Chairman-cum-Managing Director s statement... 1 Key impacts, risks, opportunities and approach for sustainability, SWOT... 4 Company profile...

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2 Chairman-cum-Managing Director s statement... 1 Key impacts, risks, opportunities and approach for sustainability, SWOT... 4 Company profile... 7 Report parameters Awards and recognitions Corporate governance Stakeholder engagement Economic performance Environmental performance Social performance a. Labour practices b. Human rights c. Society d. Product responsibility... 64

3 It gives me immense pleasure in introducing the third Sustainability Report of RINL. At RINL, Sustainability Reporting is an opportunity to explore, assimilate and understand information that is critical from the view point of Sustainability. Great attention has been paid to authenticity of reporting to enhance transparency in information sharing with our stakeholders. In this endeavour, the expertise of CII-ITC Centre of Excellence for Sustainability Development has been taken with a view to bring about further qualitative improvement in the report. The various units of our expansion to double the capacity to 6.3 MTPA were commissioned during the year and the focus now is to gradually increase the production from the new units. Quick stabilization of the expansion units along with the modernization of existing plant will augment the capacity to 7.3 Mt by 2017, which will provide economic Sustainability. It would increase our share of crude steel in the country where existing and new players are also adding capacities aggressively. In this drive, the modernization of one of the Blast Furnaces has been completed and modernization of the other units are in various phases. The company is dependent on external sourcing for key raw materials and hence focuses on improving productivity and energy efficiency to minimize the cost disadvantage of raw materials to sustain healthy bottom line. The focus has always been on minimizing the operating costs by recovering and reusing waste energy and waste heat in the plant. In this effort, during the year, the company successfully commissioned the India-Japan model project to generate 20.6MW electricity utilizing the waste heat from hot sinter, the first of its kind in the Indian Steel Industry. This project has been completed with technological co-operation from NEDO under Green Aid plan of Japan and the project has a potential to reduce the overall specific energy consumption by 0.07 Gcal/tcs. On the community development front, I strongly believe that for sustainable economic development of the country, we need to create sustainable livelihood besides industrial development, on a large scale. An amount of ` Crores has been spent during the year on CSR activities for the benefit of the communities around us. RINL CSR flagship programmes include Sanjeevan, NetraJyothi Saksham and Surya for improving health, literacy rate and living conditions of the local population. Also, RINL has been encouraging the local industry to be a part of its supply chain system which in turn is also developing the communities around us. The company has built a good image and established itself as a leader in bars and rods and would continue to improve further with more value added production from its expansion units. RINL is always committed to the fulfilment of the expectations of its stake holders, both internal and external, and I am sure that with the genuine efforts of the RINL collective, the company is heading confidently towards a sustainable future. (P Madhusudan) Chairman-cum-Managing Director

4 Key impacts, risks & opportunities SWOT Strengths Threats Long term action plans In view of the major shift in external scenario and realization from its first phase of growth through commencement of commissioning activities of its 6.3 Mt expansion stage, the earlier Corporate Plan Vision 2020 has been revisited and Corporate Plan - Vision 2025 has been formulated. As part of the Vision 2025 exercise, the Vision statement has been articulated and the revised Vision statement and Objectives are as follows: S1. Shore based location S2. Operational efficiency S3. Diverse customer base and extensive marketing network S4. Availability of land S5. Image as quality producer. S6. Strong credit worthiness S7 Committed manpower Weakness T1. Increased competition. T2. Increasing raw material mrices T3. Oligopolistic coal supply side T4. Single iron ore supplier. T5. Predominant secondary sector in long products. T6. Threat of substitutes. T7. Slowdown in economic growth T8. Declining margins due to increasing cost of production Opportunities Expansion to 6.3 Mt, 7.3 Mt and beyond (Leverage: S4, S6, S7; Capitalise: O1, O2; Counter: T1, T5) Efforts on developing export markets (Leverage: S1, S5; Capitalise: O3; Counter: T7) Ramp up of production from expansion units (Strengthen: S5, S7;Counter: T1, T5, T7) Expansion of domestic markets (Leverage / strengthen: S3, S5; Counter: T5) Modernization projects taken up in all critical areas (Strengthen: S2; Counter: T8) To be the most efficient steel maker having the largest single location shore based steel plant in the country. W1. Lack of captive mines for iron ore and coking coal. W2. Single location Company and only long products, exposed to cyclic markets. W3 High equity base. O1. Encouraging growth projections. O2. Huge infrastructure spends planned in 12th five year plan. O3. Improved availability of ports & logistics O4. Product diversification scope for improving balance sheet Diversify into flats and niche products from / beyond 7.3 Mt. (Capitalise: O1, O2, O4; Counter:W2, T1, T5, T7) Strategic initiatives for acquisition / sourcing of major raw materials (Counter: W1, T2, T3, T4,T8) Capital restructuring (Counter: W3, Capitalise: O5) OBJECTIVES Area Major initiatives during Result 3 Objectives Achieve Gross Margin to Turnover ratio > 10%. Plan for finishing mill to integrate with 7.3 Mt capacity and commission the same by Achieve rated capacity of new & revamped units by Capture markets for high-end value added products by focusing on sector specific applications and customer needs. Achieve leadership in Energy consumption by achieving 5.6 Gcal/tcs by Globalisation of operations through acquisition of mines and setting up of marketing network abroad. Diversify through operationalizing of Bhilwara Mines, setting up of Pelletization plant, DRI-EAF unit, Wheel & Axle Plants. Create a high performance and safe work culture by nurturing talent and developing leaders. To grow in harmony with the environment & communities around us. Expansion Modernization and upgradation of projects Strategic initiatives Increased focus on export markets and special steels Efforts towards allocation of Iron ore mines Environment and energy Commissioning of major units of Stage-1 of 6.3 Mtpa Expansion Category I Capital Repairs of BF-1 MoUs with Indian Railways and PGCIL for business diversification Exports grew by 25% and OEM certifications Allotment of Iron ore mines at Bhilwara, Rajasthan Online reporting system- ENVISION to report various environmental aspects 20.6 MW waste heat recovery system on sinter straight-line cooler of sinter machines 1 & 2 made ready for synchronisation 4

5 Being a single location Company, with product mix exclusively of longs, handicapped due to lack of captive mines for major raw materials and equipment operating at above rated capacities since more than a decade now, RINL has a unique portfolio of risks and opportunities. Initiatives addressing the same are crucial for company s profitability in current time frame and also for sustainable performance in the time to come. A brief on initiatives taken to address the following significant risks and opportunities during the reporting period is as follows: Sluggish market conditions: Slowdown in economic growth, execution delays in many infrastructure and construction projects have translated to lower demand for steel. This in turn has led to sluggish volume growth for major steel manufacturers during Volatile raw material prices: RINL s financial performance hinges critically on input costs as it is the only main steel producer in India without captive mines for Iron Ore and Coal. In order to have a continuous supply of major raw materials and also keeping in view the requirement of expansion units, the following measures have been taken during the reporting period: Iron ore: Long Term Agreement (LTA) with NMDC for supply of 12.5 million tonnes of iron ore to meet the requirement upto 6.3 million tonnes. Efforts are also being made to develop other sources of supply like supply from OMDC, a subsidiary of RINL. RINL has been continuously taking up the matter of allocation of mines with concerned State Governments and Central Government. RINL has taken up with Govt. of Rajasthan for allotment of Jahazpur iron ore block in Bhilwara, Rajasthan MOU signed with NMDC for Joint Venture to install 336 KM length Slurry pipeline from Jagdalpur to Visakhapatnam and to set up 4 MTPA capacity Pellet plant at Visakhapatnam. Coking coal: LTA formulated with reputed suppliers like BHP, Anglo and Peabody of Australia; Logan &Kanahwa and Alfa Coal of USA, Solid Energy of New Zealand for supply of Coal. Besides this, one standing EOI has been kept on Company s website for exploring new sources of Coal supply. Capital repairs / major revamps for critical equipment: RINL has charted out a roadmap for technological up-gradation of critical units in the existing facilities, which would not only infuse fresh lease of life to the ageing equipment but would also scale up efficiency and productivity to contemporary levels. Major revamps and up-gradations would continue till in a phased manner. This revamping of equipment would also enhance production volume by 1 Mtpa at the hot metal stage and also would help in adoption of latest energy efficient and environment friendly technologies in the existing units of the plant. Commissioning of 6.3 MT stage: During the year , Sinter Machine-3, 2 convertors and Continuous caster complex in SMS -2, WRM-2 etc., were commissioned. Trial runs and commissioning were completed in many auxiliary units which are prerequisite for commissioning of the main facilities in expansion. Growth potential for RINL at Visakhapatnam: RINL has a land bank of around 20,000 acres which is suitable for expansion up to 20 Mtpa at Visakhapatnam. Also, the infrastructure of two major ports in the vicinity and connectivity by rail and National Highway coupled with projected growth in infrastructural development in the country makes expansion at Visakhapatnam a highly attractive proposition. Expansion works for 7.3 Mt stage are already under way and plan for next phase of expansion up to 11.7 Mt stage is being developed. At RINL, leadership focus has always been on ensuring alignment across the organization by evolving action plans and initiatives at every level to achieve Company Objectives. This is done through an elaborate Sustainability Planning exercise carried out annually, that results in development of 5 year roll on plan with emphasis on initiatives for the current year. In line with our efforts to integrate Sustainable Development with business strategy, the Sustainability Plan addresses various aspects of Sustainable Development like expansion and technology up-gradation, energy, environment and safety initiatives, initiatives for enhancing employee involvement, market development, raw material securitization, R&D plans and CSR initiatives apart from initiatives addressing profitability concerns of the organization during the year. The Company continued its strategic initiatives, towards business diversification and raw material securitization by signing MOUs with Andhra Pradesh Mineral Development Corporation and Indian Railways. Efficiency in energy consumption has been the strength of RINL since inception, which has been made possible through adoption of green technologies. In order to further build on this strength, the company adopted Energy Management Standard BSEN in and migrated to ISO for Energy Management in and RINL is the first in Indian Steel Industry to get this certification. This provides uniform thrust on energy audits and improvement plans across the company. Sustainable Development policy was formulated so as to internalize DPE guidelines on SD. As part of the policy framework aspects related to identification, implementation, review and evaluation of SD projects have been addressed and three tier monitoring mechanism has been put in place. 5 6

6 Scale of operations Company profile Rashtriya Ispat Nigam Limited (RINL) - a Navratna Public Sector Enterprise (PSE) with 100% ownership of GoI as on , having its headquarters at Visakhapatnam is the corporate entity of Visakhapatnam Steel Plant (VSP), India s first shore based integrated steel plant located at Visakhapatnam (single location), with a capacity of 3 Mtpa, currently commissioning and stabilizing its 6.3Mtpa facilities and has started production from its 6.3 Mt facilities during the year A pioneer in steel industry in adoption of system standards, VSP is accredited for all the three system standards i.e. ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 and is the first Indian steel plant to be certified with Capability Maturity Model Integrated (CMMI) Level 3 for its implementation of IT systems and is also the first PSE to be certified for ISO for Energy Management System.RINL is the first 5S certified PSE in the Steel Industry to achieve the Plant level certification in 5S - Work Place Management System during VSP has adopted the BF-BOF route for steel-making, the most common steel making process for an integrated steel plant. Adoption of green technologies for steel production at every stage of operation has been a major source of competitive advantage to the Company in the area of operational efficiency. 7 8

7 Major Operations RINL has its integrated steel plant located in Visakhapatnam, India. Iron ore is sourced through 100% tie-up with National Mineral Development Corporation (NMDC) from Bailadilla mines in Chhattisgarh State. The Company was allocated iron ore mines in Bhilwara, Rajasthan. The company has no captive linkage for coking coal which is sourced from international markets - mainly Australia.RINL has captive mines for minor raw materials like Limestone, Dolomite and Manganese Ore in the State of Andhra Pradesh at Jaggayapeta, Madharam and Garbham respectively. RINL has a subsidiary- Eastern Investment Ltd. which has mainly two mining companies - OMDC for iron ore and BSLC for limestone and dolomite. Also MoUs are forged with Indian Railways for setting up Forged Wheel Plant and the Axle Plant. This initiative would help RINL in widening its geographical spread and diversify product portfolio with assured off-take at 7.3 Mt stage. In the 6.3 Mtpa expansion phase, latest technologies are being adopted which will further strengthen the product portfolio with entry into high end value added steels & will also help in maintaining the competitive advantage gained through operational efficiency. 9 10

8 Market Served RINL, with its exclusive product mix of longs is the largest producer of long products in the country with a market share of 7.5 % in The principal products of RINL include rounds, structurals, bars, wire rods, blooms, billets & pig iron, and the company also markets the resulting by-products like coal chemicals (Ammonium Sulphate, Benzol products etc.) and slag. Initially, the design capability of the plant was limited to mild steel products, but sensing the growing opportunity in value added steel segment, innovative process improvements have been carried out over-time and there is a constant thrust on new product development and production of value added steel products as a differentiation strategy against secondary steel makers. RINL is a registered vendor for supply of special steel products to various customers like DNV for ship building, Meritor Troy-USA, Tata Motors and Caterpillar in Automobile sector and Indian Railways for Elastic Rail Clips.In , RINL products were certified by IBR for Boiler applications. A network of 23 branch offices, 22 stockyards and 5 CSAs cater to the delivery requirements across the country, which is further complemented by the mechanism of DLDS and RDS to ensure availability of quality steel in rural areas at affordable prices. Retailers provide an efficient channel to ensure the availability of RINL products at various points of consumption that cannot be directly accessed by the company

9 Major changes during the reporting period Scope and Reporting Parameters Sustainable Development has always been an integral part of the Company s strategy since the project conceptualization stage in 1980s. This is accentuated by the fact that RINL pioneered in adoption of green technologies in various stages of steel production. The report highlights the efforts of the Company in integrating sustainability with business strategy. This is the third Sustainability Report being published by RINL covering the period 1 st Apr 2013 to 31 st Mar 2014 in line with GRI Guidelines 3.1 and compiled in accordance with GRI Application Level-A.Our second Sustainability Report was published in February Commissioning and execution of 6.3 Mt stage expansion Major units of Stage-1 of 6.3 Mtpa Expansion Project of RINL have been commissioned during RINL commenced production of Liquid Steel from 6.3 Mtpa Expansion in Oct 13. Production of Hot Metal from new Blast Furnace (No.3) reached rated capacity on 20 th Dec 13. Commissioning of NEDO Project NEDO (New Energy and Industrial Technology and Development Organization) project for 20.6 MW Waste Heat Recovery System on Sinter Straight-Line Cooler of Sinter Machines 1 & 2, first of its kind in India, was made ready for synchronization in March Modernization - Completion of Cat-1 capital repair of BF-1 With robust cooling system with copper staves and new design refractory, inner volume of the furnace has been increased to 3800 m 3 and thus enhancing production capacity to 2.5 Mtpa. Up-gradation of the furnace with state of art technology in top charging, cast house, adoption of level-2 automation etc. help in reducing the fuel rate and attaining higher levels of productivity Business Diversification - Setting up Forged Wheel Plant A specialized unit catering to the need of special grade wheels, 1, 00,000 wheels per annum, for High Speed Trains of Indian Railways (Biggest of its kind in India). During the current reporting period, major initiatives towards sustainable development included: NEDO Project for 20.6 MW Waste Heat Recovery System at Sinter plant Completion of Cat-1 capital repair of BF-1 Obtaining host country approval for 2 CDM projects Development of online reporting system - ENVISION to report various environmental aspects Plantation of trees under project Green Visakha A Core Committee with senior level executives worked on the development of the Sustainability Report. The report focuses on the Company s practices and outcomes which are important for sustainable results for the Company and perceived as important by the stakeholders.the initiatives and indicators reported are prioritized by the Core Committee, based on significance of economic, environmental,and social impacts, and their importance for stakeholder s assessment and decisions, keeping in view, the Vision, Mission and Objectives of RINL. The report primarily covers the production facility at Visakhapatnam. RINL s mining operation for minor raw materials like limestone, dolomite, manganese and sand are not included as a part of this report. Our subsidiary EIL, as well as the subsidiaries of EIL - OMDC and BSLC and RINMOIL Ferro-Alloys Limited the JV Company formed by RINL with M/s Manganese Ore India Limited (MOIL) which is yet to commence commercial production, have also not been included in the report. Data presented in the report is based on various reporting standards / methodologies such as, financial indicators comply with Indian Accounting Standards, energy and CO 2 calculations as per WSA methodology, various environmental indicators are based on measurements assured by calibration as per relevant Indian Standards, perception measures captured through employee and customer surveys, etc. M/s CII-ITC Centre of Excellence for Sustainable Development have been rendering the required support and provided training to RINL executives in Sustainable development aspects. In order to enhance the confidence levels of stakeholders on reliability and materiality of the reported information, CII-ITC Centre of Excellence for Sustainable Development provided necessary support and guidance for bringing out this report. Clarifications on the report, if any, may be sought from: Ms.Anita Idiculla, GM (Corporate Strategic Management) Visakhapatnam Steel Plant, RINL, Visakhapatnam Phone: , anita.csm@vizagsteel.com 13 14

10 Awards and Recognitions during the reporting period Excellence of RINL s performance during the year got recognized by leading National and International institutions

11 Corporate Governance RINL developed a well-defined corporate structure to ensure transparency, disclosures and reporting that conforms fully with laws, regulations, guidelines, etc. and to promote ethical conduct throughout the organization. Major strategic issues that were taken up by the Board for reviews and improvements during the reporting period included execution of the 6.3 Mtpa expansion project, technological up-gradation projects and other modernization programmes, issues related to raw material security, IPO and options for product diversification etc. The Board level Committees, Sub Committees chaired by CMD/ Functional Directors/ Independent Directors addressing economic, social and environmental issues of the company are given below: Corporate Governance structure at RINL is based on the guidelines issued by the Department of Public Enterprises (DPE), Govt. of India on Corporate Governance. CMD is the Chairman of the Board comprising of Functional Directors, nominee Directors of GoI and Independent Directors. The Vision, Mission and Values of the Company are being revisited in the company as part of Corporate Plan Vision 2025 in view of the change in external scenario and expansion / diversification plan. Code of Business Conduct: Board members and senior management personnel of RINL are required to submit formal consent for complying with the guidelines for Code of Business Conduct and Ethics on assumption of charge and also on annual basis. There is no incidence of non-compliance by the company; penalties or strictures imposed on the company by any statutory body, on any matter during the reporting period. Selection procedure: Selection of Chairman-cum-Managing Director and Functional Directors is done by Public Enterprise Selection Board (PESB) through the selection process laid down by the Government of India. Appointment is upon approval by the Appointments Committee of the Cabinet (ACC) of Government of India. Their appointment is for a period of five years or till the age of superannuation, whichever is earlier. Appointment of Independent Directors is made by ACC based on the selection by the Search Committee of Department of Public Enterprises (DPE). Independent Directors are drawn from the eminent professionals having distinguished experience in industry and public service to facilitate independent and rational decisionmaking by the Board. There are Eight Independent Directors in the Board. Nominee Directors are appointed by the Government of India based on the recommendation of the Ministry of Steel.There were no women directors in the Board of RINL during the reporting period. No remuneration is paid to Nominee Directors and an amount of upto ` 60,000/- is paid to Independent Directors as sitting fee for each Board / Board Sub-Committee meeting

12 Target setting and performance evaluation All the relevant guidelines and policies by the Government and Performance agreement in the form of MoU is signed by the other statutory bodies are adopted and complied with - like company with Ministry of Steel on annual basis, the process for environmental norms by Andhra Pradesh Pollution Control Board which is facilitated by DPE through an independent taskforce. (APPCB), DPE guidelines for Corporate Governance, for Performance against the targets is monitored on monthly basis formulation of MoU, CSR policy, etc. In addition, the company by the CMD and the same is appraised to the Board on quarterly complies with the international management system standards basis. Performance Related Pay of executives is based on the on Quality as per ISO 9001, Environment, Health and Safety as evaluation of company performance against MoU targets. MoU per ISO and OHSAS and has also adopted ISO is designed on the Balanced Score Card framework with clearly for energy management and CMMI Level 3 for identified weightages for performance related to financials, management of IT processes. environmental and social aspects apart from covering operational and other dynamic parameters. The memberships in various industrial bodies / associations viewed as an opportunity to share their insights for the benefit of Linking compensation to company performance: Linkage of compensation of functional Directors with the performance of the company is ensured through the mechanism of Performance Related Pay (PRP). PRP is based on the level of achievement against the parameters covered in the annual MoU with Ministry of Steel. Internal Audit is a multi-disciplinary function which reports to Director (Finance) and undertakes comprehensive audit of practices across the organization including out-station offices, for compliance to the set procedures and policies. The audits are conducted by teams of experienced Chartered Accountants, Cost Accountants and Engineers. Periodicity of audits is based on volume and nature of transactions and ranges from annual Performance evaluation of Board While at present there is no formal mechanism of assessing the performance of Independent Directors, the performance of the Functional Directors is evaluated by the Administrative Ministry. the industry and widening the network for enhancing the image of the company and deriving benefits in the form of adoption of learning from the industrial bodies / associations. During the reporting period, RINL continued its patronage as a member of industrial associations like: Indian Institute of Metals, Computer Society of India, World Steel Association, Ceramic Society of India, World Steel Dynamics and Global Compact Network. Mechanism for avoidance of conflict of interest: Conflict of interest is avoided in a transparent manner, through for major/critical departments to 2-3 years for others. Findings of internal audits are appraised to the Audit Committee of the Board for guidance to strengthen internal controls. mandatory disclosure of interest by the Directors at the time of their appointment and on annual basis and also at the time of undertaking of special assignments, which is also presented to the Board, for information. There were no instances of conflict of interest or transactions having potential for conflict with company s interest, during the reporting period. The mechanism of Preventive Vigilance through Vigilance Department ensures timely studies on procedures being followed in procurement, sales and award of contracts of all departments including expansion area to bring in systemic improvements. The effectiveness of implementation of Integrity Precautionary approach: There are comprehensive mechanisms to handle risks on proactive basis in the company which are elaborated below: Pact (IP) is also monitored and extent of implementation achieved during was 93 % of total value of tenders floated. Implementation of Enterprise Risk Management (ERM) in the Company was initiated in 2009 for developing a structured mechanism as a proactive precautionary approach for mitigating risks across the organization. During , specialized Training/ Risk Identification and profiling workshops were held in association with external consultants for the key personnel in the areas of procurement, sales, logistic and projects. The robust process of Sustainability Planning exercise addresses key issues through 5-year Roll-on Plans and Annual Business Plans followed by comprehensive review of the progress on quarterly basis. This helps in identifying the gaps and tracking of emerging threats in the dynamic business environment for formulation of corrective actions and mitigation strategies

13 Stakeholder engagement mechanisms with key concerns and outcomes during the reporting period: Various mechanisms / forums have been designed over a period of time to ensure meaningful engagement with stakeholders for understanding and managing their expectations. The learning from such engagement is helpful in devising related strategies for balanced outcome for the company and the stakeholders.details of stakeholder engagement with focus on performance are shown in the adjacent table. During , a seven point communication strategy for stakeholders was developed with the help of CII-ITC Centre of Excellence for Sustainable Development. 1. Shareholder Sustainable performance Annual General Meeting. Excellent MOU rating. (GoI) Commissioning of major expansion units Capacity expansion Faster decision making Raw Material security Annual MoU meeting. Quarterly Board meetings. Quarterly Performance Review by MoS. Quarterly review of expansion and other major projects. Planned interventions / continuous follow up with related Government Agencies. Overall Ministry coordination for any PMO / VIP references. 2. Customers Availability Quality Service norms Cross Functional Teams' visit to customer's premises. Customers meet. In Customer Satisfaction Survey , RINL achieved a satisfaction index Pricing Independent External Monitor (IEM) of against 80.8 of previous year Flexibility in payment reviews. Customer Satisfaction Survey. Complaint handling. Annual Partnership Summit. 3. Suppliers Timely payments Assured business Transparent procedures Vendor development Bimonthly review with SSI representative by ED(MM) Annual evaluation and review of suppliers by Vendor Development Cell (VDC). Biannual National Level Vendor Development Program (NVDP) by VDC. Biannual State Level Vendor Development Program (SVDP) by VDC. Annual Plant Level Committee meeting with Commissioner of Industries to review issues related to local MSEs, chaired by CMD Quarterly reviews of Independent External Monitor (IEM). Quarterly Empowered Joint Committee (EJC) meetings. Quarterly and monthly pricing mechanism for Imported Coking Coal. Sustained Business with MSMEs. LTAs for iron ore and coking coal to ensure additional requirement in view of commissioning of expansion units 4. Employees Health & Safety Remuneration Welfare amenities CMD online. Samalochana- held quarterly by all departments. Rated amongst the"india's Best Companies to Work for 2013" - based on study Inspiring work culture Monthly safety meetings. conducted by the Great Place Departmental co-ordination meetings. to Work Institute Inc. and The Economic Times. Other participative fora. Employee Satisfaction Survey Communities Pollution Control Community development Health Livelihood Education Interaction with government officials, parliamentary/legislative committees, local bodies/ municipalities. Meeting with Statutory bodies, NGO groups etc. Implementation of projects pertaining to Zero Discharge Scheme. Alignment of CSR initiative with DPE guidelines. Implementation of various CSR projects. 22

14 During , execution delays in many infrastructure and construction projects have translated to lower demand for steel and slowdown in economic growth. This in turn has led to sluggish volume growth for major steel manufacturers. As RINL products find its application in construction and manufacturing, the economic slowdown of these sectors have heavily impacted the sales of our products. The growth in apparent consumption of long products and bars & rods in the country has declined to 3.2% and 2.1% respectively during (Fig. EC-a)

15 During , competition in the Bars & Rods market increased due to higher production in this category from other major competitors without commensurate increase in consumption. Despite low growth in consumption of Bars and Rods in long products category, RINL achieved a growth of 8% and 25% over in Sales Volume of Saleable steel products and exports. The initiatives such as optimization of coal blend, maximization of captive power generation, prudent fund management, improvement in techno-economic parameters amongst many other initiatives helped the company in minimizing the adverse impact of sluggish demand conditions. The Company focused on exports to leverage its port based location and to start with and completed all formalities during the reporting period for opening of IMO at Colombo, Sri Lanka Saleable steel sales grew by 8% in volume. Sales value of export grew by 25% Improvement over last year s Customer Satisfaction Index Economic Value Generation and Distribution RINL earned Profit After Tax (PAT) of ` 366 Crs for the FY against ` 353 Crs of previous year. Lower growth in consumption of steel lead to lower sales realisation which in turn offset the advantage of lower raw material prices during the year. A Turnover of ` 13,489 Crs., was achieved during Despite a sluggish market, (Fig. EC-1 (i)) Company ensured high share of value added steels (Fig. EC-1 (ii)) and exports during the year (Fig.EC-1 (iii)). Also, 6% increase in production of value added steels and 4% growth in saleable steel production ensured regaining the leadership position of RINL in the wire rod category with product-mix change in line with market demand. RINL was able to register increase of 8.9% y-o-y in operating margin rate despite negative trend for operating margins in the industry due to the various economic conditions hampering growth. (Fig. EC-1 (iv)) However, the real value that RINL as a PSE generates (Fig. EC-2) is through its contribution to exchequer, community investments, creating sustainable business for the up-stream supply chain, attractive value proposition for the employees and supply of quality products to the customers. The company has contributed an amount of ` Cr. till to the exchequer (Fig. EC-3). Fig.EC-2: Economic value generation and distribution ( ` Cr) Direct Economic value Generated Revenues a Net Sales b Revenue from Financial investments c Sale of assets Economic Value Distributed a Operating Expenditure (Raw Material cost, Spares, Power & Fuel, R&M, other exp.) b Employees' wages & benefits c Payment to providers of fund (Dividend+ Interest) d Payment to government (Income Tax, Wealth Tax &Excise Duty) e Community Investments Economic Value Retained Fig.EC-3: Contribution to exchequer ( ` Cr) Year Central Govt. State Govt. Gross Total Completion of commissioning activities and ramp up of production from new units of 6.3 Mtpa expansion project will drive RINL s growth till , when its 7.3 Mtpa stage will come on stream coupled with modernization of existing units. In the course of expansion and modernization projects, the competitive advantage of operational efficiency of the plant will receive a huge boost through adoption of latest technologies. Also, the expansion facilities will have the capability to produce 100% value added steel products. The company has not availed any financial assistance from GoI for its operations and growth initiatives during the reporting period

16 Implication of climate change The Company has introduced an Employees Family Benefit Scheme as a special welfare measure for the employees. Opportunity Government of India as a policy instrument towards meeting the objectives of National Mission for Enhanced Energy Efficiency (NMEE) - which is a key component of National Action Plan on Climate Change (NAPCC) - has introduced an Energy Efficiency Trading Scheme (EETS) called Perform Achieve Trade (PAT). Iron & Steel industry is one among the energy intensive industries identified in the country and so steel companies would be able to earn and trade Energy Saving Certificates for energy efficient performance. As part of modernization and expansion, RINL has taken up several projects having potential for registration under Clean Development Mechanism (CDM) to reduce Green House Gas (GHG) emissions by about 1.2 million tons annually. A total of 15 projects having the potential for registration under CDM are being implemented. Out of these 15 projects, Host Country Approval (HCA) has been obtained for 2 projects in taking the total number of CDM projectswith HCA to 13 projects. Risks Market mechanism for energy and carbon trading will drive incorporation of energy efficient technologies, which would call for capital investment. Also, failing to meet the energy targets as part of PAT scheme would attract penalties. Emergence of various policy guidelines to prevent induced change in natural resources or mitigate the risk of climate change will also have impact on sourcing options for major raw materials for steel making and Company may have to invest on emerging and alternate technologies for more efficient use of natural resources, at some point of time in its future expansion plans. In the last decade, there have been instances of deficit rainfall in the catchment areas of Yeleru reservoir, the source of water for Visakhapatnam Steel Plant, causing alarming decline in inflow of water to the plant. As a risk mitigating action, RINL had taken up this issue with the State Government and APIIDC and developed a scheme for pumping water from Godavari River to Yeleru reservoir in the year In view of the commissioning of various expansion units and increase in demand for availability of water, various conservative measures have since been taken to improve efficiency of water usage in the plant Employee benefits & welfare measures In addition to statutory measures for employee benefit and welfare, RINL has innovatively designed welfare interventions to demonstrate people care and foster strong employee relations in the long run. Consolidated list of statutory and other welfare and benefit schemes deployed in the company are brought out in Fig. LA-7. Contributory Provident Fund is 12% of the wage of the employees and the fund is managed by a Trust as per Section- 17 of the Employees Provident Fund and Miscellaneous Provisions Act The Employees Pension Scheme 1995 introduced by the Government of India has also been implemented. Employees are paid Gratuity as per the Payment of Gratuity Act 1972 and as amended from time to time. Over and above the provisions of the Act, Gratuity is also paid in case of death of an employee before the qualifying service of five years shown at Fig. EC As per this scheme, monetary benefit (last Basic + DA) is provided to an employee on cessation of his employment on account of permanent total disablement, permanent medical unfitness and to his nominee, in case of his death while in service of the Company. For this, the employee/nominee has to deposit an amount equivalent to Notional Provident Fund and Gratuity. 2. In case of death/permanent total disablement arising out of & in course of employment while on duty or death/ permanent total disablement arising out of accidents while coming to duty or going back from duty within one hour before or after the end of the shift, the employee/ dependents of such employee will have the following options: a. One of the dependents may opt for employment & he/she may be considered for regular employment to any of the posts mentioned in the scheme (or) b. The dependent may opt for monthly payment equivalent to last pay (Basic + DA) without being required to deposit with the Company the amount equivalent to Notional PF & Gratuity (or) c. The dependent may opt for a lump sum one time amount equivalent to (b) above at a discount rate of 20% per annum without being required to deposit the amount equivalent to Notional PF & Gratuity with the Company. An amount of ` 1751 Cr. was spent during on Employee benefits which includes salaries, PF and staff welfare expenses. Standard entry level wages Basic pay for entry level at lowest grade for non-executive and executive of full time employees, irrespective of gender, is ` 8,630 per month and ` 16,400 per month respectively. Since the entry level wages are set and benchmarked by the Government of India, we are at par with all the set norms and regulations. Entry level wages of contract workers is shown in Fig. EC-5. Fig. EC-5: Entry level wages of contract workers ( ` ) Skill level Minimum wage stipulation (as on ) Additional payment at RINL Grand Total Basic Variable DA Total Adhoc Special Misc. Allowance Unskilled Semi-Skilled Skilled Encouragement to local Industries With a view to develope the general economy of the region, local Micro and Small Enterprises are encouraged for both upstream side and downstream side. As a part of support for development and for larger involvement of Local Micro Small Industries in VSP purchases, the following Purchase Preference Policy is being followed. i.e. If there are a minimum of five or more local manufacturers (MSEs) available for any item / class of items and the tender value is ` Lakhs, tenders are limited to such suppliers. If available local manufacturers (MSEs) are less than five for any item / class of items and in the tenders where local MSEs have to compete with outstation firms, purchase preference is being given to technically and commercially acceptable Local MSE, if their offer is within 15% above L1 price and upon their matching with L1 price. 27 Also, their technological capabilities are assessed regularly and technical support is extended by VSP. 28

17 Efforts on encouraging local MSMEs, has resulted in substantial increase in business with MSMEs which contributes in development of local economy as well. Trend of supplies by local MSMEs is shown at Fig. EC-6. Performance of local MSMEs was adversely impacted during due to acute shortage of power in AP. Continuous efforts are made to widen the vendor base for various items and 150 Vendors were enlisted during the year Payment to MSMEs is done on fast track so that they can manage their working capital requirements easily. 29 Local hiring Being a PSE, RINL complies with the Hon ble Supreme Court directives for recruitment on all India basis for full time employees. However, a significant percentage of employees belong to the state of Andhra Pradesh due to their own preference. Contract workforce comprises largely of people from surrounding areas of Visakhapatnam. As an equal opportunity employer, RINL follows GoI norms in recruitment through reservation to SC, ST, Ex-Service men and PWD categories (refer page 23 of Annual Report of ). Investment on community infrastructure RINL aligns its Corporate Social Responsibility initiatives with DPE s guidelines on Corporate Social Responsibility for Central Public Sector Enterprises which were first issued in April 2010 and have been followed by subsequent amendments. CSR activities are planned, based on identified community needs and the expenditure is accordingly committed. Expenditure on CSR activities is given at Fig. EC-7, which is well above the minimum norm of 0.5% envisaged by DPE guidelines. Unspent amount earmarked for CSR activities for a specific year, if any, is carried forward to a non-lapsable account, so as to continue the thrust on such projects in the following years. Fig. EC-7: Expenditure on CSR Activities CSR expenditure ( ` Cr) PAT ( ` Cr) CSR expenditure as % of PAT As mentioned earlier, RINL have been progressively involved in the development of communities by providing them with required assistance including financial support for infrastructure development. RINL have launched into various projects for the same purpose over the reporting period. We are providing: Financial assistance for development of infrastructure for establishing Multi Storied Hospital complex and providing additional facilities / renovation works at the mortuary in King George Hospital, Visakhapatnam A solar power system to St. Joseph s Home for the aged, Visakhapatnam, under project Surya School commodities and infrastructural requirements to 6 schools. Installation services of solar powered street lights (100 nos) and refurbishment of roads Infrastructure for Industrial Training Institute (ITI) for developing the skills of the youth within the communities 30

18 Indirect economic impact of operations RINL s operations at Visakhapatnam have created a multiplying effect on local economy and related development. Expansion of existing facilities at Visakhapatnam has also given a fillip to the employment levels in construction activities. This coupled with outsourcing of non-core activities in production and logistics provides employment to about 22,000 people in the form of contract workers, who are also trained on various skills based on requirement and safety aspects. RINL also supports the business of Micro, Small and Medium Enterprises (MSMEs) by way of supply of steel through SSIC and NSIC as per the distribution policy of Ministry of Steel (MoS). Supply to MSMEs by RINL is given in Fig. EC-8. We are participating in the ambitious Green Visakha plantation programme, which has targeted to plant 40 lakh trees in Visakhapatnam in 5 years, by involving local industries. RINL, under this programme has planned to plant 5 lakh trees over 5 years, out of which it has planted 75,000 trees in the village of Parwada during the reporting period taking the total to 1.10 lakh trees. In order to promote usage of quality steel at affordable prices in rural areas, the scheme of District Level Dealerships (DLDs) was further extended to Panchayat level villages through the introduction of Rural Dealership Scheme (RDS). Significant indirect economic impact on conservation of natural resources and on cost of production due to environmental measures are: 31 32

19 At RINL, environment protection has always been integrated with the Company strategy since inception. An initial investment of ` 468 Cr was made on environment protection systems in the existing units which was 5.5% of the total project cost and around ` 2,002 Cr was spent on various energy and environmental projects over the past decade.

20 Green Technologies Harnessing green technologies in production processes has been a major driver for operational efficiency and profitability right from inception through higher productivity and yields, efficient use of materials, waste utilization and recycling. Some of the environment friendly technologies adopted are shown at Fig. EN-1: The by-product gases such as Coke Oven gas, Blast Furnace gas and LD gas are used as fuel in various processes, thus conserving significant quantity of natural resources. Trend of recovery of by product gases in various processes that are used as fuel gases in the plant are given below. (Fig. EN-2 (i), (ii) & (iii)) Fig EN-1: Green technologies ( Existing ) Unit / process Environmental Impact COKE OVEN: Coke Dry Cooling Plant (CDQ) BLAST FURNACES: Bell-less / belt conveyor charging and Top recovery turbine (TRT) STEEL MELT SHOP: Recovery of LD gas ROLLING MILLS Evaporative cooling systems & Waste heat recovery from furnace Elimination of fugitive dust emissions, discharges & toxic gaseous pollutants during cooling of red hot coke. Recovery of waste heat from the red hot coke for generation of power (2 X 7.5 MW and 1 X 14 MW) and saturated steam (2.5 ata, 7 ata and 13 ata) for process use, resulting in I. Reduction in CO 2 emission per year: 6,89,586 tons II. Reduction in coal use per year: 4,08,668 tons III. Reduction in SO 2 emission per year: 2917 tons Elimination of fugitive dust emission during charging of raw materials, i.e., coke, sinter, iron ore etc., into BF resulting in better work zone environment Generation of power in gas expansion turbines (2 X 12 MW) from high pressure gas at BF top, resulting in I. Reduction in CO 2 emission per year: 1,27,152 tons II. Reduction in coal use per year: tons III. Reduction in SO 2 emission per year: 518 tons Utilization of LD gas as fuel by recovery of waste gases in converters, resulting in I. Reduction in CO 2 emission per year: 3,47,060 tons II. Reduction in coal use per year: 2,05,677 tons III. Reduction in SO 2 emission per year: 1,414 tons Generation of process steam (13 ata) by recovery of heat from the skids in reheating furnaces in LMMM & MMSM, resulting in I. Reduction in CO 2 emission per year: 72,814 tons II. Reduction in coal use per year: 43,152 tons III. Reduction in SO 2 emission per year: 501 tons RINL s performance with respect to recovery of CO gas in coke making process, BF gas recovery in iron making process and LD gas recovery in steel making process are among the best in the world. The LD gas Recovery in was low as the job of seal repair in LD gas holder was undertaken from Aug 12 to Jan 13. Energy Management Various energy conservation measures are identified during the Sustainability Planning exercise for implementation by concerned department. Centrally, Energy Management Department with close coordination with various process owners in manufacturing ensures sufficient thrust on improving energy efficiency. Energy audits and accounting, regular Management Reviews of energy generation and utilization drive the organization towards effective energy management, which has ensured consistent performance at low levels of specific energy consumption and CO 2 emissions.(fig.en-3 (i) & (ii)). Other Green technologies being adopted Waste heat recovery at SP TRT at BF-3 New Power Plant 2 X 60 MW 20.6 MW power generation 14 MW power generation Power generation from waste gases Other energy saving and waste heat utilization measures implemented at RINL are 100% continuous casting of liquid steel into blooms, recuperators in the rolling mill furnaces for preheating the combustion air and pre-heaters & contact coolers in Calcining & Refractory Material Plant to pre-heat the air and feed material

21 The Green House Gasses Emissions under Scope 1, Scope 2 and Scope 3 are , , Tonnes of CO 2 respectively during the reporting period ( ) and the initiatives taken to reduce GHG emissions are: Installation of Pulverized coal injection in Blast Furnace 1 Installing Energy Conservation facilities in expansion such as Pulverized coal injection in BF 3 Commissioning and stabilization of 14 MW TRT of BF 3 Commissioning and stabilization of Waste Heat Recovery system in stoves of BF-3 for preheating of fuel gas for stoves heating. This system will reduce flue gas loss to atmosphere by recovering waste heat and preheats combustion air and fuel gas To reduce the heat consumption in Sinter Plant No 1(M/C 1&2) ignition furnaces by installing energy efficient roof burners in place of side burners during revamping. Installation of 120 MW power plant using excess Blast furnace gas available in the plant RINL has about 15 energy auditors certified by Bureau of Energy Efficiency in addition to more than 150 engineers trained by National Productivity Council. Teams of these engineers work under the guidance of certified energy auditors with focus on energy intensive units such as reheating furnaces, boilers, fan system, sinter machine etc. Recommendations of audit teams are implemented and improvements are continuously monitored. Various projects taken up to improve energy efficiency during are shown at Fig. EN-4. The details of direct and indirect energy consumption are given at Fig.EN-5. Fig.EN-5: Direct / Indirect energy consumption by primary source Unit Qty Gcal Qty Gcal Qty Gcal Electricity: a) Purchased (Net import from APTRANSCO) MWH b) Gross exported MWH c)imported MWH d) Own generation -Through Steam Turbine/ Generator MWH Through Back pressure Turbine Station MWH Through Gas ExpansionTurbine Station MWH Coal consumption Boiler Coal (Wet)* t Coking Coal (Wet)* t Furnace oil consumption * Kl HSD Consumption * Kl BF Coke purchased t 0 0 Coke breeze purchased t

22 Raw Materials RINL recognizes the concern of the depleting raw material sources and is committed to optimum utilization of raw materials. Also, high cost of input materials in view of lack of captive raw material mines for the company makes efficient usage of raw materials a key business imperative. Various initiatives are taken up for maximizing yields and recycling of metallurgical wastes to minimize consumption of raw materials and operate consistently at low levels of specific raw material consumption (Fig EN-6). Quantity of major raw materials used in steel making is available at page No.92 in the Annual report Efforts towards usage of metallurgical waste to replace primary raw material to the extent possible in sinter making is evident from Fig- EN-7. Steel products are environmental friendly and do not pose any health or safety hazard during their use and are completely recyclable. RINL strives to produce products which are known for their quality and also to reduce wastage for its end users as brought out at Fig. PR-2. Focus is also on reducing the adverse impact on environment by improving the efficiency of operations and energy conservation. Water management Visakhapatnam Steel Plant meets its water requirements from Yeleru reservoir through a 153 KM long canal. The canal caters to agricultural needs, apart from industrial water requirement of industries and part drinking water needs of area under Greater Visakhapatnam Municipal Corporation (GVMC). Raw water is received into Kanithi Balancing Reservoir (KBR) which was originally designed for storage of water for 45 days requirement. With reduced water consumption through water conservation measures, the present storage volume is sufficient to meet 90 days requirement of the plant. Water consumption for the last three years has been given below in Fig. EN-8. Year Fig.EN-8: Water consumption Inflow in Kilo Litres Water Consumption in Kilo Litres Yeleru Other Total Plant Township KBR losses Construction water sources Total Nil Nil Nil

23 The water consumption of RINL from the main source is 6% of the capacity of the main reservoir. During short duration crisis, the plant requirement is met through the internal storage without affecting the communities around by not drawing water from the reservoir. Water conservation is one of the key areas of integrated water management approach and is a part of functions in RINL right from the start of the plant operations. RINL adopted three pronged strategy for water conservation i.e. Reduction/ elimination of wastages in recirculation water systems and increasing cycles of concentration ( COC), Reduction in F&D water consumption and Reclaiming waste water or water meant to be discharged to drains. Rain water Harvesting Recirculation System: Cooling water / process water requirements are met with individual recirculation systems. The quantity of recirculation system is as high as 1.8 lakhs Cu M / hour. Clear and contaminated water recirculation systems are under special chemical treatment for maintaining water quality and high cycles of concentrations (COC) upto 4.0. % recirculation water Fig.EN-9: % Recirculation water Further, water saving through various Zero water discharge schemes are as indicated below: Unit of Zero Water savings during discharge scheme (kilo Liters) Balacheruvu waste water treatment plant Appikonda Waste water treatment plant Ultra Filtration Plant With various conservation measures listed at Fig. EN-10 the Specific water consumption in RINL is maintained at low level as indicated in Fig. EN-11. Fig.EN-10: Water conservation measures Water Conserved Special chemical treatment for recirculation water covering 11 areas in the plant, resulting in improvement in COC from 2-3 to 4-5. Treatment of oil and scale contaminated water pertaining to SMS and Mills Usage of bed drainage water from Coke oven, BF, RMHP etc Reclamation of waste / drain water 1500cum/hr 250 cum/hr 50 cum/hr 600 cum/hr Fig. EN-12: Rain Water Harvesting Percolation pits 94 Nos Earthen Check-dams 01 No Masonry Check-dams 09 Nos Recharge Wells 18 Nos Various rain water harvesting measures have been implemented in the Company, details of which are shown at Fig.EN-12. Additionally, 260 more percolation pits are being provided in the expansion area with a potential to save 5,520 m 3 of water per year. Also, two Rain water harvesting ponds of size 400 X 100 m with pumping facility to storage reservoir of KBR to save Kilo Litres of water are in progress

24 Afforestation RINL s philosophy of managing operations in harmony with nature has its roots in the motto One tree for every ton of steel capacity, which has been followed meticulously since inception. Out of the total land bank of 8100 Ha, 3600 Ha has been identified for development of Green belt and afforestation. Cumulative trend of tree plantation is shown at Fig EN-13. As reported in the last Sustainability Report,we have replaced all chilling, refrigerating and air condition units that use ODS with non-ods using equipment. All Halon based fire-fighting systems replaced with Inergen based fire-fighting systems, costing ` 6.14 Crores and resulting in 3885 kgs of Halon being phased out systematically. Afforestation efforts by RINL not only help in partly compensating GHG emitted during plant operations but also, in minimizing the adverse impact on ecosystems, landscapes and species in the surroundings. Man-made forests in and around the plant area and other areas earmarked for the purpose have also helped in creating a conducive environment for local flora and fauna including diverse micro-organisms to thrive. Proper plantation, regular follow-up, care and adherence to maintenance practices resulted in achieving more than 70% survival rate. RINL is not adjacent to any protected areas and its operations do not have any adverse effect on the bio-diversity and nohabitats are protected or restored at present. None of our activities, products or services have any significant impact on the biodiversity of the surrounding region. Hence, no species listed in IUCN red list and national conservation list are affected by operations of RINL. We have always created mitigation plans for all our activities which contribute to pollution, thereby ensuring that our operations have a minimal environmental footprint. Environmental Monitoring RINL has installed state- of- the- art monitoring systems for continuous monitoring of Ambient Air Quality (4 nos.) and Continuous Stack Emissions Monitoring Systems (20 nos.) and is the first integrated steel plant in India to go for such extensive on-line environmental monitoring systems. These stations have already been uplinked to APPCB website Environmental Monitoring is being extensively carried out at RINL with multifarious intent to not only assess environmental status within the plant, but also to identify other possible impacts to the surrounding areas. Salient features of measuring the environmental indicators and minimizing their impact are as shown in Fig. EN-14. Fig.EN-14: Salient features of monitoring mechanisms for environmental indicators Regular Bio-Assay tests are carried out, to assess impact of effluents discharge into sea, on marine life. Engaged National Institute of Oceanography to assess impact of treated effluent discharged into sea on marine life. Automated re-cycling and treatment system provided to ensure desired quality of trade effluent is discharged into channel. Sampling of ground water at 4 villages, surrounding the plant every month to assess influence of solid waste dumps on ground water. Close monitoring of hazardous waste disposal RINL is continuously monitoring the impact of operations on environment and ensures that environmental parameters achieved are much better than the norms and the trends of environmental parameters are given at Fig. EN-15 & EN

25 Fig.EN-15.: Ambient air quality (Microgram / m 3) Location Parameter APPCB Norm RSPM Main Gate SO NOX Fig.EN-16 : Stack emissions (Milligram / Nm3) Location Parameter Norm Norm w.e.f CO Battery 1 to 3 SPM Blast Furnace SPM 115 * # 55.4# Sinter Plant SPM 115* # 83.4# SMS SPM 115* * Norm changed from 115 to 50 - the process of upgradation of related APC eqpt.is under progress #: Capital Repair Projects have been taken up for revamping / rebuilding of ESP's to reduce the stack emission below 50 mg/ Nm3 at a cost of ` Cr Fig.EN-17: Emissions Description Unit Specific SPM load kg/tcs Hazardous waste recycled (%) As a result of continuous thrust on process controls and monitoring systems, there has been a reducing trend in emissions as measured through specific loads of SPM and hazardous wastes as given in Fig. EN-17. Facilities for treatment of contaminated water from plant and domestic sewage from township are shown at Fig. EN-18. Fig. EN-18: Initiatives for treatment of Contaminated Water SN System Nos Capacities Purpose 1. Mechanical Biological & effluents cu.m/hr For treatment of Coke Oven Chemical Treatment Plant effluents 2. Effluent Treatment Plant cu.m/hr For treatment of plant sewage and effluent 3. Sewage Treatment Plant (Township) cu.m/hr For treatment of township sewage 4. Waste Water Treatment Plants 8 Dust laden water from For treatment and recycling SMS (approx cu.m/hr, of sludge water generated with 6000 ppm dust content), from Coke Ovens, Sinter BF (approx cu.m/hr, with Plant, Blast Furnaces, Steel 1000 ppm dust content) Melting Shop and Rolling Mills (approx Rolling Mills cu.m/hr with 500 ppm dust content & approx cu.m/hr with 200 ppm dust content) is treated independently. At coke ovens about 300 cu.m/hr of water is treated. 5. Spillage Recycling Systems 8 - For recycling of toxic spillage at CO&CCP, TDP, BDP, BRP, ASP, CPH, NAFC, CPU, TOS 6. Ash-pond with ash handling pump houses 1 - For handling ash and recycling of water Total Trends in total effluent load (pollutants such as TSS, O&G, Phenol, Ammoniacal nitrogen) (Fig. EN-19) are reported by the industry as pollutants in discharged water per ton of crude steel (Fig. EN-20). Nitrification / de-nitrification process is being taken up in the upgraded MBC plant for further treatment of effluents. Fig.EN-19 : Effluent monitoring (Milligram / Litre) Location Parameter APPCB & CPCB Norm TSS Plant effluent O&G treatment Phenol plant outlet COD BOD Boundary wall Ammoniacal N

26 Quality of discharged water is monitored, so as to reduce its impact on surrounding environment and the Specific effluent discharge is given in Fig.EN-21. The water is treated and discharged into the sea and there is no significant impact on marine environment as per the study conducted by National Institute of Oceanography. Details of generation and utilization of solid wastes in is shown at Fig.EN-23 (i) and that of hazardous waste is shown at Fig.EN-23 (ii) Solid Waste Total generation (t/year) (a) Fig.EN-23 (i): Solid Waste Utilization Recycled or Reused (t/year) (b) Sold (t/year) (c) Utilized in construction activities %Utilization for = {{b+c)/a}*100 Dust from ESP's, DE Systems Remarks Sludge from Water Addl t of Sludge Treatment Plants recycled from prev. stock BF Slag Addl t of BF Slag utilized/sold form prev. stock LD Slag Total Solid waste utilization has been a thrust area in the plant and accordingly various initiatives were taken up to improve the same. Sinter making facility in the plant offers flexibility for agglomeration of iron ore fines with metallurgical wastes and other wastes in the plant as feedstock for iron making in the BF. Some of the practices for solid waste management in the company are highlighted at Fig. EN-22. There was no instance of significant spill while handling & storing of hazardous waste and no hazardous waste was transported during the reporting period. Fig. EN-22: Solid Waste Management Briquettes made from lime dust from CRMP is charged in SMS for steel-making. Granulated BF slag is sold to cement plants as a substitute for lime. Utilization of LD slag has been a challenge for the Company. However, all efforts are made to recycle +30 to -50mm size metallic component in SMS & BF (as a substitute for lime) and also to use it as ballast in railway tracks. The - 8mm size is recycled in sinter plant as a substitute for lime. Dust recovered through DE systems is unloaded from the hoppers into closed dumpers for recycling in sintermaking. Mills scales are recycled in sinter making process. Wet sludge from other WTPs is sun-dried and recycled in Sinter Plant. Steel scrap from different shops is charged into the LD converters. Packing of Dry lime dust in bags. Recycling Coke breeze in Sinter Plant. Usage of refractory bricks for making ramming mass and for carrying out repairs of LD converter and for relining the emergency containers in SMS. Dust from ESP's, Addl.4155 t of Sludge DE Systems recycled from prev. stock Sludge from Water Addl t of Sludge Treatment Plants recycled from prev. stock BF Slag Addl t of BF Slag utilized / sold form prev. stock LD Slag Total Dust from ESP s, Addl. 4,558 t of Dust DE Systems recycled from previous stock Sludge from Water Addl.73,671 t of Sludge Treatment Plants recycled from previous stock BF Slag Addl. 39,520 t of BF Slag utilized in the Construction activities from previous stock LD Slag Addl. 2,3,323 t of LD Slag recycled from previous stock Total

27 Description of waste Method of disposal ETP sludge (MBC & ETP) Being charged into Coke Ovenbatteries along with charge coal Fig. EN-23 (ii): Hazardous Waste Utilization Used oil / waste lub. oil / trans. oil / sludge Partly recycled after reclamation and balance sold to authorized parties Tar sludge & tank bottom sludge Acid tar from ASPP Benzol sludge from BDP Being charged into Coke Oven batteries along with charge coal Used Lead acid batteries Mixed nonferrous metal scrap Sold to authorized parties Containers of Hazardous Wastes Calcium carbide sludge Generation Recycled Sold Qty. of generation as perconsent Generation Recycled Sold Qty. of generation as per consent Generation Recycled Sold Qty. of generation as per consent In order to minimize impact on environment, RINL has taken up several projects which are under various stages of implementation as given at Fig. EN -24 Year On going projects Fig. EN -24 List of Environment Projects Implemented / under implementation Waste Heat Recovery from Sinter (NEDO project) bed coolers to generate 20.6 MW power. Revamping & up-gradation of ESPs of BF Zero water discharge scheme which saves 5 MGD water 9022 per year Dry fly ash handling, storage & delivery system for boiler , 3, 4 & 5. Revamping & up-gradation of ESPs of SP-1 and BF Provision of Dog Houses in 3 converters of SMS Rain water harvesting schemes 1304 The expenditure towards Environment Management for the last 3 years is given at Fig. EN-25: Fig. EN- 25 Environment Management Year Expenditure ( ` Crores) The Company complied with environmental norms, laws and regulations and was not implicated by way of fines and non-monetary sanctions on this account during the reporting period. Steel is completely recyclable and hence has no adverse impact on the environment. Steel products produced by RINL are compactly packaged using steel straps and the same is not reclaimed from customers. RINL has synergized the adjacent deep draft port by transportation of imported coking coal directly through conveyors into the raw material storage facility in the plant premises, which has replaced the movement of imported coking coal from Visakhapatnam Port Trust by rail. In-bound logistics are being further optimized by exploring the possibility of deploying multi cargo cape size vessels. Out-bound logistics are being optimized with transport of products in larger trucks and also regular follow up with Indian Railways for increased transport by rail (Fig. EN-26). Project Fig. EN-26: Transport of products Cost ( ` in lakhs) % of rail road ratio Qty. through rail (Mt)

28 RINL has a longstanding commitment to address the needs of the society and attaches a great deal of significance while discharging its responsibility towards improving the quality of life of the community. CSR foot print of the Company covers Environmental care, Education, Health, People care, Peripheral development, Cultural efflorescence as a responsible corporate citizen & help during natural calamities. RINL is a Life Member of United Nations Global Compact (UNGC), the largest voluntary CSR initiative in the world. Being a member, RINL publishes Communication on Progress every year and the same is uploaded on the global compact s website. Also, through various CSR projects, RINL strives to contribute for fulfilment of Millennium Development Goals. Even today RINL supports developmental and welfare activities in the four rehabilitation colonies at Aganampudi, Dibbapalem, Pedagantyada and Vadlapudi which have a combined population of around 1.5 Lakhs. These colonies were set up to rehabilitate 64 villages including hamlets that were displaced during land acquisition 3 to 4 decades back. In order to create a focused approach for CSR, RINL formulated its CSR policy in the year 2006 incorporating CSR as an important management function in the organizational structure of the Company. The policy envisages allocation of upto 2% of its distributable profits for CSR activities every year. In order to identify and implement CSR projects in different areas/domains, more than 30 specialized agencies including Govt. depts., SC/ST Welfare, Tribal Welfare, CPWD etc. are engaged. Details of activities undertaken and impact created during the reporting period are given at Fig.SI-1. RINL-CSR has signed an MOU with King George Govt. Hospital (KGH) to extend financial support for development of infrastructure by establishing Multi Storied Hospital complex in KGH Premises along with other CPSEs. The poor & needy patients of North coastal Andhra as well as neighboring states will also be benefited by this CSR initiative.

29 As a PSE, RINL is an equal opportunity employer and has contributed in generation of employment and development of human resources. The focus of HR strategy to create a vibrant work culture in the organization is driven by employee engagement through involvement, empowerment, skill development, safety, health and welfare. With ongoing expansion project, RINL banks on judiciously planned redeployment coupled with recruitment of right talent to enhance labor productivity. Employee base of RINL comprises of 34% executive and 66% nonexecutive workforce. Trend of total manpower and by break-up by gender is shown at (Fig. LA-1 & LA-2). RINL has long surpassed the designed labour productivity of 231 t/ m/y (which was an international benchmark then) and has now achieved a level of 371 t/m/y in (Fig. LA-3). Expansion to 6.3 Mtpa, with only 10% increase in manpower provides an opportunity to rationalize the man power through training and redeployment to achieve higher levels of labour productivity. Men Fig LA-2: Employee Profile by Gender as on Executive Non-Executive Total Women Total Keeping in view the expansion requirement, the focus was on infusion of fresh talent in the last 3 years (Fig. LA-4). Also details of employee separations and comparison of recruitment and turnover rates are provided at Fig LA-5 & Fig LA-6. Fig LA-4: New Recruits during FY Age Group Gender < >50 Male Female Executive Non-executive Total Separation year Fig LA-5: Separations Dismissal Resignation Superannuation Termination Grand Total Fig. LA-6: Turnover rates New Employee Hire rate 3.52 Employee Turnover Rate

30 Employee welfare Employee welfare measures are targeted to enhance employee motivation and drive long term employee relations, which has emerged as a key factor in attracting and retaining talent. RINL has gone beyond the statutory requirements and has put in place, innovative welfare schemes to address employees' immediate needs and future concerns. RINL provides a number of statutory as well as non-statutory welfare benefits to its fulltime employees as detailed below (Fig. LA-7): Participative management Employee involvement and empowerment are key elements for fostering a climate of participation, collaboration, developing mutual understanding and maintaining harmonious industrial relations. 21 Recognized Unions in the plant ensure representation of non-executives in collective bargaining. Recognized Union elected through bi-annual elections, represents the cause of nonexecutive workforce to the Management and bipartite agreements are forged on major issues. Effective date of implementation is also recorded in the agreement, so as to ensure shared understanding of the timeframe in which the changed procedure / scheme would be implemented. Unions represent 100% of the non-executive workforce in RINL. Harmonious industrial relations at RINL can be assessed from the fact that there have been no strikes / lockouts in the company during the reporting period. Statutory Welfare Fig. LA-7: Employee welfare measures Non-statutory Welfare The mechanism of participative management (Fig. LA-8) is effectively deployed to deal with various operational issues that affect the plant s performance and employee satisfaction across the organization to ensure high levels of employee engagement. Welfare amenities as per Factories Act Welfare amenities as per Mines Act Common Welfare facilities for contract labour inside plant First aid and emergency care PF & Gratuity Employee Compensation Maternity Leave Occupational Health Care Crèche facility Canteens ESI for contract labour Employee Pension Scheme Comprehensive medical facilities Educational facilities Housing facilities Conveyance allowance Festival advance LTC / LLTC Leave encashment Work dress Employee Family Benefit Scheme Group Savings Linked Insurance Scheme Group Personal Accident Insurance Scheme Life Cover Scheme (EDLI -Employees Deposited Linked Insurance-) Financial & Non-Financial Motivation Schemes Dr. B R Ambedkar Merit Recognition Scheme for Professional Stream and Physically/Mentally Challenged Stream Dr.SarvepalliRadhakrishnan Merit Cash Awards and Col C K Nayudu Sports Cash Awards Yoga for Township residents Recreation facilities like Community Welfare Centers, Clubs, Parks, etc. Promotion of sports and games Facilities like gym, libraries, swimming pools, stadium etc. in the township Soft loans for house / Interest subsidy to non-executives for house loan Soft loan for vehicle Soft loan for furniture Pre-retirement counseling Traveling expenses on superannuation Employees' Superannuation Benefit Fund Group Mediclaim Insurance Policy for retired employees Post retirement free medical facilities at company's hospitals Death Relief Scheme Employees' Cooperative Stores Employees' Thrift Society Promotion of cultural and trekking activities Long Service Award for employees who have completed 25 years of service gms Silver Medallion Farewell Memento - 10 gms Gold Coin SNo. Fig. LA-8: Management participative fora Name of the Forum Periodicity of the meeting 1 Apex Information Forum Quarterly 2 Central Safety Committee Quarterly 3 Central Welfare Committee Monthly 4 CSR Committee Bi-monthly 5 CWC Committees - 7at HQ + 2 at Mines Monthly or as and when required 6 HR information Forum Monthly 7 Marketing & Finance Information Sharing Committee Bi-monthly 8 Medical Committee Monthly 9 Mines Coordination Committee Quarterly 10 PF Trust Committee Monthly 11 Plant Level Production & Productivity Committee Quarterly 12 Project Works Committee Quarterly 13 SFCC & SFSC - 32 Committees each Monthly 14 Canteen Managing Committee As and when required 15 Superannuation Benefit Fund Trust Monthly 16 Town Development Committee Bi-monthly 17 Sports Council Bi-monthly Steel Executive Association for executive workforce represents 100% of the executives acting as a nodal agency for taking up emerging concerns with the Management

31 Safety Various safety and Occupational health related issues are settled through bipartite agreement between the recognized Union and the Management. Around 800 employees including management representatives take part in different shop floor safety committee meetings and action plans are chalked out to address specific / common problems related safety. However during the reporting period, there were no such issues from either side which required settlement through a formal agreement. Health and safety related issues like availability and usage levels of PPEs, unsafe practices, unsafe conditions, incidents, etc. are proactively taken up by Shop-floor Safety Committees (SFSC), which are chaired by respective HODs along with 5 to 7 representatives from Management side and Union representative. Safety and Occupational Health related issues / incidents are deliberated and action plans are charted and implementation is monitored. The working of SFSC provides crucial inputs for Central Safety Committee at plant level which is a statutory requirement. Implementation of OHSAS through combination of various safety management practices, maintenance practices, rigorous training and development of employees ensures a safe work culture in the organization. Safety is given utmost importance and continuous efforts are made to implement safety standards. Along with this, continuous monitoring of safety risks and other proactive measures has resulted in reduction / elimination of potential hazards. Several measures are being taken up to achieve zero accident rate. (Fig. LA-9) All efforts are made at RINL through a combination of various safety management practices, maintenance practices, rigorous training and development of employees to inculcate a safe work culture in the organization. On-site emergency plan and mock drills are conducted to test the emergency preparedness for fire, electric shock, gas leak, rescue from heights, burn injuries, etc. More than 144 nos. of fire mock drills were organized and all the deficiencies were addressed and other observations made during the drills were complied with. For further details on initiatives related to safety refer to page no. 20 of the Annual Report of the company. Occupational Health The statutory Occupational Health needs of the employees are taken care of through a well-equipped Occupational Health Center since Nov It is the first OHS unit in steel industry to receive ISO-9001, ISO and OHSAS certifications. Periodical Medical Examination (PME) of employees at OHS&RC is carried out through a process shown in Fig LA-10. Health of employees in monitored at set frequency depending on the nature of work under the Man Management Programme (MMP) and the employee records are managed online through Occupational Health Management System. RINL-OHS has completed 15 cycles of PME for workers. Various initiatives like health education and heath checkup programmes are brought out below at Fig. LA

32 Effectiveness of training programs is objectively evaluated and the outcome is used for retraining the employee and for redesigning the training programs. Execution of training plans is reviewed by TAC on quarterly basis with a view to ensure adequate resources for training, new training interventions and redesign of the training programs as required. Fig. LA -13 : Effectiveness of training programs S.No. Training evaluation Reaction Learning Behavior There has been significant thrust on lifelong learning and improvement of employability through various training programs (Fig. LA-14) which helps in upgrading employees knowledge and capabilities. These trainings are conducted through in-house programs and external training programs at reputed institutes in the country. With expansion projects progressing at brisk pace, employees were also imparted training on new technologies being adopted in the expansion projects. Fig. LA-14: Training Interactions to support Life Long Learning & Employability in SNo Program No of programs No of participants 1 Assertiveness & inter-personal skills Personal effectiveness for growth Communication & Presentation skills Health Education Employee development RINL takes various initiatives to improve and enhance the skills, capabilities & performance levels of its workforce. Training needs of the employees are identified through: Performance Appraisals Annual Training Needs Survey Training Advisory Committee reviews Training Coordinators Workshops Specific needs of the departments Performance appraisal is the mechanism through which departmental objectives are translated into mutually agreed tasks and targets for executives. These are reviewed during mid-term reviews to identify constraints in implementation and thrust areas for future. All the executives in the company have their performance appraised through objective assessment of individual s performance and identification of development plans, which are bridged through in-house and external trining. Trend of training man-days and training effectiveness is shown in Fig. LA-12 & Fig.LA-13. Fig. LA-12: Training Indicators Parameter Unit Employee trained Nos Percentage of employees trained % Training Man hours / employee Training Expenses incurred ` Crores Training Expenses incurred for Foreign Training ` Crores Foreign training Nos

33 Diversity and equal opportunity: Various measures are taken to provide a conducive working environment wherein the women employees can realize their full potential. There is a special forum for women Women in Public Sector (WIPS) - to provide an environment integrated growth of women and to enhance their effectiveness in employment. RINL does not indulge in any discrimination by gender in any walk of organizational life and compensation is based on grade and performance only. During , the maternity leave period has been enhanced from 84 days to 180 days; RINL is one of the few PSEs in the country to extend the benefit. 21 women employees availed the benefit in the reporting period and all have joined back after the leave. Also, RINL-WIPS was conferred the Jury s Special Award in recognition of the commendable work done by RINL for the development of women. SC/ST Cell in the Company ensures engagement with SC/ST Association and monitors various welfare measures for SC/ST employees and their families. Human rights The company believes in right to human dignity, social protection, right to rest and leisure which is a worker s fundamental human right and the same is ensured through compliance with Factories Act and other relevant laws in the country. As a principal employer, RINL also ensures payment of wages, which is more than the statutory minimum wages (refer Fig. EC-5) also ensures compliance with various statutory provisions for contract workers. Some of these measures include: Provision of food through subsidized canteens, washrooms, rest rooms, drinking water etc. which are meant for regular employees of the company are being extended for contract workers also. Ensuring employer s contribution of PF at the rate of 12%. Payment of bonus at the rate of 8.33% of his / her wage. Gratuity for contract workers who have put in more than 5 years of service. Compliance to Workmen s Compensation Act by depositing requisite amount with Commissioner for Workmen s Compensation in case the contractor fails to deposit the same to ensure payment of compensation within stipulated period of 30 days. Provision of ex-gratia payment of ` 5.00 Lakh in case of fatal accident to contract workers. This is in addition to the payment as per Workmen s Compensation Act. Payment of notice pay, service pay, leaves pay and bonus at the end of contract period by the contractor. Safety training to all contract workers and also on the job training as per the requirement. Usage of Personal Protective Equipment (PPEs) is stringently monitored by the Engineer I/c. In addition, RINL has taken up the issue of coverage of ESI for contract workers with ESI Corporation and Government of Andhra Pradesh. At present, it is ensured that contractors bear the expenses of medical treatment of contract workers in case of any accident. Though company ensures adherence to all applicable Acts regarding dignity of labor in the case of service contracts through various policies and monitoring of compliance by Engineer I/c, there is no mechanism in place to ensure compliance to the same in case of supply contracts. Right to collective bargaining is ensured through 21 registered trade Unions in the company that enable non-executive employees to voice their concerns. The Unions also represent the contract workers. Minimum age limit for recruitment in the company is 18 years. All contractors are regularly advised to comply with the Child Labor regulation and surprise checks are conducted by RINL to ensure compliance. No incident of engagement of child labor, any form of forced and / or compulsory labor, grievances related to violation of Human Rights was reported in the company during the reporting period. Society RINL made a study on impact of plant operation on environment and surrounding areas with the help of an expert agency and the details are: (Fig. SO-1) Fig. SO-1:Environment impact studies Study Brief conclusions of the study Remarks Rapid Environment Impact Assessment Study in 2005 by M/s M N Dastur& Co. Rapid Marine Impact Assessment Study in 2006 by National Institute of Oceanography, GoI Monitoring of chemical and biological parameters in the marine environment off Appikonda and toxicological studies of the treated effluent of VSP in 2010 by National Institute of Oceanography, GoI Ground Level Concentrations at core boundary and buffer zone of Respirable dust, Sulphur dioxides, Oxides of nitrogen much below norm. Total Environmental Attributes adjudged: 22 (Insignificant impact or no impact : 15 Beneficial impact: 3, Marginal adverse impact : 4) No impact on marine life due to discharge of effluents from VSP. No impact on marine life due to discharge of effluents from VSP off Appikonda. No objections from community members or media during the public hearing conducted at Collector office for expansion of VSP. Environmental Clearance obtained within 7 months for expansion of VSP. A two month study done for assessing impact on marine life by VSP's operations. No complaints from vigilant and active fishing communities, media or any NGOs. RINL has designed a robust mechanism for capturing environment incidents, identifying any undesirable trend and proactively initiating corrective action. Inspections are carried out regularly by Environment Management Department. If any deviations are observed, it is immediately brought to the notice of the concerned HODs and Environment incident note is raised by Environment Management Department, and the same is sent to the department concerned and also to higher Management for their information. Corrective action is monitored and deliberated upon during Environment Review Meeting, for adequacy of the measure to eliminate possibility of occurrence of similar incidents in future

34 Grievance Redressal Mechanism At RINL, there are separate channels for formal and informal grievance handling for redressal of grievance of employees. In the formal Grievance Procedure for non-executives, a workers representative is present in the Committee. Further, both executives and non-executives grievance handling systems have a fixed time frame to redress the grievances. Grievances of employees pertaining to pay, promotion, allotment of quarters etc. are resolved through informal grievance redressal system. A senior officer at the level of General Manager is designated as OSD (Public Grievances) to deal with public grievances. The details of formal grievances for the year are: Anti-corruption measures Being a public sector enterprise, RINL is committed to fostering an ethical and corruption free business environment. Guidelines issued by Central Vigilance Commission (CVC) are adhered to by timely updation of related procedures in the company. RINL has entered into a MoU with Transparency International for adopting an Integrity Pact (IP) as a tool to fight corruption by bringing in transparency in procurement processes right from pre-selection stage, bidding, contracting, and implementation till completion. Implementation of IP is monitored by Independent External Monitors (IEM) through independent reviews with suppliers, contractors and customers to ascertain and address emerging concerns and the feedback is shared with CMD on quarterly basis. The risk of corruption is mitigated through preventive vigilance activities in sensitive areas by Vigilance Department and recommendations for systemic improvements which are implemented in all related areas. Employees are also sensitized on corruption related issues through publication of in-house magazine and specific training programmes Regular training programme covering contract management and preventive vigilance is conducted for regular employees. The details of sessions conducted during the reporting period areshown in Fig.SO-2. Fig.SO-2: Vigilance trainings Training details No. of Sessions conducted No. of participants To inculcate ethics amongst the School Children for nurturing Ethics and moral values, RINL organized sessions on Ethics and Moral Values covering about 1270 school children in System improvements are also taken up in case of occurrence of incidents of corruption and suitable punitive action is initiated in cases where malicious intentions are found. RINL does not encourage any kind of political lobbying and has not made any contribution to any political party during the reporting period. There are no legal actions against RINL for any kind of anticompetitive / anti-trust or monopolistic practices and there was no instance of non-compliance with laws & regulations. Product responsibility Steel products produced by the Company are environmental friendly and do not pose any health or safety hazard during their use and are completely recyclable. Further, RINL produces products which are known for their quality and also reduces wastage for its end users through close tolerances. Bundling and automatic tying / strapping of products minimize chances of damage during transportation of products. The steel products of the company find application in construction and engineering sectors, which require strict compliance with product specifications. Stringent internal quality control mechanisms and close dimensional tolerances ensure adherence to the required product specification. In order to enhance the confidence level of the customers, product test certificates are also issued to the customers along with delivery orders. Based on the customer requirement, new products/ grades are developed through in-house R&D. the trend of new products developed is given at Fig. PR-1. Decrease in new product development during was due to the extreme sluggish condition prevailing in the manufacturing sector - the main driver for new product development

35 RINL s focus on production of steel products as per emerging market requirement that are required by society has helped in development of special steels of various grades. These steels are lighter and stronger. Moreover they are more corrosion resistant. Some of such grades are mentioned at Fig. PR-2. S.No Fig. PR-2 : In-house developed grades (some examples) Product Name Special property Beneficial impact 1 VIZAG- Higher strength over 14% reduction in steel use in similar application TMT FE 500 conventional reinforcement When applied they help reduce CO 2 emissions over bars the life cycle of the product 2 VIZAG TMT Higher strength over 19% reduction in steel use in similar application FE 550 conventional reinforcement When applied they help reduce CO 2 emissions over bars the life cycle of the product 3 VIZAG Higher resistance to corrosion Helps reduce CO 2 emissions over the life cycle of the TMT CRM over traditional steels,in product due to longevity and HS CRM industrial and marine environments 4 PC 115 Special wire for using in PC Excellent alternative to timber sleepers in railway lines Counters deforestation 5 VIZAG TLT Offers higher strength to Heavy structures for transmission lines etc can be weight ratio over traditional made with less steel mild steel When applied they help reduce CO 2 emissions over the life cycle of the structure During , RINL developed Citizen Charter to consistently provide quality products and efficient and responsive services Customer satisfaction survey for major steel plants in the country is conducted by Ministry of Steel (MoS) on annual basis which provides meaningful insights into the relative position of various companies on various attributes. RINL also gets Customer Satisfaction Survey conducted by an external agency every year which is specifically designed for customer segments of RINL. Based on the same, branch wise action plans are developed to enhance customer satisfaction levels.in Customer Satisfaction Survey , RINL achieved a satisfaction index of against 80.8 of previous year. There were no instances of non-compliance with regulations related to product and service information, marketing communications including advertising, promotion and breaches of customer privacy / loss of customer data during the year. Online Quality Complaint System provides easy access to the customers for lodging their complaints which can also be tracked online for early settlement. Learning from review of such complaints during MR meetings helped in evolving corrective and preventive actions that resulted in reduction of the quality complaints. The trend of customer complaints as a percentage of sales in the last three years is given below: Customer Complaints Year Sales vs. Complaints (%) Customer services: Customer service norms are displayed in each branch office to renderquality and prompt service to customers. Also, With a view to step up customer service, RINL has introduced services like Dial your Director (Commercial) and Customer day during that meet requirements of the Citizens with applicable legal, statutory and regulatory requirements. Branding of products meant for direct end use for construction and fabrication purpose facilitates in differentiation by the customer through ease in recognition and eliminates any scope for duplication by others. Product features are communicated to potential customers through various product brochures and also publicized through RINL website

36 GRI CONTENT INDEX GRI CONTENT INDEX GRI Description Page No. Status GRI Description Page No. Status Strategy & Analysis 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 3, Statement from the most senior decision-maker of the organization. 1.2 Description of key impacts, risks, and opportunities Procedures of the highest governance body for overseeing the organization s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 19 Organisation Profile 4.10 Processes for evaluating the highest governance body s own performance, particularly with respect to economic, environmental, and social performance Name of the organization. 2.2 Primary brands, products, and/or services. 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. 2.4 Location of organization s headquarters. 2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). 2.8 Scale of the reporting organization. 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 8 11, Explanation of whether and how the precautionary approach or principle is addressed by the organization Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting Awards received in the reporting period. 15 Economic Report Parameters Disclosure on Management Approach EC 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 14 Economic performance 3.2 Date of most recent previous report (if any). 3.3 Reporting cycle (annual, biennial, etc.) 3.4 Contact point for questions regarding the report or its contents. 3.5 Process for defining report content. 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance EC1 EC2 EC3 EC4 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. Financial implications and other risks and opportunities for the organization's activities due to climate change. Coverage of the organization's defined benefit plan obligations. Significant financial assistance received from government. Market presence State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods) Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report EC5 EC6 EC7 EC8 EC9 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. Indirect economic impacts Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. Understanding and describing significant indirect economic impacts, including the extent of impacts Table identifying the location of the Standard Disclosures in the report Policy and current practice with regard to seeking external assurance for the report. 14 Environmental Governance, Commitments, and Engagement Disclosure on Management Approach EN Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/ or non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization s performance (including social and environmental performance). 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity EN1 EN2 EN3 EN4 EN5 EN6 EN7 Materials Materials used by weight or volume. Percentage of materials used that are recycled input materials. Energy Direct energy consumption by primary energy source. Indirect energy consumption by primary source. Energy saved due to conservation and efficiency improvements. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Initiatives to reduce indirect energy consumption and reductions achieved

37 GRI CONTENT INDEX GRI CONTENT INDEX GRI Description Page No. Status GRI Description Page No. Status Water LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. 56 EN8 EN9 EN10 Total water withdrawal by source. Water sources significantly affected by withdrawal of water. Percentage and total volume of water recycled and reused LA6 LA7 Occupational health and safety Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region EN11 EN12 EN13 EN14 EN15 Biodiversity Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. Habitats protected or restored. Strategies, current actions, and future plans for managing impacts on biodiversity. Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Emissions, effluents and waste EN16 Total direct and indirect greenhouse gas emissions by weight. EN17 Other relevant indirect greenhouse gas emissions by weight. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. EN19 Emissions of ozone-depleting substances by weight. EN20 NOx, SOx, and other significant air emissions by type and weight. EN21 Total water discharge by quality and destination. EN22 Total weight of waste by type and disposal method. EN23 Total number and volume of significant spills. EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff. Products and services LA8 LA9 LA10 LA11 LA12 LA13 LA14 HR1 HR2 HR3 HR4 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Health and safety topics covered in formal agreements with trade unions. Training and education Average hours of training per year per employee by employee category. Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Percentage of employees receiving regular performance and career development reviews. Diversity and equal opportunity Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Ratio of basic salary of men to women by employee category. Disclosure on Management Approach HR Social: Human Rights Investment and procurement practices Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening. Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. Non-discrimination Total number of incidents of discrimination and actions taken. Freedom of association and collective bargaining EN26 EN27 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Percentage of products sold and their packaging materials that are reclaimed by category HR5 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights. Child Labor 61 EN28 EN29 Compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Transport Significant environmental impacts of transporting products and other goods and materials used for the organization's operations, and transporting members of the workforce HR6 HR7 HR8 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor. Prevention of forced and compulsory labor Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor. Security practices Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations EN30 Social Overall Total environmental protection expenditures and investments by type. Disclosure on Management Approach LA Social: Labor Practices and Decent Work Employment 50 HR9 HR10 HR11 Indigenous rights Total number of incidents of violations involving rights of indigenous people and actions taken. Assessment Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. Remediation Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms LA1 LA2 LA3 LA4 Total workforce by employment type, employment contract, and region. Total number and rate of employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Return to work and retention rates after parental leave, by gender. Labor/management relations LA4 Percentage of employees covered by collective bargaining agreements

38 GRI CONTENT INDEX GRI Description Page No. Status G L O S S A R Y SO1 SO9 SO10 SO2 SO3 SO4 Disclosure on Management Approach SO Social: Society Community Percentage of operations with implemented local community engagement, impact assessments, and development programs. Operations with significant potential or actual negative impacts on local communities. Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. Corruption Percentage and total number of business units analyzed for risks related to corruption. Percentage of employees trained in organization's anti-corruption policies and procedures. Actions taken in response to incidents of corruption RINL ACC ADD APPCB ASP ASP BF BF-BOF BDP BGC Rashtriya Ispat Nigam Limited Appointments Committee of the Cabinet Ancillary Development Department Andhra Pradesh Pollution Control Board Air Separation Plant Ammonium Sulphate Plant Blast Furnace Blast Furnace Basic Oxygen Furnace Benzol Distillation Plant Bird Group of Companies ED EETS EIL EJC ERM ESP s FABCPC G ETS G.Cal/tcs GHG Executive Director Energy Efficiency Trading Scheme Eastern Investments Limited Empowered Joint Committee Enterprise Risk Management Electrostatic Precipitator Fly Ash Based Cement Plant Committee Gas Expansion Turbine Station Giga Calories per tonne of crude steel Green House Gas BOD Biological Oxygen Demand GM General Manager SO5 SO6 SO7 SO8 Public policy Public policy positions and participation in public policy development and lobbying. Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Anti-competitive behavior Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes. Compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations BRP BSLC BSY CAC CACEP Benzol Recovery Plant Bisra Stone Lime Company Limited Bloom Storage Yard Committee for Award of Contracts Committee for Award of Contracts relating to Project Expansion contracts GoI GRI GVMC HIRA Government of India Global Reporting Index Greater Visakhapatnam Municipal Corporation Hazard Identification and Risk Assessment Disclosure on Management Approach PR Social: Product Responsibility Customer health and safety CCQC CDCP CDM Chapter Convention of Quality Circle Coke Drying and Cooling Plant Clean Development Mechanism HOD HPSC HR Head of Department High Power Steering Committee Human Resources PR1 PR2 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes CDQ CII CMD Coke Dry Quenching Confederation of Indian Industry Chairman cum Managing Director HRC HSD ICQCC Human Resource Committee High Sulphur Diesel International Convention on Quality PR3 PR4 PR5 PR6 PR7 PR8 PR9 Product and service labelling Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements. Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes. Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. Marketing communications Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. Customer privacy Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. Compliance Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services CMMI COD CoM CPH CPSE CPU CRMP CSA CSR CWP DE systems DLDS Capability Maturity Model Integrated Chemical Oxygen Demand Committee of Management Condensate Pump House Central Public Sector Enterprise Condensate Polishing Unit Calcining& Refractory Material Plant Consignee Sales Agents Corporate Social Responsibility Cooling Water Plant Dust Extraction system District Level Dealerships IEC IEM IFTDO INSSAN IP ISO IT JPC JSPL Concept Circles Independent Ethics Committee Independent External Monitor International Federation of Training and Development Organizations Indian National Suggestion Scheme Association Integrity Pact Indian Standards Information Technology Joint Plant Committee Jindal Steel and Power Limited DM De-Mineralized JV Joint Venture DMDA De-Mineralized &De-Aerated kg/thm Kilograms per tonne of hot metal 71 Fully Reported Partially Reported - Not Reported DPE DSC Department of Public Enterprises Departmental Safety Committees Kl LMMM Kilo litre Light & medium merchant mill 72

39 G L O S S A R Y LTC / LLTC Leave Travel Concession / Long Leave PH Physically Handicap Travel Concession Long PPE Personal Protective Equipment Travel Compensation / PRP Performance related Pay MBC Make and Buy Committee PSE Public Sector Enterprise MC & HC Medium Carbon and High Carbon QC Quality Circles Mgd Million gallons per day QMS Quality Management System MLD Million Litres per Day R&D Research &Development MM Material Management R&M Repair & Maintenance MMP Man Management Programme RDS Rural Dealership Scheme MMSM Medium merchant & structural mill Re Reportable MOIL Manganese Ore India Limited RINMOIL Joint venture company of RINL & MOIL MoS Ministry of Steel RMSC Raw Material Security Committee MoU Memorandum of Understanding SAIL Steel Authority of India Limited MSE Micro and Small Enterprises SC Schedule Caste MSME Micro, Small and Medium Enterprises SFCC Shop Floor Coordination Committee Mt Million tonne SFSC Shop Floor Safety Committee MTOE Million Tonnes of Oil Equivalent SMS Steel Melt Shop Mtpa Million tonne per annum SSIC State Small Industrial Corporations MTT Management Trainee -Technical ST Schedule Tribe MW Mega Watt t Tonne MWH Mega Watt-Hour t/tcs Tonne per tonne of crude steel NAFC Napthalene and Anthracene TAC Training Advisory Committee Fractional Crystallization TB Turbo Blower NAPCC National Action Plan on TDP Tar Distillation Plant Climate Change TG Turbo Generator NGO Non-Governmental Organization TOS Tar and Oil Storage NMDC National Mineral TPP Thermal Power Plant Development Corporation TSS Total Suspended Solids NMEE National Mission for Enhanced ULC Ultra Low Carbon Energy Efficiency VAS Value Added Steel NR Non Reportable VRP Viswakarma Rashtriya Puraskar NSIC National Small Industrial Corporations VSP Visakhapatnam Steel Plant ODS Ozone Depleting Substances WIPS Women In Public Sector OEM Original Equipment Manufacturer WRM Wire Rod Mill OHSAS Occupational Health and WTP Water Treatment Plant Safety Assessment Series YLMC Yeleru Left Main Canal OMDC Orissa Mineral Development Company Limited 73 PAT PF Perform Achieve Trade Provident Fund

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