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Director's Report

Steel Authority of India Ltd
Industry :  Steel - Large
BSE Code
ISIN Demat
Book Value()
500113
INE114A01011
140.8909309
NSE Symbol
P/E(TTM)
Mar.Cap( Cr.)
SAIL
14.83
70177.62
EPS(TTM)
Face Value()
Div & Yield %
11.46
10
1.38
 
As on: Oct 27, 2026 06:09 PM

To, The Members,

Steel Authority of India Limited, New Delhi

The Board of Directors has the pleasure of presenting the 54th Annual Report of Steel Authority of India Limited (SAIL, the Company) together with the Audited Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2026.

A. FINANCIAL REVIEW

Financial Results (Rs. crore)

Standalone Year ended
Particulars 31st March, 2026 31st March, 2025
Audited Audited
1 Income
(a) Revenue from operations 110810.24 102478.19
(b) Other income 1151.08 1134.41
Total Income 111961.32 103612.60
2 Expenses
a) Cost of materials consumed 44358.14 48952.89
b) Purchase of stock-in-trade 5507.39 1856.98
c) Changes in inventories of finished goods, work-in- progress and by- products 5156.85 92.13
d) Employee benefits expense 11392.17 11658.64
e) Finance costs 2158.10 2792.77
f) Depreciation and Amortisation expenses 5985.42 5649.57
g) Other expenses 32401.17 29288.26
Total Expenses 106959.24 100291.14
3 Profit before Exceptional items and Tax 5002.08 3321.46
Add / (Less): Exceptional items (668.22) (312.64)
4 Profit before Tax 4333.86 3008.82
Less: Tax expense
Current tax 1397.10 815.15
Deferred tax (296.72) 45.71
Total Tax expense 1100.38 860.86
5 Net Profit for the period 3233.48 2147.96
Other Comprehensive Income (OCI)
(i) Items that will not be reclassified to profit or loss (66.14) (325.87)
(ii) Income tax relating to items that will not be reclassified to profit or loss 32.49 84.57
6 Total Comprehensive Income for the period 3199.83 1906.66

Your Company achieved the Sales Turnover of Rs.1,09,966 crore during the Financial Year (FY) 2025-26, which is higher by 8% as compared to corresponding period of last year (CPLY) mainly due to increase in Sales Volume by 11%. During the FY 2025-26, the increase in profitability as compared to CPLY is mainly on account of higher production of Saleable Steel (7%); lower imported and indigenous coal prices; lower usage of Power/LPG, Indigenous coal External coke, Ferro Alloys, etc.; improvement in Techno-economic parameters like Coke Rate, Specific Energy Consumption, BF Productivity, etc.; higher interest income and other non-operating income, lower salary and wages and interest expenses, higher sales and profit on sale of iron ore lump/fines/tailings/dump fines, etc.

However, the increase in the profitability was partially offset by lower Net Sales Realisation of Saleable Steel (-2%); higher usage of imported coal, iron ore, etc.; negative impact of stock valuation; higher expenditure on Store and Spares, Repair & Maintenance, Power and Fuel, Demurrage, Security expenses; higher royalty rates; negative impact of exceptional items; loss on account of foreign exchange fluctuation; and higher depreciation; etc.

Your Company continued its thrust on judicious fund management with timely repayment of loans including interest as well as prudently planning in advance and taking timely action for raising future fund requirement, etc. to meet its operational and strategic growth objectives. The Company had borrowings of Rs.31,922 crore as on 31st March, 2026 vis-a-vis Rs.36,934 crore as on 31st March, 2025 (INDAS). The debt equity ratio of the Company as on 31st March, 2026 at 0.55:1, as compared to 0.66:1 as on 31st March, 2025. The net worth of the Company increased to Rs.58,195 crore as on 31st March, 2026 from Rs.55,656 crore as on 31st March, 2025. The interest and finance charges on operation account during the FY 2025-26 at Rs.2,158 crore are lower by Rs.635 crore over CPLY.

The Board of Directors of your Company has recommended a Final Dividend of Rs. 2.35 per equity share, subject to approval of Members in the ensuing Annual General Meeting of the Company. No amount has been transferred to General Reserve during the year under review.

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

B. OPERATIONS REVIEW

Safety

Safety First: Your Company is committed to the safety of its employees and the people associated with it, including those living in the neighbourhood of its Plants, Mines and Units. SAIL Safety Organization (SSO) centrally monitors and guides the Safety Promotional and Fire prevention activities undertaken at different Steel Plants/Units/Mines/ Stockyards. SSO formulates and prepares appropriate Safety Policies, Procedures, Systems, Action Plans, Guidelines, etc. and follows up for their implementation, and thereby, helps in providing Accident-free Work Environment at the workplace. Plants are ISO-45001 certified, which is an advanced Safety Management System and as a compliance to this, Hazard Identification and Risk Assessment (HIRA) has been conducted for most of operation & maintenance activities using techniques like Bow-tie/HAZOP studies, etc. as applicable and appropriate Risk control measures have been formulated and implemented to either eliminate the risk or bring it to acceptable limits.

Safety aspects, specific to the jobs, have been incorporated in Standard Operating Procedures & Standard Maintenance Procedures (SOPs & SMPs) which helps in integrating safety with operations and maintaining necessary technological discipline. System of conducting safety audits and inspections is in vogue and observations, if any, are complied with at the earliest. Prioritising safety foremost, the Company has engaged Safety Management Consultant for Safety Culture Transformation, at its Plants in Bhilai, Bokaro, Rourkela, Durgapur and Burnpur. Thrust is being laid on developing safety governance structure, framing technical standards, improving safety through behavioural interventions, containing risk in high hazard processes, etc. Relentless efforts are also being made by Plants and SSO for competence building in the area of Safety Management through regular HRD interventions, LEO workshops, webinars, etc., in-house as well as through external experts, on areas of concern covering Heads of Shops, Line Managers, Safety Personnel and Trade Union leaders. System of imparting safety training at induction and on-the-job trainings to contract workers prior to start of jobs, exists in all the Plants and Units. Intensive on-the-job training programs, skill-development programs including Recognition of Prior Learning (RPL) scheme are conducted to promote safe working. Recognizing that human behavior plays a critical role in preventing accidents and unsafe acts, a strong thrust has been laid on Behavioural interventions.

SSO has recently launched many new initiatives to reach the bottom strata of the Company. An initiative called ‘Suraksha Manthan' has been taken up for achieving Zero Fatality, with the participation of Heads of Safety of all Plants/Units, where learnings from incidents/Near Miss cases, good safety practices across Plants/Units are discussed and followed up for its implementation. ‘Sukriti' – a compendium of good practices prevailing in the steel industry, has been prepared with a view to promote learning from the best practices of the industry. In addition to this, ‘Suraksha Samvad' – a VC session is being conducted after any major incident or Near Miss case among concerned domain experts from all the Plants & Units, with a view to discuss the root causes, share good practices of each other and bring out mitigation measures through technical interventions. Also to bring all the steel producers of the Country with their domain experts along with safety personnel under one platform, SSO has constituted Safety Operating Committee (SOC) to address the theme-based issues. Meetings of the Committee are held yearly in different Plants with new themes. 3rd meeting of SOC on the theme: ‘Safety in Rolling Mill Operations' was held at RSP during 16th–17th January, 2026. In this regard, Customised animations were prepared by SSO and Plants for enhancing learning and to better understand the risk perception of the associated risks. As a bottom-up approach, Safety Circle scheme was launched to enhance employee involvement in proactive risk management and strengthen the safety culture.

Benefits of technology are leveraged by extensive utilization of IT in the area of Safety Management, by way of web portals for sharing important information, safety suggestions, etc. In this respect, a Centralised Safety Portal was launched by SSO to capture and analyse the incidents. Good Safety Practices prevailing in the Plants & Units and other industries are captured and circulated among all for horizontal deployment, knowledge sharing and bringing improvement in the Safety Culture. A multi-disciplinary Safety Engineering Department exists in each of the Steel Plants and Mines to look into their respective safety requirements. The emphasis is on Systematic Approach to Safety Management. SSO is also managing the secretariat of the Joint Committee on Safety, Health & Environment in the Steel Industry (JCSSI), a bipartite forum which addresses Safety, Health & Environment issues of the Steel Plants with active involvement of Management and Central & Plant level trade unions and provides guidelines to the member organizations. Acknowledging the importance of Safety, the activities and measures undertaken are reviewed at the highest level by the Board Sub Committee on Health, Safety & Environment.

Operations

During the FY 2025-26, the Indian Steel Sector witnessed a challenging Global steel market. Inspite of facing formidable challenges, like uncertain geopolitical situation, environmental concerns, intense competition and infrastructure bottlenecks (particularly in logistics and transportation), your Company created new benchmarks, achieved significant milestones, displayed remarkable resilience, adaptability throughout the year. SAIL successfully mitigated market challenges to achieve record operational highs in FY 2025-26, driven by technological upgrades, digitalization, human resource initiatives, sustainability efforts like decarbonisation, etc.

During FY 2025-26, your Company achieved several milestones in productivity, techno-economics, value added products and new product development. These accomplishments were made possible by commitment to operational excellence and a strategic focus on enhancing the quality of input raw materials. Key enablers facilitating better techno-economic parameters includes improvement in furnace stove health, commissioning of new stoves, enhanced oxygen enrichment, higher Fe content in burden through increased Pellet usage, Beneficiation and Lump crushing. During FY 2025-26, SAIL achieved its best-ever annual performance in Crude Steel at 19.43 million tonnes (MT), Finished Steel at 16.95 MT and Saleable Steel at 19.18 MT. In addition to this, your Company also achieved, its best annual performance in respect of Techno-economic parameters like Coke Rate at 419 kg/thm, Fuel Rate at 553 kg/thm, BF Productivity at 2.09 t/m3/day and Specific Energy Consumption at 6.18 G.cal./tcs owing to focus on enhanced capacity utilisation of bigger Blast Furnaces (BF), optimisation of BF operations and sustained focus on productivity, energy efficiency & cost competitiveness. Further, there was significant growth of 7% in production of Finished Steel and Saleable Steel.

The Research and Development Centre for Iron & Steel (RDCIS) of the Company provided innovative technological inputs to different Plants of SAIL, with special emphasis on process and quality improvement, product development and commercialization. The continuous activities in respect of product development have led to development of 28 new Steel Products during FY 2025-26.

Bhilai Steel Plant (BSP) registered the highest-ever annual production in Hot Metal & Finished Steel and best ever performance of various units like Blast Furnace-8, Steel Melting Shop-3, URM and BRM. BSP also recorded highest ever production and dispatch of Long Rails. On techno-economic front, BSP recorded its best ever Blast Furnace productivity, Coke Rate and Specific Energy Consumption, reflecting enhanced process efficiency.

Durgapur Steel Plant (DSP) recorded highest ever Finished Steel production driven by record production at Medium Structural Mill (MSM) and Merchant Mill (MM). The first consignment of indigenously developed Vande Bharat wheels was _agged off on 20th June, 2025, from Wheel & Axle Plant. This marks the rollout of the first-ever Make in India wheels for India's flagship semi-high-speed train, Vande Bharat Express.

Rourkela Steel Plant (RSP) achieved its best ever annual production at both its Blast Furnaces (BF#1 & BF#5). Record performance at Hot Strip Mill-2 (HSM-2) and New Plate Mill (NPM), underlines improved Mill utilization. With regard to techno- economic parameters, RSP achieved best-ever Coke Rate and Blast Furnace Productivity, thereby demonstrating significant gains in energy and operational efficiency. During the FY 2025-26, a new Caster-4 of SMS-II was commissioned, thereby, further augmenting Crude Steel production capability.

Bokaro Steel Plant (BSL) achieved its best ever annual performance for Blast Furnace-1&2, highlighting improved furnace stability and campaign efficiency. Record production was also achieved from SMS-New, Hot Strip Mill (HSM), Cold Rolling Mill-III (CRM-III) and Total Cold Roll Saleable Steel. In addition to this, best ever annual production was also achieved for Finished Steel and Saleable Steel. Further, HSM successfully rolled Chequered Coil for the first time, marking a key milestone in product diversification, capability enhancement and fulfilling market demand with higher Net Sales Realization (NSR) realization, further strengthening the market share and value added product portfolio.

At IISCO Steel Plant (ISP), best ever annual Production was recorded in Hot Metal and Crude Steel during FY 2025-26, reflecting improved furnace availability and campaign efficiency. In addition to this, record production was also achieved for Bar Mill, Universal Section Mill (USM), Finished Steel and Saleable Steel.

During FY 2025-26, Alloy Steels Plant enhanced Crude Steel and Saleable Steel production through process modifications. Salem Steel Plant recorded its best ever annual production of Stainless Steel. Meanwhile, at Visvesvaraya Iron and Steel Plant, efforts are underway to identify effective measures to restore the Plant's profitability.

During FY 2025–26, a strong emphasis on maximizing productivity through the optimal utilization of efficient assets, the phased elimination of outdated and ine_cient ones, and the implementation of strategic process improvements has established a robust foundation for achieving sustained success in the coming future.

Power

It has been a sustained endeavour of your Company to secure its power requirement through maximisation of captive power for increased reliability and cost optimisation. During the FY 2025-26, about 69.82% of the total requirement of 1434 MW was met from the Captive Power Plants, as against 67.53% in the previous year. Leveraging the opportunity of procuring power through Open Access introduced in Electricity Act, 2003, SAIL has been procuring power through the Open Access route to optimise cost. Continuing the legacy, this year too, SAIL Plants procured about 255.44 Million Units (MUs) of power through Open Access route which also included Green (renewable) power procured through Short Term Open Access. A major contributor to Green Open Access Power was 37.77 MUs of bagasse-based power through Power Exchange for Salem Steel Plant (SSP) during the sugarcane crushing season. 105.2 MUs were procured from the Power Exchange and 109.5 MUs were wheeled from PP-3, Bhilai to Salem Steel Plant. SAIL was able to save about Rs.42.7 crore in the FY 2025-26 by procuring power through Open Access route.

With the objective of enhancing the share of captive power and ensuring supply of reliable power at optimum cost, both the 20 MW Units of Power Plant-III at Durgapur Steel Plant (DSP) of NTPC-SAIL Power Company Ltd. (NSPCL), a Joint Venture Company of SAIL & NTPC Ltd., have stabilized. The New Power & Blowing Stations (PBSs) at Integrated Steel Plants at Bhilai, Rourkela and Burnpur are cogeneration Plants that run entirely on process gases (Blast Furnace & Coke Ovens gases), generating 8.23% of total power requirement of your Company. The old Captive Power Plants/Power Blowing Stations at Bhilai, Rourkela, and Durgapur also utilize the process gases to the maximum, using minimal amounts of coal. In addition to this, process gases are also provided to NSPCL (a JV of SAIL and NTPC) and Bokaro Power Supply Co. Ltd. (BPSCL) (a JV of SAIL and Damodar Valley Corporation (DVC)) for substituting coal as a fuel to the optimum level feasible vis-?-vis operational efficiency. LD gas is being mixed with BF gas at BPSCL. Further, at NSPCL's Power Plant-II, BSP, CO gas pipeline for Boiler-3 has been connected to the new CO gas header. Modi_cation is proposed in the boilers of Power Plant-II, BSP so that coal usage shall be further reduced by utilizing BF gas in the boilers, thus improving carbon footprint.

An important component of Grid Power in DSP and IISCO Steel Plant (ISP) is Green Power, introduced by the utility DVC. Since 1st September, 2024, both the Plants have been procuring 50% of their Grid Drawl as Green Power from DVC. A total of 638 MUs was procured by ISP (432 MUs) and DSP (206 MUs) during FY 2025-26, which shall help reduce

CO2 emissions in the steel-making process.

Your Company has always focused on its approach towards achieving better performance parameters with respect to usage of power purchased from utilities and capitalizing to maximize the rebates and incentives available in the power tari_ for achieving higher load factor, power factor, etc. During the FY 2025-26, 81.3 crore was received as incentives and rebate in the power tari_ from grid utilities. Besides above, optimization of electricity consumption in various steel making processes continues to be a major thrust area of SAIL Plants for lowering the power consumption per tonne of production of Saleable Steel.

As a responsible corporate house, your Company has given adequate emphasis on development and usage of renewable power sources with focussed approach on Roof Top Solar (RTS) Power Plants. A capacity of 8.495 MWp of Roof Top/Ground Mounted Solar power plants has already been installed across SAIL Plants and Units. Further, SAIL's first Floating Solar Power Plant of 4 MWp at ISP commissioned in January, 2024, produced 5.61 MUs of green power during FY 2025-26. In addition to this, a 15MW capacity Floating Solar Power Plant over Maroda-1 Cooling Pond in BSP through NSPCL is under installation, out of which 10MW has been commissioned in FY 2025-26. In addition to this, a 20MW capacity Floating Solar Plant in Maroda-2 reservoir of BSP through NSPCL (JV of SAIL & NTPC) is under installation. Further, 278.5 MW of Ground-mounted/Floating/Rooftop Solar Power projects at various Plants/Units of the Company across the Country are under consideration. Solar projects with potential of 339 MW are being examined for techno-commercial feasibility. Besides this, about 13 MW renewable bagasse-based power procured for Salem Steel Plant (during sugar cane crushing season) and the 10 MW Small Hydro Electric Plant over Mandira Dam, Rourkela, in Joint Venture with Green Energy Development Corporation of Odisha Ltd. (GEDCOL) are progressively enhancing your Company's green footprint.

Raw Materials

During the FY 2025-26, your Company achieved its highest-ever Iron Ore production from captive mines at 38.07 million tonnes (MT). In addition to meeting its internal requirements, SAIL sold approximately 3 MT of iron ore in the open market. With respect to Clean Coking Coal, out of total requirement, 2.180 MT was sourced domestically (Coal India Limited & captive sources), while the balance requirement of approximately 16.50 MT was met through imports due to limited availability of the requisite quality within the Country. In the FY 2025-26, production from the captive collieries of the Company was about 0.637 MT, comprising 0.589 MT of Raw Coking Coal and balance 0.048 MT was Non-coking coal, including jhama. In respect of Fluxes, 0.728 MT of Limestone and 0.551 MT of Dolomite were produced from captive sources, aggregating to 1.279 MT. For Thermal Coal, SAIL primarily relied on supplies from Coal India Limited, supplemented by a small quantity of 0.737 MT of Non-coking coal, including middlings, from the captive mines. The entire Thermal Coal requirement was met through indigenous sources.

Selling of Iron Ore from Captive Mines in Open Market

In FY 2025-26 about 3.013 MT of Iron Ore was sold in the open market from the captive mines, registering a growth of 300% over the previous year.

Grant of Environment Clearance (EC)

• Duargaiburu Lease of Gua Ore Mine: MoEFCC amending EC on 16th July, 2025, permitted excavation up to 1.5 MTPA ROM from Rajaburu area and up to 3.1 MTPA Dump Fines for dispatch towards captive use, sale, or to beneficiation and pelletisation agencies for conversion into Pellets, within the approved EC limit of 12.50 MTPA.

• 5.1 Sq. Mile Lease of Bolani Ore Mines: For utilization of Dump Fines from the adjacent 6.9 Sq. Mile lease, originally generated from the 5.1 Sq. Mile lease, MoEFCC amending EC on 24th July, 2025, allowed liquidation of up to 1.2 MTPA of Dump Fines and 11.47 MTPA of Iron Ore, subject to a combined total excavation not exceeding 12 MTPA for a period of 4 years.

• Rowghat Mining Lease: Amendment in EC was granted on 19th September, 2025 for 8.0 MTPA (5.0 MTPA via Rowghat Station & 3.0 MTPA by Road) for 3 years till December, 2028.

• Dhobil Lease of Manoharpur Ore Mine: MoEFCC granted amendment in EC vide letter dated 6th November, 2025 for Dhobil Iron Ore Mining Project (Capacity 0.75 MTPA ROM & ML Area-513.036 ha) for continuation of Iron Ore transportation by road for a period of one year w.e.f. 23rd January, 2026.

Grant of Forest Clearance (FC)

• Forest Land under South-Central Blocks of Kiriburu-Meghahatuburu Mines Stage-II FC for diversion of 247.50 ha under South-Central block of Kiriburu-Meghahatuburu Iron Ore Mines was granted by MoEFCC on 14th October, 2025.

Operationalization of Dalli Pellet Plant at Dalli

The 1 MTPA Pellet Plant at Dalli was successfully commissioned during FY 2025-26, with dispatches commencing from September 2026. The facility utilizes tailings, thereby promoting sustainable mining practices. During FY 2025-26, 0.49 MT of Pellets were dispatched to BSP, contributing to enhanced value addition and improved resource efficiency.

Sales & Marketing

During the Financial Year (FY) 2025-26, your Company achieved Saleable Steel sales volume of over 20 million tonnes (MT), registering a growth of about 12% over previous year. With Home Sales of 19.9 MT for Mild Steel, there has been a growth of about 11% over FY 2024-25, and in Exports of about 3 lakh tonnes, there has been a growth of about 162% over the previous year. Against MOU 2025-26 target of 1 lakh tonne for Supply of Speciality Steel in Defence, Nuclear, Aerospace and

Development of Rowghat Project

Mine Developer-cum-Operator (MDO) has been finalized, with the MSA being executed on 14th October, 2025 for development and operation of the 14 MTPA Rowghat Mining Project. Mobilization of HEMM and other required resources is currently underway and is being closely monitored in line with the MSA provisions. Meanwhile, construction and commissioning of the Rowghat Railway Line and station, along with the associated loading infrastructure and in-motion weighbridge, are progressing steadily.

Capacity Expansion of Gua Ore Mines

SAIL plans to expand the capacity of the Gua Mine from 4 MTPA to 10 MTPA, along with setting up Beneficiation and Pelletization Facilities and a dedicated Railway Siding. The expansion plan comprises three key components: Package-I includes 9.5 MTPA mining operations along with loading through an MDO; Package-II involves setting up a 9.5 MTPA Beneficiation Plant; and Package-III covers the establishment of a 4 MTPA Pellet Plant.

Development of Tasra Coal Mine

In line with the Mission Coking Coal initiative, SAIL is continuing the development of the Tasra Coal Block (4.0 MTPA) along with a 3.5 MTPA Coking Coal Washery, thereby strengthening raw material security and diversification. The washery is targeted for commissioning by February, 2027, marking a significant step towards enhancing the Company's captive coking coal capacity. other Strategic Sectors, your Company exceeded the target by suppling 1.08 lakh tonne.

Your Company has been fulfilling the entire demand of steel tracks from Indian Railways for decades. A total of 12.6 lakh tonnes of Rails were supplied to Indian Railways in FY 2025-26, with 260m long-rail welded-panel component in the total Rail supply being about 86%. In addition to this, R-350 Rail supplies surged to 26,300 tonnes in FY

2025-26 from 8,826 tonnes in the previous year, registering a robust 198% year-on-year growth. Further, about 53,000 tonnes of Long Rail Panels were supplied from the Flash Butt Welding Plant (FBWP), Sabarmati, as per MoU with Indian Railways.

SAIL has been the pioneer and the only domestic producer catering to the Forged Steel Wheel requirements of Indian Railways. In addition to being the largest indigenous supplier of Loco Wheels for Indian Railways, over the years, a number of wheel profiles have been developed by SAIL, which have effectively substituted imports, thereby, advancing the cause of Atmanirbhar Bharat initiative of the Government of India. In this regard, 47,200 numbers of WTA (Wheel, Tyre, Axle) items were supplied to Indian Railways in FY 2025-26, including few profiles which are import substitution items. SAIL also commenced supplies of wheels for the flagship Vande Bharat trains, becoming the first indigenous supplier and enabling a significant reduction in imported wheels. During FY 2025-26, 1689 numbers of Vande Bharat Wheels were supplied to Indian Railways.

Your Company's presence has continued to be significant for certain critical areas of defence. In this direction, Licence Agreements for Transfer of Technology were signed with Defence Metallurgical Research Laboratory (DMRL), Defence Research and Development Organisation (DRDO), Ministry of Defence for DMR Sheets and Plates from Steel Plants at Bokaro, Bhilai and Rourkela. In addition to this, five Indian Navy ships were commissioned in FY 2025-26-Arnala, Himgiri, Udaygiri, Androth and Anjadip, for which steel was supplied by your Company. These efforts are part of an ongoing journey contributing to Aatmanirbhar Bharat.

Continuing the journey for increasing sales of Value Added and Special Quality products to the consumers, SAIL's basket in FY 2025-26, inter-alia, including DMR 249A HR Plates; ASTM A387 Cl. 2 (Gr.11/12) N &T Plates; Higher Grade CRNO (50C470/ 50C400); Gr.1 SiK HR Coils with C-0.03-0.06%; IS 18316:2023 Grade LS Coils (Cold Rolled); High Strength Cold Rolled Coils; ISC470LA, MC60 Grade HR Coils; EN 10149 S355MC (Si<0.03%) Slabs; IS 2002 Gr. 2 HR plates produced in 6, 8 & 10 mm thickness; EM12K Wire Rod Coils (5.5/6 mm dia); IS 1786 Fe 600 TMT Rebar's (32 mm dia); IS 1786 Fe 550D SAIL SeQR (10 mm) TMT Rebar; C45 (Cr-VAD) Blooms (300 x 335 mm); 50CrMo4 Blooms (300 x 335 mm); IS 1786 Fe550D-HCR (20 mm) TMT Rebar; IS 1786 Fe550D (36 mm) TMT Rebar; IS 1786 Fe550D-HCR (36 mm) TMT Rebar; Universal Beam UB 406?178 Rolled Sections of 60.1, 67.1 & 74.2 kg/m; E350 B0 & E410BR Grade Rolled Sections in NPB 450?190 of 77.58 kg/m; E350 B0 Grade in WPB 300?300 of 100.85 & 117.03 kg/m; Fe 550 D in 28mm TMT Rebar; Fe 550 D HCR in 25mm TMT Rebar; IS 7887 Gr. 4M in 7mm WRC; JOIST IS 2062 E410B0 250?125 mm; C20HMnC MA V60 RC Bloom (350 x 240mm); and EN 10025 S460 JR Bloom (350 x 240mm), R16 Axle from 370 mm BRC Rounds, etc.

Sales of TMT through Tier-2 Channel (including SeQR for Retail and EQR for Construction) in FY 2025-26 was 15.6 lakh tonnes against 13.9 lakh tonnes in the previous year, thereby registering a growth of 12%. In addition to this, brand ‘NEX' for Structurals is also being promoted. Your Company is working towards expanding the Tier-I and Tier-II channel footprint across India, which will further strengthen our position in B2B and B2C space. 7 more Channel Partners were added in Tier-I during the FY 2025-26, reaching a total of 66 as on 31st March, 2026, and thereby, achieving sales of 18.3 lakh tonnes through Tier-I Distributors with a growth of 18% over the previous year. With regard to Tier-II, for giving boost to sales through Retail Channel, SAIL has a strong network of Distributors and dealers across the Country with 63 Distributors and 4577 Dealers as on 31st March, 2026. Further, the Company has achieved sales of 15.6 lakh tonnes through Tier-II Distributors during FY 2025-26, with a growth of 11% over previous year. Under "Mission Poorvodaya" Scheme by Ministry of Steel, an Incentivization Scheme–"Ispati Ilakon Ka Vikas-SAIL Ke Saath" was introduced by SAIL for development of MSMEs based in the districts in which its Integrated Steel Plants are located. During the FY 2025-26, more than 82,000 tonne of various steel products have been sold to these MSMEs.

During the FY 2025-26, your Company has supplied 2.3 lakh tonnes steel to NSIC/SSIC. Further, in line with National Steel Policy, to improve per capita consumption of steel in the Country, 375 "Gaon Ki Ore" workshops were organised during FY 2025-26 across India for increasing steel usage. In addition to this, Branding and Promotional Campaign were undertaken and the significant ones include: 30 Backlit Boards at all platforms in Hazrat Nizammudin Railway Station, New Delhi; Participation in IMW25 exhibition; Strategic placement of Flex Boards at Airports in Nagpur, Mumbai Jodhpur & Jaipur; Advertisements in Railway Stations at Shirdi, Mumbai Central, Ujjain, Lucknow Charbag, Ayodhya & Durg; Advertisements in Trains: Delhi-Kalka Shatabadi Express Coaches, Lucknow Jhansi Passenger Bogies, Darjeeling Toy Train; Branding through Digital Print/Electronic Media at Metro Stations in Kolkata; India-West Indies Test Series; India-Australia T20

& ODI Series; Women's Cricket World Cup on Doordarshan during September to November, 2025; Newspapers Advertisements by Tier-I & Tier-II Distributors; Organization of the SAIL-Defence Conclave 2025 at Alloy Steels Plant, Durgapur to foster deeper collaboration with Defence Public Sector Undertakings; SAIL is co-sponsoring ‘Decode' programme hosted on Doordarshan News; Creatives & Posts on all SAIL handles for product level promotion; Customer/ Stakeholder Engagement with focus on steel usage by organizing Engineers' Meets, Mason Meets, Architect Meets, Structural Designer Meets, etc.; Conducting workshops/ lectures at engineering colleges across the Country; Seminars for architects and designers on the theme "New Challenges in Steel Design & Construction" for promoting steel structure designs; Steel Customer meets across the Country to interact with customers in various markets and segments; Customer meets at the Steel Plants for better appreciation of mutual issues; and Active utilization of Social Media accounts like Twitter, Facebook, Instagram, LinkedIn, YouTube, etc. for promoting Steel Usage.

The Warehousing Group of Marketing Organisation has been using GPS based Tracking System in all Warehouses & CA/ WLA units, ensuring real time tracking of the consignments. Spot-bidding for door delivery was executed in all the Warehouses & CA/WLA units for getting faster competitive freight rates, efficient transportation for faster door delivery, etc. In this regard, Door Deliveries using Multi Modal Dispatch to the tune of more than 58,000 tonnes were effected during FY 2025-26. In addition to this, Ready to Use (Cut and Bend) TMT Rebar Processing facility was set up at Kalamboli Warehouse. Similar facilities have been planned to be set up at 10 more locations across India. Wet Leasing and Decoiling Arrangements were finalised at various places for augmenting TMT, Structural and MS FLAT sales.

Digital Enablement & Customer Interfaces

In the domain of digitization, following activities have been undertaken during FY 2025-26:

• CMO has been awarded the ISO-27001:2022 Certification for managing Information Security Risk.

• SAIL, on a continual basis, is upgrading and enhancing the IT enabled activities for higher operational efficiency.

• Towards "Customer Experience Enhancement", increased adoption of E-Portal by customers was accomplished and more than 3500 customers are on-board.

MSME Registration Module in SAIL Portal.

• AI based Chatbot ‘SAIL SARATHI' has been introduced for facilitating easier navigation & information accessibility for customers and visitors.

• CMO has opened a verified Business Account on WhatsApp. The WhatsApp account is integrated with SAIL SARATHI APP.

• On E-portal (www.sailsuraksha.com) customers can book TMT orders online. Inclusion of TMT Estimator in SAIL Suraksha website–With the help of INSDAG, TMT estimator has been provided on SAIL-Suraksha website to estimate size wise TMT required for building.

Initiatives Taken Under "Pravartanam"

• NSR Calculation, Simulation and Analysis.

• AI - enabled Optimizer for Finished Goods Stocking and Delivery Route Planning, based on stock position, demand urgency, distance, mode of transport and freight costs.

• Contribution Margin Calculation, Simulation and Analysis.

Key Digital & Automation Initiatives

• GSTN Integration for Customer Validation: Integration with Goods and Services Tax Network for real-time API-based validation of customer GST details during customer creation, ensuring data accuracy and regulatory compliance.

• Forex Rate Capture: API-based integration with external ticker systems to automatically fetch and update USD and GBP exchange rates into SAP, ensuring real-time and accurate forex data for transactions.

• Monthly Demand Capture: New option to capture Monthly demand of Structurals for Tier-2 Distributors provided in EP .

Your Company has been a leader in contributing to nation building since inception by servicing the requirements of various projects of National and Strategic Importance. During the FY 2025-26, SAIL has supplied significant quantity of Steel to Projects in Sectors like Power, Road, Rail, Water, Airport Infrastructure, Oil & Gas, etc., the major projects being Lower Subansiri Hydro Power Project, Dhubri (Assam); Phulbari (Meghalaya) Bridge Project over Brahmapurtra River; Palasbari-Sualkuchi Bridge (Loh Purush Bishnuram Medhi Setu), Guwahati; Meghalaya Secretariat in New Shillong; Bagdogra International Airport Expansion Project; Dharbanga Airport Project; Jal Jiwan Hariyali Abhiyan; Dehri On shone; Danapur-Bihita Road; Dharbanga Medical College; Dhamra Port Bulk Berth-4, 5 & 6; NTPC Talcher Power Plant; Khordha-Bolangir BG Railway Line in Eastern Region; Ganga Expressway Project-Meerut to Budaun; Rishikesh Karnprayag 125 Km Rail Link; Vishnugad Pipalkoti 444 Mw Hydro Electric Project; Central Vista Enclave; GPRA (General Pool Residential Accommodation) Delhi Metro; Kanpur Metro; Agra Metro;

Ayodhaya Ring Road; KIRU Hydel Project; Kawar Hydel Project; Pakuldul HE Projects; Mathura Water Project in Northern Region. ISP Parwati Phase-3 & 4 River Linking Project; ISP-Kalisindh (Rajgarh and Shajapur) River Linking Project; Mumbai-Ahmedabad High Speed Rail; Versova-Bandra Sea Link Project; Nagpur Metro and Bhopal Metro sites; Mumbai-Pune Missing Link; Tuna-Tekra Terminal near Kandla Port in Western Region; Chennai Metro Rail Ltd.; Bengaluru Chennai Expressway; Naidupeta-Turpu Kanupur Highway; Bengaluru Metro; APCRDA Amravati Project; Kochi Metro Phase-II Expansion; Palamuru-Rangareddy Lift Irrigation Project; Vedavathi LIS;TG Halli Reservoir; Sunkishala Water Intake Project; Narayanpet Kodangal LIS; Real Estate Projects, etc. in Southern Region; thus encompassing diverse segments. Your Company is fulfilling its responsibility in building and nurturing strategic orientation towards strengthening & deepening relationship with customers & prospects, upgrading products and services basket through branding, promotions, customized services, research, process improvements, digitalization, etc. SAIL has been nurturing a leadership position in consumer mind space and is poised to meet the needs of the evolving market requirements and increasingly demanding business scenario with focus on profitability and enterprise value.

Public Procurement Policy for Micro and Small Enterprises

As required by the Public Procurement Policy of the Government of India, the information on procurement from Micro & Small Enterprises during FYs 2025-26 and 2024-25 is given below: (Rs. crore)

Particulars 2025-26 2024-25
Total Amount of Procurement# 11,509.74 10,801.90
Total Procurement from MSE 5,111.29 4,934.78
% age Procurement from MSE 44.41 45.68

#without considering imports, proprietary and high value items which cannot be procured from MSEs. Procurement data includes procurement of Goods and Services.

Modernisation & Expansion Plan

A capital expenditure of Rs.9,187 crore has been incurred during FY 2025-26 against the Revised Budget Estimate of Rs.10,000 crore. Capex planned for the FY 2026-27 is at Rs.15,000 crore. The details of Addition, Modi_cation & Replacement (AMR) Schemes under implementation are given in the Management Discussion & Analysis (MD&A) Report.

In line with National Steel Policy, 2017 of Government of India, your Company has envisaged Phase-1 Expansion of its Integrated Steel Plants at Burnpur, Durgapur, Bokaro, Rourkela and Bhilai for enhancing its Crude Steel Capacity from existing ~19 MTPA to around ~35 MTPA through Augmentation and Expansion by 2030-31. In this regard, after Stage-I approval of capacity Expansion of Steel Plant at Burnpur, all the 14 Technological Packages have been awarded. Further, on Stage-I approval of capacity Augmentation of Steel Plant at Durgapur, 6 Packages have been awarded and balance are under various stages of tendering. Subsequently, on Stage-I approval of capacity Expansion of Bokaro Steel Plant, tendering activities are under progress. Further, Capacity Expansion of Bhilai Steel Plant is under consideration.

C. HUMAN RESOURCE MANAGEMENT

Your Company recognizes contribution of its Human Resources in providing it the competitive advantage. The Company has achieved its present level of excellence through investment in its human resource, where skill and knowledge constitute the basis of every initiative- be it technology or innovation. Developing skills and capabilities of employees to improve manpower utilization and labour productivity is the key thrust area of Human Resource Management (HRM) in the Company.

Your Company provides an environment conducive for learning, encourages adoption of best practices in every area and nurtures creativity and innovation among employees. Human Resource initiatives in SAIL are focused on developing team spirit, employee empowerment and their involvement in various improvement activities. Strategic alignment of HRM to business priorities and objectives has facilitated smooth transition to ‘state-of-the-art' technology in the Modernization and Expansion Projects.

Enhanced Productivity with Rationalized Manpower

Your Company achieved Labour Productivity (LP) of 630 TCS/Man/Year in FY 2025-26. The manpower strength of the Company was 49,752 nos. as on 1st April, 2026 with manpower rationalization of 3,407 nos. achieved during the FY 2025-26. The enhanced productivity with rationalized manpower could be achieved as a result of judicious recruitments, building competencies and infusing a sense of commitment and passion among employees to go beyond and excel. Trend of enhanced productivity and manpower rationalization since 2016-17, onwards is depicted below:

Your Company believes that people's development is the key for overall growth of the organisation. Training and development activities have facilitated development of employees' knowledge and skills, resulting in advancement of competencies, thereby, leading to attainment of Organisational Goals and Objectives. SAIL has been making sustained efforts through continuous need based training and development activities with focus on preservation, transfer and improvement of skills, knowledge and technology in collaboration with reputed organizations and development of effective managerial competencies in association with Premier Institutes.

Preparing employees for tomorrow is being given a major thrust with a view to enable them to effectively take up challenges and discharge new roles and responsibilities. Overall 42,221 employees were trained against target of 25,096 employees during the FY 2025-26 on various contemporary technical and managerial modules. 6,471 Contractual Workers at Plants have been provided Recognition of Prior Learning (RPL) training through Indian Iron and Steel Sector Council (IISSSC). The learning and development continuity of the Organization was also maintained through Digital & Physical outreach, apart from the regular programs and e-learning modules being made available in the in-house e-learning portal and also through iGoT.

In addition to this, SAIL has significant coverage in CBC mandated programs. 100% employees on-boarded in iGoT platform and Over 227,486 courses were completed in 2025-26 including; (a)162075 mandatory courses, more than 53% of target; (b)19334 comprehensive assessments completed; and (c)14,851 people training as part of Rashtriya Karmayogi Large Scale Jan Seva Program.

Harmonious Employee Relations

SAIL has maintained its glorious tradition of building and maintaining a conducive and fulfilling employer-employee relations environment. The healthy practice of nurturing a strong connect with employees and sorting out & settling issues through discussions with trade unions/workers' representatives enabled the Company in ensuring workers' participation at different levels and establishing a peaceful industrial relations climate. Some of the bipartite forums are functioning since early seventies and are sufficiently empowered to address different issues related to wage, safety, and welfare of workers, thus, helping in establishing a conducive work environment.

Bipartite forums like National Joint Committee for Steel Industry (NJCS), Joint Committee on Safety, Health & Environment in Steel Industry (JCSSI), etc. with representation from major central Trade Unions as well as representative Unions of Plants/Units meet on periodic basis and jointly evolve recommendations/action plans for ensuring a safe environment and harmonious work culture which gets substantiated from the harmonious Industrial Relations witnessed over the years by SAIL Plants/Units, marked with diverse work culture at multi-locations.

In addition, Quality Circles, Suggestion Schemes, Shop Welfare Committees, Safety Committee, Canteen Management Committee, Productivity Committee, etc. also offer multiple avenues for enhanced workers' participation. Workers are also kept abreast of strategic business decisions and their views sought thereon through structured/interactive workshops. Communication is made in a structured manner with employees at various levels on a wide range of issues impacting the Company's performance as well as those related to employees' welfare across the Company. Mass communication campaigns are undertaken at Director In-charges'/Senior Officers' level involving structured discussion with large group of employees. These interactive sessions help employees to align their working with the goals and objective of the Company leading to not only higher production and productivity but also enhance the sense of belongingness of the employees.

Grievance Redressal Mechanism

Effective internal grievances redressal mechanism has been evolved and established in SAIL Plants and Units, separately for Executives and Non-executives. Grievance Redressal Machinery exists at Plant/Unit level for effective redressal of grievances.

SAIL Plants/Units are maintaining grievance handling mechanism and employees are given an opportunity at every stage to raise grievances relating to wage irregularities, working conditions, transfers, leave, work assignments, welfare amenities, etc. Majority of grievances are redressed informally in view of the well-entrenched participative culture prevailing in the Steel Plants/Units. The system is comprehensive, simple and flexible and has proved effective in promoting harmonious relationship between employees and management.

279 staff grievances were received during the FY 2025-26 and with 19 grievances pending from previous year, 281 staff grievances have been disposed of during the year, achieving 94% fulfilment and leaving 17 grievances outstanding at the end of FY 2025-26.

Further, during FY 2025-26, 855 grievances were received under Centralised Public Grievance Redressal and Monitoring System (CPGRAMS), a National level online system managed by Department of Administrative Reforms and Public Grievance (DARPG), Government of India.

The Status of Grievances received and disposed from 1st April, 2025 to 31st March, 2026 is as under:

Particulars Received (including Brought Forward) Disposed Pending as on 31st March, 2026
1 Public Grievances 672 661 11
2 Appeals 183 183 0
Total 855 844 11

Remuneration Policy

In SAIL, pay and other benefits for executives are based on the Presidential Directives issued by the Ministry of Steel, Government of India. Presidential Directives for revision of pay scales of Board level and below Board level executives were issued by the Ministry of Steel vide letter dated 18th November, 2021 w.e.f. 1st January, 2017 notionally and the actual payment was made w.e.f. 1st April, 2020. In case of Non-executive employees, the wages including perks were finalized/ revised in bipartite forum of National Joint Committee for Steel Industry (NJCS) with the approval of Ministry of Steel on 18th November, 2021. The pay scales have been implemented notionally w.e.f. 1st January, 2017 and the actual payment was made w.e.f. 1st April, 2020. The Perks and Allowances under Cafeteria Approach have been implemented w.e.f. 18th November, 2021. In terms of notification dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India, the provisions of section 197 of the Companies Act, 2013 are not applicable to Government Companies. As such, the disclosures to be made in the Board's Report in respect of overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits are not included in this Report.

Initiatives for Socio-economic Development of SCs /STs & Other Weaker Sections of the Society

SAIL Plants and Units including Mines are situated in economically backward regions of the Country with predominant SC/ST population. Your Company has made commendable contribution to the overall development of civic, medical, educational and other facilities in these regions. Some of the contributions are: ? Establishment of SAIL Steel Plants in economically backward areas has given a fillip to the economic activities, thus, benefiting the population in the peripheral areas with different types of services. Steel Townships developed by SAIL have the best of medical, education and civic facilities and are like an oasis for the local Scheduled Castes, Scheduled Tribes and other population who share the benefits of prosperity and development along with SAIL employees.

? Recruitment of non-executive employees, around 82% of the total employees, is carried out mainly on regional level and hence, a large number of SCs/ STs and other weaker section of the society get the benefit of employment in SAIL.

? Over the years, a large group of ancillary industries have also developed in the vicinity of Steel Plants. This has created opportunities for local unemployed persons for jobs and development of entrepreneurship.

? For jobs of temporary & intermittent nature, generally contractors are engaged for executing job contracts wherein they deploy workmen from the local areas, which again provides an opportunity for employment of local candidates from economically weaker section.

? Your Company has undertaken several initiatives for the socio-economic development of SCs/STs and other weaker sections of the society which are mainly as under: ? Special Schools have been started exclusively for poor, underprivileged children at five Integrated Steel Plant locations. The facilities provided include free education, mid-day meals, uniforms including shoes, text books, stationery items, school bags, water bottles, etc.

? No tuition fee is charged from SC/ST students studying in the Company run schools, whether they are SAIL employees' wards or non-employees' wards. ? Free medical health centres have been set up at Bhilai, Durgapur, Rourkela, Bokaro and Burnpur (Gutgutpara) providing free medical consultation, medicines, etc. to the peripheral population mainly comprising of SC/ST and weaker sections of society. ? SAIL Plants have adopted tribal children. They are being provided free education, uniforms, text books, stationery, meals, boarding, lodging and medical facilities for their overall growth at residential hostels, Saranda Suvan Chhatravas, Gyanodaya Hostel and an exclusive Gyan Jyoti Yojana for the nearly extinct Birhor Tribe.

? For Skill Development and better employability, youths & women of peripheral villages have been provided vocational and specialized skill development training at various ITIs, Nursing tribal school pass-outs have been sponsored for coaching in premier institutes for IIT/JEE entrance examinations and for trainings along with monthly stipend, accommodation, transportation and food facility at various ITIs, Nursing and other vocational training institutes.

Implementation of Presidential Directives on Reservation for SC/ST/OBC, etc.

• Your Company follows Presidential Directives on Reservation for Scheduled Castes and Scheduled Tribes in the matter of recruitments and promotions. As on 1st April, 2026, out of total manpower of 49752, 8457 belong to SCs (17%), 8027 belong to STs (16.13%).

• Liaison Officers have been appointed as per Presidential Directives for due compliance of the Orders and instructions pertaining to reservation for SCs/STs/OBCs/ PWDs at Plants/Units of SAIL.

• SC/ST/OBC Cell is functioning in all the main Plants/ Units. A member belonging to SC/ST community is associated in all Departmental Promotion Committees (DPCs)/ Selection Committees. A sufficiently senior level officer of SC/ST/OBC category is nominated for the purpose as per the level of the Recruitment Board / Selection Committees/DPC.

• Out of the total manpower of 49752, number of OBCs is 9057, which is 18.20% of the manpower. Reservation for OBCs came into force with effect from 8th September, 1993. OBC candidates joining prior to this date are shown against the Unreserved (UR) category. Liaison officers have been appointed for due compliance of orders and instructions pertaining to reservation for OBC at Plants/ Units.

• Internal workshops are conducted at regular intervals through an external expert for Liaison Officers for SC/ ST/OBC and other dealing officers of SAIL Plants/Units to keep them updated on the reservation policy for SC/ST/ OBCs and other related matters.

• Plants/Units of SAIL have SC/ST Employees' Welfare Associations which conduct regular meetings with Liaison Officers on implementation of reservation policy & other issues. In addition, an Apex level umbrella body namely SAIL SC/ST Employees Federation also exists in SAIL to represent the issues of SC/ST Employees in a coordinated manner.

Implementation of Right to Information Act, 2005

The provisions under the Right to Information Act, 2005(Act) are being complied by all the Plants and Units of SAIL. All statutory reports, including Annual Report, are being sent to Ministry of Steel and also being uploaded on the website of the Company-www.sail.co.in. Your Company has appointed Public Information Officers (PIO)/Assistant Public Information Officers and Appellate Authorities and Transparency Officer in each Plant and Unit under Sections 5 and 19(1) of the Act for speedy redressal of the queries received under the Act. Under Section 5(5), all the officers/line managers responsible for providing information to the PIO are called Deemed PIO, and are made equally responsible as PIO, towards timely submission of information to the applicant.

An exclusive RTI Portal has been developed with link available on the website of the Company. All the Plants/Units have listed 17 manuals and details of Authorities under the Act are uploaded on the website of the Company. Quarterly Returns and Annual Returns on implementation of the Act are being submitted online through the CIC portal. Implementation of online request has already been introduced from 1st May, 2015. A compilation of Record Retention Policy of various functions of Corporate Office has also been uploaded on the website of the Company. Awareness Programs/Workshops on RTI are regularly organised across Plants/ Units.

SAIL received a total of 2,828 applications and 559 appeals under the Act during the FY 2025-26 and all of them have been disposed of within the time frame stipulated under the Act. CIC has also taken up 54 cases and most of these cases were disposed of in favour of the Company.

Since enactment of the Act, SAIL has received a total of 62,547 applications and 9,713 appeals up to 31st March, 2026, which were disposed-o_ within the stipulated time. Out of these, 1,236 cases were taken up by the CIC and most of these cases were disposed of in favour of the Company.

Citizen Charter

Your Company is totally committed to excellence in public service delivery through good governance, by a laid down process of identifying citizens, our commitment to them in meeting their expectations and our communication to them of our key policies, in order to make the service delivery process more effective.

SAIL's Citizen Charter has outlined commitment of SAIL towards its stakeholders, thereby empowering them to demand better products and services. Objectives of the Citizen's Charter of SAIL may be summarized as below:

• Ensuring effective citizen communication channels.

• Demonstrating transparency and openness of its business operations by hosting the Citizen's Charter on the Corporate website.

• Working towards the delight of citizens, by fail-safe processes and in case of exigencies leveraging its service recovery processes, like Grievance Redressal, Handling Complaints, etc.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:

• Your Company has set up Internal Complaints Committees in line with the requirement of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. These Committees have been set up to redress complaints, if any, received regarding sexual harassment. All employees of the Company are covered under these Rules.

The details of sexual harassment complaints received and disposed of during the year 2025-26 are as under:

Particulars No. of Complaints
Number of complaints pending as on 1st April, 2026 0
Number of complaints received in 2025-26 7
Number of complaints disposed of during 2025- 26 6
Number of complaints pending as on 31st March, 2026 1

The complaints disposed of during FY 2025-26 were within the timelines prescribed in POSH Guidelines.

Disclosure under the Maternity Benefit Act, 1961:

It is hereby confirmed that during FY 2025-26, SAIL is in compliance with the provisions of Maternity Benefit Act, 1961.

Project DARPAN

Project DARPAN (Driving Advancement by Reimagining Performance Assessment & Nurturing) is a flagship HR Transformation initiative of your Company aimed at

Modernizing and Digitizing the performance management ecosystem through a comprehensive Continuous Performance Management System (CPMS). The project encompasses five integrated modules-Role Clarity tool, Target Setting tool, Job Family & Specialization Building (CoE) tool, Continuous Performance Management System (CPMS) tool and Performance Dashboards, supported by advanced digital workflows and analytics. Significant progress has been achieved in finalization of Roles & KPAs across the Organization, development and testing of CPMS tools across the Plants/Units, stakeholder consultations, and extensive capacity-building workshops for HR teams and cross section of executives. More than 8000 Roles and 25000 SMART KPAs have been formulated so far, covering more than 9800 executives. Under the project, PMS & Executive Promotion Policy among others are being amended to ensure seamless implementation across the Company. Upon full rollout, Project DARPAN is expected to strengthen accountability, enhance transparency and objectivity in performance management, align individual goals with organizational priorities, and provide data-driven insights for talent development and workforce productivity across SAIL.

D. AWARDS & ACCOLADES WON DURING THE YEAR

Your Company has won the following awards during the FY 2025-26:

• SAIL has been recognized as one of India's Best Employers among Nation Builders for 2025 by Great Place to Work? Institute, India. The prestigious award acknowledges SAIL's legacy of unwavering commitment to nation-building and Company's efforts to create a high trust workplace culture.

• SAIL achieved the SCOPE Eminence Award, 2022-23, conferred by the Hon'ble President of India in August, 2025, in recognition of SAIL's leadership in R&D, process innovation, renewable energy integration, and circular economy practices.

• SAIL has been recognized as ‘1st Runner-up' in ‘Community Impact' during 2025 SHRM India HR Excellence Awards 2025. The Award acknowledges the companies exhibiting remarkable vision and courage to innovate - putting people at the heart of transformation. The Award was presented during the SHRM India Annual Conference & Expo 2025, held on 14th /15th November, 2025 at New Delhi.

• SAIL secured top honors at the Public Relations Society of India (PRSI) Awards 2025, winning five First Prizes across categories including Corporate Website,

Most Impressive Event Management, Praiseworthy efforts to encourage Make in India in Defence Sector, and Best Advertising Campaign using AI and Best use of AI in PR campaigns, along with three Second Prizes for e-Newsletter, Sustainable Development Report, and Best Communication Campaign (Internal Publics), reflecting its robust and multifaceted communication strategy.

• SAIL was awarded in the Corporate Brochure Category by the Public Relations Council of India (PRCI) in their 15th PRCI Excellence Awards, 2025. The award was presented by Dr. Ganesh Gaonkar, Hon'ble Speaker of the Goa Assembly during the PRCI's Global Communication Conclave held in Panjim, Goa on 27th September, 2025.

• Bhilai Steel Plant (BSP) bagged the Golden Peacock Eco-Innovation Award 2025 for pioneering eco-friendly innovations, including paver blocks and tiles made entirely from steel slag.

• Bhilai Steel Plant won the 11th Greentech CSR India Award, recognizing its outstanding work in promotion of healthcare facilities and services in its peripheral areas in the state of Chhattisgarh.

• Environment Management Division (EMD) and Bhilai Steel Plant (BSP) was awarded Greentech Environment Award, 2025 in ‘Environment Protection' category, underscoring proactive environment management.

• Salem Steel Plant has been conferred the IEI Industry Excellence Award 2025 under Category-B (Engineering Manufacturing and Processing) for Excellence in Overall Performance by The Institution of Engineers (India) on 19th December, 2025.

• Salem Steel Plant has won the Gold award in Lean Quality Circle Competition organized by Quality Circle Forum of India, Chennai Chapter for the year 2025.

• Research & Development Centre for Iron and Steel (RDCIS) was awarded the SCOPE Eminence Award for R&D, Technology Development & Innovation.

• Research & Development Centre for Iron and Steel (RDCIS) won the IIM MECON Award 2025 for excellence in Process, Engineering & System Design from the Indian Institute of Metals.

• Colliery Division bagged the Kalinga Environment Excellence Award by IQEMS, Bhubaneswar for outstanding contributions to environmental protection and sustainable practices.

D. ENVIRONMENT STEWARDSHIP

Your Company places environmental stewardship at the core of its operations, ensuring that its Plants and Mines minimize their ecological impact, while meeting strict standards for emissions, waste management, and resource conservation. These efforts extend beyond compliance, and aim to create a positive footprint within facilities and surrounding communities.

SAIL's Corporate Environment Policy is the pivot for its sustainable growth strategy, and enshrines integrity, accountability, and transparency into the business practices. This Policy drives continuous improvement, sets higher performance benchmarks, and promotes environmental awareness among stakeholders. Through investments in cleaner technologies, efficient resource management, and process improvements, SAIL diligently pursues its sustainability agenda. The Company is committed to reduce the carbon emission of steelmaking. SAIL has installed large-volume Blast Furnaces equipped with TRT, CDI, and WHR; modernised Coke Oven Batteries with CDCP; Walking Beam Reheating Furnaces; Energy Efficient Drives and Motors and use of Renewable Energy as a measure to reduce carbon emissions and enhance energy efficiency. The Corporate Sustainability Policy of SAIL is aligned with national priorities and global ESG standards, and reinforces its position as an environmentally responsible steelmaker. In addition to this, Company remains committed to address the stakeholders' concerns and fostering a culture of environmental responsibility. The Corporate Environmental Policy is available at the website of the Company-www.sail.co.in.

Air Management

Air management is a critical component of SAIL's broader environmental stewardship strategy, aimed at minimizing emissions and improving air quality across its Plants and Mines. Your company has consistently invested in advanced technologies and process improvements to reduce Particulate Matter and other pollutants and during FY 2025-26, the Company achieved a reduction of 3% in specific PM emission load compared to previous five years, reflecting its commitment to cleaner operations.

Several targeted projects have been implemented to strengthen air management and a few of the major ones include: At Bokaro Steel Plant, a Battery Cyclone was replaced with an Electrostatic Precipitator at the Sinter Plant, significantly enhancing dust control. Similarly, a Dust Extraction System was installed at the _ux crushing area of ISP, ensuring reduced fugitive emissions. To further mitigate dust emissions, two nos. of trolley mounted Mist Canons were installed at Roxy Railway Siding of Barsua Iron Ore Mine and a vehicle-mounted mist canon and a mechanized road sweeping machine were deployed at Barsua Iron Ore Mines.

Water Management

In FY 2025-26, your Company advanced its water management strategy by combining conservation, recycling, supplemented with innovative technologies. SAIL achieved a 9% reduction in specific water consumption and a 13% reduction in specific e_uent load compared to last five years, reflecting improved efficiency and reduced environmental impact.

A major achievement was the commissioning of a 1500 m?/ hr. E_uent Treatment and Recirculation System at Bokaro Steel Plant, designed to achieve Zero Liquid Discharge (ZLD), ensuring treated water is reused within operations, minimizing freshwater withdrawal. A 30 MLD Sewage Treatment Plant (STP) for the Rourkela Steel Plant Township was inaugurated on 27th August, 2025, with treated water earmarked for industrial and horticultural reuse, reducing freshwater demand. Additional facilities included E_uent Treatment Plant of 10 KLD capacity at Kiriburu and Barsua Iron Ore Mines and a 10 KLD Sewage Treatment Plant at Barsua Hospital, which safeguard local water bodies and improve sanitation. To complement these measures, SAIL has integrated rainwater harvesting facilities across its Plants and Mines. These systems capture and store rainwater, thereby reducing reliance on water intake from surface water bodies, while supporting industrial and domestic needs.

Importantly, SAIL also adopted Coke Dry Quenching (CDQ) technologyforcokemakingprocess,whichnotonlyconserves water but also reduces emissions and recovers waste heat for power generation. By replacing traditional wet quenching, CDQ significantly improves environmental performance and energy efficiency. These initiatives demonstrate your Company's holistic approach to water management and SAIL's commitment to sustainable steelmaking, ecological balance, and responsible resource use.

Waste Management

In FY 2025–26, SAIL has made considerable progress in waste management, focusing on reducing generation, maximizing reuse, and promoting sustainable utilization of industrial by-products. While your Company achieved a 27% increase in total solid waste utilization compared to last five years, similarly there was a significant increase of 176% in BOF slag utilization, largely by selling from old stocks, thereby underscoring the commitment to circular economy practices.

A series of innovative projects was launched to convert waste into value-added products. At Bhilai Steel Plant, an eco-friendly initiative was undertaken for production of paver blocks and tiles entirely from BOF slag, which has earned the prestigious Golden Peacock Eco-Innovation Award. Similarly, Rourkela Steel Plant introduced ‘Eco Brick', a paver block manufacturing facility utilizing BOF slag. Durgapur Steel Plant also set up a unit to manufacture paver blocks using weathered BOF slag, while Salem Steel Plant began producing paver blocks from EAF slag through outsourced agencies. These initiatives significantly enhance slag utilization, reduce waste disposal challenges, and support sustainable construction.

At the SAIL Refractory Unit, Bhilai, a dedicated system was developed for the collection and composting of dry leaves, converting biodegradable waste into organic manure. This initiative promotes sustainable waste management, reduces dependence on chemical fertilizers, and contributes to a cleaner and greener environment.

Grog for Recycling at SRU, Bhandaridah

Wastes like grog and rejected bricks are recycled at the SAIL Refractory units, contributing to reduced consumption of fresh raw materials. This initiative supports resource conservation, minimizes waste generation and promotes sustainable manufacturing practices.

In partnership with ICAR-Indian Agricultural Research Institute (IARI) under the Ministry of Steel, SAIL is exploring BOF slag's use in developing cost-e_ective fertilizers. Steel Slag–Based Value Added Products (SSBVAPs) have been developed and are undergoing field trials across all the five Integrated Steel Plants of SAIL. These products, designed as soil conditioners, improve soil health and promote nutrient-rich agriculture. Patent applications have been filed to safeguard this technology, strengthening circular economy practices and opening new pathways for slag utilization in agriculture.

Sustainability E_orts for Low Carbon Steelmaking

• Strategic Roadmap

SAIL's sustainability efforts in FY 2025-26 were driven by a comprehensive and forward looking strategy integrating technology, innovation, and partnerships. The Company is pursuing a phased decarbonisation journey aligned with India's Net Zero 2070 target, with a clear roadmap to expand Crude Steel capacity to 35 MTPA by the year 2030-31, while reducing CO_ emissions intensity to 2.19 t/tcs.

Hydrogen-Based Steelmaking

A major thrust area is hydrogen-based steelmaking. The following projects are undertaken:

• Pilot Project for Hydrogen Injection in Blast Furnace at BSL

M/s. Forbes Marshall has been engaged for installation of Hydrogen Injection Facility. Commissioning and trial is scheduled by October, 2026.

• Collaborative R&D Project with IIT Kharagpur to develop Hydrogen-enriched DRI Technology

M/s. IPS Engineering Consultants Pvt. Ltd. Coimbatore, Tamil Nadu, has been contracted for supply, installation and commissioning of integrated system for pilot study. Commissioning is scheduled by December, 2026. These initiatives are supported by Government funding under the aegis of the National Green Hydrogen Mission, with the aim to adopt hydrogen as a key enabler for Green Steel.

• Carbon Capture & Utilization (CCU)

SAIL is advancing CCU through pilot reactors and collaborations with industry partners. These projects aim to capture CO_ emissions and convert them into value-added products, reinforcing circular economy practices and reducing greenhouse gas impact. Bhilai Steel Plant has collaborated with M/s. Entity1 Value Emission Pvt. Ltd. for installation of 1 TPD pilot-scale reactor for conversion of greenhouse gas emissions into value-added products.

• Alternative Fuel Pathways

SAIL is exploring Biochar and Coke Oven Gas as alternative fuel pathways in sinter making and blast furnaces. These measures will reduce reliance on fossil fuels and contribute to lowering overall emissions.

SAIL has expanded its renewable energy portfolio with 22.6 MW of solar capacity, including rooftop, ground-mounted, and floating solar installations.

A landmark achievement was the commissioning of 10 MW Floating Solar Plant at BSP, the first of its kind in Chhattisgarh. Additionally, Salem Steel Plant procures 7 MW of bagasse-based biomass power annually, while Durgapur Steel Plant and IISCO Steel Plant source 50% of their grid power from DVC as Green Power, strengthening the sustainable energy mix. Further, a 20MW capacity Floating Solar Plant in Maroda-2 reservoir of BSP through NSPCL (JV of SAIL & NTPC) is under installation.

• Techno-Commercial Feasibility (TCF) Study

A TCF Study was undertaken at Bhilai Steel Plant during the period August, 2024 to February, 2026 under the SCOPE–GIZ MoU, with technical support from Grant Thornton India, which addressed key areas of sustainable steelmaking, including beneficiation of mine tailings, increased use of scrap, fines utilization for blast furnace efficiency, and integration of green hydrogen. Final report was submitted in March, 2026. Salient recommendations of the Study are under consideration for adoption for resource-e_cient and eco-friendly steelmaking.

Transparency & Compliance

• Digital CO_ Emission Monitoring

SAIL has introduced a digital dashboard system to track greenhouse gas emissions across its plants. This initiative enhances transparency and provides real-time insights into emission levels, marking a significant step forward in strengthening the company's climate strategy.

• Environmental Product Declarations (EPDs)

To reinforce its sustainability credentials, SAIL has developed Environmental Product Declarations (EPDs) for key products across its major plants, including TMT Bars, Wire Rods, and PM Plates of Bhilai Steel Plant; PM Plates and HR Coils of Rourkela Steel Plant; HR coils, CR coils and GP coils of Bokaro Steel Plant; TMT Bars, Wire Rods and Structurals of IISCO Steel Plant, and TMT Bars and Structurals of Durgapur Steel Plant. Each EPD is based on a cradle to grave lifecycle assessment, covering impacts from mining to end of life disposal. These EPDs will be published on the International EPD System, positioning SAIL's products under globally recognized sustainability standards.

• CBAM Compliance

In response to international buyer requirements, SAIL has developed CBAM compliance reports for its major export products, viz. HR Coils and PM Plates of Rourkela Steel Plant, and Steel Slabs, HR Coils and CR Coils of Bokaro Steel Plant. These reports transparently provide embedded CO_ emission data, ensuring that exports meet regulatory expectations in carbon-sensitive markets.

• Green Steel Certification

Under the Green Steel Taxonomy notified by the Ministry of Steel, the benchmark for certification is 2.2 tonnes of CO_ equivalent per tonne of Finished Steel. Alloy Steels Plant (ASP) has already achieved emissions below this threshold. Certification is expected shortly following verification by the National Institute of Secondary Steel Technology (NISST), underscoring SAIL's progress towards producing certified Green Steel.

• Global Recognition

SAIL's commitment to sustainability has been recognized internationally. Your Company has been declared a member of the Worldsteel Sustainability Charter 2025, joining 30 steel producers and associations worldwide as charter members. This membership encourages active engagement in sustainability programmes and continuous improvement. Additionally, after verification of CO_ emission data for FY 2024–25, the Worldsteel Association (WSA) conferred the Climate Action Data Provider certificate on SAIL, reafirming its role as a responsible contributor to global climate action.

• Collaborative Approach

Your Company is actively building partnerships to accelerate research, innovation, and sustainable practices. In FY 2025–26, collaborations were aligned with the National Green Hydrogen Mission, Carbon Capture and Utilization (CCU), and Global Decarbonization efforts under the LeadIT Industry Transition Partnership (ITP) platform, reflecting our commitment to green transformation and circular economy solutions.

• Green Hydrogen

SAIL signed an MOU with Damodar Valley Corporation (DVC), Jadavpur University, and Hindustan Urvarak & Rasayan Limited (HURL) to establish a Centre of Excellence (CoE) for research and innovation in green hydrogen, and advancing hydrogen-based technologies in steelmaking.

• Carbon Capture and Utilization

At Bhilai Steel Plant, SAIL has partnered with Entity1 Value Emission Pvt. Ltd. to install a pilot-scale 1 TPD reactor that converts greenhouse gas emissions into value-added products, showcasing the commitment to CCU technologies.

• LeadIT Platform

Under the aegis of the India-Sweden Industrial Transition Partnership under LeadIT, SAIL has signed an NDA with Cemvision, Sweden, to explore the use of BOF slag in low-carbon cement production, highlighting the potential of industrial co-products in sustainable construction.

Greenery Development

Plantation at Barasua Iron Mines

Environmental sustainability and ecosystem recovery are deeply linked to the role of plantations. By absorbing carbon dioxide, trees contribute significantly to climate change mitigation, while also creating habitats that support biodiversity and encouraging the natural regeneration of forests. In line with its long-term environmental vision, SAIL has structured its a_orestation efforts to achieve more than land restoration alone. Due emphasis is placed on cultivating native species and rebuilding ecological balance, ensuring that rehabilitated areas evolve into stable, self-sustaining ecosystems. During FY 2025-26, SAIL reinforced its commitment by planting more than 3.15 lakhs saplings across its Plants, Mines, and Units, adding further to the cumulative total of approx. 22.7 million saplings planted since inception.

Ecological Restoration at Mines

Plantation on Waste Dump at KIOM

Repairing ecosystems that have been degraded is essential not only for protecting biodiversity but also for restoring the natural services that sustain life. With this understanding, SAIL actively works to convert former mining sites into productive and ecologically balanced landscapes, embedding environmental responsibility into its core operations.

Following the successful restoration of Purnapani Limestone Mines in Odisha, SAIL has embarked on new initiatives for the eco-restoration of Meghahatuburu Iron Ore Mines (MIOM), Kiriburu Iron Ore Mines (KIOM), and Gua Ores Mines (GOM). Each Mine has signed an MOU with the Institute of Forest Productivity, Ranchi, to implement eco-restoration strategies for mined-out areas and waste dumps.

The project covers 10 hectares at KIOM, 8.5 hectares at MIOM, and 16 hectares at GOM in the Saranda Forest Division in the state of Jharkhand, and envisages an extensive rehabilitation plan. Its approach goes beyond basic rehabilitation, focusing on long-term ecological recovery through targeted, science-driven interventions. By improving soil integrity, encouraging large-scale tree cover, and creating conditions that allow native species to return and thrive, these initiatives help transform disturbed areas into self-sustaining ecosystems. Through these efforts, SAIL reinforces its commitment to sustainable mining and environmental resilience, ensuring that its operations contribute meaningfully to ecological balance and climate action.

Harnessing Renewable Energy: Advancing Sustainable Power Solutions

In view of ensuring sustainable clean power and compliance with renewable energy targets laid down by the Ministry, your Company has taken focused initiatives towards adoption of RE power for its Plants and Mines through captive sources, open access and grid. As a part of this initiative, SAIL has successfully installed 22.595 MW of solar energy capacity, contributing to cleaner and more efficient power generation. Expanding its green energy footprint, solar water heating and solar lighting systems have been integrated into most guest houses and hospitals, further promoting energy conservation in key facilities. With a longstanding dedication to expand green cover, your Company has systematically implemented a_orestation programs across its Plants/Units/ Mines.

• Diversifying Renewable Energy Sources: To further strengthen its sustainable energy mix, SAIL is procuring approximately 13 MW of bagasse based renewable power at Salem Steel Plant during the sugarcane crushing season, leveraging biomass as a sustainable alternative.

In addition to this, your Company is increasing its reliance on green power procurement from utilities, reinforcing its commitment to eco-friendly energy solutions covered in detail in the Power section. In a significant move towards large scale green power adoption, DSP & ISP have secured arrangements for sourcing 50% of their total grid power requirements from DVC's Green Power supply. This strategic shift besides reducing dependence on conventional energy, also strengthens the Company's contribution to India's clean energy goals.

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

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

F. STRATEGIC INITIATIVES OF THE COMPANY

Your Company, considering the dynamic and competitive business environment, has strengthened its presence across future-oriented segments including global steel landscape by taking various strategic initiatives. In this regard, some of the significant initiatives are as under:

• Acquisition of Raw Material Assets in Foreign.

• Implementing business strategies for strengthening Operational Performance and Long-term Growth at Salem Steel Plant and Visvesvaraya Iron and Steel Plant.

• Established International Offices of SAIL at Dubai & Mozambique to enhance Global Footprint.

• Initiated a Large-scale Growth Strategy focused on Expanding Production Capacity to 35 MTPA and Optimizing Product Mix.

• Strategic Value-added Product initiative by enabling first-time rolling of Chequered Coils at Bokaro Steel Plant.

• A comprehensive Roadmap for Speciality Steel Production has been prepared, outlining:

A strategic approach to expand Specialty Steel production capabilities.

Market opportunities, technological requirements and investment needs in each Plant.

Modernisation of Alloy Steels Plant & Visvesvaraya Iron and Steel Plant focused on Specialty Steel Production.

• Diversification of Sources for Coking Coal procurement:

Evaluation of 7 Imported Coking Coal sources. Assessment of 5 imported PCI Coal sources.

• Energy Optimization

Coke Oven gas injection on sinter bed of Sinter Machine. Waste Heat Recovery System in Sinter Plants Reduction in coke moisture

• Decarbonisation Projects Undertaken

Hydrogen injection in Blast Furnace to reduce carbon footprint (under NGHM) A pilot scale (1TPD) set-up at RDCIS for H2 –DRI (under MoS)

• Implementation of SAIL DARPAN, a Company-wide HR Transformation exercise.

• HCM implemented at BSL, and to be implemented in entire SAIL.

• Implementation of WoW (Work from Anywhere) & Saabash (Instant Recognition) Scheme for Employees

• Optimization of Manpower based on Competitor Benchmarking & Study of Contract Labour Management System.

• Assessment of Digital Maturity of Plants and Units.

• Identification of Digital Transformation Roadmap of all the Units along with specific Digital Use cases for implementation.

• Dashboard for SAIL Units commissioned in ISP, DSP

CO2

& ASP

• Formulated Corporate Sustainability Policy.

• Strategic Upgradation of Production Capabilities through successful Hot Commissioning of Caster-4 in SMS-II of RSP.

• Strengthening presence in high-value mobility solutions through successful supply of wheels for Vande Bharat trains from Durgapur Steel Plant

• Institutional strengthening of Raw Material Security through creation of a dedicated Mining Vertical led by Director (Mining).

Your Company has adopted a multi-pronged approach that includes organic growth, brown-field projects, technology leadership through strategic alliances, ensuring raw material security by developing new mines, diversifying in allied areas, etc. In line with the above approach, SAIL has formed Joint Venture Companies in different areas viz. power generation, rail wagon manufacturing, slag cement production, securing coking coal supplies from new overseas sources, etc.

Disinvestment and Revival Initiatives

The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 27th October, 2016 had accorded ‘in principle' approval for strategic disinvestment of three units of Steel Authority of India Limited (SAIL) viz. Visveswaraya Iron & Steel Plant (VISP), Bhadravati, Karnataka; Salem Steel Plant (SSP), Tamil Nadu; and Alloy Steels Plant (ASP), Durgapur, West Bengal. The strategic disinvestment process for three units (ASP, SSP & VISP) of SAIL has undergone multiple attempts, with limited success. Despite efforts to invite Expressions of Interest (EOIs), the process faced challenges due to lack of technically qualified or interested bidders. Following recommendations from the Core Group of Secretaries on Disinvestment (CGD) and approval by the Alternative Mechanism (AM), the EOIs for VISP and SSP were annulled. Further, the SAIL Board in its meeting held on 30th January, 2026, has approved the proposal for requesting withdrawal of VISP and ASP from the strategic disinvestment to DIPAM through Ministry of Steel.

Business Excellence Initiative

Most of SAIL Plants/Units are certified to ISO 9001, ISO 14001, ISO 45001, ISO 50001 and ISO 27001 Management Systems. For maintenance of these Management Systems as per the requirement of Standards, timely audits were conducted and trainings were organised for better understanding of

Standards and latest updates for the same.

M/s. TUV India Limited, the empanelled Certification Agency, conducted the required Audits and Trainings related to these Management Systems. Empanelment of Certification Agencies has resulted in Reduction in Audit Man-Days, Reduced Audit man-day rates, Improved quality of Audits, Reduced administrative hassles, etc. To reap such befits again, fifth cycle of Empanelment is under finalisation. Every empanelment cycle has a validity of three years.

Information Technology Related Initiative

During FY 2025-26, your Company continued its journey of enterprise-wide digital transformation, embedding technology at the core of its operations to enhance efficiency, transparency, and resilience. The year witnessed a decisive shift from standalone digitization efforts to an integrated, data-driven ecosystem spanning production, marketing, finance, and workforce management. Some of the strategic initiatives in the fields of Advanced Analytics, AI, Process Automation & Integration, Cyber Security Enhancements, Laboratory & Quality Management, Logistics & Supply Chain Digitization, etc. implemented during the year are given below:

• SAP Rollout across 9 Mines under Collieries, covering key functional areas such as Materials Management, Services, SRM e-Tendering, Production Planning, Sales & Distribution, and Quality Management.

• Online Draw of Lots Module in SAP for L1 tenderers (as per PCP 2024), enhancing transparency in procurement.

• Integration of SAP with External Systems such as HMIS for Medical Test Management and GSTN for Customer Validation and Project Monitoring System.

• Development of multiple Enterprise Applications and Portals including Auction Platforms, Training MIS, Estate Management Systems, and Project Monitoring Tools.

• Contract Labour Management System (CLMS) at RSP including biometric attendance and pass management for all contract labour.

• Introduction of Forex Rate Automation via API, ensuring 100% accuracy and eliminating manual intervention.

• Real-time Monitoring Systems for Plant Operations, Logistics, and Material Tracking.

• Dedicated Dashboard for the Chief Vigilance Officer (CVO) and enhancement of the online Vigilance System into a comprehensive end-to-end platform covering request submission to clearance generation, along with a centralized database of all cases and a First Stage Advice Bank for quick reference.

• Startup Connect Portal launched on SAIL website for inviting applications from start-ups working on deployable Industry 4.0, AI/ML, GenAI, Agentic AI solutions that can create measurable impact in Enterprise Operations, Supply Chain, Finance, Marketing and Maintenance to partner with us in shaping the future of steel.

• SAIL strengthened its customer interface and logistics capabilities through digital innovation like the launch of Customer Portal with Virtual Account Number (VAN) Payment Integration, enabling faster payment realization and dispatch processing.

• Multi-modal Dispatch Systems with integrated logistics and transportation billing.

• SAIL significantly enhanced its cyber security posture and compliance framework by achieving ISO 27001:2022 Certification across Units and strengthening of cybersecurity infrastructure through: o Introduction of an AI-powered, integrated cyber security intelligence platform from CDOT, providing 24?7 near real-time threat detection, analysis, and resolution across enterprise IT assets and critical digital infrastructure. o Deployment of endpoint security solutions (e.g., XDR, antivirus systems).

• 2-Factor Authentication (2FA) for critical systems.

• Completion of Vulnerability Assessment & Penetration Testing (VAPT) for internet-facing applications.

• Real-time Data Capture Systems using technologies such as Modbus and OPC for monitoring Plant parameters.

• Establishment of AR/VR Laboratory to support training and operational simulations.

• Virtualized Server Environments ensuring high availability and system resilience.

• Integration of Laboratory and Production Systems (e.g., XRF data) with SAP for improved quality control.

• Deployment of CO_ Emission Dashboards for monitoring environmental performance.

• Systems for GST Compliance, Vendor Monitoring, and Regulatory Reporting.

• Strengthening of Business Intelligence (BI) Systems with integration of sales and operational data. These initiatives have significantly enhanced operational efficiency, transparency, customer experience, and governance, positioning SAIL for sustained growth in an increasingly digital and competitive environment.

Corporate Communication

The most significant role of Corporate Communications in any business is to serve as the bridge that transforms information into meaningful engagement, strengthening brand identity and deepening stakeholder trust. Over the past decade, business practices have undergone profound change, with the last five years marking a decisive shift across industries. Driven by Automation, Digitalization and the rapid integrationofArtificialIntelligence,companieshaveredefined operations, marketing, customer engagement and strategic planning. The technological interventions have fostered an interconnected world where information flows seamlessly & swiftly and stakeholder expectations evolve rapidly. In this landscape, the role of Corporate Communication has become more critical than ever, not merely as a channel for messaging, but as a structured function which will translate disruption into clarity, align diverse stakeholders with shifting priorities and communicate in real time.

Corporate Communications at SAIL

In SAIL, communication is not merely about information dissemination - it is about building trust, reinforcing brand identity and ensuring alignment with evolving stakeholder expectations. Communicating with all the stakeholders is central to SAIL's ethos, creating understanding, bridging gaps and fostering enduring relationships that drive results. By leveraging modern platforms, creative content and strategic outreach, your Company's corporate communications has positioned SAIL as a responsive, transparent and forward looking leader in the steel sector.

SAIL's communication strategies reflect its core values of sustainability, innovation, ethical governance and social responsibility, ensuring every message reinforces credibility and organisational vision. This is achieved through a two pronged approach: internal communication, which nurtures employee engagement, leadership connect, and organisational culture; and external communication, which strengthens brand visibility and stakeholder confidence. Together, these dimensions create a cohesive narrative that conveys the Company's achievements and contributions to India's industrial growth, while fostering transparency and trust across diverse audiences.

Internal Communication

At SAIL, employees are regarded as brand representatives, carrying forward the Organisation's values and achievements with pride. Internal communication nurtures belonging and gratitude, ensuring employees remain connected and committed to SAIL's vision and culture through various innovative and engaging initiatives.

Your company believes creativity and alignment in employees strengthensinnovationandcohesionwithintheOrganization. Thus, using internal communication, various company-wide competitions on innovative themes like AI usage and "One Day's Chairman" were hosted which saw enormous interest & participation with several creative responses from all sections of employees. The leadership connect was also strengthened through CMD's grade wise video messaging and New Year poster developed by corporate communication, highlighting Company priorities across the Organization. Visual communication tools like posters, standees and backdrops on subjects including vigilance, sustainability, safety, cost control and workplace ethics instilled awareness and created a consistent environment that kept employees aligned with SAIL's priorities. By bringing out various editions of corporate magazine SAIL News & video news capsule SAILTrack - both created in-house, consistently kept employees regularly informed about developments across the Company. The video news SAILTrack also celebrated its golden jubilee episode with completely internally developed

AI anchors Lauhika and Pravaah reflecting the adoption of smart technologies and innovative working of the corporate communications at SAIL. Extending employee engagement beyond the workplace initiatives like the SAIL Day Walk & Run and SAIL Cricket match were organized which fostered camaraderie among employees, families and ex-employees. Distinctive initiatives such as SAIL Gaurav Diwas, the virtual Foundation Day celebration showcased cultural capsules from all Plants, highlighted cultural diversity and unity. A dual mode (physical plus digital) corporate product brochure and CSR booklet were developed. While the product brochure boosted further awareness and improved accessibility to information on your company's various products, the CSR booklet further deepened stakeholder connect by narrating stories of beneficiaries and SAIL's impact on communities. Together, these initiatives ensured that internal communication remained a powerful tool for instilling brand pride, strengthening organisational culture and making every employee a proud ambassador of the SAIL brand.

External Communication

The perception created through diverse media and publicity platforms has built a strong image of the Company among external stakeholders. Carefully developed and designed communication ensured clarity, consistency and resonance. SAIL's image as the steelmaker to the nation was reinforced through press & media, social media handles of your Company, short _lms, national exhibitions, product branding, outdoor publicity and statutory advertisements. These initiatives collectively strengthened brand visibility and positioned SAIL as a responsive and forward looking organisation.

Targeted media releases earned higher placements, improving visibility and reach of your Company. Strategic media relations addressed critical industry issues such as anti-dumping, cheap imports and tari_ impacts, strengthening credibility and visibility of SAIL along with national steel industry. The various social media handles of your Company ampli_ed the brand presence of SAIL by highlighting its achievements, technology innovations, ESG commitments and new products among other topics. Leveraging the MyGov portal-national competitions and special features were hosted by SAIL, expanding the brand outreach and stakeholder connect. The participation in prestigious exhibitions like IITF, Bharat Mobility and Railway Expo offered fitting platforms to showcase SAIL's capabilities where your company put modern and AI driven displays. Several short _lms produced in-house were also showcased on various platforms to familiarize stakeholders with SAIL's modern image. The release of statutory advertisements in carefully selected mediums helped in the extending the brand outreach. Through its integrated internal and external communication strategies, SAIL has reinforced its identity as the steelmaker to the nation. By instilling pride among employees and building trust with stakeholders, your Company's corporate communications have ensured that SAIL's voice remains credible, consistent and impactful. These efforts continue to strengthen SAIL's reputation as a transparent, innovative and socially responsible leader in India's industrial growth story.

G. VIGILANCE ACTIVITIES

The objective of SAIL Vigilance is to facilitate an environment enabling people to work with integrity, efficiency and in a transparent manner, upholding highest ethical standards for the organization. To achieve this objective, the Vigilance Department carries out preventive, proactive and punitive actions with greater emphasis in the preventive and proactive functions. Following activities were undertaken during the FY 2025-26:

• To increase Vigilance Awareness amongst employees, vigilance awareness sessions and workshops were regularly held at various Plants and Units of the Company. A total of 247 workshops involving 6066 participants were organized for enhancing Vigilance Awareness on Whistle Blower Policy, Purchase/Contract Procedures, Preventive Vigilance, Conduct & Discipline Rules, Common Irregularities, Systems & Procedures followed in SAIL, etc. Amongst these training programmes, 25 dedicated two day Preventive Vigilance training programs were organised during FY 2025-26, wherein, a total of 537 executives of SAIL have been covered.

• Preventive Checks including file scrutiny and Joint Checks were conducted regularly in vulnerable areas of the Company. A total of 2140 Preventive Checks including file scrutiny and Joint Checks were conducted at different Plants/ Units.

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

• Nine cases were taken up for Intensive Examination at different Plants/Units. During these Intensive

Examinations, high value procurement/contracts are scrutinized comprehensively and necessary recommendations were forwarded to concerned departments for implementation.

• As per the Guidelines of Central Vigilance Commission, Vigilance Awareness Week was observed in SAIL during 27th October to 2nd November, 2025. The week started with administering the Integrity Pledge and reading out the messages of dignitaries on 27th October, 2025 at SAIL Corporate Office as well as in all Plants/Units of SAIL. During the week, Workshops/Sensitization Programmes, Customers Meet, etc. were organised. Further, events like quiz, essay, slogan & drawing/ poster, debate competition, etc. were organized for the employees across SAIL. As outreach measures, various events like Speech/Oratory competition, Essay/Slogan Drawing competition, etc. were organized for School/ College Students across various townships/locations of SAIL. Further, Training/Workshops/ Programmes were also organized during the Vigilance Awareness Week, 2025. A snapshot of the activities conducted at Plants/ Units during Vigilance Awareness Week, 2025 is as under:

Activity No. of Events Participants (Approx.)
Drawing / Essay / Slogan 106 4760
Competitions & Ethics Events
Quiz 39 1690
Gram Sabha 8 1320
Vendor / Customer Meets 24 730
Training / Awareness Sessions & Workshops 51 1910
Talk by Eminent Speakers 12 1050
Other events (Walkathon / Elocution / Debate / Skits / etc.) 74 5220

• As a precursor to Vigilance Awareness Week, 2025, a one-day Vigilance Seminar was organized on 24th September, 2025 at SCOPE Complex on the topic "Enhancing

Integrity & Efficiency in Procurement and Project Management." The seminar was attended by around 90 executives physically and over 200 participants through VC.

• During the Vigilance Awareness Week, 2025 campaign period, 2 numbers of e-books namely, Compendium of Case studies of Vigilance Cases and Compendium of Systemic Improvements, were launched by CMD, SAIL.

• As part of CVC's capacity-building program, four Training of Trainers (ToT) programs were conducted on the topic "CTE type Examination, Framing of Charge Sheets and Investigation & Report". These sessions were attended by offcials from SAIL Vigilance and by participants from other organizations.

• A one-day Preventive Vigilance training programme for non-executives was structured and trainings have been conducted at various Plants/Units, to sensitize non-executives about various preventive measures. A total of 34 trainings, covering 758 non-executives, have been carried out.

• In an another Preventive Vigilance initiative taken up, Ethics Club and Ethics Circle activities were undertaken in different Plants/Units during the FY 2025-26. In order to propagate ethical behavior in the society at large, Ethics Clubs have been formed in the schools of SAIL Townships with the belief that it is essential to create a strong ethical and moral foundation for children to facilitate formation of an ethically sustainable society.

• The concept of Learn from Each Other (LEO) Workshops has been started in SAIL Vigilance with the aim of arriving at result oriented solutions in common areas where complaints are being received in various Plants/Units and also to standardize the functioning of Vigilance. The LEO workshops provide a platform for Vigilance executives from SAIL Plants/Units as well as other PSUs to collaborate with each other on carving out new paths to take on the challenges of various important topics pertinent to Vigilance. The main takeaways from these workshops are also submitted to Higher Management for further necessary actions. During the Financial Year 2025-26, three LEO workshops (5th, 6th & 7th) were organized. The 5th LEO workshop, titled "Refractories @ SAIL–A Perspective on Procurement, Quality & Application", was organized by SSP during 2nd to 3rd May, 2025. Subsequently, the 6th LEO workshop on "Disciplinary Proceedings of Vigilance Origin" was organized at BSL on 1st & 2nd August, 2025. The 7th LEO workshop, on "Asset & Inventory Management – Role of Vigilance", was organized by CMO during 15th -16th December, 2025. Officers from SAIL Vigilance across various Units of SAIL participated in these LEO workshops.

• The following eight thrust areas were identified by SAIL Vigilance for examination/scrutiny:

(i) Emergency procurement cases of materials/ services.

(ii) Forward auctions (> 2 crores) under Marketing dept.

(iii) Man days Gap Assessment w.r.t. Estimate & PO terms along with deduction of applicable penalty as per work order in Service Contracts.

(iv) Audit of SIPs implemented in last 3 years.

(v) Multiple occupancy of quarters and penal rent deduction.

(vi) GeM Bids w.r.t. change in eligibility criteria during tendering process.

(vii) Sampling of Ferro Alloys. (viii) Delayed Projects.

• ‘Inspiration-Prerna', an in-house publication of SAIL Vigilance is being published regularly. The above publication contains case studies and informative articles to enhance awareness of the readers.

• As on 1st April, 2025, a total of 53 complaints were pending and the closing balance as on 31st March, 2026 was 124. The summary of disposal of complaints during 2025-26 is as under: Complaints Disposed:

Particulars Complaints
Closed as found anonymous / pseudonymous (filed in line with CVC Guidelines) 108
Closed as no vigilance angle/allegations not substantiated 198
Referred to other departments 91
Closed with preventive/administrative recommendations 135
Regular Departmental Actions (RDAs) initiated (Include 26 cases of Major Penalty against 42 employees and 19 cases of Minor Penalty against 34 employees) 45
Total Disposed 577

Vigil Mechanism

The Company has adopted Vigil Mechanism for conducting the affairs in a fair and transparent manner by adopting highest standards of professionalism, honesty, integrity and ethical behaviour. All employees of the Company and Directors on the Board of the Company are covered under this Mechanism. This Mechanism has been established for complainant i.e. employee and includes a Director to report concerns about unethical behaviour, actual or suspected fraud or violation of Code of Conduct. It also provides for adequate safeguards against the victimization of employees who avail the Mechanism and allows direct access to the Chairperson of the Audit Committee in exceptional cases. It also provides for protection of any other employee assisting in the investigation or furnishing evidence with regard to a complaint.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

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

AUDITORS' REPORT ON STANDALONE FINANCIAL STATEMENTS

The comments of Comptroller & Auditor General of India (C&AG) on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2026 under Section 143(6) (b) of the Companies Act, 2013 alongwith Management's replies are placed at Annexure-I to this Report. The Statutory Auditors' Report on the Standalone Financial Statements of the Company for the Financial Year ended 31st March, 2026 along with Management's replies thereon is placed at Annexure-II to this Report.

COST RECORDS & COST AUDITORS

The Company is required to maintain cost accounting records at its various Steel Plants as required under the provisions of Section 148 of the Companies Act, 2013. The Board of Directors of the Company on the recommendation of the Audit Committee appointed M/s. Shome & Banerjee, New Delhi; M/s. Niran & Co., Bhubaneswar; and M/s. Narasimha Murthy & Co., Hyderabad as Cost Auditors for the FY 2025-26. The Board had fixed a fee of Rs.12.12 lakhs plus applicable taxes and reimbursement of out of pocket expenses for conducting the Audit of cost records maintained by the Company for the FY 2025-26, which was rati_ed by the shareholders in the last Annual General Meeting.

SECRETARIAL AUDITOR'S REPORT

In terms of the provisions of Section 204 of the Companies Act, 2013, the Board of Directors has appointed M/s. Agarwal S. & Associates, Company Secretaries, as the Secretarial Auditor to conduct Secretarial Audit of the Company for the FY ended on 31st March, 2026. Secretarial Audit Report is placed at Annexure-III to this Report.

With regard to the observation of the Secretarial Auditor, about the composition of the Board of Directors of the Company was not as per requirements during the FY 2025-26, it is stated that appointment of Independent Directors including Woman Independent Director on the Board of the Company is made by the Company based on nomination by Government of India. The Company has requested Ministry of Steel, Government of India for nomination of requisite number of Independent Directors in its Board.

In respect of the observations regarding Composition of the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee was not in compliance with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 during a part of the Financial Year 2025-26, it is mentioned that non-compliance of the composition of these Committees is due to insufficient number of Independent Directors on the Board of the Company. However, on nomination by the

Government of India, four Independent Directors have been appointed in the Board of Directors of the Company and accordingly, composition of these Board Sub Committees is in compliance with the prescribed Regulations of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

SECRETARIAL AUDITOR'S APPOINTMENT

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

CORPORATE GOVERNANCE

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Corporate Governance Report and Auditors' Certificate on compliance of conditions of Corporate Governance is placed at Annexure-IV to this Report.

In terms of the SEBI Regulations, the Board has laid down a Code of Conduct for all Board Members and Senior Management of the Company. The Code of Conduct has been uploaded on the website of the Company. All the Board Members and Senior Management Personnel have afirmed compliance with the Code.

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

In terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility

& Sustainability Report describing the initiatives taken by the Company from Environmental, Social and Governance perspective forms part of this Annual Report and is placed at Annexure-V.

With respect to the observation of the Third Party Assurance provder in the BRSR, your Company has taken every step to get Safety Audit done by external agency (NSC) as well as internal agency (SSO) supplemented by appropriate measures to enhance the same in the critical zone. While Safety Culture Transformation is being rigorously driven from the top, proactive measures are being undertaken by involving non-executives and contract labour for spreading awareness on Safety Measures through safety circle and workshops and encouraging reporting near miss cases and taking immediate mitigating measures.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

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

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

SRCL is operating the Salem Refractory Unit which was acquired by SAIL from Burn Standard Company Limited on 16th December, 2011. Chhattisgarh Mega Steel Limited was incorporated as a Special Purpose Vehicle with an objective of setting up of an Ultra Mega Steel Project. The project has not taken off.

The Annual Accounts of the Subsidiary Companies and related detailed information shall be made available to the Shareholders of the holding and subsidiary companies, seeking such information at any point of time. Further, the Annual Accounts of the subsidiary companies are available for inspection by any Shareholder at the Registered Office of the Company and the Subsidiary Companies concerned between 11 AM to 1 PM on working days. A hard copy of the details of accounts of subsidiaries shall be furnished to the shareholders on receipt of written request.

CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to provisions of Section 129(3) of the Companies Act, 2013, the duly Audited Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2026 are placed at Annexure-VI to this Report.

AUDITORS' REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

The comments of Comptroller & Auditor General of India (C&AG) on the Consolidated Financial Statements of the Company for the Financial Year ended 31st March, 2026 under Section 143(6) (b) read with Section 129(4) of the Companies Act, 2013 along with Management's replies are placed at Annexure-VII to this Report. The Statutory Auditors' Report on the Consolidated Financial Statements along with the Management's replies thereon is placed at Annexure-VIII to this Report. Further, the statement containing salient features of the financial statements of the Subsidiary, Joint Venture and Associate Companies in the prescribed Form AOC-1 is placed at Annexure-IX to this Report.

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

The details of six Audit Paras pertaining to SAIL included in the Reports of Comptroller and Auditor General of India (C&AG) tabled in the Parliament in the FY 2025-26 are as follows:

Audit Report No. Subject of Audit Para
1. Report No.10 of 2025 (Performance Audit- Commercial) Inventory Management in Steel Authority of India Limited
2. Audit Report No.38 of 2025 (Performance Audit- Commercial): Performance of Blast Furnaces in Steel Authority of India Limited
3. Audit Para No.6.1 of Chapter VI of Report No.39 of 2025: (Union Government (Commercial)-Compliance Audit Observations) Performance of CFP
4. Audit Para No.6.2 of Chapter VI of Report No. 39 of 2025 (Union Government (Commercial)-Compliance Audit Observations) Unfruitful Expenditure on Cold Repair of Coke Oven Battery at ISP
5. Audit Para No.5.2 of Chapter V of Report No.18 of 2025 (Union Government (Commercial)- Compliance Audit Observations) Avoidable Expenditure of Rs.9.21 crore at DSP
6. Audit Para No.5.1 of Chapter V of Report No. 18 of 2025 (Union Government (Commercial)-Compliance Audit Observations) Extra Expenditure of Rs.12.88 crore.

ANNUAL RETURN

As per the provisions of the Companies Act, 2013, the Annual Return for FY 2025-26 is available at https://www. sail.co.in/sites/default/files/2025-26/ SAIL_DRAFT_ANNUAL_ RETURN_2025_26.pdf.

BOARD MEETINGS

During the year, 9 meetings of the Board of Directors of the Company were held, the details of which are given in the Corporate Governance Report at Annexure-IV, forming part of this Annual Report.

AUDIT COMMITTEE

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

INTERNAL FINANCIAL CONTROL (IFC) AND ITS ADEQUACY

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

SAIL has well established and documented policies and procedures, which are adhered to for transparent, efficient and ethical conduct of business and for safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of financial statements. Further, the Company has a sound corporate governance structure, and strong management processes, controls, policies and guidelines which drives the Organization towards its business objective and also meets the needs of various stakeholders. SAIL's robust protocols such as independent internal audit, documented policies, guidelines, procedures, regular review by Audit Committee / Board, etc. helps in compliance of Corporate Governance and Internal Financial Controls under the Companies Act, 2013, SEBI (LODR) Regulations, 2015, etc. SAIL is committed to the highest standards of Corporate Governance where the Board is accountable to all stakeholders for reporting effectiveness of Internal Financial Control and its adequacy. The adequacy of SAIL's internal financial control is reflected in its audit reports, regulatory compliances, and effective risk management. Regular updates and management oversight helps in maintaining and enhancing these controls, ensuring the Company's financial stability and integrity. The deployment of SAP Governance, Risk, and Compliance (GRC) modules and IT platforms significantly enhances the effectiveness of Internal Financial Control at SAIL. SAP GRC modules are designed to integrate with the Organization's financial and operational systems to streamline compliance, risk management, and control processes.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act, 2013(the Act), the Directors state that: (i) in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures; (ii) the Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profit or loss of the Company for that period; (iii) the Directors have taken proper and sufficient care for the maintenance of adequate Accounting Records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the Directors have prepared the Annual Accounts on a Going-Concern basis; (v) the Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and are operating effectively; and (vi) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

INDEPENDENT DIRECTORS' DECLARATION

In terms of Section 149(6) of the Companies Act, 2013, necessary declaration has been given by each Independent Director stating that he/she meets the criteria of independence. In terms of Section 149(7) of the Companies

Act, 2013, Independent Directors of the Company have undertaken requisite steps towards registration of their names in the data bank of Independent Directors maintained with the Indian Institute of Corporate Affairs.

In the opinion of the Board, the Independent Director(s) appointed during the year possess integrity, necessary expertise & experience and are independent of the Management.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

In terms of the provisions of Section 186 of the Companies Act, 2013 read with Companies (Meetings of Board and its Powers) Rules, 2014, the details of Loans, Guarantees and Investments given during the FY ended on 31st March, 2026 are given in Annexure-X to this Report.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB-SECTION (1) OF SECTION 188

All the contracts / arrangements / transactions entered by the Company during the FY 2025-26, with the related parties were in the ordinary course of business and on an arm's length basis. The transactions with the related parties have been disclosed in the financial statements. Therefore, particulars of contracts or arrangements with related parties referred to in Section 188(1) along with the justification for entering into such contract or arrangement in Form AOC-2 do not form part of the Report.

DIVIDEND DISTRIBUTION POLICY

In terms of the Regulation 43A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors of the Company has adopted Dividend Distribution Policy. The Policy is uploaded on the website of the Company- https://sail.co.in/sites/default/files/2024-03/ Dividend_Distribution_Policy_2017.pdf

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

In accordance with the provisions of Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of the Companies(Accounts) Rules, 2014, the particulars relating to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in Annexure-XI to this Report.

ENTERPRISE RISK MANAGEMENT

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

Key aspects of SAIL's ERM framework include:

• Establishing a well-defined Risk Governance Structure, with clear roles and responsibilities at all levels.

• Implementing a systematic process for risk identification, evaluation, escalation, mitigation, and monitoring.

• Maintaining comprehensive risk documentation, including a Risk Register, Risk Assessment Template, Risk Profile, and Risk Escalation Matrix.

• Conducting periodic risk reviews and reporting risks to the Board through the Risk Management Report.

• Enhancing a risk-aware culture across the Organization through training and awareness initiatives.

• Ensuring integration of risk management principles within HR policies and performance measurement criteria.

SAIL follows a bottom-up approach to risk management, with each business unit having its own Risk Management Committee responsible for overseeing the unit's Risk Management Framework. At the corporate level, the Enterprise Risk Management (ERM) division operates under the Chief Risk Officer, the Risk Management Steering Committee (RMSC) chaired by the Director (Finance) at Corporate Office and the SAIL Risk Management Committee (SRMC) headed by an Independent Director. In alignment with SEBI (LODR) Regulations, two SRMC meetings were held during the FY 2025-26.

By fostering a culture of risk awareness and accountability, SAIL remains committed to safeguarding stakeholder interests, enhancing business continuity, and achieving long-term sustainability in a dynamic risk environment. SAIL's Risk Management Policy Statement can be accessed on its offcial website at https://sail.co.in/sites/default/files/ Comp_policies/2020-02/ermpolicy.pdf.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

SAIL's Social Objective is synonymous with Corporate Social Responsibility. Apart from the business of manufacturing steel, the objective of your Company is to conduct business in ways that provide social, environmental and economic benefits to the communities in which it operates. For any organization, CSR begins by being aware of the impact of its business on society. With the underlying philosophy and a credo to make a meaningful difference in people's lives, your Company has been structuring and implementing CSR initiatives from the inception. These efforts have seen the erstwhile obscure villages, where SAIL Plants are located, turn into large industrial hubs today.

The CSR initiatives of your Company are undertaken in conformity to the Companies Act, 2013, Schedule-VII to the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014, Companies (CSR Policy) Amendment Rules, 2021 and 2022. SAIL carries out CSR projects mainly in and around periphery of steel townships, mines and far _ung locations across the Country in the areas of Rural Development including maintenance of Model Steel

Villages, providing Education, Healthcare, Immunisation, Ante/ post-natal care, Access to Drinking Water, Sanitation, Road side tree plantation, Environment Sustainability, Women Empowerment, Assistance to Sr. Citizens & Divyangs, Sustainable Income Generation through Self-Help Groups, Promotion of Art and Culture, etc.

The details of various CSR initiatives taken by the Company along with the Report on CSR in prescribed format are placed at Annexure-XII to this Report. The CSR Policy of the Company is available on the website of the Company https://sail.co.in/sites/default/files/Comp_policies/2023-05/ Approved-SAIL-CSR-Policy-2021-20.pdf

Healthcare: Your Company's extensive and specialised Healthcare Infrastructure provided specialized and basic healthcare to nearly 12.32 lakh people living in the vicinity of its Plants and Units during the period 2021-2026. In order to deliver quality healthcare at the doorsteps of the needy, regular health camps are being organised in various villages on fixed days for the people living in the periphery of Plants/ Units/Mines. During the FY 2025-26, regular Health Camps have been organized and 5 Mobile Medical Units (MMUs) extended quality healthcare to about 1.40 lakh villagers at their doorsteps in peripheral areas of Plants, Units and Mines. 24 Primary Health centres at Plants exclusively provided free medical care and medicines to more than 1,43,000 patients during FY 2025-26.

Education: To develop the society through education, SAIL is supporting over 77 schools, providing education to more than 40,000 children in the steel townships, 22 Special Schools (Kalyan, Mukul & DAV Vidyalayas) are benefitting around 23000 BPL category students at integrated steel plants and mines locations with facilities of free education, mid-day meals, uniform including shoes, text books, stationary items, school bag, water bottles, etc., under CSR. More than 600 children from tribal and naxal-affected areas are getting free of cost comprehensive educational facilities viz. Schooling, Accommodation, Meals, Uniform, Textbooks, Infrastructure, etc. at Saranda Suvan Chhatravas and Central School, Kiriburu; Gyanodaya Chhatravas, BSP School Rajhara, Bhilai; Gyanjyoti Yojna, Bokaro; and other schools.

Your Company in association with the Akshaya Patra Foundation, is providing Mid-day meals and dry ration kits to around 60,000 students in over 600 Govt. schools in Bhilai and Rourkela.

Women Empowerment & Sustainable Income Generation: Vocational and specialised skill development training targeted towards sustainable income generation has been provided to about 1260 youths and 2375 women of peripheral villages in areas such as Nursing, Physiotherapy, LMV Driving, Computers, Mobile repairing, Welder, Fitter, Electrician training, Improved agriculture, Mushroom cultivation, Goatery, Poultry, Fishery, Achar/Pappad/Agarbati/Candle making, Screen printing, Handlooms, Sericulture, Yarn Weaving, Tailoring, Sewing and Embroidery, Gloves, Spices, Towels, Gunny-bags, Low-cost-Sanitary Napkins, Sweet Box, Bans/Jute Shilp, Smokeless challah making, etc. About 492 youths have been sponsored for ITI training at ITIs Bolani, Bargaon, Baliapur, Rourkela and Bokaro Private ITI, etc.

Connectivity & Water facilities in Rural Areas: Over 79.03 lakh people across 450 villages have been connected to mainstream by SAIL, since its inception, by constructing and repairing roads. Over 8176 water sources have been installed, since inception, thereby enabling easy access to drinking water to over 50 lakh people living in far-_ung areas.

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

Support to Divyangs and Senior Citizens: Divyang (children/people) are being supported through provision of equipment like-tricycle, motorized vehicles, calipers, hearing aids, artificial limbs, etc. Your Company supports centres and programmes at its Plants like "Schools for blind, deaf & mentally challenged children" and "Home and Hope" at Rourkela; "Ashalata Kendra" at Bokaro; various programs like "Handicapped Oriented Education Program" and "Durgpaur Handicapped Happy Home" at Durgapur; and "Cheshire Home" at Burnpur. Old age homes are being supported at different Plant townships like "Siyan Sadan" at Bhilai, "Abasar", "Acharya Dham" at Durgapur, "Sr. Citizens Home" at Rourkela, etc. Series of events were organised across the Company to celebrate the ‘International Day of Persons with Disabilities' commencing on 3rd December, 2025. The assistive aids & devices like Tricycle, Motorized Vehicles, Calipers, Hearing Aids, Smart Phones, Smart Canes, etc. provided by Artificial Limbs Manufacturing Corporation of India (ALIMCO) were distributed among Divyangjans through Plants/Units and Corporate Office at New Delhi of your Company.

Sports, Art & Culture: SAIL is regularly organizing inter-village sports tournaments, extending support to major National sports events and tournaments. Also, supporting and coaching aspiring sportsmen and women through its residential sports academies at Bokaro (Football), Rourkela (Hockey)-with world class astro-turf ground, Bhilai (Athletics for boys), Durgapur (Athletics for girls) and Kiriburu, Jharkhand (Archery). Cultural events like Chhattisgarh Lok Kala Mahotsav, Gramin Lokotsav are organised every year. Bokaro Steel Plant organised Special Olympics Bharat (SOB) under National Sports Preparatory Training Camps for participation of the Divyang athletes in the Special Olympics World Games and other sports tournaments.

Development of Aspirational Districts: In order to provide comprehensive development of both physical and social infrastructure, SAIL has undertaken CSR activities in 6 Aspirational Districts, viz. Kanker, Narayanpur and Rajnandgaon in Chhattisgarh and West Singhbhum, Bokaro, Ranchi in Jharkhand.

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

REPORTING OF FRAUD BY AUDITORS: During the FY 2025-26, no instance of fraud has been reported by the Auditors.

PERFORMANCE EVALUATION OF DIRECTORS AND BOARD: Ministry of Corporate Affairs has vide its Notification dated 5th June, 2015 has exempted Government Companies from the provisions of the Companies Act, 2013 which, inter-alia, provides that Sub Sections (2), (3) & (4) of Section 178 regarding appointment, performance evaluation and remuneration shall not apply to Directors of the Government Companies. Further, the Ministry of Corporate Affairs vide Notification dated 5th July, 2017 has notified certain amendments in Schedule IV of the Companies Act, 2013, according to which, provisions relating to evaluation of performance of Non-Independent Directors, Chairperson and Board have been exempted for Government Companies. PARTICULARS OF EMPLOYEES: In terms of the provisions of Section 197(12) of the Companies Act, 2023 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company is required to disclose the ratio of the remuneration of each director to the median employee's remuneration and details of employees receiving remuneration exceeding limits prescribed from time to time in the Board's Report.

Ministry of Corporate Affairs vide its Notification dated 5th June, 2015 has exempted Government Companies from complying with the provisions of Section 197 of the Companies Act, 2013.

MATERIAL CHANGES AFFECTING THE COMPANY

There have been no material changes and commitments affecting the financial position of the Company between the end of the Financial Year to which the financial statements relates and the date of this Report.

MEMORANDUM OF UNDERSTANDING (MOU) FRAMEWORK FOR PERFORMANCE EVALUATION FOR THE YEAR 2025-26

Your Company is required to adhere to the Memorandum of Understanding (MoU) guidelines issued by the Department of Public Enterprises (DPE). The MoU Framework for FY 2025-26 provides a structured and objective mechanism for evaluating the performance of CPSEs on a consolidated basis. It emphasizes market-oriented, measurable, and verifiable parameters covering growth, profitability, operational efficiency, capital expenditure, innovation, and shareholder value creation, while also incorporating compliance with key Government priorities such as CSR, MSME procurement, corporate governance, and timely payments. The MoU targets consist of two parts. The first part is "Main Parameters" as listed in the MoU (Consolidated) sheet, and the second part is "Compliance Parameters".

1.0 Main Parameters:

The Main Parameters under the MoU Guidelines constitute the core performance indicators used for evaluating a Company's operational, financial, and strategic performance. These parameters cover areas such as Revenue from Operations, Physical Output, Capital Expenditure, Profitability Ratios, Asset Utilization, R&D expenditure, and Shareholder Value Creation etc.

The performance of the Company against the key quanti_able Main Parameters stipulated under the MoU Guidelines is presented below. These parameters reflect the Company's achievements in critical areas of financial, operational, and strategic performance during the year.

Parameter Unit Performance 2025-26
1 Revenue from Operations Rs Crore 110811
2 Production of Finished Steel Lakh 169.51
Tonne
3 Supply of Speciality Steel supplied in Defence, Nuclear, Aerospace and other strategic sectors Lakh Tonne 1.08
4 Production of Iron Ore for other than Captive Use Lakh Tonne 30.13
5 Capital Expenditure Rs Crore 12910
6 Fuel Rate Kg / THM 553
7 HR Productivity Tonne / Employee 188.80
8 EBITDA (as a percentage of Total Income) % 11.92
9 Return on Capital Employed % 9.76
10 Asset Turnover Ratio % 82.06
11 Expenditure on R&D (including Innovation Initiatives, as percentage of previous 3 years average PBT) % 7.73

2.0 Compliance Parameters:

Compliance Parameters under the MoU Guidelines assess a CPSE's adherence to key statutory, governance, and policy requirements prescribed by the Government. These parameters encompass CSR obligations, corporate governance norms, MSME-related compliances, health and safety initiatives, internship targets, and leadership development measures.

The performance of the Company against some of the quanti_ed Compliance Parameters prescribed under the MoU Guidelines is given below.

2.1 DPE Guidelines on CSR Expenditure:

SAIL CSR initiatives have always been undertaken in conformity with the CSR provisions (Section 135) of Companies Act, 2013, its Schedule-VII, Companies (CSR Policy) Rules, 2014, and Companies (CSR Policy) Amendment Rules, 2021 & 2022 taking into consideration that the items enlisted in Schedule VII are broad based, intended to cover a wide range of activities and the entries in Schedule VII are to be interpreted liberally to capture the essence of the subjects enumerated in the said schedule towards CSR expenditure incurred thereof by the Company. During the FY 2025-26, out of the mandatory CSR obligation of Rs.53.11 crore, an expenditure of Rs.16.45 crore has been incurred on development of the 6 Aspirational Districts adopted by SAIL namely Kanker, Narayanpur, Rajnandgaon Districts in the state of Chhattisgarh, Bokaro, West Singhbhum and Ranchi Districts in the state of Jharkhand. This is 30.97% of the mandatory CSR obligation.

It is pertinent to mention that even during adverse financial condition of the Company i.e. when the Mandatory CSR expenditure was ‘NIL" for the FY 2018-19 and FY 2019-20, SAIL continued to allocate funds out of Operations Budget to sustain ongoing CSR activities so as to fulfill its responsibilities as a responsible Corporate and spent Rs.33.80 crores towards the then Theme projects. Most of the CSR activities/projects undertaken particularly on account of Education then are being continued/sustained till date within the budget available on year on year basis. Further, it may be appreciated that the expectations of the local community comprising mostly of dependents of land losers/displaced families residing in the periphery of the area of operation of Plants/Units, other local stakeholders, etc. are also to be continuously met particularly in the thrust areas of education, skill development, women empowerment, livelihood generation etc. within the available budget itself on year to year basis for inclusive growth of community at large also having a bearing on conducive environment for running the Company.

During the period related to theme Projects i.e. FY 2018-19 to FY 2025-26, cumulative expenditure of Rs.385.79 crore has been incurred out of the cumulative Mandatory CSR obligation of Rs.627.35 crore, which is 61.50% of the DPE Theme projects, as prescribed on yearly basis. During the year FY 2025-26, a total expenditure of Rs.53.38 crore towards CSR has been incurred, out of which an amount of Rs.29.35 crore has been incurred on projects related to ‘'Health & Nutrition" i.e. DPE Theme Projects, which is approximately 55% of the mandatory CSR expenditure for the FY 2025-26, i.e. Rs.53.11 crore.

2.2 Provisions in the Companies Act, 2013 or SEBI (LODR) Regulations in case of listed entities on Corporate Governance:

The Company is compliant with all the provisions in the Companies Act, 2013; SEBI (LODR) Regulation, 2015 and DPE Guidelines on Corporate Governance except relating to Composition of Board of Directors and consequently in Composition of Board Sub Committees. Steel Authority of India Limited (SAIL) being Government Company, Directors on the SAIL Board are appointed based on the nomination by Government of India. As on 31st March, 2026, against the requirement of 11 Independent Directors, there were only 4 IDs. There was a shortfall of 7 IDs. The short fall in the positions of IDs and filling up the vacancies in the SAIL Board have been taken up with the Administrative Ministry and DPE. Further, the SAIL Board has been regularly kept informed in this regard.

Due to shortfall in Independent Directors, the composition of Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee was not in compliance during part of Financial Year 2025-26.

2.3 Onboarding of CPSE on all operational TReDS platforms:

Onboarding of CPSE on all operational TReDS platforms is a Compliance Parameter under the MoU Framework aimed at promoting timely financing and payment facilitation for MSMEs through the Trade Receivables Discounting System (TReDS). CPSEs are required to be on boarded on all operational TReDS platforms. In this respect, your Company is on boarded on all the five (5) TReDS platforms as under:

• RXIL (Receivables Exchange of India Ltd)

• M1xchange

• Invoicemart

• DTX Treds Platform

• C2treds

2.4 Timely payments to MSE vendors as prescribed in MSMED Act:

CPSEs must ensure prompt payment to MSEs within the stipulated timelines prescribed under the Micro, Small and Medium Enterprises (MSME) Development Act, 2006. The payments to the MSE vendors were made within the prescribed timelines.

2.5 Procurement of Goods & Services from MSEs overall, SC/ST owned MSEs and Women owned MSEs (as percentage of total procurement):

As per extant MoU Guidelines, CPSEs must ensure procurement from MSEs as per the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2018. The three sub-parameters will be evaluated separately and independently.

In this regard, your Company has fulfilled following:

Parameter Status of Compliance in SAIL
1. Procurement of goods or services (as % of Total procurement) MSE overall – 25% 26.71%
2. Procurement of goods or services (as % of Total procurement) SC/ST owned MSEs – 4% 0.28%
3. Procurement of goods or services (as % of Total procurement) Women owned MSEs – 3% 1.29%

2.6 Steps and Initiative taken for Health and Safety improvement of Human Resources in CPSEs:

"Increasing safety training of employees by 10% over CPLY" has been prescribed as a Target for the Parameter for 2025-26 in the category of compliance viz. "Steps and initiative taken for Health & Safety improvement of Human Resources in CPSEs".

The target figures for coverage of employees under safety training are as below: 2025-26 - 68,072 employees (against 61,883 employees in 2024-25). As against the above target, your Company has imparted safety training to 73063 employees during the Financial Year 2025-26.

2.7 Targets under PM Internship Scheme of MCA:

The Prime Minister Internship Scheme (PMIS), spearheaded by the Ministry of Corporate Affairs, is designed to harness the potential of India's youth population by providing them with 12 month paid internships in top companies of India. The scheme targets individuals aged 21 to 24 who are currently not enrolled in any full-time academic program or employment, offering them a unique chance to kick-start their careers. Each intern gets a monthly financial assistance of Rs.5,000 supplemented by one-time financial assistance of Rs.6,000.

Your Company has been identified by the Ministry of Corporate Affairs to participate in the scheme. The scheme is implemented through an online portal (www.pminternship. mca.gov.in) developed by the Ministry of Corporate Affairs. The portal serves as a centralized platform for end-to-end scheme implementation and internship lifecycle management.

The Company implemented the scheme by following the detailed implementation mechanism as prescribed by the Ministry of Corporate Affairs. The portal also acts as a medium for the detailed operational guidelines for both companies and youth to participate in the Pilot Project through the portal. The pilot round involves a hierarchical process from screening of applications to selection and on boarding of interns. The regular process included marking them eligible or ineligible and creation of training schedule and Quarterly progress report. However, grievances were resolved through the open house webinars or registering grievance on the portal. Job roles for PMIS were identified.

No specific targets for the Company have been prescribed by the Ministry of Corporate Affairs (MCA) under the Prime Minister Internship Scheme (PMIS), and the implementation is being carried out as per the guidelines and operational framework issued by the Ministry from time to time.

In the PMIS Pilot Round-I, a total of 957 internship offers were uploaded. These offers attracted 1,501 applications, leading to the issuance of 783 offer letters. Of these, 273 offers were accepted, and 143 candidates ultimately joined. Each Plant/Uunit showed significant levels of engagement. During, PMIS Pilot Round-II, a total of 103 internship IDs have been posted. There are 532 total opportunities available, 1211 applications have been received and 243 interns are selected. 39 candidates ultimately joined.

The PMIS–Pilot Round-III Project guidelines (O.M. dated 12th March, 2026) provides that internships are structured engagements of 6–9 months, with at least 50% exposure in actual work environments, aimed at enhancing youth employability. The scheme is open to Indian nationals aged 18–25 years who are not in full-time employment and meet the prescribed educational and income criteria, while candidates from premier institutions or with professional degrees are excluded. It follows a DBT model, offering a monthly stipend of Rs.9,000 (Rs.900 by the company and Rs.8,100 by the Government), along with a one-time grant of Rs.6,000 and insurance coverage.

2.8 Leadership Development Plan:

The SAIL Board approved the SAIL Succession Planning Policy in July, 2023. Further, in order to cater to the needs of the changing business scenario, the Company has engaged M/s. Boston Consulting Group to conduct gap-analysis of existing organizational Set-up and HR Systems & Policies with reference to strategic goals of the Company, Industry Benchmarks, Standard HR Excellence Framework and applicable government guidelines which, inter-alia, includes providing a revised framework for implementation of succession planning and leadership development plan in SAIL, along with Continuous Performance Monitoring and Promotion Mechanism. Once the recommendations are received from M/s. BCG, revised Succession Planning Policy & Leadership Development Plan shall be prepared & submitted for the approval of the SAIL Board. Upon approval, the same will also be forwarded to DPE/CBC for information.

2.9 Surplus Non-core Asset (Land and Building) Monetization Plan:

DPE has advised the CPSEs to prepare a monetization plan for surplus non-core asset (land and building) and submit within a stipulated time through the Administrative Ministry / Department. Your Company has complied with the stipulation of the DPE.

GENERAL DISCLOSURES i. During the year, the Company has not accepted any deposits under the Companies Act, 2013. ii. No significant or material orders were passed by the Regulators or Courts or Tribunals impacting the going concern status and Company's operations in future. However, attention of Members is drawn to the statement on contingent liabilities in notes forming part of the Financial Statements. iii. During the year, there has been no change in the nature of Business of the Company. iv. During the year, no application was made and no proceeding is pending under the Insolvency and Bankruptcy Code, 2016. v. There has been no receipt of remuneration or commission by the Chairman & Managing Director or the Whole Time Directors of the Company from any of its Subsidiary Companies.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

• Dr. Gopal Singh Bhati (DIN:09406763) has been reappointed as Independent Director w.e.f. 21st April, 2025.

• Dr. Anju Bajpai (DIN:09478503) has been appointed as Independent Director w.e.f. 21st April, 2025.

• Shri Manjeet Kumar Razdan (DIN:09413663) has been appointed as Independent Director w.e.f. 21st April, 2025.

• Prof.(Dr.) K. Jayaprasad (DIN:09585722), Independent

Director, has ceased to be Director w.e.f. 25th April, 2025.

• Dr. Ashok Kumar Panda, (DIN:08532039) has been appointed as Director (Finance) w.e.f. 30th April, 2025.

• Shri Anirban Dasgupta (DIN:06832261), Director (In-charge, Bhilai Steel Plant) has ceased to be Director w.e.f. 30th April, 2025.

• Shri Ashish Chatterjee (DIN:07688473) has been appointed as Government Nominee Director w.e.f. 11th June, 2025.

• Shri Vejendla Srinivasa Chakravarthy (DIN:09370715), Director (Commercial) has ceased to Director w.e.f. 30th June, 2025.

• Shri Pranoy Roy (DIN:10123502) has been appointed as Independent Director w.e.f. 8th July, 2025.

• Shri Surajit Mishra (DIN:11166409) has been appointed as Director (In-charge, Burnpur and Durgapur Steel Plants) w.e.f. 15th July, 2025.

• Shri Chitta Ranjan Mohapatra (DIN:11051608) has been appointed as Director (In-charge, Bhilai Steel Plant) w.e.f. 15th July, 2025.

• Shri Birendra Kumar Tiwari (DIN:09699855), Director (In-charge, Bokaro Steel Plant) has ceased to be Director w.e.f. 31st August, 2025.

• Shri Priya Ranjan (DIN:11450035) has been appointed as Director (In-charge, Bokaro Steel Plant) w.e.f. 24th December, 2025.

• Shri T.N. Natarajan (DIN:11589908) has been appointed as Director (Commercial) w.e.f. 19th March, 2026.

• Shri Amarendu Prakash (DIN:08896653) has resigned from the post of Chairman & Managing Director w.e.f. 1st April, 2026.

• Shri Krishna Kumar Singh, Director (Personnel) was holding additional charge of the post of Chairman &

Managing Director, SAIL from 2nd April, 2026 to 8th May, 2026.

• Dr. Ashok Kumar Panda, Director (Finance) has been appointed as Chairman & Managing Director w.e.f. 9th May, 2026.

ACKNOWLEDGEMENT

Your Directors are deeply appreciative of and thankful for the valuable guidance, support and co-operation received from Government of India, particularly Ministry of Steel, Regulatory & Statutory Authorities, Ministry of Environment, Forests & Climate Change, DIPAM, NITI Aayog, Department of Public Enterprises, Railways, State Governments, Electricity Boards, etc. The Board also extend its heartfelt thanks to all its Stakeholders, including Members, Investors, Customers, Vendors, Bankers and Consultants for their continued support and unwavering confidence reposed in the Company. The Directors also thank the Comptroller & Auditor General of India, Statutory Auditors, Cost Auditors, Secretarial Auditor and other professionals associated with the Company for their valued and constructive suggestions and continuous cooperation.

Last but not least, your Directors with deep sense of appreciation gratefully acknowledge the sincere, untiring & dedicated efforts and contribution made by every member of the SAIL Family to meet the Company's commitments.

For and on behalf of the Board of Directors
(Dr. Ashok Kumar Panda)
Chairman & Managing Director
Place: New Delhi
Date : 31st August, 2026

   

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