To,

New Delhi

The Board of Directors has the pleasure of presenting the 53rd Annual Report of Steel Authority of India Limited (SAIL, the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2025.

(Rs. crore)

Your Company achieved the Sales Turnover of Rs.1,01,716 crore during the Financial Year (FY) 2024-25, which is lower by 2.7% as compared to corresponding period of last year (CPLY) mainly due to lower NSR of 7%, partial o_set by higher Sales Volume of 3%, revision of provisional Rail price for FY 2023-24 and 2024-25. During the FY 2024-25, the lower pro_tability as compared to CPLY is mainly on account of lower Net Sales Realisation of Saleable Steel; lower sale of coal chemical & by-products; lower Rail price revision impact; higher usage of Power, indigenous coal, increase in burden, etc.; lower stock valuation rate; higher expenditure on Repair

& Maintenance, water charges & cess on water pollution, Insurance, security expenses; loss on foreign exchange _uctuation; higher interest charges & depreciation; etc. The lower pro_tability was partially o_set by lower imported coal prices; better techno-economic parameters viz. improvement in BF productivity, Coke rate, Speci_c Energy consumption; lower usage of imported coal, limestone, etc.; lower expenditure on stores & spares, salary & wages, royalty rates; income from trading activities; higher dividend income; etc.

Your Company continued its thrust on judicious fund management with timely repayment of loans including interest as well as advance planning and timely action for future fund raising, etc. to meet its operational and strategic growth objectives. The Company had borrowings of Rs. 36,934 crore as on 31st March, 2025 vis-a-vis Rs.36,315 crore as on 31st March, 2024 (INDAS). The debt equity ratio of the Company as on 31st March, 2025 at 0.66:1 was almost at the same level of 0.67:1 as on 31st March, 2024. The net worth of the Company increased to Rs.55,656 crore as on 31st March, 2025 from Rs.54,131 crore as on 31st March, 2024.

The Board of Directors of your Company has recommended a Final Dividend of Rs. 1.60 per equity share, subject to approval of Members in the ensuing Annual General Meeting 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 risk 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. 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 incidents/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 mitigation measures through technical interventions. 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 are held yearly in di_erent Plants with new themes. In this regard, ‘Safety Quest', a new initiative has been introduced with a view to learn the good safety systems & practices from safety experts from di_erent spectrums of the industry. Safety circle, an innovative scheme for developing safety culture across the Organization by involving front line employees through hazard identi_cation, risk assessment & control, as a bottom up approach, has also been introduced.

Bene_ts of technology are being 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 in the Safety Culture. 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 2024-25, the Indian Steel Sector witnessed signi_cant momentum, characterized by strong domestic demand, substantial capacity expansions and pressures arising from a surge in imports. Inspite of facing formidable challenges, including environmental concerns, intense competition and infrastructure bottlenecks (particularly in logistics and transportation), your Company created new benchmarks, achieved signi_cant milestones, displayed remarkable resilience, adaptability throughout the year. SAIL's strategy is focused on advancing technology, enhancing operational e_ciency, reducing costs and expanding capacity. In addition, the Company is making signi_cant strides in areas such as digitalization, sustainability and human resources initiatives.

During FY 2024-25, your Company achieved several milestones in productivity, techno-economics, value added products and new product development. These accomplishments were made possible by commitment to operational excellence and a strategic focus on enhancing the quality of input raw materials.

SAIL improved its production volumes with lesser assets through improved techno-economic e_ciencies by driving enablers at Blast Furnaces such as improving health of furnace stoves, commissioning of new stoves, enhancing oxygen enrichment, increased pulverised coal injection, improvement in Fe content in burden by usage of Pellets in burden and better quality ore _nes. During FY 2024-25, SAIL achieved Hot Metal, Crude Steel and Saleable Steel production of 20.31 MT, 19.17 MT and 17.94 MT respectively. In addition to this, your Company also achieved, its best annual performance in respect of Techno-economic parameters like Coke Rate at 421 kg/thm, CDI Rate at113 kg/ thm, BF Productivity at 2.02 t/m3/day and Speci_c Energy Consumption at 6.26 G.cal./tcs owing to focus on enhanced capacity utilisation of bigger Blast Furnaces (BF) and optimisation of BF operations.

The Research and Development Centre for Iron & Steel (RDCIS) of the Company provided innovative technological inputs to di_erent Plants of SAIL, with special emphasis on process and quality improvement, product development and commercialization. The continuous activities in respect of product development have led to development of 23 new Steel Products during FY 2024-25.

At Bhilai Steel Plant (BSP), Hot Metal, Crude Steel and Saleable Steel achieved production of 5.880 MT, 5.658 MT and 5.180 MT respectively. BSP recorded its highest-ever annual production across several units, including Finished Steel of 4.707 MT, 2.81 MT of Hot Metal at Blast Furnace-8, 3.575 MT of Crude Steel at Steel Melting Shop-3, and 1.009 MT at Bar & Rod Mill (BRM). The contribution to Indian Railways is highlighted by the fact that record dispatches of Long Rails (260m panels) of 1132 Rakes was achieved during the FY 2024-25. Further, out of 1132, 1077 Rakes were dispatched from BSP and the balance 55, from the Flash-Butt Welding Plant (FBWP) at Sabarmati, Ahmedabad. On techno-economic front, BSP achieved the highest ever CDI Rate at 134 kg/thm and lowest ever Speci_c Energy Consumption at 6.30 G.cal./tcs & Coke Rate at 430 kg/thm during the FY 2024-25. Durgapur Steel Plant (DSP) recorded the production of Hot Metal at 2.50 MT, Crude Steel at 2.26 MT and Saleable Steel 2.15 MT. The Plant recorded highest ever production from its Bloom cum Round Caster BRC of 6.26 lakh tonne, 5.57 lakh tonne from Medium Structural Mill (MSM), 4.28 lakh tonne from Merchant Mill (MM) and of 1.126 MT of Finished Steel. Rourkela Steel Plant (RSP) registered production of Hot Metal at 4.34 MT, Crude Steel production at 4.04 MT and Saleable Steel production at 4.08 MT in the FY 2024-25. In addition to this, BF-1 & 5 achieved highest ever production of 1.005 MT and 3.13 MT respectively. Similarly, New Plate Mill (NPM) at 9.32 lakh tonne, Hot Strip Mill-2 (HSM-2) at 2.557 MT and Steel Melting Shop-2 Caster-3 at 1.634 MT also registered highest ever annual production. With regard to techno-economic parameters, RSP achieved the lowest ever Speci_c Energy Consumption @5.92 G.cal./tcs. and Coke Rate at 391 kg/thm and highest Blast Furnace Productivity @2.31 t/m3/ day during the FY 2024-25.

Bokaro Steel Plant (BSL) registered the highest ever production of Hot Metal at 4.960 MT and Crude Steel at 4.512 MT, surpassing the previous best of 4.726 MT and 4.309

MT respectively, achieved in the FY 2023-24. Saleable Steel production for the year stood at 3.860 MT. New SMS (with Concast Route) at 1.03 MT, Cold Rolling Mill-III at 7.35 lakh tonne and total Cold Rolled Saleable production at 1.18 MT also recorded highest ever production in FY 2024-25. The techno-economic parameters like CDI Rate @85 kg/thm, BF Productivity @ 1.91 t/m3/day, Coke Rate @445 kg/thm and Speci_c Energy Consumption @6.52 G.cal./tcs. were best ever in the FY 2024-25.

At IISCO Steel Plant (ISP), the production of Hot Metal, Crude Steel and Saleable Steel was at 2.623 MT, 2.437 MT and 2.330 MT respectively in the FY 2024-25. In addition to this, Universal Section Mill at 0.498 MT also achieved the best ever production during the FY 2024-25. On techno-economic front, ISP achieved the best ever Coke Rate @372 kg/thm, CDI Rate @134 kg/thm, BF Productivity @ 2.27 t/m3/day and Speci_c Energy Consumption @6.16 G.cal./tcs. for the year. During FY 2024-25, Alloy Steels Plant enhanced Crude Steel production through process modi_cations and logistical improvements. Salem Steel Plant developed new Grades and Finishes to meet customer requirements. Meanwhile, at Visvesvaraya Iron and Steel Plant, e_orts are underway to identify e_ective measures to restore the Plant's pro_tability. In FY 2024–25, a strong emphasis on maximizing productivity through the optimal utilization of e_cient assets, the phased elimination of outdated and ine_cient ones, and the implementation of strategic process improvements has established a robust foundation for achieving sustained success in the years to come.

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 2024-25, about 67.53% of the total requirement of 1412.71 MW was met from the Captive Power Plants, as against 65.25% 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 255.44 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 54.80 MUs of bagasse-based power from Rajshree Sugar Mills, Coimbatore, through Power Exchange for Salem Steel Plant during the sugarcane crushing season. 88.39 MUs were procured from the Power Exchange and 100.21 MUs were wheeled from PP-3, Bhilai to SSP. RSP procured 8.15 MUs Conventional Power and 12 Mus Green Power from the Exchange. Your company was able to save about Rs.44.43 crore in the FY 2024-25 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, both the 20 MW Units of Power Plant-III at Durgapur Steel Plant (DSP) of NTPC-SAIL Power Company Ltd. (NSPCL), a Joint Venture Company of SAIL & NTPC Ltd., were stabilized. 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 8.64% 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 (a JV of SAIL and NTPC) and Bokaro Power Supply Co. Ltd. (BPSCL) (a JV of SAIL and Damodar Valley Corporation (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. Modi_cation is proposed in the boilers of Power Plant-II, BSP so that coal usage shall be further reduced by utilizing BF gas in the boilers, thus improving carbon footprint.

An important component of Grid Power in DSP and IISCO Steel Plant (ISP) is Green Power, introduced by the utility DVC. Since 1st September, 2024, both the Plants have been procuring 50% of their Grid Drawl as Green Power from DVC. A total of 373.79 MUs was procured by ISP (246.68 MUs) and DSP (127.11 MUs) during FY 2024-25, which shall help reduce emissions in the steel-making process.

CO2

Your Company has always 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 2024-25, Rs.80.37 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 8.44 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 commissioned in January, 2024, produced 5.51 MUs of green power during FY 2024-25. In addition to this, a 15 MW capacity Floating Solar Power Plant over Cooling Pond in BSP through NSPCL is under installation. A capacity of 196.75 MW of ground-mounted/_oating/rooftop solar plants at various Plants/ Units of the Company across the Country has been identi_ed for installation. Solar projects with potential of 339 MW are being examined for techno-commercial feasibility. Besides this, about 7 MW renewable bagasse-based power being procured for Salem Steel Plant and the under construction 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 2024-25, total requirement of iron ore was met from the captive sources. Your Company's captive mines produced about 33.785 million tonnes (MT) of iron ore. However, in case of clean coking coal, out of total consumption of 18.74 MT, about 2.415 MT was met from indigenous sources (Coal India Limited & captive sources) and for the balance requirement of coking coal (16.32 MT), the Company had to depend on imports due to constraint in availability of required quality, within the Country.

In the FY 2024-25, production from the captive collieries of the Company, including middling & jhama, was about 0.686 MT, out of which 0.588 MT was raw coking coal and balance 0.098 MT was non-coking coal. In case of _uxes, around 1.311 MT of limestone and 0.404 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 of non-coking coal including middling of 0.80 MT produced from the captive mines.

Selling of Iron Ore from Captive Mines in Open Market

About 0.754 MT of iron ore was made available in the open market from the Mines in the State 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) y Tasra Coking Coal Washery Plant: Tasra Coking Coal Washery Plant with 3.5 Million Tonne Per Annum (MTPA) capacity of 21 Ha area, located in Sindri, District Dhanbad, Jharkhand was granted EC vide letter dated 14th November, 2024. y Jhillingburu-I Lease of Gua Ores Mines: EC for reopening the Mine with enhancement of production capacity of manganese ore from 42,000 TPA to 61,362 TPA has been granted on 23rd March, 2025. y Pandridalli & Rajhara Pahar Iron Ore Lease of BSP:

State Environment Impact Assessment Authority (SEIAA), on 30th September, 2024 granted EC for Iron Ore Production Capacity 3.50 MTPA ROM, Waste 9.1 MTPA and Total Excavation of 12.60 MTPA.

Grant of Forest Clearance (FC)

Government of Chhattisgarh vide letter dated 28th November, 2024 has extended the validity of FC for the diversion of 100.76 hectares of forest land under the Rajhara Hill Lease and 283.60 hectares of forest land under the Pandridalli &

Rajhara Pahar Lease of Bhilai Steel Plant until 27th April, 2043 and 31st May, 2043 respectively.

Extension of Lease Period/Reservation Noti_cation Period

Extension for Lease Period of Pandridalli & Rajhara Pahar Lease (220.42 Ha) upto 27th April, 2043 was granted on 10th July, 2023 and the Lease Deed was executed on 4th December, 2024.

Appointment of MDO for Development of 7 MTPA Iron Ore Mine at Taldih, Odisha

Mine Developer cum Operator (MDO) was appointed for development of 7 MTPA Iron Ore Mine at Taldih and Coal Mining Service Agreement (CMSA) was signed on 27th November, 2024. MDO shall install a new plant and supporting infrastructure, likely to _nish within two years, with mining operations starting in the third year. The production capacity will increase from 2 MTPA to 7 MTPA.

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

Nominated Authority under the Ministry of Coal on 16th May, 2025 issued a provisional compensation order of Rs.105.35 crore for the de-allocated Parbatpur Coal Mines. This amount is lower than the Rs.140.25 crore, originally claimed by SAIL, the prior allottee. SAIL is currently engaging with the Nominated Authority to seek a revision of the compensation amount stated in the provisional order.

Jharkhand High Court Judgement in Common Cause Matter

Jharkhand High Court vide order dated 4th March, 2025 set aside Rs.1,750 crore penalty notices issued post the Common Cause judgment dated 2nd August, 2017 and ordered a refund with interest. SAIL had deposited Rs.200 crore in December, 2017.

Capacity Expansion of Gua Ore Mines

SAIL plans to expand the capacity of the Gua Mine from 4 MTPA to 10 MTPA, along with setting up Bene_ciation and Pelletization Plants and Railway Sidings through EPC, BOO, and MDO models. A consultant is currently preparing the Tender Speci_cations, and Notice Inviting Tender (NIT) for MDO has been issued on 22nd July, 2025.

Development of Tasra Coal Mine

Tasra Coal Project, being developed as a 4 MTPA opencast mine, has progressed signi_cantly following the appointment of the Mine Developer cum Operator (MDO) on 8th September, 2023. MDO is responsible for undertaking all pre-development activities, securing statutory approvals, assisting in land acquisition and R&R, constructing a Coal Washery within three years, and ramping up mining operations to 4 MTPA from _fth year onwards. Signi_cant progress has been made by March, 2025, including the grant of Environmental Clearance (EC) and Consent to Establish (CTE) for a 3.5 MTPA Coal Washery, approval of the Site-Speci_c Wildlife Conservation Plan, and substantial advancement in land acquisition for the Mine area, R&R colony and washery. Land parcels include Private land, BCCL land, and FCIL land, for which lease agreements, transfer proposals, and eviction proceedings are underway. The project is strategically advancing through coordination with multiple Government departments to ensure timely implementation of key components of mine development.

Sales & Marketing

During the Financial Year (FY) 2024-25, your Company achieved Saleable Steel sales volume of around 18 million tonnes (MT), registering a growth of about 4% over previous year. With Home Sales of 17.8 MT for Mild Steel, there has been a growth of about 5.8% over FY 2023-24. While the overall exports declined over FY 2023-24, the Company succeeded in making inroads for exports of Cold Rolled products and new age structural from the new state-of-art Universal Section Mill to Nepal, amidst various challenges in the international market. The muted demand in Europe and economic slowdown in China dampened the international steel market sentiments. SAIL consciously aligned towards enhancing Home Sales, where realizations were better. During FY 2024-25, Global steel price trends remained mixed due to a combination of local and global issues. Going forward, the movement of global steel prices will be contingent upon how the following issues pan out: (i) Global economic growth; (ii) China's property slump; (iii)Stagnation in euro zone; (iii) Trade _ows/tari_s & barriers, etc.; and (iv) Prices of raw materials. In Calendar Year 2024, World Crude Steel Production was 1,882.6 MT, which is drop of 0.8% over 2023 production of 1,897.9 MT as per World Steel Association. China, the biggest producer, saw its output drop 1.7 per cent from 1,022.5 MT in 2023 to 1,005.1 MT in 2024. India's production increased 6.3 per cent from 140.8 MT in 2023 to 149.6 MT in 2024. Indian steel prices witnessed a late uptick in FY 2024-25, resulting from the recommendation of Safeguard Duty on imports of _at steel by GoI.

Consumption of Finished Steel in India in FY 2024-25 was about 152 MT, a growth of 11.5% over previous year, while Finished Steel production was 146.56 MT, which is a growth of 5.3% over FY 2023-24. The Building, Construction and Infrastructure continued to be focus of growth in steel sector with substantial Capex spending on infrastructure by the Government of India. A total budgetary provision of Rs.10.18 lakh crore had been made for Govt. Capex in the Union Budget 2024-25, to boost growth of Infra and Construction segment.

Your Company has been ful_lling the entire demand of steel tracks from Indian Railways for decades. A total of 11.55 lakh tonnes of Rails were supplied to Indian Railways in FY 2024-25, the 260m long-rail welded-panel component in the total Rail supply being about 86%. It may be mentioned that 100% of the 60 kg Rail supplied to Railways during FY 2024-25 comprised the newly developed R-260 grade in 60E-1 pro_le. In addition to this, 8000 tonnes of Long Rail Panels in R350 HT Grade was supplied in FY 2024-25 as per Railway's requirement for Higher Axles Load (25T) routes. Various technological developments have been carried out to improve the supply component of Long Rail panels, as per demand from Indian Railways. Further, about 51,000 tonnes of Long Rail Panels were supplied from the Flash Butt Welding Plant (FBWP), Sabarmati, as per MoU with Indian Railways.

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, 45,656 numbers of WTA (Wheel, Tyre, Axle) items were supplied to Indian Railways in FY 2024-25, including few pro_les which are import substitution items.

Your Company's presence has continued to be signi_cant for certain critical areas of defence. As a result, DMR249A Certi_ed Grade Plates were supplied from Bhilai Steel Plant and Rourkela Steel Plant, and Billets from Alloy Steels Plant at Durgapur. These e_orts are part of an ongoing journey contributing to Aatmanirbhar Bharat.

Continuing the journey for increasing sales of value added and special quality products to the consumers, SAIL's basket in FY 2024-25, inter-alia, including HSFQ 550 (High Strength Formable Steel) for automotive components, HT (High Tensile) LPG grade IS 15914 HS 345 2.2mm x1160mm for LPG cylinders, API PSL2 X46-X60 for Oil & Gas Pipeline, ASTM A572 Gr 65 with Si 0.06% for monopole, Wider (1600 mm & above) IS 11587 WR-Fe490H for Wagons, High Tensile HRC in E350BR in 2/2.2x1200 mm for Solar Industry; 28MnB5 and similar grades for Agriculture implements; High Strength CR in 440/470/ 550 / 600 LA; IS 18316 CR for stamping industry; LRPC (Low Relaxation Pre-Stressed Concrete Strands) grade in 11mm/12mm used in pre-stressed concrete girders for Roads, Bridges & Flyovers, Metros, etc. 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 12.85 lakh tonnes during FY 2024-25, compared to 8.47 lakh tonnes in the previous year, thereby registering a growth of 51%. 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. 8 more distributors were added in 1-Tier during the FY 2024-25, reaching a total of 64 as on 31st March, 2025, and thereby, achieving sales of 15.54 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 59 distributors and 4768 dealers as on 31st March, 2025. Further, the Company has achieved retail sales of 13.27 lakh tonnes of TMT during FY 2024-25, with a growth of 40% 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 2024-25, more than a lakh tonne of various steel products have been sold to these MSMEs.

During the FY 2024-25, your Company has supplied 2.4 lakh tonnes steel to NSIC/SSIC, with growth of 9% 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 2024-25 across India for increasing steel usage. In addition to this, some promotional activities were undertaken and the signi_cant ones include: SAIL SeQR promotion during Mahakumbh 2025 at Prayagraj through high sky balloons, electric poles and gantry gates; Water Metro Branding in Kochi; Advertisements at Airports, Trains & Buses; Hoardings & Wall Paintings; Road Barricade Branding in collaboration with Bangalore Tra_c Police; Post O_ce Campaign Run in Kerala in association with India Post; Brand Promotion through participation & advertising in Krishi Darshan Expo, Hissar; Brand Promotion in Healthon Half Marathon at Patna; Sponsorship as "Co-Title Sponsor for E-Summit' 25" at MANIT, Bhopal; Participation in Steel Construction Expo in Mumbai; Partnered in Annual Business Festival of IIT Mumbai (AVENUES); Branding in train from Vishakapatnam to Kirandul via Araku; Re_ective Sticker Branding of SAIL-SeQR TMT in sides and back of trailers at warehouses in NR; SAIL SeQR RUN organised in Chennai with about 2700 participants; Sponsorship in Karnataka Premier League; Hoarding Campaign of SeQR Brand of SAIL TMT in Howrah and Hooghly districts.

The Warehousing Group of Marketing Organisation has been using Integrated Vehicle Tracking System in all Warehouses & CA/WLA units, ensuring real time tracking of the consignments. Spot-bidding for door delivery was

Your Company is ful_lling it responsibility in building and nurturing strategic orientation towards strengthening & deepening relationship with customers & prospects, upgrading products and services basket through branding, promotions, customized services, research, process executed in all the Warehouses & CA/WLA units for getting faster competitive freight rates, e_cient transportation for faster door delivery, etc. In addition to this, towards "Customer Experience Enhancement", increased adoption of Enterprise Portal by customers was accomplished, with more than 3800 customers being on-board. Further, Annual Demand Registration for new prospects in Enterprise Portal was through online mode for easy access and transparency. With the help of INSDAG, TMT Estimator has been provided on SAIL-Suraksha web site for the estimate of size-wise TMT required for building. The system has been integrated with SBI for re_ecting the payments received from the customers. Your Company has been a leader in contributing to nation building since inception by servicing the requirements of various projects of National and Strategic Importance. During the FY 2024-25, SAIL has supplied signi_cant quantity of Steel to Projects in Sectors like Power, Road, Rail, Water, Airport Infrastructure, Oil & Gas, etc., the major projects being Dhubri to Phulbari Brahmaputra Bridge in Assam; RVNL Metro Projects; Sevoke Rangpo Railway Tunnel Project in Eastern Region; Ganga Expressway Project -Meerut to Budaun, Rishikesh Karnprayag 125 Km Rail Link; Vishnugad Pipalkoti 444 Mw Hydro Electric Project; Mahakumbh'25- Prayagraj; Central Vista Enclave; Delhi Metro; Kanpur Metro; Lucknow-Kanpur Expressway; Bundelkhand Prayagraj Expressway; Bharat Mandpam-ITPO; JIA-Delhi Mumbai Expressway Link Road in Northern Region; Jal Jeevan Mission; ISP Parwati Phase-3 & 4 River Linking Project; ISP-Kalisindh(Rajgarh and Shajapur) River Linking Project & Sanwer Irrigation Project; Mumbai-Ahmedabad High Speed Rail; Versova Bandra Sea Link Project in Western Region; and Kalpakkam Nuclear Project, Chennai Metro Rail Ltd., HMWSSB Sunkhishal Water Intake Project, Kalaburgi Cement Project, Kaleshwaram Lift Irrigation Project, Kaleshwaram Water Pipeline Project, Real Estate projects, etc. in Southern Region; thus encompassing diverse segments.

improvements, digitalization, etc. SAIL has been nurturing a leadership position in consumer mind space and is poised to meet the needs of the evolving market requirements and increasingly demanding business scenario with focus on pro_tability and enterprise value.

Public Procurement Policy for Micro and Small Enterprises

As required by the Public Procurement Policy of the Government of India, the information on procurement from Micro & Small Enterprises during FYs 2024-25 and 2023-24 is given below:

(Rs. crore)

#without considering imports, proprietary and high value items which cannot be procured from MSEs. For 2024-25, procurement data includes procurement of services.

Modernisation & Expansion Plan

A capital expenditure of Rs.5,879 crore has been incurred during FY 2024-25 against the Revised Budget Estimate of Rs.5,700 crore. Capex planned for the FY 2025-26 is at Rs.7,500 crore. The details of Addition, Modi_cation & Replacement (AMR) Schemes under implementation are given in the Management Discussion & Analysis (MD&A) Report.

In line with National Steel Policy, 2017 of Government of India, your Company has envisaged Phase-1 Expansion of its Integrated Steel Plants at Burnpur, Durgapur, Bokaro, Rourkela and Bhilai for enhancing its Crude Steel Capacity from existing ~19 MTPA to around ~35 MTPA through Augmentation and Expansion by 2030-31. In this regard, after Stage-I approval of capacity Expansion, tendering activities are under progress at IISCO Steel Plant and Durgapur Steel Plant and _nal tender speci_cations are under preparation at Bokaro Steel Plant.

B. 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 615 TCS/Man/Year in FY 2024-25. The manpower strength of the Company was 53,159 nos. as on 1st April, 2025 with manpower rationalization of 2,830 nos. achieved during the FY 2024-25. 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 2015-16, 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 33,028 employees were trained against target of 23,113 employees during the FY 2024-25 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 nurturing a strong connect with employees 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 Steel Industry (JCSSI), etc. with representation from major central Trade Unions as well as representative Unions of Plants/Units meet on periodic basis and jointly evolve recommendations/action plans for ensuring a safe environment and harmonious work culture which gets substantiated from the harmonious Industrial Relations witnessed over the years by SAIL Plants/Units, marked with diverse work culture at multi-locations.

In addition, Quality Circles, Suggestion Schemes, Shop Welfare Committees, Safety Committee, Canteen Management Committee, Productivity Committee, etc. also 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 well-entrenched participative culture 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.

206 sta_ grievances were received during the FY 2024-25 and with 32 grievances were pending from previous year, 228 sta_ grievances have been disposed of during the year, achieving 96% ful_lment and leaving 10 grievances outstanding at the end of FY 2024-25.

Further, during FY 2024-25, 857 grievances were received under Centralised Public Grievance Redressal and Monitoring System (CPGRAMS), a National level online system managed by Department of Administrative Reforms and Public Grievance (DARPG), Government of India.

The Status of Grievances received and disposed from 1st April, 2024 to 31st March, 2025 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 18th November, 2021 w.e.f. 1st January, 2017 notionally and the actual payment was made w.e.f. 1st April, 2020. In case of Non-executive employees, the wages including perks were _nalized/ revised in bipartite forum of National Joint Committee for Steel Industry (NJCS) with the approval of Ministry of Steel on 18th November, 2021. The pay scales have been implemented notionally w.e.f. 1st January, 2017 and the actual payment was made w.e.f. 1st April, 2020. The Perks and Allowances under Cafeteria Approach have been implemented w.e.f. 18th November, 2021. In terms of noti_cation dated 5th 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: y 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. y 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. y 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. y 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. y 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. y Your Company follows Presidential Directives on Reservation for Scheduled Castes and Scheduled Tribes in the matter of recruitments and promotions. As on 1st April, 2025, out of total manpower of 53159, 9033 belong to SCs (17%), 8581 belong to STs (16.1%). y Liaison O_cers 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. y 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/OBC category is nominated for the purpose as per the level of the Recruitment Board / Selection Committees/DPC. y Out of the total manpower of 53159, number of OBCs is 9346, which is 17.6% of the manpower. Reservation for OBCs came into force with e_ect from 8th 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. y 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. y 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. Implementation of online request has already been introduced from 1st May, 2015. A compilation of Record Retention 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 4,152 applications and 572 appeals under the Act during the FY 2024-25 and all of them have been disposed of within the time frame stipulated under the Act. CIC has also taken up 31 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 59,719 applications and 9,154 appeals up to 31st March, 2025, which were disposed-o_ within the stipulated time. Out of these, 1,182 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: y Ensuring e_ective citizen communication channels. y Demonstrating transparency and openness of its business operations by hosting the Citizen's Charter on the Corporate website. y 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 2024-25 are as under:

Out of the _ve complaints disposed of during the year, two complaints were discharged in a period of more than ninety days.

Disclosure under the Maternity Bene_t Act, 1961:

It is hereby con_rmed that during FY 2024-25, SAIL is in compliance with the provisions of Maternity Bene_t Act, 1961.

D. AWARDS & ACCOLADES WON DURING THE YEAR

Your Company has won the following awards during the FY 2024-25: y SAIL has been recognized as one of India's Best Employers among Nation Builders for 2024 by Great Place to Work Institute, India. The prestigious award acknowledges SAIL's legacy of unwavering commitment to nation-building and Company's e_orts to create a high trust workplace culture. y SAIL achieved the Golden Peacock Environment

Management Award 2024 by the Institute of Directors in recognition of Organisation's exceptional commitment to environmental sustainability, responsible practices and innovative solutions. y The Silver Award in Special Categories (Old age/ Specially–abled) was awarded to SAIL at 11th National CSR Summit & CSR Times Awards 2024 held in August, 2024.

y SHRM HR Excellence Awards 2024 were won by SAIL in the two categories: "PSE-Excellence in inclusion, Equity & Diversity" for enhancing workplace diversity, equity, and inclusion in alignment with the organization's vision, resulting in positive organizational outcomes; and "PSE-Excellence in Managing the Distributed Workforce" recognizing organizations that excel in managing a workforce spread across diverse locations/ geographies. y SAIL won two awards in the categories of Excellence in Infrastructure Development & Contribution to National Security & Defence in the Governance Now 11th PSU Awards. y SAIL Corporate Communication was conferred with eight national awards by the Public Relations Council of India in the categories including (i) e-Newsletter for SAIL Track, Corporate Film (English); (ii) Best Communication Campaigns (Internal Publics) for SAIL Gaurav Diwas celebration; (iii) House Journal (English) for SAIL News; (iv)Best PR Programme for Promoting Science & Technology for Steel Plant Technologies; (v) Best Use of social media in a Corporate Campaign for Promoting Green Steel; (vi)SAIL's Website and Annual Report for the Financial Year 2024-24, at the award function held on 20th -22nd December, 2024, at Raipur. y Bhilai Steel Plant (BSP) bagged the 25th CII National Energy Excellence Award 2024 for its Energy E_ciency and Innovative Project for Paver Block Manufacturing at BSP's SAIL Green Tiles Plant, at the ceremony held on 10th September, 2024. y Bhilai Steel Plant (BSP) was awarded Greentech Award for outstanding achievements in ‘Innovative Waste Management Technology' category, at the ceremony held in July, 2024. y Rourkela Steel Plant (RSP) won the prestigious "Greentech Pollution Control Waste Management and Recycling (PCWR) Excellence Award 2024" for outstanding achievement in Environment Management and Waste Utilization and Recycling E_orts during the year 2023-2024, at the award function organized by Greentech Foundation in July, 2024. y Rourkela Steel Plant (RSP) won the Productivity Excellence Award 2024 in Platinum and Gold category, by Odisha State Productivity Council during Productivity Week celebration on the theme "Arti_cial Intelligence (AI): Productivity Engine for Economic Growth". y Rourkela Steel Plant (RSP) was awarded Kalinga Environment Excellence Award 2023 in the Five Star Category from Institute of Quality and Environment Management Services, in recognition of outstanding achievements in environmental management during the year 2023. y IISCO Steel Plant (ISP) won the ‘Gold Award' in the International Convention on Quality Control Circles organized by Sri Lanka Association for the Advancement of Quality and Productivity. y IISCO Steel Plant (ISP) was awarded the ‘Kalinga Safety Excellence National Award 2023' by Institute of Quality and Environment Management Services, at the ceremony held on 18th December, 2024 at Bhubaneswar. y Bokaro Steel Plant (BSL) has been awarded the "Greentech Global EHS Award 2024" from Greentech Foundation for outstanding achievements in Environment, Health & Safety of its Employees and Workers during the award year 2022-23. y Durgapur Steel Plant (DSP) bagged the ‘Golden Peacock Award for Business Excellence' for the year 2025. y Salem Steel Plant has won the ‘IIM National Sustainability Awards 2024' under Secondary Steel Plants/Alloy Steel Plant category organized by The Indian Institute of Metals, on 20th November'2024. y Chandrapur Ferro Alloys Plant (CFP) was awarded the ‘Golden Peacock Occupational Health & Safety Award' for the year 2024 (Steel Sector). y Research & Development Centre for Iron and Steel (RDCIS) won the IIM SAIL Gold Medal and Best Presentations Awards from the Indian Institute of Metals.

E. ENVIRONMENT 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 consistently endeavor to pursue their operations aligned to environmental sustainability and compliant with stringent standards governing emissions, waste management and ecological preservation. Beyond mere compliance, the Company strives to enhance the environmental equilibrium across its operations, both within the Plant boundary and the broader Townships it supports. As an environmentally conscious and responsible corporate citizen, SAIL strives to integrate its business values and operations in an ethical and transparent manner to demonstrate its dedication towards sustainable development and stakeholder well-being. Your Company'sapproachisguidedbyitsCorporateEnvironmental Policy, which not only ensures adherence to regulatory norms but also demonstrates a forward-looking vision that aspires to exceed them. Besides, your Company remains committed to address the stakeholders' concerns and fostering a culture of environmental responsibility. This dedication is re_ected in its ongoing e_orts to innovate, optimize resource usage, and implement clean technologies that contribute to a greener future. The Corporate Environmental Policy is available at the website of the Company- www.sail.co.in.

Environmental Performance and Progressive Sustainability Measures

Your Company continues to drive its environmental stewardship with a proactive approach to pollution control, ensuring e_ective operation, modernization, and systematic upgradation of its pollution control systems. Through sustained maintenance e_orts, including revamping, refurbishment, and compliance driven enhancements, your Company remains aligned with increasingly stringent environmental regulations.

In response to evolving regulatory frameworks, the Company has strengthened its environmental management practices, implementing robust mitigation strategies, pollution reduction measures, and a rigorous compliance review process. These e_orts have yielded signi_cant improvements in environmental performance during FY 2024-25 over the last _ve years in the following areas: y Reduction in Speci_c PM Emission Load: Achieved 11% reduction, contributing to cleaner air quality. y Optimized Water Usage: Speci_c water consumption brought down by 11%, promoting sustainable resource management. y E_uent Discharge Improvement: Reduction in speci_c e_uent discharge by 22%, enhancing environmental sustainability. y E_uent Load Mitigation: Reduced by 34%, ensuring better waste management and ecological balance.

y BOF Slag Utilization: Increased signi_cantly by 61%, maximizing resource e_ciency and minimizing waste. y Enhanced Solid Waste Utilization: Noteworthy increase of 11%, reinforcing sustainable waste management and circular economy e_orts.

Environmental Projects Implemented for Enhanced Sustainability

Your Company has undertaken the following key initiatives to strengthen environmental performance: y Air Emission Control: Wet scrubbers at RMP-II of Bhilai Steel Plant were replaced with advanced bag _lters to e_ectively reduce particulate emissions. y Wastewater Treatment & Recirculation: A new E_uent Treatment Plant (ETP) was set up at Durgapur Steel Plant to process and recycle 500 m?/hr of wastewater from outfalls #1, 2 & 3, ensuring compliance with water discharge quality standards. y Environmental Quality Improvement: Coke Oven Battery#2 at Rourkela Steel Plant underwent complete rebuilding, along with an upgrade in coke and gas handling facilities, aligning with stringent environmental regulations. y Fugitive Emission Reduction: Conventional doors of Coke Oven Battery #11 at IISCO Steel Plant were replaced with modi_ed diaphragm-equipped doors to e_ectively curb fugitive emissions. y Water Quality Enhancement: Multiple e_ect evaporators at the De_uoridization Unit of Salem Steel Plant were revamped, introducing a third-stage Reverse Osmosis system to meet water quality benchmarks. y Air Quality Improvement: A battery-operated industrial road sweeping system was procured and deployed at Chandrapur Ferroalloy Plant, to ensure better ambient air quality management.

Commitment to Climate Change Mitigation and Green Steel Innovation

Recognizing the urgency and signi_cance of global climate concerns, your Company has integrated carbon footprint reduction as a fundamental principle within its corporate policies and operational framework. As part of its Modernization and Expansion Plan, the Company is implementing state-of-the-art, environmentally sound technologies, complemented by the best available and feasible pollution control systems.

Moving forward, SAIL is actively formulating a strategic roadmap for further reducing emission intensity, fostering industrial decarbonization and drive the transition towards Green Steel production.

Strategic Decarbonization & Technological Interventions

SAIL's decarbonisation strategy has been designed based on the existing architecture and logistics, availability of technology, product basket & market dynamics, technology infusion rate & availability of fund, future expansion plan, breakthrough technological developments, Government policies and the Company's social commitment. Your Company has embarked on collaboration with leading research institutes and technology providers to accelerate the decarbonization e_orts. A few key segments of focus are Carbon Capture, Utilization and Storage (CCUS) initiatives and integrating breakthrough technological interventions for sustainable steelmaking. To drive these objectives, SAIL has formalized several strategic alliances including the following: y Global and Domestic Collaborations for Green Transformation Advanced Technologies:

• MoU with John Cockerill India Limited to integrate green technologies into Iron and Steelmaking processes, incorporating advanced Steelmaking technologies for enhanced e_ciency and sustainability.

• MoU with SMS Group (Germany) with focus on integrating green Steelmaking technologies and exploring innovative solutions like Coke Oven Gas Injection in Blast Furnaces at BSP.

Hydrogen-Based Production and Digitalization:

Primetals Technologies and RSP are collaborating on several initiatives, including, hydrogen-based steel production, digitalization, gas treatment, and CCUS.

MoU with BHP to promote low-carbon steelmaking pathways, speci_cally targeting e_ciency improvements in the Blast Furnace - Basic Oxygen Furnace (BF-BOF) route.

MoA between RDCIS and IOCL for the development of a specialized _uid aimed at reducing moisture content in wet-quenched coke, thereby improving fuel e_ciency in blast furnaces and lowering emissions.

Under the GIZ–SCOPE MoU, a Techno-Commercial

Feasibility (TCF) Study has been initiated at Bhilai Steel Plant and its Mines. Led by GIZ, the Study will identify the initiatives and actions for bene_ciation of tailings, increased steel scrap usage, improved _nes for agglomeration, and integration of green hydrogen in steel production.

SAIL & LeadIT: Under the India-Sweden joint initiative, SAIL joined LeadIT in June, 2024. As part of the Working Group of Steel, _ve key thematic areas have been identi_ed for undertaking key projects with the goal to achieve decarbonisation through new technology interventions, improvement of process e_ciency, raw material e_ciency and transition to new energy options. The _ve thematic areas are Hydrogen DRI, CCUS, Blast Furnace Excellence, Dry Bene_ciation, and Biomass Pathways. SAIL is actively pursuing to identify potential collaborations under the LeadIT ITP.

Through these ambitious initiatives, SAIL is reinforcing its leadership in sustainable industrial practices, strengthening its commitment to net-zero aspirations, and driving the transition toward environmentally responsible steel production. y R&D Initiatives for Biomass Utilization

Your Company is actively exploring innovative approaches to reduce its carbon footprint by integrating biomass-based solutions into its Steelmaking processes. As part of its commitment to sustainable operations, the Company has initiated pioneering research and development e_orts aimed at replacing conventional fossil fuels with biochar, a carbon-neutral alternative derived from biomass.

Industrial Trials for Biochar in Sinter Production

• Inagroundbreakingsteptowarddecarbonization, Durgapur Steel Plant, in collaboration with RDCIS, has successfully conducted India's _rst industrial-scale trial utilizing bamboo biochar as a partial replacement for Coke Breeze in Sinter Plant-2.

• Greener Solid Fuel Adoption: The integration of biochar presents a promising pathway toward reducing reliance on conventional fossil fuels.

• Lower CO_ Emissions: Regular application of biochar in sinter production can signi_cantly reduce carbon emissions, contributing to a more sustainable steelmaking process.

• Enhanced Energy E_ciency: By leveraging biomass-derived fuel, SAIL is reinforcing its commitment to cleaner production methods while improving operational sustainability.

Co-Injection of Biochar with Pulverized Coal in Blast Furnaces

Your Company is also advancing e_orts to co-inject biochar alongside pulverized coal in its Blast Furnace operations. This initiative is expected to:

• Reduce dependency on traditional fossil fuels, enhancing process e_ciency and reducing CO_ emissions.

• Improve carbon reactivity, optimizing combustion dynamics within the furnace.

• Contribute to long-term sustainability, aligning with global best practices for industrial decarbonization.

Through these bold innovations, SAIL continues to push the boundaries of sustainable steelmaking, reinforcing its leadership in environmental stewardship and climate-conscious industrial practices.

y Hydrogen Utilization in Steelmaking

In alignment with global decarbonization goals, your Company is actively exploring the use of hydrogen (H_) as a cleaner energy alternative in its steelmaking processes. These e_orts are a signi_cant step toward reducing reliance on coal and coke, while advancing sustainable production practices. y Pilot Study on Hydrogen Usage in Blast Furnaces

Under the National Green Hydrogen Mission, Ministry of Steel sanctioned a grant of Rs.25 crore to SAIL in October, 2024 for conducting a pilot study on the utilization of hydrogen in an existing Blast Furnace. Against the total projected cost of the Study of Rs.50 crore, SAIL is contributing the remaining amount of Rs.25 crore. The Study aims to optimize hydrogen injection techniques to reduce coal/coke consumption, thereby, cutting emissions and enhancing energy e_ciency. The project is expected to be completed within two years and will serve as a crucial enabler for low-carbon steel production. y Collaboration with IIT Kharagpur for Green Hydrogen in DRI

Your Company is partnering with IIT Kharagpur to advance technology for utilizing Green Hydrogen in Direct Reduced Iron (DRI) production. The Project titled "Laboratory/Pilot Scale setup to optimize process parameters for producing DRI with varying H_ and CO ratios, along with 3D Multiphysics Modeling of the DRI shaft reactor." was approved by the Ministry of Steel on in February, 2025, with a total cost of Rs.9.82 crore, including Rs.5.47 crore funded by the Ministry and the balance Rs.4.35 crore contributed by SAIL. The Project seeks to establish a 10 kg/day laboratory-scale vertical shaft DRI unit at IIT Kharagpur and to develop a 1 TPD pilot-scale setup at SAIL/RDCIS to optimize process parameters for producing DRI using varied ratios of H_ and CO.

SAIL's strategic initiatives re_ect its commitment to environmental preservation, energy e_ciency and the long-term transformation of steelmaking into a greener and more sustainable industry.

Commitment to Waste Utilisation through Application of 4R Principles

Your Company actively embraces the 4R philosophy i.e. Reduction, Reuse, Recycling, and Recovery as a cornerstone of its solid waste management strategy, driving sustainable growth across the steel industry.

Innovative Utilization of BOF Slag for Sustainable Agriculture

In an e_ort to enhance the utilization of Basic Oxygen Furnace (BOF) slag, SAIL as one of three industry partners, under the aegis of the Ministry of Steel, partnered with ICAR-Indian Agricultural Research Institute (IARI) to conduct a cutting-edge research project titled: "Development of Steel Slag-Based Cost-E_ective Eco-Friendly Fertilizers for Sustainable

Agriculture and Inclusive Growth." The key highlights of the project include: y Value Added Products from Steel Slag: IARI successfully developed innovative Steel Slag-Based Value Added Products (SSBVAPs) for application in agriculture. y Field Trials at SAIL Plants: All the _ve Integrated Steel Plants undertook _eld trials to assess the impact of SSBVAPs on crops. y Encouraging Results: The trials yielded promising outcomes, demonstrating the e_ectiveness of SSBVAPs as a soil ameliorating agent, fostering healthier crop growth and reducing dependency on conventional fertilizers.

The bene_ts and future impact of the project comprise: y Symbiotic Growth: Foundation for symbiotic growth between the steel industry and agriculture by leveraging BOF slag as a sustainable resource. y Circular Economy Model: By repurposing industrial waste into agricultural products, your Company is promoting a circular economy model that minimizes waste and maximizes resource e_ciency. y Reduction of Waste: Contribution to the reduction of waste generated by the steel sector while advancing eco-friendly agricultural practices.

This innovative approach underscores your Company's commitment to sustainability, demonstrating how industrial by-products can be repurposed to bene_t both the environment and society.

Transitioning to an Energy-E_cient LED Illumination System

To align with the Government of India's Unnat Jyoti by A_ordable LEDs for All (UJALA) Scheme, your Company is taking signi_cant strides for enhanced energy e_ciency by systematically replacing conventional lighting with durable, high-performance LED systems. More than 1.2 million LED lights have been installed across all the Plants/Units, which is 93% of the total lighting infrastructure. This transition not only contributes to substantial energy savings but also reinforces our commitment to sustainable operations and reduced carbon footprint.

Further, as part of our forward-looking strategy, all upcoming projects will exclusively feature LED lighting systems, ensuring continued optimization of energy consumption and long-term environmental bene_ts. SAIL remains dedicated to integrating innovative solutions that drive e_ciency, sustainability, and operational excellence across all facets of its infrastructure.

Environmental Management System (EMS): Strengthening Sustainability Commitments

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. SAIL has adopted the internationally recognized EMS linked to ISO 14001, ensuring a structured approach to minimizing environmental impact, while enhancing operational e_ciency. This system enables the Organization to systematically manage environmental risks, optimize resource use, and maintain compliance within applicable regulatory standards across its operations.

EMS implementation has signi_cantly contributed to maintaining environmental performance across SAIL's Plants/ Units/Mines, reinforcing the Company's commitment to sustainability and responsible industrial practices. To further strengthen this commitment, EMS (ISO 14001) has been successfully implemented at all Plants. E_orts are ongoing to extend coverage across all Mines under SAIL's purview. By progressively integrating ISO 14001 certi_cation across its mining operations, Your Company continues to uphold global best practices in environmental stewardship, fostering long-term sustainability and resource e_ciency within the steel industry.

Eco-Restoration Initiatives: Rebuilding Degraded Ecosystems

Restoring and rehabilitating degraded ecosystems is vital for preserving biodiversity and replenishing essential ecosystem services. Your Company remains committed to environmental stewardship, ensuring that former mining areas are transformed into thriving landscapes. Following the successful restoration of Purnapani Limestone Mines in Odisha, SAIL has embarked on a fresh initiative for the eco-restoration of Meghahatuburu Iron Ore Mines

(MIOM) and Kiriburu Iron Ore Mines (KIOM). As part of this commitment, an MoU has been signed with the Institute of Forest Productivity, Ranchi, to implement eco-restoration strategies for mined-out areas and waste dumps. The project covers 10 hectares at KIOM and 8.5 hectares at MIOM in the Saranda Forest Division, with an extensive rehabilitation plan scheduled over _ve years, until 2025-26. This initiative will help revitalize these areas, enhance soil stability, promote a_orestation, and support local biodiversity, further strengthening your Company's dedication to sustainable mining and environmental responsibility.

Through strategic ecological interventions, the Company continues to pioneer green restoration e_orts, contributing to a healthier and more resilient ecosystem.

Harnessing Renewable Energy: Advancing Sustainable Power Solutions

Your Company is taking initiatives to accelerate its transition toward renewable energy, reinforcing its commitment to sustainable operations across its Plants, Units and Mines. As a part of this initiative, SAIL has successfully installed 12.54 MW of solar energy capacity, contributing to cleaner and more e_cient power generation. Expanding its green energy footprint, solar water heating and solar lighting systems have been integrated into most guest houses and hospitals, further promoting energy conservation in key facilities. y Diversifying Renewable Energy Sources: To further strengthen its sustainable energy mix, SAIL is procuring approximately 7 MW of bagasse based co-generated power at Salem Steel Plant during the sugarcane crushing season, leveraging biomass as a sustainable alternative. In addition to this, your Company is increasing its reliance on green power procurement from utilities, reinforcing its commitment to eco-friendly energy solutions covered in detail in the Power section. In a signi_cant move toward large scale green power adoption, DSP & ISP have secured arrangements for sourcing 50% of their total grid power requirements from DVC's Green Power supply. This strategic shift besides reducing dependence on conventional energy, also strengthens the Company's contribution to India's clean energy goals.

Looking ahead, SAIL has outlined ambitious plans to scale up its renewable energy capacity to 384 MW by the year 2028-29, thereby driving long-term environmental sustainability and energy e_ciency across its operations.

Through these proactive measures, your Company remains steadfast in its mission to integrate innovative renewable energy solutions, ensuring a greener and more sustainable future for the steel industry.

Plantation and A_orestation: Strengthening Ecological Balance

Your Company recognizes the critical role of plantation in advancing environmental sustainability and ecosystem restoration. Trees act as natural carbon sinks, helping to mitigate climate change while preserving biodiversity and supporting natural forest regeneration.

As part of its unwavering commitment to environmental management, your Company's a_orestation programs are designed not only to restore degraded lands but also to promote the growth of native species and enhance the overall ecological balance. These green initiatives contribute signi_cantly to: y Enhancing aesthetic appeal in industrial surroundings. y Reducing air pollution by absorbing atmospheric CO_. y Acting as natural barriers against dust and noise pollution.

With a longstanding dedication to expand green cover, your Company has systematically implemented a_orestation programs across its Plants/Units/Mines. During FY 2024-25, more than 3 lakh saplings were planted, adding to the impressive total of 22.4 million saplings planted across SAIL, since inception of the Company.

Through consistent and large-scale a_orestation e_orts, SAIL continues to play a pivotal role in environmental conservation, fostering greener landscapes and reinforcing sustainability within the steel industry.

MIS Portal for Environmental Data Management

In a signi_cant step towards digitizing environmental monitoring and reporting, your Company has launched an internet-based MIS (Management Information System) portal designed to enhance e_ciency in tracking environmental data across its Plants and Mines. This digital platform streamlines the collection, analysis, and reporting of critical environmental metrics, ensuring real-time data accessibility. By integrating technology-driven solutions, SAIL continues to strengthen its commitment to sustainable operations and e_ective environmental management.

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. In 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 and Revival Initiatives within SAIL

The Cabinet Committee on Economic A_airs (CCEA) in its meeting held on 27th October, 2016 had accorded ‘in principle' approval for strategic disinvestment of three units of Steel Authority of India Limited (SAIL) viz. Visveswaraya Iron & Steel Plant (VISP), Bhadravati, Karnataka; Salem Steel Plant (SSP), Tamil Nadu; and Alloy Steels Plant (ASP), Durgapur, West Bengal. The strategic disinvestment process for three units (ASP, SSP & VISP) of SAIL has undergone multiple attempts, with limited success. Despite e_orts to invite Expressions of Interest (EOIs) for Alloy Steels Plant (ASP), Visvesvaraya Iron & Steel Plant (VISP), and Salem Steel Plant

(SSP), the process faced challenges due to lack of technically quali_ed or interested bidders. Following recommendations from the Core Group of Secretaries on Disinvestment (CGD) and approval by the Alternative Mechanism (AM), the EOIs for VISP and SSP were annulled.

Business Excellence Initiative

Most of SAIL Plants/Units are certi_ed to ISO 9000, ISO 14000, ISO 45000, SA 8000, ISO 50000 and ISO 27000 Management Systems. For maintenance of these Management Systems as per the requirement of standards, timely audits were conducted and trainings were organised for better understanding of standards and latest updates for the same. M/s. TUV India Limited, the empanelled Certi_cation Agency, conducted the required Audits and Trainings related to these Management Systems. Empanelment of Certi_cation Agencies has resulted in Reduction in Audit Man-Days, Reduced Audit man-day rates, Improved quality of Audits, Reduced administrative hassles, etc.

Information Technology Related Initiative: SAIL's Digital Transformation: Building the Future, Today

Your Company has made signi_cant progress in its digital transformation journey, embedding innovation and technology across the Organization. Through a coordinated, enterprise-wide approach to digitalization, SAIL has achieved critical milestones that are driving operational e_ciency, enhancing safety standards, and promoting sustainable business practices. In alignment with its long-term vision, SAIL has launched a three-year Digital Transformation Program, aimed at leveraging next-generation technologies, fostering a culture of innovation, and delivering measurable impact. This program is designed to build the Organization's intrinsic digital capabilities, enabling the creation of a self-sustaining digital innovation engine. It positions the Company to remain competitive, meet dynamic customer expectations, and seize emerging opportunities in the evolving industrial landscape. Some of the strategic initiatives implemented during the year 2024-25 are given below:

Advanced Analytics & AI y Coke Quality Prediction Using AI: Enables 72-hour advance prediction at the coal blend preparation stage. y Silicon Prediction in Blast Furnaces: AI-driven model enhances thermal stability assessment and early issue detection. y Zinc Coating Automation: Machine learning-based control of zinc coating through critical parameter optimization. y Coal Blend Cost Optimization Tool: Assists in decision-making under raw material constraints. y Blast Furnace Digital Twin: Real-time data analysis to boost process e_ciency and output quality.

Process Automation & Integration y Digital Project Management System (DPMS):

Integrated with SAP for real-time tracking of project execution and payments. y Online Vigilance Clearance System: End-to-end digital work_ow from request submission to _nal clearance. y Online Billing System (OBS): Implemented for job contracts and material procurement via the SRM portal. y Web-Based e-Payment Module: Facilitates seamless digital transactions for customers and vendors. y Contractor Safety Management (CSM): Mapped in SAP/SRM, including PRQ rating and empanelment evaluation. y Implementation of Digital Signatures: Applied in Rourkela Steel Plant for invoices, test certi_cates, and PRs using Hardware Security Module (HSM). y Predictive Maintenance for Rotating Assets: Health monitoring system to reduce unplanned downtimes.

Logistics & Supply Chain Digitization y Real-Time Wagon Tracking for Customers y Vehicle & Driving License Veri_cation System: Improves logistics e_ciency at entry points. y Automatic Rake Planning System: Enables destination-based planning, delivery integration, and order-wise proposals. y Door Delivery Tracking for DD Materials y Centralized Monitoring of Railway Contracts Customer & Product Experience y SAIL Grahak Sampark App: A digital touchpoint for enhanced customer engagement. y Product Tagging System with QR Codes: Compliant with Make in India standards, designed by National Institute of Design (NID) and integrated with the with Quality Council of India (QCI) portal. y QR Code Label Printing for HR Coils in HSM-2 Laboratory & Quality Management y Laboratory Information Management System (LIMS): Centralized monitoring of key material analyses (iron ore, limestone, sinter, slag, liquid steel, etc.). y National Accreditation Board for Testing and Calibration Laboratories (NABL) Accreditation across Mills at BSP.

Infrastructure Monitoring & Cybersecurity y HSM-2 Online Monitoring System: Real-time visibility into server/client status, crane Wi-Fi, RAM usage, and includes e-logging functionality. y Cyber security Enhancements:

Deployment of seven Next-Generation Firewalls (NGFWs) across application and perimeter levels. Real-time log analysis for threat detection and incident response.

Multi-Factor Authentication (MFA) for web applications exposed to the internet.

These initiatives rea_rm SAIL's commitment to digital excellence and operational modernization. The Organization continues to embed technology as a strategic enabler, laying a robust foundation for future-ready manufacturing, agile decision-making, and customer-centric innovation.

Corporate Communication

In today's competitive business landscape, corporate communication is more than just information dissemination, it is a strategic function that plays a critical role in shaping brand perception, fostering stakeholder trust, and reinforcing organizational identity. For a leading entity like SAIL, e_ective communication is a key driver in strengthening its market position and building lasting relationships with stakeholders. It enables transparency, engagement, and alignment, both within the Organization and among external stakeholders, ensuring informed participation and sustained con_dence in the Company's vision

As a Maharatna Public Sector Undertaking, SAIL embraces its responsibility to communicate with clarity and integrity. Your Company operates in a dynamic industrial sector where transparency, engagement, and credibility are paramount. Corporate communication serves as the bridge between the Organization and its Stakeholders, ensuring consistent messaging across all touchpoints. By leveraging a well-structured communication framework, SAIL continues to strengthen its reputation as a responsible corporate entity committed to ethical practices, sustainability, and national development. Corporate communication is instrumental in reinforcing the Organization's commitment to openness, trust, and stakeholder engagement. Through carefully crafted messaging, SAIL ensures seamless interaction with its workforce, industry partners, Government bodies, investors, and the broader community. SAIL's communication strategies re_ect its core values, including sustainability, innovation, ethical governance, and corporate social responsibility. Your company employs a multifaceted approach that integrates traditional and modern communication tools, ensuring impactful engagement with diverse audiences. From strategic media outreach to digital initiatives and social media engagement, SAIL e_ectively conveys its vision, achievements, and contributions to India's industrial growth.

Internal Communication: Empowering the Workforce

Employees are central to SAIL's internal communication e_orts, serving as brand ambassadors and catalysts for organizational growth. Internal communication plays a pivotal role in fostering a uni_ed corporate culture, ensuring employees remain informed, motivated, and aligned with the Organization's strategic vision. By maintaining a steady _ow of information and prioritizing active engagement, SAIL strengthens its workforce's engagement, productivity, and sense of belonging. Your Company understands that a workforce which is well-informed and connected to the Company's broader objectives is more likely to contribute meaningfully and demonstrate a strong commitment to achieving corporate goals. To facilitate this, SAIL employs various communication tools, blending conventional methods with innovative approaches to create a dynamic exchange of information. One of the key initiatives in internal communication is SAIL Gaurav Diwas, the Organization's distinctive virtual Foundation Day celebration. Conducted successfully for _ve consecutive years, this event fosters unity among employees across all Plants and Units in India, reinforcing collective pride in the Company's achievements. Additionally, "SAIL News", the Company's in-house corporate magazine, has introduced interactive engagement features such as augmented reality-integrated videos, crossword puzzles, and articles of employee interest. These enhancements make information dissemination more engaging and accessible, ensuring employees remain actively involved in the Organization's narratives. Your Company has also embraced digital media to enhance communication within the workforce. The corporate video capsule, "SAIL Track", continues to gain traction, delivering concise and informative updates on key developments. With the increasing popularity of short-form videos, the Company has invested in producing engaging internal content focused on employee awareness and motivation. To ensure awareness on critical subjects, SAIL has implemented targeted campaigns addressing anti-corruption measures, workplace ethics, and employee development programs. Posters, digital content, and training initiatives reinforce these essential principles, strengthening the Company's commitment to integrity and workforce empowerment. Social media platforms serve as an additional avenue for internal engagement, allowing employees to access timely updates, interact with leadership, and share insights on corporate initiatives.

External Communication: Strengthening Corporate Presence

As one of the industry leader, SAIL's external communication strategy is designed to foster strong stakeholder relationships and maintain a high level of corporate visibility. Your company employs a comprehensive approach that integrates traditional and digital mediums to ensure seamless communication with investors, customers, media, and the general public. Timely and transparent communication is fundamental to SAIL's outreach. The Company actively shares updates on _nancial performance, operational milestones, strategic partnerships, and sustainability initiatives. Through well-crafted press releases, industry reports, and digital content, SAIL ensures stakeholders remain informed about its ongoing contributions to India's steel sector. Social media platforms serve as powerful external communication tools, allowing SAIL to engage with audiences beyond traditional corporate channels. With an active presence on X, LinkedIn, Facebook, and Instagram, the Organisation disseminates important updates regarding its business operations, community programs, and sustainability e_orts. This digital outreach strengthens SAIL's thought leadership and visibility in the industry. Participation in national exhibitions further reinforces the Company's brand presence. Your company's steel showcases during India Steel, Bharat Mobility, IITF, etc. provide a strategic platform to highlight its contributions to infrastructure, industrial development, and economic growth. These exhibitions align with initiatives such as Atmanirbhar Bharat, re_ecting SAIL's commitment to fostering self-reliance and innovation in India's manufacturing sector. Beyond business-focused communication, the Company plays an active role in supporting Government initiatives. The Company collaborates on programs such as Swachhata Pakhwada, Run for Unity, Vigilance Awareness Week, Hindi Diwas, and International Day of Yoga, ensuring widespread participation and awareness. Through active dissemination of information, SAIL ampli_es these initiatives, reinforcing its commitment to social and national development. SAIL's communication e_orts extend beyond traditional corporate narratives, emphasizing its role in driving progress and sustainability. By showcasing its contributions to environmental responsibility, ethical governance, and community welfare, the Company fosters meaningful relationships and cultivates long-term trust among stakeholders. With a strong nationwide presence, SAIL recognizes its responsibility as an e_ective communicator. Your company remains committed to ensuring transparent and inclusive dialogue, reinforcing operational integrity and corporate leadership. Its evolving communication strategy continues to set benchmarks in employee participation, stakeholder engagement, and brand positioning.

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 2024-25: y To increase vigilance awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants and Units of the Company. A total of 234 workshops involving 5271 participants were organized for enhancing Vigilance Awareness on Whistle Blower Policy, Purchase/ Contract Procedures, Preventive Vigilance, Conduct

& Discipline Rules, Common Irregularities, Systems

& Procedures followed in SAIL, etc. Amongst these training programmes, 25 dedicated two day Preventive Vigilance training programs were organised during FY 2024-25, wherein, a total of 521 executives of SAIL have been covered. y Preventive Checks including _le scrutiny and Joint Checks were conducted regularly in vulnerable areas of the Company. A total of 2224 Preventive Checks including _le scrutiny and Joint Checks were conducted at di_erent Plants/ Units. y Vigilance provides vital inputs to the concerned authorities for improving the prevailing systems for bringing about more transparency. Accordingly, twelve System Improvement Projects (SIPs) were undertaken at di_erent Plants/Units of SAIL. y 16 cases were taken up for Intensive Examination at di_erent Plants/Units. During these Intensive Examinations, high value procurement/contracts are scrutinized comprehensively and necessary recommendations were forwarded to concerned departments for implementation. y As per the Guidelines of Central Vigilance Commission, Vigilance Awareness Week was observed in SAIL during 28th October to 4th November, 2024. The week started with administering the Integrity Pledge and reading out the messages of dignitaries on 28th October, 2024 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. During the Vigilance Awareness Week, 2024, two books namely "DOs and DON'Ts" in printed form and the e-magazine "Preventive Measures" were launched by Vigilance Commissioner Shri A.S. Rajeev. In addition to this, a Compendium of Case studies of vigilance cases of the recent times was also launched during the Vigilance Awareness Week, 2024. The following Training/ Workshops/ Programmes were organized during the Vigilance Awareness Week, 2024: A Two-day workshop on the topic ‘360? Vigilance: Preventive Vigilance Strategies, Proactive Vigilance, Investigation Techniques & Complaint Management' was organized at MTI, Ranchi on 4th & 5th October, 2024. The function was inaugurated by Vigilance Commissioner Shri A.S. Rajeev and attended by senior o_cials of CVC, SAIL and MECON.

A Talk on ‘Cyber Hygiene & Security' by subject matter expert Shri Mukesh Mangal, ITS, DDG, DoT was organized at Corporate O_ce. Vigilance awareness programmes/preventive vigilance programmes were also organized at almost all Plant/Unit locations covering around 800 employees.

Essay/Slogan/Quiz/Debate/Elocution programmes were organized at various locations of SAIL for employees wherein around 1400 employees had participated.

Various programmes for Children were also organized at various schools/colleges at various Plant/Unit locations with about 2500 school/college students had participated.

Awareness programmes were also organized through Gram Sabhas at various locations in which around 780 persons had participated.

Interactive sessions on PCP, GeM, CDA Rules, Planning, Contracts Management were held for employees with 800 participants being bene_tted. y In an another Participative Vigilance initiative taken up, Ethics Club and Ethics Circle activities were undertaken in di_erent Plants/Units during the FY 2024-25. 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. y The concept of Learn from Each Other (LEO) Workshops has been started 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. During the FY 2024-25, two LEO workshops were organized. One on the titled, ‘Receipt, Sampling, Testing, Acceptance, and Accounting of Ferro Alloys', was held at ISP on May 20/21, 2024. The other on the topic ‘Preparation of Charge Sheets', was organized at RSP on December 13/14, 2024. Participants attending the LEO workshops were Vigilance O_cers from various Units of SAIL and o_cers from other organizations. y The following _ve thrust areas were identi_ed by SAIL Vigilance for examination/scrutiny: (i) Scrutiny of cases in which more than one Repeat Order has been placed.

(ii) Scrutiny of cases where Work Order has been placed on Single Tender Basis but executed by a sub-contractor. iii. Scrutiny of Asset Registers and Land Records. iv. Scrutiny of educational quali_cations/degrees w.r.t. promotion cases where extra marks have been awarded due to higher quali_cation. v. Scrutiny of Bill Payments against Performance Based Items. y ‘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. y As on 1st April, 2024, a total of 68 complaints were pending and the closing balance as on 31st March, 2025 was 53. The summary of disposal of complaints during 2024-25 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.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Management Discussion and Analysis Report covering the performance and outlook of the Company is attached and forms part of this Report.

AUDITORS' REPORT ON STANDALONE FINANCIAL STATEMENTS

The Statutory Auditors' Report on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2025 along with Management's replies thereon is placed at Annexure-I to this Report. The comments of Comptroller & Auditor General of India (C&AG) on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2025 under Section 143(6) (b) of the Companies Act, 2013 alongwith Management's replies are placed at Annexure-II to this Report.

COST RECORDS & 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. Shome & Banerjee, New Delhi; M/s. Niran & Co., Bhubaneswar; and M/s. Narasimha Murthy & Co., Hyderabad as Cost Auditors for the FY 2024-25. The Board had _xed a fee of Rs.12.12 lakhs plus applicable taxes and reimbursement of out of pocket expenses for conducting the Audit of cost records maintained by the Company for the FY 2024-25, which was rati_ed by the shareholders in the last Annual General Meeting.

SECRETARIAL AUDITOR'S REPORT

In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors has appointed M/s. Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the Company for the FY ended on 31st March, 2025. 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 2024-25, it is stated that appointment of Independent Directors including Woman Independent Director 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 in its Board.

In respect of the observations regarding Composition of the Audit Committee, Nomination and Remuneration Committee and Risk Management Committee was not in compliance with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 during a part of the Financial Year 2024-25, it is mentioned that non-compliance of the composition of these Committees is due to insu_cient number of Independent Directors on the Board of the Company. However, on nomination by the Government of India, four Independent Directors have been appointed in the Board of Directors of the Company and accordingly, composition of these Board Sub Committees is in compliance with the prescribed Regulations of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

SECRETARIAL AUDITOR'S APPOINTMENT

Pursuant to Regulation 24A of SEBI (Listing Obligations & Disclosure Requirements) Regulation, 2015, the Board of Directors on the recommendation of the Audit Committee and subject to approval of the Members in the Annual General Meeting has recommended appointment of M/s. Agarwal S. & Associates as Secretarial Auditor of the Company for a period of _ve Financial Years commencing from 2025-26 to 2029-30.

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.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

IISCO-Ujjain Pipe and Foundry Company Limited, a wholly owned subsidiary of the erstwhile Indian Iron and Steel Company Limited (IISCO), was ordered to be wound up by BIFR. The O_cial Liquidator is continuing its liquidation process.

Your Company currently has two subsidiary Companies namely, SAIL Refractory Company Limited (SRCL) and Chhattisgarh Mega Steel Limited.

SRCL is operating the Salem Refractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16th December, 2011. Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with an objective of setting up of an Ultra Mega Steel Project. The project has not taken 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 31st March, 2025 are placed at Annexure-VI to this Report.

AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

The Statutory Auditors' Report on the Consolidated Financial Statements along with the Management's replies thereon is placed at Annexure-VII to this Report. The comments of Comptroller & Auditor General of India (C&AG) on the Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2025 under Section 143(6) (b) read with Section 129(4) of the Companies Act, 2013 along with Management's replies are placed at Annexure-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 150TH REPORT

During the FY 2024-25, 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 2024-25 is available at https://sail.co.in/sites/default/files/2025-08/ANNUAL-RETURN-2024-25.pdf.

BOARD MEETINGS

During the year, 11 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report at Annexure-IV, forming part of this Annual Report.

AUDIT COMMITTEE

The Audit Committee of the Board was initially formed by the Company in 1998. The Audit Committee has been reconstituted from time to time in terms of the SEBI Regulations and Companies Act, 1956/2013. The minutes of the Audit Committee meetings are circulated to the Board, discussed and taken note of. The composition and other details pertaining to the Audit Committee are given in the Corporate Governance Report at Annexure-IV.

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

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 the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; (ii) the Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of 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 & experience and are independent of the Management.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

In terms of the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, the details of Loans, Guarantees and Investments given during the FY ended on 31st March, 2025 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 2024-25, 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.

ENTERPRISE RISK MANAGEMENT

SAIL has a comprehensive Enterprise Risk Management (ERM) Policy to ensure robust risk identi_cation, assessment and mitigation across all levels of the Organization. The policy serves as a guiding framework for managing business and operational risks, aligning risk management with corporate objectives to support sustainable growth. The ERM Policy mandates a structured and proactive approach to risk management, incorporating best practices to mitigate potential threats while enabling strategic opportunities. It emphasizes compliance with regulatory frameworks, governance standards and internal controls to strengthen resilience and decision-making.

Key aspects of SAIL's ERM framework include: y Establishing a well-de_ned Risk Governance Structure, with clear roles and responsibilities at all levels. y Implementingasystematicprocessforriskidenti_cation, evaluation, escalation, mitigation, and monitoring. y Maintaining comprehensive risk documentation, including a Risk Register, Risk Assessment Template, Risk Pro_le, and Risk Escalation Matrix. y Conducting periodic risk reviews and reporting risks to the Board through the Risk Management Report. y Enhancing a risk-aware culture across the Organization through training and awareness initiatives. y Ensuring integration of risk management principles within HR policies and performance measurement criteria.

SAIL follows a bottom-up approach to risk management, with each business unit having its own Risk Management

Committee responsible for overseeing the unit's Risk Management Framework. At the corporate level, the Enterprise Risk Management (ERM) division operates under the Chief Risk O_cer, the Risk Management Steering Committee (RMSC) chaired by the Director (Finance) at Corporate O_ce and the SAIL Risk Management Committee (SRMC) headed by an Independent Director. In alignment with LODR Guidelines, two SRMC meetings were held during the year 2024-25.

By fostering a culture of risk awareness and accountability, SAIL remains committed to safeguarding stakeholder interests, enhancing business continuity, and achieving long-term sustainability in a dynamic risk environment. SAIL's Risk Management Policy Statement can be accessed on its o_cial website at 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 Report on CSR in prescribed format are placed at Annexure-XII to this Report. The CSR Policy of the Company is available on the website of the Company www.sail.co.in.

Healthcare:

Your Company's extensive and specialised Healthcare Infrastructure provided specialized and basic healthcare to nearly 186.64 lakh people living in the vicinity of its Plants and Units during the period 2011-2025. 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 2024-25, regular Health Camps have been organized and 5 Mobile Medical Units (MMUs) extended quality healthcare to about two 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 90,000 patients during FY 2024-25.

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 12000 BPL category students at integrated steel plants and mines locations with facilities of free education, mid-day meals, uniform including shoes, text books, stationary items, school bag, water bottles, etc., under CSR. More than 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 about 1600 youths and 2400 women of peripheral villages in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing, Welder, Fitter, Electrician training, Improved agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Achar/Pappad/Agarbati/Candle making, Screen printing, Handlooms, Sericulture, Yarn Weaving, Tailoring, Sewing and Embroidery, Gloves, Spices, Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, Bans/Jute Shilp, Smokeless challah making, etc. About 474 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 3rd December, 2024 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 for participation of the Divyang athletes in the Special Olympics World Games and other sports tournaments.

Development of Aspirational Districts:

In order to provide comprehensive development of both physical and social infrastructure, SAIL has undertaken CSR activities in 6 Aspirational Districts, viz. Kanker, Narayanpur and Rajnandgaon in Chhattisgarh and West Singhbhum, Bokaro, Ranchi in Jharkhand 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 U/SECTION 143(12)

M/s.JN Gupta & Co LLP, Statutory Auditors, vide email dated 7th February, 2025 has forwarded a letter dated 27th January, 2025 addressed to the Board of Directors, providing details of the fraudulent transactions identi_ed by the Finance

& Accounts Department of DSP in connection with the SAIL Pension Scheme and Payroll Payments. Initially 185 fraudulent transactions were detected amounting to Rs.3.33 crore. Further scrutiny revealed 18 more fraudulent transactions totalling Rs. 0.27 crore. An amount of Rs.0.45 crores have been reclaimed so far. The implicated Executives have been suspended and Departmental and Police enquiries are ongoing and coordination with banks to freeze accounts of unauthorised bene_ciaries is underway. Further, legal remedies have also been initiated against the implicated employees. The Board and the Audit Committee was informed of the fraud and the remedial measures undertaken to immediately review and strengthen the internal control systems to plug the loop holes, if any.

PERFORMANCE EVALUATION OF DIRECTORS AND BOARD

Ministry of Corporate A_airs has vide its Noti_cation dated 5th June, 2015 has exempted Government Companies from the provisions of the Companies Act, 2013 which, inter-alia, provides that Sub Sections (2), (3) & (4) of Section 178 regarding appointment, performance evaluation and remuneration shall not apply to Directors of the Government Companies. Further, the Ministry of Corporate A_airs vide Noti_cation dated 5th 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 5th June, 2015 has exempted Government Companies from complying with the provisions of Section 197 of the Companies Act, 2013. Accordingly, such particulars have not been included in the Board's Report.

GENERAL DISCLOSURES i. During the year, the Company has not accepted any deposits under the Companies Act, 2013. ii. No 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. Government of India, Ministry of Steel, vide its letters dated 19th 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 19th January, 2024. Further, complying with the Ministry of Steel, Government of India, letter dated 19th January, 2024, the Company had placed 26 below Board Level O_cials of the Company, on suspension with e_ect from 19th January, 2024. Interim arrangements were made to continue uninterrupted operationsoftheCompany.Subsequently,Governmentof India, Ministry of Steel, vide Orders dated 28th 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 in the interim period. vi. There has been no receipt of remuneration or commission by the Chairman & Managing Director or the Whole Time Directors of the Company from any of its Subsidiary Companies.

DIRECTORS AND KEY MANAGERIAL PERSONNEL y Smt. Neelam Sonker (DIN:03111659), Independent Director, had tendered her resignation vide letter dated 7th April, 2024, with immediate e_ect. y Shri Birendra Kumar Tiwari (DIN:09699855) has been appointed as Director (In-charge, Bokaro Steel Plant) w.e.f. 20th April, 2024. y Smt. Sukriti Likhi (DIN:01825997), Government Nominee Director, has ceased to be Director w.e.f. 19th August, 2024. y Shri Ashok Kumar Tripathy (DIN:02485365), Independent Director, has ceased to be Director w.e.f. 7th November, 2024. y Shri Kanhaiya Sarda (DIN: 06792668), Independent Director, has ceased to be Director w.e.f. 11th November, 2024. y Shri Sagi Kasi Viswanatha Raju (DIN:00434856), Independent Director, has ceased to be Director w.e.f. 15th November, 2024. y Dr. Gopal Singh Bhati (DIN:09406763), Independent Director, has ceased to be Director w.e.f. 17th November, 2024. y Shri Arvind Kumar Singh (DIN:09725842), Director (Technical, Projects & Raw Materials), has ceased to be Director w.e.f. 30th November, 2024. y Shri Atanu Bhowmick (DIN:08891338), Director (In-charge, Rourkela Steel Plant), has ceased to be Director w.e.f. 31st December, 2024. y Shri Brijendra Pratap Singh (DIN:08665585), Director (In-charge, Burnpur & Durgapur Steel Plant), has ceased to be Director w.e.f. 8th January, 2025 (F/N). y Shri Sanjeet (DIN:09833776), Government Nominee Director, was on the Board of Directors from 9th January, 2025 to 17th January, 2025. y Shri Manish Raj Gupta (DIN:10905637) has been appointed as Director (Technical, Projects & Raw Materials) w.e.f. 14th January, 2025. y Shri Alok Verma (DIN:10905643) has been appointed as Director (In-charge, Rourkela Steel Plant) w.e.f. 14th January, 2025. y Shri Anil Kumar Tulsiani (DIN:08742907), Director (Finance), has ceased to be Director w.e.f. 31st March, 2025. y Dr. Gopal Singh Bhati (DIN:09406763) has been reappointed as an Independent Director w.e.f. 21st April, 2025. y Dr. Anju Bajpai (DIN:09478503) has been appointed as an Independent Director w.e.f. 21st April, 2025. y Shri Manjeet Kumar Razdan (DIN:09413663) has been appointed as an Independent Director w.e.f. 21st April, 2025.

y Prof.(Dr.) K. Jayaprasad (DIN:09585722), Independent Director, has ceased to be Director w.e.f. 25th April, 2025. y Dr. Ashok Kumar Panda, (DIN:08532039) has been appointed as Director (Finance) w.e.f. 30th April, 2025. y Shri Anirban Dasgupta (DIN:06832261), Director (In-charge, Bhilai Steel Plant) has ceased to be Director w.e.f. 30th April, 2025. y Shri Ashish Chatterjee (DIN:07688473) has been appointed as Government Nominee Director w.e.f. 11th June, 2025. y Shri Vejendla Srinivasa Chakravarthy (DIN:09370715), Director (Commercial) has ceased to be Director w.e.f. 30th June, 2025. y Shri Pranoy Roy (DIN:10123502) has been appointed as an Independent Director w.e.f. 8th July, 2025. y Shri Surajit Mishra (DIN:11166409) has been appointed as Director (In-charge, Burnpur and Durgapur Steel Plants) w.e.f. 15th July, 2025. y Shri Chitta Ranjan Mohapatra (DIN:11051608) has been appointed as Director (In-charge, Bhilai Steel Plant) w.e.f. 15th July, 2025.

ACKNOWLEDGEMENT

The Board of Directors 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 cooperation received from Government of India, particularly Ministry of Steel, Regulatory & Statutory Authorities, Ministry of Environment, Forests & Climate Change, DIPAM, NITI Aayog, Department of Public Enterprises, Railways, State Governments, Electricity Boards, etc. The Board also 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.

Place : New Delhi (Amarendu Prakash) Date : 22nd August, 2025 Chairman & Managing Director