MIRA INFORM REPORT

Report Date :

11.07.2008

IDENTIFICATION DETAILS

Name :	TATA AGRICO-DIVISION OF 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
CIN No.: [Company Identification No.]	L27100MH1907PLC000260
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 56000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a division of Tata Steel Limited, a Tata group company who are country's most respectable industrial house. Tata’s are known for trustworthiness and reliability. They will not enter into any business dealings which they may find difficult to meet. Subject can be resulted as excellent business partner.

LOCATIONS

Registered Office :	Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001, Maharashtra, India
Tel. No.:	91-22-56658282 / 66658282
Fax No.:	91-22-56658113 / 56658119 / 66657725
E-Mail	tatasteelho@tata.com cosectisco@tata.com
Website :	http://www.tata.com/tatasteel http://www.tatasteel.com
Factory :	· 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 and Quarries · Borivali, Mumbai; Tarapur – Wire Division
Corporate Office:	Design Call, 3^rd Floor, General Office, Tata Steel, Jamshedpur – 831 001, India
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 (31.12.2007)	No. of Shares	Percentage of Holding
Indian
Bodies Corporate	204434756	33.57%
Any Other (Trust)	1031460	0.17%
Institutions
Mutual Funds / UTI	25830135	4.24%
Financial Institutions / Banks	2060101	0.34%
Central Government / State Government (s)	119317	0.02%
Insurance Companies	93851953	15.41%
Foreign Institutional Investors	125118035	20.55%
Non Institutions
Bodies Corporate	19133369	3.14%
Individuals -
Individual shareholders holding nominal shares capital upto Rs. 0.100 million	116649338	19.16%
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	15488877	2.54%
Trust	5245523	0.86%
Foreign Corporate Bodies	6125	0.00%
Shares held by custodians and against which Depository Receips have been issued	3867	0.00%

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, 2nd 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 and Company Chartered Accountants · S. B. Billimoria and 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 and Projects Limited · Rujuvalika Investments Limited · Indian Steel Rolling Mills Limited · Kumardhubi Fireclay and Silica Works Limited · Kumardhubi Metal Casting and 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 and 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
25000000	Cumulative Redeemable Preference Shares	Rs. 100/- each	Rs. 2500.000 millions
440000000	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 RESULTS

PARTICULARS	30.06.2007	30.09.2007	31.12.2007
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	41975.800	47850.900	49739.200
Other Income	8325.500	1846.300	1149.500
Total Income	50301.300	49697.200	50888.700
Total Expenditure	28364.000	28159.400	29423.400
Operating Profit	21937.300	21537.800	21465.300
Interest	799.900	2021.500	3626.700
Gross Profit	21137.400	19516.300	17838.600
Depreciation	2112.400	2050.100	2092.100
Tax	5183.100	5557.900	5060.700
Reported PAT	12221.100	11908.300	10685.800

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

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 and 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 Limited was merged with TISCO. Pursuant to merger the shareholders of Tata SSL Limited were allotted 1210003 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 120000 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 and Blending Plant, a new expansion project includes a raw material Bedding and 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 Limited, 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 and Power Company Limited'(HMPCL) jointly with West Bengal Industrial Development Corporation. The company holds 98% Shareholding in HMPCL. The company has sold its holding in Stewarts and Lloyds of India Limited and consequently Stewarts and 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 and Steel Company Limited to Tata Steel Limited.

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 and 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.

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 tonnes 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. Limited. (Singapore) in 2005, and Tata Steel (Thailand) Public Company Limited. (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 and 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. Limited. and Tata Steel (Thailand) Public Company Limited. (erstwhile Millennium Steel). 

Tata Steel (Thailand) Public Company Limited., 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 Company Limited. 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. Limited. acquired 100% equity stake in NatSteel Trade International Pte. Limited., Southern NatSteel (Xiamen) Limited. in China and a majority stake in NatSteel Vina Company Limited. 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. Limited. (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 Limited. To finance the balance of the consideration due under the acquisition, Tata Steel UK Limited. (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 Limited. 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 61.400 Corus (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 Limited. 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.  

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. Limited.' 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. Limited., 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 1150000000 Ordinary shares of Rs.10 each. 

SUBSIDIARIES
The gross revenue of the subsidiaries increased to Rs. 55453.600 millions (2004-05 : Rs.18829.500 millions). Profit after taxes was also higher at Rs.2327.900 millions [2004-05 : Rs. 1202.000 millions].

PARTNERSHIP

NatSteel Asia and 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 and General Industries

· C M Equipments and Instruments (India) Private Limited

· Darshanlal and 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 and Stamping Company

· Jolly Industries

· Leo Plasts and Synthetic Moulders

· Lubcon Universal Private Limited

· M. K. Industries

· M.S.P. India Private Limited

· Mahato and 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 and 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 and Company

The company’s fixed assets of important value include

· Land and Roads,

· Buildings,

· Leaseholds,

· Railway Sidings,

· Plant and Machinery,

· Furniture,

· Fixtures and Office Equipments,

· Development Of Property,

· Livestock and

· Vehicles.

TATA AGRICO DETAILS:-

ADDRESS: Tata Centre, 43, 3rd Floor, Jawaharlal Nehru Road-7000071, Kolkata, West Bengal, India.

TEL NO: 91-33-22248661

Mob. No: 91-9231027077

Fax No: 91-33-22888850

Email: arup.dasgupta@tatasteel.Com

Website: www.tataagrico.com

Year of Establishment: 1927

BUSINESS DETAILS:

Line of Business: Manufacturer And Exporter Of Agriculture Implements

Products:

· Hoes

· Sickles

· Pick Axes

· Crowbars

· Shovels

· Hammers

Exports:

Products: Agricultural Implements

Countries: Dubai, Nepal, Bhutan, Qatar

Terms:

Selling: Cash And Credit

Purchasing: L/C, Cash And Credit

GENERAL INFORMATIONS:

Customers: Retailers

No. Of Employees: 22

Bankers: State Bank Of India, Kolkata, India

Sales Turnover: Rs. 1000.000 Millions (2008)

Expected turnover: Rs. 1500.000 Millions (2008-09)

WEBSITE DETAILS:

Company Profile:

Established in 1907, subject is the world's 6th largest steel company with an aggregate of annual crude steel production capacity of around 28 million tonnes having approximately 82700 employees across the four continents. It was Asia's first steel company and remains India's largest integrated private sector steel manufacturer. With investments in Corus, NatSteel and Tata Steel (Thailand), Subject is the world's second most geographically diversified steel producer, with operations in 24 countries and commercial presence in over 50 countries.

The Company plans to grow and globalise through organic and inorganic routes. To fulfil its objective of Growth and Globalisation, the five million tonnes per annum (MTPA) Jamshedpur Works is gearing up to double its capacity by 2010. The Company is making steady progress on its three greenfield steel projects in the Indian states of Jharkhand, Orissa and Chhattisgarh, to add 23 million tonnes to its present capacity. It also plans to set up steel making capacities in Vietnam and Bangladesh.

Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Asia, Singapore, Subject has created a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. Corus, which manufactured 18.3 MT of steel in 2006, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel (Thailand) is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MT. NatSteel Asia produces about 2 MT of steel products annually across its regional operations in seven countries.

Subject, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. It has also set up joint ventures for the development of limestone mines in Thailand, to procure low ash coal from Australia and coking coal from Mozambique, for the development of iron ore deposits in Ivory Coast and for setting up of a deep-sea port in coastal Orissa.

The Company is also exploring opportunities in the titanium dioxide business in Tamil Nadu, India and it will soon be manufacturing high carbon ferro-chrome from its plant in South Africa.

Subject is one of the few steel companies in the world that is Economic Value Added (EVA) positive. It was ranked the "World's Best Steel Maker", for the third time by World Steel Dynamics in its annual listing in February, 2006. Subject has been conferred the Prime Minister of India's Trophy for the Best Integrated Steel Plant five times.

FUTURE PLANS

· Steel Plant Projects

· Other  Projects

PRODUCTS

Subject is a global player with a balanced presence in developed European and fast growing Asian markets and with a strong position in the construction, automotive and packaging markets. Its Jamshedpur steel works produces hot and cold rolled coils and sheets, galvanised sheets, tubes, wire rods, construction rebars, rings and bearings. In an attempt to 'decommoditise' steel, the Company has introduced several branded steel products, including Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata Bearings, Tata Structura, Tata Agrico (hand tools and implements) and Tata Wiron (galvanised wire products). In the financial year 2006-07 revenue from the sale of these branded steel products was 26% of the company's sales revenues.

Corus' main operating divisions comprise Strip Products, Long Products and Distribution and Building Systems Division. Combining international expertise with local customer service, the company supplies a range of long and strip products to demanding customers worldwide in markets including the construction, automotive, packaging and engineering sectors. The NatSteel group produces construction grade steel such as rebars, cut-and-bend, mesh, precage bore pile, PC wires and PC strand. Tata Steel Thailand produces round bars and deformed bars for the construction industry.

Corporate Sustainability

Regarded globally as a benchmark in corporate social responsibility, Subject's commitment to the community remains the bedrock of its hundred years of sustainability. Its mammoth social outreach programme covers the company-managed city of Jamshedpur and over 800 villages in and around its manufacturing and raw materials operations through uplift initiatives in the areas of income generation, health and medical care, education, sports, and relief.

The Company, fully conscious of its responsibilities to the future generations, has always taken pro-active measures to ensure optimum utilization of natural resources. This is reflected in the ISO-14001 certification that all its operations have achieved for environment management. The SA 8000 certification for work conditions and improvements in the workplace at the steel works in Jamshedpur, along with its Ferro Alloys and Minerals Division, is a reiteration of its commitment towards the Company's employees. Subject has pioneered numerous employee welfare measures such as the 8 hours working day and the three tier joint consultation system of management which have been the platform for nearly 80 years of industrial harmony in its Steel Works in Jamshedpur.

Global Compact, United Nations -

· Founder member.

· Conferred the prestigious Global Business Coalition Award for Business Excellence in the Community in recognition of its pioneering work in the field of HIV/ AIDS awareness.

· Jamshedpur city has been chosen to participate in the UN Global Compact Cities Pilot Programme.

Organisation

The company a division of Tata Steel Limited is spread in an area of more than 350 acres of land at Gamharia, Dist - Saraikela, about 16 Kms from Jamshedpur, 250 Kms from Kolkata in eastern part of lndia.

The complex houses 9 covered sheds covering an area of above 72000 Sq meters. The main strength of the Growth Shop is its multidisciplinary engineering approach for the Design, Manufacturing and Supply of high precision equipment for various industrial sectors such as:

· Steel

· Aluminium

· Energy and Power

· Railways

· Cement

· Aviation and Space Research etc.

The Manufacturing facilities include an excellent machining facility, one of the best in the country, a large and well equipped fabrication and welding shop with crane lifting capacity of more than 100T, a big assembly shop to carry any complicated precise assembly and a heat treatment shop.

Stringent Quality Control checks are ensured by a well equipped Quality Assurance department having wide range of testing and Inspection facilities.

The best in class facilities are manned with highly skilled people in each area from designing to manufacturing and quality inspection, thus delivering the world class products.

The product range include Steel plant equipment like Blast Furnace, Torpedo Ladle Cars, Caster Equipment, Transfer Cars, Ladles, Rolling Mills Equipment, Steel Melting Shop Equipment, Sponge Iron Plant Equipment, EOT Cranes up to 500T Capacity, Pot Tending Machines for Aluminum Industry, Diesel Locomotive Parts like 16 Cylinder and 6 Cylinder Engine Blocks, Crank Case, Under Frame Kit, Floor Frame Assembly, Hydro and Thermal Power Plant Equipment like Spiral Casing, Draft Tube, Pit Liners, Rope Drums, Stator Frames, Fabricated Structures etc. One of the major strength of TGS is its ability to deliver the products faster than the normal market lead time. This had been possible with the tremendous synchronisation and control in the flow which could be achieved across the functions and various facilities.

Commensurating with the above TGS has the customer Mantra of "Creating Time Value for its Customers" and had been able to create substantial benefits for the customers in terms of reducing the project lead time.

AWARDS and RECOGNITIONS

World Steel Dynamics has ranked Subject as the world's best steel maker (for two consecutive years) in its annual listing in February 2006.

Subject has been conferred the Prime Minister of India's Trophy for the Best Integrated Steel Plant five times.

It has been awarded Asia's Most Admired Knowledge Enterprise award in 2003 and 2004.

Press Release 2008

Tata Steel constructs ICU in its hospital at Noamundi
2 ICU’s by Tata Steel within a distance of 25 kms
Jamshedpur, April 14, 2008

Tata Steel has constructed an ultra modern Intensive Care Unit in its hospital in Noamundi that was inaugurated by Mr. H M Nerurkar, Chief Operating Officer, Tata Steel. Also present on the occasion was Mr. A M Misra, Vice President (Raw Material and CSI), Mr Arun Misra, General Manager (OMQ), Tata Steel, Office bearers of Noamundi Mazdoor Union and other senior officials of the company. In 2007-08 the two hospitals at Noamundi and Joda has catered to around 0.200 million patients in its Out Patient Department (OPD), which were mostly people from neighbouring areas and villages and around 10,000 indoor patients. These hospitals also offer medical facilities on subsidized rates to the villagers living in the peripheral areas. Within a distance of 25 km, Tata Steel has constructed two ICUs (one in Joda and one in Noamundi) for the benefit of the people. Tata Steel Hospital at Noamundi is perhaps the only hospital where not only Company employees get treated but also people living around this mining belt of West Singhbhum district benefit from this facility.

In this ICU at Tata Steel Hospital, Noamundi, critical surgical and medical cases will be treated. The basement floor of the ICU building is spread across an area of 110.72 sq. meters and the first floor covers an area of 157.72 sq. meters. The ICU Building has Store rooms, Hall, Visitor's room and a Doctor's Lounge. The ICU is also equipped with latest machines like Defibrillator with monitor for treating heart related ailments, 3 Channel ECG machines, Ventilator for Artificial respiration to critically ill patients, Cardiac monitor and other such equipment required for treatment. The 66 bedded Tata Steel Hospital at Noamundi offers comprehensive medical care to the employees and other stakeholders of the neighbouring areas. Manned by highly skilled doctors and para medical personnel, it offers specialized facilities in Surgery, Ophthalmology, Medicine, Orthopaedics, Dental, Paediatrics' etc.

The Foundation Stone of the ICU Building at Tata Steel Hospital in Noamundi was laid at the hospital premises by Mr A M Misra, Vice President (Raw Material), Tata Steel on February 22, 2007. Tata Steel has another hospital with same ICU facility in Joda in Keonjhar district which is just 25 kms away from Noamundi which was inaugurated on August 9, 2007 by Mr B Muthuraman, Managing Director, Tata Steel.

In an effort to check population growth, the hospital has been conducting vigorous Family Welfare Campaign since 1986. This hospital is also pioneering Annual Eye Cure Camps, in this region, for Cataract operations with modern technique since 1966.

April 15, 2008

This has reference to news items appeared in Indian & foreign media titled "Tata makes hostile bid to acquire AVG."

Tata Steel reiterates its denial on the issue of any hostile bid to takeover AVG.

"Tata Steel did not contemplate any hostile takeover of the AVG and does not have any plans to undertake the same. The report is incorrect and untrue"

Consolidated Financial Results for the Quarter / Six Months ended on 30^th September 2007
Mumbai, January 24, 2008

Tata Steel published stand alone audited financial results for the six months ended 30^th September 2007 on 26^th October 2007. The enclosed consolidated financial results of the Company for the six months ended 30^th September, 2007 were reviewed by the auditors and approved by the Board of Directors of the Company.

Highlights for the six months ended 30^th September 2007:

· Profit before exceptional items and taxes for the six months ended 30^th September 2007 was Rs.54830.000 millions against Rs.32270.000 millions for the same period of the last financial year.

· Diluted EPS before exceptional items (not annualized) for the six months ended 30^th September 2007 was Rs.54.59 against Rs.39.41 for the same period in the last financial year.

Consolidated Financial Results for the Quarter ended /Six Months ended on 30^th September, 2007

			Quarter ended on 30.09.2007	Quarter ended on 30.09.2006	Six Months ended on 30.09.2007	Six Months ended on 30.09.2006	Financial Year ended on 31.03.2007
1	Net Sales/Income from Operations	Rs. Millions	324249.300	60248.100	635872.000	117725.500	252133.100
2	Other Income	"	1102.200	1681.400	2844.300	2472.800	4380.700
3	Total Income (1+2)		325351.500	61929.500	638716.300	120198.300	256513.800
4	Total Expenditure
	a) Material cost	"	146271.300	20774.500	283384.400	40761.500	86311.700
	b) Staff Cost	"	39493.800	4647.400	79499.300	8708.400	18849.700
	c) Depreciation	"	11013.900	2460.300	21312.100	4841.900	10109.800
	d) Other Expenditure	"	91256.900	16321.900	176920.300	32337.600	72470.200
	e) Total Expenditure ( 4a to 4d)	"	288035.900	44204.100	561116.100	86649.400	187741.400
5	Interest ( net)	"	13847.300	726.100	22768.100	1279.700	4111.900
6	Profit before Exceptional items and Tax	"	23468.300	16999.300	54832.100	32269.200	64660.500
7	Exceptional Items
	a) Employee Separation Compensation	"	(565.100)	(443.600)	(1114.000)	(631.500)	(1530.300)
	b) Contribution For Sports Infrastructure	"	-	-	(1500.000)	-	-
	c) Exchange Gain / (Loss)	"	1059.000	-	6438.400	-	-
	d) Actuarial Gain / (Loss) on Funds for Employee Benefits	"	18502.500	-	59713.800	-	-
	Total of Exceptional items ( 7a to 7d)	"	18996.400	(443.600)	63538.200	(631.500)	(1530.300)
8	Profit before tax ( 3-4-5+7)	"	42464.700	16555.700	118370.300	31637.700	63130.200
9	Tax Expense	"	9389.000	5180.600	21914.700	10123.200	21474.100
10	Net Profit (+) / Loss (-)   (8-9)	"	33075.700	11375.100	96455.600	21514.500	41656.100
11	Share of Profit of Associates	"	393.000	116.000	784.700	324.900	791.800
12	Minority Interest	"	(45.100)	(100.000)	(213.000)	(256.500)	(675.200)
13	Profit after Minority Interest and share of Profits of Associates ( 10 + 11 +12)	"	33423.600	11391.100	97027.300	21582.900	41772.700
14	Diluted Earnings per Share (not annualised) ( Rupees before exceptional items)		231.400	206.000	545.900	394.100	757.400

The previous period figures do not include Corus and the current period includes financial results of Corus, reviewed by the auditors.

Report on Financial performance

· Income from Operations

Total income for six months ended 30^th September 2007, amounted to Rs. 638720.000 millions against Rs.120200.000 millions in the same period previous year. The increase comprise mainly of Rs.498090.000 millions of Corus income and increases of Rs. 8660.000 millions in Indian operations, Rs.12370.000 millions in Nat Steel and Rs.5120.000 millions in Tata Steel, Thailand.

· Total Expenditure

Total expenditure for the six months ended 30^th September 2007 amounted to Rs.561120.000 millions against Rs.86650.000 millions during the previous years. The increase is primarily on account of inclusion of expenditure of Corus during the current year.

· Material cost

The material cost for the six months ended 30^th September 2007 was Rs.283380.000 millions against Rs.40760.000 millions during the previous year. The increase is principally due to inclusion of material cost of Rs.234060.000 millions of Corus, increase in NatSteel by Rs.11220.000 millions increase in Tata Steel Thailand by around Rs.3560.000 millions, and increase in the Indian operations by Rs.540.000 millions. The increases in the material cost of NatSteel and Tata Steel Thailand are mainly due to the increase in the volume of operations and an increase in the scrap prices. The increases in the material cost of Indian operations were mainly due to use of imported coke.

· Other Expenses

The other expenditure for the six months ended 30^th September 2007 was Rs.176920.000 millions against Rs.32340.000 millions for the same period last financial year. The increase is primarily due to the inclusion of Other Expenditure of Corus of around Rs.138080.000 millions.

The details of the major items of other expenditure are shown below for the quarter ended / six months ended 30^th September 2007.

Figs. in Millions

	Quarter ended 30^th Sep'07				Six months ended 30^th Sep'07
	Tata Steel	Corus	Others	Total	Tata Steel	Corus	Others	Total
Stores consumed	2544.200	17470.600	521.400	20536.200	5208.300	34541.000	949.700	40699.000
Repairs	1596.200	13835.400	282.200	15713.800	2939.800	27290.900	578.600	30809.300
Purchase of power	2386.800	7868.700	1296.100	11551.600	4714.600	15563.000	2533.300	22811.000
Rent	27.400	9235.600	107.500	9370.500	51.100	18151.500	208.900	18411.500
Freight & handling	2799.600	10460.000	1357.000	14616.600	5261.000	21052.400	2391.100	28704.500
Others (Conversion charges etc.)	5561.800	11432.900	2473.500	19468.200	10435.300	21477.400	3572.400	35485.000
Total Other expenditure	14916.000	70303.200	6037.700	91256.900	28610.100	138076.300	10233.900	176920.300

· Interest

The interest expenditure for the six months ending 30^th September 2007 amounted to Rs.22770.000 millions against Rs.1280.000 millions during the previous year. The increase is mainly on account of interest charges on the borrowings to fund the acquisition of Corus. The breakup of interest charges, major unit wise, is shown in the following table:

Figs. in Millions

	Q2FY08	H1FY08
Tata Steel Indian operations	2020.000	2820.000
Corus group of companies (including Financing SPVs)	11510.000	19340.000
Others	320.000	610.000
Total interest	13850.000	22770.000

Exceptional items

Results for the six months ending 30^th September 2007 include gain from exceptional items of Rs.63540.000 millions mainly comprised of actuarial gain on funds for employee benefits of Rs.59710.000 millions. The actuarial gain on funds for employee benefits represents increase in value of investments held by pension trusts arising out of increase in yield rates on bonds.

The Profit after tax inclusive of share of profits of associates and net of minority interest amounted to Rs.97030.000 millions for the six months ending 30^th September 2007 compared to Rs.21580.000 millions for the corresponding period of the previous year.

Earnings per share for relevant periods are given below:

	H1FY08	H1FY07
Basic earnings (after exceptional items)	160.16	38.29
Diluted earnings (after exceptional items)	156.61	38.29
Basic earnings (before exceptional items)	55.28	39.41
Diluted earnings (before exceptional items)	54.59	39.41

Tata Steel Enters into A MoU With Riversdale
Jamshedpur, 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 their 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.

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.

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 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.43.16
UK Pound	1	Rs.85.51
Euro	1	Rs.67.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	10
PAID-UP CAPITAL	1~10	10
OPERATING SCALE	1~10	10
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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		84

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.	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