Steel Authority of India Limited - A Maharatna Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. SAIL is also among the five Maharatnas of the country's Central Public Sector Enterprises.

 

SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite mines. The company has the distinction of being India’s second largest producer of iron ore and of having the country’s second largest mines network. This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for steel making.

SAIL's wide range of long and flat steel products are much in demand in the domestic as well as the international market. This vital responsibility is carried out by SAIL's own Central Marketing Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer Contact Offices. CMO’s domestic marketing effort is supplemented by its ever widening network of rural dealers who meet the demands of the smallest customers in the remotest corners of the country. With the total number of dealers over 2000 , SAIL's wide marketing spread ensures availability of quality steel in virtually all the districts of the country.

SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAIL’s five integrated steel plants.

With technical and managerial expertise and know-how in steel making gained over four decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients world-wide.

SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi which helps to produce quality steel and develop new technologies for the steel industry. Besides, SAIL has its own in-house Centre for Engineering and Technology (CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO Certified.

Major Units 

Integrated Steel Plants

Bhilai Steel Plant (BSP) in Chhattisgarh Durgapur Steel Plant (DSP) in West Bengal Rourkela Steel Plant (RSP) in Orissa Bokaro Steel Plant (BSL) in Jharkhand IISCO Steel Plant (ISP) in West Bengal

Special Steel Plants

Alloy Steels Plants (ASP) in West Bengal Salem Steel Plant (SSP) in Tamil Nadu

Visvesvaraya Iron and Steel Plant (VISL) in Karnataka

Subsidiary

Maharashtra Elektrosmelt Limited (MEL) in Maharashtra

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Joint  Ventures NTPC SAIL Power Company Pvt. Limited (NSPCL): A 50:50 joint venture between Steel Authority of India Ltd

(SAIL) and National Thermal Power Corporation Ltd (NTPC Ltd); manages SAIL’s captive power plants at Rourkela, Durgapur and Bhilai with a combined capacity of 814 megawatts (MW).

Bokaro Power Supply Company Pvt. Limited (BPSCL): This 50:50 joint venture between SAIL and the Damodar Valley Corporation (DVC) is managing the 302-MW power generating station and 660 tonnes per hour steam generation facilities at Bokaro Steel Plant.

Mjunction Services Limited: A 50:50 joint venture between SAIL and Tata Steel; promotes e-commerce activities in steel and related areas. Its newly added services include e-assets sales, events & conferences, coal sales & logistics, publications, etc.

SAIL-Bansal Service Centre Limited: A joint venture with BMW Industries Ltd. on 40:60 basis for a service centre at Bokaro with the objective of adding value to steel.

Bhilai JP Cement Limited: A joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.2 million tonne (MT) slag-based cement plant at Bhilai.

Bokaro JP Cement Limited: Another joint venture company with Jaiprakash Associates Ltd on 26:74 basis to set up a 2.1 MT slag-based cement plant at Bokaro.

SAIL & MOIL Ferro Alloys (Pvt.) Limited : A joint venture company with Manganese Ore (India) Ltd on 50:50 basis to produce ferro-manganese and silico-manganese required in production of steel.

S & T Mining Company Pvt. Limited: A 50:50 joint venture company with Tata Steel for joint acquisition & development of mineral deposits; carrying out mining of minerals including exploration, development, mining and beneficiation of identified coking coal blocks.

International Coal Ventures Private Limited: A joint venture company/SPV promoted by five central PSUs, viz. SAIL, CIL, RINL, NMDC and NTPC (with respectively 28.7%, 28.7%, 14.3%, 14.3% and 14.3% shareholding) aiming to acquire stake in coal mines/blocks/companies overseas for securing coking and thermal coal supplies.

SAIL SCI Shipping Pvt. Limited: A 50:50 joint venture with Shipping Corporation of India for provision of  various shipping and related services to SAIL  for importing of coking coal and other bulk materials and other shipping-related business.  

SAIL RITES Bengal Wagon Industry Pvt. Limited: A 50:50 joint venture with RITES to manufacture, sell, market, distribute and export railway wagons, including high-end specialised wagons, wagon prototypes, fabricated components/parts of railway vehicles, rehabilitation of industrial locomotives, etc., for the domestic market.

SAIL SCL Limited:  A 50:50 JV with Government of Kerala where SAIL has management control to revive the existing facilities at Steel Complex Ltd, Calicut and also to set up, develop and manage a TMT rolling mill of 65,000

MT capacity along with balancing facilities and auxilliaries. 

Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its ‘Maharatna’ status, enjoys significant operational and financial autonomy

A Rich Heritage A flashback album of SAIL

The Precursor

SAIL traces its origin to the formative years of an emerging nation - India. After independence the builders of modern India worked with a vision - to lay the infrastructure for rapid industrialisaton of the country. The steel sector was to propel the economic growth. Hindustan Steel Private Limited was set up on January 19, 1954.

Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and Steel Ministry. From April 1957, the supervision and control of these two steel plants were also transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to Calcutta in July 1956, and ultimately to Ranchi in December 1959.

The 1 MT phases of Bhilai and Rourkela Steel Plants were completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel production of HSL went up from .158 MT (1959-60) to 1.6 MT. A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and operate the steel plant at Bokaro.The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela - the Tandem Mill - was commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed in August 1969 after commissioning of the Furnace in SMS. Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and subsequently to 4MT in 1972-73.

Holding Company

The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing industry. The policy statement was presented to the Parliament on December 2, 1972. On this basis the concept of creating a holding company to manage inputs and outputs under one umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an operating company.

Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial development of the country. Besides, it has immensely contributed to the development of technical and managerial expertise. It has triggered the secondary and tertiary waves of economic growth by continuously providing the inputs for the consuming industry.

SAIL - Into the Future

Modernisation & Expansion

SAIL, is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. The objective is to achieve a production capacity of 26.2 MTPA of Hot Metal from the base level production of 14.6 MTPA (2006-07 – Actual).

 

    A new unit coming up at ISP

Orders for all major packages of ISP & SSP and part packages of BSL, BSP, RSP & DSP Expansion have been placed and these packages are in various stages of implementation

Objective of Expansion Plan 100% production of steel through Basic Oxygen Furnace (BOF) route 100% processing of steel through continuous casting Value addition by reduction of semi-finished steel Auxiliary fuel injection system in all the Blast Furnaces State-of-art process control computerization / automation State-of-art online testing and quality control Energy saving schemes Secondary refining Adherence to environment norms

Production Target

The production target of hot metal, crude steel and saleable steel after Expansion is indicated below:

(Million tonne per annum)

ItemBase Case(2006-07)

ActualAfter Expansion

Hot Metal 14.6 26.2 (23.5)Crude Steel 13.5 24.6 (21.4)

Saleable Steel 12.6 23.1 (20.2)

Figures in bracket indicate capacity after implementation of ongoing phase of modernisation and expansion to be completed by 2012-2013

Oxygen Plant at Durgapur Steel Plant Capital Expenditure

Amount spent on Expansion Plan and other Capital Schemes of SAIL (incl. subsidiary) during last 3 years are as follows:

YearTotal

(Rs./Crore)2007-08 21812008-09 52332009-10 10606

 VISION

To be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.

  CREDO

We build lasting relationships with customers based on trust and mutual benefit.

We uphold highest ethical standards in conduct of our business.

We create and nurture a culture that supports flexibility, learning and is proactive to change.

We chart a challenging career for employees with opportunities for advancement and rewards.

We value the opportunity and responsibility to make a meaningful difference in people's lives.

:: JVs :: MOUs

SAIL has signed MoUs with several Indian and foreign companies to pursue its strategic interests:

POSCO,Korea: Strategic alliance for cooperation in a wide range of business & commercial interest areas. Pursuant to this, another MoU has been signed for joint venture initiative in the area of (a) manufacture & commercialisation of CRNO; & (b) Exploration of upstream & downstream opportunities in utilising FINEX technology by both the companies

Kobe Steel Limited (KSL), Japan: To explore by joint feasibility study, the technical & economic feasibility of ITmk3 technology for producing premium grade iron nuggets using iron ore fines and non coking coal.

Another MoU for collaborating and cooperating for studying the possibility of producing high value products such as (i) products for automobiles, (ii) products for nuclear and ordinary power plants, such as forged material and tubing material, (iii) special alloy steels and bars, and stainless steel tube and/or any other products mutually agreed to between the parties. 

Rashtriya Ispat Nigam Ltd. (RINL): For jointly exploring and developing high grade low silica limestone deposits of Qalhat in the sultanate of Oman for supply to steel plants of SAIL & RINL on a long term basis.

Larsen & Toubro Ltd (L&T): To jointly set up, develop, manage and own captive/independent power plant(s) at suitable location/s to meet future power requirements of SAIL including opportunities to own captive thermal coal blocks to cater to the power plants’ requirements.

National Mineral Development Corporation (NMDC): For jointly developing limestone mine at Arki in Solan district of Himachal Pradesh in 50:50 JV which will supply high grade low silica Limestone primarily to the steel plants of SAIL & NMDC.

Hindustan Prefab Ltd (HPL): For jointly exploring the techno-economic viability of carrying out the business of prefabricated structures in steel and cement.

IRCON: For jointly working on infrastructure projects having transportation by rail/road as a component both in India and abroad.

Shares Department

Steel Authority of India Limited provides services to its shareholders through its Registrar and Transfer Agent, M/s MCS Limited, located at F-65 Okhla Industrial Area, Phase I, New Delhi – 110020 (Tele- 011-41406149 , 51,52, Fax No:- 011-41709881, E mail: - mcsdel@vsnl.com. ) to carry out all share transfer and other related activities on our behalf.

Some of the important services provided to shareholders are:

• Transfer of Shares • Transmission of Shares • Transposition of Shares • Conversion of Single holdings into joint holdings & Vice Versa • Appointment of nominees • Registration of Powers of Attorneys

• Changing name • Updating change in addresses of shareholders • Issue of replacement/split/consolidation of shares certificates • Payment of dividend, revalidation and issue of duplicate warrants • Registration of Bank Mandates (Bank name, Account no., Bank address, Bank MICR number) in case of shares held in physical form.

SAIL Shares are under compulsory electronic trading mode. As such, shareholders are required to convert their physical shares into dematerialized form through any of the depository participant.

As a part of good Corporate Governance, SAIL has constituted a Shareholders/Investors Grievance Committee under the Chairmanship of an Independent Director along with Director (Personnel) and Director (Finance) of the Board of Directors of SAIL to look into complaint of shareholders.

Investor Relations SHARE HOLDING PATTERN

AS ON 31ST MARCH ' 2009

Category of ShareholdersNo. of EquityShares Held

No. ofHolders

Amount(Rs. in Crs)

Percentage(%) holding

GOI 3,544,690,282 1 3544.69 85.82 Financial Institutions & Banks 282,567,661 89 282.57 6.84

Mutual Funds 31,391,984 77 31.39 0.76 FII's 155,491,955 244 155.49 3.76

GDR 643,345 2 0.64 0.02 Companies/ Trusts 28,718,088 3,563 28.72 0.70

Individuals * 86,897,230 354,606 86.90 2.10 * Incl. Employees and NRI's

Total 4,130,400,545 358,582 4,130 100 SHAREHOLDING PATTERN ( % of Equity)

Investor Relations

:: Shareholding Pattern :: Code of Corporate Disclosures :: Code of Conduct

Code of corporate disclosures practices for prevention of Insider trading

1.0 Corporate Disclosure Policy

1.1 Price Sensitive Information shall be given to the Stock Exchanges and disseminated promptly on a continuous basis. For this purpose Price Sensitive Information means any information, which relates directly or indirectly to a company and which if published is likely to materially affect the price of shares of the company. The following shall be deemed to be Price Sensitive Information.

i) Periodical Financial results of the company;

ii) Intended declaration of Dividend (Both Interim and Final);

iii) Issue of Securities or buy back of Securities;

iv) Any major expansions plans or execution of new projects;

v) Amalgamation, Mergers or Takeovers;

vi) Disposal of the whole or substantial part of the undertaking; and

vii) Significant changes in the policies, plans or operations of the company;

2.0 Procedures for responding to any queries or request by stock exchanges for verification of market rumors.

2.1Replies to all queries or requests for verification of market rumours shall by sent only after obtaining the approval of the Chairman / concerned Director. In the absence of the Chairman / Director concerned, the reply can be sent only with the approval of the Executive Director / Additional Director (I/c).

2.2. Such replies shall be signed by the Company Secretary who is also the Compliance Officer. In his absence, such replies shall be signed by Deputy Company Secretary or such other officer as may have been authorized.

2.3. A copy of such replies shall also be sent to other stock exchanges where shares of the company are listed. Such replies shall also be kept on the Website of the company.

2.4. Replies to such queries shall be sent on priority basis preferably within 48 hours from the time of receipt of such query or request. The date and time of receipt of such queries/request shall be recorded.

2.5 The Company Secretary shall oversee corporate disclosure. He shall be responsible for deciding whether a public announcement is necessary for verifying or denying rumours and then making the disclosure.

3.0 Overseeing and coordinating disclosure

3.1 The Compliance officer, i.e. the Secretary shall be responsible for ensuring that the company complies with the continuous disclosure requirements.

4.0 Procedure for Disclosure / dissemination of Price Sensitive Information with special reference to Analysts, Institutional Investors etc.

4.1 The Company should follow the guidelines given hereunder while dealing with Analysts and Institutional Investors.

4.2. Only Public information is to be provided to such Analysts and Institutional Investors.

4.3 In order to avoid misquoting or misrepresenting it is desired that two Company representatives be present at the meeting with Analysts and Institutional Investors and the discussion should be recorded.

4.4. The unanticipated question may be taken on notice and a considered response be furnished later.

5.0 Procedure for posting of Corporate Disclosure in company’s website

5.1 The following information shall be continuously disclosed in the company’s website:

5.1.1 Intimation regarding date of Board Meeting in which the company approves the un-audited quarterly/half yearly financial results, audited annual financial results and dividend.

5.1.2 Un-audited quarterly and half yearly financial results and audited annual financial results.

5.1.3 Details of dividend recommended by the board.

5.1.4 Details of Turnover, PBDIT, Depreciation, Interest, PAT, etc.

5.1.5 AGM date etc.

5.1.6 Book closure and Record date

5.1.7 Disclosure made to Analysts and Institutional Investors

5.1.8 Information furnished to the Stock Exchanges under continuous disclosure requirement.

5.1.9 The Company Secretary shall be oversee the disclosures made in the company’s website.

6.0 Timely reporting of Shareholdings / Ownership and changes in Ownership.

6.1 Disclosure of Shareholdings / Ownership by major Shareholders and disclosure of changes in ownership as provided under any regulations made under the act and the listing agreement shall be made in a timely and adequate manner.

7.0 The above code has been framed in pursuance to the Regulation contained in clause 12(2) of Chapter IV of SEBI (Prohibition of Insiders Trading) Regulations, 1992 inserted by the SEBI (Insider Trading) (Amendment) Regulations, 2002 w.e.f. 20.02.2002

Investor Relations

:: Shareholding Pattern ::Code of Corporate Disclosures :: Code of Conduct

Code of conduct for Board members and senior management personnel

1.0 Introduction

1.1 This code of Conduct (“this Code”) shall be called "The Code of Conduct for Board Members and Senior Management Personnel” of Steel Authority of India Limited (hereinafter referred to as “the Company”).

1.2 The subject code has been framed specifically in compliance with the provisions of clause 49 of the listing agreement with stock exchanges.

1.3 The purpose of this code is to enhance further an ethical and transparent process in managing the affairs of the Company.

1.4 1.4 It shall come into force with effect from the date on which it is approved by the Board of Directors / Chairman.

2. Definitions & Interpretations:

2.1 The term "Board Members" shall mean Directors on the Board of Directors of the Company.

2.2 The term “Whole-time Director” shall be the Directors on the Board of Directors of the Company who are in whole-time employment of the Company.

2.3 The term “Part-time Director” shall mean Directors on the Board of Directors of the Company who are not in whole time employment of the Company.

2.4 The term “Relative” shall have the same meaning as defined in Section 6 of the Companies Act, 1956 (Refer Appendix-I)

2.5 The term “Senior Management Personnel” shall mean all Chief Executive Officers and Executive Directors of the Company.

2.6 In this code words importing the masculine shall include feminine and words importing singular shall include the plural or vice versa.

3. Applicability:

3.1 This code shall be applicable to the following persons:

a. All whole-time Directors including the Chairman of the Company. b. All part-time Directors. c. All Senior Management Personnel of Steel Authority of India Limited.

3.2 The whole-time Directors and Senior Management Personnel should continue to comply with other applicable/ to be applicable policies, rules and procedures of the Company. If the ethical and professional standards set out in the applicable laws and regulations are below that of the Code, then the standards of the Code shall prevail.

4.0 Key Requirements

The Board Members and Senior Management Personnel must act within the authority conferred upon them and in the best interests of the company and observe the following code of conduct:

Shall act in accordance with the highest standard of honesty, integrity, fairness and ethical conduct while working for the Company as well representing the Company without allowing their independent judgment to be subordinated and fulfill the fiduciary obligations.

Shall not involve themselves in making any decision on a subject matter in which a conflict of interest arises or could arise, between the personal interest and the interest of the Company. In the event of apprehending of such conflict of interest, the relevant facts shall be disclosed in writing explaining the circumstances that create or could create the conflicts of interest to: (a) Board of Directors in case of Directors (whole-time & part-time) and (b) Chairman in case of Senior Management Personnel for further directions in the matter.

Shall avoid conducting business with a relative or with private Company in which the relative is a member or a public limited company in which a relative holds 2% or more shares or voting right or with a firm in which a relative is a partner.

Shall avoid having any personal and/or financial interest in works or contracts or any business dealing concerning the Company.

Shall avoid entering into a contract by the Company with self or relative for leasing of the property and then effecting renovation therein with the Company’s money.

Shall avoid any relationship with a contractor or supplier that could compromise the ability to transact business on a professional, impartial and competitive basis or influence decision to be made by the Company.

Shall not hold any positions or jobs or engage in outside businesses or other interests that adversely affect the performance of duties of the Company. Whole-time Directors and Senior Management Personnel are expected to devote their full attention to the business interest of the Company.

Shall not exploit for their own personal gain, opportunities that are discovered through company’s business, information or position, unless the opportunity is disclosed fully in writing to the Company’s Board of Directors and Chairman as the case may be.

Shall not seek or accept or offer directly or indirectly any gifts, donations, remuneration, hospitability, illegal payments, favour in whatsoever form howsoever described by the customers, vendors, consultants, etc., that is perceived as intended, directly or indirectly, to influence any business decision, any act or failure to act, any commitment of fraud, opportunity for committing any fraud.

Shall comply with all applicable laws, rules and regulations and any violation thereon may make them personally liable. Directors and Senior Management Personnel may be subjected to disciplinary action by the Company for violation of provisions of law.

Shall not serve as a Director of any other Company or as a partner of a firm that competes with the Company. Whole Time Directors and Senior Management Personnel shall obtain approval of the Chairman prior to accepting Directorship of any other Company or partnership of a firm.

Shall not derive benefit or assist others to derive benefit by giving investment advice from the access to and possession of information about the Company, not in public domain and therefore constitute insider information. The Board Members and Senior Management Personnel shall make timely disclosures of (i) trading in the shares of the Company, (ii) transactions having personal interest and (iii) related party transactions that are required to be made under laws, rules & regulations and Code for prevention of Insider Trading in the Securities of Steel Authority of India Limited.

Any information concerning the Company’s business, its customers, suppliers, etc, which is not in the public domain and to which the Board Members and Senior Management Personnel has access or possesses such information, must be considered confidential and held in confidence, unless authorized to do so and when disclosure is required as a matter of law. No Board Members and Senior Management Personnel shall provide any information either formally or informally, to the press or any other publicity media, unless specifically authorized.

Shall protect the Company’s assets, labour and information including intellectual assets and may not use these for personal use, unless authorized to do so.

Shall work unstintingly for eradication of corruption of all spheres of life, remain vigilant and work towards growth and reputation of the company, bring prior to the organization and provide value based services to company’s stake holders and do duty conspicuously and without fear or favour.

Shall strive to achieve highest quality, effectiveness and dignity in both processes and products of professional work and shall acquire and maintain professional competence continuously.

Shall always keep in mind that they are accountable to company’s stake holders viz. customers, vendors, shareholders, employees and the society at large to which the company is responsible for its actions.

Shall not make any statement which has the effect of adverse criticism of any policy or action of the Government or which is capable of embarrassing the relations between the company and the public including all the stake holders. Provided that nothing in this clause shall apply to any statement made or views expressed by a Board member which are purely factual in nature and are not considered as confidential in his official capacity or in due performance of the duties assigned to him.

The value of equality, tolerance, respect for others and the principles of equal justice govern this imperative. Discrimination, on the basis of race, sex, religion, age, disability, national origins or other such factors is an explicit violation of this code.

Public representation and confidentiality of information : Any information regarding the company’s business, its customers, suppliers etc. to which the officers have access or which is possessed by the officers, must be considered previlaged and confidential and should be held in confidence at all times and should not be disclosed to any person any person, unless (i) authorized by the board ; or (ii) the same is part of the public domain at the time of disclosure ; or (iii) is required to be disclosed in accordance with applicable laws.

5.0 Enforcement of Code of Conduct

i. Company Secretary shall be the Compliance Officer for the purpose of this code. Any member of Board or Senior Management Personnel requiring any clarification regarding the code of

conduct may contact the Compliance Officerii. Each Board Member and Senior Management Personnel shall be accountable for fully

complying with this code.iii. Compliance Officer shall report breach of this code, if any, which comes to his notice to the:

(a) Board in case of all Board members and (b) Chairman in case of Senior Management Personnel

iv. All Board Members and Senior Management Personnel shall be subject to any internal or external investigation of possible violations of this codeThe Company shall ensure confidentiality and protection to any person who has, in good faith, reported a violation or a suspected violation of law, of this code or other Company policies, or against any person who is assisting in any investigation or process with respect to such a violation.

v. Penalty for breach of this code by Senior Management Personnel shall be determined by the Chairman. In case of breach of this code by the Whole-time Directors and/or Part-time Directors, the same shall be examined by the Board

vi. Penalty may include serious disciplinary action, removal from office and dismissal as well as other remedies, including recommendations for any of the above penalty, to the extent permitted by law and as considered appropriate under the circumstances..

6.0 Waiver of the code

6.1 No waiver of any of the provisions of this code shall be valid unless, the Board of Directors of the Company approves such waiver in case of Board members and by Chairman in case of Senior Management Personnel.

6.2 The provisions of this code can be amended by the Board of Directors of the company from time to time.

7.0 Insertion of the code in website

As required by clause 49 of the listing agreement this code and any amendments thereto shall be posted on the website of the Company.

8.0 Affirmation of compliance of the code

 

It terms of clause 49 of the listing agreement all Board members and Senior Management Personnel shall within 30 days of close of every financial year affirm compliance with the Code. A proforma of Annual Compliance Report is annexed to this Code as Appendix-II.  The Annual Compliance Report shall be forwarded to the Compliance Officer of the Company.     

If any Director/Senior Management Personnel leaves the company any time during a financial year, he shall send a communication to the compliance officer affirming compliance of the code till the date of his association with the company.

9.0 Acknowledgement of receipt of the code

All Board Members and Senior Management Personnel shall acknowledge the receipt of this code in the acknowledgement form annexed to this Code (Appendix-III) indicating that they have received, read and understood, and agreed to comply with the code and send the same to the Compliance Officer.  Upon revision of this code, the Board Members and Senior Management Personnel shall acknowledge and execute an understanding of the Code (Appendix-III) and an agreement to comply. New Directors will sign such a deed (Appendix-III) at the time when their directorship begins.  

Extract of Section 6 of the Companies Act, 1956

Meaning of “relative”

6. A person shall be deemed to be a relative of another if, and only if,-

a. they are members of a Hindu undivided family; or b. they are husband and wife; or c. the one is related to the other in the manner indicated in Schedule IA.

 Schedule IA

List of Relative

1. Father 2. Mother (including step-mother) 3. Son (including step-son) 4. Son’s wife 5. Daughter (including step-daughter) 6. Father’s father 7. Father’s mother 8. Mother’s mother 9. Mother’s father 10. Son’s son 11. Son’s son’s wife 12. Son’s daughter 13. Son’s daughter’s husband 14. Daughter’s husband 15. Daughter’s son 16. Daughter’s son’s wife 17. Daughter’s daughter 18. Daughter’s daughter’s husband 19. Brother (including step-brother) 20. Brother’s wife 21. Sister (including step sister) 22. Sister’s husband

Bhilai Steel Plant

Nine - times winner of Prime Minister's Trophy for best Integrated Steel Plant in the country, Bhilai Steel Plant (BSP) is India's sole producer of rails and heavy steel plates and major producer of structural. The plant is the sole supplier of the country's longest rail tracks of 260 metres. With an annual production capacity of 3.153 MT of saleable steel, the plant also specializes in other products such as wire rods and merchant products. Since BSP is accredited with ISO 9001:2000 Quality Management System Standard, all saleable products of Bhilai Steel Plant come under the ISO umbrella.

At Bhilai IS0:14001 has been awarded for Environment Management System in the Plant, Township and Dalli Mines. It is the only steel plant to get certification in all these areas. The Plant is accredited with SA: 8000 certification for social accountability and the OHSAS-18001 certification for Occupational health and safety. These internationally recognised certifications add value to Bhilai's products and helps create a place among the best organisations in the steel industry. Among the long list of national awards it has won, Bhilai has bagged the CII-ITC Sustainability award for three consecutive years.

BOKARO STEEL PLANT - A PARTNER IN NATION BUILDING

History

Bokaro Steel Plant - the fourth integrated plant in the Public Sector - started taking shape in 1965 in collaboration with the Soviet Union. It was originally incorporated as a limited company on 29th January 1964, and was later merged with SAIL, first as a susidiary and then as a unit, through the Public Sector Iron & Steel Companies (Restructuring & Miscellaneous Provisions) Act 1978. The construction work started on 6th April 1968.

The Plant is hailed as the country’s first Swadeshi steel plant, built with maximum indigenous content in terms of equipment, material and know-how. Its first Blast Furnace started on 2nd October 1972 and the first phase of 1.7 MT ingot steel was completed on 26th February 1978 with the commissioning of the third Blast Furnace. All units of 4 MT stage have already been commissioned and the 90s' modernisation has further upgraded this to 4.5 MT of liquid steel.

The new features added in modernisation of SMS-II include two twin-strand slab casters along with a Steel Refining Unit. The Steel Refining Unit was inaugurated on 19th September, 1997 and the Continuous Casting Machine on 25th April, 1998. The modernisation of the Hot Strip Mill saw addition of new features like high pressure de-scalers, work roll bending, hydraulic automatic gauge control, quick work roll change, laminar cooling etc. New walking beam reheating furnaces are replacing the less efficient pusher type furnaces.

A new hydraulic coiler has been added and two of the existing ones revamped. With the completion of Hot Strip Mill modernisation, Bokaro is producing top quality hot rolled products that are well accepted in the global market.Bokaro is designed to produce flat products like Hot Rolled Coils, Hot Rolled Plates, Hot Rolled Sheets, Cold Rolled Coils, Cold Rolled Sheets, Tin Mill Black Plates (TMBP) and Galvanised Plain and Corrugated (GP/GC) Sheets. Bokaro has provided a strong raw material base for

a variety of modern engineering industries including automobile, pipe and tube, LPG cylinder, barrel and drum producing industries.

People - The moving force

Bokaro Steel values its people as the fulcrum of all organisational activities. The saga of Bokaro Steel is the story of Bokaroans erecting a gigantic plant in the wilderness of Chhotanagpur, reaching milestones one after another, staving off stiff challenges in the liberalised era, modernising its facilities and innovating their way to the top of the heap.

Directions

Bokaro Steel is working towards becoming a one-stop-shop for world-class flat steel in India. The modernisation plans are aimed at increasing the liquid steel production capacity, coupled with fresh rolling and coating facilities. The new facilities will be capable of producing the most premium grades required by the most discerning customer segments.

Brand Bokaro will signify assured quality and delivery, offering value for money to the customers.

:: DURGAPUR STEEL PLANT

Set up in the late 50's with an initial annual capacity of one million tonnes of crude steel per year, the capacity of Durgapur Steel Plant (DSP) was later expanded to 1.6 million tonnes in the 70's. A massive modernisation programme was undertaken in the plant in early 90's, which, while bringing numerous technological developments in the plant, enhanced the capacity of the plant to 2.088 million tonnes of hot metal,1.8 million tonnes crude steel and 1.586 million tonnes saleable steel. The entire plant is covered under ISO 9001: 2000 quality management system.

The modernized DSP now has state-of –the-art technology for quality steel making. The modernized units have brought about improved productivity, substantial improvement in energy conservation and better quality products. DSP’s Steel Making complex and the entire mills zone, comprising its Blooming & Billet Mill, Merchant Mill, Skelp Mill, Section Mill and Wheel & Axle Plant, are covered under ISO: 9002 quality assurance certification.

With the successful commissioning of the modernized units, DSP is all set to produce 2.088 million tones of hot metal, 1.8 million tones of crude steel and 1.586 million tones of saleable steel annually.

PRODUCT-MIX TONNES/ANNUM

Merchant Products 2,80,000

Structural 2,07,000

Skelp 1,80,000

Wheels & Axles 58,000

Semis 8,61,000

Total Saleable steel 15,86,000

LocationSituated at a distance of 158 km from Calcutta, its geographical location is defined as 230 27' North and 880 29' East. It is situated on the banks of the Damodar river. The Grand Trunk Road and the main Calcutta-Delhi railway line pass through Durgapur.

Environment controlDurgapur Steel Plant has always made relentless efforts to maintaining a healthy and clean environment. The units in DSP are provided with necessary pollution control facilities and the liquid effluents and chimney emissions from the plant are well within norms.

DSP has undertaken massive afforestation to maintain clean environment. Some 3,266 acres of land have been covered with 14 lakh plantations. In order to develop healthy awareness about the

environment amongst the younger generation, eco-clubs have been formed in DSP schools.

Centre for Human Resource DevelopmentDSP has always attached maximum importance on proper training and development of its employees. Its Centre for Human Resource Development has all modern facilities including the state-of-the-art Electrical and Electronics laboratory, Hydraulics and Pneumatics laboratory and workshop for effective training and development of its employees.

CommunicationThe Public Relations Department publishes monthly house journals in English, Bengali and Hindi for extensive information of company affairs to the employees. DSP also has an in-house TV studio (DSTV) along with all modern facilities, which telecast news and a gamut of other programs covering various aspects of plant and township activities.

Durgapur – The Happening CityDurgapur, which is on the main Kolkata – New Delhi line, is fast turning into the most happening city in the region. From a sleepy settlement, the town today boasts of a variety of educational institutions, posh shopping malls, complexes with eateries and a multiplex, etc. With the change in the mindset of the people has come a change in the lifestyle also. Quality consciousness has steeped in, accompanied with quality brands making their presence felt in the market. Durgapur is fast turning into the central location for the entire region – with the entry of big business houses and entrepreneurs, the city is all set to undergo a change in its own lifestyle and in the outlook of its residents.

Rourkela Steel Plant

Rourkela Steel Plant (RSP), the first integrated steel plant in the public sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. Subsequently, its capacity was enhanced to 1.9 million tonnes.

The plant was modernised in the mid-1990s with a number of new units having state-of-the-art facilities. Most of the old units were also revamped for effecting substantial improvement in the quality of products, reducing cost and ensuring cleaner environment.

RSP was the first plant in India to incorporate LD technology of steel making. It is also the first steel plant in SAIL and the only one presently where 100% of slabs are produced through the cost-effective and quality-centeric continuous casting route.

RSP presently has the capacity to produce 2 million tonnes of hot metal, 1.9 million tonnes of

crude steel and 1.67 million tonnes of saleable steel. It is SAIL’s only plant that produce silicon steels for the power sector, high quality pipes for the oil & gas sector and tin plates for the packaging industry. Its wide and sophisticated product range includes various flat, tubular and coated products.

Almost all major units of the plant, including its Personnel Department and Steel Township, are certified to ISO:9001 standards. RSP’s Silicon Steel Mill, Sintering Plant II, Environment Engineering Department, Plate Mill, Hot Strip Mill, ERW and SW Pipe Plants, Special Plate Plant as well as Steel Township have been awarded ISO:14001 certification for Environment Management.

PRODUCT-MIX TONNES/ANNUM

Plate Mill Plates 2,99,000

HR Plates 92,500

HR Coils 3,98,000

ERW Pipes 75,000

SW Pipes 55,000

CR Sheets & Coils 4,33,000

Galvanized Sheets (GP& GC) 1,60,000

Electrolytic Tin-Plates 85,000

Silicon Steel Sheets 73,500

Total Saleable Steel 16,71,000

LocationRourkela Steel Plant is located in the north-western tip of Orissa and at the heart of a rich mineral belt. Being situated on the Howrah-Mumbai rail mainline, Rourkela is very well connected with most of the important cities of India. The nearby airports are Ranchi (173 km), Bhubaneswar (378 km) and Kolkata (413 km). Rourkela also has an airstrip maintained by RSP.

:: IISCO STEEL PLANT (ISP) IISCO Steel Plant (ISP), an integrated steel plant in Burnpur, has the capacity to produce 4.26 lakh tonnes of saleable steel and 2.54 lakh tonnes of pig iron annually. ISP, the erstwhile Indian Iron & Steel Company (IISCO), which was a 100% subsidiary of Steel Authority of India Limited (SAIL) has been amalgamated with the parent company with effect from 16 February 2006.

ISP produces a large number of steel structurals and special sections as well as pig iron. the plant pioneered the production of centre –sill Z-section used in the fabrication of wagon and Z-type

sheet piling section used in construction of barrages, bridge foundations and other projects and colliery arch section used for roof support in collieries. The plant has also developed ‘slit rolling’ for small diameter rounds (10 mm and 12 TMT), which are in high demand in the domestic market.

The plant is set to undego modernisation-cum-capacity expansion though which its hot metal production capacity will be raised to 2.5 MT by 2011-12.

ISP is accredited with ISO 9001:2000 QMS for its Heavy Structural Mill and Merchant & Rod Mill. It has also been awarded ISO 14001:2004 EMS for its entire Rolling Mill Complex.

Location ISP is situated at Burnpur near Asansol in the Burdwan district of West Bengal.

HistoryThe origin of ISP can be traced to 1874 when James Erskine founded the Bengal Iron Works and set up a plant at Kulti (in West Bengal) to produce pig iron. In 1918, the erstwhile IISCO, promoted by Burn and Company, came into being after changing hands several times. The manufacture of steel at Burnpur started in 1939. By the middle of the 1960s, the plant, under the chairmanship of industrialist Sir Biren Mookerjee, was producing one million tonne a year. On July 4, 1972, the company was taken over by the Government of India. In March 1979, it was made a wholly-owned subsidiary of SAIL.

The erstwhile IISCO was once quoted on the London Stock Exchange, and had the pride of place on the Calcutta Stock Exchange in the early 1960s.

Facilities at Burnpur

Coke OvenTwo coke oven batteries each of height 4.5 m and capacity 18.6 t of dry coal

Blast FurnaceTwo blast furnaces each of useful volume 1170 cu m

Steel Melting Shop1 Twin Hearth Furnace of 2×110 t capacity

Rolling Mills32 Soaking Pits; Blooming Mill capacity 0.9 Mtpa Billet Mill capacity 0.8 Mtpa Heavy Structural Mill capacity 0.25 Mtpa Light Structural Mill capacity 0.12 Mtpa Merchant & Rod Mill capacity 0.15 Mtpa

Facilities

Pollution ControlAll environmental parameters like SPM, SOX, NOX, water testing are regularly undertaken to meet the Pollution Control Board norms. The department is equipped with latest testing facilities.

Computer ServicesComputerized Integrated Maintenance and Materials Management System (IMMMS) based on CA-OpenIngres RDBMS under HP-UX.A Sun Solaris network running Oracle RDBMS in Finance department.Email and internet facilities.

EducationISP runs 3 Higher Secondary, 1 Secondary and 4 Primary schools providing subsidised education to more than 7000 students. Besides, 1 co-educational English medium CBSE school with 2000+ students is supported by the company.

Health CareA 500-bedded Central Hospital with facilities like modern OT, ICU, ICCU, Dialysis unit, Dental, isolation ward, blood bank, physiotherapy. Besides, there are Clinics in all townships and Occupational Health Centre in the plants.

The pioneer in the production of alloy and special steels. Alloy Steels Plant (ASP), Durgapur was commissioned with an initial capacity of 1,00,000 tonnes of ingot steel and 60,000 tonnes of saleable steel. Through two phases of expansion and modernization, the capacity has been revised to 2.46 lakh tonnes of liquid steel and 1.78 lakh tonnes of saleable steel.

Recipient of ISO-9001 (2000) certification for the entire plant, ASP is equipped with state-of-the-art technology for producing world-class quality alloy and special steels. The plant has one slab-cum-twin bloom continuous casting machine, the only one of its kind in India. It is specially designed for casting special steels like Austenitic and Ferritic stainless steel and a variety of non-stainless steels including bulletproof steel. The continuous casting machine is equipped with a state-of-art Electro-Magnetic Stirrer in its mould for casting Blooms.

ASP has the capacity to produce Slabs, Blooms, Bars, Plates and Forged items of over 400 grades in a wide range of sizes. It also produces value added items like Cold Rolling Mill rolls, Concast rollers, crane wheels, springs, hammers, grate bars, hot saw blade, shear blade, bright bar, stainless steel liner plate,

etc. ASP is also supplying import substitution item components to many customers through established conversion agents.

LocationAlloy Steels Plant has a unit-based marketing set-up with Head Quarters at Durgapur and regional offices at Kolkata, Murnbai, New Delhi and Chennai. It also has field offices in different places throughout the country, exclusively marketing the products of ASP. The Field Executives work in all the important centres in the country to ensure prompt and effective customer service and speedy redressal of complaints, if any.

Salem Steel Plant

Salem Steel Plant, a special steels unit of Steel Authority of India Ltd., pioneered the supply of wider width stainless steel sheets / coils in India. The plant can produce austenitic, ferritic, martensitic and low-nickel stainless steel in the form of coils and sheets with an installed capacity of 70,000 tonnes / year in Cold Rolling Mill and 1,86,000 tonnes / year in  Hot Rolling Mill.   In addition, the plant has country's first top-of-the-line stainless steel blanking facility with a capacity of 3,600 tonnes / year of coin blanks and utility blanks / circles.

Product Mix

PRODUCT-MIX items TONNES/ANNUMCold rolled stainless steel flat product (Coils/Sheets/Blanks) 65000Hot rolled stainless steel/carbon steel flat product (Coils/Sheets) 110000Total Saleable Steel 175000

Facilities & Capacity

Area Major Facilities ProductsCapacity/Annum

(in Tonnes)

Hot Rolling Mill

Walking Beam Re-heating Furance

Roughing Mill Steckel Mill Down Coiler Roll Shop

Hot rolled Stainless Steel/ Carbon Steel Coils

186000

Cold Rolling Mill

Coil Build up Line Bell Annealing Furnaces –

Cold Rolled Stainless Steel Coils / Sheets

65000

3 no.(with 8 bases) Annealing & Pickling

Lines – 2 no. 20-High Sendzimir Cold

Rolling Mills – 2 no. Roll Shop Strip Grinding Line Skin Pass Mill Shearing Line Slitting Line

Hot Rolled Annealed and Pickled Stainless Steel Coils / Sheets

5000

Blanking Line

Blanking Press Rimming Machine Annealing Furnace Pickling and Polishing

Machines Counting Machines

Cold Rolled Stainless Steel Coin Blanks /Utility blanks

3600

The plant is facilitated with Hot Rolling Mill which can roll both stainless and carbon steels and the mill caters mainly to the input needs of stainless steel coils for the cold rolling mills. Special grades of carbon steels other than structural steels are also rolled from the facility includes weathering steels, high strength low alloy steels, etc., which are extensively used in industrial sectors.

Hot Rolling Mill complex is equipped with walking beam reheating furnace, primary descaler, 4-hi reversing roughing mill, 4-high reversing Steckel Mill, down coiler, laminar cooling and roll grinding machines, procured from world renowned suppliers. The Steckel Mill, the mother unit of hot rolling with level-2 automation is provided with hydraulic gauge setting and automatic gauge control. The continuously variable crown (CVC) controls the profile and flatness by roll shifting and work roll bending system provide additional fine control of flatness of the strip.

Cold Rolling Mill complex is equipped with the most modern stainless steel production lines, sourced from leading manufacturers of the world. Coil build up line, bell anneal furnaces continuous annealing and pickling lines, Sendzimer mills, skinpass mill, strip grinding line, slitting and shearing lines to produce coils /sheets with precise dimensional tolerance and flatness with superior metallurgical characteristics.

Ferritic and martensitic stainless steel are annealed/softened at bell annealing furnaces and austenitic stainless steel is annealed/softened and descaled in continuous annealing and pickling lines using Ruthner neutral electrolytic pickling process and mixed acid pickling for superior surface finish. The coils are rolled in 20-high computerized Sendzimer mills to required dimensional tolerances.  A 2-high skin pass mill with elongation control and constant hydraulic roll force system ensures a product of bright finish and high flatness.  A shearing line with precision roller levelers, electronic flying shear and vacuum piler facilitates defect-free piling of the leveled cut sheets.  Coils of narrow width and smaller weight are produced by a precision

slitting line equipped with latest features like in feed car, grip feed device, tension pad and interchangeable slitters.

The shearing and slitting lines have online continuous marking system to make the products customer-friendly.  Salem Steel Plant's cold rolling mill complex also includes a resquaring shear, a recoiling line, a packing line for slit products and wider coils.

In addition to the common No1, 2D and 2B finishes, a wide range of finishes including No.3, No.4, No.8 (mirror) and special finishes like Moon Rock, Chequered, Honeykom, Macromatt, Aqualine, Frondz, Mystique, Linen, Fabrique finishes are also produced as per requirement.

Expansion Plan

Expansion and modernisation of Salem Steel Plant is presently on. The plan envisages installation of Steel Melting and Continuous Casting facilities to produce 1,80,000 tonnes of slabs along with, expansion of Cold Rolling Mill complex, enhancing the capacity of Cold Rolled Stainless Steel Products from 65,000 TPA to 1,46,000 TPA and an additional Roll Grinding Machine for Hot Rolling Mill for increasing production to 3,64,000 TPA.

Visvesvaraya Iron and Steel PlantVisvesvaraya Iron and Steel Plant (VISL) is a pioneer in production of high quality alloy and special steels and pig iron. Steel is produced through BF-BOF-LRF-VD route. The facilities include vacuum degassing, vacuum oxygen decarburisation, ladle refining furnaces, continuous casting machines, 1600 Tonnes-hydraulic-high-speed forging press, a fully automatic horizontal long forging machine with high programmable Logic Controller (PLC) system for a semi-automatic and automatic mode of operation. VISL has an installed capacity of 77,000 tonnes of alloy and special steels and 205,000 tonnes of hot metal.

VISL has received the ISO / TS 16949 : 2009 certificate for steel production through rolled and forged routes and pig iron production.

Facilities QTY Capacities

Blast Furnaces 1 No. 530 Cu.M. -2,05,000T Hot Metal/Annum

BOF 2 Nos. 17-25 T Per Heat

LRF 4 Nos. 25 T

VD/VOD 1 No. 25 T

Facilities QTY Capacities

CCM 1 No. 80,000 T

Bloom Caster 1 No. 1,25,000 T

Ingots   1.2T  to 13.0T

Primary Mill 1 No. 78,000 T

Bar Mill 1 No. 36,000 T

Press 1 No. 6,000 T

LFM 1 No. 1500 T

I. Rolled Products       A. Primary Mill                                                               B. Bar Mill 

1 Rounds 60 to 140 mm   1 Rounds 20 to 58 mm

2 Billets 60 to 140 mm   2 Billets 40 to  56 mm

3 Flats 126 to 240 mm W  X 20 to 50 mm T (LC steels)

  3 Flats 70 to 120 mm W  X 10 to 20 mm T

155 to 300 mm W  X 50 to 100 mm T (C steels)

       

4 Blooms 150 to 250 mm        

II. Continuous Cast products

Blooms 130, 180, 200, 300 & 350 mm

III. Forge ProductsA. Press

1 Tool Steels 200 to 600 mm Rounds

2 Die steels 200 mm and above square and rectangular sizes up to 2,50,000 sq. mm cross section area, one of the sides limited to 600 mm Max. Maximum weight per piece: 2.50 Tns.

3 Carb. & Alloy constn steels

200 to 660 mm Rounds200 to 500 mm Squares

4 Flats Width – 200 to 500 mm Carb. & Alloy constn steels              200 to 400 mm Tool SteelWidth to Thickness  ratio – 3:1 Max.

Minimum Thickness - 150 mm

 

B. Long Forging Machine

1 70 to 199 mm Rounds  

Maximum weight per piece: 1.00 Tns.

2 100 to 150 mm Squares

2 B.G. Coaching Axle