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    28thAnnual Report 2009-

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    RASHTRIYA ISPAT NIGAM LIMITED

    BOARD OF DIRECTORS BANKERS

    State Bank of India

    CHAIRMAN-CUM-MANAGING DIRECTOR Bank of Baroda

    Shri P K Bishnoi Canara BankState Bank of Hyderabad

    FUNCTIONAL DIRECTORS Allahabad Bank

    UCO Bank

    Personnel State Bank of Mysore

    Shri Y Manohar State Bank of Indore

    HSBC Bank

    Commercial IDBI Bank Ltd.

    Shri C G Patil(upto 28thFebruary, 2010) Andhra Bank

    ICICI Bank

    Finance HDFC Bank

    Shri K S Shankar( upto 31

    st

    October, 2009) Central Bank of IndiaShri P Madhusudan( w.e.f. 2ndNovember, 2009) Oriental Bank of Commerce

    Punjab & Sind Bank

    Operations IndusInd Bank

    Shri Umesh Chandra Exim Bank

    Projects AUDITORS

    Shri A P Choudhary(w.e.f. 1stJune, 2009) M/s B V Rao & Co.

    Chartered Accountants

    GOVERNMENT DIRECTORS Visakhapatnam

    Shri BS Meena( upto 30

    th

    March, 2010 ) CONTENTSShri S Machendra Nathan(w.e.f. 24thMay, 2010) Chairmans Address 3

    Shri U P Singh( 12.11.2009 to 19.1.2010) Directors Report 6

    Dr. Dalip Singh(upto 11.11.2009 & w.e.f. 2.3.2010) Management Discussion & Analysis Report 30

    A Glance of Financial Results 39

    INDEPENDENT DIRECTORS Annual Accounts 41

    Cash Flow Statement 68

    Dr. Jagatpal(upto 1stMarch, 2010) CEO & CFO Certification 70

    Prof. Ramesh Chandra(w.e.f. 3rdAugust, 2009) Auditors Report 71

    Comments of C&AG 79

    COMPANY SECRETARY Report on Corporate Governance 80

    Shri P Mohan Rao Certificate on Compliance of 88Guidelines on Corporate Governance

    Secretarial Compliance Report 89

    REGISTERED OFFICE Vision, Mission & Objectives 96

    Administrative Building

    Visakhapatnam Steel Plant

    Visakhapatnam 530 031, Andhra Pradesh

    Website: www.vizagsteel.com

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    28thAnnual Report 2009-

    Chairmans AddressDear Shareholders,

    My colleagues on the Board and I extend a warm welcome to you all at the 28 th Annual

    General Meeting of your Company. The Directors Report and the Audited Statement of

    Accounts for the year 2009-10 and the Notice to the Shareholders have already been circulated

    and with your permission, I take them as read.

    Year 2009-10

    The year 2009-10 has been an eventful year for the Company as because the impact of the

    Global Financial crisis that started in the second half of the previous year has been gradually assimilated and the

    Company withstood the crisis consequent to a strong recovery in the Indian economy, thanks to the timely and

    proactive initiatives of the Govt of India to boost economic growth by enabling injecting funds in various industries

    like construction, infrastructure, auto mobile and Power Sectors. Yet, 2009-10 was at best a year of cautious

    recovery but encouraging year for the Company. The Steel Markets saw a growth in consumption but the prices

    continued to be under pressure.

    During the year, the Company has achieved some of the best ever yearly performances in respect of production of

    value added steel (2.403 million tonnes), steel dispatches by rail of 2.07 million tonnes and best ever gross sales

    of Rs.10635 Crores in addition to best techno-economic parameters achieved in terms of yields (Wire Rods and

    MMSM Mills) and Specific Water Consumption of 2.16 Cub. Mtrs./tls. This could be possible despite certain constraints

    like Power availability, etc.

    Global Steel Industry

    The Global Economy has showed signs of recovery with Global Steel Capacity utilization ratio showing improvement

    at 75.1 % in Dec 09 (as compared to 58.1 % in Dec 08). The financial crisis in the previous year has effected

    many Nations. However, the Indian Economy showed tremendous resilience and withstood the global volatility by

    maintaining the GDP Growth relatively at a higher level as compared to the earlier period. The Indian steel industryhas also shown signs of improvement everywhere by a positive growth of 2.7% over the previous year, while other

    developed countries showed a negative growth.

    The consumption of Steel continues to be a major growth driver and the consumption growth projected at 7% based

    on GDP Growth rate of 7% to 7.5% and production of 110 million tonnes much earlier than 2019 20 as was

    projected in the National Steel Policy.

    Global Crude Steel production reached 1220 million tonnes. Further, consolidation in the Industry has facilitated

    the growth and investor confidence and the international prices have been high in the year helping the Companies

    in India for improving their margins. The World Steel Association forecasts an increase in the apparent use of Steel

    finished products during 2010 and 2011 by 10.7% and 5.3% respectively. World Steel Association also expects the

    apparent steel use for the year 2010 to reach 1.241 billion tonnes compared to 1.121 billion tonnes for 2009 and

    this is expected to rise to 1.306 billion tonnes in 2011. It is also predicted that Asia will lead in terms of Steeldemand with a share of 66.2% of the World Steel demand in 2010 and 65.5% in 2011. Emerging economies like

    India will drive the growth and this augurs well for the industry.

    Indian Steel Scenario

    India has emerged as 5thlargest producer and recorded a growth rate of 2.7% and emerged as the largest sponge

    iron producer in the World. The Industry is looking forward for Expansion Plans of the Steel Companies including

    PSUs and if implemented on schedule, India could become the second largest Crude steel producer in the world by

    the year 2016. The growth in infrastructure and other developmental activities arising out of increased outlays in

    these sectors by Govt of India have rejuvenated the Steel Market in the Country and the building of capacities to

    cater to the diversified demands is the main thrust area now onwards.

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    RASHTRIYA ISPAT NIGAM LIMITED

    Outlook for the Company in 2010-11

    On the back of strong commitment for infrastructure funding and revival and strong come back by the auto sector,

    the Steel demand in the country is projected to go up by 10% giving an encouraging opportunity for the Company

    to improve its overall performance. However, the raw material prices continue to be a major concern as they havecut into the margins of the company for the year and shall continue to show a negative impact in the coming year

    as well cutting into the bottom line of the company. The Iron ore prices have already been increased by 40% from

    the price level of 2009-10 and are likely to go up further while the imported coking coal prices have gone up by 56%

    in the First Quarter of 2010-11. The Company will continue to face stiff competition from steel producers in the

    private sector who are making higher availability of long products in the market particularly in the Southern India

    Region. Efforts are on for improvement of the net sales realization by value added production and better delivery

    mechanisms to enhance consumption.

    The company is looking at optimization of product and market mix and production at higher levels of efficiency and

    productivity with a focus on cost reduction to partially neutralize the impact of cost escalations. All said and done,

    steep increase in prices of key raw materials like coking coal and iron ore and the sluggish market and declining

    selling prices is and further likely to put pressure on the margins. The Company, in the current year, is also focusing

    on synchronization for commissioning of various units of the Expansion project (6.3 Mt stage) in logical sequence to

    the extent possible so as to minimize logistical/operational over heads with increase of production.

    RINL is continuing its efforts on strategic initiatives for acquiring overseas coal mines through the Joint Venture

    Company, International Coal Venture Ltd., and long term contracts with the major coal suppliers and through the

    joint venture company RINMOIL formed for setting up of ferro alloy plant with M/s MOIL. Further, to improve energy

    efficiency of the Plant, the company entered into an MOU with NEDO for a 20.60 MW waste heat recovery system.

    Our people, the RINL collective, continue to be the key to the success of the Company. The Steel Ministrys Trophy,

    which was given for the first time, was received by the Company in the year and this, alongwith many other

    recognitions like Energy efficient unit conferred by CII, Rajbhasha Award, CMMI Level 3 Certification, Gold and

    Bronze medals ICQCC Philippines, Indias Best Companies to Work for 2009 etc., is a testimony to the

    companys commitment to Excellence in Steel making.

    Steps towards a promising future

    The Company embarked upon Expansion Plan for doubling the capacity from 3 million tonnes to 6.3 million tonnes

    and it is estimated that Ist Phase Units will be commissioned in the 4thquarter of the year 2010-11. The Coke

    Oven Battery No.4 has been commissioned during the year and was dedicated to the Nation by the Honble Union

    Minister for Steel in May 2010.

    The Company during the year took upon Modernization & Upgradation of CCM-2 with EMS facility and TG-I Automation

    along with Combined Blowing facility in SMS-1.

    Care for Society

    The Company has committed Rs.12.75 Crores for the year 2009-10, as against Rs. 38.83 Crores in the previous

    year, towards Corporate Social Responsibility activities. The reduction is largely due to the reduced PAT for the year.

    Corporate Governance

    Your Company is committed to conforming to the highest standards of corporate governance by ensuring transparency,

    disclosures, and reporting as required under the Corporate Governance Guidelines issued by the Department of

    Public Enterprises.

    Dividend for the year 2009-10

    The Net Profit for the financial year 2009-10 has eroded by 40% as compared to that of the previous year due to

    lower net sales realization. Considering the financial position of the Company and the need to have adequate

    internal resources for the on going Expansion Project and to support modernization and key raw material securitisation

    plans, there is a requirement to conserve funds.

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    28thAnnual Report 2009-

    It gives me a great pleasure to announce that the Board of Directors of your Company have since recommended a

    total dividend of 10% of Profit After Tax (PAT) to Equity Shareholders (amounting to Rs.79.67 crores) and 7% on

    Preference Share Capital to Preference Shareholders (amounting to Rs.205.62 crores) including the interim

    dividend of Rs.100.01 crores already paid to Equity and Preference Shareholders for the financial year 2009-10

    and the Shareholders, at the 28thAGM of the Company held on 24thJuly, 2010, have declared the dividend for theyear 2009-10 accordingly.

    Acknowledgements

    I, on behalf of the RINL collective, acknowledge the support extended by the Stakeholders of the Company and look

    forward to their continued support in the years to come.

    I take this opportunity to express my thanks to all the Stakeholders, Ministry of Steel, Government of India, Government

    of Andhra Pradesh and various other Departments of the Government and other Institutions.

    The Company acknowledges the unstinted commitment and collective efforts of its employees for their excellent

    performance in various activities.

    I am confident that the commitment, expertise, acumen and the trust built over the last 28 years will continue to beavailable and with your dedicated and innovative efforts, we can pave the way to building capacity upto 16 million

    tonnes by 2020, as enshrined in our Mission statement.

    Thanking you,

    Dt. 24thJuly, 2010 ( P.K. Bishnoi )

    Visakhapatnam Chairman

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    RASHTRIYA ISPAT NIGAM LIMITED

    DIRECTORS REPORTDear Members,

    On behalf of the Board of Directors of the Company, I

    take great pleasure in presenting the 28th

    Annual Reportof the Company for the financial year ended 31stMarch2010, together with the Audited Statements ofAccounts, the Auditors Report and the Comments onthe Accounts by the Comptroller and Auditor Generalof India.

    Year 2009-10

    The year 2009-10 has been an eventful year for theCompany as because the impact of the Global Financialcrisis that started in the second half of the previousyear has been gradually assimilated and the Companywithstood the crisis consequent to a strong recovery

    in the Indian economy, thanks to the timely andproactive initiatives of the Govt of India to boosteconomic growth by enabling injecting funds in variousindustries like construction, infrastructure, auto mobileand Power Sectors. Yet, 2009-10 was at best a yearof cautious recovery but encouraging year for theCompany. The Steel Markets saw a growth inconsumption but the prices continued to be underpressure.

    During the year, the Company has achieved some ofthe best ever yearly performances in respect ofproduction of value added steel (2.403 million tonnes),steel dispatches by rail of 2.07 million tonnes andbest ever gross sales of Rs.10635 Crores in additionto best techno-economic parameters achieved in termsof yields (Wire Rods and MMSM Mills) and specificWater consumption of 2.16 Cub. Mtrs./tls. This couldbe possible despite certain constraints like Poweravailability, etc.

    Global Steel Industry

    The Global Economy has showed signs of recovery withGlobal Steel Capacity utilization ratio showingimprovement at 75.1% in Dec 09 ( as compared to58.1% in Dec 08). The financial crisis in the previous

    year has effected many Nations. However, the IndianEconomy showed tremendous resilience and withstoodthe global volatility by maintaining the GDP Growthrelatively at a higher level as compared to the earlierperiod. The Indian steel industry has also shown signsof improvement everywhere by a positive growth of2.7% over the previous year, while other developedcountries showed a negative growth.

    The consumption of Steel continues to be a majorgrowth driver and the consumption growth projectedat 7% based on GDP Growth rate of 7% to 7.5% andproduction of 110 million tonnes much earlier than2019 20 as was projected in the National Steel Policy.

    Global Crude Steel production reached 1220 million

    tonnes. Further, consolidation in the Industry hasfacilitated the growth and investor confidence and theinternational prices have been high in the year helpingthe Companies in India for improving their margins.The World Steel Association forecasts an increase inthe apparent use of Steel finished products during2010 and 2011 by 10.7% and 5.3% respectively.World Steel Association also expects the apparent steeluse for the year 2010 to reach 1.241 billion tonnescompared to 1.121 billion tonnes for 2009 and this isexpected to rise to 1.306 billion tonnes in 2011. It isalso predicted that Asia will lead in terms of Steeldemand with a share of 66.2% of the World Steel

    demand in 2010 and 65.5% in 2011. Emergingeconomies like India will drive the growth and thisaugurs well for the industry.

    Indian Steel Scenario

    India has emerged as 5thlargest producer and recordeda growth rate of 2.7% and emerged as the largestsponge iron producer in the World. The Industry islooking forward for Expansion Plans of the SteelCompanies including PSUs and if implemented onschedule, India could become the second largest Crudesteel producer in the world by the year 2016. Thegrowth in infrastructure and other developmental

    activities arising out of increased outlays in thesesectors by Govt of India have rejuvenated the SteelMarket in the Country and the building of capacities tocater to the diversified demands is the main thrustarea now onwards.

    Outlook for the Company in 2010-11

    On the back of strong commitment for infrastructurefunding and revival and strong come back by the autosector, the Steel demand in the country is projectedto go up by 10% giving an encouraging opportunity forthe Company to improve its overall performance.However, the raw material prices continue to be a majorconcern as they have cut into the margins of thecompany for the year and shall continue to show anegative impact in the coming year as well cuttinginto the bottom line of the company. The Iron ore priceshave already been increased by 40% from the pricelevel of 2009-10 and are likely to go up further whilethe imported coking coal prices have gone up by 56%in the First Quarter of 2010-11. The Company willcontinue to face stiff competition from steel producersin the private sector who are making higher availabilityof long products in the market particularly in theSouthern India Region. Efforts would continue for

    improvement of the net sales realization in general

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    and by value added production and better deliverymechanisms to enhance consumption. But recentfinancial crisis in some European countries affectingSteel market sentiments including in India and reduced

    scrap prices etc. are putting considerable pressureon prices and the negative sentiments are leading tosluggish market.

    The company is looking at optimization of product andmarket mix and production at higher levels of efficiencyand productivity with a focus on cost reduction topartially neutralize the impact of cost escalationsdespite Brown Field Expansion work at times comingin the way as also overdue repairs and maintenanceof key Units. All said and done, steep increase inprices of key raw materials like coking coal and ironore and the sluggish market and declining selling pricesis and further likely to put pressure on the margins.The Company, in the current year, is also focusing onsynchronization for commissioning of various units ofthe Expansion project (6.3 MT stage) in logicalsequence to the extent possible so as to minimizelogistical/operational over heads with increase ofproduction .

    RINL is continuing its efforts on strategic initiativesfor acquiring overseas coal mines through the JointVenture Company, International Coal Venture Ltd., andlong term contracts with the major coal suppliers andthrough the joint venture company RINMOIL formedfor setting of Ferro Alloy Plant with M/s MOIL. Further,

    to improve energy efficiency of the Plant, the companyentered into an MOU with NEDO for a 20.60 MW wasteheat recovery system from the existing Sinter Plant a first for an Integrated Steel Plant.

    The RINL collective, continue to be the key to thesuccess of the Company. The Steel Ministrys Trophy,which was given for the first time, was received by theCompany in the year and this, alongwith many otherrecognitions like Energy efficient unit conferred byCII, Rajbasha Award, CMMI Level 3 Certification, Goldand Bronze medals ICQCC Philippines, Indias BestCompanies to Work for 2009 etc., is a testimony to

    the companys commitment to Excellence in Steelmaking.

    Steps towards a promising future

    RINLs operation of its assets at VSP has been amongstthe most competitive in the steel industry and capacityexpansion has been one of the key strategies for theorganization. RINL draws its greatest strength and itscompetitive position from its productivity, quality andhighly skilled work force. RINL has an excellent layoutand associated infrastructure facilities to expand thecapacity many fold. Leveraging upon these strengths,RINL had drawn its long term directional plan

    Corporate Plan 2020 to expand the capacity of liquidsteel to 16 million tonne in phases by the year 2020.In the midst of changing business dynamics and itsquest to maintain its dominant position in the Indian

    steel market, the Corporate Plan is being revisited asper which VSP has the potential to expand to 20 milliontonne per annum at the existing location ; therebycould become the largest single location steel plant inthe country and enjoy economic benefits.

    In the above endeavour, the Company has alreadyembarked upon its first phase of expansion for doublingits capacity from 3 million tonnes to 6.3 million tonnesof liquid steel per annum. In the current phase, RINLis focusing on further establishing its brand leadershipin long products category view of the projectedinfrastructure growth of the country and in the nextphase, VSP proposes to enter into flat productscategory with which product mix of RINL would getenriched. The implementation of the first phase ofexpansion is in advanced stage and the production isall set to commence by end of the financial year 2010-11. This phase of expansion consists of a new BlastFurnace with state of the art technology, Sinter Plantand Raw Material Handling System, new Steel MeltingShop along with latest technological facilities toproduce clean steel, Wire Rod Mill and associatedunits. The existing plant of RINL was installed mainlyutilising Russian technology. In the current expansionphase, RINL has sourced latest technology from all

    major countries, partnering with reputed technologysuppliers for supply, installation and commissioning ofthe units which includes M/s Paul Wurth, Italy, SMS,Germany, Siemens VAI, Austria, Danieli, Italy, TPE,Russia, along with reputed Indian partners viz., M/sMECON, BHEL, L&T, Bridge & Roof etc. To meet theadditional requirement of coke, a new Coke OvenBattery No.4 has already been commissioned whichwas dedicated to the Nation by the Honble UnionMinister for Steel in May 2010. The Company duringthe year also took up a number of Modernization &Upgradation projects like CCM-2 with EMS facility andCombined Blowing facility in SMS-1 which have been

    put into operation.

    In Stage II of current phase of expansion, two newfinishing mills Special Bar Mill and Structural Millalong with associated facilities are being installed whichwill be brought into operation progressively during nextfinancial year i.e 2011-12.

    Apart from capacity enhancement, the expansion alsofocuses on reduction in energy efficiency, stepping upof productivity & yield, newer products with morestringent tolerance limits and above all moreenvironmental friendly technologies.

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    To reduce energy consumption, several energy efficient technologies are being adopted in expansion such as multislit burners, waste heat recovery in sinter coolers, PCI in Blast Furnace, newer design of BF stoves, Top recoveryturbine for waste heat recovery, 100% continuous casting, efficient reheating furnaces in Mills, efficient electricaldrives, oscillating combustion in Rolling Mills, furnace control integrated with Mill control, side charging and discharging

    of furnace, low temperature rolling, housing less stands, warm charging of billet, high speed rolling, single familyroll pass design and the like.

    Measures for environmental protection and resource conservation, has always been the top priority of RINL thathas helped the company in maintaining lowest water consumption, one of the lowest in energy consumption,highest utilization of waste gas heat through generation of about 40 MW of power etc., The new systems / technologiesbeing introduced in expansion include zero discharge system, mechanical, biological & chemical treatment unit foreffluent treatment, Dry fog dust suppression system in RMHP, dog house (secondary fume extraction system) inSMS, several de-dusting facilities of efficient design etc.

    The thought process for the next phase of expansion to a level of 11 to 12 million tonne per annum of liquid steelhas already commenced. In this phase, RINL intends to enter into flat products & high grade steels which arecurrently either not being manufactured in the country or partly getting imported.

    CARE FOR SOCIETY

    The Company has committed Rs.12.75 Crores for the year 2009-10, as against Rs.38.83 Crore in the previousyear, towards Corporate Social Responsibility activities. The reduction is largely due to the reduced PAT for the year.

    CORPORATE GOVERNANCE

    Your Company is committed to conforming to the highest standards of corporate governance by ensuring transparency,disclosures, and reporting as required under the Corporate Governance guidelines issued by the Department ofPublic Enterprises.

    The Net Profit for the financial year 2009-10 has eroded by 40% as compared to that of the previous year due tolower net sales realization. Considering the financial position of the Company and the need to have adequateinternal resources for the on going Expansion Project and to support modernization and key raw material securitisationplans, there is a requirement to conserve funds.

    BUSINESS PERFORMANCE:

    The year gone by has been very eventful for the Company as much as it has surpassed the previous best achievedfor any year as detailed below:

    PRODUCTION

    Unit:000t

    Actual % fulmt % growth over Items DPR 2009-10 2008-09 on DPR 2008-09

    Ovens pushed (Nos./day) 296 256 ** 16

    Hot Metal 3400 3900 3546 115 10

    Pig Iron 556 408 322 73 27Liquid Steel 3000 3399 3145 113 8

    Billets 1857 1983 1904 107 4

    Bar products 710 870 825 123 6

    Wire Rods 850 1016 972 119 5

    MMSM Products 850 1073 748 126 44

    Finished Steel 2410 2959 2544 123 16

    Saleable Steel 2656 3167 2701 119 17

    Value added production 2403 2008 ** 20

    Value added heats (Nos.) 18327 15192 ** 21

    Power Generation (MW) 203.1 198.8 ** 2

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    Best Production and Technical Parameters

    Yearly Peaks

    Production in all major units exceeded 100% of rated capacity for the 9th consecutive year ;

    20.6 MW waste heat recovery system in Sinter Plant (with NEDO, Japan) is being installed which is First time in

    India;

    Other Highlights :

    Installation of Combined Blowing facilities in all the 3 LD converters done.

    Modernization & Automation of CCM-2 during Aug/Sep' 09.

    Commissioning of two units of Argon tanks in ASP for the supply of Argon gas for combined blowing facilities. Upgradation of control and instrumentation for TG-1 in Dec '09.

    Commissioning of Battery-4 in Apr '09.

    Reduction of chilled water temperature by commissioning of chillers of CWP-1.

    Receipt of Coal through Conveyor from Gangavaram Port.

    Usage of straight coking coal for coal blend optimization.

    Highest ever Value Added Steel production of 2.4 Mt

    20% growth over the previous best in 2008-09;

    76% of value added steel in total saleable steel production (best since inception)

    Hot metal & Liquid Steel crossed 62 Mt & 50 Mt Landmark on 21.01.10 & 07.03.10 respectively.

    Zero Net Demurrage was achieved for three consecutive months (Jan-Mar '10) in the year 2009-10.

    Despatch of 2.07 Mt of Steel by Rail is the Best for any Year since inception.

    The Company has once again crossed the landmark Turnover of Rs.10,000 Cr for the third time in a row. Thefocus of fiscal measures in the Company continued to be on optimizing expenditure on interest, bank charges and

    insurance while improving the earnings on surplus funds.

    Item Unit Actual Previous best2009-10

    Production

    Value added production '000 t 2403 2008 2008-09

    Value Added heats Nos. 18327 15192 2008-09

    Met. waste consumption '000 t 375 360 2006-07

    Technical Parameters

    CO&CCP Nut coke yield % 6.16 6.12 2004-05

    Sinter Plant Power consumption KWH/t GS 45.95 46.67 2006-07

    BF Heat Consumption Mcal/t HM 470 482 2005-06

    SMS Avg. Ladle Life Heats 96.38 88.00 2007-08

    Avg. Tundish Life Heats 5.27 4.93 2008-09Cast Blooms yield % 94.31 94.20 2008-09

    Heat Consumption Mcal/t LS 33 33.9 2007-08

    WRM Wire rods yield % 98.06 97.90 2006-07

    Power Consumption kwh/t blt rld 118.94 119.31 2008-09

    MMSM MMSM Products yield % 96.25 95.88 2007-08

    Overall Sp. Water consumption Cum/t LS 2.18 2.29 2006-07

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    RASHTRIYA ISPAT NIGAM LIMITED

    ENVIRONMENT MANAGEMENT

    The company was audited by M/s BVCI for continuationof ISO 14001:2004 certificate, which is valid till Aug2010. The company in its endeavor to move beyondadherence to stipulated norms, has identified thefollowing projects to improve the environmentalperformance:-

    Major Environmental projects completed during 2009-10

    COST REDUCTION MEASURES

    The companys commitment towards containing costscontinued during the year with the following measures :

    1. Nut coke in partial replacement of metallurgicalcoke in Blast Furnace.

    2. Use of Metallurgical waste to partially replace IronOre fines at Sinter plant.

    3. Blending of different types of straight coking coalsto reduce Carbon Rate.

    4. Usage of LPG for bloom cutting, in place of Acetylegas in CCM 1, 2 and 3.

    5. Utilisation of LD slag in Sinter Plant (SP) and BlastFurnace (BF) to reduce consumption of Limestone.

    6. Utilisation of Lime dust in SMS by way of Briquettingthe lime.7. Reclamation of scrap from maintenance activities

    and use in SMS.8. Improvement in tundish life from 4.93 to 5.27

    Heats.9. Conservation of power10. Water conservation.11. Collection and processing of copper scrap from

    electric motors, tuyeres, etc.

    SALES PERFORMANCE

    1. Recap of 2009-10

    The year 2009-10 witnessed improved demand for steelproducts compared to 2008-09. During 2009-10,Construction Sector and Automobile Sector registeredrecovery over that of the previous year. Constructionand Automobile Sectors registered estimated growthrates of about 10% and 25% respectively in 2009-10over 2008-09. Upto July 2009, the recovery indomestic market prices continued and margins turnedpositive. Subsequently, there was a dip in the marketprices, exerting pressure on the margins, whichcontinued till December 2009. Recovery of marketprices started by end of December 2009 and continued

    till the end of the financial year. Due to stableInternational prices, VSP exported Pig Iron as well asSteel especially during the above period of lull in thedomestic market.

    Due to improvement in the growth of Automobile Sectorin 2009-10, the demand for Value Added Steels hasincreased during the year. Sales of Value Added Steelhave gone upto 2.36 Million Tonnes (Mt) representinga growth of 19% in 2009-10 over that of 2008-09.

    2. Marketing Performance Highlights

    Registered best ever Sales Turnover of Rs.10635Cr. since inception . The Sales Turnovercorresponds to a target fulfillment of 108% againstMOU target of Rs. 9861 Cr.

    The sales volume of Saleable Steel during the yearstood at 3.131 Mt, registering a growth of 20%over 2008-09.

    The sales of Value Added Steels constituted 75%of Saleable Steel sales. Premium for Value AddedSteels over Mild Steels showed improvementduring the year.

    Exports value of Rs.351 Cr. has been achieved duringthe year 2009-10, against Rs.78 Cr. in 2008-09.

    Sl. Projects Cost

    No. completed (Rs. in Lakhs)

    1 Installation of High temperature, 1256

    Membrane Bag filters inCRMP-1, 2, 3 and 4 arecompleted.

    2 Installation of Electronic 120controllers in ESPs of

    TPP Boilers 1,2 & 5

    3 Nitrification, De-nitrification of 4600MBC effluents for control ofAmmonical Nitrogen.

    4 Replacement of compressors 650working on ODS withnon-ODS / CWP chillers.

    Total 6626

    KEY FINANCIALS (Rs Crores)

    2009-10 2008-09

    Gross Turnover 10635 10411

    Total Income 10567 10052Total Expenditure 8964 7697

    Gross Margin 1603 2355

    Interest Charges 78 88

    Cash Profit 1525 2267

    Depreciation 277 240

    Profit Before Tax 1248 2027

    Provision for taxations 451 691

    Net Profit 797 1336

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    Achieved record sales value of By-products ofRs.266 Cr. during the year 2009-10 as comparedto Rs.214 Cr. during the year 2008-09, whichrepresents a growth of 24%.

    During 2009-10, not only the granulated slagproduced in the year could be sold but also theslag from Dump Yard was sold. The percentagedisposal of granulated slag produced during theyear 2009-10 stood at 117%.

    Appointed three new Consignment Sales Agenciesduring the year 2009-10 at Kadapa andVisakhapatnam in Andhra Pradesh and Damtal,Kangra District in Himachal Pradesh.

    48 New DLDs have been appointed during theyear 2009-10.

    3. Sales Performance

    Gross sales of Rs 10,635 Crores has been achievedin 2009-10 against MOU target of Rs. 9861 Croresrepresenting target fulfillment of 108% and growth of2% over that of the previous year (2008-09). Further,the details of the break-up of actual performance w.r.t.targets for 2009-10 are indicated below :

    Volume : '000 Tonnes, Value : Rs. Cr.

    Sales Volume

    Domestic

    Pig Iron 186 382 205% 246 55%

    Steel 2980 3073 103% 2617 17%

    Export

    Pig Iron 150 145 96% 23 542%

    Steel 100 58 58% - -

    Total

    Pig Iron 336 527 157% 269 96%

    Steel 3080 3131 102% 2617 20%

    Sales Value

    Domestic 9360 10284 110% 10333 -

    Exports 501 351 70% 78 348%

    Total 9861 10635 108% 10411 2%

    ITEM2009-10

    Target Actual FulfillmentGrowth

    2008-09

    During the year 2009-10, sales volume of Pig Iron andSaleable Steel represented target fulfillment of 157%and 102% respectively against MOU target andregistering a growth of 96% and 20% respectively over2008-09.

    4. Exports

    VSP exported both Pig Iron and Saleable Steel duringthe year. In 2009-10, Export Sales of 145 thousand

    tonnes of Pig Iron and 58 thousand tonnes of SaleableSteel have been achieved. The Export Sales stood atRs.351 cr. during 2009-10.

    5. Value Added Steels

    In 2009-10, 2.36 Mt of Value Added Steel Productshave been sold compared to 1.98 Mt in the year

    2008-09, representing a growth of 19%. Sales of ValueAdded Steel as a percentage of Total Saleable Steel

    stood at 75.3% during 2009-10. The details of sale ofValue Added Steel Products are given below :

    Sales Turnover (Rs. Crs)

    10433 10411

    10635

    07-08 08-09 09-10

    07-08 08-09 09-10

    Export Turnover (Rs.Crs)

    555

    78

    351

    Domestic Turnover (Rs. Crs)

    9878

    10333 10284

    07-08 08-09 09-10

    Sales Turnover (excluding Internal Consumption)during the last 3 years

    Unit : 000 Tonnes

    2008-09 2009-10 % Gr.

    Value Added Steel 1981 2359 19

    Total Saleable Steel 2617 3131 20

    Value Added Steel % of

    Total Steel 75.7 75.3

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    The graphical representation of sales of Value addedsteel in the last four years are as under :

    Unit : '000 Tonnes

    6. Project Sales

    During the year 2009-10, 6.59 lakh tonnes (includingInternal Consumption at VSP) of steel products havebeen sold to Project Customers, compared to 6.71 lakhtonnes in the year 2008-09. Region-wise sales of steel

    products to Projects are given below :

    Unit : 000 Tonnes

    Region 2008-09 2009-10

    East 71 77

    North 128 202

    West 98 93

    South 172 137

    Andhra 166 116

    Internal Consumption 35 34

    Grand Total 671 659

    The Northern and Eastern Regions have recorded highest

    yearly Project Sales of 202 thousand tonnes and 77thousand tonnes in 2009-10, corresponding to 58%and 8% growth respectively over that of 2008-09.

    Graphical representation of Region-wise sales volume('000 t) and share (%) of steel products to Projects isbrought out below :

    unit : volume in 000 tonnes

    7. By-Products Sales

    The sales value of By products of Rs.266 Cr. achievedduring the year corresponds to MOU target fulfillment

    of 159% and represents a growth of 24% over that of2008-09. The sales of By products during the year2009-10 and 2008-09 are given below :

    By-Products 167 266 159 214 24

    2009-10

    ItemTarget Actual % Fulfillment

    2008-

    09

    % Growth of2009-10

    over 2008-09

    Unit: Rs. Cr.

    8. Inventory Control

    While the inventory of Saleable Steel as on 31.3.2010remained almost at the same level as that of at thebeginning of the year, there was a substantial reduction

    in inventory of Pig Iron during the year 2009-10.The position of inventory of Pig iron, Semis, FinishedSteel and Saleable Steel as on 1st Apr. 2009(beginning of the year) and as on 1st Apr. 2010 (endof the year) are as follows :

    Iron 125 7 -118

    Finished steel 171 175 4

    Semis 23 *16 *-7

    Saleable steel 194 191 -3

    (*Meant for sale)

    Unit : 000 Tonnes

    ItemAs on

    01/04/2009

    As on

    01/04/2010

    Accr (+) /

    Dec (-) over

    01/04/2009

    It may be observed that the total production of SaleableSteel during the year 2009-10 has been sold in theyear.

    9. E-Marketing

    During 2009-10, 92,008 tonnes of Steel products weree-auctioned through 1389 awarded e-auctions. Inaddition to these, 16,887 tonnes of Pig Iron and relatedproducts were e-auctioned through 14 awardede-auctions. About 71,322 tonnes of By-products were

    e-auctioned through 202 awarded e-auctions. TheValue of e-auctions stood at Rs. 278 Cr.

    During the year, 72 e-reverse auctions were awardedfor transportation of 3.6 lakh tonnes of Iron and Steelproducts.

    10. Rural Marketing

    The District Level Dealership Scheme (DLDS) wasintroduced in RINL-VSP in 2004-05, with a view tomaking steel available to the rural customers at nearbylocations. The number of District Level Dealers (DLDs)has increased from 15 in 2004-05 to 136 by the endof 2008-09.

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    During the year 2009-10, 84 DLDs ceased to be inthe list of DLDs at the end of the year due to thefollowing reasons.

    Registration of the some of the DLDs lapsed, as

    the contractual period, including option forextension, completed.

    Registration of some of the DLDs lapsed, as theextension option was not exercised due to poorperformance.

    Based on the experience gained and the inputs receivedlike vigilance suggestions, feedback from District LevelDealers, as a part of Corporate Governance, DLDs Policyhas been revised and new registration for DLDs startedfrom 2009-10 onwards.

    During the year 2009-10, 48 new DLDs have beenappointed. At the end of the year, there were 100 DLDsin position.

    MATERIALS MANAGEMENT :

    For the production of Metallurgical Coke required inBlast Furnaces, the Indian Steel Industry is dependenton Imported Coking Coals due to lack of certain essentialparameters in Indigenous Coking Coals. Dependenceon Imported Coals is relatively higher in case of RINLdue to lack of captive mines and relatively large BlastFurnaces. The annual prices under Long TermAgreements for Imported Coking Coals are normallyfinalized at the beginning of the Financial Year fordeliveries from July to June. Thus prices were finalizedbefore the economic meltdown for the period from July'08 to June '09. The crash of Steel prices in themeantime, due to economic meltdown of Sep '08,meant erosion of profits for the Company. Under theseCircumstances, the Company successfully negotiatedwith the Coal Suppliers to change the procurement cycleto Apr '09 to Mar '10 and to defer the contract quantitiesoutstanding on 31.03.09 over the next 3 years. Thisinitiative of the Company has given some relief for theoperations of the Company in this difficult year, as theprices settled for Apr '09 to Mar '10 procurement cyclewere much lower than those settled for July '08 to June

    '09 procurement cycle.The blend of various Imported and Indigenous CokingCoals for production of Metallurgical Coke is optimizedfrom time to time to achieve optimum properties atoptimum cost from the available Coals. The AustralianCoal suppliers were, hitherto supplying Coals blendedat their end. To increase the flexibility for blending atour end, the Company persuaded the suppliers to supplyCoals without any blending at their end. This initiativeis expected to help the Company especially during theperiods of uncertain receipts of one or more Coals owingto natural calamities or otherwise.

    The Company utilized the services of Gangavaram Port,a mechanized deep draft port, being in the vicinity, tothe best advantage of the Company. The Companystarted availing Capesize vessels, which meant lower

    freights. For other smaller vessels, the choice betweenVisakhapatnam Port and Gangavaram Port was madebased on Vessel-to-Vessel calculation of economics.

    The Company has been giving continuous thrust fore-initiatives. About 75% of the value of Spares andConsumables procured in the year were throughe-procurement. An online Vendor Registration Systemhas been implemented to facilitate the intendingVendor to apply Online and view the status of theirapplication Online.

    TRAINING & DEVELOPMENT ACTIVITIES :

    The Company has an exclusive Train ing and

    Development Centre to take care of the Trainingrequirements of the Officers and workmen as well asthe newly recruited Management Trainees etc. TheTra in ing in it ia ti ve includes Spec ia l need basedProgrammes, Trade Tests and Orientation programmescatering to the requirements of various Departmentsof the Company.

    The Total number of employees trained during the yearwas 32850, the total number of programmesconducted was 1156. Freshers' Training was impartedto 766 and total Training Mandays was 12.9 peremployee/year with Training effectiveness of 85.4% with

    a Human Capital Development Index of 1.64.Training programme was imparted to 14 engineers fromEssar Steel, Hazira for a period of 30 working days.Vocational Training/Project Work facilities were extendedto 5112 students from different Engineering Colleges.Total revenue generated from training activities wasRs.76.84 lakhs.

    INFORMATION TECHNOLOGY :

    RINL has taken the initiative to match with internationalsoftware development standards. The Companyunderwent 'Assessment by the International CertificationAuthority'. In the final CMMI assessment, the Company

    was awarded prestigious CMMI Level-3 Certificate bySoftware Engineering Institute, USA, in August 2009.This certif ication is first of its kind in the IndianManufacturing and Steel Industry.

    E-INITIATIVES TAKEN UP DURING THE YEAR :

    Intranet portal (www.vspsite.org), Internet web site(www.vizagsteel.com) and Chairman On-Line Systemwere developed. The Reverse e-auction for Marketingtransport contracts for MRO's, Import Purchase casesand for Stores transport contracts were also developedand e-auctions worth Rs.722 Crores have beentransacted.

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    The internet web site, www.vizagsteel.com was rankedsecond in popularity amongst the websites of all steelproducing companies in the country. An ERM Portal forRisk Management was developed.

    A drive towards Paperless office has been initiatedcovering various areas like, sending ITTs (along withdrawings) to suppliers through E-mail was implemented.Provision was made for new vendors to register throughweb. Online Leave Management System wasimplemented for Materials Management and PersonnelDepartments. Administrative Budget ManagementSystem (ABMS) was deployed in the web for use by allthe branches.

    Intranet portals of Legal Affairs, Safety, TownAdministration, General Administration, Instrumentationand Environment Management were launched.

    In addition, under Process control initiatives, NewSCADA (Supervisory Control and Data Acquisition)system was commissioned.

    ENTERPRISE RESOURCE PLANNING

    During the year 2009-10, the Company launched theimplementation process of "Enterprise ResourcePlanning". M/s Wipro Infotech Ltd are the ImplementationPartner & Consortium lead with M/s HKP, M/s SAP andM/s Tulip as other members of the consortium forimplementing ERP solution in the Company. ERP solutionwill facilitate the Company to achieve standardization

    and seamless integration of all its business processesand improve internal efficiencies across the organization.ERP signifies single transaction data base that is shared,updated and drawn upon by the entire organisation andfacilitates visibility and transparency of information acrossall levels of stakeholders. The Project is likely to go liveduring financial year 2010-11.

    MANAGEMENT SERVICES :

    The Management Services Department took initiativefor implementation of Quality Circle Projects, Generationof Suggestions and 5S Certification and the majorachievements during the year are as follows :

    S.No. Objective Target Actual

    1 No. of QC projects implemented 3800 4277in the organization during

    2009-10

    2 No. of Suggestions generated 35299 36021

    across the organization during2009-10

    3 No. of depts. facilitated for 5S 11 18certification during 2009-10 45 52

    - Cumulative certified Depts.

    The Company secured Gold and Bronze medals in theInternational Convention on Quality Control Circles-2009 (ICQCC) at Cebu, Philippines.

    VSP has added another feather in its cap by baggingGovt. of India Vishwakarma Rashtriya Puraskar (VRP) -2008 awards at national level. VSP has won thisdistinction fifth time in a row.

    STRATEGIC INITIATIVES DURING THE YEAR :

    RINL has taken a number of initiatives for growth ofbusiness of the company in addition to its Expansionplan, which includes formation of Joint Ventures,acquisition of assets, mergers etc. both in India andabroad. VSP has been very actively exploring variousoptions to ensure its raw material security throughacquisition / JV route. Some of the major initiatives

    pursued are given below :JV with M/s MOIL :RINL-VSP has formed a joint venturecompany with M/s Manganese Ore India Ltd-RINMOILFerro Alloys Pvt Ltd. The company was incorporated on29.07.09. The JVC with one 27 MVA furnace and one9 MVA furnace is envisaged to produce 37,500 tonnesper annum of Silico Manganese and 20,000 tonnesper annum of Ferro Manganese. The JV will serve tomeet VSP's ferro alloy requirement besides opportunityto export. The JV will also help in beneficial use of lowgrade Manganese ore of the Company's existing minesand also Manganese from M/s OMDC etc.

    BIRD Group of Companies : Union Cabinet in itsmeeting held on 10.09.09, has approved therestructuring proposal of BIRD Group of Companies. Inthe proposed restructuring, M/s OMDC and M/s BSLCwill be made subsidiaries of M/s EIL, which in turn willbe made a subsidiary of RINL, thus bringing M/s EIL,M/s OMDC and M/s BSLC under the umbrella of M/sRINL. The other two companies viz., M/s KDC & M/sSSL would be phased out. M/s OMDC have 6 Miningleases for Iron ore with reserves of 200 Mt & Manganesereserves of 45 Mt and M/s BSLC have 375 Mt of Lime

    stone and 287 Mt of Dolomite reserves. This alliancewould be of mutual benefit.

    Iron Ore Security :Applications for Mining Leases (ML)in two areas were filed in Bhilwara Iron Ore Mines,Rajasthan.

    Pelletization Plant : RINL is getting its entire iron orerequirements from M/s NMDC's Bailadilla Mines sinceinception. There have earlier been major disruptions tothe railway line (KK line) transporting the iron ore, dueto disruptive activities. In order to ensure securetransportation of iron ore from Bailadilla and furthervalue addition, an EOI was invited for setting up

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    Pelletization Plant at Visakhapatnam of capacity6-8 mtpa through SPV, with transportation of iron orein slurry form.

    SMS grade limestone: Suitability of limestone inDubai(UAE), Philippines, etc are being explored.

    PROCESS IMPROVEMENTS

    The structure of formulation of annual plans in thecompany was revised with the introduction of theconcept of Roll-on plan and accordingly SustainabilityPlan 2009-10 & Roll-on Plan till 2013-14 werefinalized. This was done with a view to maintain thruston important aspects without compromising on the longterm goals and also to carry forward unfinished agendain the plan to subsequent year after due corrections.

    AWARDS :

    During the year 2009-10, VSP was declared as therecipient of the First Steel Minister's Trophy for the year2006-07.

    As per the survey conducted by The Great Place to WorkInstitute (USA) in association with The Economic Timesfor "India's Best Companies to Work for - 2009," theCompany was adjudged among the:

    Top Fifty Indian companies to work for in India Top Two PSUs Top Four among the large organizations Top Six in the manufacturing segment

    RAW MATERIAL SECURITY

    Madharam Dolomite Mine (MDM) :

    Production & Despatch : The percentage growth inrespect of Production is 14.03% and Despatch is10.39% as compared with that of last year 2008-09.The current year performance of MDM is 96.10% inproduction & 92.31% in dispatch for meeting MOUtargets of Hot metal & Liquid steel.

    Other Achievements :

    All time Day Record of drilling 567 Mtrs on 13th

    Feb, 2010 (previous 462 Mtrs on 22.10.09). MDM team bagged Par Excellence Award in NCQC-

    2009. Zero accident rate achieved.

    Jaggayyapeta Limestone Mine :

    Production & Despatch: The performance of

    Jaggayyapeta Limestone Mine against targets for theyear 2009-10 is 103 % in production and 99 % in

    dispatch for meeting MOU targets of Hot metal &Liquid steel .

    Other Achievements

    Reduction of Inventory by 3.17% over previous year.

    Demurrages paid to railways were brought down toRs.5.21/tonne from Rs.9.31/tonne during 2008-09.

    The consumption of Electricity, explosives, HSD,

    Lubricants, Electrodes and spares showedfavourable against targets.

    Highest Month Drilling (2390 Mtrs.) performance

    during July 2009. Zero accident rate achieved.

    Garbham Manganese Mine :

    Production & Despatch Performance : The % growth inrespect of production is 14.51% and dispatch is

    (-)41.43% as compared with that of last year2008-09. Shortfall against targets in this year is dueto transporters could not mobilize trucks as per

    Company's needs.

    Despatch Performance : The dispatch of River Sandfrom Sarepalli Sand Mine is 11277 Tonnes, a growthof -57.63% over that of last year. Shortfall againsttargets in this year is due to Contractors could notmobilize the trucks with the plant's requirement.

    NEW INITIATIVES / NEW MINING LEASES

    Iron Ore :

    RINL/VSP has submitted 2 mining lease applications

    for iron ore deposits in the State of Rajasthan for anarea of 2303.75 & 2948.50 hactares respectively.

    Coking Coal :

    Two Coal Blocks for underground mining have beenallotted to RINL/VSP in the State of Jharkhand. One atMahal vide Lr.No. 13016/64/2004-CA/CA-1, dt.09.12.2005 and the other at Tenughat Jhirki vide Lr.No. 38011/11/2006-CA-1, dt. 10.09.2008.

    Both the blocks are difficult mines with deep seatedseams, steep inclinations, highly gaseous, number offaults, nallah/river blocking substantial reserves, low

    recovery etc. The Company has requested Ministry ofCoal / GOI to allot a good coking coal block with opencast mining so that the allotted blocks can be handedover.

    Dolomite :

    A fresh application was submitted in the office of ADMG,Kothagudem on 02.11.2009 for Dolomite Mining Leaseat Dharmapuram Village, Khammam District, AP. DistrictCollector, Khammam advised to make a joint survey byForest and Revenue Departments to take suitabledecision to give NOC to RINL/VSP.

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    Quartzite :

    Over an extent of 40.47 ha. in survey No. 268 ofPindrangi village, K.Kotapadu Mandal, VisakhapatnamDistrict for a period of 30 years vide Memo No.9133/M.III(2)/2007-, dt. 27.01.2009 by Department ofIndustries & Commerce, Govt. of Andhra Pradesh hasbeen sanctioned in favour of RINL.

    Over an extent of 20.64 ha. in survey no. 1 ofMarrivalasa village, K. Kotapadu Mandal, Visakha-patnam District for a period of 30 years vide MemoNo. 9132 / M.III (2) / 2007-3, dt. 27.01.2009 byDepartment of Industries & Commerce, Govt. of AndhraPradesh has been sanctioned in favour of RINL.

    To obtain Environmental clearance, M/s Apitco Limited,Hyderabad (Recognised by MoEF/GoI) has been

    appointed for preparation of (i) Environmentalmonitoring baseline data for one season and (ii)Environmental Impact Assessment & EnvironmentalManagement Plan.

    PROJECTS DIVISION

    RINL is at the forefront of the expansion drive in thecountry to raise its capacity to 6.3 Mtpa and would bethe first plant among PSUs to bring its expandedcapacity on stream commencing from 2010-11. Theentire expansion is under implementation in two stages.Under the stage-I, new Blast Furnace, Converters, BilletCasters and Wire Rod Mill will be commissioned

    progressively during Financial Year 2010-11.Subsequently, the facilities under stage-II consisting oftwo major finishing mills - Special Bar Mill and StructuralMill will also be commissioned during 2011-12.

    There has been significant progress in physical activitiesduring the year 2009-10. With this, the target of CapitalExpenditure for Expansion was also met; touching thetotal expenditure to a level of around Rs 6000 Crs.

    Progress of Work :

    In the area of Expansion and other projects, there hasbeen accelerated progress during the year 2009-10:

    Orders have already been placed Detailed engineering already completed for

    auxiliaries etc

    Civil work almost completed for Stage-1

    Major structural fabrication completed

    The following facilities were commissioned and otherprojects brought to advanced stage of execution :

    Main Receiving Station:

    220KV system to meet additional powerrequirement of about 150MW.

    220KV transmission line from MRS to LBSS-6,LBSS-7, 1-LBDS-1, 2 & 3 test charged.

    Interconnections between existing and expansioncompleted for supply of Air, Nitrogen, Water andsteam partly.

    5 Nos Cranes in Wire Rod Mill & Blast Furnacecommissioned and cold trials completed for 15nos cranes in SMS and Sinter Plant.

    Testing and trial run of conveyors in RMHP,equipment in SP-3 & BF-3, electrical installationin various packages commenced.

    Some of the Major Modernization & upgradation

    projects implemented are :

    New facil ity of Coke Oven Battery-4 was

    commissioned in April 09 Combined blowing facilities in all the three existing

    converters was installed and commissioned

    Modernization and upgradation of ContinuousCasting Machine (CCM)-2 in existing Steel MeltShop was completed and commissioned

    Alba gas cutting machine was installed in CCM-1

    Conveyor for transportation of Imported CokingCoal from Gangavaram Port (new facility) wascommissioned

    Upgradation of ladle furnace PLC & MMI was

    completed in existing Steel Melt Shop

    Conversion of binding machine to automaticstrapping machine in Bar Mill of existing plant

    New Mechanical & Biological Chemical TreatmentPlant commissioned

    Some Major Highlights :

    100% MoU targets for the year 2009-10 havebeen achieved.

    New benchmarks (monthly performance) were seton the expansion front for VSP and in some areas

    for the Indian Steel Industry itself. Highest ever structural erection - 15,133 T

    achieved which is best achieved amongst Steelindustry in India

    Highest ever concreting - 36,320 Cu.M achieved.

    Highest ever equipment supply of 14,298Tachieved.

    Highest ever equipment erection of 10,075Tachieved.

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    Physical progress for structural erection, equipment supply and equipment erection is depicted below:

    Yearly trend

    EMPLOYEES :

    During the period from 01-04-2009 to 31-03-2010, there was a net increase in the manpower by 605 i.e. from17,225 as on 01-04-2009 to 17,830 as on 31-03-2010.

    As on 31-03-2010, the number of Displaced Persons on the rolls of the Company was 5693.

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    * (Figures in brackets show no. of candidates selected on merit out of total appointed)** (No direct recruitment in Group-B posts)

    CATEGORY GENDER PWD EX-SERV DPGroup

    Grand

    TotalGEN OBC SC ST Women Men No. % No. %

    A 5263 3490 527 864 382 292 4971 10 0.19 6 0.11 159

    B 2370 1787 78 376 129 52 2318 11 0.46 1 0.04 885

    C 7710 5396 565 1214 535 88 7622 56 0.73 94 1.22 2503

    D 2487 1830 137 394 126 51 2436 18 0.72 43 1.73 2146

    Grand Total 17830 12503 1307 2848 1172 483 17347 95 0.53 144 0.81 5693

    GROUP TOTAL STRENGTH SC(No) S C (%) ST(No) S T (%)

    A 5263 864 16.4 382 7.3

    B 2370 376 15.9 129 5.4

    C 7710 1214 15.7 535 7.0

    D 2487 394 15.8 126 5.1

    TOTAL 17830 2848 16.0 1172 6.6

    Received during the Period

    (1.4.2009 to 31.3.2010)

    01

    Redressed during the Period

    (1.4.2009 to 31.3.2010)

    01

    Representation of Scheduled Castes (SC) and Scheduled Tribes (ST) :

    The group-wise representation of SCs and STs in the Company as on 31-03-2010 is as follows:

    (1) (2) (3) (4) (5)

    A 122 29 9 25(3*) 7

    B** - - - - -

    C 599 75 33 105(6*) 45(1*)

    D 100 30 14 18(2*) 4

    Total 821 134 56 148(11*) 56(1*)

    Class of

    Posts

    Total no. of vacancies

    filled

    No. of vacancies

    reserved for

    No. of candidates

    appointed

    SC ST SC ST

    Posts Filled by Recruitment :

    Group Distribution of Manpower as on 31.3.2010 :

    GRIEVANCE REDRESSAL MECHANISM

    Public Grievances

    The system of redressal of Public Grievance has been streamlined, and its scope broadened to include complaintsof suppliers, customers, etc. and systematic recording of receipt and disposal of such grievances are being carriedout. To provide required thrust in this area, a senior executive in the rank of General Manager has been nominated

    as Officer on Special Duty (OSD) to handle and monitor the public grievances centrally. All Heads of Departmentshave been advised to accord due priority for redressal of public grievances as per time frame in each department.The status on public grievances received vis-a-vis is given below :

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    Employees' Grievances

    RINL has a well laid down procedure for handlingemployees' grievances through committee system viz.

    Area Grievance Redressal Form (AGREF), CentralGrievance Redressal Form (CENGREF). The redressalof employees' grievances are coordinated by the Zonal

    Personnel Executives who send monthly progress reporton the number of employees' grievances received andredressed etc. for compilation, computerization and

    monitoring. The entire system of redressal of grievancesis monitored centrally by Personnel CoordinationSection. The status on employees' grievances received

    vis-a-vis redressed/ disposed off is given below :

    SAFETY & HEALTH

    Safety is given due importance and the implementationof OHSAS 18001 has ensured a safe work culture inthe organization. RINL-VSP was successfully certified

    for the latest version of OHSAS 18001:2007 in May'09. Continuous efforts on the implementation of safetystandards, monitoring of risk control and other proactive

    measures have resulted in reduction / elimination ofpotential hazards.

    More than 2500 Nos. of Hazard Identification and RiskAssessment sheets were prepared for fulfilling the OHSAS18001:2007 certification criteria. Plant level mock drill

    was conducted at Crude and Finished Products Storagetanks of Benzol Plant in Jun '09 for testing the emergencypreparedness of the plant in the presence of Jt. Chief

    Inspector of Factories and Inspector of Factories.Comprehensive Risk Assessment (HAZOP, HAZAN,Emergency Planning, Safety Audit, etc.) activity has been

    awarded to an external agency and the work started inSep '09.The following proactive measures were also undertaken

    to inculcate safety awareness:

    Organization of interactive sessions betweencontract workers, contract supervisors andrecognized trade union representatives on "working

    at height".

    Safety training programme on "Site safety and Roadsafety"

    Safety appliances exhibitions were organized.

    Campaign on "Hazards of using mobile phone while

    driving" was conducted.

    A lecture on "Construction Safety" by Jt. ChiefInspector of Factories was organized covering In-charges of Projects and supervisors of contractors.

    A National Workshop on "Designing for Safety andChange Management" was organized jointly byDepartment of Factories and National Safety

    Council-AP Chapter during Dec 2009.

    CORPORATE SOCIAL RESPONSIBILITY

    RINL in its own way is committed to social upliftmentand is aware of its obligations to the society and is in theforefront of serving the society through its CSR initiatives.

    2% of its net profit is earmarked for CSR activities. The

    CSR initiatives cover Environmental care, Education,Health care, People care, Peripheral development,

    cultural Efflorescence, Help during Natural Calamitiesand as a Responsible Corporate Citizen rendering anhelping hand to lead a meaningful life etc.

    The year 2009-10 has been the year of CSR andemphasis was upon all the thrust areas mentioned in

    our CSR Policy. The company had committed an amountof Rs 1275 lakhs towards CSR during 2009-10. Theemphasis was on creation of assets in the form of

    infrastructure so that the future generations arebenefitted thereafter. With the same approach CSRProjects were executed during this year, details of which

    are as under:

    Environmental Care :

    (Value: Rs.18.80 Lakhs & beneficiaries : 1300 approx.)

    Through CSR we have executed a unique project named"Jaladhara" by which the acute problem of drinkingwater in tribal areas of Visakhapatnam district has been

    addressed. The flow of water from natural spring tostorage tank is due to gravity and does not require anyelectrical power supply to operate. The supply is

    Redressed/Disposed of

    during the period(1.4.2009 to

    31.3.2010)

    33

    Received during the

    Period (1.4.2009 to31.3.2010)

    34

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    Sewing machines and wet grinders worth Rs. 0.85

    lakhs have been distributed to 20 persons at lowesteconomic strata to help them to start earning.

    Utensils, Glasses, Hearing Aids, Tricycles weredistributed to poor and needy children.

    Support was extended for conducting District level

    Foot ball & hockey tournaments and other Sportsevents amounting to Rs.23.55 Lakhs benefittingabout 6800 people.

    Towards empowerment for women and unemployedyouth, vocational training prog rammes were

    organized through Jan Shikshan Samsthan at anexpenditure of Rs.6 Lakhs and 500 people havebeen given training.

    Support given to Police Deptt. for procuring ALCOmeters with a cost of Rs.5.27 Lakhs, which is

    used to test drunken drivers.

    Peripheral Development :

    (Value: Rs.16.50 Lakhs & beneficiaries : 350 approx.)

    One of the CSR's primary objectives is peripheral

    development. Number of projects like communitywelfare centres in RH Colonies and peripheral villages,Hostels for SC/ST students, School building for

    differentially abled children, Mother Blood bank for IRCS

    were taken up and are continuing. Anganwadi building,Kitchen for mid-day meal program in school(with a costof Rs.6.5 Lakhs benefitting about 200 children), Kitchen

    room & Toilet blocks for schools (with Rs.10 Lakhsbenefitting about 150 students) were constructed tohelp the peripheral areas.

    Cultural Efflorescence :

    (Value: Rs.6.30 Lakhs & beneficiaries : 1200 approx.)

    A ballet on "Telugu Prasthanam" was organizedduring " Vidyalaya Diwas" through AP State Official

    Language Commission, bringing together thechildren of Ukkunagaram on to a platform of culturalefflorescence.

    Support given to World Music Day & SPICMACAYprograms

    As a Responsible Corporate Citizen :

    CMD / RINL presenting a Cheque of Rs. 8 Lakhs toDermatology Department of King George Hospital,Visakhapatnam.

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    Community Welfare Centre wing at Durgavani Palem

    Help during Natural Calamities :

    (Value: Rs.500.00 Lakhs & beneficiaries : 7,00,000

    approx.)

    During the calamitous floods in Andhra Pradesh, RINL

    came forward to mitigate the sufferings and Rs 500

    lakhs was donated to the Chief Minister's Relief Fund

    in addition to contribution from VSP employees. About

    7 Lakh people are benefitted.

    As a CSR initiative, Computer Training was given to 187

    school children and Apprenticeship training was

    imparted to 272 and Vocational & Industrial Training

    was given to 5112 and 413 Plant Visits were organised

    covering 2029 visitors during the year. Under CSR

    initiative, 2 day Training Programme on "Towards

    Teaching Excellence" was organized in association with

    UGC Academic Staff College of Andhra University for

    Teachers of GVMC High Schools on 2nd and 3rd March,

    2010. 40 GVMC High School teachers have attended

    this programme. 8 No. of Cultural Programmes were

    organized at VSP Schools by SPICMACAY

    Under "Promotion of Free Education" scheme which was

    introduced in the year 2007 as a CSR initiative at

    Visakha Vimala Vidyalayam (VVV) (Ukkunagaram & BC

    Road), in total 225 students (i.e. 185 in VVV-

    Ukkunagaram & 40 in VVV- BC Road) were admitted in

    the year 2009-10. The expenditure towards school bus

    including, road tax, insurance, fitness certificate was

    provided to Arunodaya Special School for differentially

    abled children.

    TOWN ADMINISTRATION

    The Company, for the benefit of its employees, is having

    a Township with residential units with greenery all

    around. The maintenance of the Township is done

    professionally and 5 S Certificate was awarded for it

    in March '10 by the external auditors. Other initiatives

    include round the clock IVRS system for redressal of

    complaints, separate portal on intranet for online statusand application of maintenance related activities etc.

    MEDICAL AND HEALTH SERVICES

    The Company has an in-house full fledged GeneralHospital extending medical facilities not only to its ownemployees residing in Ukkunagaram but also to othernon-entitled persons in the vicinity/neighbouring areas.The Company believes that all employees has the rightof access to health care. Some of the initiatives takenup in this direction are :

    Creating awareness of various preventable diseases

    especially during epidemic of "SWINE FLU". Anumber of awareness programmes were conductedduring the year including Mines at Jaggayyapetaand Madharam. A special clinic was also startedfor the same.

    Conducting various medical camps; De-addiction, Eyescreening, Child immunization, AIDS awareness etc.

    Awareness programmes on nutrition and hygiene,early detection of breast and cervical cancer andosteoporosis;

    An unique programme of immunization against

    Hepatitis-B for 1500 school children from the areasin and around Rehabilitation colonies;

    Medical Services were extended to far flung placeslike Araku, Tenang etc.

    Health days like World Health Day, World AsthmaDay, World Diabetes Day, National Voluntary BloodDonation Day etc. were observed.

    The Hospital was augmented with new advanced andsophisticated equipment for improving the facilities andbetter health care; Training to medical and para-medical

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    staff was given by the Specialists themselves whoupgraded their areas with new equipments.

    An amount of Rs.28.63 lakhs could be earned by theHospital from Non-entitled cases (Non-VSP cases)

    reflecting the quality of services rendered;

    Other initiatives include implementation of 5S in MedicalAdmn Wing and securing 2nd Best QC Team in 20thNational Convention etc.

    IMPLEMENTATION OF RIGHT TO INFORMATION

    ACT 2005:

    During the year, out of 216 requests received, 179

    have been disposed off by providing information to the

    concerned, 4 were rejected as per the provisions of

    the Act and 30 requests are pending as on 31.3.2010.

    A one day Round Table meeting with local Central PublicSector Enterprises employees was organised in

    September 2009. A one day Training cum Workshop

    for the officers of the Company was conducted in

    January 2010 dealing with RTI matters.

    All the requisite information has been updated on the

    Company's website in accordance with the requirement

    of Section 4 (1) of the Right to Information Act.

    Statutory reports like Monthly Returns, Quarterly

    Reports, Annual Returns, Annual Reports and any other

    reports as and when asked for are compiled andforwarded to the Ministry.

    A Guide on implementation of RTI Act-2005, FAQ and

    important CIC decisions has been placed in the

    Company intranet for the benefit of the officers dealing

    with RTI matters regularly in the organisation.

    COMPLIANCE WITH LAW/LEGAL REQUIREMENTS :

    The Company has put in a separate Intranet Portal on

    the Legal Affairs of the Company. In terms of the

    Guidelines issued by the Government, a Quarterly

    Report on the progress of Arbitration cases is being putup to the Board of Directors for Information. An Internal

    Reporting System has been introduced indicating the

    progress of the cases in various Courts indicating the

    status of the cases as at the beginning of the year and

    also at the end of the year for monitoring the progress

    by the Management.

    PROGRESSIVE USE OF HINDI

    The Company continued its efforts to implement the

    Official Language Policy of the Government. During the

    year, Special Hindi Workshops were conducted for the

    Sr. Officers in which 103 officers have been trained. A

    National level Hindi Seminar was organised on the topic

    viz. 'Importance of building good habits in Industrial

    Employees' in which 54 delegates have participated

    from the Company and other organisations. A special

    issue viz. 'Sanskar' has been released on this occasion

    containing the articles of the delegates. Hindi Week

    celebrations were organised at Headquarters and

    various Branches and Regional Offices. Var ious

    competitions in Hindi have been organised for the

    students, employees and their dependents. 4 issues

    of Hindi In-House Magazine "Sugandh" were also

    published. 4 Hindi Workshops were organised in which

    117 employees were trained. 72 employees were

    trained on computers in Hindi. 200 employees havebeen trained in Hindi Prabodh/Praveen courses. Hindi

    classes are also organised separately for the

    housewives. A five day Hindi Translation Training

    programme has been conducted in March, 2010 by

    Central Translation Bureau, Ministry of Home Affairs in

    which 30 employees of the Company and 3 employees

    of CISF were trained. Hindi inspections were conducted

    in various Units of the Company and necessary

    assistance was extended.

    Prestigious Indira Gandhi Rajbhasha Shield was

    awarded to the Company. CMD, RINL received this

    Shield from Hon'ble President of India on 14th

    September, 2009.

    WOMEN EMPOWERMENT

    Women employees have been associated in appropriate

    Committees to provide for an opportunity of exposure

    and development. Special programmes for women

    employees have been organized by HRD directly and

    also through the Women in Public Sector Undertakings

    (WIPS) which has been formed in the Company since

    1997 under the aegis of SCOPE.

    Training and Development programmes aimed at career

    advancement, women empowerment, personality

    development, gender sensitization, safety awareness,

    occupational health, osteoporosis awareness,

    interpersonal skills, computer skills, communication

    skills, capacity building, work life balance leadership

    and safe and healthy living etc. have been organized.

    During the year, about 461 women employees were

    covered in such programmes.

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    In addition to the above, the following programmes were also conducted exclusively for women :

    Safety awareness and Occuptional health programme for women contract workers covering 45 participants.

    Osteoporosis Awareness programme covering the ladies from all walks of life i.e. employees of VSP, PSUs and

    Schools in the township, CISF and housewives, in association with Visakha Steel General Hospital was madefor about 300 nos. About 145 women underwent Bone Mineral Densitometry (BMD) tests in this program.

    As a part of National Adolescent programme, an education programme was conducted for 300 girls ofKendriya Vidyalaya at Ukkunagaram;

    In pursuance of the Honble Supreme Courts Judgement and keeping in view the Government instructions/guidelines

    on sexual harassment of women at work places, a Committee headed by a woman officer was constituted toinquire into the complaints of sexual harassment at work places. A provision in this regard has also been incorporated

    in the Conduct, Discipline and Appeal Rules / Standing Orders of the company.

    During the year under report, no incidence of sexual harassment of women or discrimination amongst women

    employees on the basis of gender has been reported.

    Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

    The status of implementation of Persons with Disabilities (Equal Opportunities, Protection of Rights and FullParticipation) Act, 1995 during 2009-10 is furnished below:

    The details are as follows :

    Total

    Number of employeesappointed after the Act

    came into force

    (i.e. 7-2-1996)

    Direct recruitment

    (during Fin. year 2009-10)

    Promotion

    (during Fin. Year 2009-10)

    No. of vacancies

    reserved

    No. of appointments

    made

    No. of

    vacanies

    reserved

    No. of

    appointments

    VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH

    Group A 130* 2 1 4 1 2 1 11* 1 - 2 NIL NIL NIL NIL NIL NIL NIL

    Group B - - - - - - - - - - - NIL NIL NIL NIL NIL NIL NIL

    Group C 1379 10 10 18 6+1# 5+2# 3+1# 599 2+1$ 1+ 1$ 7+3$ Nil - - - - - -

    Group D 290 3 4 3 2# 2# 2# 100 1$ 1$ 1$ - - - - - - -

    Total 1799 15 15 25 7+3# 7+4# 4+3# 710 3+2$ 1+2$ 9+4$ - - - - - - -

    Group

    I In house Management Development Programmes 134

    Exclusive Women Programmes

    a) Women Development 2 Programmes

    b) Gender Sensitivity 2 144

    Programmesc) Outbound Programme 1

    II External Nominations 49

    Total 327

    III Programmes conducted 4 105

    for housewives

    DetailsNo. of Programmes

    conductedNo. of

    participants

    S.No.

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    With a view to encourage and support physically challenged children of RINL employees, the following scholarships

    are provided:

    Further, the following actions have been taken in RINL/Visakhapatnam Steel Plant for the convenience of differentiallyabled persons visiting different offices in Main Administrative Building i.e. the Corporate Office of RINL/VSP.

    i) Ramp way

    ii) Auditory signal in both the Lifts of the building.

    iii) Provision of a wheel chair at the Reception Centre located at the entrance of the Main Administrative Building.

    Applicable for

    Children of employees with the following

    disabilities who are pursuing studies in

    any course in a Recognized School/

    College/General or Vocational Institute:

    Blindness

    Hearing impairment

    Locomotors disabilityMental retardation

    Mental illness

    Cerebral Palsy

    Criteria forSelection

    Amount ofScholarships

    No. ofScholarships

    Nature and extent of

    disability of the child and

    the extent to which the

    training/education would

    help in rehabilitation of

    the child, as assessed

    by the Committee

    consisting of 4 memberseach from Medical,

    Sports, F&A and

    Personnel

    Rs. 750/- per month

    for a period as

    recommended by

    the Committee

    6 (six) Per

    annum

    WELFARE ACTIVITIES :

    The following National and Other Functions were organized :

    S.No. Name of the Function Date

    1 Independence Day Celebrations 15-08-2009

    2 Republic Day Celebrations 26-01-2010

    3 RINL Formation Day Celebrations 18-02-2010

    * Posts identified for disabled

    # Recruitment under process

    $ Posts were notified prior to 1-4-2009 but joinings took place during 2009-10Note :

    (I) VH stands for Visually Handicapped (persons suffering from blindness or low vision)

    (ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)

    (iii) OH stands for Orthopaedically Handicapped (persons suffering from locomotor disability or cerebral palsy)

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    Other Scholarships :

    Nature of Award Eligibility Criteria Award givenNo of

    Awardees

    Total

    Amount

    (Rs.)

    Dr. B R Ambedkar AnnualMerit Cash Awards

    Dr. Sarvepalli Radhakrishnan Merit Cash

    Awards

    Col. CK Nayudu SportsCash Awards

    First or Second position in X exam among VSP

    schools including those at Mines for the

    academic year 2008-09

    Admission in IITs, IIMs, IISc, ISI, AIIMS, AFMC -Pune, JIPMER during the year 2009-10

    International Participation or 1st Prize in Nationalsconducted by respective Federation of India or

    National Schools Games and Sports etc. during

    the year 2008-09

    Rs. 500/- for1st position

    Rs. 250/- for2nd position

    Rs. 5000/-

    Rs. 5000/-

    54

    27

    22

    20,250

    1,35,000

    1,10,000

    The following Ceremonial Functions were organized :

    An amount of Rs. 7.42 crores was released during 2009-10 towards Salaries & other Administrative expenditure toKendriya Vidyalaya, DAVC Public School and Visakha Vimala Vidyalayams at Ukkunagaram & BC Road.

    Jawaharlal Nehru Awards -"Jawaharlal Nehru Awards" are being given every year on RINL Formation Day (18thFebruary of the year) Celebrations, to the VSP employees in recognition of their outstanding performance. 24Executives and 36 Non-Executives have been bestowed with 'Jawaharlal Nehru Awards' in the year 2009-10.

    Under welfare measures, the Company is extending scholarships to the children of RINL's Employees. The detailsare as follows :

    CategoryGroup-1

    (Professional Courses)

    Rs. 1,500/- p m

    Group-II

    (Degree/Diploma)

    Rs. 750/- p m

    Group-III(+2/

    lntermediate)

    Rs. 400/- p m

    Total

    General 11 3 11 25SC 4 - 5 9

    ST 2 - 2 4

    Sub Total 17 3 18 38

    6 scholarships @ Rs. 750/- p m each are provided to Physically Challenged children of RINLs Employees for studying any

    class/course.Total No. of Scholarships 44

    S.No. Name of the Function Date

    1 Dr.Babu Jagjeevan Ram Jayanthi 05-04-2009

    2 Bharat Ratna Dr.B.R.Ambedkar Jayanthi 14-04-2009

    3 Alluri Seetha Rama Raju Jayanthi 04-07-2009

    4 Dr. Tenneti Viswanadham Jayanthi 21-09-2009

    5 Mahatma Gandhi Jayanthi 02-10-2009

    6 T Amrutha Rao Jayanthi 21-10-2009

    7 Garlanding of Telugu Thalli on AP Formation Day 01-11-2009

    8 Jawaharlal Nehru Jayanthi 14-11-2009

    9 Bharat Ratna Indira Gandhi Jayanthi 19-11-2009

    10 Dr. B R Ambedkar Vardhanthi 06-12-2009

    11 Mahatma Gandhi Vardhanthi 30-01-2010

    12 Potti Sreeramulu Jayanthi 16-03-2010

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    Management has released an amount of Rs.7.25 Lakhs as a matching grant to the Community Welfare Centres

    (CWCs) for the year 2009-10 for the various social activities.

    Special Casual Leave was sanctioned for 18 employees who had participated in National Desert Trekking Expedition

    and in National Himalayan Trekking Expedition during the year 2009-10.Sponsored 42 employee-artists who participated in various cultural programmes organized by Nandi Natakotsavam-

    2009 (AP TV & Film Development Corporation, Govt, of A.P at Nizamabad) and other associations during the year2009-10.

    Employee Family Benefit Scheme (EFBS) :The Scheme was introduced on 1st August 1995 for the benefit of

    dependents of deceased employees of the Company and medically unfit cases. The details of EFBS cases are givenbelow :

    943 persons [(Couple-416*2=832 & Single-111) (Retired employees & their Spouses and spouses of Deceased

    employees)] were covered under Group Mediclaim Insurance Scheme till the year 2009-10.

    Employees Superannuation Benefit Fund

    Employee Superannuation Benefit Fund has been created and in existence for more than a decade and the

    beneficiaries were regularly paid the monthly amounts.

    PROMOTING WORK ETHICS/ VIGILANCE ACTIVITIES :

    Vigilance Department has taken various measures for promoting transparency, fairness and equity in RINL. As a

    part of preventive vigilance, studies were undertaken on the procedures being followed in purchases, sales andaward of contracts, examination of contracts and purchase orders and surprise checks relating to quality and otheraspects, weighments of material moved by rail and road, scrutiny of bills, study of audit reports and surveillance at

    sensitive areas etc. were carried out. Observations made alongwith suggestions for bringing about systemicimprovements were communicated to the concerned departments. Various activities intended to create vigilanceawareness were taken up among the various stake holders including the employees.

    Through e-auction, e-reverse auction and e-payments, IT was leveraged in key areas for promoting fairness andtransparency and also for deriving advantage for the company. RINL website has been used for making relevantinformation available to the stakeholders.

    Quality Manual of Vigilance Department was reviewed and updated to bring it to the ISO 9001:2008 standard.

    A seminar on Implementation of Integrity Pact in Central Public Sector Undertakings was organized by RINL forsharing experience among the CPSUs which have adopted or are in the process of adopting IP Programme.

    A host of activities were organized on the occasion of the Vigilance Awareness Week - 2009 which includedactivities like slogan competition among employees and inviting suggestions from employees on leveraging ofInformation Technology for promoting greater transparency, fairness and equity in all dealings. Interaction sessions

    were also organized with contractors, vendors and customers of RINL. In order to extend the reach of the vigilanceawareness drive, the children and women were also covered in the activities organized during the Vigilance Awareness

    Week. This was done by conducting various competitions among women and children. Essay writing competitionswere held among the students of Zilla Parishad Schools located in and around the Steel Plant and essay writing andelocution competitions were held among the students of schools located in Jaggayyapeta and Madharam where

    RINL has its captive mines.

    No. of EFBS Beneficiaries joined during the year 2009-10 70

    Total No. of EFBS Beneficiaries 719

    Total no. of Exit (closed) Cases 81

    Total No. of Existing EFBS Beneficiaries on 31stMarch 2010 638

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    AWARDS AND ACCOLADES :

    RINL was the first recipient of the prestigious SteelMinisters Trophy for best integrated steel plant for

    2006-07. RINL won the Energy efficient unit conferred by CII

    at the 10th National Award for Excellence in EnergyManagement.

    Two Quality Circle (QC) teams of RINL participated

    at ICQCC-2009 held at Cebu, Philippines duringOctober 2009 and won One Gold and One Bronze

    medal.

    Twenty QC Teams participated in National Conventionon Quality Circles conducted by Quality Circle Forumof India (QCFI) at Bengaluru during December 2009.

    Seven QC teams won Par Excellent and Thirteenteams won Excellent awards for the presentations.

    Two QC teams participated at CII State level QC

    competitions held at Hyderabad during Nov 09 andthe one team won 3rd prize.

    RINL has won INSSAN Award for excellence inSuggestion Scheme (First prize) under Steel Units

    category in the National level from Indian NationalSuggestion Schemes Association (INSSAN),Mumbai.

    5S Teams from departments of RINL bagged Par

    Excellent awards during National Convention onQuality Circles - 2009 held at Bengaluru.

    RINL was declared National Champions of National

    Management Quiz - 2009 conducted by All IndiaManagement Association

    AUDITORS

    M/s B V Rao & Company, Visakhapatnam have beenappointed as the Statutory Auditors of the Companyfor the year 2009-10 by the Comptroller and Auditor

    General of India.

    MANAGEMENT DISCUSSION AND ANALYSIS

    REPORT

    The Management Discussion and Analysis Report, isannexed and forms part of the Directors Report.

    CORPORATE GOVERNANCE REPORT

    The Company strives to attain highest standards ofcorporate governance. In line with the Guidelines issued

    by Department of Public Enterprises, a separate sectionon Corporate Governance is annexed and forms part ofthe Directors Report.

    Certificate attested by the CEO/CFO is also form part of

    the Corporate Governance Report along with declaration

    signed by CMD regarding Code of Conduct for Membersof the Board and Senior Management.

    CERTIFICATE ON COMPLIANCE OF GUIDELINES ON

    CORPORATE GOVERNANCEThe Cert