The Board of Directors hereby submits the 49^th Annual Report on the business and operations of your Company ("the Company" or
"KIOCL") and its Audited Financial Statements for the financial year ended March 31,2025 (FY'25), together with the Auditors' Report and
Comments on the Accounts by the Comptroller and Auditor General (CAG) of India.

FINANCIAL RESULTS AND STATE OF COMPANY'S AFFAIRS

(H in crores, Except EPS & Book Value)

Implementation of Risk Management Policy

The Company has been continuously assessing its risks to ensure sustained business operations aligned with its long-term objectives. The
following are the roles and responsibilities for effective implementation of Risk Management System across the organization: -

The Company has identified following major risks: -

MARKETING & SALES RISK

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OPERATIONAL RISK

FINANCIAL RISK

PEOPLE RISK

Directors and Officers insurance

The Company has undertaken Directors and Officers Liability
insurance ('D and O insurance') Policy for all its directors, including
Independent Directors and Officers.

Particulars of Loans, Guarantees or Investments

There was no loan, guarantee or investment made under Section
186 of the Companies Act, 2013.

Related Party Transactions (RPTs)

During the period under review, no transactions were entered with
Related Parties as defined under the Section 188 of Companies
Act, 2013 read with Regulation 34(3) and Para A of Schedule V of the
SEBI Regulations, 2015, as such annexure AOC-2 is not furnished.

Further, details of related party transactions entered by the
Company, in terms of Ind AS-24 have been disclosed in the
notes no. 28.2.4 to the financial statements forming part of
Annual Accounts 2024-25. The same were also disclosed to Stock
Exchanges on half yearly basis as required under Regulation 23(9)
of SEBI (LODR), Regulations, 2015.

The Board approved Policy on Materiality of Related Party
Transactions and dealing with Related Party Transactions is
available on the Company's Website at https://kioclltd.in/table.
php?id=280&lang = EN.

Material Changes and Commitments, if any, affecting
Financial Position

There was no material change / commitment occurred affecting
the financial position of the Company after the financial year
ended 31-03-2025 till the date of this report and there was no
change in business.

Management Discussion and Analysis Report

The Management discussion and analysis report as a part
of Director's report is set out in this Annual Report in terms
of the provisions of Regulation 34(2)(e) of the SEBI (LODR)
Regulations, 2015.

Business Responsibility & Sustainability Report

In accordance with Regulation 34(2)(f) of the SEBI Listing
Regulations, the Securities and Exchange Board of India ('SEBI'),
in May 2021, introduced new sustainability related reporting
requirements to be reported in the specific format of Business
Responsibility and Sustainability Report ('BRSR').

SEBI has mandated top 1,000 listed companies, based on market
capitalisation, to transition to BRSR from FY 2022-23 onwards.
Accordingly, the Company is pleased to present its BRSR for
the financial year 2024-25, which forms an integral part of the
Directors' Report.

BUSINESS AND OPERATIONAL REVIEW
Pellet Plant Unit

Your Company produced 0.926 million tons of Pellets during the
year 2024-25 as compared to 1.906 million tons in the previous year
and sold 0.977 million tons of Pellets as against 1.790 million tons in
the previous year. Out of the total quantity sold, exported quantity
was 0.155 million tons which was about 31% of the total sales.

Blast Furnace Unit

The Blast Furnace Unit (BFU) remained under suspension due to
uneconomic price of Pig Iron and high Coke Price since August
2009. Your Company is in the process of implementing the
backward integration of BFU (Coke Oven) to make its operations
economically viable.

Capacity Utilization & Sales performance

A snapshot of production target vis-a-vis actual achievement with
capacity utilization and sales performance during last five years
including current year are depicted at Table 1 & 2.

(Qty. In Million Tons)

(Installed capacity of Pellet Plant is 3.500 million tons / annum).

* The Company was exempted from signing MoU.

* During the financial year 2024-25, the Company sold 72 Metric Tonnes of Auxiliary.
(Note: Pig Iron includes Auxiliary)

Mineral Exploration Works

Highlights on performance of Mineral Exploration works

carried out are:

1. KIOCL as NEA (Notified Exploration Agency)

1.1. Going beyond iron ore processing, we have been serving
as a recognized Notified Mineral Exploration Agency
(NEA) empowered to conduct exploration projects
nationwide since 2015. We partner with the Ministry of
Mines for promotional exploration projects and offer
contractual exploration services to state governments,
public sector companies and private entities. Our team
contributes to India's mineral wealth by participating in
regional and detailed exploration programmes under
the National Mineral Exploration Trust (NMET) and
state government departments. We focus on identifying
areas with high mineral potential (OGP areas) using
established geoscientific methods, ensuring a
sustainable future for India's mineral resources.

1.2. From 2015 to till date, KIOCL has handled 36 Mineral
Exploration projects (29 completed and 07 under
progress). Mineral Exploration works of 29 blocks are
completed with total resources/reserve establishment of
2743.74 million tonnes of various mineral commodities
like Iron Ore, Limestone and low-grade Nickel. Out
of 29 completed blocks, 21 blocks are under auction
process (8 completed 13 under progress) by Govt of
Karnataka and Tamil Nadu.

2. KIOCL venturing into the arena of exploration for
CRITICAL MINERALS.

2.1. Ministry of Mines, Govt of India, on 24^th Jul 2023 has
released a list of 30 critical minerals crucial for its
economic growth and development across sectors,
such as energy, telecommunications, defence, and
more. By producing this list, India is acknowledging the
need to mitigate supply chain disruptions that could
affect its access to these critical mineral resources.
Besides the list, the government has released a policy
roadmap that support's the country's ambition for
cleaner technologies and its goal of becoming a net
zero emitter of greenhouse gases.

2.2. With the aim of providing the support to Ministry of
Mines, GoI, in augmenting Critical Minerals, KIOCL
is currently handling Three (3) G4/ G3 level Mineral

Exploration Works of Copper, Gold, Graphite and Rare
Earth Elements (REE) in the state of Karnataka and Tamil
Nadu (Nagawanda Copper Block, Arasanur Graphite
Block and Samalpatti REE Block).

3. KIOCL as GOLD EXPLORER.

3.1. Gold being precious metal which plays a crucial role
in India's economy by considerably contributing to
the GDP, KIOCL has entered in to the arena of Gold
exploration by carrying out G4 level of exploration
works for Gold over an extent of 50 sq km in Yadiyuru
Block, Mandya (Dist), Karnataka.

4. KIOCL as NEA carried out 488.5m of Core drilling works during the FY 2024-25 and achieved cumulative drilling meterage of
10,067.25m from 2019 to till date.

5. Generated a revenue of J 3.02 crores (Including GST) from Mineral Exploration works during the FY 2024-25 and cumulative revenue
of J 39.20 Crores (Including GST) from past 7 years.

Key Initiatives and Projects

Number of Projects Approved & Value of the Projects

A total of four (04) major approved projects were under implementation during the financial year 2024-25, with a cumulative project
outlay of H1168.34 crores, inclusive of GST.

The projects undertaken during FY 2024-25 are as follows:

1. Devadari Iron Ore Mine at Sandur, Ballari - Project cost: H882.46 crores (inclusive of GST).

2. Installation of a Coke Oven Plant - Capital outlay: H218.30 crores (inclusive of GST), as part of the forward and backward
integration projects of the BFU.

3. Installation of Vertical Pressure Filters at PPU, Mangaluru- Project cost: H 106.20

4. Mechanized Coal Handling System at PPU - Project cost: H30.78 crores (inclusive of GST).

Note: Installation of Dual Burner System in the Indurating Machine at PPU - Project cost: H36.80 crores (inclusive of GST);
[Implementation of this project has been deferred.]

EXPANSION OF MARKET BASE

Efforts have been made to expand the customer base to de-risk the business only to a limited extent. During FY 2024-25, a total of 6 new
customers were added to the list of empanelled buyers to expand the Customer Base for sale of iron ore pellets, which has helped to de¬
risk its business by way of reducing the reliance on export market.

CAPEX AND GROWTH PLAN

For long term sustainability / viability of your Company in the competitive market environment and consistent steady growth, your Board
had accorded approval for various CAPEX Projects, the status of CAPEX/Growth Plan is given below:

KIOCL is actively exploring joint venture opportunities for the
establishment of value-added plants as part of the forward
integration of the Blast Furnace, in accordance with Ministry
guidelines. M/s PwC has been engaged as a consultant to assist
in the selection of a suitable JV partner.

Installation of Vertical Pressure Filters at PPU,
Mangaluru

The installation and commissioning of four Vertical Pressure
Filters have been successfully completed, with an expenditure
of H 106.20 crores against the approved budget of H 158.60
crores. The Performance Guarantee (PG) test was conducted,
and the desired parameters were achieved in accordance with
the contract norms. The Vertical Pressure Filters are being
operated successfully.

I >

Installation and Commissioning of Coke Oven

Plant under Backward Integration Project at BFU,
Mangaluru

KIOCL's Board and the Public Investment Board (PIB) have approved
the project with a total capital outlay of H 836.90 crores. The Ministry
of Environment, Forest and Climate Change (MoEF&CC) granted
environmental clearance (EC), and the Karnataka State Pollution
Control Board (KSPCB) provided consent for the expansion in
June 2021, valid until June 2026. M/s MECON has been appointed
as the EPCM consultant for the project. The main technological
components include an NRHR-type Coke Oven Plant, a Waste
Heat Recovery Power Plant, a Ductile Iron Spun Pipe Plant, a
Pulverised Coal Injection (PCI) Plant, Oxygen and Nitrogen Plants.
The captive coke oven and PCI system will significantly reduce the
raw material costs for Blast Furnace operations.

The agreement for the Coke Oven Plant was signed with M/s
Tuaman Engineering Ltd, Kolkata, in November 2021. A Tripartite
agreement was also executed among KIOCL, M/s Tuaman
Engineering Ltd, and M/s CIMFR, Dhanbad, the technology
provider under the Atmanirbhar Bharat Initiative. The total project
cost for the Coke Oven Plant is H 218.30 crores, inclusive of GST.
Construction of the Coke Oven Plant is currently underway, with
a physical progress of 70% as of 31^st March 2025.

Mechanized Coal Handling System at PPU,
Mangaluru

The mechanized coal/coke handling system was conceived to
build a coke shed and material handling system, primarily as an
environmental pollution control measure. This project will help
reduce the moisture content of coke fines/limestone, minimize
the consumption of furnace oil, and prevent washout of coal/coke
fines into stormwater drains during monsoon. The construction of
the coke shed under Phase-I has been completed, and material
procurement for Phase-II is underway

The cost of the project is H 30.78 Crores including GST.

_ J

INFORMATION TECHNOLOGY FOR DIGITAL
TRANSFORMATION

Networking system

The revamped network with managed L2 and L3 core switches,
as well as optical fibre cables (OFC) and copper cables, enabled
high-speed and reliable data transmission. This revamped network
design lays the foundation for efficient data flow and seamless
communication across the organisation. The implemented
managed network setup enables centralised management and
monitoring of data traffic, facilitating effective troubleshooting
and maintenance.

With the implementation of an NMS server equipped with Active
Directory (AD) and Authentication, Authorisation and Accounting
(AAA) software, the company has bolstered its network security
and streamlined administrative tasks.

Data and cyber security

With digitalisation on the rise, ensuring the security of data and
online services is of utmost importance. KIOCL has deployed best
in-class technologies to protect the confidentiality, integrity and
availability of digital assets. Advanced security systems, including
the Fortinet Next Generation Firewall and Bit Defender Endpoint
Security, are deployed to safeguard the networks and end-point
devices from cyber threats. These systems proactively detect
and mitigate potential vulnerabilities, ensuring a robust defence
against malicious attacks. Moreover,

your company conducts regular IT audits and Vulnerability
Assessment and Penetration Testing (VAPT) exercises to identify

and address any security gaps promptly. By prioritising data and
cyber security, the company instils trust and confidence in the
stakeholders, safeguarding sensitive information and mitigating
potential risks.

Awareness Session on Cyber Hygiene and Security

An awareness session on Cyber Hygiene and Security was
conducted with the objective of sensitizing employees about safe
practices in the digital environment. The session covered essential
topics including password management, phishing awareness,
secure browsing habits, software updates, and the importance of
multi-factor authentication. The session aimed to build a proactive
cybersecurity culture among the workforce, thereby reducing
organizational vulnerabilities and ensuring compliance with IT
security policies.

Enterprise efficiency through ERP application

SAP application is being used to enhance operational efficiency,
data accuracy, and informed decision-making. By integrating
core business functions such as finance, materials management
and human resources, SAP facilitates streamlined workflows and
real-time data access. This comprehensive ERP system supports
standardisation of processes and improves resource planning.

Further, SAP functions have been integrated with the GeM portal
for all Post-order GeM transaction, Bank for Vendor Payments,
NIC services for email and SMS alerts, and biometric attendance
data of employees.

A portal for retired employees has been developed for Online
Registration, Enrolment and Renewal of Medical Insurance. The
portal will be live during the next FY 2025-26.

Employee Welfare

The Company has setup full-fledged facilities at Mangaluru by
establishing a well-planned township, First Aid Centre, Ambulance,
Recreation centre, Sports events, Canteen facility, Auditorium, IT
infrastructure to conduct various Meetings, Trainings etc. Issues
relating to productivity, safety, welfare, etc., are mutually discussed
with employee representatives.

Persons with Disabilities Act, 1995

KIOCL ensures compliance under Persons with Disabilities
Act,1995. Suitable provisions/modifications are made in the
workplace to meet the requirements of persons with disability.

Human Resource Development

Various training programs including in-house training programs,
nominations for external seminars, conferences were carried out to
enhance the skill sets of employees During the year, 2770 of man-
days of training was imparted to the employees.

Brief on Succession Planning;

In line with Succession Planning policy of the Company, KIOCL
has recruited 4 Executives under Lateral Entry in Group 'A' during
the year 2024-25.

Details of RTI applications and queries received during the
FY 2024-25;

During the period, KIOCL has received 50 RTI applications on
various matters and suitable reply was sent within stipulated
period of time.

Recruitment & Superannuation:

• KIOCL has recruited 4 Executives under Lateral Entry in
Group 'A' during the year 2024-25.

• 60 employees were superannuated from the Company on
attaining the age of superannuation.

• No employees were separated under Voluntary Retirement
Scheme during 2024-25.

Industrial Relations

Your Company continued to maintain harmonious industrial
relations, co-operation between the elected representative bodies
of employees and management.

Prevention of Sexual Harassment of Women at Workplace

KIOCL has a zero tolerance towards sexual harassment at the
workplace. In line with the provisions of Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act,
2013 (POSH Act), an 'Internal Complaints Committee' has been
constituted in the Company for redressal of complaint(s) against
sexual harassment of women employees. No complaint was filed
during the year under the Sexual Harassment of Women at the
Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The Internal Complaints Committee (ICC) was constituted in KIOCL
limited as per guidelines of The Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The four members Internal Complaints Committee (ICC) was
constituted with an eligibility span of 3 years to deal with complaints
of sexual harassment at workplace, wherein, three internal officers
constituting one male officer and one external member (with
legal experience).

KIOCL has constituted ICC at its working/administrative units both
at Bengaluru and Mangaluru to oversee matters related to the said
subject, and conduct training on gender awareness for employees.
The ICC is comprising of Presiding Officer women working at senior
level as employee, two members (minimum) from amongst the
employees committed to the cause of women and a member from
amongst NGO/associations committed to the cause of women or
person familiar with the issue of Sexual Harassment.

The ICC meeting was held at Corporate Office, Bengaluru on
7^th December, 2024 with Smt. Hemalatha Mahishi (ICC Member)
Member from NGO, Sr. Advocate, High Court of Karnataka.
Wherein, an awareness session on The Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal)
(POSH) Act, 2013 was conducted to the women employees
working in KIOCL Ltd.

During FY 2024-25 there are no complaints received on
sexual harassment.

The Annual Report under Sexual Harassment of Women at
Workplace(Prevention, Prohibition and Redressal) Act, 2013
for the year ending December 31^st, 2024 is submitted to the
Deputy Commissioner.

Remuneration Policy

The Policy of Remuneration to Directors, KMP & other Employees in
pursuance to Schedule II Part D (1) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 is available
on Company website at weblink https://www.kioclltd.in/table.
php?id=282&lang=EN. Your Company is a Government Company
within the meaning of Section 2 (45) of the Companies Act, 2013
and being a Central Public Sector Enterprise under Ministry of
Steel, the remuneration and other benefits of the employees of
the Company are fixed / decided by the Department of Public
Enterprises (DPE), Govt. of India.

Remuneration of Whole Time Directors

The salary and/or allowances of the Whole Time Directors are
decided by the President of India.

Remuneration of Independent Directors

Independent Directors are appointed by the President of
India. The remuneration to Independent Directors is paid by

way of sitting fee for attending Board of Directors meeting and
Committees meetings thereof. The sitting fee is being paid to
Independent Directors within the ceiling limit prescribed under
Section 197 (5) read with Rule 4 of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014.

Remuneration of Government Directors

No remuneration either by way of salary / allowances or sitting fee
is paid to Government Directors representing Ministry of Steel.

Remuneration of KMPs other than Directors

The salary and allowances of KMPs, other than Directors, are
governed by the pay scales determined in accordance with
DPE Guidelines.

Man-days Trainings

During the year, 2770 Man-days training was imparted to the
employees. Further, the Company in its commitment to good
corporate governance, also imparts skill development training
to contract workers, apprentices, students from managerial and
technical institutes as well as for local population.

Particulars of Employees

Ministry of Corporate Affairs vide its notification dated June 5, 2015
exempted Government Company with the applicability of Section 197
of the Companies Act, 2013. However, the remuneration received by
the employees of the Company, had not exceeded the limit prescribed
under Section 197 read with Rule 5 of The Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014.

Public/Staff Grievance Redressal

KIOCL Limited has framed a well-defined grievance procedure,
evolved under the 'Code of Discipline'. Staff Grievances received
are redressed to the satisfaction of the aggrieved. With respect
to public grievance, as and when any complaints are received,
necessary remedial action is taken promptly. Complaints/
grievances other than the staff grievance are categorized into
customer / consumer complaints / grievances from the Contractors,
NGOs / General Public etc. The respective project heads are
empowered to dispose of the grievances concerning their areas.

CORPORATE GOVERNANCE

Pursuant to Regulation 34(3) and Para-C of SEBI (LODR) Regulations,
2015, a separate section on Corporate Governance along with
certificate from Practising Company Secretary confirming the level
of compliance is attached and forms a part of the Board's Report.

Directors and Other Key Managerial Personnel

As on financial year ended March 31, 2025, the Board consists
of three members, two of whom were executive or whole-time
Directors & one non-executive Director, representing Ministry of
Steel. Details of sitting fees / remuneration paid to Directors and
to KMP's respectively are provided at table no.15 in Corporate
Governance Report.

Declaration by Independent Directors

The Company received necessary declaration from Independent
Directors under Section 149(7) of the Companies Act, 2013, that
they meet the criteria of independence laid down in Section 149(6)
of the Companies Act, 2013 and Regulation 25 of the Listing
Regulations. The Board of Directors at its 292^nd Meeting held
on May 29,2024, noted the declarations. Independent Directors
of the Company have registered themselves with Independent
Directors databank in compliance with Companies (Creation and
Maintenance of database of Independent Directors) Rules, 2019
and Companies (Appointment and Qualification of Directors) Fifth
Amendment Rules, 2019.

Women Directors

As on 01^st April, 2024, the company had two women directors on
Board, Smt. Sukriti Likhi, Non-Executive Govt. Nominee Director
representing Ministry of Steel and Dr. Usha Narayan, Independent
Director. However, as per MoS order, Smt. Sukriti Likhi had resigned
from the Board w.e.f 19.08.2024 and Dr. Usha ceased to be a
member of the Board w.e.f 31.10.2024 due to completion of her
3-year tenure. As at the end of the financial year on March 31,2025,
the Board of the Company did not comprise any women Directors.

Changes in the Composition of the Board
Inductions / Cessations

In terms of Article 91 of the Articles of Association of the Company,
the President of India is vested with the power to appoint the
Directors of the Company from time to time and shall determine
the term of office of such Director Accordingly, the following
appointments/cessations on the Board of your Company were
carried out as per the directives of the President of India: -

1. Shri T Saminathan, who was appointed as Chairman-cum-
Managing director by the Ministry of Steel vide Order No.
5/1/2020 dated 07.09.2021, superannuated from the post
w.e.f 31.05.2024.

2. Shri Ganti Venkat Kiran who was appointed as Director
(Production & Projects) by the Ministry of Steel vide Order
No. 5/3/2021 dated 08.05.2023 has assumed the post
of Chairman-Cum-Managing director vide Order No.
S-14015/2/2023-BLA dated 22.04.2024, w.e.f 01.06.2024.

3. Pursuant to Department of Personnel and Training's
communication No. 36/01/2024-EO(SM-I) dated 16.10.2024,
Ms. Sukriti Likhi, IAS (HY:93), Additional Secretary & Financial
Adviser, Ministry of Steel has relinquished the charge from
the Ministry w.e.f. 19.08.2024 (FN). Consequently, she ceases
to hold the charge of Government Nominee Director on the
Board of KIOCL w.e.f. 19.08.2024 (FN).

4. In Pursuance of the Ministry of Steel's Order No. 1/10/2015-
BLA (Vol-V) (pt.) dated 01.11.2021, Shri. Changdev Sukhadev
Kamble and Dr. Usha Narayan ceased to be Independent
Directors on the Board of KIOCL Limited w.e.f 31.10.2024 due
to completion of their 3-year tenure.

5. Shri. Vinod Kumar Tripathi, Joint Secretary, Ministry of Steel,
was appointed as Government Nominee Director on the
Board of Directors of KIOCL Limited vice Dr. Sanjay Roy by
the Ministry of Steel vide its Order No. S-14011/1/2022-BLA
dated 06.11.2024. Accordingly, Shri Dr. Sanjay Roy ceased to
be Director on the Board of KIOCL Limited w.e.f 06.11.2024.

6. Pursuant to Ministry of Steel's Order No. 1/1/2025-BLA
dated 15.04.2025, Shri. Changdev Sukhadev Kamble was
reappointed as an Independent Director on the Board of
KIOCL Limited w.e.f 15.04.2025.

7. Shri., Gopalkrishnan Ganesan, Director, Ministry of Steel, was
appointed as Government Nominee Director on the Board of
Directors of KIOCL Limited vice Vinod Kumar Tripathi by the
Ministry of Steel vide its Order No. S-14011/1/2022-BLA dated
11.06.2025. Accordingly, Shri Vinod Kumar Tripathi ceased to
be Director on the Board of KIOCL Limited w.e.f 11.06.2025.

Additional charge assigned to Directors

1. The Ministry of Steel vide its letter no. S-14015/4/2023-
BLA dated 19.04.2024 had assigned Additional charge
of Director (Finance) to Shri Binay Krushna Mahapatra,
Director (Commercial) w.e.f. 17.04.2024. Accordingly, he was
holding the post of Director (Finance) [Additional charge]
upto 17.04.2025.

2. The Ministry of Steel vide its letter no. S-14015/4/2023-BLA-
Part (1) dated 14.05.2025 had assigned Additional charge
of Director (Finance) to Shri Ganti Venkat Kiran, Chairman-
Cum-Managing Director w.e.f. 13.05.2025. Accordingly, he is
holding the post of Director (Finance) [Additional charge].

3. The Ministry of Steel vide its letter no. S-14015/2/2024-BLA
dated 14.05.2025 has extended Additional charge of Director
(Production & Projects) which was held by Shri Ganti Venkat
Kiran, Chairman-Cum-Managing Director w.e.f. 01.06.2025.
Accordingly, he is holding the post of Director (Production &
Projects)-[Additional charge].

Appointments / Resignations of KMP

1. Shri T Saminathan ceased to be the CMD and CEO of the
company w.e.f 31.05.2024

2. Shri Ganti Venkat Kiran was appointed as CMD and CEO of
the Company w.e.f 01.06.2024.

3. Shri Pushp Kant Mishra, ceased to be the Company Secretary
and Compliance officer of the Company w.e.f. 09.07.2024 due
to resignation.

4. Shri K V Balakrishnan Nair was appointed as Company
Secretary and Compliance officer of the company
w.e.f 14.08.2024.

5. Shri Saumen Das Gupta, Chief General Manager (Finance)
ceased to be the CFO of the company w.e.f 31.12.2024 due
to superannuation.

6. Shri Ram Krishna Mishra, Chief General Manager (Finance)
was appointed as CFO of the company w.e.f 13.02.2025

7. Shri. K V Balakrishnan Nair ceased to be the Company
Secretary and Compliance officer of the company w.e.f.
25.04.2025 due to resignation.

8. Shri Clafton Siddharth, Asst. Company Secretary was
appointed as Company Secretary and Compliance officer of
the Company w.e.f. 28.05.2025.

Key Managerial Personnel

In accordance with Section 203 of the Companies Act, 2013, the
Key Managerial Personnel (KMP) of the Company are as follows:

Shri. Ganti Venkat Kiran took charge as Chairman-cum-Managing
Director and CEO with effect from 01.06.2024, Shri. K. V. Balakrishnan
Nair served as Company Secretary and Compliance Officer from
14.08.2024 up to 25.04.2025 and Shri. Clafton Siddharth took
charge as Company Secretary and Compliance Officer with effect
from 28.05.2025. Shri. Saumen Das Gupta served as Chief Financial
Officer (CFO) up to 31.12.2024 and Shri Ram Krishna Mishra took
charge as CFO of the company with effect from 13.02.2025.

Directors Retiring by Rotation

In terms of Section 152 (6) of the Companies Act, 2013, Shri Binay
Krushna Mahapatra, (DIN: 09613777) Director (Commercial),
being longest in office shall retire by rotation at the ensuing
AGM and being eligible for re-appointment, offers himself for re¬
appointment. The Board recommends his re-appointment.

Number of Meetings of the Board

The Board met six (6) times during the year under review. The
details of meetings held are given in the Corporate Governance
Report. The maximum interval between any two Meetings did not
exceed 120 days. The Meetings were conducted in compliance
with relevant guidelines as given under SEBI (LODR) Regulations,
2015 and Secretarial Standard -1 issued by the Institute of Company
Secretaries of India (ICSI).

Directors Responsibility Statement

Pursuant to Section 134 of the Companies Act, 2013 (including any
statutory modification(s) and/or re-enactment(s) thereof for the
time being in force), the Directors of the Company state that:

a) In the preparation of the Annual Accounts for the Financial
Year ended March 31, 2025, the applicable Accounting
Standards had been followed along with proper explanation
relating to material departure.

b) The Company has selected such Accounting Policies and
applied them consistently and made judgments & estimates
that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company at the end of
the Financial Year and of the Profit & Loss of the Company
for that period.

c) The Company has taken proper and sufficient care towards
the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.

d) The Company have prepared the Annual Accounts on a
going concern basis.

e) The Company has laid down Internal Financial Controls,
which are adequate and are operating effectively.

f) The Company has devised proper systems to ensure
compliance with the provisions of all applicable laws and that
such systems were adequate and operating effectively.

The aforesaid statement has also been reviewed and confirmed by
the Audit Committee and the Board of Directors of the Company.

Annual Return

The Annual Return of the Company as on March 31,2025 in Form
MGT-7 in accordance with Section 92(3) read with Section 134(3)(a)
of the Act and the Companies (Management and Administration)
Rules, 2014, is available on the website of the Company at weblink
https://www.kioclltd.in/data.php?id=191&lang=EN.

MCA-21 e-filings

During the year under review, the Company filed all the statutory
forms and returns electronically as per the manner and conditions
for filing prescribed under Companies (Registration Offices and
Fees) Rules, 2014. The financial statements for the year 2024-25
were filed in accordance with the requirements of Section 134 read
with Companies (Filing of Documents and Forms in Extensible
Business Reporting Language) Rules, 2015.

Compliance with Secretarial Standards

The Company complies with the applicable Secretarial Standards
issued by the Institute of Company Secretaries of India (ICSI).

Other disclosures

The C&AG of India vide its letter dated 21.09.2024 had appointed
M/s G BALU ASSOCIATES LLP, Chartered Accountants as the
Statutory Auditor of the Company under Section 139 of the
Companies Act, 2013 for the financial year 2024-25. The Auditors
have confirmed that they are not disqualified from being appointed
as Auditors of the Company. The Auditors remuneration for the
year was fixed at H8.50 Lakhs plus applicable taxes for Statutory
Audit. The total amount paid to the Statutory Auditors for all
services rendered to the Company during the Financial Year 2024¬
25 was H13.05 Lakhs.

The Statutory Auditors have issued an unmodified opinion on the
financial statements for the financial year 2024-25 and the Auditor's
Report forms part of Annual Report.

Cost Records and Cost Audit

The Company is maintaining the cost records and requirement of
cost audit as prescribed under the provisions of Section 148(1) of
the Companies Act, 2013. The Cost Audit Report for the Financial
Year 2023-24 was filed with the Ministry of Corporate Affairs on
27/09/2024. The Cost Audit Report for Financial Year 2024-25
is under finalisation and will be submitted to the Ministry of
Corporate Affairs within the prescribed timeline.

Cost Auditor

The Company maintains cost records as required under the
provisions of the Companies Act. The Company had appointed
Cost Auditors for conducting the audit of the cost records
maintained for its Pellet Plant Unit during the Financial Year
2024-25. A remuneration of H 55,000/- was fixed by the Board for
payment to the cost auditors for Financial Year 2024-25, which
was ratified by the shareholders in the last AGM. The cost audit
reports are filed with the Central Government in the prescribed
form within the stipulated time. For the Financial Year 2025-26,
the Board in the absence of the Audit Committee has appointed
M/s Dhananjay V Joshi & Associates, Cost Accountants to audit
the cost records. The remuneration payable to the Auditor being
placed before the members in this Annual General Meeting (AGM)
for their ratification vide Resolution at Item No. 7 of the Notice
convening the AGM.

The Cost Audit Report for the financial year 2024-25 does not
contain any qualification, reservation or adverse remark.

Secretarial Auditor

Pursuant to the provisions of Section 204 of the Companies Act,
2013 and the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the Company appointed
M/s P.S. Bathla & Associates, Company Secretaries, Practicing
Company Secretary for conducting the Secretarial Audit for the
Financial Year 2024-25.

The Secretarial Audit Report and Secretarial Compliance Report
for the financial year 2024-25 forms part of this report.

Pursuant to provisions of Section 138 of the Companies Act, 2013
read with rule 13 of Companies (Accounts) Rule 2014 and based
on the recommendation of the Audit Committee, the Board of
your Company had appointed M/s Rao & Emmar, Chartered
Accountants, Bangalore as the Internal Auditor of the Company
for conducting Internal Audit for the Financial Year 2024-25 at
audit fees of H8,85,500/- (excluding GST). The objective of internal
auditing is to assist the Audit Committee/ Management in the
effective discharge of their responsibilities by furnishing them with
analysis, appraisals, recommendations and pertinent comments
concerning the activities reviewed. Besides conducting transaction
audit with adherence to legal and regulatory requirements, Internal
Audit is to evaluate the adequacy of risk management and internal
control system in the Company. While focusing on effective risk
management and control in addition to appropriate transaction
testing, the Internal Audit offers suggestions for mitigating current
risks and also anticipate areas of potential risks. The quarterly
Internal Audit Report is being placed before the Audit Committee
for its information and review.

Reporting of Frauds by Auditors

During the year under review, Auditors have not reported to the
Audit Committee (under Section 143 (12) of the Companies Act,
2013) any instances of fraud committed against the Company by
its officers or employees, the details of which would need to be
mentioned in the Board's report.

C&AG Audit

The Comptroller & Auditor General of India (C&AG) vide its letter
dated 05.08.2025 has conveyed "NIL" comments on the accounts
of the Company for the year ended March 31, 2025. Copy of the
same is annexed to this Report.

CORPORATE SOCIAL RESPONSIBILITY

The CSR obligation for FY 2024-25 was H149.72 lakhs. This amount
was adjusted by availing Set-off of H486.04 lakhs from carry forward
CSR expenditure from FY 2021-22 under the provisions of Section
135 of Company's Act, 2013. As a result, no CSR projects were
undertaken during FY 2024-25.

The brief outline of the Corporate Social Responsibility (CSR)
initiatives undertaken by the Company during the year under
review form part of this Report as an Annexure in the format
prescribed in the Companies (Corporate Social Responsibility
Policy) Rules, 2014 and amendments. For other details regarding
the CSR Committee, please refer to the Corporate Governance
Report, which is a part of this report. The CSR policy is available on
weblink https://www.kioclltd.in/table.php?id=282.

KEY INITIATIVES

Environmental Management and Pollution Control Measures:

1. Planted around 7.5 million saplings in and around mine
area at Kudremukh.

2. Water head (Gravity) at Lakya dam is being used for drawing
water for plant process requirement at Mangalore instead of
pumping after the closure of mining activity at Kudremukh.

3. 80 KLD capacity STP has been commissioned and treated
effluent is recycled in the process. The waste water generated
in the process is treated and is completely recycled in the
process. Pellet Plant unit is a Zero discharge unit.

4. The Captive Power plant of 28 MW capacity is being operated
using low Sulphur Furnace oil to reduce the Sulphur emissions.

5. The DG Sets have been provided with acoustic enclosures to
reduce the Noise levels.

6. The process chimneys have been provided with control
equipment's such as Wet scrubbers, Multi clones
and Bag filters.

7. Slurry pumps have been installed to pump back the storm
water to the process.

8. Mist type sprinklers and large area type sprinklers have been
installed at various locations in the plant to suppress the
fugitive dust emissions.

9. The solid wastes generated in the plant premises is
composted and used as manure.

10. The Hazardous wastes are segregated at source and stored
in closed sheds category wise. These wastes are sold to
agencies authorised by CPCB and KSPCB.

11. The scrap lead acid Batteries, E-wastes, Bio medical
wastes are disposed as per the requirements prescribed in
the relevant Acts.

12. Plantation activity is taken up every year with in the plant
premises and neighbouring areas around Mangaluru.

13. Action has been taken to implement energy efficient lighting
systems such as Solar and LED in the plant areas.

14. In order to efficiently process the IOF with different grades,
4 nos. of vertical pressure filters (Metso make), each with a
capacity of 100 TPH were installed in the month of March
2024. With the operation of vertical pressure filters, power
consumption reduces by about 11 units per ton of production,
as compared to vacuum disc filters.

15. At the Blast Furnace Unit, the process has in-built online
Dust Catcher and Gas Cleaning Plant for processing the
gases generated in the Blast Furnace. Further, the CO gas,
which is a by-product of Blast Furnace, is not let out to the
atmosphere but effectively utilised to generate power in our
2 x 3.5 MW Captive Power Plant. A part of this gas is also used
to preheating process air at stoves.

16. KIOCL has constructed a Coke Storage Shed (Closed shed)
of capacity 32000 MT for storage of Coke fines.

17. The Pellet fines (2% of Pellet production) is recycled in the
process after Re-Grinding. There is no solid waste generation
in the Pellet Plant and other wastes such as plastic and paper
wastes are recycled.

Training & Safety

Brief details of Training & Services department Mangalore (PP

unit & BF unit):

(a) The Onsite emergency plan approved by the Director of
Factories is in existence for both the Pellet plant and Blast
furnace unit. The same will be updated as and when there
is a change in plant condition as well as emergency team
members. Emergency mock drills are conducted to practice
the role of each member of the emergency team and to
control all potential emergencies at PPU &BFU's. A mock drill
was conducted on 22.11.2024, PP Dept, PPU. As a part of
mutual aid, we are participating in the nearby chemical and
gas industries.

(b) Worker's participation in the Safety Management system is
one of the important subjects as per the Factories Act. The
Company has formed area-wise Safety Committees. Worker's
participation in these Safety Committees is ensured in PPU
and BFU units of KIOCL. The Safety Committee meetings are
conducted on 21.12.2024 & 25.03.2025 at PPU and 18.10.2024
& 20.01.2025 at BFU.

(c) The External Safety Audit has been conducted in the month
of July - 2024 through M/s Bureau Veritas Industrial Services
(India) Pvt Ltd, Bangalore, as per statutory requirement and to
maintain the plant premises in safe condition, next is planned
during June -2026.

(d) A very effective administrative tool for best safety practice
communication is Safety Pep talk ensured by HOD and
toolbox talk ensured by engineer in charge of each
department which is being in practice in both units on a daily
basis. This will educate safety awareness and to communicate
major /minor accidents/near miss for all the employees
including contractors and workmen.

(e) Various safety posters/cautions boards (Administration
control) & Do's/ Don't were displayed at various locations of
the plant premises.

(f) Achieved zero-man days loss in the FY 2024-25.

(g) Accident-free period in KIOCL limited from 12.12.2019 to
31.03.2025. Accident-free days after LTI: 1936 days.

(h) Safe Million-man hours for the year 2024-25 - 1.9MMH,
Cumulative Million man hours: 9.6MMH since last accident.

(i) Various Training programmes are conducted as detailed
below to inculcate Safety consciousness and to develop
safety culture at plant premises such as Refresher Training
on SOPs and Maintenance activities, First aid, Firefighting
training, Awareness program on Environment, Safety at
work permit System, Occupational health, Safety, Vigilance,
Sustainable development, and Productivity.

(j) Discussion on critical Safety observations once in every week
is being done under the Chairmanship of Factory Manager.

(k) Safety Inspections are carried out regularly once in a week and
once in two months by the Safety department executives along
with the concerned department executive engineers and Safety
committee members. The inspection reports were prepared and
reported to concerned Departmental Heads for compliance.

(l) Suitable ISI standard Personal Protective Equipment such as
Safety Helmets, Safety Shoes, Respirators, Raincoats, Hand
Gloves, Safety Goggles, Face shields, Aprons, Ear plugs/
muffs are purchased and issued to all employees, including
Contract labourers to protect them against workplace
hazards. H 4,65,053 (Four Lakh sixty-five thousand fifty-three
only) worth PPE purchased during FY 24-25 and the same is
planned for the year 2025-26.

(m) As per Factories Act 1948, National Safety Week is being
celebrated every year. The previous National Safety Week
celebration was conducted from 4^th March 2025 to 10^th March
- 2025. As a part of National Safety Week, Safety slogans in-
Kannada, English and Hindi and Safety posters painting are
planned in addition to four guest lectures are planned. The
photographs of the Safety week celebrations are attached.

(n) The 54^th National Safety Day celebration by Department
of Factories, Boilers & Industrial Safety & Health, Govt
of Karnataka in association with National Safety Council,
Karnataka Chapter-Mangaluru Action Center, organised a
Safety Quiz competition to Worker's category for all industries
at Dakshina Kannada district, wherein Pellet Plant Unit team
bagged the 2^nd prize and Blast Furnace Unit team bagged
the 3^rd prize. The prizes were awarded to the winners in the
ceremony organized at Town Hall, Mangalore on 20.03.2025

which was inaugurated by Shri. Mullai Muhilan M P, IAS
(Deputy Commissioner, Dakshina Kannada District) in the
presence of the Dy. Director of Factories, D.K.

(o) As a part of 54^th National Safety Day celebration, KIOCL
(PPU &BFU) organized the safety week celebration 2025 from
04^th to 10^th March 2025, various safety competitions were
conducted for the employees and contract workmen by T&S
department. Safety slogan (English, Hindi & Kannada), Safety
suggestions by employees, Safety elocution for contract
workers, Safety drawing competitions for school children and
Contract workers, Safety Quiz competition for employees.
Departmental Housekeeping awards and also initiated Safety
excellence awards 2024 (winners & Runners). Prizes were
distributed to the winners during the valedictory function in
the presence of Sh. G.V Kiran (CMD) KIOCL and chief guest Dy
Director of Factories & Boilers, Govt of Karnataka (D.K district).

(p) Vertigo Testing Structure inaugurated on 17.08.2024, to check
the suitability of a worker to work at height was inaugurated
at the Pellet Plant Unit by Sri. G.V. Kiran, CMD in the
presence of CGM I/c Mangalore, CGM (HR&A), GMs, Senior
Officials, representatives of Unions/Associations and later, a
demonstration was portrayed to empathize the functioning
of the structure. For the FY2024-25, 74 workmen completed
the training and issued Vertigo test pass by T&S department.

(q) 24 ATS trainees training completed and On-the-job skill
development training also conducted for 76 Technical
college students also provided along with one week each of
Internship training during the year 2024-25.

54^th National Safety Day celebration at KIOCL LIMITED
-04^th March 2025)

As part of the 54^th National Safety Day celebrations, the Department
of Factories, Boilers & Industrial Safety & Health, Government
of Karnataka, in association with the National Safety Council -
Karnataka Chapter (Mangaluru Action Center), organized a Safety
Quiz Competition for the Workers' Category across industries in
the Dakshina Kannada district.

Several industries participated in the event. KIOCL Limited secured
notable positions:

• The PPU team won the Second Prize

• The BFU team won the Third Prize

Mementos were presented to the winners during the award
ceremony held at Town Hall, Mangalore, on 20.03.2025. The
function was inaugurated by Shri Mullai Muhilan M P, IAS, Deputy
Commissioner, Dakshina Kannada District.

Additionally, a cash award of H 750 was given to each Second Prize
winner and H 500 to each Third Prize winner.

Various competitions held under the 54^th National
Safety Day Theme 2025

• Safety Slogans Competition for Employees. (Slogans in
Kannada, English and Hindi).

• Safety quiz competitions for Employees.

• Suggestions for implementation of safety with no or minimum
cost" for employees.

• Safety Posters Competition for School Children.

• Safety Posters Competition for Contract workmen.

• Safety Elocution competition for Contract workmen.

• Best housekeeping award for 2024-25

• Safety Excellence Awards 2024, for remarkable achievement
of best safety record during the year 2024-2025 (Winner)

• Safety Excellence Awards 2024, for remarkable achievement
of best safety record during the year 2024-2025 (Runner).

ISO Certification

KIOCL holds ISO integrated management system certification
for Quality Management System (QMS) as per ISO: 9001:2015
Standard, Environmental Management System (EMS) as per
ISO 14001:2015 Standard and Occupational Health & Safety
Management System (OHSMS) as per ISO 45001:2018 Standard.

The last surveillance audit done by the certifying body i.e. M/s. VEXIL
BUSINESS PROCESS SERVICES PRIVATE LIMITED in the Month of
October 2024. The certifying body verified compliance with IMS
standards and recommended for continuation of certificate.

The present certificate is valid till November 2027.

Implementation of Official Language Policy

The year 2024-25 was of vivid activities and achievements in
terms of progressive use of the Official Language. KIOCL Limited
received the First prize during the first half-yearly meeting held on

04^th December 2024 by the Town Official Language Implementation
Committee (Undertaking), Bengaluru. In another similar event
Pellet Plant Unit, Mangaluru received Third prize by Town Official
Language Implementation Committee, Mangaluru.

The Department of Official Language conducted timely
proceedings of the meetings of the Official Language
Implementation Committee during the year as per the objectives
of the Annual Program 2024-25 of the Department of Official
Language (Ministry of Home Affairs). Regularly organized
practical and office-related workshops and conducted official
language inspections.

The Corporate Official Language Department of KIOCL
participated in the 4^th All India Official Language Conference
organized in New Delhi on 14-15 September 2024. The
Department of Official Language organized innovative Hindi
competitions during Hindi Pakhwada, 2024, in which all groups
of employees participated. The winners of various competitions
held during Hindi Pakhwada were ceremoniously given awards
in the gracious presence of eminent literature. As an exemplary
activities KIOCL organized 10 online competitions in two days and
complete activities in short time span of only one week for TOLIC
(PSU), Bengaluru which was widely appreciated by member PSUs
of TOLIC (PSU), Bengaluru.

During the year, various documents related to the Company's
website, correspondence with the Ministry of Steel, reports on
Standing Committees, Annual Reports, House Journal, Press
Releases, RTI and other forms were translated promptly and
efficiently by the Department of Official Language.

KIOCL Limited's e-magazine 'Srigandha' was published every
quarter of the year, and was disseminated through email and
WhatsApp. The link of the e-magazine was also made available
on the website of the Company and the web-portal of the
Department of Official Language (Ministry of Home Affairs) under
the E-Library section.

The June issue was focused on International Yoga Day, the
September issue on the Fourth All India Official Language
Conference held in Delhi, the December issue on Overview and
the March issue on Golden Jubilee of KIOCL Limited. E-magazine
Shrigandha-14 (December, 2024 issue) was released by the
Honourable Union Minister of State for Home Affairs Shri Nityanand
Rai and the Honourable Governor of Bihar Shri Arif Mohammad
Khan at the Regional Official Language Conference and Award
Distribution Ceremony held in Mysore on 04^th January, 2025. In the
same conference, the initiative of providing the released magazine
in the form of QR code and distributing the previous issues as
bookmarks along with the KIT was appreciated by the participants.

Subsequently, adopting the basic mantra of inspiration and
encouragement, KIOCL published advertorials and good
thoughts related to Hindi in newspapers on Hindi Day (September
14) and World Hindi Day (January 10). With active participation
in the Regional Official Language Conference of South and

Southwestern Regions an exhibition of displays showing
progressive progress was organized.

VIGILANCE

Preventive vigilance has been the thrust area of Vigilance
Department all these years and the same has received focused
attention during the year. A climate of preventive vigilance is
generated to sensitize officials at all levels about the ill effects of
corruption and malpractices.

Regular quarterly Structured Meeting of Vigilance with the
management have been conducted and issues related to Systemic
Improvements, e-Governance, Leveraging Technology, Tender
Management, Award of Works, rotation of officers holding sensitive
posts, implementation of Integrity Pact etc., have been discussed.

The Vigilance Department is certified for compliance to
ISO certification 9001-2015 standards to ensure continuous
improvement in Quality Management System. Certificate is valid
till 28.01.2028.

e-Procurement is in vogue and the threshold value for this is fixed
at H 2 Lakhs and above. During the year, 97.40% of contracts by
value are covered under this. All payments are being made through
electronic mode. During the year, 23 work/purchase/sale orders
have been issued incorporating Integrity Pact Clause, covering
86.54% of contracts by value. No complaints have been received
under Integrity Pact.

58 Scrutiny/examinations, 25 General inspections, 14 Surprise
checks and 12 CTE type inspections were carried out during the
period and corrective actions, if any were suggested. Necessary
action has been taken in all the complaints received during the year.

From this year, Vigilance dept. started the practice of studying
the various processes of the Company and issuing advisories
wherever necessary.

Vigilance Awareness Week-2024 was observed from 28^th October
to 03^rd November 2024 at all the locations/offices of KIOCL Limited.
The theme of this year's Vigilance Awareness week was "Culture
of Integrity for Nation's Prosperity" "gcftBi Ht OTfilV g Ht g_IV'.

Walkathons were organized for creating Vigilance Awareness at
Corporate Office, Bengaluru and Plant at Mangaluru. Workshops,
Training courses, Guest Lectures, Sensitization programs were
conducted in observance of the Vigilance Awareness Week. Essay,
slogan writing and quiz competitions were conducted among the
employees, school and college students. On this occasion, the
importance of observing the Vigilance Awareness Week and steps
taken to strengthen vigilance activities were highlighted

During the year, 21 training programs related to Vigilance
were attended by officers including Vigilance Officers totalling
2293 man-hours.

Compliance of recommendations made by the Committee on
Papers Laid on the Table (Rajya Sabha) in its 150^th Report

Nature of Pending Cases- There are no pending cases during
the year 2024-25.

Audit Paras: There is no pending Audit Para from C&AG during
the year under review.

Expenditure on R&D

No expenditure has been incurred for R&D activities during
the FY 2024-25.

Procurement of raw material from sources other than NMDC;

During the FY 2024 -25, Company has not procured any Iron Ore
Fines from sources other than NMDC.

MSME Act, Section 21 & Filing of Form MSME-1

As per MSME Development Act 2006, where any MSME vendor
supplies any goods or renders any services to any buyer, the buyer
shall make payment within 45 days from the day of acceptance of
goods/ services. Where any buyer fails to make payment to the
supplier within 45 days, the buyer shall be liable to pay interest
on that amount.

A total amount of H 42.63 Crores was paid to MSME vendors during
the Financial Year 2024-25 and the details of the amount released
and the number of days to which the payments were released are
furnished below:

The Ministry of Corporate Affairs (MCA) issued a notification on
22-01-2019 states that specified Companies having outstanding
dues to the MSME (Micro, Small and Medium) enterprises have to
file the particulars of all current outstanding dues in Form MSME-
1 with the ROC (Registrar of Companies). Since, your Company
had no payments outstanding for more than 45 days to the MSME
supplier, form MSME-1 was not required to be filed during the year.

ii) Implementation of New Public Procurement Policy for
MSMEs:

In line with the Govt. of India guidelines as per MSME
Development Act 2006 and keeping in view of the effective
implementation of Public Procurement Policy for Micro and
Small Enterprises (MSEs) Order 2012, following steps were
taken by the Company:

List of item components that could be sourced from MSEs
were posted on the Company's website at www.kioclltd.in for
the information of MSE vendors.

Communication sent to all the registered vendors regarding the
said policy with the objective of achieving an overall procurement
from MSEs. Further, for enhancing the procurement from MSEs
owned by SC/ ST, all the vendors were approached for capturing
necessary details and update the data bank.

During the FY 2024- 25, Company placed orders for Goods &
Services for a value of H70.13 crores from MSE's which constituted
62.70% of the total procurement value (Goods and Services) of
H 111.86 crores (excluding iron ore fines and furnace oil).

The procurement from MSMEs complies to Public Procurement Policy during the financial year 2024-25 as placed below:

Trade Receivables Discounting System (TReDS) platform

In exercise of powers conferred by Section 9 of the Micro, Small
and Medium Enterprise Development Act, 2006 (27 of 2006), the
Central Government has issued instructions that all CPSEs shall be
required to get themselves on boarded on the Trade Receivables
Discounting System (TReDS) platform, set up as per the notification
of the Reserve Bank of India. In compliance with the above
instruction, your Company is on the TReDS platform to facilitate
financing of trade receivables of MSEs by discounting of their
receivables and realisation of their payment before the due date.

Details of complaint filed by the MSEs, on MSME SAMADHAN -
Delayed Payment Monitoring System, if any and its resolution. -

During FY 2024-25, a pending claim from M/s NESTLER PROTEC
INDIA LIMITED was filed by the MSEs, on MSME SAMADHAN -
Delayed Payment Monitoring System.

Procurement from Government e-Marketplace (GeM)

Against the target of H 160/- Crores, KIOCL made procurement
amounting to H 104.52 Crores through GeM portal during the
Financial Year 2024-25.

Import Substitution:

Right to Information

In consonance with the spirit of Right to Information Act, 2005
the Company has created necessary mechanism as required
under the Act. The Public Information Officers and Appellate
Authorities are effectively responding to the requests and appeals
of the applicants. The names of all PIOs/ Appellate Authorities are
displayed on the Company's website. During the period, KIOCL
has received 50 RTI applications on various matters and suitable
reply was sent within stipulated period of time.

Energy Conservation, R&D, Technology Absorption, Forex
Earnings & Outgo

Details of Energy Conservation, R&D, Technology Absorption and
foreign exchange earnings and outgo stipulated under Section
134(3) (m) of the Companies Act, 2013 read with Rule, 8 of the
Companies (Accounts) Rules, 2014, is annexed to this report.

Appreciations and Acknowledgement

Your directors gratefully acknowledge the support, co-operation
and guidance received from the Hon'ble Minister of Steel, Hon'ble
Minister of State for Steel, Hon'ble Chief Minister of Karnataka,

the Secretary, Ministry of Steel and other officials of the Ministry
of Steel as well as other Ministries of the Government of India,
Government of Karnataka, Odisha, Tamil Nadu and all other
departments / agencies of Central and State Government in all the
endeavours of the Company. The Board is also thankful to all its
stakeholders, including bankers, investors, members, customers,
consultants, technology licensors, contractors, vendors, etc., for
their continued support and confidence reposed in the Company.

Your directors appreciate and value the contribution made by
every member of the KIOCL family.

For and on behalf of the Board of Directors
Sd/-

(G V Kiran)

Date: 27.08.2025 Chairman-cum-Managing Director

Place: Bangalore DIN: 07605925