Steel Authority of India Ltd

To,

Steel Authority of India Limited, New Delhi

The Board of Directors has the pleasure of presenting the 52^nd 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 31^st March, 2024.

Financial Results ( crore)

Your Company achieved the best Sales Turnover of 1,04,545 crore during the Financial Year (FY) 2023-24, which is higher by 1% as compared to corresponding period of last year (CPLY) driven by increase in Sales Volume (5%), _xation of Rail price for FY 2021-22 and revision of provisional Rail price for FY 2022-23 & 2023-24. During the FY 2023-24, the increase in the pro_tability as compared to CPLY is mainly on account of higher sales volume; _xation of Rail price for FY 2021-22 as well as revision of provisional Rail price for FY 2022-23 & 2023-24; lower imported coal prices (vis-?-vis previous year) and ferro-alloys prices, lower usage of other raw materials like I ron ore, zinc, copper, other ferro-alloys, power, etc.; better techno-economic parameters like improvement in BF productivity, lower usage of coal, Speci_c Energy Consumption, etc.; lower salary & wages; reduction in loss on foreign exchange _uctuation; etc.

The increase in the pro_tability was o_set partially by lower Net Sales Realisation of Saleable Steel and lower sale of coal chemical & by-products; higher usage of external BF Coke, Limestone, scrap, etc.; lower stock valuation rate; higher expenditure on stores & spares, Repair & Maintenance, Raw Material handling charges, freight outward, etc.; higher royalty rates; lower dividend income; impact of exceptional items (Settlement under Vivad se Vishwas Scheme-II and Entry Tax); higher interest charges and depreciation; etc. Your Company continued its thrust on judicious fund management with repayment of loans including interest as well as advance planning and timely action for future fund raising, etc. to meet its growth objectives. The Company had borrowings of 36,315 crore as on 31^st March, 2024 vis-a-vis 30,773 crore as on 31^st March, 2023 (INDAS). The debt equity ratio of the Company as on 31^st March, 2024 has increased marginally to 0.67:1 from 0.59:1 as on 31^st March, 2023 primarily due to increase in borrowings during the FY 2023-24. The net worth of the Company increased to

54,131 crore as on 31^st March, 2024 from 52,139 crore as on 31^st March, 2023.

Interim Dividend of 10% i.e. 1.00 per equity share was paid during the FY 2023-24. The Board of Directors of your Company has further recommended a Final Dividend of

1.00 per equity share, subject to approval of Members in the ensuing Annual General Meeting of the Company. In totality, 20% dividend on equity share capital for FY 2023-24 is being distributed to the members of the Company. No amount has been transferred to General Reserve during the year under review.

M/s. CARE Ratings and M/s. India Ratings, RBI approved Credit Rating Agencies, assigned ‘CARE AA-Outlook: Stable' and ‘IND AA-Outlook: Stable' ratings respectively for SAIL's long-term borrowing programme.

Safety

Safety First: Your Company is committed to the safety of its employees and the people associated with it, including those living in the neighbourhood of its Plants, Mines and Units. SAIL Safety Organization (SSO) centrally monitors and guides the Safety Promotional and Fire prevention activities undertaken at di_erent 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 at the workplace. Plants are ISO-45001 certi_ed, which is an advanced Safety Management System and as a compliance to this, Hazard Identi_cation and Risk Assessment (HIRA) has been conducted for most of operation & maintenance activities using techniques like Bow-tie/HAZOP studies, etc. as applicable and appropriate control measures have been formulated and implemented to either eliminate the risk or bring it to acceptable limits.

Safety aspects, speci_c to the jobs, have been incorporated in Standard Operating Procedures & Standard 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. Prioritising safety foremost, the Company has engaged Safety Management Consultant for Safety Culture

Transformation, at its Plants in Bhilai, Bokaro, Rourkela, Durgapur and Burnpur. Thrust is being laid on developing safety governance structure, framing technical standards, improving safety through behavioural interventions, containing risk in high hazard processes, etc. 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 initiative called ‘Suraksha Manthan' has been taken up 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, Line Managers 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'. A compilation titled ‘Samiksha' of accidents that occurred in the past has been prepared and circulated as ready reference for all the Plants & Units. ‘Sukriti' – a compendium of good practices prevailing in the steel industry, has been prepared with a view to promote benchmarking with the best practices of the industry. In addition to this, ‘Suraksha Samvad' – a VC session is being conducted after any major incident or Near Miss case among concerned domain experts from all the Plants & Units, with a view to discuss the root causes, share good practices of each other and bring out technical solutions. Also to bring all the steel producers of the Country with their domain experts along with safety personnel under one platform, SSO has constituted Safety Operating Committee to address the theme-based issues. Meetings of the Committee will be a yearly event in di_erent Plants with new themes.

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 respective safety requirements. 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

During the FY 2023-24, the Indian steel sector continued its journey of resilience and growth, navigating through both internal challenges and global economic _uctuations. The year witnessed excess capacity and subdued demand, especially aggravated by crises like the real estate downturn in China. Inspite of the challenges faced by your Company in terms of input raw material quality, logistics issues like availability of rakes for transportation of raw material and the asset mix of old and new units, SAIL achieved remarkable milestones in 2023-24 including record-breaking annual performances.

During FY 2023-24, your Company created new benchmarks in production, productivity, techno-economics, value added products and new product development. There has been a phenomenal growth in production of Hot Metal by 1.09 MT, Crude Steel by 0.95 MT and Saleable Steel by 1.19 MT during FY 2023-24, over the previous FY 2022-23. SAIL achieved record Hot Metal, Crude Steel and Saleable Steel production of 20.5 MT, 19.2 MT and 18.4 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, BF Productivity and Speci_c Energy Consumption owing to focus on better capacity utilisation of bigger Blast Furnaces (BF) and optimisation of BF operations. Besides this, continuous thrust in ramping up of new units as well as continuous intervention in process improvement, operational capacity utilisation of Hot Metal, Crude Steel and Saleable Steel improved to 101%, 99% and 102% respectively. 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 25 new Steel Products, including development of new sections, during FY 2023-24.

At Bhilai Steel Plant (BSP), Hot Metal, Crude Steel and Saleable Steel achieved its best ever production of 5.985 MT, 5.675 MT and 5.228 MT respectively. The new Blast Furnace i.e. BF-8 produced 2.68 MT of Hot Metal, surpassing the previous best achievement of 2.54 MT in the previous FY. The contribution to Indian Railways is highlighted by the fact that record dispatches of Long Rails (260m panels) of 1082 Rakes was achieved during the FY 2023-24. Further, with the commencement of commercial production from Flash Butt Welding Plant-Sabarmati, 12 Rakes of Long Rail panels were despatched to the Indian Railways. The year also witnessed commencement of regular production of R-350 HT (1175 HT Gr) Head Hardened Rails at URM in October, 2023, with 1265 tonne being produced and _rst rake of R350 HT panel was supplied to Indian Railways on 31^st October, 2023. On techno-economic front, BSP achieved the highest ever CDI rate at 120 kg/thm and lowest Speci_c Energy Consumption at 6.35 G.cal./tcs.

Durgapur Steel Plant (DSP) recorded the best ever production of Hot Metal at 2.57 MT, surpassing the previous best of 2.56 MT recorded in the FY 2022-23. DSP also produced highest ever Crude Steel at 2.30 MT and Saleable Steel 2.21 MT, surpassing the previous best of 2.29 MT and 2.18 MT respectively achieved in the previous FY. The Plant recorded highest ever production from its Medium Structural Mill (MSM) and Merchant Mill (MM). On techno-economic front, DSP achieved the best ever CDI rate at 68/kg/thm and Coke rate at 449 kg/thm in the FY 2023-24.

Rourkela Steel Plant (RSP) registered highest ever production of Hot Metal at 4.49 MT, Crude Steel production at 4.16 MT and Saleable Steel production at 4.21 MT in the FY 2023-24. In addition to this, BF-5 also achieved highest ever production at 2.88 MT. Similarly, New Plate Mill (NPM) at 0.93 MT and Hot Strip Mill-2 (HSM-II) at 2.38 MT also registered highest ever annual production. With regard to techno-economic parameters, RSP achieved the lowest ever Speci_c Energy Consumption @5.98 G.cal./tcs. during the FY 2023-24. Bokaro Steel Plant (BSL) registered the highest ever production of Hot Metal at 4.73 MT with four BFs operation, surpassing the previous best of 4.71 MT achieved with _ve BFs operation in the FY 2005-06. New SMS (with Concast Route) at 0.86 MT, Crude Steel at 4.31 MT,Hot Strip Mill at 3.97 MT and Saleable Steel at 3.99 MT also recorded highest ever production in FY 2023-24. The techno-economic parameters like CDI rate @79 kg/thm, BF productivity @ 1.82 t/m³/day and Speci_c Energy Consumption @6.57 G.cal./tcs. were best ever in the FY 2023-24.

At IISCO Steel Plant (ISP), Hot Metal, Crude Steel and Saleable Steel production at 2.72 MT, 2.53 MT and 2.41 MT respectively were highest ever in the FY 2023-24. I n addition to this, Wire Rod Mill at 0.479 MT, Bar Mill at 0.795 MT and Universal Section Mill at 0.460 MT achieved their best ever production during the FY 2023-24. On techno-economic front, ISP achieved the best ever CDI rate @126 kg/thm & BF productivity @ 2.18 t/m³/day for the year.

SAIL aims to boost production volumes at its _ve Integrated Steel Plants by enhancing techno-economic e_ciencies at Blast Furnace. In this regard, the key initiatives in form of enablers include I mproving the Health of Furnace Stoves, Commissioning of New Stoves, Enhancing Oxygen Enrichment, Increasing Pulverized Coal Injection and Improving the Iron content in the Burden through the use of Pellets and Better Quality Ore Fines.

With respect to the Special Steel Plants, Strategic Interventions are being pursued at Alloy Steels Plant (ASP) and Salem Steel Plant (SSP). In this regard, Feasibility Study is being carried out at ASP for upgradation of steel making facilities and enhancement of production through process e_ciency. At SSP, initiatives are being taken to improve production and reduce the cost to curtail losses.

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 optimum cost. During the FY 2023-24, about 65% of the total requirement of 1437.98 MW was met from the Captive Power Plants, as against 62.75% in the previous year. 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 299.38 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 85.79 MUs of bagasse-based power from Rajshree Sugar Mills, Coimbatore, through Power Exchange for Salem Steel Plant during the sugarcane crushing season. 110.55 MUs were procured from the Power Exchange and 103.12 MUs were wheeled from PP-3, Bhilai to SSP. Your company was able to save about

40.13 crore in the FY 2023-24 by procuring cheaper power through Open Access route.

With the objective of enhancing the share of captive power and ensuring supply of reliable power at optimum cost, the second 20 MW Unit of NTPC-SAIL Power Company Ltd. ( N SPCL), a Joint Venture Company of SAIL & NTPC Ltd., Power Plant-III at DSP was commissioned on 29^th March, 2024. 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 8.44% 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. LD gas is being mixed with BF gas at BPSCL. Further, at NSPCL's Power Plant-II, BSP, CO gas pipeline for Boiler-3 has been connected to the new CO gas header.

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 2023-24, 151.74 crore was received as incentives and rebate in the power tari_ from grid utilities. Besides above, optimization of electricity consumption in various steel making processes is a major thrust area 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 7.50 MWp of Roof Top/Ground Mounted Solar power plants has already been installed across SAIL Plants and Units. Further, SAIL's _rst Floating Solar Power Plant of 4 MWp at ISP has been commissioned in January, 2024 and it produced 0.88 MUs of green power in February and March, 2024. In addition to this, a 15 MW capacity Floating Solar Power Plant over Cooling Pond in BSP through NSPCL is likely to be commissioned by June, 2025. A capacity of 176.45 MWp of rooftop solar plants at various Plants/ Units of the Company across the Country is in progress. Solar projects with potential of 485 MW are being examined for techno-commercial feasibility. Besides this, 12 MW 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 2023-24, total requirement of iron ore was met from the captive sources. Your Company's captive mines produced about 34.34 million tonnes (MT) of iron ore. However, in case of clean coking coal, out of total consumption of 19.37 MT, about 2.45 MT was met from indigenous sources (Coal India Limited & captive sources) and for the balance requirement of coking coal (16.92 MT), the Company had to depend on imports due to constraint in availability of required quality, within the Country. In the FY 2023-24, production from the captive collieries of the Company, including middling & jhama, was about 1.184 MT, out of which 0.466 MT was raw coking coal and balance 0.718 MT was non-coking coal. In case of _uxes, around 1.533 MT of limestone and 0.485 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 1.16 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:

Amalgamated Lease (Barsua-Taldih-Kalta): Clearance for expansion of ROM capacity from 8.05 MTPA to 16.00 MTPA granted on 28^thA pril, 2023.

Dobil Lease of Chiria Mine: Clearance granted for transportation of iron ore by Road for another 2 years from 23^rd January, 2024.

Bolani Ore Mines: Amended EC extended for further period of 2 years to liquidate entire stock of old _nes dumps maximum up to 3MTPA by selling in open market or supplying to external conversion agencies for captive use within the EC capacity of 12 MTPA, on 13^th September, 2023.

Chasnalla Colliery: On 21^st August, 2023, State Environment Impact Assessment Authority, Jharkhand, granted EC for the capacity expansion of Chasnalla Colliery up to 1.2/1.5 MTPA (Normative/Peak), along with the expansion of the coal washery of capacity 4 MTPA.

Jitpur Coal Mine: Vide Order dated 19 ^th June, 2023, State Environment Impact Assessment Authority, Jharkhand granted EC for the expansion of Jitpur Coal Mine up to 0.6/0.7 MTPA (Normative/Peak).

Iron Ore by Road from Rowghat to Antagarh: MoEFCC amended the EC on 21^st December, 2023, with the permission to transport 2.0 MTPA (@1.5 MTPA for initial six months and 2.0 MTPA for the subsequent 18 months) of Iron Ore by Road from Rowghat to Antagarh Railway Siding and/or Bhanupratappur Railway Siding, followed by Rail transportation to Bhilai for a duration of 2 years w.e.f. 1^st January, 2024.

Grant of Forest Clearance

MoEFCC on 26^th May, 2023 has granted Stage-II Forest Clearance for diversion of 465.62 ha of forest land (including safety zone) under 6.9 Sq. Mile Lease of Bolani Mine.

MoEFCC vide Order dated 1^st February, 2024 accorded in-principle approval for diversion of safety zone under 6.9 Sq. Mile Lease of Bolani Mile in pursuance to its Guidelines dated 7^thN ovember, 2022.

Extension of Lease Period/Reservation Noti_cation Period

Government of Chhattisgarh vide Orders dated 6^th July, 2023 and 10^th July, 2023, has extended the lease periods of Rajhara H ill Lease and Pandridalli & Rajhara Pahar Leases of Bhilai Steel Plant until 31^st May, 2043 and 27^thA pril, 2043 respectively.

Government of Chhattisgarh vide letter dated 3^rd July, 2023 has extended K alwar-Nagur Lease upto 31^st March, 2025.

In the process of execution of mining lease deed for

150-acre area in Ramanadurga Forest Range for iron ore, the Government of Karnataka vide Order dated 29^th February, 2024 has accorded approval for relaxation for a further period of one year up to 19^th February, 2025 to obtain statutory clearance and execute the mining lease under Reservation made by Ministry of Mines, GoI.

Appointment of MDO for Development of 4 MTPA Coal Mine at Tasra Coal Block, Jharkhand

Consortium of M/s. Power Mech Projects Limited & M/s. P C Patel Infra Pvt. Ltd. was appointed as a Mine Developer cum Operator ((MDO) for development of 4 MTPA Mine at Tasra Coal Block and Coal Mining Service Agreement (CMSA) was signed with M/s. Kalyaneshwari Tasra Mining Pvt Ltd., a JV of the consortium, on 8^th September, 2023 (Commencement Date). Mining operation will commence @ 1.50 MTPA during the 3^rd year and @ 4 MTPA from 5^th year onwards. MDO shall construct the washery within three years from the Commencement Date.

Operationalization of Kalwar-Nagur Iron Ore Mining Lease of BSP

On obtaining all the requisite statutory clearances, despatch of iron ore from the Kalwar-Nagur Mine has commenced from 5^th February, 2024 onwards.

Resumption of Mining Operations at Ramnagore Coal Mine

On account of absence of a composite contract and local issues, operations at Salanpur quarry at Ramnagore Coal Mine were halted in September, 2020. With the contract _nalized, operations have resumed in November, 2023 and production is gradually increasing.

Resumption of Production at Jitpur Colliery

Consequent to Consent to Operate (CTO) from the Jharkhand State Pollution Control Board on 24^th July, 2023, production activities commenced on 20^th September, 2023 in Jitpur Colliery.

Valuation of Compensation for Payment to the Prior Allottee (SAIL) for Sitanala Coal Mines

On 16^thO ctober, 2023, the Nominated Authority of Ministry of Coal issued a _nal compensation Order of 10.17 crore for the Geological Report cost and the same was refunded on 16^th February, 2024. However, as the other compensation requests were not considered, SAIL _led a writ petition on 8^th January, 2024, challenging the Order.

Utilisation of Dump Fines of Gua Ore Mines

Evacuation of dump _nes at Gua Ore Mines for captive use started in November, 2023, with the _rst rake being dispatched to BSL for captive use. About 62,835 tonne of iron ore has been dispatched to SAIL Steel Plants for captive use upto 31^st March, 2024.

Commencement of Dispatch of Manganese Ore from Bolani Ore Mines

The inaugural shipment of 1136 tonnes of Manganese from 6.9 Sq. Mile Lease of Bolani Ore Mines was sent to Rourkela Steel Plant on 30^thA ugust, 2023.

Registration of SAIL for Green Credit Programme of MoEFCC

In the FY 2023-24, SAIL has successfully enrolled in the Green Credit Programme (GCP) by submitting applications for two plantation blocks, measuring 25 hectares and 10 hectares respectively, in the State of Chhattisgarh. Generated Green Credit under the programme, can be exchanged to ful_l compensatory a_orestation obligations in cases of forest land diversion for non-forestry purposes under the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, where applicable. Additionally, these credits may also be utilized for environmental, social, and governance reporting activities under relevant laws and regulations currently in e_ect.

Sales & Marketing

During the Financial Year (FY) 2023-24, your Company achieved Saleable Steel sales volume of around 17.24 million tonnes (MT), registering a growth of about 4.8% over previous year. With Home Sales of 16.17 MT for Mild Steel, there has been a growth of about 6.3% over FY 2022-23. While the overall exports declined over FY 2022-23, the Company was able to achieve growth in Wire Rod exports of 11% in FY 2023-24 amidst various challenges in the international market.

For most part of FY 2023-24, the Global Steel business scenario has been under pressure due to overcapacity and increased exports from China. At the same time, many developed countries are facing high interest rates and in_ation due to which demand has generally been on the lower side. The developing countries are also facing _nancial challenges due to depreciating currencies and weak _nancial conditions. Compared to international situation, India has fared relatively better and SAIL concentrated more on domestic sales.

During FY 2023-24, Global prices of steel products had dampened and were usually softening continuously. Lower international prices resulted in higher domestic availability, which in turn kept domestic prices under pressure during major part of the year. Raw material prices remained volatile. The Company adopted focused approach for improving its sales in domestic markets by entering new market segments, expanding reach through retail network and making e_orts to improve price realization in a highly competitive scenario. Consumption of Finished Steel in India in FY 2023-24 was 136.25 MT, a growth of 13.6% over previous year, while Finished Steel production was 138.825 MT, which is a growth of 12.7% over FY 2022-23. The Building, Construction and Infrastructure continued to be fulcrum of growth in steel sector due to consistent increase in Capex spending on infrastructure by the Government of India. A total budgetary provision of 15 lakh crore had been made for Govt. Capex in the Union Budget 2023-24, to boost growth of I nfra and Construction segment. Your Company has been ful_lling the entire demand of steel tracks from Indian Railways for decades. A total of 11.50 lakh tonnes of Rails were supplied to Indian Railways in FY 2023-24, the 260m long-rail welded-panel component in the total R ail supply being about 87.5%, which is highest ever and registered a growth of 8% over the previous year. It may be mentioned that 100% of the 60 kg Rail supplied to Railways during FY 2023-24 comprised the newly developed R-260 grade in 60E-1 pro_le. In addition to this, commercial supply of Long Rail Panels in R350 HT Grade has been started in FY 2023-24 as per Railway's requirement for Higher Axles Load (25T ) routes. 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. Further, supplies of Long Rail Panels have been started from Flash Butt Welding Plant (FBWP), Sabarmati, as per MoU with Indian Railways during FY 2023-24. The MoU between Western Railway and Bhilai Steel Plant is expected to augment the supplies of Long Rail Panels through _ash butt welding of 26 mtr. R ails.

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, 42,024 numbers of WTA (Wheel, Tyre, Axle) items were supplied to Indian Railways in FY 2023-24, including few pro_les which are import substitution items.

Your Company's presence in certain critical areas of Defence has been strategically signi_cant with MOU being signed with the Indian Coast Guard for indigenous procurement of Ship-building Grades steel promoting Aatmanirbhar Bharat. Additionally, Special Grades for tank/shells have been developed.

Continuing the journey for increasing sales of value added and special quality products to the consumers, SAIL's basket in FY 2023-24, inter-alia, included Vacuum degassed Cold Heading Quality Wire Rods for the Auto Industry; Various Value Added Semis like 19MnB4, SUP11A, IS 11169 25C10BT/ SAE 15B/25, etc. have been developed for applications in Forging, Spring steel, Auto industry, Hi-Tensile TLT segment/ General engineering, etc. Products like SAILFORMING 410 and HSFQ 550 grade for Automotive component and API X60/X65/X70 HR Coil for Oil and Gas Pipe Line have been developed at HSM-2 of Rourkela Steel Plant. Certi_cation has been obtained for the same. Further, IS 5914 HS345 2.2/2.5mm HR Coil for LPG cylinder has been developed and certi_cation has been obtained for the same. Semis in grades AISI SS 410 Low Phosphorous Low Sulphur for usage in oil pipelines and grade CF-53 for nuclear applications have been developed at the Special Steel Plants of your Company. The brand "SAIL SeQR" for TMT has been further strengthened by clocking sales of 8.44 lakh tonnes during FY 2023-24, compared to 5.61 lakh tonnes in the previous year, thereby registering a growth of 50%. 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. 41 more distributors were added in 1-Tier during the FY 2023-24, reaching a total of 58 as on 31^st March, 2024, and thereby, achieving sales of 12.59 lakh tonnes through Tier-I Distributors. 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 50 distributors and 5121 dealers as on 31^st March, 2024. Further, the Company has achieved retail sales of 9.47 lakh tonnes of TMT during FY 2023-24, with a growth of 31% over 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 2023-24, more than 1,20,000 tonnes of various steel products have been sold to these MSMEs, registering a growth of around 35% over the previous year.

During the FY 2023-24, your Company has supplied 2.21 lakh tonnes steel to NSIC/SSIC, with growth of 21% over previous year. Further, in line with National Steel Policy, to improve per capita consumption of steel in the Country, more than 400 "Gaon Ki Ore" workshops were organised during FY 2023-24 across I ndia 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. Build-Expo at Hassan (Karnataka), Real Estate Expo at Vizag, Property Expo organised by Tamilnadu Engineer Association, SAIL SeQR promotion through sponsorship in IIT Ropar and IIT-BHU and Krishi Darshan Expo at Hisar (18^th-20^th Feb'24), International Technical Seminar of IPWE 2023 (Mumbai), Steel & Metal Conference–Supply Chain and Sourcing Strategies (Mumbai), to name a few. SAIL also organised a number of events for the promotion of SAIL SeQR like SAIL SeQR Run for Green, Marathon in Delhi, SAIL SeQR Run at Chennai, etc.

The Warehousing Group of Marketing Organisation has implemented I ntegrated Vehicle Tracking System in all Warehouses & CA/WLA units, ensuring real time tracking of the consignments. Spot-bidding for door delivery was implemented in all Warehouses & CA/WLA units for getting faster competitive freight rates, e_cient transportation for faster door delivery, etc. Your Company has been contributing to nation building since inception by servicing the requirement of various Iconic Structures and also projects of Strategic Importance. During the FY 2023-24, SAIL has supplied signi_cant quantity of Steel to Power Projects, Road, Rail, Airport Infrastructure Projects, Oil & Gas Sector, etc., the major projects being Bengaluru Metro Rail Corpn.; Chennai Metro R ail Corpn.; K alapakkam Nuclear Project in Southern Region; Mumbai Trans Harbour Link Project; Versova Baroda Sea Link Project; Mumabi Delhi expressway (Surat- Dahod Package); Rawbatta Nuclear Plant, Rajasthan in Western Region; Zozilla Tunnel in Sonmarg;

Ganga Expressway (Meerut to Prayagraj); Delhi Amritsar Katra Highway in Northern Region; AIIMS at Deoghar; 111 Km long Broad Gauge Extension project connecting Jiribam-Tupul-Imphal through 52 tunnels & 149 bridges; Mokama Railway Bridge in Patna, Jagannath Pilgrimage Centre at Puri, in Eastern Region.

Your Company is strategically oriented in building and cementing relationship with customers & prospects, upgrading products and services through branding, promotions, research, process improvements, digitalization, etc. SAIL has developed a leadership position in consumer mind space and is striving sincerely to bridge the ever changing expectation gaps in an ever evolving and increasingly demanding business scenario with focus on pro_tability and enterprise value.

Public Procurement Policy for Micro and SmallEnterprises

As required by the Public Procurement Policy of the Government of India, the information on procurement from Micro & Small Enterprises during FYs 2023-24 and 2022-23 is given below:

Modernisation & Expansion Plan

A capital expenditure of 5,646 crore has been incurred during FY 2023-24 against the Revised Budget Estimate of

6,000 crore. Capex planned for the FY 2024-25 is at 6,300 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 579 TCS/Man/Year in FY 2023-24. The manpower strength of the Company was 55,989 nos. as on 1^st April, 2024 with manpower rationalization of 3,197 nos. achieved during the FY 2023-24. 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 2014-15, onwards is depicted below:

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 e_orts 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 e_ective managerial competencies in association with premier institutes.

Preparing employees for tomorrow is being given a major thrust with a view to enable them to e_ectively take up challenges and discharge new roles and responsibilities. Overall 45,314 employees were trained against target of 32,765 employees during the FY 2023-24 on various contemporary technical and managerial modules.In addition to this, the Contractual Workers at Plants are being provided Recognition of Prior Learning (RPL) training through Indian Iron and Steel Sector Council (IISSSC). 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 ful_lling 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 di_erent levels and establishing a peaceful industrial relations climate. Some of the bipartite forums are functioning since early seventies and are su_ciently empowered to address di_erent 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 SteelIndustry (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 o_er 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 O_cers' 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

E_ective internal grievances redressal mechanism has been evolved and established in SAIL Plants and Units, separately for Executives and Non-executives. Grievance Redressal Machinery exists at Plant/Unit level for e_ective 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 _exible and has proved e_ective in promoting harmonious relationship between employees and management.

273 sta_ grievances were received during the FY 2023-24 and with 11 grievances were pending from previous year, 252 sta_ grievances have been disposed of during the year, achieving 89% ful_llment and leaving 32 grievances outstanding at the end of FY 2023-24.

Further, during FY 2023-24, 732 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 1^st April, 2023 to 31^st March, 2024 is as under:

Remuneration Policy

In SAIL, pay and other bene_ts 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 18^thNovember, 2021 w.e.f. 1^st January, 2017 notionally and the actual payment was made w.e.f. 1^st April, 2020. In case of Non-executive employees, the wages including perks were _nalized/revised in bipartite forum of National Joint Committee for Steel Industry (NJCS) with the approval of Ministry of Steel on 18^th November, 2021. The pay scales have been implemented notionally w.e.f. 1^st January, 2017 and the actual payment was made w.e.f. 1^st April, 2020. The Perks and Allowances under Cafeteria Approach have been implemented w.e.f. 18^th November, 2021. In terms of noti_cation dated 5^th June, 2015 issued by Ministry of Corporate A_airs, 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 pro_ts 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 _llip to the economic activities, thus, bene_ting the population in the peripheral areas with di_erent 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 bene_ts of prosperity and development along with SAIL employees.

Recruitment of non-executive employees, around 82% 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 bene_t 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.

Your 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 _ve Integrated Steel Plant locations. The facilities provided include free education, mid-day meals, uniforms including shoes, text books, stationery items, school bags, water bottles, etc.

– – 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, youths & women of peripheral villages have been provided vocational and specialized skill development training at various ITIs, Nursing 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 1^st April, 2024, out of total manpower of 55989, 9477 belong to SCs (16.9%), 8949 belong to STs (16.0%).

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 su_ciently senior level o_cer 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 55989, number of OBCs is

9431, which is 16.8% of the manpower. Reservation for OBCs came into force with e_ect from 8^th September, 1993. OBC candidates joining prior to this date are shown against the Unreserved (UR) category. Liaison o_cers 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 O_cers for SC/ ST/OBC and other dealing o_cers 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 O_cers 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 O_cers (PIO)/Assistant Public Information O_cers and Appellate Authorities and Transparency O_cer 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 o_cers/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. I mplementation of online request has already been introduced from 1^st May, 2015. A compilation of Record R etention Policy of various functions of Corporate O_ce 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 3,071 applications and 529 appeals under the Act during the FY 2023-24 and all of them have been disposed of within the time frame stipulated under the Act. CIC has also taken up 43 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 55,567 applications and 8,582 appeals up to 31^st March, 2024, which were disposed-o_ within the stipulated time. Out of these, 1,151 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 e_ective.

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 2023-24 are as under:

D. AWARDS & ACCOLADES WON DURING THE YEAR

Your Company has won the following awards during the FY 2023-24:

SAIL has been conferred with the McGibony, Institutional

Award by the Academy of Hospital Administration, New Delhi in December, 2023 in recognition of the e_orts made by SAIL during the CoVID-19 pandemic. The award was presented by Dr. Jitendra Singh, Union Minister of State (Independent Charge) Science & Technology; MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space to Shri Krishna Kumar Singh, Director (Personnel), SAIL.

SAIL has been certified as a "Great Place to Work" for the period December, 2023 to December, 2024 by the Great Place to Work Institute, an internationally renowned organization. The "Great Place to Work" certi_cation is a global recognition re_ecting SAIL's commitment to being a respected and sought-after employer.

SAIL achieved the Golden Peacock Environment

Management Award 2023 by the Institute of Directors.

SAIL was awarded ‘Ispat Rajbhasha Samman' for Excellent

O_cial Language Implementation in the year 2021-22. The award was given by the then Minister of State for Steel and Rural Development, Shri Faggan Singh Kulaste ji in the meeting of the Hindi Advisory Committee of the Ministry of Steel held in Srinagar on 25^thA pril, 2023 and was received by Shri Krishna Kumar Singh, Director (Personnel), SAIL.

The Hindi in-house magazine ‘Ispat Bhasha Bharti' of SAIL

Corporate O_ce was honored with the O_cial Language Award on 21^st September, 2023 in the International Hindi Conference, 2023 organised by Vishwa Hindi Parishad.

SAIL Corporate Communication was conferred with four awards by the Public Relations Council of I ndia in the categories (i) Best Digital Newsletter; (ii) Best Use of Social Media; (iii)Best Story telling; and (iv) Best Corporate Film, at the award function held on 22^nd September, 2023.

Cold Rolling Mill-III at Bokaro Steel Plant won first prize in

CII Production Awards (2023-24).

E. E NVIRONMENT MANAGEMENT

Within the ambit of noti_ed 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. As an environmentally conscious and responsible corporate citizen, SAIL undertakes all its operations at its Plants, Mines and Units with the underlying objective of promoting clean, green and sustainable growth. The Company also strives to integrate its business values and operations in an ethical and transparent manner to demonstrate its commitment towards sustainable development and to meet the interest of its stakeholders. 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.

Improvement in Environmental Performance

SAIL Plants and Mines are e_ciently operating the pollution control devices/facilities and maintaining them regularly through revamping/refurbishing/revitalization and also upgrading them regularly, for the purpose of complying with the applicable environmental standards, which are becoming more and more stringent with each passing day. Concerted e_orts including robust and systematic environment management actions and initiatives have resulted in achieving major improvements during the FY 2023-24 over the last _ve years in the following areas:

The Specific Particulate Matter (PM) Emission Load has reduced by more than 15% to 0.58 kg/tcs.

Water consumption has reduced by around 14% to 3.02 m³/tcs.

Specific E uent Discharge has reduced by more than

31% to 1.27 m³/tss.

Specific E uent Load has reduced by around 34% to

0.054 kg/tcs.

Utilisation of BF Slag has increased by more than 1% to

100%.

BOF Slag Utilisation increased by more than 102% to

113%.

Total Solid Waste Utilisation has increased by more than

16% to 102%.

(Values more than 100% indicate utilization from stock) During the FY 2023-24, following projects were completed to improve upon environmental footprint:

Silica Reduction Plant at Dalli-Rajhara Mines under BSP.

Recirculation of recovery pit water of Slag Granulation

Plant of BF#3 at DSP.

Recirculation of wastewater at source to reduce wastewater through Outfall#5 at DSP.

Lagoon Management System at RSP.

Treatment System-1 for treatment and recycling of e uent from Outfall#1 at RSP.

Refurbishing of ESP#2 in Refractory Material Plant at BSL.

Cast House Slag Granulation Plant#1 with BF#1 at BSL.

Treatment and recirculation of wastewater from BF, BOF and PBS seal pot at ISP.

Treatment and recirculation of wastewater from CCP, RHF,

WRM & BM, USM, CCAS and Oxygen Plant at ISP.

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.

Top Pressure Recovery Turbine (TRT), Coal Dust Injection

(CDI) and Waste Heat Recovery (WHR) with stoves in large volume (>4000 m³) Blast Furnaces as well as Torpedo Ladles for Hot Metal transfer to Steel Melting Shop (SMS).

Sinter Plant integrated with improved ignition system

(multi-slit burners), Waste Heat Recovery system with Sinter Cooler.

Continuous Casting of steel.

Cast House Slag Granulation Plants.

Walking Beam type Reheating Furnaces in Rolling Mills.

Variable Voltage Variable Frequency (VVVF) drives in Plant machineries.

Installation of energy-efficient IE3 motors and pumps in plant machineries.

By-product gas fired boilers for power generation.

Initiatives taken for Decarbonisation and Carbon Capture, Utilisation and Sequestration

BSP signed an MoU with the SMS Group, Germany's leading engineering company, in August, 2023 to explore innovative and sustainable solutions for the long-term transformation of steel production. Such collaboration will promote decarbonisation technology in steelmaking processes, in addition to contributing signi_cantly in reduction of carbon footprint at Steel Plants of SAIL.

As a part of Decarbonisation Strategy to become

Carbon Neutral, RSP inked an MoU with M/s. Primetals Technologies, Austria GmbH in February, 2024 in its endeavour to adopt Green Steelmaking Technologies progressively.

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, actions have been initiated to set up pilot project separately at di_erent Plant sites in partnership with M/s. Ram Charan Company Pvt. Ltd. (RCPL), Chennai, to capture carbon from the industrial _ue gases and convert the same into useful products such as Methanol, Ethanol, Propanol, Isoamyl Alcohols and Acetates, etc. After successful pilot scale demonstration, commercial viability of the process shall be studied to reinforce the unwavering commitment of SAIL to advance technologies that contribute to CCUS. In addition to this, IISCO Steel Plant has awarded a contract to IIT, Mumbai for setting up a CCUS facility of 50 TPD. This shall be an important milestone in SAIL's journey towards carbon neutrality.

Strategic Approach on Decarbonisation of SAIL

Keeping in view India's NDC commitment of achieving 2.30 tonnes of per tonne of Crude Steel (t/tcs) by 2030, the

CO2

decarbonisation programme of SAIL has been segregated in three distinct phases, incorporating Action Plans to achieve 2.19 t/tcs by the year 2030-31.

SAIL's decarbonisation strategy has been designed based on the existing architecture and logistics, availability of technology, product basket and market dynamics, technology infusion rate & availability of fund, future expansion plan, breakthrough technological developments, Government policies, and the Company's social commitment.

Phase-I Decarbonisation: From 2005-06 to 2022-23

During Phase-I, SAIL reduced its emission intensity by

CO2

around 20%. Major initiatives taken for reduction of

CO2

emission intensity are enumerated below:

technologies:

Coke Dry Cooling Plant (CDCP) facility in tall Coke Oven

Batteries (COBs).

BF Top gas Pressure Recovery Turbine (TRT), Coal Dust

Injection (CDI) and Waste Heat Recovery (WHR) in large volume BFs.

Torpedo ladle for Hot Metal transfer from BF to SMS.

WHR System in Sinter Plants.

Walking Beam type Reheating Furnaces in Rolling Mills.

Gas-fired boilers for power generation.

Energy efficient shaft kilns.

Variable Voltage Variable Frequency (VVVF) drives in plant machineries.

Use of renewable energy: 6.115 MW of solar plants already set up. Floating type & roof-top solar plants and hydel power plant under installation.

Switching over to energy-efficient illumination: More than 7.34 lakh nos. of conventional lights already replaced with LED lights.

Plantation of around 22 million trees since inception and eco-restoration of mined out areas.

Phase-II Decarbonisation: Post-modernisation period till 2030-31

In consonance with the Country's demand and Make in India initiative, SAIL is also poised to increase its Crude Steel production from 19.2 Million Tonne (MT) during 2023-24 to 31.49 MT by 2030-31 from its Integrated Steel Plants and is committed to substantially reduce emissions through

CO2

adoption of new technologies and increased share of renewable/non-conventional energy.

In Phase-II, SAIL has set a target of ~12% reduction of

CO2

emission intensity in line with India's NDC, thereby, bringing

down the CO2 ^{emission below 2.19 tonne CO}2^/tcs.

Phase-III Deep Decarbonisation for Net Zero by 2070

With the presently available and established technologies in the steel sector, target of carbon neutrality is extremely challenging. The goal carbon neutrality can be achieved through adoption of some breakthrough technologies for steelmaking, which mainly utilize non-fossil fuel based reductant or any alternate fuel and processes which can signi_cantly reduce the emission from steelmaking. The signi_cant ones are as under:

Further improvement in energy efficiency of processes through retro_tting Best Available Technologies (BATs).

Phasing out the energy-intensive old processes.

Full capacity utilization of the installed units.

Usage of improved quality raw material by enhancing bene_ciation facilities and sourcing of good quality raw material from new mines.

Increasing share of renewable/green power to substitute fossil based power.

Integration of Industry 4.0.

Product and Process Innovation through R&D along with new initiatives for developing low carbon technologies for Iron & Steel making.

Partnership with the Technology providers and academic institutes of national/international repute for CCUS/ Green Steelmaking.

Increase green cover to augment carbon sink.

Maximizing the use of tools like Life Cycle Assessment

(LCA) to identify the weak areas and formulating action plans for improving the process and energy e_ciency emissions at

shall help SAIL in achieving the targeted CO2

a much faster pace

Gradually influence supply chain to reduce carbon footprint.

Environment-friendly Disposal of Polychlorinated Biphenyls

The "Stockholm Convention" is a global treaty to protect human health and the environment from Persistent Organic Pollutants (POPs). Use of Polychlorinated Biphenyls (PCB), a POP, in any form shall be completely prohibited by 31^st December, 2025. PCBs are used in transformers as dielectric _uid and also as cleaning solvent. In compliance with the Stockholm Convention on POPs, a facility for environment-friendly disposal of PCBs, has been installed at

BSP in partnership with MoEFCC and UNIDO. This project is the _rst of its kind in the Country.

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 (IARI), under the guidance of the Ministry of Steel. IARI has developed di_erent Steel Slag Based Value Added Products and shared it with the industry partners for evaluation of independent _eld performance. All the _ve Integrated Steel Plants of SAIL have initiated actions to undertake _eld trial at their site. The project will ensure symbiotic growth of steel industry and agriculture. Besides, the project is envisaged to open up a promising avenue towards gainful utilisation of BOF Slag as soil ameliorating agent and promoting circular economy.

SAIL has also taken steps for utilisation of BOF slag in rural road construction under Pradhan Mantri Gramin Sadak Yojna (PMGSY).

BOF Slag used for land filling and road making in ISP &

DSP was 314% and 199% respectively in the _nancial year 2023-24.

As a green initiative and for achieving 100% solid waste utilisation, along with reducing emissions, BSP has

CO2

established ‘SAIL Green Tiles Plant' of capacity 1000 nos. of tiles per day for manufacturing paver blocks using BOF Slag. In addition to this, BSP is also exploring a new avenue for utilisation of BOF Slag as a replacement of runner sand in Blast Furnace. The results during the trials carried out by M/s. Proman Infrastructure Services Pvt. Ltd., Bangalore, were encouraging and 25% BOF Slag sand has been recommended for use as runner dressing material mixed with the normal runner sand.

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, more than one million LED lights have already been installed across all the Plants and Units of the Company, being about 84% of the total lights. 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 ofEMS 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 I ron Ore Mine, Dalli Iron Mine and Warehouses of CMO have also been ISO 14001 Certi_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 taken up a strong drive for promoting Renewable Energy usage at its Plants, Units and Mines and installed few facilities for harnessing solar energy for generation of power as well as for heating purposes. Most of the Guest Houses and Hospitals of SAIL are equipped with Solar Water Heating/Solar Lighting Systems. As a part of its commitment for transition to sustainable energy, SAIL has already commissioned 12.58 MW solar units. Apart from the above, approx. 7 MW bagasse based renewable energy is also being procured. Besides, some of the key renewable power projects under implementation include:

Solar Projects through NSPCL i. 25 MW Ground-mounted Solar Plant at BSL Township ii. 30 MW Floating Solar Plant over Cooling Pond in BSL iii. 20 MW Ground-mounted Solar Plant, DSP Township iv. 15 MW Floating Solar Plant over Waria Reservoir, DSP v. 25 MW Ground-mounted Solar Plant in SAIL Growth Works, Kulti vi. 20 MW Floating Solar Plant over Maroda-2 reservoir, BSP

10 MW Small Hydro Electric Project at Mandira Dam, RSP through JV, GEDCOL-SAIL Power Co. Ltd.

6 MW capacity at Utai near CSVTU on BSP land parcel and

500 kW capacity on available land parcel at Hirri Mines, BSP through CREDA.

SAIL has drawn up ambitious plans to increase its renewable energy capacity to 384 MW by the year 2028-29.

Plantation

Your Company realizes the role of plantation in overall environmental management initiatives. I t 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 CO2^{. 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, around 2.5 lakhs of saplings have been planted during 2023-24. More than 22 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-_eld projects, technology leadership through strategic alliances, ensuring raw material security by developing new mines, diversifying in allied areas, etc. I n line with the above approach, SAIL has formed Joint Venture Companies in di_erent 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 A_airs (CCEA) in its meeting held on 27^thO ctober, 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 I nterest (EOI) of ASP, SSP and VISP were issued on 4^th July, 2019. In case of ASP, no EOI was received. The eligible bidders of VISP and SSP were shortlisted. After two unsuccessful attempts of disinvestment of ASP through EOI, DIPAM has requested Ministry of Steel to examine the issue and apprise them with their views. SAIL is looking at viable options for upgradation/modernization of ASP.

With regard to VISP and SSP, as per the decision of DIPAM, the SAIL Board in its meeting held on 16^th January, 2023 and 12^th February, 2024, had given e_ect to the annulment decision of the DIPAM with regard to these Units.

Business Excellence Initiative

Most of SAIL Plants/Units are certi_ed to IS O 9000, IS O 14000, IS O 45000, SA 8000, ISO 50000 and ISO 27000 Management Systems. Empanelment of Certi_cation Agencies has led to various bene_ts, signi_cant among them being Reduction in Audit Man-Days, Single Certi_cation Agency for all Management Systems of a Plant/Unit, Ease of Operation in engaging Certi_cation Agencies, Improved Quality of Audits, and Reduced administrative hassles. New cycle of Empanelment for selection of Certi_cation Agencies for 2023-26 was _nalised in May, 2023. The scope of the empanelment included Certi_cation and Training related to six Management Systems i.e.ISO 9000, ISO 14000, ISO 45000, SA 8000, IS O 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 embarked on the journey of transformation of business processes through digital initiatives to stay competitive, meet evolving customer expectations and capitalize on emerging opportunities. Cloud computing has been embraced in a big way for better scalability. Arti_cial intelligence has been used for automation of processes. Real-time monitoring systems powered by Internet of Things (IoT) devices have enabled continuous surveillance of assets and environments, allowing for early detection of potential hazards and swift response to emergencies. Through digital transformation, SAIL has been able to unlock new opportunities, streamline processes, enhance customer experiences and stay agile in an ever-evolving landscape.

Some of the initiatives accomplished during the year 2023-24 are given below: Command Centre Dashboard has been implemented for Top Management to monitor the production data at Plants of the Company.

To promote ‘Made in India Branding of Steel Products' by

Govt. of India through implementation of QR Code Label Printing for HR Coils in HSM-2, WRM, BRM, MM, SMS as per National Institute of Design (NID), GOI Guidelines and integration of the same with Quality Council of India (QCI) portal.

The steel industry is experiencing significant shifts driven by technological advancements, changing market demands and evolving regulatory landscapes to maintain competitiveness and sustainability. In this regard, to remain relevant, resilient and to embrace digitalization and leverage its transformative potential, SAIL is in the process of engaging a Consultant for Preparation of Digital Transformation Roadmap and its Implementation.

A women exclusive portal ‘Sakhi' was launched for Motivating and Empowering Women of your Company by creating a supportive environment.

Digital Project Monitoring System and an Electronic

Drawing and Document Management System has been implemented.

Hospital Management Information System (HMIS) has been successfully implemented in the SAIL's hospitals at Bokaro Steel Plant, Rourkela Steel Plant, IISCO Steel Plant, Durgapur Steel Plant and is under implementation at Bhilai Steel Plant.

Technology is changing by leaps and bounds with the growth of mobile applications and digitization. In this regard, your Company has developed an e-Suraksha module along with a mobile app for recording BI-SEE round observations, uploading photographs on-the-spot. This has features of all major verticals–BI-SEE (Behavioural I ntervention- e Safety Encouragement and Engagement), 2I ( Incident Investigation), Audit, Standards, HHP (High Hazard Processes). In addition to this, Near Miss on common Road, Rail/Road incidents, Consequence Management, Safety Training Calendar, ZTR (Zero Tolerance R ecords) are captured from High Speed camera logs. Dashboard, KPI and Analytical Reports are generated for faster mitigation of incident investigation.

To boost the morale of the employees, your Company has launched ‘SAIL SHABASH' recognition scheme by acknowledging outstanding performance through an online system.

In continuance of business automation, Payment Gateway has been implemented for accepting remittances from multiple sources like vendors and customers of Marketing, Township, Hospital, Material Management and from Employees.

Your Company has started the journey of transition from

SAP ECC to S/4HANA by reviewing and harmonizing existing processes. With S/4HANA's in-memory computing, advanced analytics, and simpli_ed data models, businesses can achieve greater agility, faster decision-making, and improved operational e_ciency, thereby, paving the way for digital transformation and future growth.

For better Customer Engagement, Customer Contact

Mobile App for sales and marketing executives have been introduced which captures the 360 view of the customer. In addition to this, Comprehensive Customer Portal for Secondary Sales taking care of all the activities of Customers of Secondary Sales has been implemented. This is an important step to increase transparency, improved customer service, ease of doing business.

Smart Sensors have been installed throughout the production process to monitor and optimize energy consumption, temperature, and other crucial parameters.

Implementation of Digital Signatures in Invoices, Test

Certi_cates and Services PRs using Hardware Security Module.

To reduce human intervention, Automated Vehicle Entry has been introduced, allowing only authorized vehicles into the warehouse through the boom barrier by reading the number plate, thereby, avoiding manual checking by the security sta_.

Taking the technology to one step higher, Digital Twins is being introduced in the Plants by creating digital replicas of physical assets to simulate and optimize processes, reducing the need for physical trials and minimizing material waste. In this regard, SAIL has created Digital Twin of Blast furnace, which allows virtually monitoring the Blast Furnace.

In-house Application has been developed for on-line monitoring of Wagon Tippler#4, 5 & 6, and Conveyor Belt Status of Track Hoppers#1, 2 & 3.

System has been developed for Test Request Memo

Generation, Test Result Recording and Display of Results as per NABL Standard of Continuous Casting Plant (CCP) products.

Corporate Communication

In the dynamic landscape of modern business, e_ective communication plays a central role in corporate operations. Communication acts as binding factor within the company and also with the stakeholders, while creating strong brand names and building lasting relationships. At SAIL, this feat is accomplished through meticulously crafted and comprehensive communication strategies. Central to our ethos, is a _rm belief in the transformative power of meaningful dialogue. Your Company recognizes communication as a two-way street, where engaging with stakeholders-be it the employees, customers, investors, suppliers or the community at large, is extremely meaningful and important.

SAIL adopts an approach involving active listening, understanding needs, providing thoughtful responses and inspiring action. Your Company operates in an environment of openness, ensuring stakeholders are well-informed about the initiatives, activities and future plans. Moreover, we actively seek and value feedback, addressing concerns and involving stakeholders in decision-making processes. This commitment to inclusive communication is at the heart of our working culture that cultivates trust and fosters a sense of shared ownership among all our stakeholders. As the needs and trajectory of SAIL continue to evolve, so too does the role of corporate communications, adapting to meet emerging challenges and opportunities, while remaining steadfast in our dedication to transparency, engagement, and mutual respect.

Internal Communication

Internal communication plays a crucial role in empowering the employees and fostering a positive work environment. In your Company, employees are the drivers of change and success. Internal communication serves as a strong means for organizational success while driving collaboration, engagement, information sharing and change management as well as the feedback mechanisms within the Company. SAIL plays an essential role in building a cohesive and resilient organization capable of navigating challenges and seizing opportunities in today's dynamic business environment. SAIL Gaurav Diwas, the online celebration of SAIL's Foundation Day, was consecutively organized fourth time in a row, fostering camaraderie and togetherness amongst the SAIL collective. ‘SAIL Track', your Company's corporate video news capsule has successfully completed more than 80 episodes, while the in-house produced corporate house journal ‘SAIL News' has been entirely revamped into a fresh and reading friendly format. Several mini-videos promoting SAIL steel and steel in general have been produced in-house while other mini-videos highlighting your Company's many achievements have been produced annually to keep stakeholders updated and informed. These measures enabled to reach out to a wide gamut of stakeholders via Company's social media handles and corporate website. 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

External communications are essential for organizations to cultivate positive relationships while conveying its commitment to transparency and credibility. E_ective external communication is an enabler to engage with customers, investors, partners and the broader community, shaping perceptions, building trust, and fostering loyalty. Your Company ensures that our stakeholders are well-informed about corporate developments, new initiatives, _nancial health and achievements through regular press releases, media interactions and social media updates.

At SAIL, we extensively use a mix of both new-age and traditional media channels to connect with the audience while leveraging the various platforms of social media, witnessing steady growth in our social media presence. Adopting a multi-pronged approach in engaging with the media, our commitment to timely and transparent communication has been instrumental in creating a strong brand image and maintaining healthy relations. With a focus on maintaining organic followership, our social media presence continues to grow steadily across all the platforms. By conveying transparent and compelling messages through various channels like social and conventional media and relevant advertising, your Company always strives to strengthen its brand presence along with sustained long-term success in the competitive marketplace. In an era marked by rapid change, e_ective communication in business is more critical than ever. SAIL's dynamic communication strategy ensures seamless _ow of information cultivates a culture of creativity and innovation and enhances employee engagement.

At SAIL, the focus is not only on communicating your Company's achievements but also on showcasing its commitment to the community and the environment by highlighting the Organization's sustainability practices and adherence to ethical values. This helps in building strong relationships, developing a sense of shared purpose and in garnering support for our initiatives. These assist in driving growth and sustainability of the Organization.

As we move forward, our commitment to openness, collaboration and engagement remains unwavering. Our communication approach continues to evolve, setting new benchmarks in employee participation and stakeholder engagement. Whether through engaging in-house journal, impactful press releases or vibrant social media campaigns, our narrative embodies 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, e_ciency 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 2023-24:

To increase vigilance awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants andUnits of the Company. A total of 190 workshops involving 4092 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, eighteen dedicated two day Preventive Vigilance training programs were organised during FY 2023-24, wherein, a total of 327 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 2214 preventive checks including _le scrutiny and Joint Checks were conducted at di_erent Plants/ Units.

Vigilance provides vital inputs to the concerned authorities for improving the prevailing systems for bringing about more transparency. Accordingly, eleven System Improvement Projects (SIPs) were undertaken at di_erent Plants/Units of SAIL.

13 cases were taken up for Intensive Examination at di_erent Plants/Units. During these I ntensive 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 30^th O ctober to 5^th November, 2023. The week started with administering the Integrity Pledge and reading out the messages of dignitaries on 30^thO ctober, 2023 at SAIL Corporate O_ce 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 Drawing competition, etc. were organized for School/College Students across various townships of SAIL.

In an another Participative Vigilance initiative taken up,

Ethics Club and Ethics Circle activities were undertaken in di_erent Plants/Units during the FY 2023-24. 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.

The concept of Learn from Each Other (LEO) Workshops has been introduced in Vigilance Department with the aim of arriving at result oriented solutions in common areas where complaints are being received in various Plants/Units and also to standardize the functioning of Vigilance. The LEO workshops provide a platform for Vigilance executives from SAIL Plants/Units as well as other PSUs to collaborate with each other on carving out new paths to take on the challenges of various important topics pertinent to Vigilance. The main takeaways from these workshops are also submitted to Higher Management for further necessary actions.

94 additional sites of SAIL including Bhilai Steel Plant,

Durgapur Steel Plant, Rourkela Steel Plant, IISCO Steel Plant, Alloy Steels Plant, Salem Steel Plant, Central Marketing Organization, Chandrapur Ferro Alloys Plant, SAIL Refractory Unit, Ranchi based Units and Environment Management Division have been included by BIS under SAIL ABMS (as per S I O 37001 : 2016) License No. CRO/ AB/L-8000027 dated 2^ndN ovember, 2022. Re-Certi_cation ( I nitial Certi_cation date: 17^th February, 2006) of QMS as per ISO 9001:2015 for SAIL Vigilance has been done with validity from 16^th February, 2024 to 15^th February, 2027. Thus, Steel Authority of India Limited has achieved the distinction of becoming the _rst Maharatna Public Sector Unit to have implemented the Anti-Bribery Management System (ABMS) across all its Plants/Units.

The following four thrust areas were identified by SAIL

Vigilance for examination/scrutiny:

(i) Scrutiny of Stock veri_cation system at WH/Stores, other service units associated. (ii) Scrutiny of cases, where the items like spares, consumables, etc. have been procured and are lying in inventory for more than 3 years after receipt of the items.

(iii) Scrutiny of cases where single techno-commercial eligible o_er has been received against OTE cases. (iv) Scrutiny of procurement cases through GeM portal.

‘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 1^stA pril, 2023, a total of 60 complaints were pending and the closing balance as on 31^st March, 2024 was 68. The summary of disposal of complaints during 2023-24 is as under:

Complaints Disposed:

Vigil Mechanism

The Company has adopted Vigil Mechanism for conducting the a_airs 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 complainant i.e. employee and includes a Director 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. It also provides for protection of any other employee assisting in the investigation or furnishing evidence with regard to a complaint. The summary of complaints under Vigil Mechanism during the Financial Year 2023-24 is as under:

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion

47 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 31^st March, 2024 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 31^st March, 2024 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 2023-24. The Board had _xed a fee of 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 2023-24, 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 31^st March, 2024. 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 2023-24, 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.

CORPORATE GOVERNANCE

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Corporate Governance Report and Auditors' Certi_cate 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 a_rmed 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.

"W.r.t the observation of Third Party Assurance provider on the BRSR that GHG accounting process is not standardized as per ISO14064-1/2/3 Year 2018/19, it is stated that WSA methodology has been based on Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard which has also been basis of building of the S I O 14064 standards. The ISO has used the GHG Protocol standard as primary seed document during development of ISO 14064-1 standards that provide guidance for Quanti_cation and R eporting at the Organizational Level. The WSA

methodology was introduced by the Ministry of Steel for CO2

emission calculation from I ndian BF-BOF route steelmaking. SAIL follows the emission calculation methodology

CO2

developed by the World Steel Association since 2007-08. The methodology is widely accepted by the steelmakers across the globe and is adopted by the International Organization for Standardization as ISO 14404 standards."

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

IISCO-U jjain 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.

SRCL is operating the Salem Refractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16^th 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 o_.

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 O_ce 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 31^st March, 2024 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 31^st March, 2024 under Section 143(6) (b) read with Section 129(4) of the Companies Act, 2013 are placed atAnnexure-VIII to this Report. Further, the statement containing salient features of the _nancial statements of the Subsidiary, Joint Venture and Associate Companies in the prescribed Form AOC-1 is placed at Annexure-IX to this Report.

RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE (RAJYA SABHA) IN ITS 150^TH REPORT

During the FY 2023-24, the Reports of Comptroller and Auditor General of India (C&AG) tabled in the Parliament do not contain any Audit Para pertaining to SAIL.

ANNUAL RETURN

As per the provisions of the Companies Act, 2013, the Annual Return for FY 2023-24 is available at https://www. sail.co.in/sites/default/_les/2023-24/SAIL_DRAFT_ANNUAL_ RETURN_2023_24.pdf.

BOARD MEETINGS

During the year, 12 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report 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 R eport at Annexure-IV.

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

Implementation of Internal Financial Control (IFC) in SAIL is guided by established frameworks such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO) model. The COSO framework provides a structured approach for designing, implementing, and assessing internal controls to ensure e_ective _nancial management and compliance. SAIL's internal _nancial control system is designed to provide a comprehensive framework for ensuring _nancial accuracy, protecting assets, and maintaining regulatory compliance. The company typically engages in regular reviews and updates of its internal control systems to adapt to changing regulatory requirements and operational challenges.

SAIL has well established and documented policies and procedures, which are adhered to for transparent, e_cient 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 _nancial statements.

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. SAIL's robust protocols such as independent internal audit, documented policies, guidelines, procedures, regular review by Audit Committee/Board, etc. helps in compliance of Corporate Governance and Internal Financial Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. SAIL is committed to the highest standards of Corporate Governance where the Board is accountable to all stakeholders for reporting e_ectiveness of Internal Financial Control and its adequacy. The adequacy of SAIL's internal _nancial control is re_ected in its audit reports, regulatory compliances, and e_ective risk management. Regular updates and management oversight helps in maintaining and enhancing these controls, ensuring the company's _nancial stability and integrity. The deployment of SAP Governance, Risk, and Compliance (GRC) modules and IT platforms signi_cantly enhances the e_ectiveness of Internal Financial Control at SAIL. SAP GRC modules are designed to integrate with the Organization's _nancial and operational systems to streamline compliance, risk management, and control processes.

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 theAnnual 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 a_airs of the Company at the end of the Financial Year and of the pro_t or loss of the Company for that period; (iii) the Directors have taken proper and su_cient 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 _nancial control to be followed by the Company and that such internal _nancial controls are adequate and are operating e_ectively; 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 e_ectively.

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 A_airs.

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 31^st March, 2024 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 2023-24, 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 _nancial statements. Therefore, particulars of contracts or arrangements with related parties referred to in Section 188(1) along with the justi_cation 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/_les/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

SAIL has a comprehensive Enterprise Risk Management (ERM) Policy that has been approved by the Board and is designed to comply in accordance with the regulatory frameworks provided by the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR), Regulations, 2015 and with the latest amendments in the Companies Act, 2013. These regulations ensure that SAIL maintains robust governance and risk management practices.

The Risk Management Policy aims to identify, assess, monitor and mitigate risks to ensure the Company's _nancial health, operational e_ciency, and strategic success. It emphasizes on systematic identi_cation of _nancial, operational, strategic, and compliance risks across all business units. It also includes speci_c provisions for identifying and managing Environmental, Social and Governance (ESG) risks, IT & Cyber Security and Sustainability-related risks. Risks are assessed based on their likelihood and potential impact, using both qualitative and quantitative methods. For each identi_ed risk, appropriate mitigation strategies and controls are developed and implemented to minimize risk exposure. SAIL employs continuous monitoring systems to track risk indicators and the e_ectiveness of control measures. Regular risk reports are generated and reviewed by the Risk Management Committee (RMC) and the Board, ensuring timely communication of emerging risks.

The Risk Management Policy is dynamic, incorporating regular reviews and updates to adapt to changing regulatory requirements and business environments.

The architecture of Enterprise Risk Management (ERM) in SAIL comprises a well-designed multi-layered organization structure, with each Plant or Unit having its own perceived Risks which are under the constant monitoring by the Risk Owners or Risk Champions who frame and implement the mitigation strategy and take it to its logical conclusion. RMC of Plants/Units reviews and reports the risks periodically to ChiefRiskO _cer (CRO) who in turn apprises the risks to SAIL Risk Management Committee (SRMC) which is responsible for formulating and overseeing the implementation and evaluation of the risk management framework to assess its continuing e_ectiveness. In compliance to the Companies Act, 2013, the Board ensures the development and e_ective implementation of the Risk Management Policy. The Audit Committee evaluates the adequacy and e_ectiveness of the risk management systems, ensuring continuous improvement.

By strengthening the Risk Management Committee, enhancing disclosures, aligning risk management with corporate governance practices, and integrating IT systems, SAIL ensures robust compliance with regulatory requirements and e_ective management of risks. These measures contribute to the Company's long-term sustainability and resilience in an increasingly complex and dynamic business environment. SAIL's Risk Management Policy Statement is available 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 bene_ts 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 di_erence in people's lives, your Company has been structuring and implementing CSR initiatives from the inception. These e_orts have seen the erstwhile obscure villages, where SAIL Plants are located, turn into large industrial hubs today.

The CSR initiatives of your Company are undertaken in conformity to the Companies Act, 2013, Schedule-VII to the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014, Companies (CSR Policy) Amendment Rules, 2021 and 2022. SAIL carries out CSR projects mainly 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, providing 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 R eport 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 183.74 lakh people living in the vicinity of its Plants and Units during the period 2011-2024. In order to deliver quality healthcare at the doorsteps of the needy, regular health camps are being organised in various villages on _xed days for the people living in the periphery of Plants/ Units/Mines. During the FY 2023-24, regular Health Camps have been organized and 5 Mobile Medical Units (MMUs) extended quality healthcare to about 1.80 lakh 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 84,000 patients during FY 2023-24.

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 12026 BPL category students at integrated steel plants and mines locations with facilities of free education, mid-day meals, uniform including shoes, text books, stationery items, school bag, water bottles, etc., under CSR.

More than 450 children from tribal and naxal-a_ected areas are getting free of cost comprehensive educational facilities viz. Schooling, Accommodation, Meals, Uniform, Textbooks, Infrastructure, etc. at Saranda Suvan Chhatravas and Central School, Kiriburu; Gyanodaya Chhatravas, BSP School Rajhara, Bhilai; Gyanjyoti Yojna, Bokaro, and other schools.

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 1578 youths and 2369 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 chullah making, etc. About 490 youths have been sponsored for ITI training at ITIs Bolani, Bargaon, Baliapur, Rourkela and Bokaro Private ITI, 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 Sustainability:

Maintenance of parks, water bodies, botanical gardens and plantation & maintenance of over 5 lakh trees in the townships is being undertaken.

Support to Divyangs and 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, "Abasar", "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 3^rd December, 2023 in alignment of ongoing ‘Azadi ka Amrit Mahotsav'. The assistive aids & 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 of your Company.

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 supported participation expenditure of the selected/trained Divyang athletes for 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. K anker, Narayanpur and Rajnandgaon in Chhattisgarh and West Singhbhum, Bokaro, Ranchi in Jharkhand and Banka in Bihar.

SAIL Employees Rendering Volunteerism and Initiatives for Community Engagement (SERVICE): It supports volunteer activities and community outreach by SAIL employees.

REPORTING OF FRAUD BY AUDITORS: During the FY 2023-24, neither the Statutory Auditors nor the Secretarial Auditor have reported to the Audit Committee any instances of fraud committed against the Company by its o_cers or employees, which would need mention in the Board's Report.

PERFORMANCE EVALUATION OF DIRECTORS AND BOARD:

Ministry of Corporate A_airs vide its Noti_cation dated 5^th 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 Noti_cation dated 5^th July, 2017 has noti_ed 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 Noti_cation dated 5^th 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 signi_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. During FY 2023-24, the Company had identi_ed itself as a Large Corporate and accessed the incremental borrowings of 2,505.06 crore. For FY 2024-25, SAIL has submitted the required information along with the Audited Financial Results for the year ended March 31, 2024 as per the applicability of SEBI Circular dated 19^thO ctober, 2023.

Based on the framework, the issuance of debt securities to the extent of 25% of domestic borrowing in a year is required to be met in the same FY and/or the succeeding two FYs. Therefore, the Company was required to issue debt securities amounting to 627 crore (i.e. 25% of Incremental borrowing). Till 31^st December, 2023, SAIL had incremental borrowings of about 155 crore only. The major amount of incremental borrowings has been availed during Q4 2023-24. SAIL has analysed the cost of raising Bonds as compared to Long Term loans and as per the leading research _rms, the spread for raising NCDs by AA Rated PSUs was hovering around 1.00 – 1.10% over G-secs in FY 2023-24. The Company has borrowed Long Term rupee loan at much lower than the e_ective rate of NCDs in FY 2023-24. Hence, decision regarding issuance of NCDs may be taken in subsequent years depending on the market conditions. vi. Government of India, Ministry of Steel, vide its letters dated 19^th January, 2024 in exercise of the powers conferred by sub-rule (1) of Rule 20 of the Conduct, Discipline and Appeal Rules, 1977 of Steel Authority of India Limited, had placed Shri V.S. Chakravarthy, Director (Commercial) and Shri A.K. Tulsiani, Director (Finance) on suspension with e_ect from 19^th January, 2024. Further, complying with the Ministry of Steel, Government of India, letter dated 19^th January, 2024, the Company had placed 26 below Board Level O_cials of the Company, on suspension with e_ect from 19^th January, 2024. Interim arrangements were made to continue uninterrupted operations of the Company. Subsequently, Government of India, Ministry of Steel, vide Orders dated 28^th June, 2024, has revoked the suspension of Shri V.S. Chakravarthy, Director (Commercial) and Shri A.K. Tulsiani, Director (Finance) with immediate e_ect. Further, the Company has revoked the suspension of 25 below Board Level O_cials of the Company, with immediate e_ect, with one o_cial having superannuated during the interim period.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Smt. Soma Mondal ceased to be Chairman w.e.f. 30^thA pril, 2023.

Shri Amarendu Prakash, Director (In-charge, BSL), has taken over as Chairman w.e.f. 31^st May, 2023.

Smt. Neelam Sonker, Independent Director, has tendered her resignation vide letter dated 7^th April, 2024, with immediate e_ect.

Shri Birendra Kumar Tiwari has been appointed as Director

(In-charge, BSL) w.e.f. 20^thA pril, 2024.

ACKNOWLEDGEMENT

The Board ofDirectors of your Company wish to place on record their appreciation for the sincere, untiring & dedicated e_orts 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, D epartment of Public Enterprises, Railways, State Governments, Electricity Boards, etc. The Board also extend its heartfelt thanks to all its Stakeholders, including Members, Investors, Customers, Vendors, Bankers and Consultants for their continued support and unwavering con_dence reposed in the Company.

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 and constructive suggestions.