INTERNATIONAL FIANANCIAL MANAGEMENT

Submitted BY:-

Shaiki Agarwal

TPS -Finance

18046

TATA STEEL

Backed by 100 glorious years of experience in steel making, Tata Steel is the world‘s 6th largest steel company with an

existing annual crude steel production capacity of 30 Million Tonnes PerAnnum (MTPA). Established in 1907, it is the first

integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500

Company. Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with

manufacturing units in 26 countries

TATA STEEL’S INTERNATIONAL BUSINESS ACTIVITY. AND IN THE AREAS OF

IMPORTANCE ON INTERNATIONAL BUSINESS.

Tata Steel in UK and Europe

As part of the Tata Steel Group (TSG) of companies, Tata Steel Europe (TSE) is committed to the Group’s

vision of being a global benchmark in Value Creation and Corporate Citizenship. Maintaining this commitment

during the deepest peacetime contraction in European steel demand for 80 years has been challenging given the

necessity of returning the European operations to profitability.

Tata Steel in South East Asia

Indonesia

Singapore

Thailand

Malaysia

Philippines

Vietnam

TATA STEEL WORLD WIDE

NatSteel has always placed an emphasis on continuous improvement. During the year, Kepner Tregoe was

engaged as a consultant to drive performance excellence through various focused projects targeted at achieving

strategic objectives. Business processes continued to be strengthened. It also initiated knowledge management

for synergy in knowledge sharing as well as daily management for improving operational performance. SAP

was successfully implemented in NatSteel in September 2009 and will subsequently be rolled out to its

subsidiaries. NatSteel commissioned a new Fume Extraction Bag house at its Singapore plant to improve the

working environment. In Xiamen, a new series of earthquake resistant and high yield bars were launched.

Capacity expansion and extension of the distribution network are currently in progress in line with the optimism

in the construction industry. NatSteel and its subsidiaries have joined efforts in improving its supply chain

management using the Theory of Constraint principle to achieve leaner and more effective operations.

The economy began to look up, the global financial crisis continued to have a dampening effect on the

economies of South East Asia in the first half of the year. A quick response from Governments with huge

stimulus packages helped mitigate the impact. However, a large part of the steel industry was negatively

affected and underwent a demand contraction with Indonesia contracting by 27%; Singapore by 23%; Thailand

by 20%; Malaysia by 9%; and the Philippines by 3%. The exception was Vietnam which grew by 30%. Despite

a drop in demand, the second half showed indications of economic recovery when the effects of the stimulus

packages kicked in. Demand for long products increased in the second half to near pre-crises levels.

PERCENTAGE OF THEIR SALES AND INCOME COMES FROM OUT SIDE THE

COUNTRIES

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) due to the market conditions in Europe and the UK. The

recessionary conditions that commenced in the second half of the previous year continued to affect the

operations for most part of the financial year 2009-10. The two halves of the

Financial year under review were in sharp contrast to each other.

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). The increases were mainly in the subsidiaries in China, Vietnam and Thailand

while the Singapore operations and other subsidiaries witnessed a dip in the sales volume over last year due to

lower construction activity in the region especially in the first half of the year. The Chinese subsidiary

contributed the most (FY 2009-10 0.532 million tonnes) with an increase of 25% in volumes over the prior year.

In Vietnam, construction demand led to an increase in steel demand resulting in sales of NatSteel Vina to be at

0.13 million tonnes in FY 2009-10, 65% higher than the previous year. In Thailand the deliveries at 0.152

million tones witnessed a growth of 20% over 2008-09. The profit after tax for NatSteel Holdings was at Rs.

102 crores in FY 2009-10 as compared to Rs. 7 crores in the financial year 2008-09.

Earnings in Foreign Exchange

(i) Export of steel and other materials (at F.O.B. value) Rs. 2,034.81 crores (2008-09: Rs. 3,309.78 crores)

[including value of exports through export houses].

(ii) Interest received Rs. 20.60 crores (2008-09: Rs. 19.01 crores).

(iii) Others Rs. 44.07 crores (2008-09: Rs. 46.87 crores).

HEAD QUARTERS OF EACH COMPANY?

Australia

Tata Steel InternationalUnit 166-74 Micro CircuitDandenong SouthVictoria 3715Australia

Brazil

Tata Steel InternationalAv. das Americas, 4200Bloco IV - sala 30622640-102 - Rio de Janeiro - RJBrazil

China

Tata Steel InternationalRm. 1101 Yi An Plaza33 Jian She Liu Ma RoadGuangzhou 510 060China

France

Tata Steel International15 Allée Jean JaurèsToulouseFrance

Germany

Tata Steel InternationalAm Trippelsberg 4840589 DüsseldorfGermany

Greece

Tata Steel International5 Pigis Avenue151 27 MELISSIAGreece

Hong Kong Sar

Tata Steel InternationalUnit 2106-10, Devon House979 King's Road, Quarry BayHong KongHong Kong Sar

Italy

Tata Steel InternationalVia Rondoni 120146 MilanoItaly

Singapore

Tata Steel International24 Raffles Place#13-01 & 02, Clifford CentreSingapore 048621Singapore

South Africa

Tata Steel InternationalPO Box 15113Farrarmere1518 BenoniJohannesburg

South Africa

Spain

Tata Steel InternationalRosario Pino 14-16Torre Rioja28020 MadridSpain

Thailand

Tata Steel International18th Floor, Room 1807, Q House Asoke Bldg66 Sukhumvit 21, North KlongtoeyWattanaBangkok 10110Thailand

United States

Tata Steel InternationalChicago office475 N. Martingale Road, Suite 400Schaumburg, IL 60173United States