Introduction of Ispat Industry Ltd.

Since its inception, the Ispat Group has been moving from
strength to strength, consistently breaking new grounds and
spearheading new developments in iron and steel. Ispat Industries, the
flagship of the Ispat Group, has taken expansive technological strides
to emerge as one of India’s leading manufacturers of quality steel
products. In the process, the company and its parent Group have
achieved many firsts in the steel sector and swept past a host of
memorable milestones.

1952
Mr. M L Mittal, the founder chairman of the Ispat Group, begins
his foray into the iron and steel business with the takeover of an ailing
rolling mill in Calcutta, India. The plant is turned around and later sold
off.

1953
A combination of technological vision and management leads
Mr. M.L. Mittal to experiment with an electric arc furnace at a steel
plant in Vizag, India. Spotting emerging trends in steel-making
technology, he establishes nine such Greenfield plants in India. Soon,
he acquires the necessary licence and takes over TOR Steel.

1
1974
Mr. M L Mittal enters the international steel arena by setting up
PT Ispat Indo in Indonesia. He christens his steel-making Group as
‘The Ispat Group’. In the Hindi language, Ispat means steel.

1980
This decade witnesses a series of acquisitions around the world
and hectic expansion in India. The Ispat Group takes over the Iron &
Steel Company of Trinidad and Tobago, Sidemgical Del Balsar SA,
Mexico, and additional units in Canada, Germany and Ireland. In
India, the Group sets up the first thin gauge galvanized sheet unit, a
specialty mini-mill to make rails and structures - Ispat Profiles, and a
cold rolling complex at Nagpur.

1984
Nippon Denro Ispat Limited was incorporated in 1984 and was
granted the first Industrial License by Government of India for
manufacturing Galvanised Plain/Corrugated Sheets.

1985
Nippon Denro Ispat Limited, now known as Ispat Industries
(IIL), is established and it rapidly emerges as the largest manufacturer
of galvanised steel products in the private sector.

2
1988
To better provide steel solutions to an increasingly sophisticated
marketplace, IIL sets up a highly advanced cold rolling reversing mill,
in collaboration with Hitachi of Japan, to manufacture a wide range of
cold rolled carbon steel strips.

1988
IIL installs a colour coating line – the first of its kind in India –
for the manufacture of pre-painted colour steel sheets.

1988
Nippon Denro Ispat Limited was granted Industrial License for
Cold Rolled Sheets.

1994
Business interests within the Ispat Group are demarcated. The
eldest son, Mr. L N Mittal continues to manage the international
operations while Mr. Pramod Mittal and Mr. Vinod Mittal, the
younger brothers focus on steel and other businesses in India.

1994
IIL commissions the world’s largest gas-based single mega
module plant for manufacturing direct reduced iron (sponge iron), at
3
its Maharashtra-based Dolvi plant. Within three months, the plant
exceeds its capacity of 1 million tones per annum (MTPA) of high
quality DRI.

1995
A 1.5 MTPA hot strip mill with Continuous Strip Processing
(CSP) technology is installed at Dolvi. A mechanised multi-functional
jetty situated close to the plant facilitates the automation of raw
material handling.

1998
A world-class integrated steel plant for the production of hot
rolled coils is launched, armed with cutting edge technologies, such as
the Conarc Process for steel making and the Compact Strip Process,
both introduced for the first time in Asia.

2000
The new millennium is witness to the erection and
commissioning of a 2 MTPA blast furnace at the Dolvi steel complex
in record time.

2003
Sponge iron capacity increased from 1.2 mtpa to 1.4 mtpa

4
2004
» Hot rolled coil steel-making capacity increased from 1.5 mtpa to 2.4
mtpa

» Sponge iron capacity increased from 1.4 mtpa to 1.6 mtpa

2005
Further expansion of Hot rolled coil steel capacity under
implementation.

5
 Is p a t- M ile s to n e

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C a p a c it y / O p e r a t i o n s r e la t e d E v e n t s

6
 ISPAT Today
Ispat Industries Limited (IIL) is one of the leading integrated
steel makers and the largest private sector producer of hot rolled coils
in India. Set up as Nippon Denro Ispat Limited in May 1984 by
founding Chairman Mr. M L Mittal, IIL has steadily grown into a Rs.
9,400-crore company, assuming its position as flagship of the reputed
Ispat Group. A corporate powerhouse with operations in iron, steel,
mining, energy and infrastructure, the Group today figures among the
top 20 business houses in the country.

Headquartered at Mumbai, IIL employs a total of 3000 people

and is the leader in the national specialist steel market. The company's
core competency is the production of high quality steel, for which it
employs cutting edge technologies and stringent quality standards. It
produces world-class sponge iron, galvanized sheets and cold rolled
coils, in addition to hot rolled coils, through its two state-of-the art
integrated steel plants, located at Dolvi and Kalmeshwar in the state of
Maharashtra.

The sprawling 1,200 acres Dolvi complex houses the 3 million

tones per annum hot rolled coils plant, that combines the latest
technologies - the Conarc process for steel making and the compact
strip process (CSP) - introduced for the first time in Asia.

The complex also has a 1.6 million tones per annum sponge iron
(DRI) plant, which was commissioned in 1994 as the world's largest
and most efficient gas-based single mega module plant. Moreover, the
7
Dolvi complex is home to a 2 million tones blast furnace and also
boasts a mechanized multi-functional jetty situated nearby, that
facilitates the automation of raw material handling. A new 2.24
million tones per annum sinter plant; 1260 tones per day oxygen and a
new electric arc furnace have also been commissioned at IIL Dolvi.

Ispat is the only steel maker in India and among a few in the
world to have total flexibility in choice of steel making route, be it the
conventional blast furnace route or the electric arc furnace route. Its
dual technology allows Ispat the freedom to choose its raw material
feed, be it pig iron, sponge iron, iron ore, scrap or any combination of
various feeds. It also has total flexibility in choosing its energy source,
be it electricity, coal or gas.

The Kalmeshwar complex houses Ispat's 0.4 million tones cold

rolling complex, which also includes the galvanized plain/ galvanized
corrugated (GP/GC) lines and India's first colour coating mill.

Technology and innovation have always been the cornerstones of

IIL's quest for excellence and these state-of-the-art plants facilitate the
company's mission to attain and sustain market leadership, through
technological and product superiority.

The company's strengths lie in its integrated process

management, knowledge management and control systems. And its
seamless supply chain management systems further the efficient use of
raw materials, while its staff of highly skilled engineers, technicians

8
and managers with specialized domain knowledge, ensure the choice
of the relevant technology and the ability to produce international
quality products at a competitive price.

In line with its vision for the future, IIL is expanding its HRC
capacity to 3.6 million. Moreover, it aims to complete its vertical
integration process, increase the proportion of high-grade and value-
added steel products in its product mix and leverage the advantage the
modern design and the size of the facilities offers.

With investments of over US $2 billion, IIL is the seventh largest

Indian private sector company in terms of fixed assets. It aims to
consolidate its market leadership in the national specialty steel market
by capitalizing on the proximity of its manufacturing facilities to
major consumers of flat steel products in Maharashtra, while
increasing its presence in international markets by using its convenient
port location.

In the short span of time since its inception, Ispat Industries has
steadily raised the bar - in terms of its relentless pursuit of
technological advancement, unwavering focus on innovation, strident
emphasis on quality products and its constant initiatives aimed at
ensuring customer satisfaction. As it rapidly forges ahead on all these
fronts, IIL has successfully reinforced its position as market leader,
while simultaneously making technological breakthroughs and setting
even higher standards for it.

9
INTEGRATED STEEL COMPLEX

10
 ISPAT Overview

 Manufactures and markets Hot Rolled (HR) coils, Cold Rolled (CR)
Business
Coils, Galvanized and Colour Coated sheets

 Strong presence in the Original Equipment Manufacturer, Liquefied

Petroleum Gas and Oil & Gas pipeline applications, roofing and
Key paneling, drums and barrels, tube segments, automobile and white
Offerings goods segment
 High growth domestic market, which gives freight advantage, is located
within 100 km

 Uses the Thin Slab Casting Technology and the Twin Shell Electric Arc
Furnace, one of the most advanced steel making technologies in the
Technology world
and  Combines the usage of sponge iron from the sponge iron (DRI) plant
Facilities
and hot metal from the blast furnace in the Electric Arc Furnace for
making steel
 Captive port with annual handling capacity of 10 MTPA

Employees  Approximately 3,000 employees

Awards to ISPAT Industry Ltd.

11
• Excellence Kaizen Award 2005

The QCFI Convention is a forum for interaction & sharing of

Knowledge, ideas & give recognition to members of Quality Circles &
other allied concepts like TPM, Kaizen, 5S, Poka Yoke, Six Sigma etc.

• Golden Peacock Award for Corporate Social Responsibility 2005

Ispat Industries Ltd. won the ‘Golden Peacock Award for

Corporate Social Responsibility - 2005’ in the category of ‘Private
Sector’. Instituted by the Institutes of Director, New Delhi, it is based
on the pattern of the Malcolm Baldrige Awards in USA for
outstanding achievements. This award is given by a panel of judges
headed by Justice P N Bhagwati, Former Chief Justice of India. The
award Jury constituted under the Chairmanship of Justice P N
Bhagwati, former Chief Justice of India, and Member, UN Human
Rights Commission conferred this award appreciating our company's
commitment for best Corporate Social Responsibility practices.

• Safety Innovation Award 2006

For Implementing Innovative Safety Management Systems at Ispat

Industries Ltd., Raigad. Presented by Shri. Pradeep Chaturvedi,
Chairman, Safety & Quality Forum, New Delhi.

• TPM Excellence Award - Level 1

Award in recognition of the efforts & contributions made by the

employees in the Organisation to achieve improvement in Plant
12
Maintenance technologies to achieve remarkable results in
productivity, quality, cost reduction & company cultural change.

• Golden Peacock National Training Award 2007

Ispat Training Department won the “Golden Peacock National

Training Award” for the year 2006 for the excellent contribution made
in the area of Training and development. This award is given by a
panel of judges headed by Justice P N Bhagwati, Former Chief Justice
of India. The award Jury constituted under the Chairmanship of Justice
P N Bhagwati, former Chief Justice of India, and Member, UN Human
Rights Commission conferred this award appreciating our company's
commitment for best training practice.

• Good Green Governance Award 2007

Award for the pro-environment work done by Organisation

beyond Compliance requirements.

• India Manufacturing Excellence Award-2007 for Gold Category

2007

Appreciation for the efforts taken by the Plant & its personnel in
enhancement of the Manufacturing Excellence.

• Golden Peacock Environment Management Award – 2006

Winner 2006: ‘Ispat Industries Ltd, Sponge Iron Plant, Raigad' has
been declared as the winner of “Golden Peacock Environment
Management Award” for the year 2006 by a jury headed by Justice P
13
N Bhagwati, Former Chief Justice of India. (During 8th World
Congress on Environment Management at Palampur).

• QCFI Convention at Chapter and National Level Conventions

-Par Excellence Kaizen Award

The QCFI Convention is a forum for interaction & sharing of

Knowledge, ideas & give recognition to members of Quality Circles &
other allied concepts like TPM, Kaizen, 5S, Poka Yoke, Six Sigma etc.

• Golden Peacock National Training Award 2008

Ispat Training Department won the “Golden Peacock National

Training Award” for the year 2006 for the excellent contribution made
in the area of Training and development.. This award is given by a
panel of judges headed by Justice P N Bhagwati, Former Chief Justice
of India. The award Jury constituted under the Chairmanship of Justice
P N Bhagwati, former Chief Justice of India, and Member, UN Human
Rights Commission conferred this award appreciating our company's
commitment for best training practices.

• Amity HR Growth Award 2008

HR Excellence Award for 2008 for the exemplary acceleration and

development of the Organisation by managing a talent pool in a talent
source macro-environment, thus achieving unprecedental growth by
utilizing its human capital.

14
 • CII Exim Bank Award for Business Excellence 2008

The Award encourages the Organization to strengthen their

Management systems, practices, capabilities to enhance & sustain their
competitiveness to become World Class Organization through
Business Excellence.

Management of ISPAT Industry Ltd.

Board of Directors:-

15
Mr. Pramod Mittal Chairman

Mr. Vinod Mittal Vice Chairman & Managing Director

Mr. Anil Sureka Executive Director (Finance)

Mr. Vinod Garg Executive Director (commercial)

Mr. B K Singh Executive Director (Steel Plant)

Mr. Udipi M Rao Director

Dr. Besant C Raj Director

Dr. Basudeb Sen Director

Mr. R P Singh Nominee (IFCI)

Mr. B P Singh Nominee (IDBI)

Mr. M Sankaranarayanan Nominee (UTI)

Mr. Mayank Agarwal Nominee (ICICI)

Grading of Employees at ISPAT

Grades Designation Grades Designation

E00-E07 Engineer E13 Assistant

Officer/Technicians General
16
 Manager

E08 Senior Officer E14 Deputy General

Manager

E09 Junior Manager E15 General

Manager

E10 Asst. Manager E16 Vice President

E11 Deputy Manager E17 Senior Vice

President

E12 Manager E18 President/

Director

E12A Senior Manager E18 Executive

Director

ISPAT Product

The following are Primary Products Manufactured by ISPAT:

SPONGE IRON

Ispat's sponge iron is manufactured at one of the most efficient

Sponge Iron plants in the world. The plant has been certified for ISO
17
9002 (1994) and ISO 14001 (1996). Ispat’s Sponge Iron is
manufactured at the efficient gas-based single mega module Directly
Reduced Iron (DRI).

HOT ROLLED COILS

Ispat manufactures international standard Hot Rolled (HR) coils

at its Hot Strip Mill (HSM), situated at Dolvi in the state of
Maharashtra, India. The production of these coils involves the use of
state-of-the-art equipment and manufacturing processes that ensure
products of the highest quality.

Ispat's HSM uses a combination of the advanced Con-arc Process

and Thin Slab Casting technology, which facilitates the rolling of coils
that are as thin as 1.2 mm with a width of 1250 mm. These are
superior to commercial grade cold rolled (CR) coils, and are quite
often a substitute for CR products in certain applications, due to their
thinner gauges and finer surface quality.

COLD ROLLED COILS

Ispat Industries Limited’s Cold Rolled Coils are manufactured at

the highly advanced Cold Rolling Mill at Kalmeshwar, and can be
used in a wide variety of applications.

GALVANISED SHEETS/COILS

18
 Ispat Industries Limited was the first Indian company to set up a
Continuous Galvanizing Line for thin gauge sheets in 1985. In fact, the
company pioneered the manufacture of thin, medium and thick gauge
galvanized steel sheets in the country. With two Galvanizing Lines at
its plant at Kalmeshwar, it manufactures coils and GP/GC sheets that
meet the highest international specifications.

COLOUR COATED SHEETS

Ispat manufactures an innovative and exciting product, namely

color coated sheets called Polysteel, in a variety of shades and designs,
such as dark or pastel, printed or plain and striped or embossed. These
Polysteel sheets are painted after galvanising and apart from creating a
stunning visual impact, bring numerous advantages to end user
industries.

Polysteel building sheets, for instance, make it possible to design

and construct your choice of beautiful structures, save on structural
steel and maintenance, and obtain overall cost effectiveness

Polices of ISPAT Industry Ltd.

Quality Policy

We, at Ispat Industries Limited, are committed to achieving total

customer satisfaction through the supply of quality products and
services on time, as per mutually agreed specifications and terms. We
shall achieve this goal through the team effort of our committed
19
employees and by continuously elevating quality consciousness and
concern for the environment in all spheres of activity, in our prevailing
responsive working atmosphere.

Environment Policy

Ispat Industries Limited is committed, as a responsible corporate

citizen, to caring for the environment in all our activities, products and
services, in our endeavour to make the world a better place to live in.
We shall continuously strive to improve in various ways such as
reducing the consumption of material and energy, and minimize the
impact on the environment, while complying fully with all the
applicable environmental regulations. We shall encourage our business
associates to adopt a similar approach to environmental protection. We
shall continue to increase the greenery in and around our premises. We
will make all efforts to ensure the safety and well-being of our
employees and the society in general. To fulfill our commitment to
environmental protection, we shall set and periodically review
challenging objectives and targets.

Safety Policy

Ispat Industries Limited (IIL) firmly believes that health and

safety is one of its prime concerns. It is the company's policy that the
management shall do all that is reasonable to provide a safe and
healthy workplace and make every possible effort to prevent accidents

20
and minimize health hazards in the company's operations, maintenance
and other plant activities.
To achieve this objective:
• IIL will strictly comply with relevant statutory provisions
and adhere to various technical codes and standards.
• The company has set up a fire and safety department
manned by qualified professionals who will be closely
associated with the day-to-day operations of the plant, and
who will also impart relevant training to the employees. This
will ensure that safe, healthy and environment-friendly
conditions prevail within the company, and that accidents are
prevented.
• The company is committed to involving its employees in
safety activities through their active participation in safety
committees meetings, fire drills and safety week
celebrations.
• The safety performance of each employee will be evaluated
at the time of his or her annual appraisal and career
advancement review.
• The company shall impart adequate training to employees
to improve safety within the company.
• The company shall periodically assess the status on safety,
health and environment by using various techniques such as
safety audits and risk assessments.

Hazard Identification

21
 To identify the hazards in the day-to-day operations, we conduct
internal and external safety audits every year. This year, we conducted
internal safety audits through Tata AIG Risk Management Services
and IFFCO Tokyo Risk Assessment Services. An external safety audit
was also held through M/s K R Bedmutha Asso. Additionally, the
company's own officers carry out safety surveys and inspections at
regular intervals.

Training

We firmly believe that safety is a state of mind and that all

unsafe behaviour results from a wrong mind set. Training is the best
tool available to ensure that employees are armed with the proper mind
set. At Ispat, we place great emphasis on safety training. In the past
year, we have conducted 74 training programmes for employees
covering, about 1500 employees.

Human Resource Development Policy

Human capital is an appreciating asset at Ispat Industries

Limited. Our employee skill-sets are our competitive edge along with
technological innovation. Our employee skill-sets differentiate us from
our competitors.
The objectives of our Human Resources Development initiatives
are:
• To become the Business Partner, thus, not just acquiring skills to
solve specific problems, but also expanding minds to address
22
 problems and opportunities with a full understanding of cross-
functional linkages.
• To continue developmental initiatives to harness the total
potential of our human capital.
• To make Ispat a learning organisation for continued success.

Quality

Ispat Industries Limited (IIL) has consistently placed an added

emphasis on quality processes within the organisation. Its strict
adherence to standards of excellence in quality has seen the company
attain the QS 9000 and ISO 14001 certifications.

23
 IIL's unwavering focus on quality is epitomized by its efficient
work force, its adoption of the latest international technology and its
exemplary product standards that emerge from the most stringent
quality control tests. Additionally, it boasts technologically advanced
machines and systems, professional management and a pioneering zeal
that is constantly in search for a new model of production. At IIL, all
these ingredients are synthesized to create an indomitable spirit for
excellence.

Total customer service and satisfaction are of prime importance

to IIL and act as drivers of the company's quality initiatives. In line
with achieving its goals of operating on par with global standards, IIL
has introduced a number of internationally recognized quality
initiatives, including Six Sigma, Total Quality Management and Total
Productive Management. These initiatives have aided the company in
putting in place efficient systems to ensure the timely supply of quality
products and services.

Career with ISPAT

Ispat Industries Limited (IIL) is one of the leading integrated

steel makers and the largest private sector producer of hot rolled coils
in India. Set up as Nippon Denro Ispat Limited in May 1984 by
founding Chairman Mr. M L Mittal, IIL has steadily grown into a Rs.
9400 crore company. A corporate powerhouse with operations in iron,
24
steel, mining, energy and infrastructure, the Group today figures
among the top 20 business houses in the country.

Ispat is the only steel maker in India and among a few in the
world to have total flexibility in choice of iron and steel making route,
be it the conventional blast furnace route or the electric arc furnace
route. Its dual technology allows Ispat the freedom to choose its raw
material feed, be it pig iron, sponge iron, iron ore, scrap or any
combination of feed-mix. It also has total flexibility in choosing its
energy source, be it electricity, coal or gas.

IIL’s integrated steel plant at Dolvi, about 90 km from Mumbai,

employs a total of 3000 people and is the leader in specialty steel
market. The company's core competency is the production of high
quality steel, for which it employs cutting edge technologies and
stringent quality standards. It produces world-class sponge iron,
galvanized sheets and cold rolled coils, in addition to hot rolled coils,
through its two state-of-the art integrated steel plants, located at Dolvi
and Kalmeshwar, near Nagpur in Maharashtra.
Ispat is a multi-racial, multi-lingual, multi-cultural and an equal
opportunity corporation. An employer of choice, Ispat attracts and
retains the very best of professionals. Ispat is not only a preferred
employer at top engineering and business schools of the country, it is
also the chosen corporate among the most experienced and talented
business managers of today. Ispat offers the most challenging work
environment amongst the industry.

25
ISO certificate to ISPAT Industry Ltd.

26
Hand Over & Take Over Policy of ISPAT
27
Hand over and take over Policy in case of Employee being out of
Office for 7 or more days:-

Objective:
To ensure proper transfer of work/assignments and culture of learning
cross functional activities & to have uninterrupted work flow when
employee is out of office for 7 or more days.

Scope:
All the employees including full time Consultants and Advisors of
Ispat Industries Limited.

Policy:

1. An employee who has planned to be out of office for 7 or more

days due to leave/training/deputation or any other reason must inform
Reporting Officer well in advance.

2. An employee going on leave must handover the charge of their

department to the senior level person of the other department without
fail so that cross functional team and exposure can be formed and also
by this process all senior colleague and HOD can get the work
exposure and experience of other department.

3. These handover of charge to Cross functional senior level person

to be intimated in writing to HR department in consultation with
respective HODs.

28
4. Employee going on leave/training/deputation or any other
reasons, for 7 or more days must hand over Charge including lotus
notes communications in Matrix format clearly indicating Urgent and
important jobs, Pending matters, total job/assignments being handled.

5. Circular/note to be issued by the employees to all the concerned

persons informing about hand over and take over of charge.

6. The person taking over charge has to sit & operate from the
chamber of Incumbent for around 2 hours daily.

7. Further, person taking on charge must submit a return back

charge note along with achievement report, improvement areas to the
person on return.

8. In cases where employee going on training /

leave/deputation/any other Reason has Secretary/Executive Assistant,
Reporting Officer will ask the Secretary/Executive Assistant to report
to the person taking over charge.

Note: It is mandatory for all the employees that while handing over
the charge they must fill up the attached standard format and give it to
the employee taking over charge.

29
 Performance Management System
Performance Management is the use of performance measurement
information to effect positive change in organizational culture,
systems and processes, by helping to set agreed upon performance
goals, allocating and prioritizing resources, informing managers to
either confirm or change current policy or program directions to meet
those goals, and sharing results of performance in pursuing those
goals.

Performance management system (PMS) centers on creating

stakeholder value by establishing the link between business strategy
and day-to-day tactical execution by: Aligning and Confirming
Strategy, Establishing Re-Engineering Priorities; and Framing the
Value Proposition.

Performance management enables an organization to assess business

performance and its progress in implementing key initiatives using a
set of financial and non-financial measures. PMS helps to ensure that
strategies are clearly defined and communicated, and aims to influence
behaviors in support of those strategies. Empirical research indicates
that a direct correlation exists between the effective use of PMS tools
and business results. Companies that have successfully implemented a
PMS process are deriving significant benefits including:

 Productivity Improvements
 Organization/Structural Improvements
 Enhanced Strategic Capabilities

Performance Management System provides organizations with a

systemic approach to consistently manage performance by:

• Establishing targets
• Identifying vital measures throughout an organization to assess
strategic performance
• Providing relevant reports and analysis

30
 • Instituting a formal process to evaluate performance and take
improvement initiatives.

Objectives:

• Translate organizational vision into clear measurable outcomes

that define success, and are shared throughout the organization
and also with customers and stakeholders.
• Provide a tool for assessing, managing, and improving the
overall health and success of business processes.
• Shift from prescriptive, audit- and compliance-based oversight to
an ongoing, forward-looking strategic partnership involving
employees at all level.
• Include measures of quality, cost, speed, customer service,
employee alignment, motivation, and skills to provide an in-
depth, predictive performance management system.
• Replace existing assessment models with a consistent approach
to performance management.

Roles/ Account Ability of PMS Process Implementation:-

Role of HR Department

• Ensuring that managers participate fully in the performance

management process
• Ensuring that every manager has a performance review
conducted
• Ensuring that the Performance Management Policy and
performance management process are followed
• Explaining corporate/department goals and priorities
• Ensuring that the qualities of performance assessments are
maintained.
• Submitting assessment and performance ratings to Management
and Directors.

31
Role of CARA

• To check if KRAs defined in the PMS are consistent with the

role and business plan
• Integrate the PMS SOP with the alignment of PMS, including
 Role clarity to reviewer and Appraisee
 Compliance to timelines and SOP (& penalty otherwise)
• Include the performance parameters in specific clusters for
objective assessment of performance
• Train/Communicate the participants about the refinements
• Refine/edit PMS in conjunction with functional heads/ Directors/
VC & MD on a quarterly basis including weightages for specific
performance parameters
• Ensure completion and communication about the outcomes of
PMS of employees to HR

PMS Process at Ispat:-

Guidelines are framed and circulated to all by HR department.

Grade (E00-E07)

• Review of performance rating by Reporting Officer every quarter

for payment of Variable Pay as stipulated in the wage settlement.
Ratings assigned in a variation of 1-5 (i.e. Outstanding, Very
Good, Good, Average, Below Average).
• Framing of promotion guidelines.
• In September every year the Increment Lists along with
Increment / Promotion guidelines are sent to all HODs for
reviewing the yearly performance in accordance with the
guidelines as per settlement.
• The final Moderated ratings & recommendations for Promotion
will be given by concerned. HODs duly approved by the
respective Divisional Heads to HRD for issuing Promotion
letters.

32
 • Accordingly, the Promotions letters will be issued to the
individuals based on the rate of Increments decided in the wage
settlement.

Grade (E08-E12A)

• Finalization of Annual Plan/Goals: Setting up of Key Result

Area by the individual executives for the year in the first week of
April in consultation with the concerned Reporting Officer. The
KRA’s typically have a link with the Corporate Plan of the
Department and drill downs from the KRA’s of the HOD, the
KRA’s set should be SMART : (S- Specific, M- Measurable, A-
Achievable, R-Realistic, T-Time Bound), focusing on activities
and promising the standards.
• The Broad Areas of Measurement of KRA’s are Finance,
Internal Business process, Customer perspective, People
Development & growth and Projects.
• The KRA achieved should be put in the quarterly review form
every quarter.
• KRA achieved should have direct linkage with the Annual KRA
target for the relevant period.
• Self-appraisal & Review by Reporting Officer & Reviewer at the
end of every quarter.
• The reporting officer should comment on the self-appraisal for
the employees both on the performance as well as the constraints
highlighted in the self-appraisal and send to Reviewer for
reviewing the quarterly performance.
• Employees undertaking new or additional activities over and
above envisaged in the Annual KRA Target for the relevant
period may include new /additional KRA in their self appraisal.
• Final approval and Grant of Ratings will be done by the
Reviewing Officer. Five types of ratings are defined in the
system (i.e. Exceptional Contributor, Significant Contributor,
Contributor, Partial Contributor & Non Performer)
• Compilation of ratings of 4 quarters and average of 4 quarters is
considered as Average rating of the year.

33
 • Framing of Compensation Strategy by HR for the subsequent
year which includes the Increment and Promotion and ELVP
guidelines after consultation with all Divisional heads and HR
Committee members.
Grade (E13-E19) – Balanced Score Card
Objectives

• To ensure employee performance towards organizational goal.

• To create performance link between Employee and Subordinates.
(Employee has to make own annual plan from the annual plan of
his/ her reporting officer.)
• To bring transparent and accurate performance measurement
system.
• To bring the awareness on Financial (i.e. Financial Perspective)
and Non-Financial parameters (i.e. Customer Perspective,
Process Improvement Perspective, Learning & Growth
Perspective) and there measurements.
• To bring the positive culture on PMS system in the organization.

Key Features of Annual Plan

• There will be four perspectives i.e. Financial, Customer, Process
Improvement, Learning & Growth.
• Each perspective weigthage will be there and total weight age of
four perspectives will be 100.
• Minimum and Maximum weight age of a particular perspective
will be 10 and 40 respectively.
• In each perspective, there will be provision for maximum 8 KRA
and minimum 1KRA.
• Measurement criteria will be optional.
• Unit of measurement will be mandatory.
• Annual Target will be fully numeric (like: 1, 2, 3….)
• In each perspective, total KRA weigthage will be 100.
• All monthly target cells will be fully numeric (like: 1, 2, 3….).

34
 • After approval of Reviewer, Annual plan will be freeze for the
respective year.
• There will be link in the PMS system that appraise can see the
annual plan of all senior executives who will be in the same
(Division or Department wise) hierarchy.
Key Features of Monthly Plan
• All annual KRA will show automatically in your monthly plan.
• Perspective weight age can be changed month to month basis but
the weight age criteria will remain same.
• No editing option will be there for that KRA.
• There will be provision to add only two extra KRA in each
perspective.
• These extra KRA will show automatically in annual plan in the
respective perspective as an additional KRA which will not be
the part of annual rating calculation.
• Monthly target and weigthage will be editable.

Code of Conduct and Business Ethics

35
Mission:
To be amongst the world’s most admired new generation steel
company in our products, in the manner in which we service our
clients, in our work -ethics and in our culture of societal integration.

An Introductory Statement:
In support of its Vision and Mission, ISPAT Industries Ltd. sets
forth the ideals of motivation, life long learning, service to others,
enrichment through diversity, commitment to excellence, mutual
respect, and pe rsonal integrity. The Company is guided by the belief
that a sense of true society is achieved when these ideals and values
are reflected in the behavior of its employees towards one another.
ISPAT Industries Ltd. is committed to creating an atmosphere of
respect and civility amongst its employees. The charge to the “SHEE
(Safety, Health, Environment and Ethics)” Pillar to create a Code of
Conduct and Ethics provided the organization with the opportunity to
define our standards of behavior towards each other.
As employees of the organization, our interactions with one
another are to be guided by these principles as set forth in the Code of
Conduct and Ethics developed through The Company’s governance
process. In order to make this a living document, each m ember of the
organization must commit to these standards and promote its general
principles. Failure to follow this Code of Conduct and Ethics will call
for Disciplinary action.

The document covers following sections:

A. Code of Conduct

1. Corporate Responsibilities to Employees & Associates

2. Basic Ethics for Employees & Associates

B. Business Ethics
1. Responsibilities& obligations to Customers
2. Fair Competition
3. Fair Transactions
4. Responsibilities to Society & Country
5. General

A. Code of Conduct
36
Section 1: Corporate Responsibilities to Employees and Associates

ISPAT shall Endeavour to respect the human dignity of its

employees and provide fair treatment based on their abilities and
performance. The Company shall also strive to foster creativity and
individualization among its employees. Recognizing that each
individual is a separate soul and requires individual attention and
support, the Company shall encourage creative approaches to business
and personal lives.

1. Respect for Human Dignity: ISPAT shall treat each employee

with trust and respect and value every individual's human dignity and
family responsibilities. The Company shall make best efforts to help
employees attain pride and personal fulfillment by instilling a sense of
ownership in their jobs. Ispat’s employees shall be treated with dignity
and in accordance with maintaining work place free of sexual
harassment, whether physical, verbal or psychological.

2. Equality in Employment and Opportunity: ISPAT shall offer

equal opportunities to all its employees based on their abilities, merit
and talents. The Company shall apply fair measures to evaluate
abilities and performances of its employees, and reward them
accordingly. Company shall provide equal opportunities to all its
Employees and all qualified applicants for employment, without
regard to their race caste, religion, color, ancestry, marital status, sex,
age, and nationality.

Section 2: Basic Ethics for Employees and Associates

1. Basic Ethics: The employees of ISPAT shall take pride in their

company and always maintain an honest and fair attitude. The
employees must keep high standard of morality and continuously
strive to maintain their personal dignity and the company's honor.

2. Self Development: The employees must strive to enhance their

abilities and image through continuous self -development. ISPAT
believes in continuing education through formal and informal means.
Individual self actualization is a key component in all activities and is
positively promoted.

3. Fairness in Performance: The employees should carry out their

duties based on honesty and fairness, seeking to foster a sound
business culture. While performing their duties, they must not accept
37
any form of financial benefit from interested parties that may obstruct
fair judgment. The employees should refrain from any immoral or
unethical behavior as prescribed by social norms in performing their
duties and in living their personal lives.

4. Avoidance of Conflict with Company Interests: The employees

should avoid any individual behavior or relationship that is in conflict
with company’s interests. The employees must not use company
property to pursue their personal interests without prior permission.
Business opportunities should not be used for personal gains. Likewise
they should not make or influence business decisions either for their
own or their relatives’ benefits. The employees must not take
Concurrent or part-time employment / consultancy while in service.
When there is acceptance of gifts, donations, hospitality etc beyond
the customary level, adequate and full disclosure of the same should
be made.

5. Securities Transactions and Confidential Information: An

employee of ISPAT and his immediate family shall not derive any
benefit or assist others to derive any benefit from the access to and
possession of information about the Company which is not in the
public domain and thus constitutes insider information.

An employee of ISPAT shall not use or proliferate information which

is not available to the investing public and which therefore constitutes
insider information for making or giving advice on investment
decisions on the securities of the Company on which such insider
information has been obtained.

Such insider information might include the following:

• Acquisition and divestiture of businesses units

• Financial information such as profits, earnings and dividends
• Announcement of new product introductions or developments
• Asset revaluations
• Investment decisions / plans
• Restructuring plans
• Major supply and delivery agreements
• Raising finances

6. Knowledge Sharing: The employees ensure dissemination of

Knowledge gained by them during Training / Conferences/ Seminars/
38
Technical Visits etc. Each Employee should submit the report &
relevant documents of the same within one week of his/her attending
such conference / seminar / training / technical visits to the Learning
Center so that the knowledge can be shared with other employees.

7. Duty of Confidentiality: The employees shall ensure that they do

not divulge confidential information gained during employment. Also
they should not use or proliferate information unavailable with public.

8. Use of Company’s Asset s: The employees shall ensure that all the
company’s assets are used in the best interest of the company. Its
employees must protect and preserve company property as the owners
of the assets (Equipments, Building, and Area etc) by participating in
TPM Jishu Ho zen activities.

9. Work Culture: The employees should exert themselves,

• To enhance work Productivity /Efficiency through open

communication and cooperation with colleagues and business
partners.
• To strictly follow the SOP’s, Procedures, Rules and Regulations
etc. Any deviation should be brought to the notice of the
superior.
• To participate proactively in all Brainstorming and Root cause
analysis meetings to come out without hiding the facts to reach
to solution and also on a continual basis think about Kaizens
(Continuous Improvements).
• To ensure that no wastages (Material, Man hours, Machines
Timings, Money etc) are allowed to happen in their area and
such observations should be brought immediately to the notice of
the Superiors.
• To ensure that all Safety Protective Equipments provided are
used by each and every one of them and non compliance should
also be brought to the notice of the Superiors immediately. All
Safety Rules and Regulations to be strictly adhered to, and no
shortcuts to be taken. The principle of “Safety First” should be
strictly followed.
• To ensure that “5S” Housekeeping principles are followed
strictly. No action of theirs should cause any violation of Health
and Environment practices.
• To maintain fairness and transparency.

39
 • To be responsible for full implementation and compliance of the
Code of Ethics.

The employees shall promptly report any possibility/ actual

violation of the Code of Ethics or any event that could affect the
business or reputation of the Company.

B. Business Ethics

Section 1: Responsibilities and Obligations to Customers

ISPAT, as an organization shall highly regard the opinions of its

Customers in the belief that they form the very base of our business.
We shall seek to secure unconditional trust from our Customers by
continuously providing them practical values and operating in an open,
honest and ‘above board’ manner at all times. We shall promote a
‘best practices’ approach in all Customer engagements and offer our
honest opinion.

1. Respect for Customers: ISPAT shall value the opinions of our

Customers and attempt to validate their true needs at all times. We
shall regard our Customers as the primary focus for our decisions and
conduct. We shall attempt to comply with all existing Customer values
and processes except where they may be in conflict with our existing
Code of Ethics.

2. Creating Value: ISPAT shall work to create value for its

Customers, for it is through Customer’s satisfaction that we build the
foundation of our prosperity. We shall continuously create practical
value that fully benefits and satisfies our Customers.

3. Providing Value: ISPAT shall always be truthful to and respectful

of its Customers, and shall be bound to keep its words. We shall offer
top quality products and services to our Customers at reasonable prices
and respond to their requests with speed and accuracy.

4. Gifts and Donations: ISPAT shall neither receive nor offer or

make directly or indirectly any illegal payments, remuneration, gifts,
donations or comparable benefits to obtain business or uncompetitive
favors. But we may accept and offer nominal gifts of customary and of
commemorative nature.

40
5. Quality of Products and Services: ISPAT shall be committed to
supply goods and services of the highest quality standards backed by
efficient after sales service consistent with the requirements of the
customers to ensure their total satisfaction.

Section 2: Fair Competition

All business transactions shall occur based on the principles of

fair competition with equal opportunities guaranteed for all entities to
participate. We shall build trust and cooperative relationships through
fair and transparent transactions. Such relationships shall be built with
a long-term perspective for mutual growth.

1. Pursuit of Free Competition: ISPAT shall uphold the principle of

a free market economic system; therefore we shall pursue free
competition and earn our Customers' trust through top quality products
and services. We shall compete fairly and capably with our
competitors, but shall not intrude upon their interests, or exploit their
weaknesses.

2. Compliance with Laws and Regulations: ISPAT shall conduct our

domestic and overseas business activities in strict accordance with
local laws and regulations, and with respect for local business
customs.

Section 3: Fair Transactions with Customers, Vendors, Service

Providers etc.

1. Equal Opportunity: ISPAT shall offer equal opportunities to all

qualified companies seeking to become our business partners. All
applicants shall be registered and selected in a rational manner
following a fair and objective evaluation process.

2. Fair Transaction Procedures: AT ISPAT all business transactions

shall be conducted under equitable circumstances. The terms and
procedures of the transaction shall be sufficiently discussed between
parties involved. Any form of unjust transaction abusing superior
position shall never be taken. Information required for transactions is
exchanged through appropriate procedures in a timely manner.
Transaction results shall be evaluated on a regular basis where
complementary measures shall be mutually taken.

41
3. Fair Vendor Relations: ISPAT shall support the long -term growth
of our partners and vendors by enhancing their competitiveness
through technological and managerial assistance. We shall pursue
mutual effort and cooperation with our partners and vendors in
promoting a healthy trading environment and maintaining fair trading
system.

Section 4: Responsibilities to Society and Country

ISPAT contributes to national welfare by supporting Government of

India and its lawful agencies and protects its partner’s interests by
developing sound business operations.

1. Rational Business Development: ISPAT shall conduct its business,

respecting the social values at home and abroad. The Company shall
promote its business expansions based on stable corporate growth.

2. Contribution to Social Development: ISPAT shall engage and

contribute to national and social development through job creation, tax
payments, and promotion of cultural and educational programs.

3. Environmental Conservation: ISPAT shall strive to prevent

environmental pollution and employs reasonable measures to conserve
precious natural resources in accordance with sound scientific
principals and current knowledge. The Company shall prevent
wasteful use of natural resources and minimize any hazardous impact
of its activities on the ecological environment.

Section 5: General

1. Financial Reporting and Records: ISPAT shall prepare and

maintain its accounts fairly and accurately in accordance with the
accounting and financial reporting standards which represent the
generally accepted guidelines, principles, standards, laws and
regulations of the country in which the company conducts its business
affairs.

Internal accounting and audit procedures shall fairly and accurately

reflect all of the company's business transactions and disposition of
assets. All required information shall be accessible to company
auditors and other authorized parties and government agencies.

42
Any willful material misrepresentation of and/or misinformation on
the financial accounts and reports shall be regarded as a violation of
the Code apart from inviting appropriate civil or criminal action under
the relevant laws.

2. Health, Safety and Environment: ISPAT shall strive to provide a

safe and healthy working environment and comply, in the conduct of
its business affairs, with all regulations regarding the preservation of
the environment of the territory it operates in. We shall be committed
to prevent the wasteful use of natural resources and minimize any
hazardous impact of the development, production, use and disposal of
any of our products and services on the ecological environment.

3. Shareholders: ISPAT shall be committed to enhance shareholder

value and comply with all regulations and laws that govern
shareholders' rights. The Board of Directors shall duly and fairly
inform its shareholders about all relevant aspects of the Company's
business and disclose such information in accordance with the
respective regulations and agreements.

Career Development Policy

Keeping in view the requirement of balanced growth of employees
where an employee acquires broad based experience before going up
vertically, it has been thought to provide the avenue of career
development through job rotation.

43
Objectives:
This policy seeks to optimize the potentialities of employees fully by
putting her/him through more apt and productive assignments &
exposure and at the same time meet the requirements of the
organization by fully optimizing available talents.

• To promote growth of employees from within

• Focus on the growth of high performers in the organization
through competency development to fulfill future organizational
requirements
• To provide avenues to an employee towards his/her career
growth within the Organization

Scope:
• All regular employees in grade E08 & above category preferably
those who have completed two years in the current position.
• In all other grades, inter-departmental and intra-departmental
transfers will take place depending on the opportunities available
within the organization, as well as the company’s requirements.

Quantum of job rotation

Every department shall strive to have 1% Job Rotation every month.
However, this will not apply to departments/positions requiring
specialized knowledge and skill.

Rules:
• Inter as well as intra-department rotation will qualify as Job
Rotation.
• Head of Department to prepare monthly plan of rotating 1%
employees based on length of service in the current role.
• HOD to recommend if any additional training is to be imparted
to prepare the employee for the new assignment.
• Suitability for job rotation to be ascertained keeping in view
qualification, skill and experience.
• Job Description for the new role to be made available to the
employee.
• Intra-department rotation to be finalized by HOD. Inter-
department, but intra-division rotation to be finalized by
44
 concerned Divisional Head. In case of inter-division job rotation,
request is to be routed through HR Department.
• Performance in the new role to be regularly monitored for
smooth operation of the Department.

Human Resource Management

The Human Resources Management (HRM) function includes a
variety of activities, and key among them is deciding what staffing
needs you have and whether to use independent contractors or hire
employees to fill these needs, recruiting and training the best
employees, ensuring they are high performers, dealing with
performance issues, and ensuring your personnel and management
45
practices conform to various regulations. Activities also include
managing your approach to employee benefits and compensation,
employee records and personnel policies. Usually small businesses
(for-profit or nonprofit) have to carry out these activities themselves
because they can't yet afford part- or full-time help. However, they
should always ensure that employees have -- and are aware of --
personnel policies which conform to current regulations. These
policies are often in the form of employee manuals, which all
employees have.

HRM Polices in ISPAT Industry Ltd.:-

1. Standard Operating Procedure for joining of an Employee
2. Training and Development Policy
3. Transfer Policy
4. Transport Policy
5. Uniforms/ Dress Code Policy
6. Accident Compensation & Life Cover Scheme
7. Competency and Skill Development
8. Housing Policy
9. Leave Rules
10. Recruitment Policy

Standard Operating Procedure (SOP) for

Joining of an Employee

Objective:
The objective of the joining policy for hassle free step through
recruitment and making joining process smooth and to make the new
entrant feel comfortable.
46
Standard Operating Procedures (SOP):
1. FOR ALL NEW JOINEES (Recruitment Dept.)

A. Once candidate selected he/she shall be sent for pre-

employment medical check up at MGM Hospital, Vashi or
any other authorized medical center for pre-employment
medical check up.
B. Once candidate found medically fit his / her recruitment
paper / process will be audited by Business Process
Solution (BPS) dept.
C. Once pre-employment medical check up report received
and candidates is found medically fit and after BPS audit
report, offer letter will be issued along with following
forms and ask him/her to bring at the time of joining :-
• Business Declaration form
• MIS form
• Gratuity Nomination form
• PF Nomination form
• Superannuation Nomination form
• Address with contact nos. of medical officer
• Route map for Dolvi
• Means and available sources of traveling to Dolvi
D. Before joining of Seven days in advance, recruitment cell
will coordinate with the employees and recruitment cell
will send the employee docket containing following
documents in a sealed envelop to Dolvi office for joining
process.

Documents to be sent by the Recruitment Cell to HR dept. at Dolvi

plant

• Unsigned Appointment Letter

• The Offer Letter
• Employment form
• Interview Assessment Sheet
• Any other documents if any.
• Audit Report of Business Process Solution
• Medical Report
47
E. If new joinee needs guest house accommodation,
Recruitment cell / HR dept. will inform GS dept. to
organize the same.
F. HR dept. on date of joining :

a) Will check and verify:

• PF Nomination Form in duplicate.

• Declaration of Business Dealings Form
• Gratuity form
• Superannuation Nomination Form
• MIS form
• Employment Form
• Feedback Form
• Bank Account opening form (Axis Bank or
IDBI Bank)
• Copy of mark sheet and credential certificate
with original
• Confidential Agreement
• Copies of Service Bond (as and when
applicable)

b) On confirmation of above will issue appointment letter

to the candidate.

G. The Dolvi HR will ensure about necessary arrangement of

refreshment / lunch etc .for the new employee.
H. H R Department will create an Employee ID in the system
through SAP and subsequently in SYBASE system.
I. Facilitate bank account opening process.
J. Give details and information about KM portal to
familiarize with HR policy and rules and other important
information.
K. H R Department will issue Temporary ID Card along with
Swiping Card.
L. Request is forwarded to IT dept. to prepare his Lotus Note
ID and workstation.
M. GS dept. will organize his sitting arrangement.
N. GS dept. will organize guest house arrangement as per
policy as and when required.
O. All joining formalities will be completed at Dolvi.
48
 P. The employee is then taken to his department and
introduced to his functional head.

2. Training department will arrange induction training for new

joinee

3. CANDIDATES GM & ABOVE

For all candidates joining as GM and above over and above

formalities mentioned in 1 & 2 following additional procedure will be
followed:

A. Once receiving information from Recruitment dept. about arrival

details of GM & above candidate GS dept. will organize

a) Transport for pick up from airport (if candidate from outstation)

b) Guest house arrangement for staying as per policy

c) Transportation to drop at Dolvi for joining

d) Transportation for daily commuting till he gets his own vehicle

B. In advance prepare joining circular and issue the same on joining

of the employee.

C. Arrange mobile phone / blackberry with nos.

D. Sitting arrangement / cabin with work place

E. Laptop through system dept (GS will intimate one week in

advance)

4. Role of System / IT dept. on receiving intimation from GS / HR

A. Arrange work station / laptop as per requirement

B. Create Lotus note ID at least one week in advance.

49
 Training & Development Policy
Training Objectives
To ensure that organization achieves the business plan by
analyzing business gaps, failures, which includes technical and
behavioral related issues by developing individuals and group learning
and there by competencies to be enhanced for their knowledge, skills
and attitude to achieve business excellence.

Scope of Training Activities

50
 People development has been our key strategy for corporate
performance. In line with the same, we are undertaking intense
training and development activities in our organization in the areas of
technical and functional skill enrichment, managerial competency
enhancement, pioneering operational excellence and new initiatives.

Major training activities of the company are enlisted as follows:

1. Review of the total Organization Business Plan.

2. Analysis of training inputs required to achieve business plan.

3. Identification of Training Needs.

4. Assessment of Skills/Competencies required for different roles &

individuals.

5. Development of course material.

6. Training on Consultants Reports.

7. Training for Overseas employees.

8. Training on Break-downs & Operational Failures.

9. Training on New Initiatives (TPM, Six Sigma).

10. External Training Programmes.

11. Brainstorming and SWOT Analysis.

12. Development of Internal Trainers.

13. Training Feedback.

Graduate Engineer Trainees & Management Trainees Training

Scheme (GEMS) GROWTH PATTERN The GETs, DETs & MTs
Training System (GEMS) has been formulated with a view to ensure
full utilization of the inherent skills of the new entrants and provide
them with comprehensive foundations needed for successful
performance in the first job and in subsequent career progression.
Adequate emphasis shall be given on developing the essential
knowledge required to perform as a Front Line Manager, i.e.

Knowledge in terms of:

51
 • Process Parameters
• Setting and Maintaining Standards
• Man Management
• Line and Function Relationships

Skills in terms of:

• Investigation and Analysis
• Problem Solving and Decision-Making
• Preparing and Presenting a Case
• Presentation & Report Writing
• Team Working

The company has a system of Project Based Training (PBT) as a

part of GEMS wherein each trainee is assigned a number of projects
from his/her core area of education as well as from other functions.
Hands-On Training is also included in the curriculum with a view to
strengthen the technical base of the Trainees. Induction of Graduate
Engineer Trainees (GETs), Diploma Engineer Trainees (DETs) &
Management Trainees (MTs) in company shall be done each year on
the basis of requirement. Training period for GETs/ MTs will be 6
months from date of joining and where as for DETs training period
will be1 year from date of joining.

A) Central Induction– The Trainees shall undergo the Central

Induction during the first two months wherein they shall be given
inputs about the group companies and orientation of various functions
in the company along with site visits. They shall also be exposed to
cross-functional areas wherein the GETs shall undergo a mini-MBA
from/ in association with a local management institution and the MTs
shall undertake projects in the functions other than their core function.
Input on presentation skills, report writing skills, inter personal skills,
communication skills shall also be given to equip them with the
behavioral aspects that will enable them to successfully take up the
future roles and responsibilities. With a view to instill team building
potentials and also to develop the risk management potential, out

52
bound training will be organized. Tests shall be held mid-way and at
the end to ensure perseverance of the learning.

B) Departmental Induction – This shall form the second phase of

training and will last for next one month. The Trainees will be
deployed to specific department based on the generic branch of their
study, performance in the tests & counseling interview and will
undergo departmental orientation wherein they shall be associated
with different functions within the allocated department, on a
rotational basis. They will be associated with a mentor and will be
required to undertake an in-depth study of the functions of the
department. The trainees shall also undergo critical equipment
training. Industrial tour to other companies is a part of this module.
Assessment of performance shall be done through project reports,
presentations, report by the mentor & performance in tests.

C) On-the Job Training – This shall form the third phase of GEMS
and shall last for the balance three months of the training period. The
trainees shall be allocated specific responsibilities in the department.
They shall then undertake project based hands - on training in the
respective department.

D) The trainees shall then be absorbed into regular grades based upon
the Project presentations, personal interviews (by a panel comprising
of Departmental Representative, Training Manager & HR
representative) and assessment by the Project Tutor.

Transfer Policy
Objective:

To provide avenues to our associates for their career growth

within the Organization and to simultaneously address the dynamic
business needs of our Department/ Sections this in turn will lead to Job
Enrichment and Job Rotation.

Guidelines:

Below mentioned policy should be followed while transferring an

Associate:-

53
1. Vacancy to be notified internally and selection process should be
carried out by HRD in consultation with the HOD in whose area the
vacancy exist.

2. Detailed job description of the Role & Responsibility should be

prepared by HOD in whose department vacancy exists and sent to
HRD so that the same can be handed over to employee being
transferred.

3. Employee seeking transfer should submit approval note from his

HOD to HRD that replacement would not be sought against transfer.

4. Details of employee seeking transfer such as existing job

description, PMS rating and any other relevant details to be given by
HRD to the HOD of the Department where vacancy exists.

5. Transfer should be affected after discussion with the HOD of the

Transferee and intimation to the HOD of the department to which the
person is being transferred.

6. HRD should issue transfer order to the employee being transferred

and update the system wherever it is required.

7. The HOD of the department to whom the employee is being

transferred, should prepare KRAs & Task Sheet for the transferee and
link it to his PMS. He should also identify his Training needs based on
the new Job description and communicate the same to the Training
Department.

Transport Policy
Objectives:
This policy shall facilitate the commuting of employees to and
from their residence to the place of work as well as for business related
local travel.

Scope: All employees on Ispat Roll are covered under this policy.
(A) Bus Facility–GradeE14&below

Staff Buses shall be provided from specified locations viz.;

Thane, Kalian, Vashi, Nerul, Panvel, Pen, Nagothane, Alibag, etc. for
54
employees in grades E14& below, working in Dolvi Plant for
commuting from their residence to the place of work for all four shifts.

1. Vehicle Leasing Scheme–GradeE15&above

The car shall be purchased by employees in Grades E15 & above

registered in his / her name or in the name of spouse or used /old cars
can be spouse leased. However the car should not be more than 4 years
old and its total mileage is not more than 1,25,000 Kms. If employee
feels that instead of buying a new car at the end of the4th year and can
continue with existing car for one more year, in such case based on
self application of concerned employee the limit of leasing the car can
be further extended to 5th year subject to certification of condition on
road worthiness of the car by the competent authority decided by the
company. On the 5th year, the employee will get 50% leasing amount.
This will be effective from 1st April 2009. Such vehicle is required to
be leased with the Company. If the vehicle is registered in the name of
the employee then it becomes a Self Leased vehicle and in case of
being registered in the name of the spouse will be a Dry Leased
vehicle.

Company shall provide monetary assistance to concerned

employees for taking a vehicle on lease / Dry Lease for commuting to
and from the place of work; to their residence as well as for business
related local travels.

The level wise eligibility of lease amount shall be as under:

Level Monthly Pay-out

General Managers Rs 15000

Vice Presidents Rs 21000

Senior Vice Presidents Rs 25000

Presidents & Directors Rs 30000

General Managers & above who are currently availing the

facility of cars under the ‘Own Your Car Scheme’ shall continue in the
scheme till they purchase the current car upon running the Car for

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1,00,000 kms or 3 years whichever is earlier. On purchase of the
existing car, they will be eligible to move to the above mentioned
Vehicle Leasing Scheme Reimbursement for the fuel shall be as based
on the distance between residence& workplace of the employee. Over
and above this, expenses reimbursement of on account of maintenance
of vehicle, hiring of Driver, etc. shall be done as per the eligibility of
the respective Grade.

Amendment for Fuel Reimbursement (GM & Above)

Reduction in fuel Reimbursement expenses (GMs & above): As

decided in57th HRC held on 13th March 2009, fuel reimbursement is
to be reduced by25% with effect from 1st April 2009 for Dolvi.

Reimbursement for GM & Above for Extra Kilometers

GM and above claiming extra kilometer for using their car for
official purpose will be reimbursed fuel expenses.

(B) Local Conveyance Reimbursement

Local Travel for this policy shall mean traveling from either
residence or company location (Dolvi, Casablanca, Nirmal or Mittal
Towers) to another company location or to the premises of external
agency located in Mumbai, Navi Mumbai, Raigad, Thane& Kalyan.

Employees in the Grades E15 & above

The employees in the above mentioned grades shall use their

own cars which they have to utilize for all official purposes. They will
not be eligible for any reimbursement over and above the eligibility as
per the Own Your Car Scheme / Dry Lease Scheme.

Employees in the Grades E12A – E14

The employees in the above mentioned grades shall be eligible

for travel by a metered taxi and the expenses on account of the same

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shall be reimbursed after due approval of the concerned Functional
Head.

Employees in the Grades E08 – E12 & Trainees

The employees in the above mentioned grades shall be eligible to

travel either wholly or in a combination by a public transport (not
Taxi), three- wheeler & First Class Ticket by the Mumbai Local Train
and claim reimbursement after due approval of the concerned
Functional Head.

The employees (E08 to E14) shall also be eligible to use their

personal vehicle for the purpose kilometer for. In such cases,
reimbursement shall be made @ Rs. 6.75 per travel by a Four Wheeler
or @ Rs 2.50 for travel made by a two wheeler. Reimbursement of
parking and toll charges in such cases would be done on actual.

Employees in the Grade E07 & below

The employees in the above mentioned grade shall be eligible to

travel either wholly or in a combination by a public transport (not
Taxi), three- wheeler & Second Class Ticket by the Mumbai Local
Train for the purpose and claim reimbursement after due approval of
the concerned Controlling Officer. The employee is also eligible to use
his personal vehicle (two-wheeler only) for the purpose. In such case,
the reimbursement shall be made @ Rs 2.50 per kilometer for travel
made by a two wheeler.

Note

1. Wearing of Crash Helmet is mandatory while driving a two wheeler.

It will also be the responsibility of the driver to ensure the driver also
wears the helmet.

2. Safety belt in cars: The driver and front seat passenger must apply
the safety belt while driving/ sitting in the car.

3. Leasing charges are subject to VAT.

(C) Company Ambulance Usage

Scope:
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All regular employees including Trainees and Contractual workers
working at Dolvi plant.

Process:

Company Ambulance will be utilized only for conveying

accident cases from plant to the First aid Centre in order to render
immediate First aid.

In case the accident is of serious nature and needs immediate

further treatment, the patient will be carried in the same Ambulance to
the nearest hospital in order to reach at the earliest. In case of sudden
illness of employee at work, the Ambulance will be used to transport
the employee to the nearest hospital where treatment can be given for
his illness. The Ambulance shall immediately return back to plant and
shall not stop for any further assistance once the patient has been taken
to the pre-specified and required hospital.

Uniforms/ Dress Code Policy

Objective:

To provide for Safety of the employees, induce homogeneity &

evolve a sense of belongingness amongst the employee for the
company.

Scope

All regular employees working at Plant including Trainees.

1. Employees & Trainees posted at Dolvi

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Male Members

All male employees posted at Dolvi shall be provided with three

sets of company uniforms (Full Sleeve Shirts & Trousers), one pair of
Safety Shoes & one Safety Helmet. The uniforms & safety shoes are
provided once every year.

Female Members

All female employees posted at Dolvi shall be provided with

three sets of company uniforms (Salwar Suits), one pair of Safety
Shoes & one Safety Helmet. The uniforms & safety shoes shall be
provided once every year.

In case of the employees working in Plant area if the Safety

shoes provided is worn out, one more pair of Safety Shoes shall be
provided within the same year after due recommendation of the Head
of Department.

The regular employees working in Plant area or field shall be

provided with one set of Rainwear (Jacket & Trouser type) and those
working in office area shall be provided one umbrella annually.

2. Employees & Trainees posted at other locations including

branch offices

Male Members

All male employees posted shall be provided with three sets of

uniforms (Full Sleeve Shirts & Trousers).

Female Members

All female employees shall be provided with three sets of

uniforms once every year.

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 All the employees shall also be provided with one umbrella
annually.

Note

The employees shall take care of the uniform and protect it from
damage or misuse. It is compulsory for employees provided with
company uniform to wear them on all working days in Office.
Alteration or gifting of uniform is not permitted.

Accident Compensation & Life Cover

Scheme

Objectives:

To provide workmen and/or their dependents some relief in case

of accidents and causing either death or disablement of workmen.

Scope: All Ispat employees are covered under this policy.

Accident compensation

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 • Accident compensation will be paid as per the laid-down policy
of the company in force and amended from time to time.
• This covers death / permanent and partial disability and
reasonable medical expenses.
• The cover in the event of death is equivalent to 100times the
gross pay.
• The coverage is for all 365 days against accident within or
outside plant premises.

Group Life Insurance Policy

Life insurance coverage to a maximum extent of Rs.3 lakes,

depending on the grade as mentioned below shall be provided during
the course of the employment for death due to sickness, etc.

Grade Amount
Grade E08-E12A Rs. 1,00,000/-
Grade E13 to E14 Rs. 2,00,000/-
Grade E15 & Above Rs. 3,00,000/-

Competency And Skill Development

Objective
To ensure continual development of skills & competencies of
employees.

Scope
This policy shall be applicable to all regular employees in Grades
E00-E19 (including Trainees).

Identification of Training Needs

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 Training needs are identified on an annual basis.

For the employees in grades E08 & above, training needs are
derived from the Balance Score Card and assessment of Competencies
through the Assessment Centers.

For the Operation, Maintenance & Support Services Staff (E07

& below Grades) the needs are projected by the Supervisors /
Controlling Officers through the Annual Appraisals. Assessments of
Skills are also done annually to ascertain the skill gaps. Over and
above that there are organizational interventions like Multi-skill
wherein the Supervisor identifies the skills that need to be learnt by the
employee in order to form multi-functional workgroups.

The company also has organizational initiatives wherein the

target population is identified for the purpose of each initiative and the
same is included in their training need.

Assimilation of Training Needs & Draw-up of Annual Training

Plan

All projected needs are assimilated and groups are formed on the
basis of level, function, skill /competency, initiative, etc. and an annual
training plan is drawn. This plan contains the dates for each
programme, venue, target population, number of participants per
programme, training Hours per programme, Faculty for the
programme, etc.

Conducting Programmes

Faculty is identified for each programme from internal sources,

OEMs or experts in respective fields.

External Training Programmes

Employees are nominated for programmes / seminars /

workshops / visits conducted by leading institutions / professional
bodies.

Assessment of Effectiveness of Training

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 Study of effectiveness of training is done every 3 months
wherein the trained personnel as well as his / her supervisor respond
about the benefits accrued out of the training in terms of skill
/competency up gradation and the resultant tangible / intangible
benefits. Skill / competency assessment is also done to measure the
effectiveness of training imparted.

Retraining

Retraining is imparted to an employee; if after assessment it is

found that his/her skill or competency level has not improved to the
benchmarked standards.

Housing Policy
Objective:

To provide assistance to employees in finding an accommodation

suitable to their needs based upon respective eligibility.

Scope:

All regular employees at all locations shall be covered by this

Policy.

Process:
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A) Employees in grades E08 & above

The Company shall provide for 2 alternatives for accommodation of

employees, i.e. Bachelor & Family accommodation.

1. Bachelor Accommodation
• The GETs and MTs shall be provided with the Hostel
accommodation.
• On successful completion of Training, the GET/MT/DETs
shall have to vacate the Hostel accommodation and opt for
either a Bachelor’s accommodation or a Family
accommodation.
• In case of semi furnished Hostel / Bachelor’s
accommodation, 10% of the basic pay per month shall be
charged as rent, which will be deducted from the salary.
2. Family Accommodation

• Family accommodation shall be provided as

Company Leased or Self Leased.
• Company leased accommodation shall be provided by
the company. The rent along with the security deposit
(equal to 10 months rent) in such case shall be directly sent
to the owner. Brokerage would be 30 days (one month) rent
fixed for the accommodation as per the Lease Agreement in
Mumbai & Navi Mumbai only.
• Self Leased accommodation shall be provided to
employees having a house in his/her own name or in the
name of the spouse. Such accommodation shall be hired by
the Company on lease and license basis and provided to the
said employee as Self Leased accommodation.

3. House Rent Allowance

• The Employee shall have the option to draw HRA to

have accommodation on rental basis. No brokerage or
deposit shall be permissible in such case.
• In any of the above cases, HRA shall be admissible at
40% of the basic pay of the employee for employees in
grades E08 & above.

B) Adjustment of rent from the employee

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 If Company leased accommodation is provided (in case of
employees in all Grades E08 and above) and the rent is more than 40%
of the basic pay, the difference between entitlement & lease rent shall
be recovered from the salary of concerned employee. However, if the
rent is less than the entitled HRA of 40%, the balance amount shall be
given to the employee as a component in Special Allowance.

C) Relocation / Change of Accommodation

An employee shall be allowed to change his/her accommodation due

to the following reasons:

a) Notice from the house owner for vacation.

b) Management decisions to relocate the employee.

c) On request of employee due to personal problems.

d) Deterioration in the condition of the house or inadequacy of basic

needs like water, electricity, etc.

In case of request for change of accommodation for the reasons at c &

d above, the employee shall be required to provide documentary proof
for consideration.

Leave Rules
Objective:

To provide guidelines for permissible leaves per annum.

Scope:

This policy shall be applicable to all regular Employees and

trainees at all locations.

1. Leave Entitlement

• All employees shall be given 23 days of earned paid leave per

annum.
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 • The employees who have worked for 240 days or more
(excluding leave/ holidays declared by the company) in a
Calendar Year will be entitled for leave (i.e. 23 days per annum).
The employees who have worked for less than 240 days in a
Year shall be entitled for leave on pro- rata basis i.e. @ 1 day for
every 16 days of service (including leave and holidays).
• The employees who joins after 1st Jan. shall be entitled for leave
on pro- rata basis i.e.@1 days for every 16 working days of
service( including leave and holidays), provided they worked for
two-third of the days in the remainder of the calendar
year(instead of 240 days mentioned above in clause above).
• While calculating the leave, the fraction of leave of half a day or
more shall be treated as one full day's leave, and fraction of less
than half day shall be omitted.

All trainees shall also get leave @ 23 days per annum on pro-rata basis
and the same will be credited to their account on 1st January

2. Leave Availment

• Employees can avail leave for 1/2 day or more subject to

approval of management.
• The leave can be prefixed and / or suffixed to holidays / Offs.
• The intervening holidays / offs during the period of leave will be
excluded from leave.
• At the beginning of the Calendar Year (i.e. .on 1st Jan) leave
earned by the employees in the previous year shall be credited to
their account

3. Accumulation and encashment of leave

1. The unavailed leave can be accumulated upto 330 days.

Leave beyond 330 would lapse automatically.
2. Earned leave standing to the credit of an employee while in
service may be encashed at his/her option, only once in a
calendar year in the following manner.
• If an employee had more than 120 days earned leave
at his/her credit, he/ she can encash any amount of leave
over and above 60 days leave to be kept as his/her credit.
• In case the earned leave balance is 120 days or below,
then the employee an encash 50% of the leave at his/her
credit and balance 50 % will remain at his/her credit.
66
 • The encashment shall be admissible only when the
employee has taken minimum 6 days leave in that
particular calendar year.
• On separation/ Superannuation/ Death, the unavailed
leave shall be encashed.

An employee, while in service, shall be required to apply in writing

through HOD for leave encashment. The HRD shall process and pass
for the payment.

4. Other Leave

1. Maternity Leave
• It covers only married female employees who have
completed 180 days continuous service on date of availing the
leave restricted to two children.
• Maternity Leave maximum admissible shall be 12 weeks
(84 days) with full pay, six weeks before and six weeks after
delivery or in any other proportions.
2. Paid Holidays

• In addition to existing 6 paid holidays employees will be

entitled to avail two Restricted Holiday (RH) from the below
mentioned list of holidays during the calendar year.
• Employees will avail RH with prior intimation and
permission of the Company.
• The unavailed RH will not be allowed to be carried
forward.
• At times, RH balancing is to be done so as to ensure that
normal operations are not effected.

5. Birthday /Marriage Anniversary Leave

All regular employees shall avail leave for either Birthday or Marriage
Anniversary on application.

This leave cannot be carried forward, clubbed or encashed. If

Birthday/ Marriage Anniversary fall due on a holiday, the same cannot
be claimed on any other day and it shall lapse.

Compulsory Annual Leave:-

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 1. Total compulsory annual leave will be of 12 days for every
calendar year.
2. Out of 12 days CAL, leave of 7 days will be taken at a stretch by
employee.
3. Remaining 5 days CAL, can be taken by employee in
combination of 1 to 5 days as per his / her requirement.
4. While proceeding on CAL employees are requested to follow the
handing over and taking over charge policy.

Incase the same is not availed, twelve days leave (CAL) for the
current year will be deducted from their accrued leave balance as on
1st January of Next calendar year.

Recruitment Policy
The Recruitment Policy at ISPAT aims at enriching its pool of
talent through increasing skill and functional expertise, to become a
global leader through committed, motivated and empowered
employees. All of us should remember that it’s not the candidate who
is seeking employment with us but it is we who are seeking him for
the company. Hence, each and every candidate should be treated with
full dignity and respect.

Objective:

The objective of the Recruitment Policy is to resource the best

talent through Internal and External sources to achieve the Business
Objectives and Goals of the Company.

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Recruitment Process:
1. Internal Recruitment

Scope:

All regular employees at all locations.

Process:

• The vacancies which are to be filled up internally shall be first

posted on Lotus Notes, under “Internal Job Posting” (IJP),
displayed on the notice boards and in house journals.
• Eligible employees can apply for the same in the prescribed
format mentioning the reference number along with a forwarding
note by the Reporting Officer.
• All applications shall be sent to the Recruitment Head.
• The job opening shall be posted for a period as decided on case
to case basis but for a minimum period of one week.
• The job posting shall indicate detailed Job Description, location
of the job, the minimum requirement of experience in the
Company Grade and the last date of application.
• The process of selection shall include interview by panel and
competency matching for the post advertised. For any skill based
vacancy, skill test shall be administered.
• The decision of the panel shall be binding and final.
• Canvassing and influencing in any form shall immediately result
in disqualification of the candidate.

2. External Recruitment

Scope:

All vacancies in the company which need to be filled up through

external sources due to non availability of requisite talent/expertise
within the company shall be done through external recruitment. Even
the Casual employees of the Company can apply for such openings.

Process:

• All vacancies in the company which are to be filled externally

shall be advertised through Internet and/ or print media inviting
applications from eligible persons.
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• Predetermined recruitment consultants would also be intimated
about the requirement solely on need base as decided by the
recruitment department.
• The Potential candidates shall apply for the same in the
prescribed form.
• The job posting shall indicate detailed Job Description, location
of the job, the minimum requirement of Professional
experience/expertise and the competency requirements along
with the last date of application.
• The process of selection shall include interview by panel. The
panel would comprise of Departmental / Sectional Head of the
concerned area of vacancy and the location HR Head.
• The decision of the panel shall be binding and final.
• Canvassing and influencing in any form shall immediately result
in disqualification of the candidate.
• Candidate of age 55 & above shall not be considered as
candidature for the position of GM and above. Moreover for the
position upto DGM, candidate should not be more than 45 years
of age. However for deserving candidate in both the cases,
special approval needs to be taken from Hon’ble VC.

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