Shri Atanu Bhowmick |
Whole Time Director |
Ordinary |
4th May, 2022 |
2. |
Shri Ashok Kumar Tripathy |
Independent Director |
Special |
13th July, 2022 |
3. |
Shri Kanhaiya Sarda |
Independent Director |
Special |
13th July, 2022 |
4. |
Smt. Neelam Sonker |
Independent Director |
Special |
13th July, 2022 |
5. |
Shri Sagi Kasi Viswa- natha Raju |
Independent Director |
Special |
13th July, 2022 |
6. |
Dr. Gopal Singh Bhati |
Independent Director |
Special |
13th July, 2022 |
7. |
Shri Vejendla Srinivasa Chakravarthy |
Whole Time Director |
Ordinary |
13th July, 2022 |
8. |
Shri Brijendra Pratap Singh |
Whole Time Director |
Ordinary |
13th July, 2022 |
9. |
Prof. (Dr.) K. Jayaprasad |
Independent Director |
Special |
13th July, 2022 |
10. |
Shri Abhijit Narendra |
Government Director |
Ordinary |
13th July, 2022 |
11. |
Shri Anil Kumar Tulsiani |
Whole Time Director |
Ordinary |
2nd September, 2022 |
ACKNOWLEDGEMENT
The Board of Directors of your Company wish to place on record their appreciation for
the sincere, untiring & dedicated efforts and contribution made by every member of the
SAIL Family. The Directors acknowledge with deep sense of appreciation, the valuable
guidance, support and co-operation received from Government of India, particularly
Ministry of Steel, Regulatory & Statutory Authorities, Ministry of Environment,
Forests, & Climate Change, DIPAM, NITI Aayog, Department of Public Enterprises,
Railways, State Governments, Electricity Boards, etc. The Board also convey its gratitude
to all its stakeholders, including Members, Investors, Customers, Vendors, Bankers and
Consultants for their continued support and confidence reposed in the Organisation.
The Directors also thank the Comptroller & Auditor General of India, Statutory
Auditors, Cost Auditors, Secretarial Auditor and other professionals associated with the
Company for their valued contribution.
For and on behalf of the Board of Directors
|
(Amarendu Prakash) |
|
Chairman |
Place: New Delhl |
|
Date : 2nd September, 2023 |
|
|