MIRA INFORM REPORT

Report Date :

07.08.2007

IDENTIFICATION DETAILS

Name :	TATA STEEL LIMITED
Formerly Known As :	THE TATA IRON AND STEEL COMPANY LIMITED
Registered Office :	Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	20.08.1907
Com. Reg. No.:	11-260
TAN No.: [Tax Deduction & Collection Account No.]	MUMT00249E
PAN No.: [Permanent Account No.]	AAACT2803M
Legal Form :	Public Limited Liability Company The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturers of saleable steel, ferro manganese, charge chrome, welded steel tubes, cold rolled strips, seamless tubes, carbon and alloy steel bearing rings, annular forgings and flanges, metallurgical machinery, ammonium sulphate, ordinary cement, fortland blast furnace slag cement, alloy steel ball bearing rings and bearings.

RATING & COMMENTS

MIRA’s Rating :

Aa

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 55799600
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company of TATA Group, the country's premier industrial house. Available information indicates high financial responsibility of the company. Financial position is satisfactory. Payments are usually correct and as per commitments. The Company can be considered good for any normal business dealings.

LOCATIONS

Registered Office :	Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001, Maharashtra, India
Tel. No.:	91-22-56658282
Fax No.:	91-22-56658113 / 56658119
E-Mail :	tatasteelho@tata.com
Website :	1. http://www.tata.com/tatasteel 2. http://www.tatasteel.com
Factory 1 :	· Jamshedpur, Jharkhand - Tubes Division · Khargapur, West Bengal - Bearings Division · Joda, Orissa - Ferro Manganese Plant · Tarapur, Maharashtra; Navsari, Sisodra, Gujarat - Cold Rolling Complex (West) · Bamnipal, Orissa - Charge Chrome Plant · States of Jharkhand, Orissa and Karnataka - Mines, Collieries & Quarries · Borivali, Mumbai; Tarapur – Wire Division
Branches :	43, Chowringhee Road, Kolkata – 700 071, West Bengal
Tel. No.:	91-657-2431024
Fax No.:	91-657-2431818

DIRECTORS

Name :	Mr. Ratan N. Tata
Designation :	Chairman
Name :	Mr. B. Muthuraman
Designation :	Managing Director
Name :	Mr. Nusli N. Wadia
Designation :	Director
Name :	Mr. S. M. Palia
Designation :	Director
Name :	Mr. P. K. Kaul
Designation :	Director – Nominee [IDBI]
Name :	Mr. Suresh Krishna
Designation :	Director
Name :	Mr. Kumar Mangalam Birla
Designation :	Director
Name :	Mr. Ishaat Hussain
Designation :	Director
Name :	Dr. Jamshed J. Irani
Designation :	Director
Name :	Mr. B. Jitender
Designation :	Director
Name :	Dr. T. Mukherjee
Designation :	Deputy Managing Director
Name :	Mr. A. N. Singh
Designation :	Director
Name :	Mr. Subodh Bhargava
Designation :	Additional Director
Name :	Mr. Philippe Varin
Designation :	Director
Name :	Mr. Jacques Schraven
Designation :	Director
Name :	Mr. Anthony Hayward
Designation :	Director

KEY EXECUTIVES

Name :	Mr. J C Bham
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares	Percentage of Holding
Individuals	119365229	32.46%
Unit Trust of India	9535395	2.59%
Life Insurance Corporation of India	49402824	13.43%
Government and other public financial institutions	25046145	6.82%
Tata Group Companies	97133796	26.41%
Companies	21510823	5.85%
Nationalised banks, mutual funds and trusts	28258644	7.68%
Foreign institutional investors	17519045	4.76%

BUSINESS DETAILS

Line of Business :

Manufacturers of saleable steel, ferro manganese, charge chrome, welded steel tubes, cold rolled strips, seamless tubes, carbon and alloy steel bearing rings, annular forgings and flanges, metallurgical machinery, ammonium sulphate, ordinary cement, fortland blast furnace slag cement, alloy steel ball bearing rings and bearings

GENERAL INFORMATION

No. of Employees :	38000
Bankers :	· State Bank of India, Madame came Road, Mumbai – 400 021 · Central Bank of India, Madras Stock Exchange building, 11, 2^nd Line Beach, Chennai – 600 001 · Standard Chartered Bank, 4,Netaji Subhas Road, Kolkata - 700001 · Industrial Development Bank of India · Citibank International p.l.c.
Auditors :
Name:	· F. Ferguson & Company Chartered Accountants · S. B. Billimoria & Company Chartered Accountants
Associates :	· Tata Teleservices Limited · Nicco Jubilee Park Limited · Jamshedpur Injection Powder Limited · Kalinga Aquatics Limited · Adityapur Toll Bridge Limited · Tinplate Company of India Limited · TRF Limited · Tata Yodogawa Limited · Tata Sponge Iron Limited · Metaljunction.com Private Limited · Tata Metaliks Limited · Tata Ryerson Limited · Tata Construction & Projects Limited · Rujuvalika Investments Limited · Indian Steel Rolling Mills Limited · Kumardhubi Fireclay & Silica Works Limited · Kumardhubi Metal Casting & Engineering Limited · TKM Overseas Limited · TKM Transport Management Services Private Limited · Almora Magnesite Limited · Nilachal Refractories Limited · Rallis India Limited · Tata Finance Limited
Subsidiaries	· Tata Refractories Limited · The Tata Pigments Limited · Kalimati Investment Company Limited · Tata Korf Engineering Services Limited · Tata Incorporated, USA · Stewarts & Lloyds of India Limited · TM International Logistics Limited
Membership :	Confederation of Indian Industry
Parent Company :	Tata Sons Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
25,000,000	Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 2500.000 millions
440,000,000	Ordinary Shares	Rs. 10/- each	Rs. 4400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
580670000	Equity Shares	Rs.10/-each	Rs.5806.700 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		5806.700	5536.700	5536.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		133684.200	92016.300	65062.500
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		139490.900	97553.000	70599.200
LOAN FUNDS
1] Secured Loans		37589.200	21917.400	24681.800
2] Unsecured Loans		58864.100	3244.100	2715.200
TOTAL BORROWING		96453.300	25161.500	27397.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		235944.200	122714.500	97996.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		85431.200	87073.200	72395.800
Capital work-in-progress		24974.400	11577.300	18726.600
INVESTMENT		61061.800	40699.600	24326.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23329.800	21747.500	18724.000
	Sundry Debtors	6316.300	5394.000	5818.200
	Cash & Bank Balances	76813.500	2883.900	2467.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40259.500	19944.600	21606.300
Total Current Assets		146719.100	49970.000	48615.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	53892.200	45523.900	42972.400
	Provisions	30375.400	23614.400	25244.200
Total Current Liabilities		84267.600	69138.300	68216.600
Net Current Assets		62451.500	(19168.300)	(19600.900)
MISCELLANEOUS EXPENSES		2025.300	2532.700	2148.200
TOTAL		235944.200	122714.500	97996.200

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		197578.000	171402.400	158710.800
Other Income		6555.500	4611.500	5947.400
Total Income		204133.500	176013.900	2895.500
Profit/(Loss) Before Tax		62616.500	52972.800	26659.600
Provision for Taxation		20395.000	18231.200	9197.400
Profit/(Loss) After Tax		42221.500	34741.600	17462.200
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	25000.000	20906.700	19480.000
	Administrative Expenses and Selling Expenses	14915.700	13737.100	13040.500
	Raw Material Consumed	35720.600	30243.800	30204.200
	Excise Duty	35720.600	30243.800	30204.200
	Interest and Financial Expenses	2512.500	1745.100	2288.800
	Employee Cost	15989.600	13973.900	14038.400
	Power & Fuel	10278.400	8975.700	7783.000
	Depreciation & Amortization	8192.900	7751.000	6187.800
Total Expenditure		148330.300	127577.100	123226.900

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2007 1^st Quarter
Sales Turnover	41975.800
Other Income	8325.500
Total Income	50301.300
Gross Profit	21137.400
Depreciation	2112.400
Tax	5183.100
Reported PAT	12221.100

200706 Quarter 1 -----

Notes Extraordinary items includes Employee Separation Compensation Rs 545.80 million Contribution for Sports Infrastructure Rs 1500.00 million Exchange Gain/ (loss) Rs (5530.20) million EPS is Basic & Diluted Status of Investor Complaints for the quarter ended June 30, 2007 Complaints Pending at the beginning of the quarter 03 Complaints Received during the quarter 14 Complaints disposed off during the quarter 16 Complaints unresolved at the end of the quarter 01 1. The above financial results do not include the consolidated financial performance of the Company. The consolidated financial results of the Company including Corus for the quarter ended June 30, 2007 would be published by the end of August 2007. 2. The Company, pursuant to the Sale Agreement signed on April 02, 2007 has sold its Cold Rolling Mill at Sisodra, as a going concern to theis Precision Steel India Pvt Ltd (Theis), an indirect wholly owned subsidiary of Friedr Gustav Theis Kaltwalzweke GmbH, Germany at a consideration of Rs 670 million. 3. The Company had adopted Accounting Standard - 15 (revised 2005) on employee benefits with effect from April 01, 2006. consequent upon the recent guidance issued by the Institute of Chartered Accountants of India clarifying certain provisions of AS 15, the employee benefit liability as on April 01, 2006 and the amount charged to the profit and loss account during 2006-07 has been reworked. Accordingly, the excess liability as on April 01, 2006 of Rs 2001.40 million (net of deferred tax of Rs 1030.50 million) which had been adjusted to General Reserve during 2006-07 has been reversed. The profit and loss account for the current quarter ended June 30, 2007 includes a write back of Rs 172.10 million on account of the rework of the employee benefit charge debited to the profit and loss account during 2006-07. 4. 2,85,00,000 ordinary shares of Rs 10 each, at a premium of Rs 474.27 per share, have been allotted to Tata Sons Ltd on April 17, 2007 on Tata Sons Ltd having exercised the option to convert 2,85,00,000 warrants into ordinary shares of the Company. 5. Contribution for Sports Infrastructure in Exceptional items represents the contribution of Rs 1500 million towards the development of sports infrastructure for National Games in the state of Jharkhand. 6. Exchange Gain/ (loss)in Exceptional items represents a gain of Rs 6864.30 million on account of unrealized exchange differences on foreign currency borrowings and a realized loss of Rs 1334.10 million on foreign currency deposits mainly in relation to the acquisition of Corus. The net gain of Rs 5530.20 million is due to the appreciation of the Rupee against the various foreign currencies during the current quarter. 7. Figures for the previous period have been regrouped and reclassified to conform to the classification of the current period, wherever necessary. 8. The above results have been reviewed by the Audit Committee in its meeting held on July 28, 2007 and approved by the Board in its meeting held on July 30, 2007.

KEY RATIOS

PARTICULARS	31.03.2007	31.03.2006	31.03.2005
Debt Equity Ratio	0.51	0.31	0.53
Long Term Debt Equity Ratio	0.49	0.30	0.51
Current Ratio	1.24	0.71	0.65
TURNOVER RATIOS
Fixed Assets	1.26	1.20	1.24
Inventory	8.77	8.47	10.17
Debtors	33.74	30.58	25.75
Interest Cover Ratio	25.92	32.11	24.15
Operating Profit Margin (%)	37.11	36.07	38.70
Profit Before Interest and Tax Margin (%)	32.96	31.55	34.81
Cash Profit Margin (%)	25.52	24.97	25.78
Adjusted Net Profit Margin (%)	21.37	20.45	21.88
Return on Capital Employed (%)	36.79	50.07	63.79
Return on Net Worth (%)	35.62	41.70	60.02

STOCK PRICES

Face Value	Rs.10.00
High	Rs.660.00
Low	Rs.653.00

LOCAL AGENCY FURTHER INFORMATION

History

Subject was incorporated in 1907. Over the Years, TISCO has diversified to manufacture, apart from saleable steel, Welded-steel tubes, cold-rolled strips, seamless tubes, carbon and alloy Steel bearing rings; alloy steel ball bearing rings, bearings, Ferro Manganese, Ferro chrome, metallurgical machinery, etc.

Its subsidiaries include Tata Refractories, Tata Pigments, Kalimati Investment, Tata Korf, Tata Incorporated, Stewarts & Lloyds of India and Tata SSL.

In 1993, TISCO commissioned two cement plants with a combined capacity of 1.78 MTPA at Sonadih, MP, and Jamshedpur, Bihar. It also commissioned a 1-mtpa hot-stripmill to produce hot-rolled coils. 

 In 1994-95, the company completed the third phase of its modernization programme whereby the installed capacity of saleable steel increased to 2.7MTPA. In Feb.'94, it successfully completed its Euro-convertible bond issue of $100 million. The company's plants at Jamshedpur, Bamnipal (Orissa) and Kharagpur was accorded the ISO 9002 certification. During 1998-99, the company's modernization Phase IV was completed. In 1999-2000, the company's cement plant was sold to Lafarge. 

 The company's Cold rolling mill was inaugurated in Apr.'00 in a world record time of 26 1/2 months. The invested capital was the lowest in the World for a mill of its kind. The second Galvanising Line - CGL 2, which targets the high-end market for galvanised CR products was commissioned inJun.'01.

In March '01, the company commissioned expansion of its bearings capacity from 15 Million to 25 million bearings. The plant for expansion was bought from Antifriction Bearings. In fiscal 00-01, Tisco acquired Tata SSL, a major player in steel wires. After prior approval Tata SSL Ltd was merged with TISCO. Pursuant to merger the shareholders of Tata SSL Ltd were allotted 12,10,003 ordinary shares of the company. 

Ferro chrome business is not a profitable business in India. Since power cost is one-fifth in Australia compared to India, TISCO plans to take its raw Materials over there and produce and sell it to the world. The Ferrochrome project at Ricards Bay, South Africa to produce 120,000 tonnes is progressing well. Since the project will be implemented as a joint venture with a local partner the project is expected to be commissioned in the year 2005. The company did a geological investigation for its Titania Project. A MoU was also signed and the feasibility study is expected to be completed in about 18 months. The company has choosed the locations in the Districts of Tirunelveli and Tuticorin. The company has chalked out a expansion programme whereby the crude steel making capacity will be increased by about 1 million tonnes. 

During 2004-05, the company has expanded the installed capacity of Welded Steel Tubes (Jamshedpur) by 27000(Tonnes) and with this expansion, the total capacity has been increased to 212000(Tonnes). The company has also launched an expansion plan to produce one MTPA of additional steel. This expansion project includes a raw material Bedding & Blending Plant, a new expansion project includes a raw material Bedding & Blending Plant, a new Sinter plant to produce 2 MTPA of sinter etc. 

During February 2005 the company has acquired the steel business of NatSteel Ltd, Singapore. NatSteel is a dominant steel producer of Singapore and owns mills in China, Thailand, Vietnam, Philippines and Australia. The Company has also formed a subsidiary company 'Hooghly Metcoke & Power Company Ltd'(HMPCL) jointly with West Bengal Industrial Development Corporation. The company holds 98% Shareholding in HMPCL. The company has sold its holding in Stewarts & Lloyds of India Ltd and consequently Stewarts & Lloyds has ceased to be a subsidiary of the company. 

During September 2005 the company has signed Memorandums of Understanding(MoUs) with the Government of Jharkhand to set up a new Greenfield steel capacity and enhancement of capacity of Jamshedpur Works. The greenfield integrated steel plant of 12 MTPA will be set up in two Phases. The project will also include the development of iron ore mines and other raw material sources including coal and logistic linkages for this plant. The expansion of Jamshedpur works from the present 5 MTPA to 10 MTPA will also be undertaken in two phases. During June 2005 the company has also signed a joint venture agreement Iranian Mines and Mining Industries Development and Renovation Organization to join them in their proposed steel-making project and mining operations in Iran. The company has signed Memorandum of Understanding with the Government of Chhattisgarh at Raipur for setting up A 5 Million tonnes per annum Greenfield integrated steel plant in the Bastar region of Chhattisgarh. 

The name of the company has been changed during October 2005 from Tata Iron & Steel Company Ltd to Tata Steel Ltd.

During 2005-2006, The company has started a program for expansion of crude steel making capacity at Jamshedpur by 1.8 mtpa. The expansion project is expected to be completed by 2008.

The increased requirement of coke would be sourced from Hooghly Met Coke & Power Company Limited, a subsidiary of the company. The coke making capacity to be set up at Haldia was also being increased from 0.8 mtpa to 1.2 mtpa along with power generating capacity from 60 MW to 90 MW. The production is expected to commence during 2007.

GREENFIELD PROJECTS:

 The Company has embarked upon setting up various greenfield projects. The project in Orissa envisages setting up an integrated steel plant of 6 mtpa capacity in two phases of 3 mtpa each at Kalinganagar. The Company has signed MoU with the Government of Chhattisgarh to set up a 5 mtpa capacity steel plant in 2 phases. The Company has also signed an MoU with Government of Jharkhand to set up a 12 mtpa steel plant in Jharkhand in 2 phases of 6 mtpa each. The above plants would be set up subject to raw materials linkage and receipt of all approvals. The Company has envisaged setting up a 2.4 mtpa steel plant in Bangladesh. The discussions are continuing with the Government of Bangladesh on various issues including supply of gas, lease of coal blocks and fiscal incentives. 

The Company is also exploring the option of setting up of a steel plant in Iran. 

OTHER PROJECTS: 

The Company has signed the Share Subscription Agreement and Joint Venture Agreement with BlueScope Steel Limited, Australia in November 2005, for manufacture of colour coated coils and pre-engineered buildings to be used in building solution business. The manufacturing facility would be set up in Jamshedpur with a production capacity of 0.250 millions tpa of zinc and aluminium coated and 0.150 millions tpa of colour coated coils. The building solution business would have manufacturing facilities at Delhi, Pune and Chennai. 

The Company is setting up a Ferro Chrome Project at Richards Bay, South Africa to produce 1.20 lakhs tpa of high carbon ferro chrome. The Company has obtained the Environment Clearance for the said project and has also acquired the land at Richards Bay. A subsidiary company in the name of 'Tata Steel KZN Pty. Ltd.' has been incorporated in South Africa. 

 In order to secure raw materials especially coal in the future, the Company has been evaluating options to acquire strategic stake in coal companies in India and overseas. Pursuant to this, the Company has entered into an agreement with the AMCI (CQ) Pty. Ltd., Australia to secure upto 20% of the coal produced by it.  

INCREASE IN AUTHORISED SHARE CAPITAL

In order to facilitate the issue of share capital in future, the authorised share capital of the Company is being increased from Rs.8500.000 millions to Rs.20000.000 millions by creation of 115,00,00,000 Ordinary shares of

Rs.10 each. 

SUBSIDIARIES

The gross revenue of the subsidiaries increased to Rs. 55453.6 millions (2004-05 : Rs.1,8829.500 millions). Profit after taxes was also higher at Rs.2327.900 millions

[2004-05 : Rs. 1202.000 millions].

PARTNERSHIP

NatSteel Asia & Tata Steel - Born to be partners! An unbeatable partnership has been forged between NatSteel Asia and Tata Steel, Asia's first and India's largest private sector steel plant.

Business:

Generic Names of Principal Products/Services of company (as per monetary terms) are as under:-

Items Code No.	Product Description
72082600	Flat Rolled Products of Non Alloy Steel of a width of 600 mm and more hot rolled coils of thickness 1.6 mm to 12 mm
73045901	Tubes/Pipes etc. of circular section with outer diameter upto 114.3 mm, not cold rolled
72091600 / 72091700	Flat Rolled Products of Non Alloy Steel of a width of 600 mm or more, cold(cold reduced), not clad, plated or coated of thickness 0.5 mm or more but less than 3 mm

The company has technical collaboration with:

· Lurgi, Germany

· Vesuvius, Italy

· Saarberg Interplan, Germany

· MDH, Germany

· Thyssen, Germany

· Davy Distington, UK

· SMS Demag, Germany

· GHH, Germany

· Posdata Company Limited, Korea

· Nachi Fujikoshi, Japan

· Morgan, USA

· CMI, Belgium

· NEDO, Japan

· Concast, Switzerland

· Paul Wurth, Luxembourg

The company is in trade terms with

· Aeicorp Private Limited

· ANK Seals Private Limited

· Ankur Engineering Works

· Associated Chemical Industries

· Atlanta Engineering Company

· B. C. Engineering Company

· BMC Metalcast Limited

· Brij Automobile & General Industries

· C M Equipments & Instruments (India) Private Limited

· Darshanlal & Company

· Duro Engineering Complex

· Electro Chemicals

· Electromag Methods

· Empire Industries

· Fibre Foils Limited

· Fouress Engineering (India) Limited

· Gajanand Udhyog

· General Engineering Company

· Globe Engineering Works

· Golchha Chemicals Industries

· Govind Engineering Works

· H. D. Enterprises

· Hydrokrimp A. C. (Private) Limited

· Indian Forging & Stamping Company

· Jolly Industries

· Leo Plasts & Synthetic Moulders

· Lubcon Universal Private Limited

· M. K. Industries

· M.S.P. India Private Limited

· Mahato & Company

· Mallabhum Polypacks (Private) Limited

· Mayur Offset Private Limited

· Mim Plastics

· Minar Hydro System (Private) Limited

· Mona Engineering

· National Automotive Components

· National Engineering Private Limited

· Neepaz Tubes (Private) Limited

· Precision Engineering Concern

· S. G. Metal Industries

· Sandeep Polymers

· Sardul Auto Works (Private) Limited

· Shree Purohit Engineering Works

· Singhbhum Refractory

· Sokhi Engineering Company Private Limited

· Sosun Engineering Company

· Spare Age (India) Private Limited

· Superintendence Company of India (Private) Limited

· Tatanagar Engineering & M/C

· Techno Enterprise

· United Industries

· Vijay Industrial Equipment Company

· Vinayas Enterprises

· West Bengal Engineering Works

· Aeicorp Private Limited

· India Mills Stores Supply

· New Allenbery Works

· Sundaram Industries Limited

· Unique Engineers

· Associated Engineering Company

· Hindustan Rubber Product

· MIM packs

· S. N. Chatterjee & Company

The company’s fixed assets of important value include land & roads, buildings, leaseholds, railway sidings, plant & machinery, furniture, fixtures and office equipments, development of property, livestock and vehicles.

Business :

Generic Names of Principal Products/Services of company (as per monetary terms) are as under:-

Items Code No.	Product Description
72082600	Flat Rolled Products of Non Alloy Steel of a width of 600 mm and more hot rolled coils of thickness 1.6 mm to 12 mm
73045901	Tubes/Pipes etc. of circular section with outer diameter upto 114.3 mm, not cold rolled
72091600 / 72091700	Flat Rolled Products of Non Alloy Steel of a width of 600 mm or more, cold(cold reduced), not clad, plated or coated of thickness 0.5 mm or more but less than 3 mm

The company has technical collaboration with :

· Lurgi, Germany

· Vesuvius, Italy

· Saarberg Interplan, Germany

· MDH, Germany

· Thyssen, Germany

· Davy Distington, UK

· SMS Demag, Germany

· GHH, Germany

· Posdata Company Limited, Korea

· Nachi Fujikoshi, Japan

· Morgan, USA

· CMI, Belgium

· NEDO, Japan

· Concast, Switzerland

· Paul Wurth, Luxembourg

The company is in trade terms with :

· Aeicorp Private Limited

· ANK Seals Private Limited

· Ankur Engineering Works

· Associated Chemical Industries

· Atlanta Engineering Company

· B. C. Engineering Company

· BMC Metalcast Limited

· Brij Automobile & General Industries

· C M Equipments & Instruments (India) Private Limited

· Darshanlal & Company

· Duro Engineering Complex

· Electro Chemicals

· Electromag Methods

· Empire Industries

· Fibre Foils Limited

· Fouress Engineering (India) Limited

· Gajanand Udhyog

· General Engineering Company

· Globe Engineering Works

· Golchha Chemicals Industries

· Govind Engineering Works

· H. D. Enterprises

· Hydrokrimp A. C. (Private) Limited

· Indian Forging & Stamping Company

· Jolly Industries

· Leo Plasts & Synthetic Moulders

· Lubcon Universal Private Limited

· M. K. Industries

· M.S.P. India Private Limited

· Mahato & Company

· Mallabhum Polypacks (Private) Limited

· Mayur Offset Private Limited

· Mim Plastics

· Minar Hydro System (Private) Limited

· Mona Engineering

· National Automotive Components

· National Engineering Private Limited

· Neepaz Tubes (Private) Limited

· Precision Engineering Concern

· S. G. Metal Industries

· Sandeep Polymers

· Sardul Auto Works (Private) Limited

· Shree Purohit Engineering Works

· Singhbhum Refractory

· Sokhi Engineering Company Private Limited

· Sosun Engineering Company

· Spare Age (India) Private Limited

· Superintendence Company of India (Private) Limited

· Tatanagar Engineering & M/C

· Techno Enterprise

· United Industries

· Vijay Industrial Equipment Company

· Vinayas Enterprises

· West Bengal Engineering Works

· Aeicorp Private Limited

· India Mills Stores Supply

· New Allenbery Works

· Sundaram Industries Limited

· Unique Engineers

· Associated Engineering Company

· Hindustan Rubber Product

· MIM packs

· S. N. Chatterjee & Company

The company’s fixed assets of important value include land & roads, buildings, leaseholds, railway sidings, plant & machinery, furniture, fixtures and office equipments, development of property, livestock and vehicles.

Press Release 2007

Tata Steel Enters into A MoU With Riversdale
amshedpur, August 3, 2007

Tata Steel Limited and Riversdale Mining Limited, a company listed in Australian Stock Exchange announced today that they have entered into a Memorandum of Understanding ("MOU"), whereby Tata Steel will become a strategic investor in Riversdale's Mozambique Coal Project by acquiring a 35% stake in it for a sum of A$100 million. The Mozambique Coal Project includes the coal tenements of premium hard coking coal in Benga and Tete, located in the Tete province in Mozambique, which are fully owned by Riversdale through its subsidiary. The Benga and Tete tenements together cover an area of 24,960 hectares. The Riversdale management expects that the potential mineralisation of the area will be substantially high. The MOU contemplates the relationship between Riversdale and Tata Steel to develop the project. Riversdale is presently conducting a scoping study which is likely to be completed in August 2007. The Definitive Agreements are expected to be finalised and executed by November 30 2007.

The hard coking coal derived from this project will be supplied to the Corus facilities in the UK and Europe and also to the Company's enhanced requirement in India in the future.

Mr. B Muthuraman, Managing Director, Tata Steel said, "The Memorandum of Understanding with Riversdale is in the Tata Steel's stated strategy of progressing towards raw material security for its global business. This partnership gives Tata Steel an opportunity to jointly explore part of a large coal basin which could prove to be a potential source to meet part of the raw material requirement and enhance the long term competitiveness of the global operations.

Mr. Michael O'Keeffe, The CEO and Chairman of Riversdale said, "The Memorandum of Understanding with Tata Steel is a decisive corporate event for Riversdale and is a definitive recognition of the Moatize Coal Basin as a significant new source of supply of hard coking coal products for the global steel industry. The MOU culminates a lengthy and thorough search for a strong strategic investor. Tata Steel is one of the most dynamic steel companies in the world. Throughout their long history, they have demonstrated consistent ability to thrive across many market cycles. They are an ideal strategic partner for Riversdale, and offer our shareholders the most efficient way to realize value from the development of Riversdale's world class projects."

The completion of the transactions contemplated by the MOU is subject to completion of due diligence, definitive agreements, and Board approval of both companies and regulatory approvals.

About Tata Steel

Established in 1907 as Asia's first integrated private sector steel company, Tata Steel today is the world sixth largest steel producer with geographic footprints in India, South East Asia, UK and Europe. With the recent acquisition of Corus Limited, the combined enterprise has a pro forma crude steel capacity of 28.1 million tonnes and finished steel capacity of 30.9 million tonnes in 2007 with over 84,000 employees across the four continents. For further information, please visit www.tatasteel.com.

About Riversdale Mining Limited

Riversdale Mining Limited incorporated in 1986 is engaged in mining activities and is listed on the Australian Stock Exchange. The company owns a 74% share of two anthracite projects in South Africa. In October 2006 the company acquired Africoal Mozambique Limitada through its 100% subsidiary Riversdale Energy Mauritius Limited, and thereby the ownership of large coal tenements in Mozambique in the Zambezi basin. The Company is currently exploring the Benga tenement.

Director’s Report

Acquisition of Corus Group plc, UK:

Tata Steel's investment in Corus Group plc is consistent with the Company's stated objective of growth and globalisation. 

In keeping with its vision of becoming a truly global player and creating a 50 million tonne steel capacity by 2015, through both organic and inorganic growth, the Company had been examining various opportunities. The process started with the acquisition of NatSteel Asia Pte. Ltd. (Singapore) in 2005, and Tata Steel (Thailand) Public Co. Ltd. (erstwhile Millennium Steel) in 2006, the planned brown field expansion in Jamshedpur and the long-term greenfield projects in Orissa, Chhattisgarh and Jharkhand. 

In October 2006, the Company submitted a bid to acquire the UK based steel making company viz. Corus Group plc (Corus). The acquisition was completed on 2nd April, 2007 at a price of 608 pence per ordinary share in cash for a net consideration of USD 12.9 billion. Corus is a leading steel company with an annual crude steel production of 18.3 million tonnes and revenues of USD 19.2 billion in 2006. Corus' operations are organised into three principal divisions; Strip Products, Long Products and Distribution and Building Systems, with manufacturing facilities located in UK and Netherlands. It holds a strong position in the automotive, construction and packaging sectors in Europe. 

With the acquisition, the Company has emerged as the sixth largest steel manufacturer in the world. Tata Steel is the lowestcost steel producer in the world, catering mainly to the domestic market. The Company has a competitive advantage of captive iron ore mines and collieries. On the other hand, Corus has state-of-the-art plants located in the UK and Netherlands producing mainly high end products, with a strong R & D capabilities. The combination of these two entities will give the Company access to highly developed and competitive markets of Europe, a strong product portfolio and state-of-the-art technology in manufacturing. The Company also sees a strong cultural fit with Corus, which is one of the key elements for successful integration. The Company believes that there are several areas where synergies are possible and is confident that these benefits will start accruing from the current year itself. 

Since the acquisition is effective from 2nd April 2007, the financial results of Corus will get reflected in the consolidated financial statements of the Company from the current year. 

South East Asian Operations: 

 Tata Steel has been undertaking the integration of its South East Asian Operations i.e. NatSteel Asia Pte. Ltd. and Tata Steel (Thailand) Public Co. Ltd. (erstwhile Millennium Steel). 

Tata Steel (Thailand) Public Co. Ltd., a subsidiary of the Company, increased finished steel production by 18% over the previous year at 1.14 million tonnes. Steel sales were higher by 16% at 1.12 million tonnes and revenues were higher by 22% over the previous year at Rs. 25870.000 millions (USD 595 million). Inspite of increased imports from China into South East Asian markets and the political disturbance in Thailand, Tata Steel (Thailand) Public Co. Ltd. recorded an improved performance to post an Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of Rs. 2890.000 millions (USD 67 million). The EBITDA margin improved to 11.2% as compared to 6.7% during the previous year. The Company turned around to make a Net Profit of Rs. 1250.000 millions (USD 29 million) for 2006-07. 

The turnover of NatSteel Group increased by 8.5% over the previous year at Rs. 43960.000 millions (USD 1.01 billion). Net Profit (after Minority Interest) for 2006-07 was Rs. 760.000 millions (USD 17 million) which was lower than the previous year primarily on account of increased imports from China and higher scrap prices which adversely affected the profitability of the Company. 

 As part of regional consolidation, NatSteel Asia Pte. Ltd. acquired 100% equity stake in NatSteel Trade International Pte. Ltd., Southern NatSteel (Xiamen) Ltd. in China and a majority stake in NatSteel Vina Co. Ltd. in Vietnam. 

Acquisition of Corus and its Financing: 

 a) Corus Acquisition Process: 

 On 20th October 2006, the Boards of Tata Steel, Tata Steel UK (100% subsidiary of Tata Steel) and Corus reached an agreement on the terms of a recommended acquisition of the entire issued and to be issued share capital of Corus, at a price of 455p in cash for each Corus share. This was to be implemented by means of a Scheme of Arrangement under Section 425 of the UK Companies Act, 1985, and the relevant scheme document was sent to the Corus shareholders on 10th November, 2006. 

Subsequently, a competitive situation emerged when a Brazilian steel company - Companhia Siderurgica Nacional (CSN) subsequently approached Corus with a proposal to make a cash offer. While Tata Steel revised its offer to 500p per share, CSN made a binding offer at 515p per share in December 2006. The Board of Corus recommended CNS's offer to the shareholders. 

 As the process got extended, the Panel on Takeovers and Mergers in the UK (the Panel) set a deadline of 30th January, 2007 as the final date by which Tata Steel and CSN could revise their offers for Corus Group plc. The Panel subsequently announced in January 2007 that in order to provide an orderly resolution to this competitive situation, an auction process would be held on 30th January, 2007 to establish final bids from both Tata Steel and CSN. This auction process began in the evening of 30th January (Indian time) and ended in the early hours of 31st January, 2007 (Indian time) when the Panel announced that Tata Steel has won the auction to acquire Corus at a price of 608p per share. The Board of Corus subsequently recommended the Tata Steel offer to its shareholders who voted to approve Tata Steel's Scheme of Arrangement, at an Extra-Ordinary General Meeting held on 7th March, 2007. Corus' shares were subsequently suspended from trading on each of the London, New York and Amsterdam Stock Exchanges and the Scheme became effective on 2nd April, 2007. 

 b) Corus Financing Structure: 

The financing structure of the Corus transaction as on date is given below: 

Tata Steel Limited India : 100% \:/Tulip UK Holdings Singapore : 100% \:/Tata Steel Asia Holdings Pte. Limited United Kingdom : 100% \:/Tata Steel UK Limited United Kingdom : 100% \:/Corus Group plc United Kingdom

 The above financing structure is being re-organised to achieve fiscal unity in Netherlands and consequent tax efficiencies. 

 c) Corus Financing: 

On 2nd April, 2007, Tata Steel completed its acquisition of Corus Group plc (Corus) at a price of 608p per ordinary share in cash. The net funding requirement for the acquisition of Corus was Rs. 561500.000 millions (USD 12.90 billion). The acquisition was initially funded by a cash contribution by Tata Steel of Rs.117500.000 millions (USD 2.7 billion) (funded by a mixture of its own cash resources and syndicate loans) to Tata Steel Asia Holdings Pte. Ltd. (TSAH). TSAH raised bridge loans of Rs.109000.000 millions (USD 2.5 billion) and Tulip UK Holdings raised a mezzanine loan of Rs.26000.000 millions (USD 0.6 billion) which was invested by way of equity in Tata Steel UK Ltd. To finance the balance of the consideration due under the acquisition, Tata Steel UK Ltd. (through its wholly owned subsidiary, Tulip Finance Netherlands BV) raised senior debts of Rs. 174000.000 millions (USD 4.0 billion) and Mezzanine bridge of Rs. 135000.000 millions (USD 3.1 billion). These loans were raised without recourse to Tata Steel. At the Board Meeting held on 17th April, 2007, Tata Steel's Board approved the long term funding arrangement for the acquisition of

Corus as per details given below: 

  Rs. In millions  USD Millions

 Equity Capital from Tata Steel Ltd. 17850 41.0000 

 Quasi - Equity/long term funding 11570 26.600 

 Total Equity and Quasi-Equity 29420 67.600contribution (a) 

 Non-recourse long-term debt at 26730 61.400Corus (b) 

 Total (a+b) 56150 129.000 

The Company proposes to infuse USD 4.1 billion as equity to part finance the transaction. The equity will comprise of USD 700 million from internal generation, USD 500 million of external commercial borrowings, USD 640 million from the preferential issues of equity shares to Tata Sons Ltd. in 2006-07 and 2007-08, USD 862 million from a rights issue of equity shares to the shareholders, USD 1000 million from a rights issue of convertible preference shares and about USD 500 million from a foreign issue of equity-related instrument.  

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.40.45
UK Pound	1	Rs.82.70
Euro	1	Rs.55.94

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	8
--CREDIT LINES	1~10	8
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		71

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions