Ratan N.

Tata, Chairman
A Global Player >> A Product Pioneer >> A Corporate Citizen It was the best of times, it was the worst of times...

Never before has this famous line meant more. The roller coaster ride that the last two years took the global economy through, proved one fact that a successful enterprise needs to have the resilience to withstand the highs and lows of a future that often comes unheralded.
As a global enterprise, Tata Steel was not unaffected by the challenges of the last two years. Yet, the Company demonstrated resilience by taking several proactive initiatives across all geographies. A tough start to the year was balanced by a rebound in the second half, when these initiatives began to pay off. Undeterred by the economic turbulence, the Company continued to place Emphasis on working practices in health, safety and corporate citizenship, With specific initiatives taken in all these areas.

In addition, a continued focus on engineering solutions for customers, is helping it maintain its position of a product pioneer.
Tata Steel believes in staying alert to future opportunities while never letting go of its core values. This is the philosophy that has underpinned its growth over the Years and one that remains its key driving force.

Board of Directors
Mr. Ratan N.Tata Mr. B. Muthuraman, Vice Chairman Mr. Nusli N. Wadia Mr. Ishaat Hussain Mr. Subodh Bhargava Mr. Jacobus Schraven Dr. Jamshed J.Irani Mr. Andrew Robb Mr. S.M.Palia Mr. Suresh Krishna Mr. Kirby Adams, Managing Director & CEO, Tata Steel Europe Mr. H.M.Nerurkar, Managing Director, Tata Steel Limited
COMPANY SECRETARY Mr. A. Anjeneyan

REGISTERED OFFICE Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001. Tel.: +91 22 6665 8282, Fax : +91 22 6665 7724 / 6665 7725 E-mail : cosec@tatasteel.com, Website : www.tatasteel.com

LEGAL ADVISORS AZB & Partners, Amarchand & Mangaldas & Suresh. A. Shroff & Co., Mulla & Mulla and Craigie Blunt & Caroe, Herbert Smith LLP, Cleary Gottlieb Steen & Hamilton LLP, Linklaters LLP, Allen & Gladhill LLP

SHARE REGISTRARS TSR Darashaw Limited, 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011. Tel.: +91 22 6656 8484 Fax : +91 22 6656 8494 / 6656 8496 E-mail : csg-unit@tsrdarashaw.com Website : http://www.tsrdarashaw.com

AUDITORS Messrs Deloitte Haskins & Sells

Contents
1. Corporate Citizenship:
Corporate Sustainability at Tata Steel has always meant focusing on the environment, people and society. The Company carries out its business activities in ways that seek to enhance the Earths resources rather than deplete them, thereby helping create a sustainable world for future generations to inherit. Some of the initiatives and principles that are consistently applied across the Group are: Environment Sustainability Health, Water And Sanitation Disaster Relief Management, etc..

2. Review of Operations:
The fiscal year FY 10 is a landmark year for Tata Steels operations with an outstanding performance across all its Units and Divisions, which include: India UK & Europe South East Asia

3.

Notice:

Ordinary Business: To receive, consider and adopt the Audited Profit and Loss Account for the year ended 31st March, 2010 and the Balance Sheet as at that date together with the Report of the Board of Directors and the Auditors thereon. To declare Dividend on Ordinary Shares. To appoint Directors in place of Mr. S.M.Palia, Mr. Suresh Krishna, Mr. Ishaat Hussain & Mr. Andrew Robb who retire by rotation and are eligible for reappointment. To appoint auditors and fix their remuneration.

Special Business:
To appoint a Director in place of Mr. B. Muthuraman, who was appointed an Additional Director of the Company by the Board of Directors with effect from 1st October, 2009 under Section 260 of the Companies Act, 1956 and who holds office upto the date of the forthcoming AGM. Appointment of Mr. H. M. Nerurkar as Managing Director.

Notes:
A member entitled to attend and vote is entitled to appoint a proxy for himself and the proxy need not to be a member. Proxies in order to be effective , must be received at the Companys Registered Office not less than 48 hours before the meeting. As required by Section 173 of The Companies Act, 1956,the following Explanatory Statements set out all material facts relating to the business: Mr. B. Muthuraman retired as the Managing Director of the Company on 30th September, 2009. Considering the contributions made by him, the Board thought it prudent to appoint him as an Additional Non-Executive Non-Independent Director of the Company. Mr. Hemant M. Nerurkar was Executive Director of India and South East Asia of the Company since April 09, 2009 and was appointed as Managing Director of the Company from October 01, 2009.

Dividends:
Ordinary Shares: The Board recommended dividend of Rs. 8 per Ordinary Share on 887,214,196 Ordinary Shares for the year ended 31st March,2010.

Tata Steel Group Performance:

Tata Steel Indian operations: The steel division here registered an increase of 20% in their saleable steel from 5.37 million tonnes in FY 2008-09 to 6.44 million tonnes in FY 2009-10. Tata Steel Europe (TSE): Deliveries in Tata Steel Europe during FY 2009-10 (14.2 million tonnes) declined by 25% over FY 2008-09 (19 million tonnes). NatSteel Holdings: NatSteel recorded an increase in sales by 3% in FY 2009-10 (2.44 million tonnes) over FY 2008-09 (2.37 million tonnes). Tata Steel Thailand (TSTH): TSTH recorded an increase of 8% in sales during FY 2009-10 (1.20 million tonnes) over FY 2008-09 (1.11 million tonnes).

 Expansion Projects: i) Brownfield Projects Raw Material Projects: i) Coal Projects iii) Lime stone Projects Environment:

ii) Greenfield Projects ii) Iron Projects

Tata Steel Group is committed to minimising the environmental impact of its operations and its products by adopting sustainable practices and continuous improvements in environmental performance.

Health And Safety:

Tata Steel Group lays significant emphasis on sustainable Health & Safety performance as it has a direct impact on performance. The Company is continuing its Safety Excellence Journey with a philosophy that Safety is a Line Management function and all injuries can be prevented.

Subsidiaries:
Annual accounts of the subsidiary companies and the related detailed information will be made available to the holding and subsidiary companies investors seeking such information at any point of time.

 Directors:
Mr. B. Muthuraman retired as the Managing Director of the Company on 30th September, 2009. on having reached the age of 65 years. The Board has also approved the appointment of Mr. H. M. Nerukar as the Managing Director of the Company and Mr. Kirby Adams as the Managing Director and Chief Executive Officer of Tata Steel Europe. Mr. James Leng ceased to be the Deputy Chairman of the Board of Directors of the Company with effect from 7th July, 2009.

Energy, Technology And Foreign Exchange:

a) Conservation of EnergyEnergy Conservation measures taken, which include 100% utilization of ByProduct gases as fuel by installation and commissioning of Power House, Generation of electrical energy by recovering waste energy, etc. Additional investments and proposal for reduction of consumption of energy, which include Exploring lean gas utilization of heating, Recovery of sensible heat of coke cy installation of Coke Dry Quenching System, etc.

b)

5.

Management Discussion Analysis 2009-10 Report.

6.

7.

Corporate Governance Report for the year 2009-10 (as required under Clause 49 of the Listing Agreements entered into with the Stock Exchange). Certificate of the compliance of conditions of Corporate Governance.

8. Auditors Report: Annexure to the Auditors Report contains the following points: Fixed Assets Inventory Loans & Advances granted/ taken from certain entities, mentioned under Section 301 of the Act Internal Control System Contracts for arrangement referred in Section 301 of the Act Acceptance of Deposits Internal Audit System Cost Records Statutory Dues Accumulated Losses Dues to Financial Institutions, Banks & Debenture Holders Security for Loans & Advances granted Special Statute Dealing/ Trading in Shares, Securities, Debentures and other Investments Guarantees given Term Loans

 9. 10. 11. 12.

Utilization of Funds Preferential Allotment of Shares Security for Debentures issued Public Issue of Equity Shares Fraud Noticed Balance Sheet as at 31st March, 2010. Profit & Loss Account for the year ended 31st March,2010. Cash Flow Statement for the year ended 31st March,2010. Schedule forming part of the Balance Sheet and the Profit & Loss Account. 13. Balance Sheet Abstract and Companys general Business Profile. 14. Auditors Report on Consolidated Financial Statements.

BALANCE SHEET & CASH FLOW

FINANCIAL RATIO ANALYSIS 2009 - 2010

LIQUIDITY RATIO This ratio measures the ability of the
firm to meet its short term obligation.

(A) CURRENT RATIO This ratio indicates the firms ability to meet its current liabilities.

MEASURED BY
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO

2009 2010

3613.70 5707.05

3855.26 6039.86

0.94 .094

(B) QUICK RATIO

To know the real picture of liquidity
Quick Ratio = C.A. Inventory- Prepaid Expense) Current Liability
YEAR C.A INVENTORY PREPAID EXPENSES 13570.52 3442.72 CURRENT LIABILITIES CURRENT RATIO

2009 2010

3855026 6039.86

3.52 0.57

ANALYSIS : As per the industry norms the quick ratio should be 1:1. It shows the decreasing trend in the year 2009 there was high utilized cash. But for the current year the situation is more balanced.

PROFITABILITY RATIO This ratio shows a companys effectiveness on generating profit.

(A)Gross Profit Ratio :- The Gross Profit Ratio is a ratio of Gross Profit to the Sales.
Formula

Gross Profit Ratio = (Gross Profit / Sales)*100

YEAR 2009 2010 Gross Profit 7515.05 8295.84 Sales 19,933.83 24,624.04 Gross Profit Margin 37.70% 33.69%

ANALYSIS:- According to the data of 2009 and 2010 there is a decrease of Tata Steel in earning the Gross profit

(B) OPERATING PROFIT MARGIN

This ratio signifies the operational efficiency of any business entity

lower ratio indicates the higher efficiency

FORMULA
Operating profit ratio= (operating profit (EBIT)/sales)*100
Year 2009 2010 Operating Profit (EBIT) 8,360.25 9,278.34 Sales 19,933.83 24,624.04 Gross Profit Margin 41.94% 37.68%

ANALYSIS: There is decrease in gross profit margin from 2009 to 2010 for Tata steel by this we can say that the operating efficiency of Tata steel has actually increased for the current year.

(C ) Net Profit Ratio

It relates the firms Net Profit and the firms Sales level. It indicates what percentage of every rupee of sales the firm was able to transform into the Net Profit

FORMULA Net Profit Margin = (Net Profit after Tax / Sales)*100

YEAR Net Profit after Tax (PAT) 4670.49 5193.21 Sales Net Profit Margin 23.43% 21.09%

2009 2010

19,933.83 24,624.04

ANALYSIS
It indicates the firms ability to transfer its sales into the net profit. The profitability of TaTa steel has actually decreased in 2010 than of

the year 2009.

Turnover Ratio
Turnover ratio measures the ability of the firm to manage assets and convert into cash. Fixed Asset Turnover Ratio
Its indicates the efficiency of utilization of fixed asset FORMULA Fixed Assets Turnover Ratio= Sales / Fixed Assets
As per Balance Sheet 31st March 2010 & 2011 (All figures are in crore.)

Year 2009 2010

Sales
19,933.83 24,624.04

Fixed Assets. Fixed Asset Turnover Ratio

12,623.56 14,482.22 1.57 1.7

Analysis For both of the years 2009 and 2010 the fixed asset turnover ratio of Tata Steel is more than 1. As we know this ratio shows the companys ability to turn its fixed assets into the turnover.

Total Asset Turnover Ratio

Measures overall efficiency and performance of the asset implied in the business. FORMULA Total Assets Turnover Ratio= Sales Turnover / Fixed Assets
As per Balance Sheet 31st March 2010 & 2011 (All figures are in crore.) Year 2009 Sales Total Assets. Turnover 19,933.83 24,624.04 47,075.52 58,741.77 Total Asset Turnover Ratio 0.42 0.42

2010

Analysis Here for both the years the value of Total Asset Turnover Ratio is same it is showing that overall turnover of assets to sales remained same for both the years.

Total Asset Turnover Ratio

This ratio indicates the efficiency of the firm in collecting its receivables from its customers to whom the firm has sold on credit. FORMULA Debtors Turnover Ratio= (Debtors / Credit Sells)*365
As per Balance Sheet 31st March 2010 & 2011 (All figures are in crore.) Year 2009 2010 Debtors Turnover Ratio 11.00 9.00

Analysis As it shows the companys ability to recover the amount that is market due or in other words the company has sold on credit. It is very important for any company to calculate this ratio as depending on that the company can decide about its current position to recover the receivables.

QUERIES ????