CSR Project of ISPAT industries Ltd.

Corporate philosophy
Ispat Industries believes that it affects and is affected by the stakeholders that live in the
vicinity of its plants. Hence, it believes that it has a major stake in the development of the
area and the people that reside therein. Ispat's perspective on corporate citizenship is
based on the principle, "If you give a man a fish, you give him a meal; if you teach him to
fish, you give him a livelihood." This axiom extends to include providing opportunities to
the disadvantaged section. As a part of its community initiatives, Ispat engages in
numerous philanthropic activities that are built around the motto, "Adding a bit of steel to
human lives".

Brief note, highlighting CSR activities &

achievements:

Ispat Industries believes that it affects and is affected by the stakeholders

including the society that co-exists in the vicinity of its plants. Hence, it believes
that it has a major stake in the development of the area and the people that
reside therein. Accordingly, it has volunteered its resources to the extent that it
can reasonably afford, to sustain and improve a healthy and prosperous
environment and to improve the quality of life of the people of the areas in which
it operates.

Ispat Vision Statement

To be an organization that continuously achieves economic value by optimizing

resources through operational excellence, powered by technology, driven by
innovation creating customer delight.

Ispat has engaged in numerous activities that are built around the motto, "Adding
a bit of steel to human lives" and is involved in producing quality steel controlling
wastes and environment polluting elements.

While Values are at the core of the Company, all the decision makings,
processes and policies are based on the embedded values. Initiatives are taken
to frame code of ethics accordingly. Training and awareness programs are
carried out at this front. Employees are brought in the main streams of the Code
of Conduct, Living with Values including working in tandem with environment.
Various Key CSR issues for the company includes Socio-economic status of the
communities in and around area of operation, Education, Health for all,
Environment, Sports, Amenities and Community Service, Relief during natural
Calamities etc.

Ispat would like to realize it’s vision through a mission which is – “To be amongst
the world’s most admired new generation steel companies: in our products, in the
manner in which we service our clients, in our work ethics, and in our culture of
societal integration”.

To embrace our mission, our Corporate Philosophy accentuates to encourage

and enrich quality of life of the community in congruence with our core values
and Concern for society and social responsibility.

At Ispat, serving the local community, society development and sports promotion
has always been one of the important items in the top management’s agenda.
Consciousness about environment and ecology has been prominent in the
scheme of things and cultivated into various actions and initiatives towards its
protection.

Our CSR activities focus on three main areas viz.

A. Health Status with emphasis on Reproductive and Child Health.

- Reduction in Birth rate, Still Birth rate, Mother Death, Infant Mortality and
Children Mortality.
- Achieve Reproductive and Child Health (RCH) Standard as per National
Policy on Health.

B. Income Generation Activities:

a) Women Development.
- Help Women achieve financial independence and acquire social awareness
for the holistic development of Rural people in a sustained manner.

b) Youth Development.
- Making Youth Self Reliant through Self employment.

c) Farmers Development
- Help to improve Production, Productivity through improved Technology
Usage, Organic Farming, and Market Linkages and through supplementary
income generation activities.

C. Education Empowerment
- Up-liftment and qualitative improvement in life style of the underprivileged
masses through skill up-gradation and employment generation .

Accordingly, following target groups have been identified:

▪ Children at the age group 0 to 6.
▪ Pregnant Women and baby feeding Women.
▪ Adolescent Youth between age group 11 to 18.
▪ Women and their existing/New groups.
▪ Unemployed Youth between age group 18 to 35.
▪ Farmers and Forest dependent communities.
▪ ITIs in Ratnagiri and Raigad Districts.

Various activities have been targeted under the three main focus areas and
accordingly success indicators have been identified to measure the performance
against the given targets. Some of the indicators identified are as under:
• All the wells are regularly cleaned through Shramdan and water is treated
with chlorine tablets and other means.
• Personal hygiene and cleanliness habits in adolescent youths are visible.
• Personality development visible in youths.
• Behavior change towards Alcoholism.
• 100% literacy and awareness on anti-drugs, anti-AIDS.
• Superstition reduced to great extent
• Coordinator between community, government and community-based
organizations can be seen.
• Family income of at least of 50% would be raised than the base line figure of
income.
• Reduction in infant mortality and birth rate to .
• Improvement in Mother and Child health.
• Millennium Development Growth (MDG) Level.
• Barring of Girl marriage before age of 18 years.
• No Pregnancy before age of 20 years.
• Appropriate diet and green vegetable intake,
• No Malnutrition in Child and Baby feeding Mother.
• Medication as per Nurse advise during pregnancy.
• Spacing between two children.
• Atleast 70% houses will establish own kitchen garden for green leafy
vegetables.
• Atleast 70% houses will have soak pits for domestic waste water disposal.
• Atleast 70% houses will have Self Income Generation scheme activated.
• Such House will have cent percent Credit Linkages established.

Social initiatives
 IIL contributes actively to social welfare
Ispat Industries has always taken an active interest in the social welfare of the community
in which it operates. The company's initiatives towards fulfilling its philosophy of
corporate social responsibility include providing material and monetary aid to schools,
primary health centres, hospitals, sports clubs and places of worship. In addition, Ispat
has made major contributions in the following areas:

Water
In an activity which occurs around the year, IIL provides 44 villages with free drinking
water. The company permits its water pipeline to be tapped so that local people get a
constant source of drinking water.

Beautification of public spaces

IIL believes that its presence should add to the physical beauty of the surroundings of the
town. Therefore, it has taken upon itself, the beautification of public spaces with the
concurrence of the local administration. The two prominent places are as follows:
(1) The Collector's Garden, opposite the collectorate and
(2) Two public roundabouts near the state transport stand

School uniforms and books

IIL routinely distributes textbooks, school uniforms, notebooks and computers to students
of schools in the vicinity. This is done to reduce the dropout rate in the area. IIL believes
that helping a student by motivating him to complete at least his schooling would enable
the child to get a slightly better chance in the outside world.

ISPAT donates computers to rural school

Speaking on the occasion of the Republic Day celebrations, the principal of Janata High
School, Gadab, heartily thanked Ispat Industries Limited (IIL) for donating two
computers to the school students.

The school authorities hailed the generosity displayed by IIL and recounted instances in
the past when the company had come forward to help it out of difficult situations. The
two computers donated by the company, they said, would go a long way in familiarizing
their students with the functioning and handling of computers. To this Dr B Yadava,
director (Community Development), IIL, responded that the company believed it was its
duty to lend a helping hand to the needy.

IIL was represented at the function by Aloysius Lobo and Kanchan Kothekar of the Land
Department, Geetapuram.

The Republic Day celebrations at the school premises included flag hoisting, calisthenics
and a variety of entertainment programmes, with almost the entire village in attendance.
Later in the afternoon, a kabbadi tournament sponsored by IIL was held adjacent to the
school.
ISPAT contribution during floods of 26/7

Ispat Family Displays an Example of Excellent Teamwork to Combat Incessant

Rains on July 26, '05

Mumbai, India's financial capital came to a standstill as incessant rains disrupted life and
living on 26th July '05. During this trying time, the administration departments of Ispat
Industries Ltd. rendered special support to the employees and their families in and around
areas of its operations.

Ispat's employees, with the help of the District Administration, helped in clearing the
flood water on the Kharpada Bridge that was un-operational due to high waters flowing
in the forwarded areas towards Alibag.

On 26th July '05, Ispat also provided earth-moving equipments for saving the lake from
bursting. An emergency alarm was raised by the District Administration for vacating
more than 10,000 people from the vicinity of the lake. With sheer efforts of the District
Administration and Ispat's timely support, the situation was handled, thereby averting the
disaster.

On 27th July '05, Ispat authorities ensured that the debris and the muck gathered on the
main roads was cleared. On the call of the District Collector, Mr. Wankhede, Ispat
provided more than 10,000 food packets to the devastated flood-stricken population of
Mahad and nearby villages.

Ispat's contribution was acknowledged by the District Authorities, residents of Pen and
the villagers. The officials also received a letter of appreciation from the RTO – Pen.

ISPAT wins Golden Peacock Award

Ispat wins coveted Award for Corporate Social Responsibility

Ispat Industries Limited has been awarded the ‘Golden Peacock Award for Corporate
Social Responsibility - 2005’ by the award Jury, under the Chairmanship of Justice P N
Bhagwati, former Chief Justice of India in the category of ‘Private Sector’. The award
instituted by the Institutes of Director, New Delhi, is based on the pattern of the Malcolm
Baldrige Awards in USA for outstanding achievements.

The award was presented during the inaugural session of the 16th World Congress on
Total Quality, on Friday, 20 January 2006 in New Delhi by Smt. Sheila Dixit, Chief
Minister, Delhi.

Ispat’s Corporate Social Responsibility programme, encompassing rural health, primary

education, rural women empowerment and promoting district level sports, has always
been acknowledged in the environment in and around where it resides. The company’s
overwhelming role in protecting the lives of thousands of disaster hit villagers in and
around the Pen Taluka during the recent Maharashtra floods has received special
accolades from all quarters.

While presenting the Award, the panel of Jury made special references to Ispat’s role in
stopping of some of lakes and tanks in the district from being inundated, thereby
protecting many of the villages in Pen from being washed away.

Ispat, operates a 3 million tonnes integrated steel complex at Dolvi, located at Pen Taluka
in Raigad district of Maharashtra. The steel complex is about 100 kilometers from
Mumbai. Ispat also has a downs-stream cold rolling complex at Kalmeshwar, near
Nagpur.