MIRA INFORM REPORT

Report Date :

1.09.2008

IDENTIFICATION DETAILS

Name :	TATA STEEL LIMITED

Registered Office :	Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001, Maharashtra

Country :	India

Financials (as on) :	31.03.2008

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 :

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 1300000000

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 / 66658282
Fax No.:	91-22-56658113 / 56658119 / 66657725/ 24
E-Mail :	tatasteelho@tata.com cosectisco@tata.com
Website :	http://www.tata.com/tatasteel http://www.tatasteel.com

Corporate Office:	Design Call, 3^rd Floor, General Office, Tata Steel, Jamshedpur – 831 001, India
Websites:	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

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

Name :	Mr. James Leng
Designation :	Deputy Chairman

Name :	Mr. Andrew Robb
Designation :	Additional Director

KEY EXECUTIVES

Name :	Mr. J C Bham
Designation :	Company Secretary

Name :	Mr. H M Nerurkar
Designation :	Chief Operating Officer

Name :	Mr. A D Baijal
Designation :	Vice President and Tata Steel Group Director, Global Mineral Resources

Name :	Mr. R P Singh
Designation :	Vice President, Engineering Services and Projects

Name :	Mr. Koushik Chatterjee
Designation :	Vice President, Finance and Tata Steel Group CFO

Name :	Mr. Anand Sen
Designation :	Vice President, Flat Products and TQM

Name :	Mr. Abanindra M. Misra
Designation :	Vice President, Raw Materials and CSI

Name :	Mr. Varun K Jha
Designation :	Vice President, Chattisgarh Project

Name :	Mr. Om Narayan
Designation :	Vice President, Shared Services

Name :	Mr. Radhakrishnan Nair
Designation :	Chief Human Resource Officer

Name :	Mr. Partha Sengupta
Designation:	Vice President, Corporate Services

Name :	Mr. H Jha
Designation:	Vice President, Safety and Long Products

Name :	Mr. N K Misra
Designation:	Vice President and Tata Steel Group Head, M and A

Name :	Mr. B K Singh
Designation:	Vice President, Orissa Project

Name :	Mr. H C Kharkar
Designation:	Vice President, MD Office, Mumbai

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2008

Names of Shareholders	No. of Shares	Percentage of Holding
Shareholding of Promoter and Promoter Group
Indian
Bodies Corporate	246961636	33.80
Any other (Trust)	1031460	0.14
Public Shareholdings
Institutions
Mutual Funds/ UTI	36663824	5.02
Financial	2319552	0.32
Central Government/ State Governments (s)	120333	0.02
Insurance Companies	122172286	16.72
Foreign Institutional Investors	144652804	19.80
Non Institutions
Bodies Corporate	19749456	2.70
Individual Shareholders holding nominal share capital excess of Rs. 0.100 Million	132029321	18.07
Individual Shareholders holding nominal share capital I excess of Rs. 0.100 Million	19621366	2.69
Trusts	5252190	0.72
Foreign Corporate Bodies	6225	0.00
Shares held by custodian and against which Depository Receips have been issued	3867	0.00
Total	730584320	100.00

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

Products:

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

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

(As on 31.03.2008)

Authorised Capital :

No. of Shares	Type	Value	Amount
1750000000	Ordinary Shares	Rs.10/-each	Rs.17500.000 millions
25000000	Cumulative Convertible Preference Shares	Rs.100/-each	Rs.2500.000 millions
600000000	2% Cumulative Convertible Preference Shares	Rs.100/-each	Rs.60000.000 millions
	Total		Rs.80000.000 millions

Issued Capital :

No. of Shares	Type	Value	Amount
731369503	Ordinary Shares	Rs.10/-each	Rs.7313.700 millions
548075571	2% Cumulative Convertible Preference Shares	Rs.100/-each	Rs.54807.600 millions
	Total		Rs.62121.300 millions

Subscribed Capital:

No. of Shares	Type	Value	Amount
730584320	Ordinary Shares	Rs.10/-each	Rs.7305.800 millions
	Add :Ordinary shares Forfeited		Rs. 2.000 millions
547251605	2% Cumulative Convertible Preference Shares	Rs.100/-each	Rs.54725.200 millions
	Total		Rs.62033.000 millions

Of the 73, 05, 84,320 Ordinary Shares:

a) 95,63,300 Shares represent after sub-division 9,56,330 shares (including 9,35,000 shares issued pursuant to the scheme of Arrangement for the conversion of Deferred Shares into Ordinary Shares and the isuue of additional fully paid shares)of the face value of Rs.75 per share Which were issued as fully paid up pursuant to contracts for consideration other than cash.the nominal value of these 9,56,330 shares was increased from Rs.75 to Rs.100 each with effect from 1.1.997

b) 1,98,12,460 shares represent after sub-division 19,81,246 shares of the face value of Rs.75 per share which were issued as fully paid bonus shares by utilisation of Rs.38.144 millions from share premium Account and Rs.110.448 millions from General Reserve .The nominal value of these 19,81,246 shares was increased from Rs.75 to Rs.100 each with effect from 1.1.1997

c) 5,14,40,270 shares represent after sub-division 51,44,027 Ordinary shares whose face value was increased during the year 1976-77 from Rs.75 to Rs.100 per share by utilisation of Rs.0.049 millions from share premium Account and Rs.128.550 millions from general Reserve.

d) 2,05,76,110 shares represent after sub-division 20,57,611 shares of the face value of Rs.100 per share which were issued as fully paid bonus shares by utilization of Rs.205.761 millions from General Reserve.

e) 7,21,530 shares represent after sub-division 72,153 shares of the face value of Rs.100 per share which were issued as fully paid up to the shareholders of the erstwhile Indian Tube Company Limited on Its amalgamation with the Company , for consideration other than cash.

f) 36,30,51,470 shares represent after sub-division 33,05,147 shares of the face value of Rs. 100 per shares which were issued as fully paid bonus shares by utilization of Rs.330.514 millions from General Reserve.

g) 12,10,003 shares of the face value of Rs.10 each were issued as fully paid up to the shareholders of the erstwhile Tata SSl Limited on its amalgamation with the Company , for consideration other than cash.

h) 18,44,90,952 shares of face value of Rs.10 per share were issued as fully paid up bonus shares by utilization of Rs.1844.909 millions from Securities Premium Account during the year 2004-05.

i) 2,70,00,000 shares of face value of Rs.10 per share issued to Tata Sons Limited on a preferential basis during the year 2006-2007.

j) 2,85,00,000 shares of face value of Rs.10 per share allotted to Tata Sons Limited on a preferential basis during the year 2007-2008

k) 12,16,11,464 shares of face value of Rs.10 per share allotted at a premium of Rs.290 per share to the shareholders on Rights basis during the year 2007-08

54,72,51,605 Cumulative Convertible Preferencce Shares (CCPS) of face value Rs.100 per share were allotted at a price of Rs.100 per share, to the shareholders on Rights basis during the year 2007-2008.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		62033.000	5806.700	5536.700
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		210974.300	133684.200	92016.300
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		273007.300	139490.900	97553.000
LOAN FUNDS
1] Secured Loans		35205.800	37589.200	21917.400
2] Unsecured Loans		145011.100	58864.100	3244.100
TOTAL BORROWING		180216.900	96453.300	25161.500
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		453224.200	235944.200	122714.500

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		82561.100	85431.200	87073.200
Capital work-in-progress		43674.500	24974.400	11577.300

INVESTMENT		41031.900	61061.800	40699.600
DEFERREX TAX ASSETS		0.0000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26049.800	23329.800	21747.500
	Sundry Debtors	5434.800	6316.300	5394.000
	Cash & Bank Balances	4650.4000	76813.500	2883.900
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	345828.400	40259.500	19944.600
Total Current Assets		381963.400	146719.100	49970.000
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	57709.600	53892.200	45523.900
	Provisions	39848.200	30375.400	23614.400
Total Current Liabilities		97557.800	84267.600	69138.300
Net Current Assets		284405.600	62451.500	(19168.300)

MISCELLANEOUS EXPENSES		1551.100	2025.300	2532.700

TOTAL		453224.200	235944.200	122714.500

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006

Sales Turnover		221918.000	197578.000	171402.400
Other Income		9826.400	6555.500	4611.500
Total Income		231744.400	204133.500	176013.900

Profit/(Loss) Before Tax		70663.600	62616.500	52972.800
Provision for Taxation		23793.300	20395.000	18231.200
Profit/(Loss) After Tax		46870.300	42221.500	34741.600

Expenditures :
	Manufacturing Expenses	26208.000	25000.000	20906.700
	Administrative Expenses and Selling Expenses	14670.100	14915.700	13737.100
	Miscellaneous Expenses	12147.300	0.000	0.000
	Raw Material Consumed	38764.700	35720.600	30243.800
	Excise Duty	25370.200	35720.600	30243.800
	Increase or decrease in Stock	[387.300]	0.000	0.000
	Preoperative Expenditure Capitalised	[1755.000]	0.000	0.000
	Interest and Financial Expenses	9290.300	2512.500	1745.100
	Employee Cost	18038.700	15989.600	13973.900
	Power & Fuel	10387.700	10278.400	8975.700
	Depreciation & Amortization	8346.100	8192.900	7751.000
Total Expenditure		161080.800	148330.300	127577.100

QUARTERLY RESULTS

PARTICULARS			30.06.2008 1^st Quarter
Sales Turnover			61650.300
Other Income			122.200
Total Income			61772.500
Total Expenditure			34438.700
Operating Profit			27333.800
Interest			2417.300
Gross Profit			24916.500
Depreciation			2168.000
Tax			7864.500
Reported PAT			14884.000

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt Equity Ratio	0.67	0.51	0.31
Long Term Debt Equity Ratio	0.66	0.49	0.30
Current Ratio	2.86	1.24	0.71
TURNOVER RATIOS
Fixed Assets	1.37	1.26	1.20
Inventory	8.99	8.77	8.47
Debtors	37.77	33.74	30.58
Interest Cover Ratio	8.61	25.92	32.11
Operating Profit Margin (%)	39.79	37.11	36.07
Profit Before Interest and Tax Margin (%)	36.03	32.96	31.55
Cash Profit Margin (%)	24.88	25.52	24.97
Adjusted Net Profit Margin (%)	21.12	21.37	20.45
Return on Capital Employed (%)	23.32	36.79	50.07
Return on Net Worth (%)	26.20	35.62	41.70

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.

Centenary Year:

On 26th August 2007, the Company completed its 100 years. The centenary celebrations began with a commemorative function and a screening of the feature film 'The Spirit of Steel' and the release of 'Romance of Tata Steel; a book authored by Mr. R. M. Lala, with large participation from the citizens of Jamshedpur and the employees of the Company.

In line with the Company's commitment to the society and as a part of the centenary celebrations, various cultural activities and social outreach programmes at several locations involving employees and the local communities were initiated. Initiatives were taken to promote land and water management projects in the backward tribal blocks of the States of Jharkhand, Orissa and Chhattisgarh and improve the livelihood of 40,000 poor tribal households in 400 villages. Special efforts have been made in the field of education by providing schools for children of tribal communities and scheduled caste families and train them to become self-reliant.

During the golden jubilee celebrations, in 1958, Pandit Jawaharlal Nehru visited Jamshedpur and planted a banyan tree sapling. In the 100th year, the Honourable Prime Minister Dr. Manmohan Singh along with other dignitaries visited the Steel city and planted the centenary banyan tree. He also unveiled a centenary postage stamp brought out by the Government of India's Ministry of Communications to mark The Company's 100 years of service to the country. It symbolises the Company's commitment and dedication, not only towards the industrial revolution in India in 1907 but also to continue to create benchmarks in every field that it has ventured in the last century.

Global Economy:

The Global economy grew at 2.2% in 2007 as compared to 2.9% in 2006. Global economic activity slowed since the second half of 2007 against the backdrop of the financial turmoil and a deepening US downturn. The unfolding of the subprime mortgage crisis coupled with growing concerns about a contraction in economic activity in the US had a cascading effect on global growth. In the US, real GDP grew by 0.6 in the fourth quarter of 2007 as compared with 2.1% a year ago and 4.9% in the previous quarter. US real GDP growth is expected to slow further during 2008 as the housing market downturn deepens and the financial market turmoil spreads across the financial system. Banks in several advanced industrial economies have been tightening lending standards and the credit crunch that has affected world financial markets since August 2007 was a reflection of deeper problems relating to huge debt build-up during the credit boom of recent years. The current consensus view is that the global economy will only slow modestly further in 2008.

Developments up to the first half have been broadly consistent with this view as growth in the Euro area, Japan and major emerging market economies continued to be strong.

The UK economy grew by almost 3% in 2007, primarily driven by consumption, business investment and residential construction. Real GDP in the Euro area grew by 2.3% in the fourth quarter of 2007 on a year-on-year basis as compared with 3.3% a year ago.

Growth in emerging market economies (EMEs) last year once again significantly exceeded that in the rest of the world. Foreign currency inflows were large, reflecting continued growth in current account surpluses and capital inflows in 2007. Recent increases in headline inflation have reflected in the steep increases in oil and food prices. The Chinese economy grew by 11.4% in 2007 as compared with 11.1% in 2006 as its total foreign exchange reserves, increased to USD 1.7 trillion in March 2008 compared with USD 1.2 trillion in March 2007. In 2008, the Chinese economy is expected to grow at a moderate pace of 9.3% as measures to resolve problems such as overheated growth in fixed asset investment and excessive supply of money and credit take effect. The Indian economy grew by about 8.7% in 2007-08 as compared to 9.6% in 2006-07The lower growth was attributable to the agricultural sector growing under 3%, growth in industry decelerating to 8.9% from 1 1 % in 2006-07 and a slowdown in the manufacturing sector to 9.4% from 12% in FY 2007. In Japan, the economy grew by 3.7% in the fourth quarter of 2007 as compared with 2.2% a year ago. However, recent lead indicators point to slackening of momentum as consumer and business sentiment has weakened.

Steel Industry:

The world crude steel output reached 1,344 million tonnes in 2007, up by around 100 million tonnes over 2006. This increase of 7.5% was driven mainly by China where the crude steel production grew by 60 million tonnes over 2006 (an increase of 14%).While China's production constitutes 34% of the world production, the country's consumption constitutes almost 31 of the world consumption. The crude steel production in India was higher by 8% in 2007 over 2006. The increase primarily was due to a sustained demand momentum in key-end use segments like construction, capital goods and automobiles. The supply side has not been able to keep pace with the strong demand resulting in India becoming a net importer of steel.

Steel production in the European Zone remained stable, with year-end figures of 210.000 million tonnes, a growth of around 2% over 2006.The imports in the European Union also remained at a high level during 2007.

The latest global steel consumption forecast predicts 6.77% year on year increase in steel consumption in the current year. The additions in the capacity are likely to be around 90 million tonnes. The greatest concern of the steel industry is the availability of raw materials at a competitive price. There have been unprecedented cost increases in iron ore by around 65% and coking coal by around 200% in 2008, which would have an impact on the steel prices.

Business Results:

Tata Steel Group, on a consolidated basis had a net sales of Rs.1315360.000 Millions in the FY 2007-08 against Rs. 252120.000 Millions in the FY 2006-07.

The total operating expenditure (before interest expenses and depreciation) was at Rs.1135430.000 Millions in FY 2007-08 against Rs. 177620.000 Millions in FY 2006-07. The major components of the expenditure in FY 2007-08 were purchase of finished and semi-finished steel, raw materials consumed, staff cost, freight and handling and other expenditure. The interest charges were at Rs. 41840.000 Millions in the current financial year against Rs. 4110.000 Millions in the last financial year. The Exceptional items , a gain of Rs. 61240.000 Millions include the actuarial gain of Rs. 59070.000 Millions in Corus on funds for employee benefits. The gain is on account of recovery of bond yields used to discount scheme liabilities and recovery in asset values of the scheme funds. These gains are required to be accounted for through the Profit and Loss Account under Indian GAAP.

Pursuant to the Accounting Standard AS 21 issued by the Institute of Chartered Accountants of India, consolidated financial statements presented by the Company include financial information of its subsidiaries. The Company has received the approval from the Ministry of Corporate Affairs

vide its Letter No. 47/337/2008-CL-III dated 4th June, 2008, exempting the Company from attaching the balance sheet, profit and loss account and other documents of the subsidiary companies to the balance sheet of the Company.

As per the terms of the approval letter, a statement containing brief financial details of the Company's subsidiaries for the year ended 31st March, 2008 is included in the annual report. The annual accounts of these subsidiaries and the related detailed information will be made available to any member of the Company / its subsidiaries seeking such information at any point of time and are also available for inspection by any member of the Company /its subsidiaries at the Company's Registered Office. The annual accounts of the said subsidiaries will also be available for inspection as above at the Head Office of the respective subsidiary companies.

On 2nd April, 2007,The Company UK Limited ('TSUK'), subsidiary of Tulip UK Holding No. 1 which in turn is a subsidiary of The Company completed the acquisition of Corus Group plc ('Corus'). The consolidated results include the financial statements of Corus from 2nd April, 2007. Consequently, the data of the previous year is not comparable.

Dividend:

The Board for the year ended31st March, 2008 has recommended a Dividend C@ 2% on 547,251,605 Compulsorily Convertible Preference Shares (CCPS) of Rs. 100 each, payable pro-rata from the date of allotment of CCPS i.e. 18th January 2008.

The Board, for the year ended 31st March, 2008, has recommended a dividend @160%. The dividend will be paid on 730,584,320 Ordinary Shares at Rs. 16 per share (2006-07 on 608,972,856 Ordinary Shares at Rs. 15.50 per share including special dividend of Rs. 2.50 per share).

Tata Steel-Corus Integration:

'One enterprise - two entities' has been the driving philosophy of the integration process which has been designed at two levels: one at a strategic level and the other to maximise synergy benefits in various functions of the business.

A joint team was mandated to identify where the two entities needed to work together or work in a coordinated manner and also the processes which would be managed separately by the entities. The teams study and recommendations have resulted in the implementation of a governance structure in January 2008 to bring alive the 'Operating Model' designed.

To oversee the progress on the strategy and integration plans and ensure that key milestones are met, a Strategy and Integration Committee (SIC) has been constituted under Chairmanship of Group Chairman.

A structured approach has been followed for the synergy and integration in various functional areas. Joint integration teams formed for key areas have identified synergies worth USD 450.000 million and action plans drawn up will ensure that these targets are realised by end March 2010.

Site specific workshops and knowledge sharing sessions have been conducted at various plant locations for identifying breakthrough improvements in the area of throughput increase and cost reduction.

During the year, synergy benefits of USD 76.000 million have been realised. The Company has derived the benefits in the area of manufacturing, whereas in Corus, the benefits are from reduction in taxation and in shared services in the area of legal, investor relations, etc. in the Corporate Centre.

Finance:

During FY 2007-08, the financing structure of the Corus transaction has been reorganised to achieve fiscal unity in the Netherlands and consequent tax efficiencies. The Corus businesses in UK and Netherlands are now organised under fully owned subsidiaries of The Company Netherlands BV., which in turn is an indirectly fully owned subsidiary of subject

]
By the close of April 2008, the financing for the Corus acquisition has been completed with all the recourse bridge funding contracted for the acquisition having been paid off through a mix of debt, equity and internal accruals and the non-recourse funding syndicated during the year.

In September 2007, the Company issued USD 0.875 billion of 1 Foreign Currency Convertible Alternative Reference Securities (CARS). Between September 4, 2011 and August 6, 2012, each security is convertible at the option of holder of the security, at a conversion price of Rs. 758.10 into a Qualifying Security issued by the Company. The Company must redeem all outstanding CARS at 123.349% of their principal amount together with accrued and unpaid interest no later than September 5, 2012.

The Company raised an amount of Rs. 91210.000 Millions through a Rights and Cumulative Compulsorily Convertible Preference Share Issue and Rs. 25 billion through a long term loan. The syndication of the GBP 3.67 billion senior facility consisting of multiple tranches of term loans and a GBP 0.5 Billion five year revolving credit facility, secured by the assets of Corus was successfully closed in December 2007 by which time, a large number of banks as well as institutions had come into the transaction. The deal was widely recognised as a landmark deal and won numerous awards and recognition from financial journals.

The Company also privately placed Non-Convertible Debentures totaling upto Rs. 20000.000 Millions in May 2008. The deemed date of allotment of these debentures was 7th May, 2008 and they consist of 3 series: 3 year floating (MIBOR-linked) notes (Rs. 10900.000 Millions), 7 year fixed rate notes (Rs6200.000 Millions) and 3 year fixed rate notes (Rs. 2900.000 Millions). These funds may be used by the company for various corporate needs.

The Company hedged the foreign currency risk on repayment of the major part of the USD 1.65 billion of external commercial borrowings drawn in FY 2006-07. The foreign currency repayment risk on the CARS remains unhedged since they may be converted to underlying securities in FY 2012 and FY 2013.

Tata Steel Netherlands, the entity in whose books the non-recourse debt has been taken was successful in encouraging a high proportion of investors to voluntarily convert their debt to Euro via the re-denomination route. The majority of the balance debt was then swapped to Euro from GBP so that foreign currency risk could be minimised. Tata Steel Netherlands also hedged the majority of its Euro interest rate risk.

Expansion Projects:

Brownfield Projects:

After successful completion of 1 mtpa expansion programme in the year 2005, the Company embarked upon its journey to reach 10 mtpa crude steel making capacity at Jamshedpur Works. This is to be achieved by year 2011 in two phases. Work on the first phase, which takes the capacity of Jamshedpur Steel Works to 6.8 mtpa at a project cost of Rs. 45500.000 Millions was started in the year 2006. The same is now nearing completion. The new Sinter Plant No. 4 was commissioned in 2007 and new H-Blast Furnace was blown-in on 31st May, 2008, ahead of schedule by a month. Expansion programme for Steel Making Shops is under execution.

The Company has simultaneously initiated work on the second phase, the 3 mtpa expansion programme, which will enable it to reach crude steel capacity of 10 mtpa at Jamshedpur Works by the year 2011. Under this expansion programme, Iron Making facilities will be up-graded. Besides, new facilities such as a Steel Making Shop (LD Shop No. 3), Thin Slab Casting and Rolling Mill and a pelletizing plant of 6 mtpa capacity will be installed.

Greenfield Projects:

The Company has begun the process of building a new integrated steel plant at Kalinganagar, Orissa with a total capacity of 6.0 mtpa to be set up in two phases of 3.0 mtpa each. The land acquisition, rehabilitation and resettlement work is in progress.

Orders for major equipment have been finalised. Skill upgradation training is being provided to the members of displaced families. The Company has informed the Government of Orissa of its fulfillment of MOU conditions, with a request to the Central Government for recommendation of iron ore mining lease.

The Company has also entered into a Memorandum of Understanding with the state governments of Chhattisgarh and Jharkhand respectively for setting up steel plants. The process of submitting applications for various licenses for mining leases and environmental clearance has been initiated.

Coke is one of the main raw materials in the iron making process.

The Company has set up Hooghly Metcoke and Power Company Limited, a subsidiary, to manufacture 1.600 million tonnes per annum of coke to meet the requirement on expansion. The increased requirement of power will be met from a 90 MW power plant being set up by Tata Power Company.

During the year, the Company in India incurred capital expenditure of Rs.24590.000 Millions.

Other Projects:

Tata BlueScope Steel Limited:

Tata BlueScope Steel is an equal joint venture between Tata Steel and BlueScope Steel in the field of coated steel, steel building solutions and related building products. The Company operates in the South Asian Association for Regional Cooperation (SAARC) region. Tata BlueScope Steel has two business divisions, Buildings Division and Coated Steel Division.

The Buildings Division business markets pre-engineered buildings (PEB), roll-formed roof and wall cladding solutions, related building components and distribution of colour coated sheets for retail customers. The Coated Steel business markets metallic coated and pre-painted steel, for the building and construction industry. Tata BlueScope Steel's Buildings Division has three manufacturing facilities located at Pune, Chennai and Bhiwadi and are certified by Underwriters Laboratory Inc. for ISO 9001: 2000. The premium brands include the BUTLER' pre-engineered steel buildings and the LYSAGHT. range of steel building solutions. The Coated Steel Division markets premium brands including the pre-painted COLORBOND. steel and the metallic coated ZINCALUME. steel.

The Coated Steel manufacturing facility at Jamshedpur will be operational from the first quarter of 2010. This facility will have an annual metallic coating capacity of 250,000 MT and paint line capacity of 150,000 MT.

In view of high construction activities coupled with infrastructure growth and good response from the industry, the demand for PEB and building solutions is expected to grow rapidly in times to come.

Tata Steel (KZN) Pty. Limited:

Tata Steel (KZN) Pty Limited, a subsidiary of the Company, is setting up a High Carbon Ferro Chrome plant with a capacity of 1,50,000 tpa at Richards Bay, South Africa. The first furnace was started in April 2008 and the second furnace is scheduled for June 2008. It is expected that commercial production will start in July 2008.This was an historic event, being the first Greenfield project of the Tata Group commissioned in South Africa.

The Dhamra Port Company Limited:

The Dhamra Port Company Limited ('DPCL'), a Joint Venture company between the Company and Larsen andToubro Limited ('LandT') is developing an all weather modern deep water port in the state of Orissa. ('Dhamra Port Project'). The bulk cargo berths are being designed to accommodate upto 180,000 (DWT) vessels.

The major portion of the land required for the Project has been acquired through State Government. The construction work at the port site has commenced and the same is progressing satisfactorily. The Company has taken adequate measures for conservation of the environment, endangered species and other related issues which has significant impact on successful completion of the Project.

Tata NYK Shipping Pte. Limited:

Tata NYK Shipping Pte. Limited, a joint venture shipping company between the Company and Nippon Yusen Kabushiki Kaisha (NYK Line) commenced shipping activities for Tata Group companies and other clients with five ships on a 'time chartered' basis. Tata NYK handled around 2.400 million tonnes of dry cargo.

Tata NYK has worked out a five year business plan which projects to service more than 20.000 million tonnes of cargo per annum through a fleet of owned and chartered ships.

Joint Venture with Vietnam Steel Corporation:

The Company has entered into two Memorandum of Understandings with Vietnam Steel Corporation for setting up a 4.5 mtpa steel project (in 2 phases) and a Cold Rolling Mill in Ha Tinh Province, Vietnam. The Joint Venture Company would also further invest in the mining projects in Vietnam, subject to financial viability being established.

Raw Material Security:

The Company is self-sufficient in iron ore for 100% and -60% for coking coal i.e. an average of 80% raw material security for its Indian operations. After the acquisition of Cores the extent of captive raw material for the combined entity stands at around 22%. Having a reasonable level of raw material security is imperative for long term sustainability especially during downturns. The Company, in line with its strategy, is continuously exploring various raw material opportunities across the globe.

Further, the increase in global steel demand mainly driven by China and other Asian countries has pushed the global steel prices upward sharply, which led to an increase of price of iron ore, coal, coke, scrap, etc. The initiatives of the Tata Steel Group to maintain cost competitiveness in the global arena, as well as to increase its raw material security are as under:

1. Coal Project, Carborough Downs: The Company took strategic interest of 5% in coal mining project in Australia, in partnership with AMCI, Nippon Steel, JFE and POSCO in September 2005 with 20% offtake rights. The Joint Venture was formed for development of Greenfield underground coal project in Bowen Basin, Queensland. The first raw coal production started from August 2006. The total capital investment would be estimated around USD 401.000 million.

2. Coal Project, Mozambique: In November 2007, the Company entered into a Joint Venture Agreement with Riversdale Mining Limited for 35% stake in two coal tenements - Benga and Tete in Mozambique. The Company has also secured a right for 40% share of the coking coal. The coking coal derived from this project would be supplied to the Tata Steel Group's facilities in Europe, Asia and elsewhere.

3. Iron Ore Project, Ivory Coast: In December 2007, The Company entered into JV with Sodemi for 85% stake for development of Mount Nimba Iron Ore deposit in Ivory Coast. The initial phase would involve exploration and detailed feasibility assessment followed by construction of the mines and beneficiation facilities. Iron ore from this project will be supplied to Corus facilities in Europe. The JV company in the name of The Company Cote d'Ivoire S. A has been formed.

4. Limestone Project, Oman: About 40% to 50% of the present requirement of limestone of The Company is being sourced from indigenous sources and the balance is being imported. The Company has been continuously evaluating options to own limestone mines for its captive use. In January 2008, The Company acquired 70% stake in AI Rimal Mining LLC, an existing company of AI Bahja Group of Oman. The JV will undertake mining of limestone in Uyun in Salalah.

5. Coal Projects, SAIL: In January 2008, The Company entered into 50:50 joint venture with SAIL for development of coal blocks to meet their captive coal requirements. The Joint Venture would acquire and develop coal blocks.

Safety:

The The Company Management is committed to ensure safety of its employees, plant and community at all its operation sites. With the help of DuPont Safety Resources, safety consultants, a Safety Management System has been established. Communication, involvement, motivation, skill development, training and health have been identified as the key drivers for safe working environment. The Company has established a Safety Culture by inculcating safe behavior among its employees. Theme based monthly campaigns built on the analysis of past serious incidents had made the management and workmen aware and revisit their work places to eliminate many hazards.

As part of social commitments for community safety at large, safety knowledge was imparted to the school children with the help of M/s. Humbert Ebner India Private Limited The Company also started implementing 'Process Safety and Risk Management system' for high hazard operations, a first of its kind in any Indian steel plant. As part of Centenary Safety Celebrations, the Company initiated safety awareness amongst the associate companies and other industries through sharing its experience and knowledge. These initiatives have resulted in reducing the injuries and lost time significantly.

Research and Development:

1. R & D Activities continue to focus on identified thrust areas of relevance to the The Company Group, that would lead to a step change or breakthrough:

Economic mineral beneficiation* Stretch the raw material envelope* Heavy end of the future* Next generation high strength steels* Advanced coatings development* New low energy process for production of Ferro Chrome* Hydrogen harvesting* Development of a viable PV coating system* Energy efficient fluids* Construction

2. Benefits derived:

A number of individual projects have been taken up in each of the thrust areas and while most of these are of a long term nature, some benefits have already accrued, brief details of which are mentioned below:

8% ash in coal without reduction in yield:

Plant trials, with a newly developed and patented frother, conducted at West Bokaro Collieries indicate a 1% increase in the washery yield.
Pilot plant trials with a new design of Dense Media Cyclone (DMC) at JKMRC, Australia show a step change in separation efficiency. The new design of the DMC has been patented.
A new chemical based technology for treating middlings, tailings and rejects has been developed and a pilot plant is being set up (500 Kg batch scale) for testing this technology.

Beneficiation of Iron Ore:

A pilot plant for iron ore beneficiation is expected to be commissioned in January 2009. Exploratory work on utilization of slimes for making building material, such as tiles, has been completed.

Lowering Phosphorous in Steel Making:

Equilibrium phosphorous partition study has shown possibility of improving actual partition with the addition of a small quantity of Al2O3. The low basicity findings will be implemented in the BOF operation after further studies.
The output of a 2-dimentional numerical model developed to predict the fluid flow and mixing during combined blowing corroborate with plant trials conducted. This could result in the development of a new design of lance for the BOF vessel.

Improving Blast Furnace Productivity:

A comprehensive model of the process, comprising physical model experiments linked with fluid flow models, will be developed in a year.
ULCOS, a large research project, combining the capabilities of all major European steel makers and engineering companies, aims at developing new processes that could achieve 50% less CO2, emissions per tonne of steel. 4 possible routes have been identified:

1. New Blast Furnace using pure oxygen and top gas recycling.

2. ISARNA, a new smelting reduction process.

3. Direct reduction process using gas or hydrogen with geological storage of CO2.

4. Electrolysis of iron ores for production of steel. Trials are presently being conducted.

KDRI, a coal based DRI technology, is presently in the pilot plant stage and is being developed with the aim of achieving a substantial advantage in capital and operating costs over other DRI technologies.

Ferro Chrome - Reduction in Power Cost:

Based on laboratory experiments a pilot scale rotary hearth furnace has been designed, installed and commissioned. Process and design parameters are now being established. The power consumption is expected to reduce to 2,800 Kwh/ tonne from 3,500 Kwh/tonne.

Development of Advanced Coatings:

The main objective of this thrust area is:

(i) To develop a suitable advanced coating on steel sheet to either minimize the use or replacement of zinc (zero zinc).

(ii) To develop chrome free passivation for their galvanized sheet.

MagiZinc (MZ), a hot dip zinc coating, has been successfully commercialised by Corus after extensive trials. Added value of MZ for customers mainly lies in improved product performance and cost reduction. MZ will be promoted as a premium product for building and automotive applications.

Various Zn-alloy coating systems (Zn-Mg, Zn-Cu and Sn-Zn) are currently being developed in lab scale. Texture-coating property correlation for high strength steel (HIF 440) has been established. The commissioning of the indigenously developed HDG simulator with hot trials is in progress.

Improvement in corrosion resistance properties of nano-hybrid titania coating obtained by incorporating other silanes in coating formulation giving 144 hrs of SST on CRCA sheet. The life could be further improved to more than 192 hrs. by addition of trace amount of tartrazine yellow or Safranin-O. This also provided yellow and red coloration to coated sheet respectively. Efforts underway to fabricate A4 size coated sheets as part of the lab development.

Technical specifications and plant layout for a pilot coating line with facilities for spray, roll coating and dip coating systems have been finalised. Expected commissioning activities will start by September 2008.

A4 size composite panels with adhesive bonded EPP were evaluated for thermal stability, adhesion testing and cyclic humidity testing. No delamination was found after 1 hr exposure at 120C. The samples also passed different humidity cycles ETAG 016. Additionally, we are also interacting with IICT Hyderabad for lab scale sandwich panel development with suitable polymer development tailor made for auto application

Next generation High Strength Steels (HSS):

A new grade of hot rolled steel - HR Tata 800, was developed with 800 MPa UTS, 20% elongation and > 150% hole expansion ratio. The fatigue properties of this grade are far superior to conventional multi-phase steels of equivalent strength.

A common platform has been established with Corus RD and T for shortening of model development time.

Simultaneous efforts are on for development of HSS with 1000 mPa yield strength and 50% elongation.

For prediction of spring back in HSS materials model has been developed and implemented in collaboration with Seoul National University, South Korea. Facilities for (i) Spring back test (ii) Hole expansion test were added in the existing forming Press.

Future Plan of Action:

The challenges ahead are:

Rapid growth:

Multiple locations - how to share learningsConcentrate on 'high end'- new technologyRaw materials - best use of captive resources

Expenditure on R and D:

(Rs. Millions)

(a) Capital Rs. 58.300 Millions

(b) Recurring Rs. 363.700 Millions

(d) Total R & D expenditure as a 0.21percentage of total turnover

Technology Absorption, Adaptation and innovation:

Efforts made On the Process Front...

Hydrogen Harvesting

The Stage III (Technology Development phase) of the project was successfully completed in Jan. 2008. In this stage, pilot scale (10 ton slag capacity) was designed, developed and commissioned. Experimentation has been done in which product gas with + 70% hydrogen was achieved. The work on Stage IV (Technology Demonstration phase) initiated from February 2008. The detailed action plan for the stage IV has been prepared. The work on optimisation of design and process parameters is in progress.

Wires

Initiative to build a world class 'Wires Research and Technology Centre' launched so that Wires Division can be a world leader in all aspects of wire related products and processes.

R and D and Wires Division has designed and manufactured steel fibres for use in concrete; tests are on to benchmark this product with Bekaert's DRAMIX fibres.

Thin organic coating on galvanised wires was successfully developed and commercialised as a new premium brand. This wire product has a life 2 times its original life.

Modelling and Advanced Process Designs

A common platform for integrated model development between CORUS RD T and R & D has been developed along with ITS. This will shorten model development times and avoid duplicacy of efforts.

A steel laminate product has been designed that can be a market differentiator product for Tata Shaktee. Tests are on to study its durability and efficiency.

A MOU is in final stages with IISc Bangalore to build a 'hi-strain rate machine'for finding hi-end applications in steels.

R & D innovations:

Development of a low cost laminate for roofing and cladding.

Development of nano fluid to improve the heat transfer by about 20%.

Development of an environmental friendly process for Chrome and Ferro Chrome nuggets, with a potential to save 20% energy.

Laboratory development of TWIP steel.

Development of advanced level spring back model to predict the spring back of high strength steel during forming.

Addition of hot water to improve the permeability of green mix at SP-3, which contributed to record production.

A mathematical model for phase transformation and heat transfer during wire rod cooling on the Stelmor was developed to reduce the UTS variation within the ring of the wire rod.

Development of a thermo dynamic computational model during solidification to achieve improved steel cleanliness.

Raw Materials:

Use of Jhama Coal as an alternative to Raw Petroleum Coke (RPC) in Sinter mix will increase the mine life from 14 years to 32 years.

Use of Banded Hematite Jasper (BHJ) in place of Quartz in Blast Furnace gives substantial saving to the company.

Plant trial for the Pneumatic rotation in the fine coal circuit was conducted to reduce the ash and also improve the overall yield. An improvement in yield to the tune of 10-15 units at an ash level of 10.5% was achieved by this process.

Developed process flow sheets for the total beneficiation of Noamundi and Joda Iron ore deposits. It is possible to achieve an overall yield of 70%.

Long Products:

LD-1:

Billet Caster#2 at Steel making Shop No. 1 has been equipped with quick nozzle change facility resulting in increased best ever monthly average casting sequence length of 16 heats.

Nitrogen reduction in High carbon to customers desired level by use of low Nitrogen Petroleum Coke.

WRM:

Stabilisation and modification in rolling practices to produce 5.5 mm at 100 m/sec to improve productivity.

Use of 'COMBI' rolls in stand 8, 9, 10 and 11 to achieve better surface finish.

Development of roll profile image checking system to control ovality.

Development of coil centering rolls for Stelmor Conveyor to reduce the UTS variation within the ring.

NBM:

Use of HSS (high Speed roll) in Stand 14 and 15 to increase the pass life and the mill productivity.

Reduction in cycle time of walking beams in reheating furnace to improve the productivity.

Merchant mill:

Modification of Stand - 1 pass to roll all sections from 130 mm square billets.

Modification of reheating furnace stopper at the Charging side to improve the furnace refractory life.

Grade Development:

Development and branding of Super Ductile Rebar with a higher ductility and improved UTS /YS ratio for seismic application.

Development of Graphitic high carbon steel with proeutectoid composition for improved drawability of wire rod.

Flat Products:

LD-1

Heat weight increased from 130 tonnes to 152 tonnes.

LD Vessel - 3 registered highest ever life of 4105 heats.

After an extensive trial, zero-angle port sub entry nozzle (SEN) has been replaced with 15-deg down port SEN in slab casters to improve slab quality.

Use of coated mould in place of bare Copper (Cu) mould has been established in two slab casters to achieve good surface quality. This has resulted in reduction of slab rejection due to star crack from 20% to a very low figure.

Hot charging of slab increased from 56% to 63% at reheating furnace of Hot Strip Mill.

Strike rate of interstitial free steel for auto application has been increased to 89.4% from 84.7%.

Specific refractory consumption per ton of crude steel reduced from 7.16 to 6.69%.

Grade/ Process Development:

HS - 800 is a steel grade with 100% ferrite matrix containing nano carbides. It has high strength coupled with excellent ductility at, a Btu etch fl angeability. The complete characterisation of the grace which was during the year indicate, that it is a grade of high merit.

Development of SPFH 590 (Steel with 600 MPa strength) for the manufacture of Automobile wheels.

New cold rolled grades such as BH 220, ReP 340 SPC 440, SPRC 350 with higher R bar were developed for the automotive applications.

Proto type automatic surface inspection system was developed for surface inspection in PLTCM.

Chrome-3 and Chrome passivation technologies were developed for the export of coated products.

Epoxy pair a coated steel is in the advance,d stage of development and it will be a good replacement if imported steel for the four wheeler fuel tank applications.

Customer approvals:

Approvals were received from Toyota, Maruti, Ford Hyundai, Fiat Palio, Logan, Nissan etc. for critical skin panel and nigh strength steel applications.

Technology Upgradation and Absorption in Tubes:

Division - 2007-08:

In the Tubes division, the following efforts were made to improve operational efficiency.

ST Mills:

Installation of state of the art automated new 3 inch continuous tube Mill of size range 15 mm NB to 65 mm NB, with solid state welder and high speed cold saw.

Fully automated pickling line followed by semi automatic hot dip tube galvanizing line.

Online packaging and weighing line for HF 1 mill.

Semi automatic high capacity threading, socketing, marking, colour banding and weighing line in Finishing.

PT Mills:

Installation of state of the art new 4 inch mill of size range 31.75 mm to 114.3 mm OD and thickness upto 6.00 mm for manufacture of high end automobile tubes.

6t per hour bright normalizing furnace for manufacture of high end precision tubes and boiler tubes.

Modernisation of 2 inch mill with new solid state welder.

Upgradation of HF welder in 3 inch mill.

New surface treatment plant for cold drawing with facilities for use of reactive oil to improve surface quality of high end automobile tubes.

Semi automatic 60 t capacity new cold draw line integrated with CNC straightener, cutting, end chamfering, online eddy current testing and packaging.

Modification of hydraulic testing unit with internal resources for tube testing upto 300 psi for OD upto 114.3 mm.

Major Innovations on Process and Product Development:

Development of High strength Tubes using ERW Process for auto vehicle weight reduction.

Optimization of Tube Heat Treatment Process in PT Mills to improve productivity.

Development of (i) 80 new products in house from PT Mills for auto market and (ii) 13 new products from ST Mills for structural end use in house and at EPAs.

Development of Structura (i) with low temperature impact properties and (ii) weather resistance grade.

Development of flux through collaborative project with NML to reduce dross generation during hot dip galvanizing - resulted in savings of approx. Rs. 10.000 Millions a year.

Some Major New products Developed through new technology absorption:

CBQ tubes and TFF tubes for two wheelers.

Tubes for hydro forming for Tata Motors Limited- NANO Cars.

As drawn and As welded Prop. Shaft tubes for Ashok Leyland Limited, Tata Motors Limited

Thin wall exhaust tubes for Ashok Leyland Limited, Tata Motors Limited

Bright normalized tubes for Automobile application.

St45 grade of boiler tubes/pipes.

Efforts for Energy Conservation at West Bokaro:

Improvement in Average Captive Generation per day from 12.1 MW to 14.0 MW through Enhancement of Loading Efficiency of TG Sets.

Background:

Till FY 2005-06, the Fluidized Bed Combustion (FBC) Power Plant at The Company West Bokaro was running with one upgraded boiler of 15 MW capacity with two TG sets of 10 MW each. The average SPH generation per day for the year during FY 05-06 was 12.1 MW due to the inefficiency of the TG sets to take the load as per design parameters.

Reasons for inefficient loading of the TG sets:

1. Vacuum drops and Exhaust Temperature increases beyond permissible limits.

2. Inefficiency of Cooling Tower to maintain the designed temperature difference.

3. Inefficiency of condenser tubes to maintain the heat transfer (For TG-2).

4. Inefficiency of ejectors to maintain the Vacuum.

For the above mentioned reasons the loading was restricted to 6 MW in TG-2 and 7.5 MW in TG-1.

Variations in the Parameters at Peak Load is given below:

Parameters Design data Actualof TG at 10 MW data at Permissible load 5.5 MW Limits

Exhaust HoodTemperature 55 Degree 63 Degree 65 Degree Celsius Celsius Celsius
Vaccum 0.85 Kg/Cm2 0.73 Kg/Cm2 0.70

Condenser Inlet andOutlet Temp. 10 Degree 4.5 Degree 4 Degree Diff. (AT) Degree Celsius Celsius Celsius Celsius

Improvement Activities done in FY 07-08 to Increase the loading efficiency of the TG sets:

The total plant shutdown was taken for 8 days and the following jobs were completed.

1. Replacement of the condenser tubes.

2. Vacuum Drop Test and Checking of Any Leakage from Steam Line, Water Line and Nozzle from the Ejector Circuit.

3. Dismantling, Cleaning and Overhauling of all the Internals of both the Ejectors and Its Condensers.

4. Cleaning of Oil Cooler and Air Cooler Tubes.

5. Replacement/Revamping of Cooling Tower Internals, e.g. Spray Nozzles, V-Bar Fills etc.

6. Complete Cleaning of Sand Depositions inside the Hotwell.

7. Complete Cleaning of Top Deck and Basin of the Cooling Tower. All the above mentioned jobs were completed in-house through our maintenance personnel and a very few through local contractors at minimum cost.

KPI's after the Project Is as follows:

Benefits: Key performance Before at After atindicators 5.5 MW 8.0 MW Exhaust Hood 63 Degree 53 Degree Temperature Celsius Celsius

Vaccum 0.73 Kg/Cm2 0.81 Kg/Cm2 Condenser Inlet 4.5 Degree 6 Degree and Outlet Temp. Celsius Celsius (OT) Degree Celsius

From the KPI's after the project, they are able to load both the TG sets up to 8.5 MW each. Since the upgraded running boiler is of 15 MW capacity, they achieved the peak load of 15 MW (Max Capacity) load even during peak summer seasons when the inlet Cooling Water Temperature increases by 8 degrees. This resulted in optimizing the plant load factor and utilization of existing asset of the company. As a result the withdrawal from DVC was less which incurred a recurring savings of Rs.22.500 Millions per annum

Total Expenditure Incurred : Rs. 2.200 Millions Total Savings per annum (recurring) : Rs. 22.500 Millions

Sweating of Asset by Performance Optimizing:

Saving in Purchased Power Bill by Rs. 22.500 Millions. per annum for years to come.

Additional generation of 147 LKWH/annum with the same asset and same workforce.

Attain average load of 14 MW from 12.1 MW.

Particulars of technology imported during last five years:

Steel Division Absorption Status of Implementation

a) Electrolytic cleaning line 2003 Commissioned(SMS Demag, Germany)

b) Upgradation of 'G' blast furnace 2004 Commissioned(SMS Demag, Germany)

c) Upgradation of HSM 2004 Commissioned

d) Upgradation of billet caster-1 2004 Commissionedat LD1 (Concast, Zurich)

e) Ladle furnace-2 at LD1 (SMS 2004 CommissionedDemag, Germany)

f) New Rabar Mill (Morgan, USA) 2004 Commissioned

g) Upgradation of caster at LD2 2004 Commissioned(Voest Alpine, Astria)

h) Imported design and engineering 2005 Commissionedfor hot metal desulphurization unit at LD1 (Kuettner GmbH)

i) Supply of imported engineering 2005 Commissionedfor new induced draught fans, electrics and accessories for the LID Converter GCP at LD1 (Ebara Corporation)

j) Adequacy checking BOF converters 2005 Commissionedfor augmentation of heat size at LD2 (SMS Demag, Germany)

k) Imported design and engineering 2005 Commissionedfor upgradation of Caster 2 and 3 at LD2 (VAI, Astria)

l) Imported design and engineering 2005 Commissionedfor hot metal desulphurisation unit 2 and 3 at LD2 (Kuettner GmbH)

m) Imported design and engineering 2005 Commissionedfor capacity increase of slab reheating furnace nos. 1 and 2 of HSM (Techint)

n) Supply of design and engineering 2005 Commissionedand training for 150 tph walking beam furnace to Rebar Mill (Bricmont)

o) Imported design and engineering 2005 Commissioned(Mother well Bridge-Clayton walker)

p) Supply of imported design and 2005 Commissionedengineering for LID gas boosters (Howden Power Limited U.K.)

q) Supply of imported design and 2005 Commissioneddrawing for Technology control system at HSM (SMS Demag, Germany)

r) Supply of imported design and 2005 Commissioneddrawing for Basic level automation at HSM (Alstom, USA)

s) Supply of imported design and 2005 Commissioneddrawing for dual zinc pot at CRM (CMI, Belgium)

t) Supply of imported design and 2005 Commissioneddrawing for BAF, CRM (LOI, Germany)

u) Supply of imported design and 2006 Under drawing for 4th Stove of 'G' Blast ImplementationFurnace (Paul Wurth Italia, Italy)

v) Supply of imported design and 2006 Under drawing for 'H' Blast Furnace (Paul ImplementationWurth Italia, Italy)

w) Supply of imported design and 2006 Commissioneddrawing for Sinter Plant No. 4(Outokumpu Technology, Germany)

x) Supply of imported design and 2006 Under drawing for LD2 expansion project. Implementation(SMS Demag, Germany)

y) Supply of imported design and 2006 Under drawings for convertor gas Implementationcleaning plants in LD shop 1 and 2(SMS Demag, Germany)

z) Facility for quantitative 2006 Commissionedestimation of minerals through Scanning Electron Microscope(Intellection Pty. Limited, Australia)

aa) Polarising Microscope with 2006 CommissionedPhotometer and Imaging at R & D (Leica Mikrosysteme Vertrieb GmbH, Germany and PRESI S.A., France)

ab) Variable Frequency Drive for 2007 CommissionedDescaling Pump Motor at Hot Strip Mill (ABB, India)

ac) Sinter Plant No. 4, having a 2007 Commissionedbed area of 204 sq mtr with ESP having lesser emission of 50 mg/Nm3

ad) Double Jaw Eye Vertical Tong 2007 Commissionedfor Batch Annealing Furnace at CRM

ae) SCADA System for Water 2007 CommissionedUtilities

af) Quantitative Estimation of 2007 CommissionedMinerals by SEM (Scanning Electron Microscope)

ag) XRD (X-Ray Defraction) for 2007 Commissionedquantitative phase and texture analysis

Management Discussion and Analysis:

Business Review:

Established in 1907, The Company completed 100 years in the financial year 2007-08. On 2nd April, 2007, the Company completed the acquisition of Corus Group plc, a Steel Company headquartered at UK for an Enterprise Value of USD 14.7 billion. Post the acquisition of Corus, The Company Group is now the world's 6th largest steel company with current steel deliveries of 32 million tonnes. Set up as Asia's first integrated steel plant and India's largest integrated private sector steel company, a century ago, it is now the world's second most geographically diversified steel producer, with operations in 24 countries and commercial presence in over 50 countries. The Jamshedpur operations in India is increasing its capacity from 5 mtpa to 10 mtpa by end 2010 and the Company has also signed MoUs to set up four greenfield steel projects in the states of Jharkhand, Orissa and Chhattisgarh in India and one in Vietnam.

Few years back, The Company embarked on a journey to pursue a Growth and Globalisation through organic and inorganic strategy to increase its capacity in excess of 50 mtpa by 2015. The Company identified several strategic levers including building a stronger base in India, acquisitions in both growing and developed markets, strategic investments in raw material assets and focus on branding.

In the following section the performance and impact of the global and regional economies have been discussed:

Global economy:

The financial markets in the last 12 months have been volatile triggered by the subprime mortgage crisis in the US. This has adversely affected the liquidity and the risk perception of the international capital markets. Inflation has increased around the World boosted by mainly increase in food and energy prices.

The real effective exchange rate for the US dollar has declined since mid-2007 as foreign investment in US bonds and equities has been dampened by reduced confidence in both the liquidity of and the returns on such assets, weakening of US growth prospects and interest rate cuts. The main counter part to the decline of the dollar has been appreciation of the euro, the yen, and other floating currencies such as the Canadian dollar and some emerging economy currencies.

In 2007, China's GDP registered a growth of 11.4%. The industrial output in China has been growing progressively from 8.5% in 1999 18.5% in 2007. The country's exports grew from 6.1 % in 1999 to 25.7% in 2007 whereas the imports experienced a stable growth of 18.2% in 1999 to 10.8% in 2007.

Japan's industrialised, social market economy is the world's third-largest, adjusted to purchasing power parity (PPP), after the United States and People's Republic of China.

As per the international Monetary Fund, Japan's GDP growth rate will be maintained at around 2.3% in 2007 after expanding by 2.2% in 2006. The yen has fallen to near 20-year low, largely due to widening interest rate differentials with other currencies, as also due to the low volatility in foreign exchange markets.

UK and European Economy:

Maintaining the growth trend of 2.9% in 2006, the UK economy recorded a growth of 3% in 2007, largely driven by consumption, business investment and residential construction. However, GDP growth slowed in the December 2007 and March 2008 quarters, due to falling residential construction and a slowdown in activity in the business and financial services sector, reflecting in part the impact of recent financial market turbulence.

GDP growth rate remained stable in the European Union (3.3% in 2006 and 3.1% in 2007). While the efficiency of labour and capital rose rapidly in the middle-income countries of the former Soviet Union (Russian GDP growth rate from 7.4% to 8.1%), the German economy featured a GDP growth of 2.5% in 2007 as compared to 2.9% in 2006.

The weak private consumption in Germany in 2007 was partly offset by strong exports and investments.

Indian Economy:

The economy of India, measured in USD exchange rate terms, is the fourth largest in the world, with a GDP of USD 1.50 trillion in 2007. The Indian economy continued the high rate of growth for the third year in succession. The last three financial years in India saw growth rates of 9.4%, 9.6% and 8.7% (2007-08). There has been a deceleration in the growth rate in 2007-08 as compared to the last two financial years owing to the slowing down of the economy and inflationary pressures within India.

The per capita income of India has more than doubled from USD 460 in 2000 to USD 1,089 in 2007. The primary contributor for the increase in the GDP has been the services sector led by communications (growth averaging 15.3% per annum for the last 5 years), with construction and transport following closely behind. The interest rates in India have risen in the recent years and the increase is evident through the prime lending rate, Long term Government Bond rates as well as the Bank rates. The Indian foreign exchange rate exhibited two-way movements during the year 2007-08. The Rupee appreciated against the USD by 5.6% from Rs. 43.59 in March 2007 to Rs. 39.27 by early January 2008. I n Q4 FY 2007-08, however, the Rupee depreciated easing to Rs. 39.97 per USD in March 2008. Overall, during FY 2007-08, the Rupee appreciated by 9.1x/0 against the USD and 7.5% against the GBP but depreciated by 7.7% against the Japanese Yen and by 7.8% against the Euro.

South-East Asian Economy:

The GDP of Singapore grew at a rate of 7.7% in 2007 which was lower than the growth rate of 8.2% in 2006. In Thailand, domestic demand was severely weakened by the high degree of political uncertainty in 2007, but the positive external balance helped in sustenance of the economy. The GDP growth rate was 4.8% in 2007 and is likely to remain at the same level in 2008 as well. While the Vietnamese economy was fuelled by expansion of the industrial and service sectors achieving a GDP growth rate of around 8%, the Indonesian economy buoyed by a recovery of investment, registered a GDP growth rate of around 6%.

The Management's discussion on the Steel industry and the Group's performance are given below:

Steel:

Global Steel Industry Overview:

The global crude steel production in 2007 was 1,344 million tonnes, showing an increase of 100 million tonnes over the 2006 level of 1,244 million tonnes. The following table shows the crude steel production of the top six crude steel producing nations:

In the last few years, the primary growth in steel production has been in China from 127.000 million tonnes in 2000 to 489.000 million tonnes in 2007. The growth in crude steel production in China is evident from Fig. 1.The global crude steel capacity has increased by 46.9% to 1.564 million tonnes in 2007 from 1.085 million tonnes in 2000 as depicted in Fig. 2. The additions to the capacity over the number of years have ranged from 32.000 million tonnes in 2002 to 112.000 million tonnes in 2005 and 108.000 million tonnes in 2007.

World Cride Steel Capacity:

The production and consumption position of steel in World in 2007 is shown below:

World Steel Production break-up (%)

China 34 EU (25) 15.9Other Asia 10.5NAFTA 10.5CIS 9.6Japan 9.3Others 7.2Other Europe 2.9

World Steel Consumption break-up (%)

China 30.9EU(25) 17.1Other Asia 14NAFTA 14.5CIS 4.7Japan 6.7Others 9Other Europe 3

China leads in terms of both production as well as consumption of steel globally. China's production in 2007 was 27 million tonnes higher than that of 2006.

The availability of raw materials at competitive prices continues to be one of the biggest concerns of the Steel industry. The seaborne iron ore demand was higher by 50.000 million tonnes in 2007 than estimated while increase in

supply was 39.000 million tonnes. The demand of seaborne metallurgical coal in 2007 was in line with the estimates, but the supply was lower than the demand mainly due to supply disruptions, delay in a number of expansion projects, damages from heavy rainfalls. For imported coke, there has been an increase in prices of Chinese coke due to incremental demand, limitation of export licenses and additional export taxes. The increase in coking coal costs also contributed to the increase in the coke prices.

European Steel industry overview:

EU consumption grew by almost 5% in 2007. The output remained stable throughout 2007, growing only by 2% overall as European Steel producers continued to closely monitor local demand conditions. Steel imports into the EU remained at a high level during 2007. Steel product prices remained broadly stable throughout the period but at a high level historically. Some modest price increases were achieved during the first part of the year, but pressure from imports and related high stocks resulted in reversal of the increase later in 2007. However, in Q4 FY 2007-08, EU demand and supply balance began to tighten supporting high prices.

Indian Steel industry overview:

Indian steel industry experienced a strong growth in demand, propelled particularly by the demand for steel in China. The production of crude steel at 53 million tonnes in 2007 was more than double the production level a decade back in 1998 (23 million tonnes) portraying the significant growth in the Indian Steel Industry. India now ranks fifth in terms of crude steel production among the top six crude steel producing nations in the world, the others being China, Japan, United States, Russia and South Korea. The Finished Steel production in India in the current financial year stands at 48 million tonnes registering an increase of 9% over the previous year. The broad breakup of the production and use of finished steel production in India is shown below:

Source: JPC

The exports out of India had a year on year negative growth of 3% and 36% for Flat products and Long Products respectively The imports, on the other hand, grew strongly for both the Flat Products (49%) as well as Long Products (46%).

Steel Outlook 2008:

According to the International Iron and Steel Institute (IISI), during the period 2008-2010, the world crude steel capacity is going to grow by 322.000 million tonnes, an increase of 21% over 2007 with a CAGR of 6.4%. While the addition in crude steel capacity in 2007 was 108.000 million tonnes, 2008 is going to experience an addition of 90 million tonnes. The additions to the global crude steel capacity in 2008,will be mainly in Asia (excluding Middle East and CIS countries): 68.000 million tonnes (2007: 88 million tonnes), EU (27): 4.000 million tonnes (2007: 2 million tonnes), CIS countries: 9.000 million tonnes (2007: 5.000 million tonnes). In Asia, the biggest additions in the capacity in 2008 will be by China with 60.000 million tonnes and India with 4.000 million tonnes.

Review of Operations:

1. Tata Steel:

I. Steel Division:

The production details of the Steel division of the company are shown in the following table:

The major reasons for lower production in FY 2007-08 as compared to FY 2006-07 were shutdowns related to the 1.8 million tonnes steel expansion project, outages of blast furnaces, power breakdown in the first quarter of the FY 2007-08 and refurbishment of coke oven batteries. The decrease in the saleable steel production was more as compared to the hot metal decrease mainly due to in time unavailability of hot metal for the reasons stated above.

The Cold Rolling Mill at Jamshedpur, achieved the best ever annual saleable production of 1.534 million tonnes (the earlier best was in FY 2006-07: 1.523 million tonnes). Individually, the Pickling line and Tandem Cold mill (PLCTM), Batch Annealing Furnace (BAF), Skin Pass Mill (SPM), Electrolytic Cleaning Line (ECL) surpassed their best ever annual production performances during the year. Special emphasis was laid on the product quality improvement in the automotive skin panel with close interaction at customer end and also by improving process

apability.

The Hot Strip Mill achieved the best ever annual production of 3.271 million tonnes in FY2007-08 (the earlier best was in FY 2006-07:3.239 million tonnes).

In the LD2 and Slab Caster unit, there was a ramp up of the heat weight resulting in improvement in productivity of the unit. The specific refractory consumption was also reduced by almost 7% to improve the cost effectiveness. There were other initiatives also bringing improvement in hot charging, strike rates, reduction in steel related defects for inputs in downstream facilities. As a result, the unit achieved its best ever annual production of 3.361 million tonnes (the earlier best was in FY 2006-07:3.299 million tonnes).

In the Long Products area, the New Bar Mill achieved its best ever performance of 0.549 million tonnes (the earlier best production was in FY 2006-07: 0.511 million tonnes). However due to lower availability of hot metal, the saleable production from all mills in long products was lower as compared to FY 2006-07. All the mills in the long products area focused on improvement in production efficiencies during the year. While the Wire Rod Mill reviewed and upgraded several key process equipments to sustain and increase throughput and rolling them at higher speeds, the New Bar Mill also improved upon its mill speed for various product categories.

The G Blast Furnace, in spite of various problems relating to raw material quality and availability during the FY 200708, achieved the best ever annual production of 2.048 million tonnes which was better then the earlier best ever production of 2.011 million tonnes achieved in FY 2006-07.

Other major production highlights of the division were:

Lower Specific Energy consumption at 6.655 GCal per tonne of crude steel as against 6.717 GCal per tonne of crude steel in FY 2006-07.

Reduction in dust emission to 0.88 kg per tonne of crude steel as against 0.96 kg per tonne of crude steel in FY 2006-07.

Highest ever usage of melting scrap of 0.42 million tonnes at LD shops as against previous best of 0.340 million tonnes in FY 2006-07.

III. Other Business Units:

a) Ferro Alloys and Minerals Division:

In FY 2007-08, FAMD experienced the effect of positive price changes for the Ferro-alloys market. Stable or marginally growing demand along with continued tightness of supply for a number of alloys pushed the prices up quite significantly as compared to the last financial year.

Global Ferro Chrome producers struggled to meet the soaring demand from consumers and High carbon Ferro Chrome spot market prices crossed the level of USD1/Ib CIF in the second half of FY 2007-08 for the first time in the history of the business. Fuelled by the Chinese Stainless Steel industry, the global traded volume of Chrome Ore/Concentrate had grown by about 400/o in FY 2007-08. India exported about 0.67 million tonnes of Chrome ore/Concentrate in FY 2007-08.

Domestic Ferro Chrome prices moved in tandem with the international market and prices increased by 45% in FY 2007-08 over FY 2006-07. FAMD retained the market leadership with 43% share in the domestic market in FY 2007-08 for Ferro Chrome.

Shortage of Manganese Ore, rising costs and frequent disruptions in various plants had led to substantial appreciation in both Silico Manganese and Ferro Manganese prices in FY 2007-08. Surge in Manganese Alloy consumption was primarily due to the robust growth in Carbon Steel production world-wide.

The curtailment in sales of Chrome Ore and Manganese was the main reason for the drop in the division's overall saleable production as well as sales.

b) Tubes:

In FY 2007-08 the Tube Industry in India grew at a rate of around 4%-5% over FY 2006-07. The Automotive industry, a customer of the Tubes industry, witnessed a slowdown, with the two wheeler segment completing the year with a negative growth of 7%. The construction sector, on the other hand, grew at a robust 10%-12% with large investments in Infrastructure.

Trend of Sales Volume:

Sales volume at the Tubes reached a level of 323k tonnes in FY 2007-08, a growth of 7% over FY 2006-07 (303k tonnes). The sales growth was experienced primarily in the Structural Tubes sector (46%) and Precision Tubes sector (7%) partly offset by a negative growth in the commercial sector (6%). The growth in the Precision Tubes sector could have been higher but for lower off take by the Automotive industry. The trend of the sales growth in the Tubes division can be seen in the above chart. The growth in sales volume over the last two years was made possible through capacity additions and modernisation.

In line with the modernisation effort, the division brought in 80 new products 60% of which have been commercialised.

c) Bearings Division:

The Automobile sector is the key consumer of the Bearings Industry. This sector, which had robust growth over the past few years, experienced a negative growth of over 40/0 during FY 2007-08. Lower off-take by auto industry, fresh capacities in the industry and increased in imports due to appreciation of the Rupee put severe pressure on the realisations of bearings.

The Division's major target customer segments of motorcycles and three wheelers had a negative growth of 8.56% and 10% respectively. As a consequence, sale of bearings declined by 5%, recording 27.610 million numbers. Bearings production during the year was 26.360 million numbers.

2. Corus Group [Tulip UK Holdings (No. 1) Limited]:

Corus's liquid steel production in FY 2007-08 was around 20.000 million tonnes. In Europe, Corus is the second largest Steel producer. Corus has four main operating divisions; Strip Products, Long Products, Distribution and Building Systems and Primary Aluminium. Europe, principally the EU, is the most important market for Corus for both its steel and aluminium products, accounting for 81% of total turnover in FY 2007-08. The steel division accounted for 96% of total turnover in the same period.

In the FY 2007-08, about 55% of Corus's crude steel production was rolled into hot rolled coil. Most of the remainder was further processed into sections, plates, engineering steels or wire rods, or sold in semi-finished form. Approximately 35% of hot rolled coil was sold without further processing, approximately 55% was further processed in cold rolling mills and coating lines and the remainder was transferred to Corus's tube mills for the manufacture of welded tubes. Principal end markets for Corus's steel products are the construction, automotive, packaging, mechanical and electrical engineering, metal goods, and oil and gas industries.

Corus's aluminium operations are entirely related to the production of primary metal for external customers. This production arises in two smelters, at Delfzijl in the Netherlands and Voerde in Germany.

3. NatSteel:

A wholly-owned subsidiary of The Company, NatSteel Asia is one of the top steel providers in the Asia Pacific. The Company acquired the steel business of NatSteel Limited in 2004.

The gross finished steel production of NatSteel for the FY 2007-08 as compared to FY 2006-07 is shown below:

FY08 FY07 Change (million (million (%) tonnes) tonnes) Gross Finished Steel Production 1.75 1.68 4%

NatSteel's operations cover South East Asia, Australia and China. The economic growth of the region continues to be robust though there is some trepidation on the impact of the sub prime crisis.

During the year the production increased in all the locations; the major contributors being NatSteel Xiamen (China) - 105K (39%), Singapore - 68K (10%); Natvina (Vietnam) - 40K (50%); Best Bar (Australia) - 29K (40%).

The construction activities continue to be strong in most of the markets in the region. The strong demand of construction steel and high prices has also increased the input price of scrap although the scrap-rebar spread remained at a reasonable level.

4. Tata Steel Thailand:

Tata Steel (Thailand) Public Company Limited (TSTH), established in 2002, is the largest steel producer in Thailand. It has three subsidiaries viz. NTS Steel Group, Siam Iron and Steel Company (SISCO) and The Siam Construction Steel Company (SCSC).TSTH manufactures long steel products and has an installed capacity of 1.700 million tonnes of finished steel per annum. Tata Steel acquired 67.66% equity in Millennium Steel (now Tata Steel Thailand) in 2005.

During FY 2007-08, the Company, through various improvement initiatives in operations, surpassed its rated capacity in liquid steel making all its 3 plants and recorded its highest ever production, both in terms of billets as well as finished bars and wire rods. The production attained is as under:

The Company recorded a production increase of 243,000 Mt of finished goods and sales increase of 316,000 Mt, over the previous year.

5. Tata Metaliks Limited:

Tata Metaliks became a subsidiary of The Company Limited with effect from 1st February, 2008. Earlier the Company used to be an Associate of Tata Steel Limited.

Tata Metaliks is engaged in the business of manufacturing and selling pig iron. Its plants, located at Kharagpur (West Bengal) and Redi (Maharashtra), consist of five Mini Blast Furnaces and related facilities including Captive Power Plants.

Raw materials:

Tata Steel:

The Company's Indian operations are self-sufficient in iron ore through its captive mines. It is 60% self-sufficient for coking coal.The balance amount of coking coal or coke is procured mostlythrough imports largelycovered byannual contracts. In the Jharia collieries, the raw Coal production increased by 4.5% over FY 2006-07 to 1.58 million tonnes; with all time lowest ash at 15.47% from Bhelatand and 16.4% from Jamadoba.The West Bokaro division achieved the highest ever raw coal production at 5.63 million tonnes (1.8 million tonnes of clean coal at 13% ash). The iron ore sized production grew by 2.7% to 4.56 million tonnes and the fines production was higher by 3.3% to reach a level of 5.46 million tonnes. The Noamundi and Joda iron ore mines have achieved 1.96% and 1.98% Fines Alumina respectively with respect to the previous best of 2% in FY 2006-07.

Corus Group:

The principal raw materials in the carbon and engineering steel making processes are iron ore, metallurgical coal and steel scrap. There was an increase of 9.5% in the market reference price of iron ore fines in calendar year 2007 compared to 2006, with around a further 65% increase in 2008. During 2007, growth in demand, predominantly from China, was offset to some extent by increased availability from Australia, Brazil, India and China. However, the continued strong growth in demand into 2008 has resulted in the substantial increases now experienced. The price of hard coking coal decreased by 16% in 2007 compared to 2006. However, the supply/demand balance tightened during 2007, caused by increased growth in Asian demand, delays to new projects and supply chain bottlenecks. This was exacerbated by the impact of floods in Australia and has resulted in prices more than doubling in 2008.

Corus has also been subject to the movements in worldwide energy prices during the year, and saw natural gas and electricity prices rise substantially in 2007 compared with 2006.

Research and Development:

Tata Steel:

Research and Development were carried out in the areas of raw materials, blast furnace productivity, steel making, product development, process improvement etc. Several thrust area projects were taken up:

8% Ash in Coal without reducing yield Complete beneficiation of iron ore
Improving Blast Furnace productivity.
Lowering Phosphorus in Steel making Development of Advanced Coatings.
Flat Products for Automobiles.

During the year, some of the successful research and development activities that were taken up are:

Development of Nano coating to improve corrosion resistance of re-bars.
Development of Plasma cleaned wire rods to avoid pickling.
Substituting BHQ from Noamundi and Joda in place of Quartz in Blast Furnace.
Develop Hydro-formed tube for Tata Nano application.

Corus Group:

Process developments:

Corus is a major partner in the0 ULCOS (Ultra Low CO, Steel making) project, aimed at developing technology to achieve a 5% reduction of carbon emissions by 2050. In 2006, a programme focusing on four technologies was devised:

A new blast furnace process using pure oxygen and top gas recycling.
ISARNA-a new smelting reduction process with very high efficiency.
A new direct reduction process using gas or hydrogen, with geological storage of CO2.
Direct production of steel by electrolysis of iron ore.

Product developments:

The main focus for strip products continued to be the further development and improvement of steel grades with high strength and good formability, such as the 'Dual Phase' family of steels.

Work continued on the improvement of chromium-free passivation coatings for tinplate and for hot-dip galvanised material. For tinplate, this work is being carried out with other tinplate producers, lacquer suppliers and can makers, with the aim of developing one single, standardised, chromium-free passivation coating worldwide.

A new metallic coated steel product has been developed jointly with Salzgitter with a coating containing zinc, magnesium and aluminium, which gives higher corrosion resistance than conventional metallic coatings.

Two new families of rail steel have been developed, targeting the key degradation mechanisms of rail, namely rolling contact fatigue (RCF), resistance and wear. Bainitic and ultrahigh carbon (UHC) rails both display exceptional resistance to RCF and could provide cost effective solutions to meet customer requirements.

Application developments:

A successful full scale plant trial with High Efficiency Combustion burners in one of the reheating furnaces at Llanwern works has proven that applying this technology leads to significant energy savings as well as substantial reduction of CO, and nitrogen oxide emissions. Based on these results, it is planned to apply this technology to reheating furnaces in IJmuiden.

e) Strategy:

In terms of value creation, the Tata Steel Group strategy is twofold:

1. To increase the quality of earnings of its existing assets, Tata Steel Group will pursue the optimisation of its

uropean assets, restructure assets that are of low profitability and continue to derive benefits through continuous improvement and synergies.

2. To generate strategic growth. This will be pursued through capacity expansions and securing access to raw materials. The Tata Steel Group is expanding its capacity in India through expansion of its current operations in Jamshedpur to 10 million tonnes and through the construction of a 6 million tonnes greenfield' site in Orissa. Other greenfield opportunities in Asia are being assessed. The Tata Steel Group is also looking at further integration upstream in raw materials. In India, it is currently 100% integrated on iron ore and 60% on coal.

The Tata Steel Group has a vision to become the world steel benchmark for value creation and corporate citizenship. The corporate citizenship benchmark means providing a safe working place, respecting the environment, caring for its communities and demonstrating high ethical standards.

In terms of communities, the Tata Steel Group promotes and encourages economic, environmental, social and educational development. In India, its focus is on fulfilling certain basic requirements including healthcare, food security, education and income generation through the development of rural infrastructure, empowerment and community outreach programmes. In Europe, it is actively involved in a broad range of community initiatives, such as being premier sponsor of the British Triathlon.

f) Finance:

Financing of Acquisition of Corus:

i. Financing Structure:

The financing structure of the Corus transaction has been reorganised to achieve fiscal unity in the Netherlands and consequent tax efficiencies.

ii. Funding Structure:

The bulk of the financing for the Corus acquisition has now been completed with all the bridge funding having been paid off through a mix of debt, equity and internal accruals. The funding structure as on 31st March, 2008 is as follows: in GBP Bn in USD Bn

Equity Capital fromTata Steel Limited 3.75 7.45

Non-recourse long-termdebt at Corus 3.15 6.26 Total 6.90 13.71

The sources of the contribution towards equity capital included the following:

Tata Steel Asia Holdings Pte. Limited and Tulip UK Holdings (No. 1) Limited drew down GBP 2.21 billion of bridge loans. These loans were repaid using monies infused by Tata Steel Limited out of equity issues, CARS and loans as described below and also out of internal generation.

The Company had allotted to Tata Sons, on a preferential basis, 27,000,000 ordinary shares (at a price of Rs. 516 per share) and 28,500,000 warrants to subscribe to an equal amount of ordinary shares. Tata Sons fully exercised the warrants and 28,500,000 ordinary shares were issued to Tata Sons at a price of Rs. 484.27 per share, for total proceeds to the Company of Rs. 13800.000 Millions

The Company issued USE) 0.875 billion of 1% Foreign Currency Convertible Alternative Reference Securities ('CARS'). The CARS accrue interest on the outstanding principal amount at a rate equal to 1% per annum and are classified as unsecured debt on the balance sheet of the Company. Between 4th September, 2011 and 6th August, 2012, each security is convertible at the option of holder of the security, at a conversion price of Rs. 758.10 per share into a Qualifying Security issued by the Company. The Company must redeem all outstanding CARS principal amount together with accrued and unpaid interest no later than 5th September, 2012.

The Company entered into a loan agreement with the State Bank of India and other banks for Rs.95000.000 Millions January 2008 Rs. 90000.000 Millions was repaid with proceeds from the Company's Rights Issue and Rs. 5000.000 Millions was repaid on 28th February, 2008.

In November 2007, the Company made a rights issue offering to shareholders in India, (i) 1 ordinary share for every five ordinary shares at a price of Rs. 300 per share and (ii) 9 cumulative compulsorily convertible preference shares ('CCPS') for every 10 ordinary shares at a price of Rs. 100 each. A total of 121,611,464 ordinary shares and 547,251,605 were allotted pursuant to the rights issue. Every six CCPS issued will be automatically converted into one ordinary share of the Company on 1st September, 2009. Total proceeds from the rights issue aggregated Rs. 91210.000 Milliond. In January 2008, the Company used the proceeds from the rights issue to repay the loan from the State Bank of India described above.

In addition, the non-recourse long term debt (at Tata Steel UK) was syndicated. GBP 3.12 billion of Bridge Funding was drawn in full into Tata Steel Netherlands as borrower. Based on it's assessment of the appropriate quantum of debt that could be serviced by Corus, the Company restructured the initial higher cost inflexible leveraged debt financing consisting of loans and bonds. This even involved a change in the financing banks. The replacement financing package consisting solely of lower cost pre-payable corporate term loans offered substantial savings and benefits to the company. This was a GBP 3.670 billion senior facility consisting of multiple tranches of term loans and a GBP 0.5 billion five year revolving credit facility. These facilities are secured by the assets of Corus.

g) Status of Projects:

Brownfield Projects of Tata Steel:

The Company is on its way to reach a crude steel capacity of 10 million tonnes per annum by FY 2011. The first phase of reaching the crude steel capacity of 6.8 million tonnes per annum is nearing completion. The new Sinter Plant No. 4 was commissioned in 2007 and the new H-Blast Furnace was blown-in on 31st May, 2008.The expansion programme for LID] Shop to raise the capacity of the Shop to 3.3 million tonnes per annum is under execution along with other units like the 3rd Billet Caster and auxiliary facilities like the De-sulphurisation plant, Slag handling system, Hot Metal handling system etc.

The Company has simultaneously initiated work on the second phase expansion programme of 3 million tonnes per annum. This programme includes the upgradation of Iron Making facilities along with setting up of new facilities such as steel making shop, Thin Slab Casting and Rolling Mill (TSCR) and a palletizing plant with a capacity of 6 million tonnes per annum capacity. Major orders for supply of equipment for steel making shop and TSCR have been placed. The concept and implementation strategy for up-gradation of old blast furnaces and setting up of Palletising plant is under finalisatlon. The project is progressing as per schedule.

Greenfield Projects of Tata Steel:

The Company has begun the process of building a new integrated steel plant at Kalinganagar, Orissa with a total capacity of 6 million tonnes per annum to be set up in two phases of 3 million tonnes per annum each. The land acquisition and rehabilitation and resettlement work is in progress. Till May 2008, 86% of land has been registered in the name of the Company. As a part of rehabilitation and resettlement activity, 640 families out of 1,195 displaced families have been shifted to rehabilitation colonies and transit camps. To accommodate them, two rehabilitation colonies and five transit camps are operational. 310 nominees have been trained in skill development centres and 270 trained youth are already engaged with construction partners A letter has been submitted to the Government of Orissa confirming fulfillment of MoU conditions with request for recommendation of the mining lease.

The Company has also entered into a Memorandum of Understanding with the State Governments of Chhattisgarh and Jharkhand for setting up steel plants. The process of submitting applications for various licenses for mining leases and environmental clearance has been-bated. The State Governments have prepared and offered the rehabilitation policy and compensation package to the project affected families The process of acquisition on of land in both the states is in progress.

Raw Materials Projects:

Global Mineral Resources (GMR) group identified various iron ore and coal opportunities and is in the process of evaluating these projects Status of coal, iron ore and limestonnee projects 1s as follows.

Riversdale, Mozambique, November 2007 - Tata Steel and Riversdale Mining Limited entered into a Joint Venture under which Tata steel has a 35% stake in Mozambique Coal Project. The licences of the joint venture cover an area of 24,960 hectares. The feasibility studies for the project are in progress.

Mount Nimba Iron Ore, Ivory Coast, December 2007 Tata Steel entered into joint Venture for development of Nimba Iron Ore project in Cote d'Ivoire with with Tata Steel having a mayor shareholding. Exploration and feasibility studies would commence in the year 2009.

Uyun Limestonnee Project Oman, January 2008:

Tata Steel entered into a joint Venture agreement with shareholders of AI Ritual LIC for 70% stake in AI Rimal LIC Application for exploration license has been made and feasibility studies would be taken up soon on grant of exploration license.

Tata Steel:

The Company has in place adequate internal control systems and procedures commensurate with the size and nature of its business. The effectiveness of the internal controls is continuously monitored by the Corporate Audit Division of the Company. Corporate Audit's main objective is to provide to the Audit Committee and the Board of Directors, an independent, objective and reasonable assurance of the adequacy and effectiveness of the organisation's risk management, control and governance processes. Corporate Audit also assesses opportunities for improvement in business processes, systems and controls and may provide recommendations, designed to add-value to the organisation. It also follows up on the implementation of corrective actions and improvements in business processes after review by the Audit Committee and Senior Management.

The scope and authority of the Corporate Audit Division is derived from the Audit Charter approved by the Audit Committee. The Charter is designed in a manner that the Audit Plan is focused on the following objectives:

Review of the identification and management of Risks.
All operational and related activities are performed efficiently and effectively.
Significant financial, managerial and operating information is relevant, accurate and reliable and is provided timely.
Resources are acquired economically, used efficiently and safeguarded adequately.
Employees' actions are in accordance with the Company's policies, procedures, Tata Code of Conduct and applicable laws and regulations.
Significant legislative and regulatory provisions impacting the organisation are recognised and addressed appropriately.
Opportunities identified during audits for improving management control, business targets and profitability, process efficiency and the organisation's image are communicated to the appropriate level of management.
Shareholders' and other Stakeholders' wealth and welfare are preserved, protected and enhanced.

The audit activities are undertaken as per the Annual Audit Plan developed by the Corporate Audit Division based on the risk profile of business processes/sub-processes of various functions. The Audit Plan is approved by the Audit Committee which regularly reviews compliance to the Plan.

During the year, the Audit Committee met regularly to review the reports submitted by the Corporate Audit Division. All significant audit observations and follow-up actions thereon are reported to the Audit Committee.

The Audit Committee also met the Company's Statutory Auditors to ascertain their views on the adequacy of internal control systems in the Company and their observations on financial reports. The Audit Committee's observations and suggestions were acted upon by the Management.

Corus Group:

Corus has a well-established and substantial internal audit function that reports to the Director Finance on a day-to-day basis, but which also has a direct link with and access to the chairman of the Audit Committee who meets with the Director Audit several times each year. The Audit Committee receives reports from the internal audit function four times a year and also considers the terms of reference, plans and effectiveness of the function. The internal audit function works closely with the external auditors. It provides independent and objective assurance to the Board, the Audit Committee and the Executive Committee on the systems of internal control employed in Corus and provides a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance procedures.

Tata Steel:

Tata Steel has been on a path of accelerated growth with foray into several geographies. Associated with such growth is the resultant change in the risk profile. The Company today faces greater complexities/challenges and even greater expectations from its stakeholders. The Company, therefore, needs to evaluate how much risk the company is taking in light of its growth initiatives. In other terms, the residual risk in the expected return needs to be formally recognised and disclosed.

In the past, the Company's Risk Management framework was based on the Tata Business Excellence Model ('TBEM'). This framework has served us very well as the Company modernised, pursued the goal of being one of the lowest cost producers of steel and adopted an approach of Value Based Management in order to maximise the shareholders' value. Given the pace and complexity of the current growth with its associated risks, Tata Steel now is in the process of implementing a more structured approach in the form of Enterprise Risk Management (ERM).

The key objectives of the Company through ERM are:

1. To enshrine the process of ERM as a usual Business Process and integrate into all decision making and planning processes.

2. To ensure that all levels of Management identify and monitor risks through a properly defined framework.

3. To provide periodic information and updates to the Board and the Shareholders on the significant risks and the ways of mitigating the same.

Continuing with its best-in-class approach, the Company endeavours to create a 'Risk Dash Board' for periodic reporting to the Management as decision support and to assist in developing better controls aligned to the best practices in mitigating the risks.

The ERM initiative is currently under implementation and is expected to be completely rolled out in the financial year 2008-09.

Some or the key risks the Company has been monitoring, reviewing and managing are:

Raw Material Linkage:

While the stand alone raw material security of Tata Steel is 80%, with the acquisition of Corus the combined security of the group stands at 22%.

With a view to increasing its raw material security so as to maintain its cost competitive position and to de-risk supplies Tata Steel continues to look at opportunities for backward integration guided by the following factors: favourable geographical operations, resource potential with suitable quality, favourable political, socio-economic conditions and infrastructural support.

Accordingly, the Company has entered into three significant joint venture agreements with respect to coal iron ore and limestone properties with large resource base.

Post Acquisition Integration Risk:

Post Acquisition, Tata Steel recognises that there could be considerable risk emanating from a possible lack of adequate alignment of management on strategic issues and in common functional areas. The Tata Steel Group has therefore taken some substantive measures to mitigate the above risks:

a) An Operating Model has been instituted to govern management collaboration and decision making in areas such as Finance, Strategy, IT, HR, Continuous Improvement. A Joint Executive Committee, comprising executive leadership of both entities, provides high level direction and guidance.

b) To ensure that synergies in operations are identified and implemented for pre-defined bottom line impact, the following enabling mechanisms have been set up soon after the acquisition transaction was completed:

Focused integration teams.
Setting up of a Strategy and Integration Committee.

Setting up an Integration Programme Office to facilitate synergy identification and enable smooth working of integration teams.
An external independent party has been engaged to audit implementation plans and to track synergy realisation.
Review of synergy implementation and realisation The above approaches are expected to mitigate risks associated with realisation of synergies

Growth Execution Risk:

Tata Steel has undertaken several Greenfield projects at low cost locations to ensure that modern upstream facilities meet the requirements of the finishing/downstream facilities operating at locations closer to the market. The Greenfield ventures require balancing of various stakeholders needs. Hence the Company adopts the framework of Corporate Sustainability Management System and Triple Bottom Line performance (Economic, Environmental, and Societal) reporting. This facilitates the Company's efforts to proactively manage concerns and address the needs beyond compliance to norms. The Company's goals of ensuring safety, improved quality of life and environmental sustainability are cascaded down the organisation through the deployment of its Environmental, Health and Safety Policy. The project teams also ensure that they liaison with the government to ensure that the right rehabilitation package is offered to those who offer their land.

During formulation of the scheme, focus is kept on selecting the most suitable technology. The orders are placed with firm and fixed prices so that the likely increase in cost does not affect project cost. Further, Sensitivity Analysis is done considering variation in capital cost, manufacturing expenses and sales price. Along with this Sensitivity Analysis the project feasibility is analysed for different scenarios. The overall project cost is monitored minutely and reviewed on a weekly basis.

Business and Operational Risks:

Market Risks:

Tata Steel addresses the risk of cyclicality of the Steel industry by marinating rich product mix and higher value added products whose volatility is lower.

Moreover, the industry itself has been undergoing some structural changes with Consolidations. These changes are expected to bring in greater stability to prices.

Regulatory and Compliance Risks:

The Government plays a key role in the economics of a Steel industry. It has a role as a resource allocator (the mining policies of the Government), as Competitor (the public sector steel companies) and as Regulator. In volatile times the regulatory risk rises with measures like reduction in import duties, levy of export duties and withdrawal of DEPB benefits, threats of price curbs etc. Tata Steel counters this risk by being a role-model corporate citizen and playing an important role in contributing to the Nation building.

Tata Steel is the second largest steel producer in terms of Geographical spread of its facilities. The Company recognises that this spread across various countries increases the compliance risk and hence the Company has set up a focused team headed by a Group Head for Corporate Assurance and Compliances to proactively deal with and mitigate all such potential concerns and issues.

Technology Risks:

Tata Steel with its modernisation plans has ensured that it deploys the best technologies to ensure quality, cost-efficiency and environment-friendly processes. Through acquisition of Corus and with new Greenfield ventures, Tata Steel has ensured that it has diversified the concentration risk in single technology of Iron and Steel making. Moreover the Research and Development team of Corus addresses the need for greater R & D capability of the company.

Safety and Environmental Risks:

In the developed world, industries have been facing rising environmental costs due to the increased concerns on Global Warming. It is, therefore, a challenge and responsibility for the Steel industry to be the trustee in conservation of nature for future generations. In Tata Steel, the impact of the Company's products, services and operations on employees, society and environment are systematically analysed through stakeholder engagement, 'risk analysis' under ISO-14001, OHSAS-18001 and 'Life Cycle Assessment' of products.

Tata Steel has also adopted the best-in-class DuPont's safety programme. Every activity in Tata Steel is carried out not only with a cost efficient, quality conscious purpose but also with a view for safe practice.

Corus Group:

The key business risks affecting Corus are as follows:

Health, safety and environmental matters:

Corus's businesses are subject to numerous laws, regulations and contractual commitments relating to health, safety and the environment in the countries in which it operates. The risk of substantial costs and liabilities related to these laws and regulations are an inherent part of Corus's business. Corus has policies, systems and procedures in place aimed at ensuring substantial compliance and there is a strong commitment from the Board and the Executive Committee to enforce compliance, to continuously improve safety performance and to minimise the impact of Corus's operations on the environment.

Financing:

TSL financed the acquisition of Corus in part by a significant level of debt. On 30th April, 2007, TSUK signed an agreement for #3,670 million of senior secured facilities for this purpose and to provide future working capital for Corus, which had final maturities of between five and seven years. The agreement is subject to financial covenants. Repayment of the debt and adherence to the covenants represent risks. The forecast requirements of Corus are closely monitored and 'downside' sensitivities undertaken regularly to ensure the adequacy of facilities, and to assess actual and projected adherence to covenants.

Key personnel:

Corus's ability to attract and retain good quality, appropriately qualified and experienced staff is important to the achievement of its objectives. Corus has in place an effective benefits structure including long-term incentives and a talent management programme to optimise development of employees. There is regular communication with employees through various means and during 2007 the operating model of the new Group has been extensively communicated throughout the organisation.

Pensions:

Corus provides retirement benefits for substantially all of its employees, including defined benefit plans. The market value of pension assets and liabilities is significantly greater than the net assets of Corus and therefore, any change can have a material impact on Corus's financial statements as well as impacting the level of company pension contributions. Corus has put in place a framework to manage pension risks and works with Schemes 'Trustees to ensure that obligations remain affordable and sustainable. A range of measures has already been adopted by the principal schemes in Corus to manage liabilities and to protect against investment market risk exposure, whilst maintaining asset performance. Further actions will be considered as and when appropriate. ‘

Corus Group:

Corus believes that respect for the environment is critical to the success of its business. It is committed to minimising the environmental impact of its operations and its products through the adoption of sustainable practices and continuous improvement in environmental performance. To implement its environmental policy, systems are in place that focuses on managing and minimising the effects of operations. 100% of Corus's manufacturing operations are certified to the independently verified international environmental management standard, ISO 14001.

Climate change is one of the most important issues facing the world today. Corus recognises that the steel and aluminium industries are significant contributors to man-made greenhouse gas emissions as the manufacture of steel produces carbon dioxide (CO2), and the manufacture of primary aluminium generates both CO2, and perfluorocarbons (PFCs). On emissions, Corus wants to demonstrate that it will be part of the climate change solution, reducing its CO2, footprint by at least 20% by 2020.

Corus has made a voluntary agreement with the Dutch government to benchmark its energy efficiency against world-best standards. In the UK, an agreement has been negotiated with the government to reduce total energy consumption by 14.7% compared to 1997 levels by 2010. In February 2008 Corus announced an investment of Pounds 60 million in energy management technology at its Port Talbot site, an investment that will reduce CO2, emissions. In addition to these improvements, Corus is also working with other steelmakers in Europe on a major research and development project, ULCOS with the ambitious objective of reducing carbon emissions by 50% by 2050.

The EU Emissions Trading Scheme (EUETS) came into force on 1st January, 2005. The scheme currently focuses on CO2, emissions and applies to various production processes, including those used in the production of steel. Each EU member state has its own nationally negotiated emission rights allowance, which is allocated back to CO2, emitting sites. Sites have permission to emit CO2, up to the value of their rights allocation. Any surplus can be sold and any deficit can be purchased on the emission rights market. Phase 1 of the EUETS covered 2005 to 2007 and Phase 2 covers 2008 to 2012, with usage of rights being externally verified and reconciled annually. Failure to possess adequate rights to match emissions was penalised at Euro 40 per tonne of CO2, in Phase 1, increasing to Euro100 per tonne in Phase 2, plus the cost of purchasing these rights. The Phase 2 emission rights trading price at the end of March 2008 was approximately Euro24 per tonne.

Corus met its environmental obligations in Phase 1 of the EU ETS and expects to do the same in Phase 2. CO2 allocations to Corus under the UK National Allocation Plan (NAP) broadly reflected its requirements for Phase 1. Under the Dutch NAP for Phase 1, Corus was short of rights for Phase 1, although overall Corus was in surplus for Phase 1. Phase 2 allocations have been determined for both the UK and the Netherlands and, whilst these will provide a significant challenge, overall they should again be broadly sufficient to meet requirements with the UK in surplus and the Netherlands in deficit. Any deficit in emission rights in the Netherlands has been and will be met in the first instance from any surplus in the UK.

Continued attention is being given to development of products that have a better environmental profile or that have inherent environmental advantages. For example, to help automotive manufacturers reduce the weight of their vehicles in order to make them more fuel efficient and more environment friendly. Some of these developments are discussed in the Technology section.

Corus aims to contribute positively to the communities around or near to its operations. Apart from providing employment for many thousands of people, it actively participates in community initiatives and encourages biodiversity and nature conservation.

NatSteel:

Towards its contribution to corporate social responsibility, NSA has invested around S$20 million in plant and equipment for energy conservation, recycling and pollution and waste reduction. NatSteel Asia's corporate philosophy embraces community giving and responsible environmental stewardship. NatSteel Asia actively upholds a comprehensive Environment, Safety and Health policy to:

Maintain high environmental, occupational safety and health standards through a regular system of risk assessment and management.
Be energy efficient.
Reduce, reuse or recycle, improve environmental, occupational safety and health performances, through R & D, training, and periodic review.
Promote best practices in these areas.

o) Human Resource Management and Industrial Relations:

Tata Steel:

Industrial relations remained normal at all locations. The men on roll in the Company as on 31st March, 2008 were 35,870 as compared to 37,205 as on 31st March, 2007. The development of human resources is a key strategic challenge in order to prepare people for future responsibilities in terms of professional skills as well as business skills. The Company is investing in the modernisation of the plant and training of manpower for upgrading their skills. Further, it is planned to redeploy the surplus manpower to various greenfield projects.

Corus Group:

At the end of March 2008 the number of employees in Corus was 41,900, compared to 41,100 on acquisition of Corus on 2nd April, 2007.

Corus has experienced no significant industrial relations problems during the year. Well-developed procedures have operated in all parts of Corus for a considerable time for the purpose of consulting and negotiating with Trade Unions, the European Works Council and employee representatives. Approximately 78% of UK employees are members of Trade Unions, with the equivalent figures for the Netherlands and Germany estimated at 45% and over 50% respectively.

The British Steel Pension Scheme (BSPS) is the principal defined benefit pension scheme of Corus in the UK. Members contribute to the scheme at the rate of 60/0 of pensionable earnings. Following the triennial valuation as at 31st March, 2005, the Actuary certified that company contributions to meet the cost of future service benefits should be 10% in the Main Section with effect from i st April, 2006, subject to review at future actuarial valuations.

As a result of the acquisition of Corus by TSL on 2nd April, 2007, the Company held discussions with the Trustees of the BSPS and the Corus Engineering Steels Pension Scheme (CESPS) about the security of the schemes. Following these discussions, the Company agreed to increase contributions to the BSPS Main Section from 10% to the full actuarial headline rate of 12% from the date of acquisition until 31 st March, 2009, and to procure that its contributions to the BSPS will not be less than 1096 for the period up to and including 31 st March, 2012. The Company also agreed to contribute f13.5 million per annum over two years in support of acceleration of the BSPS investment de-risking strategy and to make a cash injection of f126 million to meet the funding deficit on an IAS19 basis in the CESPS.

The next formal valuations of the BSPS and CESPS are scheduled to take place as at 31st March, 2008 and 5th April, 2008 respectively.

The Stichting Pensioenfonds Hoogovens (SPH) scheme is the principal pension scheme of Corus in the Netherlands. It is a defined benefit scheme and contributions in FY 2007-08, which can vary according to the funding ratio of the scheme, stood at 11 % from the contributing company and 6.5% from members relative to gross pensionable earnings.

NatSteel:

NatSteel employs over 3,000 employees across Singapore, China, Thailand, Vietnam, Malaysia, the Philippines and Australia. NSA has achieved many national accolades in recognition of its commitment to employees. It achieved the People Developer Standard in recognition of its quality people development practices and the Work-Life Excellence Award. The Company also won the Singapore Health Award (Gold) for three consecutive years.

p) Cautionary Statement:

Statements in the Management Discussion and Analysis describing the Company's objectives, projections, estimates, expectations may be 'forward-looking statements' within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company's operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

Business :

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

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.

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.

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.

Strategic Business Units

Apart from the main Steel Division, Tata Steel's operations are grouped under the following Strategic Business Units:

Bearings Division : Manufactures ball bearings, double row self-aligning bearings, magneto bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, water pumps, etc.

Ferro Alloys and Minerals Division : Operates chrome mines and has units for making ferro chrome and ferro manganese. It is one of the largest players in the global ferro chrome market.

Agrico Division : Tata Agrico is the first organised manufacturer in India of hand tools and implements for application in agriculture.

Tata Growth Shop (TGS) : Has designed, developed, manufactured, erected and commissioned thousands of tonnes of equipment ranging from overhead cranes to high precision components, including a rocket launch pad for the Indian Space and Research Organisation.

Tubes Division : The biggest steel tube manufacturer with the largest market share in India, it aspires to strengthen its market presence by expanding and modernising its commercial and precision tube manufacturing capacity.

Wire Division : A pioneer in the manufacture of steel wires in India, it produces coated and uncoated wires, branded as Tata Wiron. The division also operates a wholly owned subsidiary in Sri Lanka.

Corus : Europe’s second largest steel maker with operations in the UK and mainland Europe and over 40,000 employees worldwide. Its long and strip products cater to the construction, automotive, packaging, engineering and other markets worldwide. Corus is implementing major investments at its plants at IJmuiden, in the Netherlands and at Scunthorpe in the UK as part of its drive to strengthen product differentiation, improve operational efficiency and reinforce existing competitive position, particularly in the construction and automotive sectors, including the development of new advanced high strength steels.

(www.corusgroup.com)

Tinplate Company of India Limited (TCIL) : With a market share of over 35%, it is the industry leader in India. It has the capability to supply all tinning line products including electrolytic tinplate / tin-free steel and cold-rolled products.

(www.tatatinplate.com)

Tayo Rolls Limited : India's leading roll manufacturer and supplier, the company produces rolls which find application in integrated steel plants, power plants, the paper, textile and food processing sectors, and the government mint.

(www.tayo.co.in)

Tata Ryerson Limited (TRYL) : TRYL Is in the business of steel processing and distribution. It offers hot and cold rolled flat steel products in customised sizes and quantities through processing services and materials management services.

(www.tataryerson.com)

Tata Refractories Limited (TRL) : It produces High Alumina, Basic, Dolomite, Silica and Monolithic Refractories and offers design, procurement and re-lining applications services. It is one of the few companies worldwide to produce silica refractories for coke ovens and the glass industry. The Company has a basic bricks manufacturing unit in China.

(www.tataref.com)

Tata Sponge Iron Limited (TSIL) : TSIL is the first Indian sponge iron plant based on Tata Steel's Direct Reduction Technology. Its major product lines are sponge iron lumps and fines.

(www.tatasponge.com)

Tata Metaliks : Amongst the top wealth creating companies (EVA+) in the country, Tata Metaliks is engaged in the business of manufacturing and selling foundry grade pig iron.

(www.tatametaliks.com)

Tata Pigments Limited : TPL's range of products includes oxides of iron, dry cement paint, exterior emulsion paint and distemper. Its products are used in paints, emulsion, cement floors, plastic etc.

(www.tatapigments.com)

Jamshedpur Injection Powder Limited (Jamipol) : JAMIPOL manufactures carbide de-sulphurising compounds which are used for de-sulphurising hot metal for the production of low-sulphur, high-quality steel.

(www.jamipol.com)

TM International Logistics Limited (TMILL) : TMILL provides material handling and port operation services at Haldia and Paradip Ports in addition to providing freight forwarding and chartering services.

(www.tmilltd.com)

mjunction services limited : mjunction, operating at the cutting edge of Information Technology, is a 50:50 venture of SAIL and Tata Steel. It is India's largest eCommerce company and the world's largest eMarketplace for steel. mjunction offers a wide range of selling, sourcing and knowledge services that empower businesses with greater process efficiencies.

(www.mjunction.in)

TRF Limited : TRF, one of India's leading companies in the business of design, manufacture, supply, installation and commissioning of engineered-to-order equipment and systems in the areas of bulk material handling, processing, reclaiming and blending. TRF has also made its mark in the fields of coke oven equipment, coal dust injection systems for blast furnaces and coal beneficiation systems.

(www.trfltd.com)

Jamshedpur Utility and Service Company Limited (JUSCO) : Re-engineered out of Tata Steel's town services, JUSCO is a wholly owned subsidiary of Tata Steel and is the country's first enterprise that provides municipal and civic services for townships. JUSCO is the only EMS 14001 civic services provider in the country.

(www.juscoltd.com)

The Indian Steel and Wire Products Limited (ISWP) : Recently acquired by Tata Steel, ISWP has two units - a wire unit comprising wire drawing mills, wire rod mills and a fastener division and a steel roll manufacturing unit named Jamshedpur Engineering and Machining Company - JEMCO.

Tata BlueScope Steel Limited : A joint venture with BlueScope Steel Limited, Australia, Tata BlueScope Steel Limited offers a comprehensive range of branded steel products for building and construction applications. The Company is constructing a state-of-the-art metallic coating and painting facility at Jamshedpur.

(www.tatabluescopesteel.com)

Dhamra Port Company, Orissa : A JV between Larsen and Toubro Limited and Tata Steel Limited, the company will build a deep-draft (18 metres) all weather port on the east coast of India. The port will handle 80 million tonnes per annum of cargo.

(www.dhamraport.com)

Hooghly Met Coke and Power Company : A joint venture with West Bengal Industrial Development Corporation Limited, HMCandPC envisages an annual met coke production capacity of 1.2 million tonnes and 90 MW of electric power.

(www.hooghlymetcoke.com)

Lanka Special Steel Limited : The only unit in Sri Lanka manufacturing galvanised wires.

Sila Eastern Company Limited : Established to develop limestone mines in Thailand, mainly for the captive use of Tata Steel.

NatSteel Asia (NSA) : A leading supplier of premium steel products for the construction industry. NatSteel Asia became a 100% subsidiary of Tata Steel in February 2004. NSA produces about 2 MT of steel products annually across its regional operations in seven countries.

(www.natsteel.com.sg)

Tata Steel Thailand : The company is the dominant steel producer in Thailand. The company has the capacity to produce 1.7 million tonnes of steel for the construction industry per year.

(www.tatasteelthailand.com)

Tata Steel KZN : Proposes to set up high carbon ferrochrome plant in South Africa. The plant is slated to be commissioned by October 2007 with an annual production capacity of 135,000 tonnes during Phase 1.

Tata NYK : A joint venture with Nippon Yusen Kabushiki Kaisha (NYK Line) for setting up a shipping company to cater to dry bulk and break bulk cargo. Tata Steel and NYK will each hold 50% stake in the joint venture company.

Press Release 2008

Jamshedpur, August 6, 2008

"Tata Steel has come to understand that a forged statement has been issued to newswire PTI stating that the company is planning to halt work at its Dhamra Port project. The company would like to clarify that this statement is false and has been done with a deliberate intention to malign the company's reputation and hinder the project work. Tata Steel strongly condemns this malicious attempt to stall development initiative at Orissa.

Tata Steel would like to reiterate that we are committed to the socioeconomic prosperity and sustainable development of Orissa and will continue to work with civil society and the government towards the same.

Tata Steel’s maiden entry into fortune’s global 500 companies

~As per the website, Tata Steel is placed at 231 on the list of Global 500 Companies~

Jamshedpur, August 6, 2008

Tata Steel, India’ first and largest integrated private steel company of India which celebrated its centenary year has made its maiden entry in the list of Global 500 Companies released by the Fortune magazine. In an official clarification issued on the Website of Fortune magazine, Tata Steel now ranks 231 in the list of Global 500 Companies and not 315 as mentioned in the Fortune magazine.

Based on the consolidated 9 months financial results of Tata Steel, Fortune magazine ranked Tata Steel at 315th position. However, post the announcement of the Annual Results of Tata Steel, which was after the deadline of the publication of the Fortune magazine listing the Global 500 Companies, Fortune in a clarification on its website mentions that the Company would have been placed at the 231st position on the list and not 315.

To quote the website of Fortune magazine, Tata Steel's revenue for fiscal year end March 31, 2008 -- released by the company after the Global 500 publication deadline -- was $32.8 billion. Had the information been available, the company would have placed 231 on the list. The company ranked 315th in the listing, based on revenue for the four quarters ended Dec. 31, 2007, of $25.7 billion.

This is the first time that the company has made an entry into the prestigious list of top 500 Companies of the World. Of all the Companies featured in the list Global 500 companies, Tata Steel has registered the biggest increase in revenues with a percentage change of 353.2 % from 2006. Tata Steel has registered revenue of $ 32.8 billion dollars.

Tata Steel is the flagship company of Tata Group. The Tata Group comprises 98 operating companies in 7 business sectors. Tata Steel, established in 1907 is Asia’s first and India’s largest integrated private sector steel producer is the world's 6th largest steel producer. With the recent acquisition of Corus, the combined enterprise has a total crude steel production capacity of around 30 million tonnes and over 82,000 employees across four continents. Tata Steel has operations in 27 countries and is the second most globally diversified steel group. For further information, please visit www.tatasteel.com.

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 companies across the Globe measured by their gross revenue. The Company that tops the list is Wal-Mart Stores. Seven Indian Companies have found their way into the list of Fortune 500 companies and Tata Steel is one of them. These companies include – Indian Oil, Reliance India Limited, Bharat Petroleum, Hindustan Petroleum, ONGC and SBI.

Telemedicine centre inaugurated at Tata Main Hospital

~TMH now gets connected to hospitals in Jamadoba, West Bokaro and Noamundi~
Jamshedpur, August 1, 2008

The Telemedicine Centre at Tata Main Hospital (TMH) was inaugurated by Mr. B. Muthuraman, Managing Director, Tata Steel today. With this inauguration, TMH will now be connected with other peripheral hospitals in Jamadoba, West Bokaro, Noamundi, Joda and Sukinda through Telemedicine network.

Patients can now be seen and advised by consultants of TMH without travelling and from their respective hospitals. This innovative technology will later be extended to villages adopted by Tata Steel in all its locations including green field projects. Doctors and other health care professionals in Company hospitals in mines and collieries will be able to participate in conferences, workshops conducted in Tata Main Hospital.

While speaking at the inauguration, Mr. B Muthuraman said, "This technological innovation will enable our doctors to serve the patients and the community more efficiently. With this facility, TMH should now try to connect with leading hospitals across the country in order to provide medical help to all needy."

Also present on the occasion were Mr. Partha Sengupta, Vice President (Corporate Services), Mr. Raghunath Pandey, President, Tata Workers' Union, Dr. B. Ray, General Manager (Medical Services), Dr. N.K. Das, Chief of Medical Services. senior office bearers of Tata Workers' Union and doctors of TMH.

TMH can be now connected to other big hospitals in the country and benefit from consultation with the experts available in those hospitals. This is the first Telemedicine centre in whole of Jharkhand and Bihar.

The vision of TMH is to provide state of the art Healthcare Services to the employees of Tata Steel, their dependants and the community in a fiscally responsible manner. It has been providing medical services to not only people of Jamshedpur but also the communities in which it operates. Established in 1907 as a dispensary to provide healthcare facilities to the workers of Tata Steel Works, it has today grown into a hospital providing superior medical assistance to everyone.

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.43.79
UK Pound	1	Rs.80.05
Euro	1	Rs.64.56

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.	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

MIRA INFORM REPORT

26049.800

23329.800

5434.800

6316.300

4650.4000

76813.500

0.000

0.000

345828.400

40259.500

381963.400

146719.100

57709.600

53892.200

39848.200

30375.400

97557.800

84267.600

284405.600

62451.500

Unit