In terms with the provisions of the Section 178 and all other sections, if applicable, of the Companies Act, read with relevant Rules framed thereunder and Clause 49 of the Listing Agreement entered with the Stock Exchanges MSP Steel ('The Company') on the recommendation of the Nomination & Remuneration Committee of the Board lay down a policy for:
The company thus has adopted this Nomination & Remuneration policy incorporating all above mentioned points for the Directors, Key Managerial Personnel and senior management.
This policy is applicable to:
The Company recognises and embraces the benefits of having a diverse Board of Directors and sees increasing diversity at Board level as an essential element in maintaining a competitive advantage in the complex business that it operates. It is recognised that a Board composed of appropriately qualified people with broad range of experience relevant to the business of the Company is important to achieve effective corporate governance and sustained commercial success of the Company. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, background, race, gender and other distinctions amongst Directors. These differences will be considered in determining the optimum composition of the Board and when possible should be balanced appropriately. At a minimum, the Board of the Company shall consist of at least one Woman Director. All Board appointments are made on merit, in the context of the skills, experience, independence, knowledge and integrity which the Board as a whole requires to be effective.
Appointment of Managerial Personnel, Director, KMP and Senior Management:
The Company shall appoint or re-appoint any person as its Managerial Personnel for a term not exceeding five years at a time. No re-appointment shall be made earlier than one year before the expiry of term.
The Company shall not appoint or continue the employment of any person as Managing Director, Whole-time Director or Manager who is below the age of twenty-one years or has attained the age of seventy years. However appointment of a person who has attained the age of seventy years may be made by passing a special resolution and complying with the provisions of the Companies Act, read with the relevant Rules Made thereunder.
An Independent Director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the Company and disclosure of such appointment in the Board's report.
Further no Independent Director shall hold office for more than two consecutive terms, but such independent director shall be eligible for appointment after the expiration of three years of ceasing to become an Independent Director.
Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly.
At the time of appointment of Independent Director, it should be ensured that number of Boards on which such Independent Director serves is restricted to seven listed companies as an Independent Director (including MSP Steel) and three listed companies (Including MSP Steel) as an Independent Director in case such person is serving as a Whole-time Director of a listed company.
However the appointment of Managing director, Whole-time Director, manager or an Independent Director in addition to the above criteria shall also comply the provisions of the Companies Act, read with relevant Rules made thereunder, the Listing Agreement including any statutory modification or re-enactment made or to be made in the future.
Remuneration to the Managing Director, Whole-time Director and Manager
The terms and conditions of appointment and remuneration payable to a Managing Director and Whole-time Director(s) shall be recommended by the Nomination and Remuneration Committee to the Board for its approval which shall be subject to approval by shareholders at the next general meeting of the Company and by the Central Government in case such appointment is at variance to the conditions specified in Schedule V to the Companies Act, .
The Executive Directors may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the Company or partly by one way and partly by the other.
The remuneration and commission to be paid to the Whole-time Director/ Managing Director/ Manager/Executive Chairman shall be in accordance with the percentage/slabs/conditions laid down in the Articles of Association of the Company and as per the provisions of the Companies Act, , and the Rules made thereunder.
Where any insurance is taken by the Company on behalf of its Whole-time Director, Chief Executive Officer, Chief Financial Officer, the Company Secretary and any other employees for indemnifying them against any liability, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel. Provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration.
Any Director who is in receipt of any commission from the Company and who is a Managing or Whole-time Director of the Company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the Company in the Board's report.
Annual Increments to the Managing/ Whole-time Director(s) shall be within the slabs approved by the Shareholders. Increments shall be decided by the Nomination and Remuneration Committee at times it desires to do so but preferably on an annual basis.
However any Director who is in receipt of any commission from the company and who is a Managing or Whole-time Director of the Company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the Company in the Board's report.
If in any financial year a Company has no profits or inadequate profits, the Company shall not pay to its Directors including Managing Director or Whole-time Director or Manager, by way of remuneration any sum exclusive of any fees payable to Directors under sub-section 5 of section 197 of the Act except in accordance with the provisions of Schedule V of the Act and the approval of the Central Government, wherever required, in such manner as may be provided therein.
Remuneration of Non-Executive Directors
A Non- executive Director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board. Provided that the amount of such fees shall not exceed rupees one lacs per meeting of the Board or Committee thereof.
An Independent Director shall not be entitled to any stock option and may receive remuneration by way of fee in conformity with the provisions of the Act, reimbursement of expenses for participation in the Board and other meetings and profit related commission as may be approved by the shareholders as recommended by the Committee and the Board.
Evaluation Process
The Committee shall carry out evaluation of performance of every Managerial Personnel, Director, KMP and Senior Management on annual basis.
The Committee will be responsible for the distribution of the evaluation forms on annual basis. The Committee will conduct or oversee the ministerial duties to prepare, send, collect and tabulate the evaluation form and schedule conference calls or necessary meetings to facilitate the evaluation. The Chairperson of the Committee may delegate this responsibility to the Company Secretary
Further the Committee shall formulate and recommend to the Board a policy for a performance evaluation policy to evaluate the performance of the Independent Directors and Non Independent Directors of the Company.
Removal
The Committee may recommend, to the Board with reasons recorded in writing, removal of a Managerial Personnel, Director, KMP or Senior Management subject to the provisions of Companies Act, , and all other applicable Acts, Rules and Regulations, if any.
The Board of Directors on its own and / or as per the recommendations of Nomination and Remuneration Committee can amend this Policy, as and when deemed fit.
In line with the requirement of Clause 49 of the Listing Agreement with the Stock Exchanges, The Board of Directors of the Company has adopted this policy to regulate the Related Party Transaction as defined below and to ensure the proper approval and reporting of transactions between the Company and its Related Parties. The Audit Committee will review and may amend this policy from time to time. The said policy will be effective from 1st October, .
Except with the consent of the Board of Directors given by a resolution at a meeting of the Board and subject to such conditions as may be prescribed, no company shall enter into any contract or arrangement with a related party. However all the related party transactions must be reported to the Audit Committee and approved or referred for approval by the Audit Committee based on this policy.
Each Director and Key Managerial Personnel is responsible for providing notice to the Management regarding persons and entities to be considered as `Related Parties` by virtue of his/her being Director/ KMP in the company. Such Notice shall be provided to the company at the time of appointment and also at the time of first board meeting in every financial year and whenever there is any change in the disclosures already made.
As per the policy the Management will identify related party transactions or the potential related party transactions on the basis of the notices received from the concerned persons and provide notice to the Audit Committee/ Board. Board/Audit Committee will determine whether the transaction does, in fact, constitute a Related Party Transaction requiring compliance with this policy.
All Related Party Transactions proposed to be transacted should be approved/ratified by the Audit Committee of the Board. However, the Audit Committee may grant omnibus approval for Related Party Transactions proposed to be entered into by the company subject to the following conditions:
In the event any contract or arrangement with a related party is not in the ordinary course of business or at arm's length, the Company shall comply with the provisions of the Companies Act, and the Rules framed thereunder and obtain approval of the Board or its shareholders, as applicable, for such contract or arrangement.
In addition to the above, the following kinds of transactions with related parties are also placed before the Board for its approval:
' Transactions in respect of which the Audit Committee is unable to determine whether or not they are in the ordinary course of business and/or at arm's length basis and decides to refer the same to the Board for approval;
' Transactions which are in the ordinary course of business and at arm's length basis, but which in Audit Committee's view requires Board approval.
No contract or arrangement or transactions, as mentioned below in line with sec 188 of the Companies Act, read with relevant Rules framed there under, with the related party shall be entered into except with the prior approval of the company by a special resolution:
i) a company having a paid-up share capital of ten crore rupees or more shall not enter into a contract or arrangement with any related party; or
ii) a company shall not enter into a transaction or transactions, where the transaction or transactions to be entered into '
sale, purchase or supply of any goods or materials directly or through appointment of agents exceeding twenty five percent. of the annual turnover as mentioned in clause (a) and clause (e) respectively of sub- section (1) of section 188;
selling or otherwise disposing of, or buying, property of any kind directly or through appointment of agents exceeding ten percent. of net worth as mentioned in clause (b) and clause (e) respectively of sub-section (1) of section 188;
leasing of property of any kind exceeding ten percent. of the net worth or exceeding ten percent. of turnover as mentioned in clause (c) of sub-section (1) of section 188;
availing or rendering of any services directly or through appointment of agents exceeding ten percent. of the net worth as mentioned in clause (d) and clause (e) of sub-section (1) of section 188;
2. All the Material Related Party Transactions (other than transactions entered into by the company with its wholly owned subsidiary, whose accounts are consolidated with the company and placed before the shareholders at the general meeting for approval) shall require prior approval of the shareholders through special resolution and the Related Parties shall abstain from voting on such resolution.
The particulars of contracts or arrangements with related parties referred to in Section 188 (1) of the Companies Act, , shall be disclosed in the Director's Report for the financial years commencing on or after 1st April, .
All material RPT'S that are entered into w.e.f. 1st October, is to be disclosed quarterly along with the Compliance Report on Corporate Governance as per the requirement of Clause 49 of the Listing Agreement.
The Company reserves the right to amend or modify this policy in whole or in part at any point of time.
In the event of a RPT that has not been granted PRIOR approval or ratified under this policy and the Company becomes aware of it , than such transaction shall be placed before the Committee or Board or shareholders, as promptly as practical, in accordance with this policy for review and ratification.
The Committee or the Board or the shareholders shall consider all the relevant facts and circumstances in relation to such transaction and shall after evaluation of all the options revise or terminate such transaction and the Company shall take action as deemed appropriate by the Committee.
Pursuant to section 134 and 177 of the Companies Act, ('Act') and rules made thereunder and Regulation 21 of the SEBI, (Listing Obligations and Disclosure Requirements), Regulation , the Company shall lay down policy and procedures to inform Board members about the risk assessment and risk management. The procedures shall be periodically reviewed to ensure that executive management controls risk through means of a properly defined framework.
To ensure adequate systems of risk management of the Company i.e. to identify, assess, mitigate minimize such expenses to the extent possible and to assure business growth financial stability.
MSP Steel has set up its manufacturing plant at Raigarh, Chhattisgarh. The Company has manufacturing facilities for production of Pellet, MS Billets, TMT Bars ,Sponge Iron , Structural Products and Power. Raw material is locally procured and also imported.
In today's challenging and competitive environment, strategies for mitigating inherent risks in accomplishing the growth plans of the Company are imperative.
Risks are analyzed, considering the likelihood impact, as a basis for determining how they should be managed. Risk Assessment consists of a detailed study of threats and resultant exposure to various risks prevailing on different areas of the Company. Key risks are identified and accordingly plan for managing the same are prepared. Company identified the following risks:-
4.1 Regulatory Risks
Regulatory risks arises from the change in Govt. policies, law relating to industry, business, foreign policies and commitments to other countries etc. Our preparation of financial statements in conformity with Indian GAAP and in accordance with the Indian Accounting Standards issued by ICAI, requires us to make true and fair estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenue and expenses during the reporting period.
4.2 Business Risks
Business risks as assessed in our business has been further classified as under:-
4.2.1 Financial Risks
The market volatility on prices of raw material, finished products, foreign exchange fluctuations impact the financials of our industry and the business.
The likely impact of any political disturbance or instability within the country or in neighboring countries impact economy and consequently business and industry. The geo-political and economic conditions anywhere in the world are also risks the business strategies frequently.
Legal risk is the risk in which the Company is exposed to legal action for non-compliance of statutory obligations as per various applicable laws and rules. The Company is governed by various laws and the Company has to undertake its business within four walls of law, where the Company is exposed to legal risk exposure which entail stringent penalties and in some cases criminal liabilities.
Company has foreign exchange exposure both on account of import of raw material and capital goods and also exports. Currently export are mainly to Nepal and few other countries and mainly INR denominated. Normally trade is done in USD denomination. All these currencies are subject to many factors and varies in value daily and impact the demand of foreign currencies for transactions. Local currency are also affected materially. Foreign Exchange Fluctuation Risks directly impact the business. A close watch is therefore needed to plan the business of the Company.
4.2.5 Technological Obsolesce Risks
In the world of competition technology plays important roles for business development and growth. Technological obsolesce risks the replacement of existing plant and machinery, which may cost heavily and impact profitability.
Steel industry is a cyclical industry where rate of labour turnover is higher which impact the efficiency of the human resource. Human Resource risk generally impact the productivity and quality of the products. Thus Company retain the experienced and qualified workforce to reduce the labour turnover.
In the management of Risk the probability of risk assumption is estimated with available data and market information and appropriate risk treatments is worked out in the following areas:
5.1 Economic environment and Market Conditions
Strategically, we seek to continuously expand the customer base to maximize the potential sales volumes and at the same time securing additional volumes from existing customers on the basis of our record of satisfactory performance in our earlier dealings. The efforts to enhance quality of products and upgrading their performance parameters are aimed at deriving optimum value from the existing customer base and targeting a larger customer profile. Historically, the strength of our relationships has resulted in significant recurring revenue from existing customers.
To counter pricing pressures caused by strong competition, the Company has been increasing operational efficiency and continued to take initiatives to move up the quality control scale besides cost reduction and cost control initiatives.
5.2 Political Environment
The business of the Company being spread all our the globe, the geo-political and economic conditions anywhere in the world are also frequently discussed at senior management level with the help of media, agents and embassy reports.
We believe that we are strongly positioned in our designated market commanding a premium for our product. Additionally, efforts to bring down the cost of production are being implemented with a optimum workforce backed by high-end production technology, establishment of captive power generation. Constant monitoring and up gradation of the technology along with re-alignment of processes to bring down production cost help us to thwart competition.
5.4 Revenue Concentration
We have adopted prudent norms based on which we monitor and prevent undesirable concentration in a geography, industry, or customer. Concentration of revenue from any particular segment of industry is sought to be minimized over the long term by careful extension into other activities, particularly in areas the company has some basic advantage such as availability of land, technical or manpower resources. Our revenues are spread across dealers/Retailers/Projects across different Geo graphics and end user,no particulars segments or customer not more than 15% of our annual revenue.
The cost of revenues has a very high degree of inflationary certainty. To De-risk, the Company carefully decide for procurement of long delivery and strategic raw materials and stores and those amenable to just-in-time inventories including contacts with exporters of coal and other material.
At organizational level, cost optimization and cost reduction initiatives are implemented and are closely monitored. The Company controls costs through continuous review against actual performance with the key objective of aligning them to the financial model.
Foreign exchange risk arises mainly in the form of (a) Import of raw materials and capital equipment (b) Export of Finished Goods and (c) ECB/FCNR and trade related borrowing. To counter import and export related issue we undertake hedging of currency as soon as the commercial of the transaction are finalized. For borrowing related foreign exchange we undertake active hedging in consultation with our lenders.
The company strongly believes that technological obsolescence is a practical reality. Technological obsolescence is evaluated on a continual basis and the necessary investments are made to bring in the best of the prevailing technology.
The company's policies also include a favorable dispensation for replacement of Machinery and Equipment on a constant basis to take advantage of such technological movements. All the manufacturing plants and R&D equipments are continuously updated to make them relevant as per latest standards of inspection and regulatory audits.
5.7 Financial Reporting Risks
We are committed to maintain high standards of corporate governance and public disclosure and our efforts to comply with evolving laws, regulations and standards in this regard would further help us address these issues.
Our preparation of financial statements in conformity with Indian GAAP and in accordance with the Indian Accounting Standards issued by ICAI, requires us to make true and fair estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenue and expenses during the reporting period.
We follow declared accounting policies consistently, qualify and disclose the effect of changes in that wherever required. Our accounting and financial reports are based on Indian Accounting Standards issued by the Institute of Chartered Accountants of India, New Delhi.
We have an experienced team of professionals, advisers who focus on evaluating the risks involved in a contract, ascertaining our responsibilities under the applicable law of the contract, restricting our liabilities under the contract, and covering the risks involved so that they can ensure adherence to all contractual commitments.
Management places and encourages its employees to place full reliance on professional guidance and opinion and discuss impact of all laws and regulations to ensure company's total compliance. Advisories and suggestions from professional agencies, legal firms and industry bodies, chambers of commerce etc. are carefully studied and acted upon where relevant.
5.9 Environment Risk
The Company has setup facility to arrest the air pollution from its coal based power plant and other operations of the plants. Extensive plantation of trees around manufacturing are undertaken for green belt development.
5.10 Industry Safety Risk
Company also takes all measures to avoid any mishap or incident during the operations of the plant.
Risk in matters of human resources are sought to be minimized and contained by following a policy of providing equal opportunity to every employee, inculcate in them a sense of belonging and commitment and also effectively train them in spheres other than their own specialization.
Employees are encouraged to make suggestions on innovations, cost saving procedures, free exchange of other positive ideas relating to manufacturing procedures etc. It is believed that a satisfied and committed employee will give of his best and create an atmosphere that cannot be conducive to risk exposure.
Employee-compensation is always subjected to fair appraisal systems with the participation of the employee and is consistent with job content, peer comparison and individual performance. Packages are inclusive of the proper incentives and take into account welfare measures for the employee and his family.
The Board shall be responsible for framing, implementing and monitoring the Risk Management Plans for the company.
(Pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, )
1. PREFACE
Securities and Exchange Board of India ('SEBI'), vide its Notification dated September 2, , has issued SEBI (Listing Obligations and Disclosures Requirements) Regulations, (the 'Regulations') which came into effect from December 1, . In terms of Regulation 30 read with SEBI's circular No.CIR/CFD/CMD/4/ dated September 9, , every listed entity shall make disclosures of events or information to Stock Exchange(s) which in the opinion of the Board of Directors of the listed entity are material. The listed entity is required to frame a policy for determination of materiality of events/information under Regulation 30(4)(ii) of the SEBI-LODR for the purpose of adequate, accurate, explicit and timely disclosures of the same to the Stock Exchanges.
Accordingly, the Board of Directors of the Company i.e. MSP Steel (MSPL) has approved and adopted the following Policy for Determination of Materiality of Events/Information to be disclosed to the Stock Exchange(s) from time to time, in its meeting held on 19th January, .
2. EFFECTIVE DATE
The Policy shall be effective from 19th January, .
3. OBJECTIVE OF THE POLICY
MSPL, being a listed entity is obligated to comply with the disclosure requirements under the Regulation 30 of the SEBI-LODR. The primary objective of the Policy is to determine the events or information which in the opinion of the Board of Directors is material, considering the criteria mentioned in the Regulation 30(4)(i) of the SEBI-LODR and needs to be disclosed to the Stock Exchanges in the timeframe provided therein.
The Policy intends to provide guidance to the Board of Directors, Key Managerial Personnel and other employees of the Company in understanding and making decisions about disclosure of such events or information which may materially affect the performance/operation of the Company and thereby the prices of the listed securities of the Company. Further, the Policy is designed for systematic identification, categorization, review and disclosure to the stock exchanges and hosting on the Company's website and regular updation of the events/ information which may have material bearing on the performance /operation of the Company and as a result, affect the market prices of the listed securities of the Company.
Words/Expressions used but not defined in the Policy shall have the same meaning as assigned to them in the SEBI-LODR or any modification thereto.
4. DEFINITIONS
'Audit Committee' means the Audit Committee as constituted from time to time by the Board of Directors of the Company.
'Board of Directors' means the Board of Directors of MSP Steel (MSPL) as constituted from time to time.
'Company' means MSP Steel (MSPL).
'Key Managerial Personnel'(KMP) means and includes Managing Director, Whole-time Directors Chief Financial officer and Company Secretary of the Company, in accordance with Section 2(51) of the Companies Act, who may be authorized (jointly and/or severally) to determine the material events or information for disclosing to Stock Exchanges from time to time and for making disclosures to Stock Exchanges under the Regulation 30 of SEBI-LODR.
'Policy' shall mean this Policy for determining materiality of events/information for disclosure to Stock Exchanges and as amended from time to time.
'SEBI-LODR' means the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, as amended from time to time.
'Materiality of events' means all material events as specified in Category 'C of Clause 6 of this Policy as determined by the Company following the (Listing Obligations and Disclosure Requirements) Regulations, .
5. PERSONS RESPONSIBLE FOR DISCLOSURE
Pursuant to Regulation 30(5), the Board of Directors have authorized following Key Managerial Personnel of the Company being Managing Director, the Chief Financial Officer and the Company Secretary ('Authorised Persons'), for the purpose of determining materiality of an event or information and making disclosure to stock exchanges.
The Authorised Persons shall have the following powers and responsibilities for determining material events or information within the Company:
1. To review and assess the materiality of an event that may qualify as 'material' and may require disclosure, on the basis of facts and circumstances prevailing at that point in time.
2. To make required disclosures within the stipulated time of actual occurrence of an event or information, after ascertaining facts.
3. To disclose material events or information with respect to the subsidiaries of the Company.
6. CATEGORIES FOR EVENTS/ INFORMATION
Category-A
In terms of Regulation 30(2) (Sub Para 4 of Para A of Part A of Schedule-III) of SEBI-LODR, the following events/information shall be disclosed within 30 minutes of the conclusion of the Meeting of the Board of Directors where the relevant event/information is considered by the Board:
viii.financial results;
ix. decisiononvoluntarydelistingbytheCompanyfromstockexchange(s).
Category-B
In terms of Regulation 30(2) (Para A of Part A of Schedule-III) of SEBI-LODR, the following events/information shall be disclosed not later than 24 hours of the occurrence of the event without any application of the guidelines for materiality specified herein in accordance with sub-regulation (4) (i) of the Regulation 30:
(i.) Acquisition(s) (including agreement to acquire), Scheme of Arrangement (amalgamation/ merger/ demerger/restructuring), or sale or disposal of any unit(s), division(s) or subsidiary of the Company or any other restructuring.
For the purpose of the above sub-para, the word 'acquisition' shall mean-
(ii) Issuance or forfeiture of securities, split or consolidation of shares, buyback of securities, any restriction on transferability of securities or alteration in terms or structure of existing securities including forfeiture, reissue of forfeited securities, alteration of calls, redemption of securities, etc.
(iii) Revision in Rating(s).
(iv) Agreements (viz. shareholder agreement(s), joint venture agreement(s), family settlement agreement(s) (to the extent that it impacts management and control of the Company), agreement(s)/treaty(ies)/contract(s) with media companies) which are binding and not in normal course of business, revision(s) or amendment(s) and termination(s) thereof.
(v) Fraud/defaults by promoter or key managerial personnel or by the Company or arrest of key managerial personnel or promoter.
(vi) Change in directors, key managerial personnel (Managing Director, Chief Executive Officer, Chief Financial Officer, Company Secretary, etc.), Auditor and Compliance Officer.
(vii) Appointment or discontinuation of share transfer agent.
(viii) Corporate debt restructuring.
(ix) One time settlement with a bank.
(x) Reference to BIFR and winding-up petition filed by any party /creditors.
(xi) Issuance of Notices, call letters, resolutions and circulars sent to shareholders, debenture holders or creditors or any class of them or advertised in the media by the Company.
(xii) Proceedings of Annual and extraordinary general meetings of the Company.
(xiii) Amendments to memorandum and articles of association of the Company, in brief.
(xiv) Schedule of Analyst or institutional investor meet and presentations on financial results made by the Company to analysts or institutional investors;
Category-C
In terms of Regulation 30(3) (Para B of Part A of Schedule-III) of SEBI-LODR, the following events/information shall be disclosed not later than 24 hours of the occurrence of the event subject to the Materiality of Event to be determined by the Company based on the application of the criteria for Materiality as specified in para 7 below in accordance with sub-regulation (4)(i) of the Regulation 30:
viii.Litigation(s) / dispute(s) / regulatory action(s) with impact.
Category- D
In terms of Para C of Part A of Schedule-III of SEBI-LODR any other information/event viz. major development that is likely to affect business shall be disclosed not later than 24 hours of the occurrence of the event e.g. emergence of new technologies; expiry of patents; and any change of accounting policy that may have a significant impact on the accounts, etc. and brief details thereof and any other information which is exclusively known to the Company which may be necessary to enable the holders of securities of the Company to appraise its position and to avoid the establishment of a false market in such securities.
Further in terms of Regulation 30(12) of the SEBI-LODR in case where an event occurs or any information is available with the Company, which has not been indicated above in category A or category B or category C but which may have material effect on it, the Company is required to make adequate disclosures in regard thereof.
Category ' E
The Board of Directors/Competent Authority shall without prejudice to the generality of provisions specified above, may disclose any other event/information within the prescribed time as required by the SEBI.
7. Criteria For Determining Materiality For Disclosure Of Events/ Information Listed Under Category C Above.
I. The following criteria shall be followed for determination of Materiality of events/information listed under Category 'C' above:
II. In addition to the above, the Board of Directors/Competent Authority (as defined herein below) may consider the impact on the following parameters for determination of materiality of an event:
(a) Cash flow position
(b) Credit worthiness
(c) Volume and scope of operations (d) Revenue
(e) Employee retention and attrition
(f) Workersagitationincludingcasesofstrikes,lockouts,etc.
(g) Factors affecting the market price or the volume of securities listed on stock exchange(s). (h) Parameters which may affect the goodwill of the Company.
However, the limit, if any, for each of the above mentioned parameters may be decided by the Board of Directors/Competent Authority.
8. PROCEDURE FOR DISCLOSURE
9. CONTACT DETAILS OF COMPETENT AUTHORITY
The Managing Director, CFO & Company Secretary are designated as Competent Authority by the Board of Directors, who are jointly and/or severally authorized on behalf of the Company to determine whether the event / information is material or not for disclosure to the Stock Exchanges in accordance with this Policy.
If you want to learn more, please visit our website Muchang.
Their contact details are as under :
Name : Mr. Saket Agrawal
Designation : Managing Director
Official Address: 16/S Block-A, New Alipore, Kolkata-700 053
' This address is being protected from spambots. You need JavaScript enabled to view it. ' 033-
Name : Mr. Kamal Kumar Jain
Designation : Chief Financial Officer
Official Address: 16/S Block-A, New Alipore, Kolkata-700 053. ' This address is being protected from spambots. You need JavaScript enabled to view it.
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Name : Ms. Shreya Kar
Designation : Company Secretary
Official Address: 16/S Block-A, New Alipore, Kolkata-700 053. ' This address is being protected from spambots. You need JavaScript enabled to view it.
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10. DELAY IN DISCLOSURES/UPDATION/REPLIES TO THE STOCK EXCHANGE(S)
11. UPDATION OF COMPANY'S WEBSITE AND DISCLOSURES TO STOCK EXCHANGE(S)
The Company shall update all disclosures of events made under the Policy to the Stock Exchange(s) on its website and such disclosures shall be continued to be hosted on the website of the Company for a minimum period of five years and thereafter as per the Archival Policy of the Company, as disclosed on the website.
12. DISCLOSURE OF EVENTS / INFORMATION ON SUBSIDIARIES
The Company shall disclose such events/information about the subsidiary companies which are considered material in nature for the Company by the Board/ Competent Authority.
13. COMPLIANCE OFFICER
The Company Secretary shall be the Compliance Officer for the purpose of complying with the provisions of the SEBI-LODR and shall ensure overall compliance of this Policy, including making disclosure to the Stock Exchange(s) of event/ information as approved by the Board of Directors/ Competent Authority.
14. POLICY REVIEW
In case of any subsequent changes in the provisions of the Regulations or any other regulations which makes any of the Clauses/provisions in the Policy inconsistent with the Regulations, the provisions of the Regulations would prevail over the Policy and the Clauses/provisions in the Policy would be deemed to be modified accordingly. The Board also, at its discretion, has the power to review and revise the Policy
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'Key Managerial Personnel'(KMP) means and includes Managing Director, Whole-time Directors Chief Financial officer and Company Secretary of the Company, in accordance with Section 2(51) of the Companies Act, who may be authorized (jointly and/or severally) to determine the material events or information for disclosing to Stock Exchanges from time to time and for making disclosures to Stock Exchanges under the Regulation 30 of SEBI-LODR.
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Third-party disclosure
We do not sell, trade, or otherwise transfer to outside parties your Personally Identifiable Information unless we provide users with advance notice. This does not include website hosting partners and other parties who assist us in operating our website, conducting our business, or serving our users, so long as those parties agree to keep this information confidential. We may also release information when it's release is appropriate to comply with the law, enforce our site policies, or protect ours or others' rights, property or safety.
However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.
Third-party links
Occasionally, at our discretion, we may include or offer third-party products or services on our website. These third-party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.
Google's advertising requirements can be summed up by Google's Advertising Principles. They are put in place to provide a positive experience for users. https://support.google.com/adwordspolicy/answer/?hl=en
We have not enabled Google AdSense on our site but we may do so in the future.
California Online Privacy Protection Act
CalOPPA is the first state law in the nation to require commercial websites and online services to post a privacy policy. The law's reach stretches well beyond California to require any person or company in the United States (and conceivably the world) that operates websites collecting Personally Identifiable Information from California consumers to post a conspicuous privacy policy on its website stating exactly the information being collected and those individuals or companies with whom it is being shared. ' See more at: http://consumercal.org/california-online-privacy-protection-act-caloppa/#sthash.0FdRbT51.dpuf
According to CalOPPA, we agree to the following:
Users can visit our site anonymously.
Once this privacy policy is created, we will add a link to it on our home page or as a minimum, on the first significant page after entering our website.
Our Privacy Policy link includes the word 'Privacy' and can easily be found on the page specified above.
You will be notified of any Privacy Policy changes:
Can change your personal information:
How does our site handle Do Not Track signals?
We honor Do Not Track signals and Do Not Track, plant cookies, or use advertising when a Do Not Track (DNT) browser mechanism is in place.
Does our site allow third-party behavioral tracking?
It's also important to note that we do not allow third-party behavioral tracking
COPPA (Children Online Privacy Protection Act)
When it comes to the collection of personal information from children under the age of 13 years old, the Children's Online Privacy Protection Act (COPPA) puts parents in control. The Federal Trade Commission, United States' consumer protection agency, enforces the COPPA Rule, which spells out what operators of websites and online services must do to protect children's privacy and safety online.
We do not specifically market to children under the age of 13 years old.
Fair Information Practices
The Fair Information Practices Principles form the backbone of privacy law in the United States and the concepts they include have played a significant role in the development of data protection laws around the globe. Understanding the Fair Information Practice Principles and how they should be implemented is critical to comply with the various privacy laws that protect personal information.
In order to be in line with Fair Information Practices we will take the following responsive action, should a data breach occur:
We will notify you via
We also agree to the Individual Redress Principle which requires that individuals have the right to legally pursue enforceable rights against data collectors and processors who fail to adhere to the law. This principle requires not only that individuals have enforceable rights against data users, but also that individuals have recourse to courts or government agencies to investigate and/or prosecute non-compliance by data processors.
CAN SPAM Act
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Contacting Us
If there are any questions regarding this privacy policy, you may contact us using the information below.
www.mspgroup.com
Address:16/S Block- A, New Alipore Kolkata-
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Last Edited on -09-13
In compliance with the requirements of Section 135 of the Companies Act, read with the Companies (Corporate Social Responsibility Policy) Rules, , MSP Steel & Power Limited ('MSPL' or 'the Company') is, inter alia, required to:
Corporate Social Responsibility (CSR) is a public spirited cause that has been well introduced by the new Companies Act . Through the CSR there is a formation of a dynamic relationship between a company on one hand and the society and environment on the other. CSR is traditionally driven by a moral obligation and philanthropic spirit. The main responsibilities of the Company towards society at large are to eradicate hunger, poverty and malnutrition; promote preventive health care and sanitation and making available safe drinking water, promoting gender equality and empowering women.
1. Company understands the need of promoting social well being of the weaker section of the society. As a part of initiative under Corporate Social Responsibility the Company has undertaken various projects to promote health, growth development and education in the rural areas.
2. The Company completely endorses reliability. It is committed to conduct business in a true, fair and ethical manner and takes up the responsibility to create a good impact in the society it
belongs.
3. The Company is committed towards improving the quality of lives of people in the communities in which it operates because, the society is an essential stakeholder and the purpose of its existence. The Company believes that giving back to the society through CSR activities is its moral duty.
3. The Company aims to fulfill the requirements laid down under the Companies Act, and act diligently to comply with all its Rules and Regulations on CSR.
1. The Company's CSR Policy has been developed in conformity with the provisions of Section 135
of the Companies Act, (referred to as the Act in this Policy) and in accordance with the CSR
Rules (hereby referred to as the Rules) notified by the Ministry of Corporate Affairs, Government
of India.
2. This Policy shall apply to all CSR initiatives and activities taken up at the various locations in India, preferably in the vicinity where the Company carries out its business operations and for the benefits of different segments of the society, specifically the deprived and under'privileged.
To this extent, the Company will support or undertake measures by established and reputed agencies and Non-Government Organisations, Central and State Governments and other agencies or the Company itself, for:
While the Company pledges to encourage its employees towards participation in varied CSR activities that the Company undertakes, activities undertaken in the normal course of business of the Company or only for benefit of the employees and their families shall not qualify as CSR under this Policy, except as may be permissible under applicable laws. In this regard, activities benefitting employees of the Company as defined in clause (k) of Section 2 of the Code on Wages shall also not be considered as CSR under this Policy. However, if employees and their families get benefits by an activity which is largely meant for the outside community or society, then such activity, if otherwise qualified, will count as a CSR activity. It is further clarified that the Company shall also not undertake any activity in fulfilment of any other statutory obligations under any law in force in India, as a CSR activity.
The composition of the CSR Committee, the CSR Policy and CSR Projects approved by the Board of Directors shall be disclosed on the website of the Company for public access. A summary of the impact assessment report for the CSR related project undertaken by the Company in each Financial Year shall also be provided in the Company's website.
A CSR Committee comprising of 3 (three) or more directors out of which at least 1 (one) director will be an independent director who shall work in coordination with directions given by the Board of Directors of the Company. Such CSR Committee may be reconstituted from time to time as per the requirement of applicable laws. Role of the CSR Committee shall include inter alia the following:
The Company shall ensure that its CSR Committee will oversee the implementation of the various CSR activities and projects undertaken by the Company, in compliance with the provisions of Section 135 of the Companies Act and the rules framed thereunder.
The Members of the CSR Committee are comprises of the following:
a. Mr. Kapil Deo Pandey - Chairman
b. Mr. Saket Agrawal - Member
c. Mr. Manish Agrawal ' Member
The board of directors of the Company shall:
Every entity as covered above, who intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar (or such other form or document as may be required), for projects or programmes approved, with effect from 1st April .
The Company may engage international organisations for designing, monitoring and evaluation of the CSR projects or programmes as per its CSR policy as well as for capacity building of their own personnel for CSR. The Company may also collaborate with other companies for undertaking projects or programmes or CSR activities in such manner as prescribed under the law. The Board shall satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it. The Chief Financial Officer of the Company shall certify to this effect.
Collaborative partnerships shall be formed with the internal as well as external stakeholders which shall include the Government, the village panchayats, NGOs, the District Authorities, international organisations and other likeminded stakeholders. Company may join hands with external experts and organizations with an established track record who have done work or are capable of doing work in the areas identified by the Company as CSR initiatives.
The CSR Committee shall be responsible for formulating and recommending a CSR annual action plan, which shall include:
In case of any doubt with regard to any provision or interpretation of the policy or in relation to any matter not covered herein, a reference shall be made to the CSR Committee. In all such matters, the interpretation and decision of the Committee shall be final. Any or all provisions of the CSR Policy would be subject to revision/amendment in accordance with the guidelines on the subject as may be issued from Government, from time to time. The Company is committed to continuously reviewing and updating the policies and procedures. Therefore, this policy is subject to modification.
The Board of Directors of the Company reserves the right to modify, add, or amend any of these Policy Rules/Guidelines from time to time, as it may think fit, based on the recommendation of the CSR Committee. Any changes/ modifications to the CSR Policy shall be immediately updated on the website.
Pursuant to the Companies Act, ('the Act') and SEBI (Listing Obligations and Disclosure Requirements) Regulations, , The Remuneration Committee is to recommend to the Board a policy relating to the remuneration of the Directors, Key Management Personnel and other employees.
In terms with the provisions of the Section 178 and all other sections, if applicable, of the Companies Act, read with relevant Rules framed thereunder and SEBI (Listing Obligations and Disclosure Requirements) Regulations, MSP Steel ('The Company') on the recommendation of the Nomination & Remuneration Committee of the Board lay down a policy for:
The company thus has adopted this Nomination & Remuneration policy incorporating all above mentioned points for the Directors, Key Managerial Personnel and senior management.
This policy is applicable to:
The Company recognises and embraces the benefits of having a diverse Board of Directors and sees increasing diversity at Board level as an essential element in maintaining a competitive advantage in the complex business that it operates. It is recognised that a Board composed of appropriately qualified people with broad range of experience relevant to the business of the Company is important to achieve effective corporate governance and sustained commercial success of the Company. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, background, race, gender and other distinctions amongst Directors. These differences will be considered in determining the optimum composition of the Board and when possible should be balanced appropriately. At a minimum, the Board of the Company shall consist of at least one Woman Director. All Board appointments are made on merit, in the context of the skills, experience, independence, knowledge and integrity which the Board as a whole requires to be effective.
Appointment of Managerial Personnel, Director, KMP and Senior Management:
The Company shall appoint or re-appoint any person as its Managerial Personnel for a term not exceeding five years at a time. No re-appointment shall be made earlier than one year before the expiry of term.
The Company shall not appoint or continue the employment of any person as Managing Director, Whole-time Director or Manager who is below the age of twenty-one years or has attained the age of seventy years. However appointment of a person who has attained the age of seventy years may be made by passing a special resolution and complying with the provisions of the Companies Act, read with the relevant Rules Made thereunder.
An Independent Director shall hold office for a term up to five consecutive years on the Board of a company, but shall be eligible for reappointment on passing of a special resolution by the Company and disclosure of such appointment in the Board's report.
Further no Independent Director shall hold office for more than two consecutive terms, but such independent director shall be eligible for appointment after the expiration of three years of ceasing to become an Independent Director.
Provided that an Independent Director shall not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or indirectly.
At the time of appointment of Independent Director, it should be ensured that number of Boards on which such Independent Director serves is restricted to seven listed companies as an Independent Director (including MSP Steel) and three listed companies (Including MSP Steel) as an Independent Director in case such person is serving as a Whole-time Director of a listed company.
The Independent Director will at least be a graduate. However, more emphasis will be given on experience, expertise, track record and reputation of an Independent Director.
An Independent Director should be able to assist the Board, have a good working relationship with other Board members and contribute to the Board's working relationship with the senior management of the Company. The person should be forward looking, ethical and law abiding.
The candidate shall be evaluated based on the criteria provided under the applicable laws including Companies Act, read with Rules thereon and the Listing Regulations. In addition to applying these guidelines, the Board will consider all relevant facts and circumstances in making its determination relative to a Director's independence.
The Nomination and Remuneration Committee shall evaluate the balance of skills, knowledge and experience on the Board for every appointment of an independent director. For the purpose of identifying suitable candidates the Committee may:
a. use the services of an external agencies, if required;
b. consider candidates from a wide range of backgrounds, having due regard to diversity; and
c. consider the time commitments of the candidates.
The Company shall not enter into any contract or arrangement with a Related Party without the approval of the Audit Committee.
1. Annual Review
The director's independence for the independent director will be determined by the Board on an annual basis upon the declarations made by such Directors as per the provisions of the Companies Act, read with Rules thereon and the Listing Regulations.
2. Notice of Change of Independent Status
Each Director has an affirmative obligation to inform the Board of any change in circumstances that may put his or her independence at issue.
However the appointment of Managing director, Whole-time Director, manager or an Independent Director in addition to the above criteria shall also comply the provisions of the Companies Act, read with relevant Rules made thereunder, the Listing Regulations including any statutory modification or re-enactment made or to be made in the future.
Remuneration to the Managing Director, Whole-time Director and Manager
The terms and conditions of appointment and remuneration payable to a Managing Director and Whole-time Director(s) shall be recommended by the Nomination and Remuneration Committee to the Board for its approval which shall be subject to approval by shareholders at the next general meeting of the Company and by the Central Government in case such appointment is at variance to the conditions specified in Schedule V to the Companies Act, .
The Executive Directors may be paid remuneration either by way of a monthly payment or at a specified percentage of the net profits of the Company or partly by one way and partly by the other.
The remuneration and commission to be paid to the Whole-time Director/ Managing Director/ Manager/Executive Chairman shall be in accordance with the percentage/slabs/conditions laid down in the Articles of Association of the Company and as per the provisions of the Companies Act, , and the Rules made thereunder.
Where any insurance is taken by the Company on behalf of its Whole-time Director, Chief Executive Officer, Chief Financial Officer, the Company Secretary and any other employees for indemnifying them against any liability, the premium paid on such insurance shall not be treated as part of the remuneration payable to any such personnel. Provided that if such person is proved to be guilty, the premium paid on such insurance shall be treated as part of the remuneration.
Any Director who is in receipt of any commission from the Company and who is a Managing or Whole-time Director of the Company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the Company in the Board's report.
Annual Increments to the Managing/ Whole-time Director(s) shall be within the slabs approved by the Shareholders. Increments shall be decided by the Nomination and Remuneration Committee at times it desires to do so but preferably on an annual basis.
However any Director who is in receipt of any commission from the company and who is a Managing or Whole-time Director of the Company shall not be disqualified from receiving any remuneration or commission from any holding company or subsidiary company of such company subject to its disclosure by the Company in the Board's report.
If in any financial year a Company has no profits or inadequate profits, the Company shall not pay to its Directors including Managing Director or Whole-time Director or Manager, by way of remuneration any sum exclusive of any fees payable to Directors under sub-section 5 of section 197 of the Act except in accordance with the provisions of Schedule V of the Act and the approval of the Central Government, wherever required, in such manner as may be provided therein.
Remuneration of Non-Executive Directors
A Non- executive Director may receive remuneration by way of fee for attending meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board. Provided that the amount of such fees shall not exceed rupees one lacs per meeting of the Board or Committee thereof.
An Independent Director shall not be entitled to any stock option and may receive remuneration by way of fee in conformity with the provisions of the Act, reimbursement of expenses for participation in the Board and other meetings and profit related commission as may be approved by the shareholders as recommended by the Committee and the Board.
Evaluation Process
The Committee shall carry out evaluation of performance of every Managerial Personnel, Director, KMP and Senior Management on annual basis.
The Committee will be responsible for the distribution of the evaluation forms on annual basis. The Committee will conduct or oversee the ministerial duties to prepare, send, collect and tabulate the evaluation form and schedule conference calls or necessary meetings to facilitate the evaluation. The Chairperson of the Committee may delegate this responsibility to the Company Secretary
Further the Committee shall formulate and recommend to the Board a policy for a performance evaluation policy to evaluate the performance of the Independent Directors and Non Independent Directors of the Company.
Removal
The Committee may recommend, to the Board with reasons recorded in writing, removal of a Managerial Personnel, Director, KMP or Senior Management subject to the provisions of Companies Act, , and all other applicable Acts, Rules and Regulations, if any.
The Board of Directors on its own and / or as per the recommendations of Nomination and Remuneration Committee can amend this Policy, as and when deemed fit.
Steel pipes are long, hollow tubes that are used for a variety of purposes. They are produced by two distinct methods which result in either a welded or seamless pipe. In both methods, raw steel is first cast into a more workable starting form. It is then made into a pipe by stretching the steel out into a seamless tube or forcing the edges together and sealing them with a weld. The first methods for producing steel pipe were introduced in the early s, and they have steadily evolved into the modern processes we use today. Each year, millions of tons of steel pipe are produced. Its versatility makes it the most often used product produced by the steel industry.
Steel pipes are found in a variety of places. Since they are strong, they are used underground for transporting water and gas throughout cities and towns. They are also employed in construction to protect electrical wires. While steel pipes are strong, they can also be lightweight. This makes them perfect for use in bicycle frame manufacture. Other places they find utility is in automobiles, refrigeration units, heating and plumbing systems, flagpoles, street lamps, and medicine to name a few.
People have used pipes for thousands of years. Perhaps the first use was by ancient agriculturalists who diverted water from streams and rivers into their fields. Archeological evidence suggests that the Chinese used reed pipe for transporting water to desired locations as early as B.C. Clay tubes that were used by other ancient civilizations have been discovered. During the first century A.D. , the first lead pipes were constructed in Europe. In tropical countries, bamboo tubes were used to transport water. Colonial Americans used wood for a similar purpose. In , the first waterworks was made in Boston using hollow logs.
Development of the modern day welded steel pipe can be traced back to the early s. In , William Murdock invented a coal burning lamp system. To fit the entire city of London with these lights, Murdock joined together the barrels from discarded muskets. He used this continuous pipeline to transport the coal gas. When his lighting system proved successful a greater demand was created for long metal tubes. To produce enough tubes to meet this demand, a variety of inventors set to work on developing new pipe making processes.
An early notable method for producing metal tubes quickly and inexpensively was patented by James Russell in . In his method, tubes were created by joining together opposite edges of a flat iron strip. The metal was first heated until it was malleable. Using a drop hammer, the edges folded together and welded. The pipe was finished by passing it through a groove and rolling mill.
Russell's method was not used long because in the next year, Comelius Whitehouse developed a better method for making metal tubes. This process, called the butt-weld process is the basis for our current pipe-making procedures. In his method, thin sheets of iron were heated and drawn through a cone-shaped opening. As the metal went through the opening, its edges curled up and created a pipe shape. The two ends were welded together to finish the pipe. The first manufacturing plant to use
this process in the United States was opened in in Philadelphia.Gradually, improvements were made in the Whitehouse method. One of the most important innovations was introduced by John Moon in . He suggested the continuous process method in which a manufacturing plant could produce pipe in an unending stream. He built machinery for this specific purpose and many pipe manufacturing facilities adopted it.
While the welded tube processes were being developed, a need for seamless metal pipes arouse. Seamless pipes are those which do not have a welded seam. They were first made by drilling a hole through the center of a solid cylinder. This method was developed during the late s. These types of pipes were perfect for bicycle frames because they have thin walls, are lightweight but are strong. In , the first plant to produce seamless tubes was built. As bicycle manufacturing gave way to auto manufacturing, seamless tubes were still needed for gasoline and oil lines. This demand was made even greater as larger oil deposits were found.
As early as , ironworkers could already produce seamless tubes. In one method, a hole was drilled through a solid metal, round billet. The billet was then heated and drawn through a series of dies which elongated it to form a pipe. This method was inefficient because it was difficult to drill the hole in the center. This resulted in an uneven pipe with one side being thicker than the other. In , an improved method was awarded a patent. In this process the solid billed was cast around a fireproof brick core. When it was cooled, the brick was removed leaving a hole in the middle. Since then new roller techniques have replaced these methods.
There are two types of steel pipe, one is seamless and another has a single welded seam along its length. Both have different uses. Seamless tubes are typically more light weight, and have thinner walls. They are used for bicycles and transporting liquids. Seamed tubes are heavier and more rigid. The have a better consistency and are typically straighter. They are used for things such as gas transportation, electrical conduit and plumbing. Typically, they are used in instances when the pipe is not put under a high degree of stress.
Certain pipe characteristics can be controlled during production. For example, the diameter of the pipe is often modified depending how it will be used. The diameter can range from tiny pipes used to make hypodermic needles, to large pipes used to transport gas throughout a city. The wall thickness of the pipe can also be controlled. Often the type of steel will also have an impact on pipe's the strength and flexibility. Other controllable characteristics include length, coating material, and end finish.
The primary raw material in pipe production is steel. Steel is made up of primarily iron. Other metals that may be present in the alloy include aluminum, manganese, titanium, tungsten, vanadium, and zirconium. Some finishing materials are sometimes used during production. For example, paint may be
used if the pipe is coated. Typically, a light amount of oil is applied to steel pipes at the end of the production line. This helps protect the pipe. While it is not actually a part of the finished product, sulfuric acid is used in one manufacturing step to clean the pipe.Steel pipes are made by two different processes. The overall production method for both processes involves three steps. First, raw steel is converted into a more workable form. Next, the pipe is formed on a continuous or semicontinuous production line. Finally, the pipe is cut and modified to meet the customer's needs.
A variety of measures are taken to ensure that the finished steel pipe meets specifications. For example, x-ray gauges are used to regulate the thickness of the steel. The gauges work by utilizing two x rays. One ray is directed at a steel of known thickness. The other is directed at the passing steel on the production line. If there is any variance between the two rays, the gauge will automatically trigger a resizing of the rollers to compensate.
Pipes are also inspected for defects at the end of the process. One method of testing a pipe is by using a special machine. This machine fills the pipe with water and then increases the pressure to see if it holds. Defective pipes are returned for scrap.
Pipe Characteristic Handbook. Williams Natural Gas Company Engineering Group. Pennwell Publishing. .
Kirk Othmer Encyclopedia of Chemical Technology. John Wiley & Sons. New York: .
Steel Pipe: A Guide for Design and Installation. American Water Works Association. .
' Perry Romanowski
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