electronic issuance - bombay stock exchange limited · mumbai – 400 001, india tel no.: +91 22...

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1 Serial No: ______ Addressed to: ______ Date: May 15, 2020 Tata Steel Limited (A Public Limited Company incorporated under the Indian Companies Act, 1882) Registered and Corporate Office: Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001 Tel: +91 22 6665 8282, Fax: +91 22 6665 7724 e-mail: [email protected] CIN: L27100MH1907PLC000260 Website: www.tatasteel.com Disclosure Document for issue by way of private placement by Tata Steel Limited (“TSLor the “Companyor “Tata Steel” or the “Issuer”) of 8.25% p.a. Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures (“Debentures”) of the face value of Rs. 10,00,000 each, for cash aggregating to Rs. 1,000 crores (the “Issue”). BACKGROUND This disclosure document is related to the Debentures to be issued by the Issuer on a private placement basis and contains relevant information and disclosures required for the purpose of issuing the Debentures (“Information Memorandum” or the “Disclosure Document”). The issue of Debentures described under this Information Memorandum has been authorised by a resolution passed by the Board of Directors of the Issuer on August 13, 2018 and by the Committee of Directors on April 13, 2020. GENERAL RISKS Investment in debt and debt related securities involves a degree of risk and investors should not invest any funds, unless they can afford to take the risks attached to such investments. For taking an investment decision, investors must rely on their own examination of the Company and the Issue, including the risks involved. The Debentures have not been recommended or approved by Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this document. ISSUER’S ABSOLUTE RESPONSIBILITY The Issuer, having made all reasonable inquiries, accepts responsibility for, and confirms that all information with regard to the Issuer and the Issue in this Information Memorandum is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Information Memorandum as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. DEBENTURE HOLDERS The Debentures mentioned herein are not offered for sale or subscription to the public, but are being privately placed with a limited number of eligible investors. This Information Memorandum should not be treated as an offer for sale or solicitation of an offer to buy the Debentures as prescribed herein by any person, who is not a company incorporated in accordance with the provisions of the Companies Act, 1956 or Companies Act, 2013, as applicable, or a bank or financial institution under banks and such financial institutions and insurance companies and such other entities/persons as are set out in Rule 2 of the Companies (Acceptance of Deposit) Rules, 2014, as amended. This Information Memorandum does not constitute an offer for sale or a solicitation of an offer to buy the Debentures as described herein from any person other than the person whose name appears on the cover page of this Information Memorandum. No person other than such person, receiving a serially numbered copy of this document may treat the same as constituting an offer to sell or a solicitation of an offer to buy the Debentures. The distribution of this Information Memorandum and offer and sale of Debentures in certain jurisdictions may be Private & Confidential For Private Circulation Only (This Disclosure Document is neither a Prospectus nor a Statement in Lieu of Prospectus). This Disclosure Document has been prepared in conformity with Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008, as amended

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Page 1: Electronic Issuance - Bombay Stock Exchange Limited · Mumbai – 400 001, India Tel No.: +91 22 4080 7000 Fax No.: + 91 22 6631 1776 Email: itsl@idbitrustee.com Contact Person: Mr

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Serial No: ______

Addressed to: ______

Date: May 15, 2020

Tata Steel Limited

(A Public Limited Company incorporated under the Indian Companies Act, 1882)

Registered and Corporate Office: Bombay House, 24 Homi Mody Street, Fort, Mumbai – 400 001

Tel: +91 22 6665 8282, Fax: +91 22 6665 7724 e-mail: [email protected]

CIN: L27100MH1907PLC000260 Website: www.tatasteel.com

Disclosure Document for issue by way of private placement by Tata Steel Limited (“TSL” or the “Company” or

“Tata Steel” or the “Issuer”) of 8.25% p.a. Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures

(“Debentures”) of the face value of Rs. 10,00,000 each, for cash aggregating to Rs. 1,000 crores (the “Issue”).

BACKGROUND

This disclosure document is related to the Debentures to be issued by the Issuer on a private placement basis and

contains relevant information and disclosures required for the purpose of issuing the Debentures (“Information

Memorandum” or the “Disclosure Document”). The issue of Debentures described under this Information

Memorandum has been authorised by a resolution passed by the Board of Directors of the Issuer on August 13, 2018

and by the Committee of Directors on April 13, 2020.

GENERAL RISKS

Investment in debt and debt related securities involves a degree of risk and investors should not invest any funds,

unless they can afford to take the risks attached to such investments. For taking an investment decision, investors

must rely on their own examination of the Company and the Issue, including the risks involved. The Debentures

have not been recommended or approved by Securities and Exchange Board of India (“SEBI”) nor does SEBI

guarantee the accuracy or adequacy of this document.

ISSUER’S ABSOLUTE RESPONSIBILITY

The Issuer, having made all reasonable inquiries, accepts responsibility for, and confirms that all information with

regard to the Issuer and the Issue in this Information Memorandum is true and correct in all material aspects and is

not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that

there are no other facts, the omission of which makes this Information Memorandum as a whole or any of such

information or the expression of any such opinions or intentions misleading in any material respect.

DEBENTURE HOLDERS

The Debentures mentioned herein are not offered for sale or subscription to the public, but are being privately placed

with a limited number of eligible investors. This Information Memorandum should not be treated as an offer for sale

or solicitation of an offer to buy the Debentures as prescribed herein by any person, who is not a company

incorporated in accordance with the provisions of the Companies Act, 1956 or Companies Act, 2013, as applicable,

or a bank or financial institution under banks and such financial institutions and insurance companies and such other

entities/persons as are set out in Rule 2 of the Companies (Acceptance of Deposit) Rules, 2014, as amended. This

Information Memorandum does not constitute an offer for sale or a solicitation of an offer to buy the Debentures as

described herein from any person other than the person whose name appears on the cover page of this Information

Memorandum. No person other than such person, receiving a serially numbered copy of this document may treat

the same as constituting an offer to sell or a solicitation of an offer to buy the Debentures.

The distribution of this Information Memorandum and offer and sale of Debentures in certain jurisdictions may be

Private & Confidential – For Private

Circulation Only

(This Disclosure Document is neither a

Prospectus nor a Statement in Lieu of

Prospectus). This Disclosure Document has been

prepared in conformity with Securities and

Exchange Board of India (Issue and Listing of

Debt Securities) Regulations, 2008, as amended

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restricted by law. It does not constitute an offer for sale or solicitation of an offer to buy in any jurisdiction to any

person to whom it is unlawful to make such offer or solicitation in such state or jurisdiction.

Persons into whose possession this Information Memorandum comes are required to inform themselves as to (a) the

legal requirements for the purchase, holding or disposal of the Debentures, (b) any legal restrictions which may

affect them and (c) the income and other tax consequences which may apply relevant to the purchase, holding or

disposal of the Debentures.

CREDIT RATING

India Ratings and Research Private Limited (India Ratings) has assigned ‘Ind AA’ and Credit Analysis & Research

Limited (CARE Ratings) has assigned ‘CARE AA’; (pronounced as Double A) for the issue of Debentures.

Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial

obligations. Such instruments carry very low credit risk.

The rating is not a recommendation to buy, sell or hold Debentures and investors should take their own decision.

The rating may be subject to suspension, revision or withdrawal at any time by the assigning Credit Rating Agency.

Each Credit Rating Agency has a right to revise, suspend or withdraw the rating at any time on the basis of factors

such as new information or unavailability of information or other circumstances which such Credit Rating Agency

believes may have an impact on its rating.

LISTING

The Debentures are proposed to be listed on the wholesale debt market segment of BSE Limited (“BSE” or the

“Stock Exchange”). BSE has given its ‘in-principle’ approval to list the Debentures dated May 15, 2020 which is

annexed to this Information Memorandum as Annexure 5. The Issue would be under the electronic book mechanism

for issuance of debt securities on private placement basis as per the Securities and Exchange Board of India (“SEBI”)

circular no. SEBI/HO/DDHS/CIR/P/2018/05 dated January 5, 2018 any amendments thereto (“SEBI EBP

Circular”) read with the “Updated Operational Guidelines for issuance of Securities on Private Placement basis

through an (“Electronic Book Mechanism”) issued by BSE vide their Notice no. 20180928-24 dated September

28, 2018 and any amendments thereto (“BSE EBP Guidelines”), together with the SEBI EBP Circular referred to

as the “Operational Guidelines”). The Company intends to use the BSE Bond – EBP platform (as defined in the

section titled “Definitions”) for the Issue.

ISSUE PROGRAMME

Issue Opening Date May 19, 2020

Issue Closing Date May 19, 2020

Deemed Date of Allotment May 20, 2020

The Issuer reserves the right to change the Issue time table including the Date of Allotment / Deemed Date of

Allotment at its sole discretion, without giving any reasons or prior notice. The Issue will be open for bidding on

the Issue Opening Date.

The Issue shall be subject to the terms and conditions of this Disclosure Document filed with the Stock Exchange

and other documents in relation to the Issue.

DEBENTURE TRUSTEE REGISTRAR TO THE ISSUE

IDBI Trusteeship Services Limited

Asian Building, Ground Floor,

17, R. Kamani Marg, Ballard Estate,

Mumbai – 400 001, India

Tel No.: +91 22 4080 7000

Fax No.: + 91 22 6631 1776

Email: [email protected]

Contact Person: Mr. Jimit Poojari

TSR Darashaw Consultants Private Limited

(formerly known as TSR Darashaw Limited)

6-10, Haji Moosa Patrawala Industrial Estate

20, Dr. E. Moses Road, Mahalaxmi

Mumbai 400 011, India

Tel No.: +91 22 6656 8484

Fax No.: + 91 22 66568494

Email: [email protected]

Contact Person: Ms. Vidya Brahme, Chief Manager

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TABLE OF CONTENTS

DISCLAIMER .............................................................................................................................................................. 4

DEFINITIONS / ABBREVIATIONS ......................................................................................................................... 8

RISK FACTORS ........................................................................................................................................................ 10

REGULATORY DISCLOSURES ............................................................................................................................ 41

APPLICATION PROCESS ..................................................................................................................................... 104

ISSUE DETAILS ...................................................................................................................................................... 107

ANNEXURE – 1 - CONSENT FROM IDBI TRUSTEESHIP SERVICES LIMITED...................................... 110

ANNEXURE – 2A - RATING ISSUED BY INDIA RATINGS AND RESEARCH PRIVATE LIMITED (INDIA

RATINGS) ................................................................................................................................................................. 111

ANNEXURE – 2B - RATING ISSUED BY CREDIT ANALYSIS & RESEARCH LIMITED (CARE RATINGS)

.................................................................................................................................................................................... 113

ANNEXURE – 3 - APPLICATION FORM ........................................................................................................... 116

ANNEXURE – 4 - ILLUSTRATIVE CASH FLOWS ........................................................................................... 119

ANNEXURE – 5 - IN-PRINCIPLE LISTING APPROVAL ................................................................................ 120

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DISCLAIMER

This Disclosure Document is neither a prospectus nor a statement in lieu of a prospectus under the Companies Act,

2013. The Issue of Debentures to be listed on the Stock Exchange is being made strictly on a private placement basis

in accordance with applicable law. This Disclosure Document is not intended to be circulated to more than forty nine

persons. Multiple copies hereof given to the same entity shall be deemed to be given to the same person and shall be

treated as such. It does not constitute and shall not be deemed to constitute an offer or an invitation to subscribe to the

Debentures to the public in general. This Disclosure Document should not be construed as a prospectus or a statement

in lieu of a prospectus under the Companies Act, 2013 or any other prevailing rules or regulations.

This Disclosure Document has been prepared in conformity with the SEBI (Issue and Listing of Debt Securities)

Regulations, 2008, as amended. Therefore, as per the applicable provisions, copy of this Disclosure Document has not

been filed or submitted to SEBI for its review and/or approval. Further, since the Issue is being made on a private

placement basis, the provisions of Section 26 of the Companies Act, 2013 shall not be applicable and accordingly, a

copy of this Disclosure Document has not been filed with the Registrar of Companies or the SEBI.

This Disclosure Document has been prepared to provide general information about the Issuer and the Debentures to

potential investors to whom it is addressed and who are willing and eligible to subscribe to the Issue. This Disclosure

Document does not purport to contain all the information that any potential investor may require. Neither this

Disclosure Document nor any other information supplied in connection with the Issue is intended to provide the basis

of any credit or other evaluation and any recipient of this Disclosure Document should not consider such receipt a

recommendation to subscribe to the Issue or purchase any Debentures. Each investor contemplating subscribing to the

Issue or purchasing any Debentures should make its own independent investigation of the financial condition and

affairs of the Issuer, and its own appraisal of the creditworthiness of the Issuer. Potential investors should consult their

own financial, legal, tax and other professional advisors as to the risks and investment considerations arising from an

investment in the Debentures and should possess the appropriate resources to analyze such investment and the

suitability of such investment to such investor's particular circumstances.

Potential investors to Debentures must make their own independent evaluation and judgment before making the

investment and are believed to be experienced in investing in debt and are able to bear the economic and/or commercial

risk of investing in Debentures. Potential investors should conduct their own investigation, due diligence and analysis

before applying for the Debentures. Noting in this Disclosure Document should be construed as advice or

recommendation by the Issuer to subscribers to the Debentures. Potential investors should also consult their own

advisors on the implications of application, allotment, sale, holding, ownership and redemption of these Debentures

and matters incidental thereto.

The Issuer confirms that, as of the date hereof, this Disclosure Document (including the documents incorporated by

reference herein, if any) contains all information that is material in the context of the Issue of the Debentures, is accurate

in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact

necessary to make the statements herein not misleading, in the light of the circumstances under which they are made.

No person has been authorised to give any information or to make any representation not contained or incorporated by

reference in this Disclosure Document or in any material made available by the Issuer to any potential investor pursuant

hereto and, if given or made, such information or representation must not be relied upon as having been authorised by

the Issuer.

The Issuer reserves the right to withdraw the private placement of the Debentures Issue prior to the issue closing date

in the event of any unforeseen development adversely affecting the economic and regulatory environment or any other

force majeure condition including any changes in applicable laws.

This Disclosure Document and the contents hereof are restricted only for the intended recipient(s) who have been

addressed directly and specifically through a communication by the Issuer and only such recipients are eligible to apply

for the Debentures. All investors are required to comply with the relevant regulations/guidelines applicable to them

(including the BSE BOND - EBP operational guidelines issued by the BSE) for investing in this Issue. The contents

of this Disclosure Document are intended to be used only by those investors to whom it is distributed. It is not intended

for distribution to any other person and should not be reproduced by the recipient. The potential investors shall be

required to independently procure all the licenses and approvals, if applicable, prior to subscribing to the Debentures

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and the Issuer shall not be responsible for the same.

No invitation is being made to any persons other than those to whom Application Forms along with this Disclosure

Document being issued have been sent by or on behalf of the Issuer. Any application by a person to whom the

Disclosure Document has not been sent by or on behalf of the Issuer shall be rejected without assigning any reason.

The person who is in receipt of this Disclosure Document shall maintain utmost confidentiality regarding the contents

of this Disclosure Document and shall not reproduce or distribute in whole or part or make any announcement in public

or to a third party regarding the contents without the consent of the Issuer.

This Information Memorandum/ Private Placement Offer Letter does not constitute, nor may it be used for or in

connection with, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not

authorized or to any person to whom it is unlawful to make such an offer or solicitation.

Each person receiving this Disclosure Document acknowledges that:

Such person has been afforded an opportunity to request and to review and has received all additional information

considered by it to be necessary to verify the accuracy of or to supplement the information herein; and such person has

not relied on any intermediary that may be associated with issuance of Debentures in connection with its investigation

of the accuracy of such information or its investment decision.

The Issuer does not undertake to update the Disclosure Document to reflect subsequent events after the date of the

Disclosure Document and thus it should not be relied upon with respect to such subsequent events without first

confirming its accuracy with the Issuer.

Neither the delivery of this Disclosure Document nor any issue of Debentures made hereunder shall, under any

circumstances, constitute a representation or create any implication that there has been no change in the affairs of the

Issuer since the date hereof.

This Disclosure Document does not constitute, nor may it be used for or in connection with, an offer or solicitation by

anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful

to make such an offer or solicitation. No action is being taken to permit an offering of the Debentures or the distribution

of this Disclosure Document in any jurisdiction where such action is required. The distribution of this Disclosure

Document and the offering of the Debentures may be restricted by law in certain jurisdictions. Persons into whose

possession this Disclosure Document comes are required to inform themselves about and to observe any such

restrictions. The Disclosure Document is made available to investors in the Issue on the strict understanding that the

contents hereof are strictly confidential and the details provided herein are strictly for the sole purpose of information

to the potential investors.

CAUTIONARY NOTE

Each invited potential Investor acknowledges and agrees that each of them, (i) are knowledgeable and experienced in

financial and business matters, have expertise in assessing credit, market and all other relevant risk and are capable of

evaluating, and have evaluated, independently the merits, risks and suitability of subscribing to or purchasing the

Debentures; (ii) understand that the Issuer has not provided, and will not provide, any material or other information

regarding the Debentures, except as required under applicable laws, (iii) have not requested the Issuer to provide it

with any such material or other information, (iv) have not relied on any investigation that any person acting on their

behalf may have conducted with respect to the Debentures, (v) have made their own investment decision regarding the

Debentures based on their own knowledge (and information they have or which is publicly available) with respect to

the Debentures or the Issuer (vi) have had access to such information as deemed necessary or appropriate in connection

with purchase of the Debentures, (vii) are not relying upon, and have not relied upon, any statement, representation or

warranty made by any person, including, without limitation, the Issuer, and (viii) understand that, by purchase or

holding of the Debentures, they are assuming and are capable of bearing the risk of loss that may occur with respect to

the Debentures, including the possibility that they may lose all or a substantial portion of their investment in the

Debentures.

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It is the responsibility of each potential Investor to also ensure that they will sell these Debentures in strict accordance

with this Disclosure Document, the Transaction Documents and all other applicable laws, so that the sale does not

constitute an offer to the public, within the meaning of the Companies Act, 1956 and/or the Companies Act, 2013. The

potential investors shall at all times be responsible for ensuring that it shall not do any act deed or thing which would

result this Disclosure Document being released to any third party (where such party is not an intended recipients from

the Issuer) and in turn constitutes an offer to the public howsoever.

The distribution of this Information Memorandum or the Application Forms and the offer, sale, pledge or disposal of

the Debentures may be restricted by law in certain jurisdictions. The sale or transfer of these Debentures outside India

may require regulatory approvals in India, including without limitation, the approval of SEBI or RBI.

DISCLAIMER OF THE STOCK EXCHANGE

As required, a copy of this Disclosure Document has been submitted to the Stock Exchange in terms of the applicable

SEBI regulations.

It is to be distinctly understood that such submission of the Disclosure Document with Stock Exchange or hosting the

same on its website should not in any way be deemed or construed that the document has been cleared or approved by

the Stock Exchange; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of

the contents of this Disclosure Document; nor does it warrant that this Issuer’s Debentures will be listed or continue

to be listed on the Stock Exchange; nor does it take responsibility for the financial or other soundness of this Issuer, its

promoters, its management or any scheme or project of the Company. Every person who desires to apply for or

otherwise acquire any Debentures of this Issuer may do so pursuant to independent inquiry, investigation and analysis

and shall not have any claim against the Stock Exchange whatsoever by reason of any loss which may be suffered by

such person consequent to or in connection with such subscription/acquisition whether by reason of anything stated or

omitted to be stated herein or any other reason whatsoever.

DISCLAIMER OF THE SEBI

As per the provisions of the applicable SEBI regulations, a copy of this Information Memorandum is not required to

be filed with or submitted to SEBI for its observations or approval. Accordingly, it is to be distinctly understood that

this Information Memorandum should not in any way be deemed or construed to have been approved or vetted by

SEBI. SEBI does not take any responsibility either for the financial soundness of any proposal for which the Debentures

issued thereof is proposed to be made or for the correctness of the statements made or opinions expressed in this

Information Memorandum.

DISCLAIMER OF THE TRUSTEE

The Issuer confirms that all necessary disclosures have been made in the Information Memorandum including but not

limited to statutory and other regulatory disclosures. Investors should carefully read and note the contents of the

Information Memorandum. Each prospective investor should make its own independent assessment of the merit of the

investment in the Debentures and the Issuer. Prospective investors should consult their own financial, legal, tax and

other professional advisors as to the risks and investment considerations arising from an investment in the Debentures

and should possess the appropriate resources to analyze such investment and suitability of prospective investors are

required to make their own independent evaluation and judgment before making the investment and are believed to be

experienced in investing in debt markets and are able to bear the economic risk of investing in such instruments. The

Trustees, ipso facto, do not have the obligations of a borrower or a principal debtor or a guarantor as to the monies

paid/invested by investors for the Debentures.

DISCLAIMER IN RESPECT OF JURISDICTION

This issue is made in India to investors as specified under the clause titled ‘Eligible Investors’ of this Information

Memorandum, who shall be specifically approached by the Issuer. This Information Memorandum does not constitute

an offer to sell or an invitation to subscribe to Debentures offered hereby to any person to whom it is not specifically

addressed. Any disputes arising out of this Issue will be subject to the exclusive jurisdiction of the courts and tribunals

at Kolkata. This Information Memorandum does not constitute an offer to sell or an invitation to subscribe to the

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Debentures herein, in any other jurisdiction to any person to whom it is unlawful to make an offer or invitation in such

jurisdiction.

DISCLAIMER IN RESPECT OF CREDIT RATING AGENCY

Ratings are opinions on credit quality and are not recommendations to sanction, renew, disburse or recall the concerned

bank facilities or to buy, sell or hold any security. The Credit Rating Agencies have based its ratings on information

obtained from sources believed by it to be accurate and reliable. The Credit Rating Agencies do not, however, guarantee

the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for

the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by

Credit Rating Agencies have paid a credit rating fee, based on the amount and type of bank facilities/instruments.

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DEFINITIONS / ABBREVIATIONS

Unless the context otherwise indicates or requires, the following terms shall have the meanings given below in this

Disclosure Document.

Definitions:

The Company or the Issuer or

Tata Steel or TSL or “we”,

“our” or “us”

Tata Steel Limited

Application Form The form which shall be circulated to the prospective investors along with the

Disclosure Document for the purpose of applying for the Debentures

Allot / Allotment / Allotted Unless the context otherwise requires or implies, the allotment of the Debentures

pursuant to this Issue

Board/ Board Of Directors/

Director(s)

Board of Directors of the Company

BSE BOND – EBP Platform Electronic book provider platform of BSE for issuance of debt securities on private

placement basis

Business Days A day which is not a Saturday, Sunday or a public holiday and on which clearing of

cheque and RTGS facilities are available in Mumbai and Kolkata

Companies Act The Companies Act, 2013, as amended

Credit Rating Agency(ies) India Ratings and Research Private Limited (India Ratings) or Credit Analysis &

Research Limited (Care Ratings) or any other credit rating agency appointed from

time to time

Crore 1 Crore = 10 Million

Date of Allotment The date on which Allotment for the Issue is made

Debenture(s)/ NCDs 8.25% p.a Unsecured, redeemable, rated, listed, non-convertible debentures of the

Company of the face value of Rs. 10,00,000 each aggregating up to Rs. 1,000 crores

Debenture Holder(s) Person(s) holding debentures(s) and whose name is recorded as beneficial owner with

the depository (if the debentures are in dematerialized form) as defined under Section

2 of the Depositories Act, 2018

Debenture Trustee IDBI Trusteeship Services Limited as trustee for the benefit of the Debenture Holders

Debenture Trust Deed The deed to be entered into by the Debenture Trustee and the Company specifying

the powers, authorities and obligations of the Company and the Debenture Trustee in

respect of the Debentures

Depository(ies) A depository registered with SEBI under the SEBI (Depositories And Participants)

Regulations, 1996, as amended

Depository Participant / DP A depository participant as defined under Depositories Act, 2018, as amended

Disclosure Document/

Information Memorandum

This Disclosure Document dated May 15, 2020 pursuant to which the Debentures are

being offered in this Issue

Financial Year / FY Financial year of the Company i.e. a period commencing from 1st April and ending

on 31st March of the next calendar year

Group The Company along with its subsidiaries, associates and joint ventures

Indian Competition Act The Competition Act, 2002, as amended

Investor Such eligible person who subscribe to this Issue and any eligible person which

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subsequently purchase the Debentures

Issue / Private Placement Private placement by the Company of 8.25% per annum coupon, unsecured,

redeemable, rated, listed, non-convertible debentures of the face value of Rs.

10,00,000 each, for cash, aggregating to Rs. 1,000 crores

Issue Closing Date May 19, 2020

Issue Opening Date May 19, 2020

Mutual Fund A mutual fund registered with SEBI under the Securities and Exchange Board of India

(Mutual Funds) Regulations, 1996, as amended

NRI An individual resident outside India, who is a citizen of India

Offer Documents Shall mean this Information Memorandum/Disclosure Documents and the Private

Placement Offer Cum Application Letter

Registrar Registrar and Transfer Agent to the Issue, in this case being TSR Darashaw

Consultants Private Limited (formerly TSR Darashaw Limited).

Stock Exchange / Designated

Stock Exchange

BSE Limited

Trusteeship Agreement The agreement entered into by the Debenture Trustee and the Company dated May

15, 2020, appointing the Debenture Trustee as a trustee in respect of the Debentures

Abbreviations:

CDSL Central Depository Services (India) Limited

DD Demand Draft

DRR Debenture Redemption Reserve

NOC No Objection Certificate(s)

NEFT National Electronic Fund Transfer

NSDL National Securities Depository Limited

PAN Permanent Account Number

RBI The Reserve Bank of India

RS. Rupees

RTGS Real Time Gross Settlement

SEBI Securities and Exchange Board of India

SEZ Special Economic Zone

TDS Tax Deduction at Source

WDM Wholesale Debt Market segment of the BSE

TSNHBV Tata Steel Netherlands Holdings BV

All other Capitalised Terms not defined above shall have the meaning assigned to them in the sections titled ‘Issuer

Information’ and ‘Issue Details’ of this Disclosure Document.

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RISK FACTORS

An investment in Debentures involves risks. These risks may include, among others, equity market, bond market,

interest rate, market volatility and economic, political and regulatory risks and any combination of these and other

risks. Some of these are briefly discussed below. Potential Investors and subsequent purchasers of the Debentures

should be experienced with respect to transactions in instruments such as the Debentures. Potential Investors and

subsequent purchasers of the Debentures should understand the risks associated with an investment in the Debentures

and should only reach an investment decision after careful consideration, with their legal, tax, accounting and other

advisers, of (a) the suitability of an investment in the Debentures in the light of their own particular financial, tax and

other circumstances and (b) the information set out in this Information Memorandum.

The Debentures may decline in value and marketability and Investors should note that, whatever their investment in

the Debentures, the cash amount due at maturity will be equivalent to the face value of the Debentures. More than one

risk factor may have simultaneous effect with regard to the Debentures such that the effect of a particular risk factor

may not be predictable. In addition, more than one risk factor may have a compounding effect which may not be

predictable. No assurance can be given as to the effect that any combination of risk factors may have on the value of

the Debentures.

Risks Related to our Company and our Subsidiaries:

1. The steel industry is affected by global economic conditions. Slower than expected or uneven growth of the

global economy or a renewed global recession could have a material adverse effect on the steel industry and

us.

Our business and results of operations have been and continue to be affected by international, national and

regional economic conditions. Adverse conditions and volatility in the global credit and financial markets,

fluctuations in oil and commodity prices, the increasing geopolitical and policy risks arising from growing

populist and nationalist tendencies, political turbulence and the general weakness of the global economy have

all contributed to the increased uncertainty of global economic prospects.

Trade friction remains elevated among the largest trading partners in the world, the U.S. and China, with

potential negative impact on global growth. Volatility in China’s growth or downside risks such as a credit

crunch could have a considerable impact on regional economies and commodity prices. The slower growth

trajectory of the U.S. could leave the economy more vulnerable to a large negative confidence shock. Growth

and financial performance in emerging markets, Asia and trade-exposed economies such as India are

particularly vulnerable to disruptions to global trade flows, capital flows, business investments and global

supply chains in the event of an escalation in trade tensions or a protracted slowdown. There is less fiscal and

monetary policy space for policymakers in developed economies to respond to the next slowdown as compared

to the last global shock. See “—Outbreak of COVID-19 has had, and could further have, a material adverse

effect on the Group’s business, financial condition and results of operations”. Continued impact of COVID-

19 and other related factors could potentially result in a more prolonged recession if the global economy

experiences another negative growth shock.

Geopolitics also continues to be an area of concern, including ongoing threats of terrorism, instability in the

Middle East and tensions in the Korean peninsula. These developments, or the perception that any of them

could occur, have had and may continue to have a material adverse effect on global economic conditions and

the stability of global financial markets, and may significantly reduce global market liquidity, restrict the

ability of key market participants to operate in certain financial markets or restrict the Group’s access to capital.

For example, a hard Brexit could adversely affect the Group’s business, financial condition, results of

operations and prospects. See “—Europe is one of our largest market, and our current business and future

growth could be materially and adversely affected by economic conditions in Europe.” These conditions have

resulted in higher historic volatility, less liquidity, widening of credit spreads and a lack of price transparency

in certain markets.

As witnessed by the previous global financial crisis, an economic downturn could bring about, among other

things, significant reductions in and heightened credit quality standards for available capital and liquidity from

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banks and other providers of credit, substantial reductions and/or fluctuations in equity and currency values

worldwide, and concerns that the worldwide economy may enter into a prolonged recessionary period. Such

events may make it difficult for the Group to raise additional capital or obtain additional credit, when needed,

on acceptable terms or at all.

Fiscal year 2019 saw a mixed steel and raw material price performance, with steel prices globally corrected

until November 2019 before rebounding from December 2019.

During last couple of years, policy led capacity cuts have led to improved utilization levels in China. This,

coupled with strong domestic demand, has led to lower steel exports from China as compared to the previous

year. During Fiscal 2020, the Indian automotive industry suffered from the liquidity crisis and weak global

demand to show almost no growth which has impacted other allied sectors including steel. Similarly, in

economies like Europe, the steel demand witnessed contraction. The consumer sectors and construction

maintained positive momentum, however manufacturing slumped due to a deteriorating environment for

export and investment.

An uneven recovery, with positive growth limited to certain regions would have an adverse effect on our

business, results of operations, financial condition and prospects. Continued financial weakness among

substantial consumers of steel products, such as the automotive industry and the construction industry, or the

bankruptcy of any large companies in such industries, would exacerbate the negative trend in market

conditions.

2. Outbreak of COVID-19 has had, and could further have, a material adverse effect on the Group’s business,

financial condition and results of operations.

The Group’s business could also be adversely affected by the effects of coronavirus, avian influenza, Severe

Acute Respiratory Syndrome, H1N1 Influenza, Ebola, Zika virus, Middle East Respiratory Syndrome or other

similar pandemic or endemic outbreaks of infectious diseases. In December 2019, a novel strain of coronavirus,

COVID-19, was reported to have surfaced in Wuhan City, Hubei Province, China and the World Health

Organisation has declared the outbreak a “pandemic” on March 12, 2020. There have been border controls and

travel restrictions imposed by various countries as a result of the COVID-19 outbreak. Such outbreak of an

infectious disease together with any resulting restrictions on travel and/or imposition of quarantine measures

may result in protracted volatility in international markets and/or result in a global recession as a consequence

of disruptions to travel and retail segments, tourism, and manufacturing supply chains and may adversely

impact the operations, revenues, cashflows and profitability of the Group. There can be no assurance that any

precautionary or other measures taken against infectious diseases would be effective. In particular, the

COVID-19 outbreak has caused stock markets worldwide to lose significant value and impacted economic

activity worldwide. A number of governments (including the Indian government) revised gross domestic

product growth forecasts for 2020 downwards in response to the economic slowdown caused by the spread of

COVID-19, and it is possible that the outbreak of COVID-19 will cause a prolonged global economic crisis or

recession. See “—The steel industry is affected by global economic conditions. Slower than expected or uneven

growth of the global economy or a renewed global recession could have a material adverse effect on the steel

industry and us.”.

In line with the increased action taken by national governments to contain the spread of COVID-19, the Group

has reduced, and will be further reducing operations at some sites. We have already stepped up measures to

reduce risk to our employees across all our sites as well as the communities around. Strict travel restrictions

have been implemented and majority of our employees have been asked to work-from-home. We are

implementing additional measures to increase hygiene standards at all locations and enforce strict social

distancing norms for employees and other stakeholders who have to attend to essential activity at workplace.

These are unprecedented times and the situation on the ground is evolving very rapidly and we are working

closely with customers and suppliers and various Government agencies. However, there is no assurance that

the Group’s supply chains for fuel, raw materials, goods and other commodities, including without limitation,

fuel, equipment and spares will not be affected as a result of any restriction of movement of people and goods

imposed by any government and any such restriction may affect the Group’s operations. In view of the

restrictions in the despatch of finished goods and poor market conditions due to the shutdown of customer

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operations in automotive, construction and other segments, our shipments to customers have been curtailed.

In addition, the Group may face delays associated with the collection of receivables from its customers as a

result of such restrictions or economic slowdown caused by COVID-19 which may adversely affect the

Group’s cashflows. Any of the aforementioned factors, if materialised, may have an adverse effect on the

Group’s operating results, businesses, assets, financial condition, performance or prospects although at this

point, the extent to which COVID-19 may impact the Group’s business, operations, financial condition and

results of operations is uncertain.

3. The steel industry is highly cyclical and a decrease in steel prices may have a material adverse effect on our

business, results of operations, prospects and financial condition.

Steel prices are volatile, reflecting the highly cyclical nature of the global steel industry. Steel prices fluctuate

based on a number of factors, such as the availability and cost of raw material inputs, fluctuations in domestic

and international demand and supply of steel and steel products, worldwide production and capacity,

fluctuation in the volume of steel imports, transportation costs, protective trade measures and various social

and political factors, in the economies in which the steel producers sell their products and are sensitive to the

trends of particular industries, such as the automotive, construction, packaging, appliance, machinery,

equipment and transportation industries, which are among the biggest consumers of steel products. When

downturns occur in these economies or sectors, we may experience decreased demand for our products, which

may lead to a decrease in steel prices, which may, in turn, have a material adverse effect on our business,

results of operations, financial condition and prospects.

Global steel prices fell sharply in 2008 as the global credit crisis led to a collapse in global demand. Also

similar price falls happened in 2015, 2016 and in 2019. If there is weakness in sectors of the economy that are

substantial consumers of steel products, such as the construction and automobile industries, it would also hurt

steel producers. While steel prices have increased in 2017, 2018 and in early 2019, they have been subject to

fluctuation. Low steel prices adversely affect the businesses and results of operations of steel producers

generally, including ours, resulting in lower revenue and margins and write downs of finished steel products

and raw material inventories. In addition, the volatility, length and nature of business cycles affecting the steel

industry have become increasingly unpredictable, and the recurrence of another major downturn in the industry

may have a material adverse impact on our business, results of operations, financial condition and prospects.

Continued impact of COVID-19 and other related factors could potentially result in a more prolonged global

recession if the global economy experiences another negative growth shock and could result in a global

reduction in demand for steel and steel products, disruption of supply chains globally, reduction in liquidity

and lack of availability of credit for us and our consumers, the occurrence of any of which may have a material

adverse impact on our business, results of operations, financial condition and prospects. See “—The steel

industry is affected by global economic conditions. Slower than expected or uneven growth of the global

economy or a renewed global recession could have a material adverse effect on the steel industry and us.” and

“—Outbreak of COVID-19 has had, and could further have, a material adverse effect on the Group’s business,

financial condition and results of operations.” In addition, substantial decreases in steel prices during periods

of economic weakness have not always been balanced by commensurate price increases during periods of

economic strength. Any sustained price recovery will most likely require a broad economic recovery, in order

to underpin an increase in real demand for steel products by end users.

4. Overcapacity and oversupply in the global steel industry may adversely affect our profitability.

China is the largest steel producing country in the world by a significant margin, with the balance between its

domestic production and demand being an important factor in the determination of global steel prices. In

addition, Chinese steel exports may have a significant impact on steel prices in markets outside of China,

including in the markets where we operate. Any production overcapacity and oversupply in the steel industry

would likely cause increased competition in steel markets around the world which would likely lead to reduced

profit margins for steel producers, and would also likely have a negative effect on our ability to increase steel

production in general. A prolonged global recession could result in a global reduction in demand for steel and

steel products, which may result in adverse effect on the prices of steel and related products. No assurance can

be given that we will be able to continue to compete in such an economic environment or that a prolonged

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stagnation of the global economy or production overcapacity will not have a material adverse effect on our

business, results of operations, financial condition or prospects. See “—The steel industry is affected by global

economic conditions. Slower than expected or uneven growth of the global economy or a renewed global

recession could have a material adverse effect on the steel industry and us.”

5. Developments in the competitive environment in the steel industry, such as consolidation among our

competitors, could have a material adverse effect on our competitive position and hence our business,

financial condition, results of operations or prospects.

We believe that the key competitive factors affecting our business include product quality, changes in

manufacturing technology, workforce skill and productivity, cash operating costs, pricing power with large

buyers, access to funding, the degree of regulation and access to low-cost raw materials. Although we believe

that we are a competitive steel producer, we cannot assure prospective investors that we will be able to compete

effectively against our current or emerging competitors with respect to each of these key competitive factors.

In the past, there have been instances of consolidation among our competitors. For example, the merger of

Mittal Steel and Arcelor in 2006 created a company that continues to be the largest steel producer in the world.

In 2012, Nippon Steel merged with Sumitomo Metal Corporation, creating the second largest steel producer

in the world. In 2016, China’s Baosteel and Wuhan Iron and Steel formally merged and became second largest

steel maker in the world in terms of volume. Recently in 2019, the JV of ArcelorMittal and Nippon Steel

completed the acquisition of Essar Steel Limited establishing the foot print for both ArcelorMittal and Nippon

Steel in India. Competition from global steel producers with expanded production capacities, new market

entrants, especially from China and India, could result in significant price competition, declining margins and

a reduction in revenue. For example, these companies may be able to negotiate preferential prices for certain

products or receive discounted prices for bulk purchases of certain raw materials that may not be available to

us.

Further, recent changes in India’s debt restructuring and insolvency laws, including the introduction of

Insolvency and Bankruptcy Code, 2016, could also lead to consolidation among our competitors and new

entrants in steel industry.

In addition, our competitors may have lower leverage and stronger balance sheets. Larger competitors may

also use their resources, which may be greater than ours, against us in a variety of ways, including by making

additional acquisitions, investing more aggressively in product development and capacity and displacing

demand for our export products. The market is still highly fragmented, and if the trend towards consolidation

continues, we could be placed in a disadvantageous competitive position relative to other steel producers and

our business, results of operations, financial condition and prospects could be materially and adversely

affected. In addition, a variety of known and unknown events could have a material adverse impact on our

ability to compete. For example, changes in the level of marketing undertaken by competitors, governmental

subsidies provided to foreign competitors, dramatic reductions in pricing policies, exporters selling excess

capacity from markets such as China, Ukraine and Russia, irrational market behavior by competitors, increases

in tariffs or the imposition of trade barriers could all affect our ability to compete effectively. Any of these

events could have a material adverse impact on our business, results of operations, financial condition and

prospects.

6. The steel industry is characterized by a high proportion of fixed costs and volatility in the prices of raw

materials and energy, including mismatches between trends in prices for raw materials and steel, as well as

limitations on or disruptions in the supply of raw materials, which could adversely affect our profitability.

Steel production requires substantial amounts of raw materials and energy, including iron ore, coking coal and

coke, scrap and power, which are subject to significant price volatility. The production of steel is capital

intensive, with a high proportion of fixed costs to total costs. Consequently, steel producers generally seek to

maintain high capacity utilization. If capacity exceeds demand, there is a tendency for prices to fall sharply if

supply is largely maintained. Conversely, expansion of capacity requires long lead times so that, if demand

grows strongly, prices increase rapidly, as unutilized capacity cannot be brought on line as quickly. The result

can be substantial price volatility. While we have taken steps to reduce operating costs, such as entering into

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strategic joint ventures in India and overseas to secure supplies of raw materials and energy, we may be

negatively affected by significant price volatility, particularly in the event of excess production capacity in the

global steel market, and incur operating losses as a result.

Volatility in the prices of raw materials and energy, including mismatches between trends in prices for raw

materials and steel, and limitations on, or disruptions in, supply of raw materials could adversely affect our

profitability. The availability and prices of raw materials may be negatively affected by, among other factors,

new laws or regulations; suppliers’ allocations to other purchasers; business continuity of suppliers;

interruptions in production by suppliers; accidents or other similar events at suppliers’ premises or along the

supply chain; wars, natural disasters and other similar events; fluctuations in exchange rates; consolidation in

steel-related industries; the bargaining power of raw material suppliers and the availability and cost of

transportation. Although our Indian operations source a portion of their iron ore and coal requirements from

captive mines and also have new mines under development, we currently obtain a significant majority of our

raw materials requirements, including all raw materials for our operations in Europe, under supply contracts

or from the spot market. The raw materials industry is highly concentrated and suppliers in recent years have

had significant pricing power. Further consolidation among suppliers would exacerbate this trend. Since 2010,

raw materials suppliers began to move towards sales based on quarterly and monthly indexed prices rather

than annually priced contracts under which steel producers face increased exposure to production cost and

price volatility. This change may in turn reduce the steel producers’ access to reliable supplies of raw materials.

Further, operations at some of our mines in India were disrupted in 2015 due to various reasons, including

judicial orders and regulatory disputes. Such disruptions forced us to purchase iron ore and coal on spot basis

or rely on imports, resulting in increased raw material costs.

In recent years, many steel companies have been focused on acquiring raw materials projects around the world

in an effort to limit their exposure to the volatility and instability of the markets for raw materials. To the extent

such companies use these raw materials in their own steel production, these acquisitions will further limit the

supply of these raw materials available for purchase in the global markets. Any prolonged interruption in the

supply of raw materials or energy, or failure to obtain adequate supplies of raw materials or energy at

reasonable prices or at all, or increases in costs which we are unable to pass on to our customers, could have a

material adverse effect on our business, financial condition, results of operations or prospects.

Despite the high correlation between steel and raw material prices, with both having experienced significant

declines during the global economic crisis, there can be no assurance that this correlation will continue. If raw

materials and energy prices rise significantly (either as a result of supply constraints or other reasons) but

prices for steel do not increase commensurately, it would have a material adverse effect on our business,

financial condition, results of operations and prospects.

In addition, energy costs, including the cost of electricity and natural gas, represent a substantial portion of the

cost of goods sold by steel producers generally, including us. Historically, energy prices have varied

significantly, and this trend may continue due to market conditions and other factors beyond the control of

steel producers. As the production of direct reduced iron and the re-heating of steel involve the use of

significant amounts of energy, steel producers are sensitive to energy prices and are dependent on having

access to reliable supplies. For example, we mothballed our steel processing plant at Llanwern, United

Kingdom in 2015 due to high energy prices. Accordingly, even moderate increases in energy prices can have

a significant effect on our business, financial condition, results of operations and prospects.

7. We have a substantial amount of indebtedness, which may adversely affect our cash flow and our ability to

operate our business.

Our outstanding gross indebtedness as of December 31, 2019 was Rs. 1,09,867 crores Any downturn in the

steel industry increases the possibility that we may be unable to generate cash sufficient to pay, when due, the

principal of, interest on or other amounts due in respect of its indebtedness. In addition, as this debt matures,

we may need to refinance or secure new debt which may not be available on favorable terms or at all. Recently

we have refinanced our European debt through our subsidiary TSNHBV for loan facilities of EUR 1.75 billion.

This facility has extended the maturity profile of the group debt. Post this approximately 3% of this outstanding

indebtedness is due in Fiscal year 2020 and 1.62% in Fiscal year 2021, a portion of which may be refinanced

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by our Company through loans with longer tenors. Approximately 13% of this outstanding indebtedness

matures before Fiscal year 2024 (including indebtedness maturing within one year).

Our high indebtedness levels, and other financial obligations and contractual commitments, may have other

significant consequences for our business and results of operations, including:

• increased vulnerability to adverse changes in economic conditions, government regulation or the

competitive environment;

• diversion of our cash flow from operations to payments on our indebtedness and other obligations and

commitments, thereby reducing the availability of our cash flows to fund working capital, capital

expenditure, acquisitions and other general corporate purposes;

• limiting additional borrowings for working capital, capital expenditure, acquisitions, debt refinancing

service requirements, execution of its business strategy or other purposes;

• impairing our ability to pay dividends in the future; and

• exacerbating the impact of foreign currency movements on our profitability and cash flows.

A significant portion of our indebtedness has been incurred by our Company’s subsidiaries, including Tata

Steel Europe Limited (“TSE”). Our Company may be required, under various financing arrangements, to

provide financial resources to support such subsidiaries under their existing and future indebtedness. Our

Company has provided financial support to TSE and other subsidiaries in the past and there can be no assurance

that we will not be required to contribute additional funds to reduce the outstanding debt or otherwise provide

substantial support to our subsidiaries in the future.

In addition, our high indebtedness levels, and other financial obligations and contractual commitments could

lead to a downgrade of its credit rating by international and domestic rating agencies, thereby adversely

impacting our ability to raise additional financing and the interest rates and commercial terms on which such

additional financing is available. On April 14, 2020, S&P Global Ratings lowered its issuer credit rating on

Tata Steel to 'B+' with a ‘Negative’ outlook from 'BB-' with a ‘Stable’ outlook and on April 15, 2020, Moody's

Investors Service has placed Tata Steel's corporate family rating ‘Ba2’ under review for downgrade.

We may incur additional borrowings in the future, including by way of issuing bonds. Our inability to meet

our debt service obligations and repay our outstanding indebtedness depends primarily on the revenue

generated by our business. We cannot assure you that we will generate sufficient revenues to service existing

or proposed borrowings or fund other liquidity needs.

8. Mining operations are subject to substantial risk, including those related to operational hazards and

environmental issues.

We currently operate several iron ore and coal mines in India and have an interest in mines in Mozambique

and Canada. We may substantially increase the scope of our mining activities in the future. These operations

are subject to hazards and risks normally associated with the exploration, development and production of

natural resources including industrial accidents, such as explosions, fires, transportation interruptions and

inclement weather. The occurrence of any of these events, or similar events, could delay production, increase

production costs and result in death or injury to persons, damage to property and liability for us, some or all

of which may not be covered by insurance, as well as substantially harm our reputation.

These operations are also subject to hazards and risks relating to negative environmental consequences such

as those resulting from tailings and sludge disposal, effluent management and disposal of mineralized waste

water and rehabilitation of land disturbed during mining processes. In addition, environmental awareness

throughout the world, including in India and other emerging markets, has grown significantly in recent years,

and opposition to mining operations have also increased due to the perceived negative impact they have on the

environment. Public protests over our mining operations could cause operations to slow down, damage our

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reputation and goodwill with the governments or public in the countries and communities in which we operate,

or cause damage to our facilities. Public protest could also affect our ability to obtain necessary licenses to

expand existing facilities or establish new operations. Consequently, negative environmental consequences as

well as public opposition to our current or planned mining operations could have a material adverse effect on

our results of operations and financial condition.

9. Our estimates of our Indian mineral reserves and the mineral reserves of our other mining investments are

subject to assumptions, and if the actual amounts of such reserves are less than estimated, or if we are

unable to gain access to sufficient mineral reserves, our results of operations and financial condition may

be adversely affected.

Our estimates of our iron ore and coal resources, including in India, Canada and Mozambique are subject to

probabilistic assumptions based on interpretations of geological data obtained from sampling techniques and

projected rates of production in the future. In addition, no independent third-party reports have been generated

to ascertain the level of mineral reserves located at certain of our existing and potential mining sites. Actual

reserves and production levels may differ significantly from reserve estimates. Furthermore, it may take many

years from the initial phase of exploration before production is possible during which time the economic

feasibility of exploiting such reserves may change. There can be no assurance that commercial levels of raw

materials will be discovered or that the mines will produce raw materials at the estimated amounts or at all.

If mineral reserves or the quality of such reserves are overestimated, the level of viable reserves would be

lower than expected, and we may be forced to purchase such minerals in the open market. Prices of minerals

in the open market may significantly exceed the cost at which we might otherwise be able to extract these

minerals, which would cause costs to increase and consequently adversely affect our businesses, results of

operations, financial condition and prospects.

10. Our leased mines are valuable to our operations and consequently if we are unable to renew any lease or

obtain new lease rights we may be required to purchase such minerals for higher prices in the open market

or pay escalated royalties for the existing leases which may negatively impact our results of operations and

financial condition.

We extract minerals in India pursuant to mining leases from state governments in the areas in which such

mines are located including leases for iron ore mines at Noamundi, Joda and Khondbond and coal mines at

West Bokaro, Odisha and Jamadoba, Jharkhand. These leases are granted under the Mines and Minerals

(Development and Regulation) Act, 1957 and the Mines and Minerals (Development and Regulation)

Amendment Act, 2015. In addition, we have plans to increase the scope of our mining activities pursuant to

new leases with the state governments in Odisha and Jharkhand. Our current leases have been extended

(disputes in respect of renewal of the lease for the mines at Noamundi is being contested by our Company

based on interpretation of the Mines and Minerals (Development and Regulation) Amendment Act, 2015) and

the extension is subject to the lessee not being in breach of any applicable laws and complying with such other

conditions as the relevant governmental authorities may impose.

If our mining leases in India are not extended, or are renegotiated on terms that are less favorable, or no new

leases are made available, or royalties charged against our leases are increased, we may be forced to purchase

such minerals in the open market or pay increased royalties. If prices in the open market exceed the cost at

which we might otherwise be able to extract these minerals or there is an increase in royalties payable, our

costs would increase and our business, results of operations, financial condition and prospects would be

materially and adversely affected.

11. Inability to obtain, renew or maintain the statutory and regulatory permits, licenses and approvals required

to operate our business could have a material adverse effect on our business.

We require certain statutory and regulatory permits, licenses and approvals for our business in each of the

jurisdictions in which we operate. There can be no assurance that the relevant authorities will issue such

permits or approvals in the time frame anticipated by us or, at all.

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If we are unable to obtain and maintain the requisite licenses in a timely manner or at all, or to renew or

maintain existing permits or approvals, or comply with the terms and conditions prescribed in such permits or

approvals, it may result in the interruption of our operations (including suspension or termination of its mining

leases) and may have a material adverse effect on our business, financial condition and results of operations.

12. We face risks relating to our joint ventures.

We have also entered into, and may from time to time in the future enter into, joint venture agreements,

including for raw material projects. We may have limited control of these projects and therefore may be unable

to require that our joint ventures sell assets or return invested capital, make additional capital contributions or

take any other action. If there is a disagreement between us and our partners in a joint venture regarding the

business and operations of the project, there can be no assurance that we will be able to resolve such

disagreement in a manner that will be in our best interests or at all. Certain major decisions, such as selling a

stake in the joint project, may require the consent of all other partners. These limitations may adversely affect

our ability to obtain the economic and other benefits we seek from participating in these projects. In addition,

our joint venture partners may have economic or business interests or goals that are inconsistent with ours;

take actions contrary to our instructions, requests, policies or objectives; be unable or unwilling to fulfill their

obligations; withdraw technology licenses provided to us; have financial difficulties; or have disputes as to

their rights, responsibilities and obligations. Our joint venture partners may also enter into business

partnerships with our competitors after the expiry of applicable non-compete periods, if any. Any of these and

other factors may have a material adverse effect on our joint venture projects, which may in turn materially

and adversely affect our business, results of operations, financial condition and prospects.

13. We face risks relating to the restructuring of our European operations.

We are currently in the process of restructuring our European operations in order to increase efficiency in

servicing the European markets, which may include “The transformation program” to make business stronger

and more sustainable with focus on boosting productivity, reducing bureaucracy, and increasing sales of

higher-value steel product. Such restructuring and transformation activities may include, amongst other things,

entering into joint venture agreements, undertaking mergers or debt restructurings of our European operations,

cost cutting activities This may result in a reduction of our overall production capacity in Europe. There can

be no assurances that such restructuring exercises or transformation programs would result in an increase in

efficiency as envisaged by us. There may be external factors such as a delay in obtaining regulatory approvals,

dead-locks in negotiations and labor disputes which may hinder our restructuring and transformation exercises.

This may adversely affect our business, results of operations, financial condition and prospects.

14. Our UK business has separated from the BSPS and the majority of BSPS members have completed a

consensual transfer exercise to a new scheme sponsored by Tata Steel UK Ltd.

On March 31, 2017 the British Steel Pension Scheme (“BSPS”) was closed to future accrual and replaced by

a defined contribution scheme. On September 11, 2017 the BSPS separated from Tata Steel UK Ltd and a

number of affiliated companies by way of a Regulated Apportionment Arrangement (“RAA”). Tata Steel UK

Ltd has also agreed to sponsor a proposed new pension scheme (“BSPS2”), to which BSPS members were

given a choice to transfer (or stay with the BSPS which would fold into the Pension Protection Fund

eventually). The consent process was completed by March 2018. The new Scheme/ BSPS2 has been formed

with a substantial surplus. It has lower risk relative to the erstwhile BSPS and it is not expected that additional

cash contributions will be necessary to make into this scheme. However there is no assurance that the fund

gets into deficit due to economic risks, demographic risks, interest rate risks and inflation risks.

15. Europe is one of our largest market, and our current business and future growth could be materially and

adversely affected by economic conditions in Europe.

Europe is a significant market, accounting for approximately 41% and 48% of our revenue in each of the

Fiscals 2019 and 2018, respectively. Sales of our products in Europe are affected by the condition of major

steel consuming industries, such as the automobile, infrastructure and construction sectors, and the European

economy in general. In addition, a significant part of our operations and assets are located in Europe.

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Euro area is registered a growth rate of 1.4% in 2019 down from 2.3% in 2018, before rebounding to 1.8% in

2020. The UK left EU on January 31, 2020 (“Brexit”) under the terms of the Agreement on the withdrawal of

the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic

Energy Community (the “Withdrawal Agreement”). Following the UK’s departure from the European

Union, there will be a “transition period” ending December 31, 2020 during which almost all European Union

law will continue to apply to the UK as if it were a Member State of the European Union, with limited

exceptions. The Withdrawal Agreement allows for this “transition period” to be extended by one or two years

if both the European Union and the UK agree to such extension before July 1, 2020, but the UK government

is currently legislating to require the transition period to end on December 31, 2020 without the possibility to

extend further. In that scenario, among other things, the trading relationship between the UK and the European

Union will be governed by whatever agreement the two parties can reach in the course of 2020. On that short

timetable, the UK and the European Union are likely to focus on ensuring tariff-free trade but it is unclear

whether there would be any formal regulatory alignment between the UK and the European Union rules after

January 1, 2021. In the unlikely event that the UK leaves the European Union without any form of agreement

or arrangement, so called “hard Brexit”, the UK will be separated from the European Union from a regulatory

perspective upon the expiry of the “transition period” and lose the benefits and obligations of European Union

membership. Until there is further clarity on how the future relationship between the UK and the European

Union will be governed after the “transition period”, it is not possible to determine the impact that the

withdrawal process may have on the wider global financial markets or the business of the Group, however,

this could raise tariffs and cause inflation. A hard Brexit could damage the UK economic growth. Tighter

financial conditions in Europe could have adverse spill-over effect on global growth and any further tighter

financial conditions in US, Europe or China is likely to have adverse spill-over effect on global growth.

These and other related events have had a significant impact on the global credit and financial markets as a

whole, including reduced liquidity, greater volatility, widening of credit spreads and a lack of price

transparency in the United States, Europe and global credit and financial markets. In response to such

developments, legislators and financial regulators in the United States, Europe and other jurisdictions,

including India, have implemented several policy measures designed to add stability to the financial markets.

In addition, any announcement by the United State Federal Reserve to increase interest rates may lead to an

increase in the borrowing costs in the United States and may impact borrowing globally as well. Further, in

several parts of the world, there are signs of increasing retreat from globalization of goods, services and people,

as pressures for protectionism are building up and such developments could have the potential to affect exports

from India. Continued impact of COVID-19 and other related factors could potentially result in a more

prolonged global recession if the global economy experiences another negative growth shock and could result

in a global reduction in demand for steel and steel products, disruption of supply chains globally, reduction in

liquidity and lack of availability of credit for us and our consumers, the occurrence of any of which may have

a material adverse impact on our business, results of operations, financial condition and prospects. See “—The

steel industry is affected by global economic conditions. Slower than expected or uneven growth of the global

economy or a renewed global recession could have a material adverse effect on the steel industry and us.”

The United Kingdom’s decision to leave the European Union has increased economic uncertainty and is

expected to impact the level of investment activity and the pace of recovery for both the United Kingdom and

the Eurozone economy. Any future deterioration of the European and global economy could adversely affect

the Group’s business, financial condition, results of operations and prospects.

16. Changes in assumptions underlying the carrying value of certain assets, including as a result of adverse

market conditions, could result in impairment of such assets, including intangible assets such as goodwill.

We review the carrying amounts of our tangible and intangible assets (including investments) to determine

whether there is any indication that the carrying amount of those assets may not be recoverable through

continuing use.

Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that their

carrying amount may not be recoverable. We make a number of significant assumptions and estimates when

applying the impairment test, including in estimation of the net present value of future cash flows attributable

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to assets or cash generating units. The actual results or performance of these assets or cash generating units

could differ from estimates used to evaluate the impairment of assets. In the event that the recoverable amount

of any cash-generating unit is less than the carrying amount of the unit, the impairment loss will first be

allocated to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the

unit in proportion to the carrying amount of each asset in the unit. However, the decrease in recoverable amount

of assets is not conclusively indicative of a long-term diminution in value of the assets.

While impairment does not affect reported cash flows, the decrease in estimated recoverable amount, as well

as, the related non-cash charge in the consolidated statement of profit and loss could have a material adverse

effect on our financial results or on key financial ratios. Since the 2008 financial crisis, our businesses,

including European operations, have been under severe pressure, and we have recognized non-cash write

downs of goodwill and assets in connection with these operations. Many of our peers in the steel industry have

taken substantial impairment charges in their accounts for their most recent financial year.

Impairment loss recognized in respect of property, plant and equipment (including capital work-in-progress)

and intangible assets for the year ended March 31, 2019 was Rs. 182 crores (year ended March 31, 2018 was

Rs. 1,161.93 crores).

In accordance with our policy, impairment review is conducted only at the end of the last quarter of the

financial year. There can be no assurance that we will not be required to take impairment charges in Fiscal

2020, in relation to our operations or elsewhere, or thereafter and, if taken, such charges may be significant.

Any future impairment charges may adversely impact our financial covenants, liquidity position and results of

operations.

17. The production of steel is capital intensive, with long gestation periods.

The production of steel is capital intensive, with a high proportion of investment in fixed assets such as land,

plant and machinery. Further, setting up of new capacities or expansion of existing capacities require long lead

times. If total capacity in the industry exceeds demand, there is a tendency for prices to fall sharply if supply

is largely maintained. Conversely, if demand grows strongly, prices increase rapidly, as unutilized capacity

cannot be brought on line as quickly. The result can be substantial price volatility. While we have taken steps

to reduce operating costs, we may be negatively affected by significant price volatility, particularly in the event

of excess production capacity in the global steel market, and incur operating losses as a result.

In line with the increased action taken by national governments to contain the spread of COVID-19, the Group

has reduced, and will be further reducing operations at some sites. However, we may be required to continue

to incur certain operating costs such as employee wages. A prolonged global recession could result in a global

reduction in demand for steel and steel products, which may result in adverse effect on the prices of steel and

related products. See “—The steel industry is affected by global economic conditions. Slower than expected

or uneven growth of the global economy or a renewed global recession could have a material adverse effect

on the steel industry and us.”

18. If we are unable to successfully implement our growth strategies, our results of operations and financial

condition could be adversely affected.

As part of its future growth strategy, the Company plans to expand its steelmaking capacity through a

combination of brownfield growth, new greenfield projects and acquisition opportunities and to focus this

additional capacity on the increased production of high-value products. The Company has acquired Bhushan

Steel through its subsidiary, Bamnipal Steel Limited, acquired Usha Martin’s steel business through Tata Steel

Long products Limited (erstwhile Tata Sponge Iron Limited) and initiated the expansion of Kalinganagar

Phase-2 and other expansion projects. The majority of these projects are aimed at increasing the size of its

Indian operations. Each of these expansion projects are significant increases to the Company’s historical

production capacity in India. These projects, and a number of other expansion projects, to the extent that they

proceed, would involve risks, including risks associated with the timely completion of these projects, and

failure by the Company to adequately manage these risks notwithstanding its upgraded operational and

financial systems, procedures and controls could have a material adverse effect on the Company’s business,

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financial condition, results of operations and prospects. Factors that could affect the Company’s ability to

complete these projects include receiving financing on reasonable terms, obtaining or renewing required

regulatory approvals and licenses, delays in land acquisitions, a decline in demand for the Company’s products

and general economic conditions. For example, the Company’s Odisha project during its Phase-1 has

experienced delays primarily associated with land acquisition, licenses and construction delays due to extreme

weather conditions. Delays associated with land acquisitions and obtaining various licenses and approvals

require the coordination and cooperation of various governmental agencies and third parties that are outside

the control of the Company. In many cases, even though the Company has paid for or applied for acquisitions,

services or licenses, delays associated with the responsiveness of counterparties have been one of the key

reasons for construction delays. To accommodate this growth, the Company has needed to implement a variety

of new and upgraded operational and financial systems, procedures and controls, including the improvement

of its accounting and other internal management systems, all of which require substantial management time

and effort. In this regard, the Company established a Committee to consider and approve the placing of large

orders of equipment, plant and machinery and to monitor the progress of projects. In addition, the feasibility

of the Company’s growth strategies are also dependent upon the ability of the Company to negotiate extensions

of memorandums of understanding with the relevant state governments, obtain new iron ore mining leases

from the relevant state governments and on certain political factors including the resettlement and

rehabilitation of people living on the land to be used in a project. Any of these factors may cause the Company

to delay, modify or forego some or all aspects of its expansion plans. In addition, certain brownfield expansions

have required the temporary shut-down of operations at the particular facility being upgraded. During these

periods, the Company could experience reduced production volumes which could translate into reduced sales

volumes. This could have a direct negative impact on revenue and operating results for such period.

Consequently, the Company cannot assure prospective investors that it will be able to execute these projects

and, to the extent that they proceed, that it will be able to complete them on schedule or within budget. In

addition, there can be no assurance that the Company will be able to achieve its goal of increasing the

production of high-value products or that it will otherwise be able to achieve an adequate return on its

investment. Failure to do so could have a material adverse effect on the Company’s business, financial

condition, results of operations and prospects.

19. If industry-wide steel inventory levels are high, customers may draw from inventory rather than purchase

new products, which would reduce our sales and earnings.

Above-normal industry inventory levels can cause a decrease in demand for our products and thereby adversely

impact our earnings. High industry-wide inventory levels of steel reduce the demand for production of steel

because customers can draw from inventory rather than purchase new products. This reduction in demand

could result in a corresponding reduction in prices and sales, both of which could contribute to a decrease in

earnings. Industry-wide inventory levels of steel products can fluctuate significantly from period to period.

20. We are subject to certain restrictive covenants in our financing arrangements which may limit operational

and financial flexibility, and failure to comply with these covenants may have a material adverse effect on

our future results of operations and financial condition.

Certain of our financing arrangements include covenants to maintain certain debt to equity ratios, debt

coverage ratios and certain other liquidity and profitability ratios. There can be no assurance that such

covenants will not hinder business development and growth. In the event that we breach any covenants under

our financing arrangements or requisite consents/waivers cannot be obtained, the outstanding amounts due

under such financing agreements could become due and payable immediately. A default under one of these

financing agreements may also result in cross-defaults under other financing agreements and result in the

outstanding amounts under such financing agreements becoming due and payable immediately. Defaults under

one or more of our financing agreements could have a material adverse effect on our business, results of

operations, financial condition and prospects.

Some of our financing agreements and debt arrangements set limits on or require us to obtain lender consents

before, among other things, undertaking certain projects, issuing new securities, changing our business,

merging, consolidating, selling significant assets or making certain acquisitions or investments. In the past, we

have been able to obtain required lender consents for such activities. However, there can be no assurance that

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we will be able to obtain such consents in the future. If our financial or growth plans require such consents,

and such consents are not obtained or other condition or covenant under our financing agreements is not waived

by the lender, we may be forced to forgo or alter our plans, which could adversely affect our results of

operations, financial condition and prospects.

In addition, certain covenants may limit our ability to raise incremental debt or to provide collateral.

21. Our contingent liabilities could adversely affect our financial condition.

We have created provisions for certain contingent liabilities in our financial statements. There can be no

assurance that we will not incur similar or increased levels of contingent liabilities in the current Fiscal or in

the future and that our existing contingent liabilities will not have material adverse effect on our business,

financial condition and results of operations.

22. We may not be able to obtain adequate funding required to carry out our future plans for growth.

Disruptions in global credit and financial markets and the resulting governmental actions around the world

could have a material adverse impact on our ability to meet funding needs. We require continuous access to

large quantities of capital in order to carry out day-to-day operations. We have historically required, and in the

future expect to require, outside financing to fund capital expenditure needed to support the growth of our

business (including the additional operational and control requirements of this growth) as well as to refinance

our existing debt obligations and meet our liquidity requirements.

In the event of adverse market conditions, or if actual expenditure exceeds planned expenditure, our external

financing activities and internal sources of liquidity may not be sufficient to support current and future

operational plans, and we may be forced to, or may choose to, delay or terminate the expansion of the capacity

of certain of its facilities or the construction of new facilities. Our ability to arrange external financing and the

cost of such financing, as well as our ability to raise additional funds through the issuance of equity, equity-

related or debt instruments in the future, is dependent on numerous factors. These factors include general

economic and capital market conditions, interest rates, credit availability from banks or other lenders, investor

confidence in us, our success, provisions of tax and securities laws that may be applicable to our efforts to

raise capital, the political and economic conditions in the geographic locations in which we operate, the amount

of capital that other entities may seek to raise in the capital markets, the liquidity of the capital markets and

our financial condition and results of operations.

There can be no assurance that we will be able to obtain bank loans or renew existing credit facilities granted

by financial institutions in the future on reasonable terms or at all or that any fluctuation in interest rates will

not adversely affect its ability to fund required capital expenditure. We may be unable to raise additional equity

on terms or with a structure that is favorable, if at all. If we are unable to arrange adequate external financing

on reasonable terms, our business, operations, financial condition and prospects may be adversely and

materially affected.

23. We operate a global business and its financial condition and results of operations are affected by the local

conditions in or affecting countries where it operates.

We operate a global business and have facilities in the United Kingdom, the Netherlands, India, Thailand,

Singapore, Canada and Mozambique. As a result, our financial condition and results of operations are affected

by political and economic conditions in or affecting countries where we operate.

We face a number of risks associated with our operations, including: challenges caused by distance, local

business customs, languages and cultural differences, adverse changes in laws and policies, including those

affecting taxes and royalties on energy resources. In September, 2014, royalty rates on iron ores in India were

increased, which had a temporary adverse impact on the Group’s profitability, as there was a lag in passing

this cost through to customers. Other risks may be relating to labor, local competition law regimes,

environmental compliance and investments, difficulty in obtaining licenses, permits or other regulatory

approvals from local authorities; adverse effects from fluctuations in exchange rates; multiple and possibly

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overlapping and conflicting standards and practices of the regulatory, tax, judicial and administrative bodies

of the relevant foreign jurisdiction; political strife, social turmoil or deteriorating economic conditions; military

hostilities or acts of terrorism; and natural disasters, including earthquakes in India and flooding and tsunamis

in Southeast Asia, and epidemics or outbreaks such as corona virus, avian flu, swine flu or severe acute

respiratory syndrome. In line with the increased action taken by national governments to contain the spread of

COVID-19, the Group has reduced, and will be further reducing operations at some sites. See “—Outbreak of

COVID-19 has had, and could further have, a material adverse effect on the Group’s business, financial

condition and results of operations.” In addition, the infrastructure of certain countries where we operate

businesses, in particular, India and Thailand is less developed than that of many developed nations and

problems with its port, rail and road networks, electricity grid, communication systems or any other public

facility could disrupt our normal business activities.

Investments in certain countries could also result in adverse consequences to us under existing or future trade

or investment sanctions. The effect of any such sanctions could vary, but if sanctions were imposed on us or

on India, there could be a material adverse impact on the market for our securities or it could significantly

impair our ability to access the U.S. or international capital markets.

Any failure on our part to recognize and respond to these risks may materially and adversely affect the success

of our operations, which in turn could materially and adversely affect our business, results of operations,

financial condition and prospects.

24. A substantial and increasing portion of our revenues is derived from India and consequentially we are

exposed to risks associated with economic conditions in India.

India is principally the largest market for our operations and contributed approximately 56% of our revenue

on a consolidated basis in Fiscal 2019. A significant and ever-increasing portion of our revenue is generated

in India especially post acquisition of Bhushan Steel and Steel division of Usha Martin Limited. Existing and

potential competitors may increase their focus on India, which could reduce our market share. For example,

our competitors may intensify their efforts to capture a larger market share by undertaking aggressive pricing

strategies and increasing their focus on product development. Investors in emerging markets such as India

should be aware that these markets are subject to various risks, including in some cases significant legal,

economic and political risks. In addition, adverse political or economic developments in other Asian countries

could have a significant negative impact on, among other things, India’s GDP, foreign trade and economy in

general. Investors should note that emerging markets, including India, are subject to rapid change and

information contained in this document may quickly become outdated. Investors should exercise particular

care in evaluating risks involved and must decide for themselves whether, in light of those risks, an investment

in the NCD is appropriate.

25. The unexpected loss, shutdown or slowdown of operations at any of our facilities could have a material

adverse effect on our results of operations and financial condition.

Our facilities are subject to operating risks, such as the breakdown or failure of equipment, power supply

interruptions, facility obsolescence or disrepair, labor disputes, natural disasters and industrial accidents. The

occurrence of any of these risks could affect our operations by causing production at one or more facilities to

shut down or slowdown. No assurance can be given that one or more of the factors mentioned above will not

occur, which could have a material adverse effect on our results of operations and financial condition. For

instance, in line with the increased action taken by national governments to contain the spread of COVID-19,

the Group has reduced, and will be further reducing operations at some sites. As of the date of this Information

Memorandum, we did not know when the relevant government authorities will relax the measures taken to

contain the spread of COVID-19 (such as a lockdown) and as a result, we do not know when our regular

operations will resume.

In addition, our manufacturing processes depend on critical pieces of steelmaking equipment. Such equipment

may, on occasion, be out of service as a result of unanticipated failures, which could require us to close part

or all of the relevant production facility or cause production reductions on one or more of our production

facilities. Our facility and equipment would be difficult and expensive to replace on a timely basis. Any

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interruption in production may require significant and unanticipated capital expenditure to affect repairs, which

could have a negative effect on profitability and cash flows. Although we maintain business interruption

insurance, the recoveries under our insurance coverage may be delayed or may not be sufficient to offset the

lost revenues or increased costs resulting from a disruption of our operations. A sustained disruption to our

business could also result in a loss of customers. Any or all of these occurrences could result in the temporary

or long-term closure of our facilities, severely disrupt our business operations and materially adversely affect

our business, results of operations, financial condition and prospects.

26. Costs related to our obligations to pension and other retirement funds could escalate, thereby adversely

affecting our results of operations and financial condition.

We have significant pension and other retirement obligations to our employees. The relevant European Group

entities, most materially in the UK and the Netherlands, provide retirement benefits for substantially all of

their respective employees under several defined benefit and defined contribution plans. UK defined benefit

pension contributions are calculated by independent actuaries using various assumptions about future events.

The actuarial assumptions used may differ from actual future results due to changing market and economic

conditions, higher or lower withdrawal rates, longer or shorter life spans of participants or other unforeseen

factors. These differences may impact the actual net pension expense and liability, as well as future funding

requirements.

27. We face numerous protective trade restrictions, including anti-dumping laws, countervailing duties and

tariffs, which could adversely affect its results of operations and financial condition.

Protectionist measures, including anti-dumping laws, countervailing duties and tariffs and government

subsidization adopted or currently contemplated by governments in some of our export markets could

adversely affect our sales. Anti-dumping duty proceedings or any resulting penalties or any other form of

import restrictions may limit our access to export markets for its products, and in the future additional markets

could be closed to us as a result of similar proceedings, thereby adversely impacting our sales or limiting our

opportunities for growth.

Tariffs are often driven by local political pressure in a particular country and therefore there can be no

assurance that quotas or tariffs will not be imposed on us in the future. In the event that such protective trade

restrictions are imposed on us, our exports could decline. Additionally, there can be no assurance that the

Group will benefit from trade restrictions that protect the markets in which it produces the majority of its

products, being India and Europe. Foreign steel manufacturers may, as a result of trade restrictions in other

regions or other factors, attempt to increase their sales in these markets thereby causing increased competition

in India and Europe. A decrease in exports from India and Europe or an increase in steel imports to India and

Europe as a result of protective trade restrictions could have a negative impact on our business, financial

condition, results of operations and prospects. Our Group does avail itself to certain conditional concessionary

arrangements with respect to trade that may impose conditions on us which could lead to penalties if such

conditions are not met.

28. Any change in existing government policies providing support to steel manufactures, or new policies

withdrawing support presently available could adversely affect our business and results of operations.

FAny change in existing government policies providing support to steel manufactures, or new policies

withdrawing support presently available, in the jurisdictions in which we have operations could adversely

affect the supply and demand balance and the competitive environment. For example, in February, 2016, the

Government of India announced a minimum import price on 173 steel products to prevent dumping of steel

products. Subsequently, the minimum import price was discontinued and the Government of India imposed

anti-dumping duties on steel products with effect from August, 2016 for a period of five years. Similarly, in

February 2016, the European Union announced provisional anti-dumping duties on cold-rolled flat steel from

China and Russia. If any such measures are withdrawn or not renewed upon expiry, it may adversely affect

the competitive environment and we cannot assure that we would be able to pass on any resultant increase in

costs to our customers, which could adversely affect our business and results of operations.

G

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29. Environmental matters, including compliance with laws and regulations and remediation of contamination,

could result in substantially increased capital requirements and operating costs.

Our businesses are subject to numerous laws, regulations and contractual commitments relating to the

environment in the countries in which it operates and our operations generate large amounts of pollutants and

waste, some of which are hazardous. These laws, regulations and contractual commitments concern air

emissions, wastewater discharges, solid and hazardous waste material handling and disposal, and the

investigation and remediation of contamination or other environmental restoration. The risk of substantial costs

and liabilities related to compliance with these laws and regulations is an inherent part of our business.

Facilities currently or formerly owned or operated by us, or where wastes have been disposed or materials

extracted, are all subject to risk of environmental cost and liabilities, which includes the costs or liabilities

relating to the investigation and remediation of past or present contamination or other environmental

restoration. In addition, future conditions and contamination may develop, arise or be discovered that create

substantial environmental compliance, remediation or restoration liabilities and costs despite our efforts to

comply with environmental laws and regulations, violations of such laws or regulations can result in civil

and/or criminal penalties being imposed, the suspension of permits, requirements to curtail or suspend

operations, lawsuits by third parties and negative reputational effects. There can be no assurance that

substantial costs and liabilities will not be incurred in the future.

An increase in the requirements of environmental laws and regulations, increasingly strict enforcement thereof

by governmental authorities, or claims for damages to property or injury to persons resulting from the

environmental impacts of our operations or past contamination, could prevent or restrict some of our

operations, require the expenditure of significant funds to bring us into compliance, involve the imposition of

cleanup requirements and reporting obligations, and give rise to civil and/or criminal liability.

There can be no assurance that any such legislation, regulation, enforcement or private claim will not have a

material adverse effect on our business, financial condition or results of operations. In the event that production

at one of our facilities is partially or wholly disrupted due to this type of sanction, our business could suffer

significantly and our results of operations and financial condition could be materially and adversely affected.

In addition, our current and future operations may be located in areas where communities may regard our

activities as having a detrimental effect on their natural environment and conditions of life. Any actions taken

by such communities in response to such concerns could compromise our profitability or, in extreme cases,

the viability of an operation or the development of new activities in the relevant region or country.

30. Our steel manufacturing operations are hazardous processes that can cause personal injury and loss of life,

severe damage to property and equipment as well as environmental damage, which could cause us to incur

significant costs and liabilities and may damage our reputation.

We are subject to a broad range of health and safety laws and regulations in each of the jurisdictions in which

we operate. These laws and regulations, as interpreted by the relevant agencies and the courts, impose

increasingly stringent health and safety protection standards. The costs of complying with, and the imposition

of liabilities pursuant to, health and safety laws and regulations could be significant, and failure to comply

could result in the imposition of civil and/or criminal penalties, the suspension of permits or operations and

lawsuits by third parties.

Despite our efforts to monitor and reduce accidents at our facilities, there remains a risk that health and safety

incidents may occur. Such incidents could include explosions or gas leaks, fires or collapses in underground

mining operations, vehicular accidents and other incidents involving mobile equipment or exposure to

potentially hazardous materials. Due to the nature of our business, certain incidents can and do result in

employee fatalities. Some of our industrial activities involve the use, storage and transportation of dangerous

chemicals and toxic substances, and we are therefore subject to the risk of industrial accidents which could

have significant adverse consequences for our workers and facilities, as well as the environment. Such

incidents could lead to production stoppages, the loss of key assets, or put employees at risk (and those of sub-

contractors and suppliers) or persons living near affected sites. In addition, such incidents could damage our

reputation, leading to the rejection of products by customers, devaluation of the “Tata” brand and diversion of

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management time into rebuilding and restoring its reputation.

31. Our operating results are affected by movements in exchange rates and interest rates.

There has been considerable volatility in foreign exchange rates in recent years, including rates between the

Euro, the Rupee, the U.S. Dollar, the Japanese yen and other major foreign currencies. To the extent that we

incur costs in one currency and generate sales in another, the profit margins may be impacted by changes in

the exchange rates between the two currencies. The sales from our European operations are denominated

mainly in Euro, and sales from our Indian operations are primarily in Rupees. However exports from India

have increased significantly in recent years, which are mainly denominated in U.S. Dollars. The raw material

purchases for our European operations are denominated mainly in U.S. Dollars while employee related

expenses and other costs are primarily denominated in British pounds and Euros. The costs of our Indian

operations are primarily in Rupees although our revenue and capital goods imports, are mainly denominated

in U.S. Dollars and to a lesser extent in Euros and the Japanese Yen, among others. Our Group’s Indian

operations have debt denominated in foreign currency, while the imports of our Indian operations that are

denominated in U.S. Dollars currently exceed our exports denominated in U.S. Dollars on an annual basis. In

addition, because of ongoing growth projects in India for which we expect to incur significant capital

expenditure, including the purchase of steel production equipment, we are expected to have imports on our

capital account in Euros, U.S. Dollars, British pound and Japanese yen. The Group has hedging policies that

help minimize the volatility in cash flows, however, fluctuations in exchange rates, in particular between the

Euro and the British pound, Euro and the U.S. Dollar, Rupee and the U.S. Dollar and Rupee and the Japanese

yen, may impact our profit margins and revenue from operations.

We book forward contracts on a rolling basis to hedge currency mismatches in our European business. For

other exposures, we maintain a policy of booking forward contracts to hedge exposures once they are

crystallized. The Group has hedging policies that permit the use of different hedging instruments including

forward contracts, option contracts among other derivatives to hedge risks associated with foreign currency

fluctuations relating to certain firm commitments and forecasted transactions, changes in exchange rates may

nevertheless have a material and adverse effect on our business, results of operations, financial condition and

prospects.

As at March 31, 2019, our indebtedness included outstanding floating-rate debt in the amount of Rs. 55,246

crores. If interest rates rise, interest payable on this debt will also rise, thereby increasing our interest expense

and cost of new financing. Such a rise in interest rates may therefore materially and adversely affect our cash

flow, business, results of operations, financial condition and results of operations.

32. Competition from other materials, or changes in the products or manufacturing processes of customers that

use our steel products, could reduce market prices and demand for steel products and thereby reduce our

cash flow and profitability.

In many applications, steel competes with other materials that may be used as substitutes, such as aluminum

(particularly in the automobile industry), cement, composites, glass, plastic and wood. Government regulatory

initiatives mandating or creating incentives for the use of such materials in lieu of steel, whether for

environmental or other reasons, as well as the development of other new substitutes for steel products, could

significantly reduce market prices and demand for steel products and thereby reduce our cash flow and

profitability.

In addition, the steel market is characterized by evolving technology standards that require improved quality,

changing customer specifications and wide fluctuations in product supply and demand. The products or

manufacturing processes of the customers that use our steel products may change from time to time due to

improved technologies or product enhancements. These changes may require us to develop new products and

enhancements for our existing products to keep pace with evolving industry standards and changing customer

requirements. If we cannot keep pace with market changes and produce steel products that meet its customers’

specifications and quality standards in a timely and cost-effective manner, its business, results of operations,

financial condition and prospects could be materially adversely affected.

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33. We have undertaken, and may undertake in the future, strategic acquisitions, which may be difficult to

integrate, and may end up being unsuccessful.

We have in the past pursued, and may from time to time pursue in the future, acquisitions. From 2005 to 2007,

we acquired operations in Europe through the acquisition of Corus as well as operations in Thailand,

Singapore, China, Vietnam, India through the acquisitions of Tata Steel Thailand and NatSteel and operations

in India through acquisition of Bhushan Steel and the steel division of Usha Martin in India. These acquisitions

posed significant logistical and integration issues for us, as we had no previous experience in managing

substantial foreign companies or large-scale international operations.

Our ability to achieve the anticipated benefits from future acquisitions will depend in large part upon whether

we are able to integrate the acquired businesses into the rest of the group in an efficient and effective manner.

The integration of acquired businesses and the achievement of synergies require, among other things,

coordination of business development and procurement efforts, manufacturing improvements and employee

retention, hiring and training policies, as well as the alignment of products, sales and marketing operations,

compliance and control procedures, research and development activities and information and software

systems. Any difficulties encountered in combining operations could result in higher integration costs and

lower savings than expected. Integration of certain operations also requires the dedication of significant

management resources, and time and costs devoted to the integration process may divert management’s

attention from day to day business.

The Company has acquired Bhushan Steel Limited though its subsidiary, Bamnipal Steel Limited, acquired

Steel division of Usha Martin Limited through subsidiary Tata Steel Long Products Limited (Erstwhile Tata

Sponge Iron Limited) and initiated the expansion of Kalinganagar Phase-2 and other expansion projects. The

majority of these projects are aimed at increasing the size of its India. Each of these expansion projects are

significant increases to the Company’s historical production capacity in India. These projects, and a number

of other expansion projects, to the extent that they proceed, would involve risks, including risks associated

with the timely completion of these projects, and failure by the Company to adequately manage these risks

notwithstanding its upgraded operational and financial systems, procedures and controls could have a material

adverse effect on the Company’s business, financial condition, results of operations and prospects.

34. Labor problems could adversely affect our results of operations and financial condition.

Most of our employees in India, and a substantial portion of our employees in Europe, other than management,

are members of labor unions and are covered by collective-bargaining agreements with those labor unions,

which have different terms at different locations and are subject to periodic renegotiation. Although we work

to maintain good relations with unions, there can be no assurance that there will be no labor unrest in the future,

which may delay or disrupt our operations. If strikes, work stoppages, work slow-downs or lockouts at our

facilities occur or continue for a prolonged period of time, our business, results of operations, financial

condition and prospects could be adversely affected.

35. Our insurance policies provide limited coverage, potentially leaving us uninsured or under insured against

some business risks.

As part of risk management, we maintain insurance policies that may provide some insurance cover for labor

unrest, mechanical failures, power interruptions, natural calamities or other problems at any of our steelmaking

and mining facilities. While we believe that we maintain insurance coverage in amounts consistent with

industry norms, our insurance policies do not cover all risks and are subject to exclusions and deductibles.

If our production facility is damaged in whole or in part and our operations are interrupted for a sustained

period due to fire and similar perils, there can be no assurance that our insurance policies will be adequate to

cover the losses that may be incurred as a result of such interruption or the costs of repairing or replacing the

damaged facilities.

Notwithstanding the insurance coverage that we carry, the occurrence of any event that causes losses in excess

of limits specified under the policy, or losses arising from events not covered by insurance policies, could have

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a material adverse effect our business, financial condition and operating results.

36. We are involved in certain outstanding litigation, investigations and other proceedings and cannot assure

Investors that we will prevail in these actions.

There are several outstanding litigations against us and our directors. There are also various criminal cases

against our Company, our Directors and our subsidiaries. We are a defendant in legal proceedings incidental

to our business and operations. These legal proceedings are pending at different levels of adjudication before

various courts and tribunals in different jurisdictions. Should the proceedings be decided adversely against us,

or any new developments arise, such as a change in Indian law or rulings against us by appellate courts or

tribunals, we may incur significant expenses and management time in such legal proceedings and may need to

make provisions in its financial statements for such litigation, which could have a material adverse effect on

our business, results of operations, financial condition and prospects.

37. Our business is dependent on our continuing relationships with our customers and suppliers who can

suspend or cancel delivery of products.

Events of force majeure such as disruptions of transportation services because of weather-related problems,

strikes, epidemics, natural calamities, lock-outs, inadequacies in the road infrastructure and port facilities,

government actions or other events that are beyond the control of the parties and allow our suppliers to suspend

or cancel deliveries of raw materials could impair our ability to source raw materials and components and to

supply our products to customers. Similarly, our customers may suspend or cancel delivery of our products

during a period of force majeure and any suspensions or cancellations that are not replaced by deliveries under

new contracts or sales to third parties on the spot market would reduce cash flows and could adversely affect

our financial condition and results of operations. There can be no assurance that such disruptions will not

occur.

Further, the increased action taken by national governments to contain the spread of COVID-19 could also

have a significant effect on the businesses of our customers, and in turn, their credit worthiness. In India, and

in other countries that have implemented a lockdown on account of COVID-19, the effect of the lockdown is

expected to have a significant effect on the distribution and logistics networks of our suppliers. This may result

in a delay in despatch of raw material by our suppliers. If such delay results in our suppliers not being able to

despatch raw material even after the locations in which we operate are allowed to commence operations, we

may not be able to resume our operations at our existing capacity, or at all, as a result of non-availability of

raw materials. See “—Outbreak of COVID-19 has had, and could further have, a material adverse effect on

the Group’s business, financial condition and results of operations”.

38. Our success depends on the continued services of our senior management team.

Our success and growth depend on the continued services of our directors and other members of senior

management team. Their extensive experience in the steel industry and in-depth knowledge of various aspects

of our business operations. There can be no assurance that any executive director or member of senior

management will continue in his or her present position, or that we will be able to find and hire a suitable

replacement if any of them retires or joins a competing company. Moreover, along with our steady growth and

business expansion, we need to employ, train and retain additional suitable skilled and qualified management

and employees from a wider geographical area. If we cannot attract and retain suitable personnel, our business

and future growth may be materially and adversely affected.

39. Product liability claims could adversely affect our operations.

We sell products to major manufacturers who are engaged to sell a wide range of end products. Furthermore,

our products are also sold to, and used in, certain safety-critical applications. If we were to sell steel that does

not meet specifications or the requirements of the application, it could result in significant disruptions to the

customer’s production lines. There could also be significant consequential damages resulting from the use of

such products. We have a limited amount of product liability insurance coverage, and a major claim for

damages related to products sold could leave us uninsured against a portion or all of the award and, as a result,

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materially harm our financial condition and future operating results.

40. Investors should not rely on any speculative information released in the press or other media regarding us,

our business or the Issue.

We are one of the leading steel producers in the world. As a result of this position, there may be information

about us, our business and employees or the Issue carried by the press and other media which may be

speculative and unconfirmed by us. Prospective investors are cautioned that we do not accept any responsibility

for the accuracy or completeness of any such information in the press or other media regarding us, our business

and employees or the Issue. Investors should rely only on information included in this Information

Memorandum in making an investment decision with respect to this Issue.

Furthermore, speculative information about us, and our directors, officers and key employees could adversely

affect our reputation. Such speculation could potentially disrupt our ability to do business with counterparties

who give weight to media comment, thereby distracting our management from its responsibilities and

adversely affecting the trading price of our securities.

41. We rely on licensing arrangements with our Promoter to use the “Tata” brand. Any improper use of the

associated trademarks by the licensor or any other third parties could materially and adversely affect our

business, financial condition and results of operations.

Rights to trade names and trademarks are a crucial factor in marketing our products. Establishment of the

“Tata” word mark and logo mark in and outside India is material to our operations. We have licensed the use

of the “Tata” brand from our Promoter. If our Promoter, or any of its subsidiaries or affiliated entities, or any

third party uses the trade name “Tata” in ways that adversely affect such trade name or trademark, our

reputation could suffer damage, which in turn could have a material adverse effect on its business, financial

condition and results of operations.

42. We may be unable to realize the anticipated benefits of any acquisition we make under the IBC Process,

which could have a material adverse impact on our business, financial condition, reputation and results of

operation.

We have completed the acquisition of Tata Steel BSL Limited (formerly known as Bhushan Steel Limited)

(“Bhushan Steel”) under IBC, on May 19, 2018.

The valuation of the company depends on and is influenced by the cyclical nature of the global steel industry

and may lead us to overvalue the assets we acquire or may be unable to effectively utilize or turnaround the

acquired assets. We cannot assure you that any of these acquisitions will actually yield the benefits that may

have been envisaged by us at the time of undertaking the same.

We incurred additional debt for the acquisition of Bhushan Steel under IBC. As of December 31, 2019, the

Company had total gross borrowings of Rs. 1,09,867 crores on a consolidated basis. We may not be able to

secure additional debt in terms favorable to us or at all. Further, additional debt incurred for such an acquisition

increased our level of indebtedness substantially and we may be unable to generate sufficient cash to pay the

principal of, or interest on, or other amounts due in respect of such indebtedness when they are due.

Our resolution plans are based on certain assumptions and expectation that the acquisition would generate

synergies and growth opportunities. However, our assumptions may be incorrect and the acquisition may fail

to generate synergies or expected benefits for various reasons. For example, our evaluation of information

available as part of the IBC Process may be faulty and as a result, the acquisition may not yield the anticipated

benefits. Our analysis of potential benefits of acquisitions may be inaccurate as the assets are situated in a

geographic region where we do not operate or are manufacturing products in which we do not have sufficient

experience.

Our ability to achieve the benefits we anticipate from our acquisition may depend significantly on whether we

are able to integrate our business with that of the acquired entity in an efficient and effective manner. Such

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integration may involve, among other things, coordination of business development, employee retention,

alignment of products, sales and marketing operations. We may also have to rely on the management team of

the acquired entity and there can be no assurance that such team will be integrated with our management or

remain with the acquired entity.

Our acquisition may also be adversely affected if there are unfavourable changes in government policy or

market conditions. Any change in government policy which affects the steel industry directly or indirectly

(including due to impact on supply of raw materials or reduction of demand), or significant change in market

conditions which affects steel prices in India or globally, may result in our acquisition not achieving the

anticipated benefits.

External Risks

43. Our business is substantially affected by prevailing economic, political and other prevailing conditions in

India, Europe and the other markets we currently service.

Our Company is incorporated in India, and the majority of our assets and employees are located in India and

Europe. As a result, we are highly dependent on prevailing economic conditions in India and Europe and our

results of operations are significantly affected by factors influencing the Indian and Eurozone economy.

Factors that may adversely affect the Indian and Eurozone economy, and therefore our results of operations,

may include:

• continued impact of COVID-19 and other related factors;

• any increase in interest rates or inflation;

• any exchange rate fluctuation;

• any scarcity of credit or other financing in India, resulting in an adverse impact on the economic

conditions in India and scarcity of financing of our developments and expansions;

• debt crisis in certain European countries;

• political instability, a change in government or a change in the economic and deregulation policies;

• domestic consumption and savings;

• balance of trade movements, namely export demand and movements in key imports (oil and oil

products);

• volatility in oil prices globally and its consequent impact on global economies;

• annual rainfall in India which affects agricultural production;

• any exchange rate fluctuations;

• any scarcity of credit or other financing, resulting in scarcity of financing for our expansions;

• prevailing economic and income conditions among Indian and European consumers and corporations;

• volatility in, and actual or perceived trends in trading activity on, India’s principal stock exchanges;

• changes in tax, trade, fiscal or monetary policies, including application of good and services tax

(“GST”);

• political instability, terrorism or military conflicts in India or in countries in the region or globally;

• occurrence of natural or man-made disasters;

• infectious disease outbreaks or other serious public health concerns;

• prevailing regional or global economic conditions, including in India’s principal export markets;

• other significant regulatory or economic developments in or affecting India or its financial services

and pharmaceutical sectors;

• increase in India’s trade deficits or such trade deficits becoming unmanageable; and

• decline or future material decline in India’s foreign exchange reserves.

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Any slowdown or perceived slowdown in the Indian economy, or in specific sectors of the Indian economy,

could adversely impact our business, results of operations and financial condition and the price of the ordinary

shares. Our performance and the growth of our business depend on the performance of the Indian economy

and the economies of the regional markets we currently serve. These economies could be adversely affected

by various factors, such as political and regulatory changes including adverse changes in liberalization policies,

social disturbances, religious or communal tensions, terrorist attacks and other acts of violence or war, natural

calamities, interest rates, commodity and energy prices and various other factors. Any slowdown in these

economies could adversely affect the ability of our customers to afford our services, which in turn would

adversely impact our business and financial performance and the price of the ordinary shares.

High rates of inflation in India could increase our costs without proportionately increasing our revenues, and

as such decrease our operating margins. Any slowdown or perceived slowdown in the Indian and Eurozone

economy, or in specific sectors thereof, could adversely impact our business, results of operations and financial

condition and the price of the ordinary shares.

India’s trade relationships with other countries can influence Indian economic conditions. In the year ended

March 31, 2019, the trade deficit was approximately 2.1% of GDP. This large trade deficit neutralizes the

surpluses in India’s invisibles in the current account, resulting in a current account deficit. If India’s trade

deficits increase or become unmanageable, the Indian economy, and therefore our business, future financial

performance, cash flows and the trading price of the ordinary shares could be adversely affected.

A decline or future material decline in India’s foreign exchange reserves could impact the valuation of the

Rupee and could result in reduced liquidity and higher interest rates which could adversely affect our financial

condition and future financial performance.

44. Companies operating in India are subject to a variety of taxes and surcharges.

Tax and other levies imposed by the central and state governments in India that affect our tax liability include

income tax and indirect taxes on goods and services such as goods and services tax (“GST”), surcharge and

cess currently being collected by the central and state governments, which are introduced on a temporary or

permanent basis from time to time. The statutory corporate income tax in India includes a surcharge on the tax

and an education cess on the tax and the surcharge resulting in the highest effective tax rate of 34.944%.

Recently, the government pursuant to the Taxation Laws (Amendment) Ordinance, 2019 amended the Income

Tax Act, 1961 (“Income Tax Act”) to reduce the corporate income tax rate in certain cases. The central or

state government may vary the corporate income tax in the future. Any such future increases or amendments

may affect the overall tax efficiency of companies operating in India and may result in significant additional

taxes becoming payable. Additional tax exposure could materially and adversely affect our business, financial

condition and results of operations.

GST has been implemented with effect from July 1, 2017 and has replaced the indirect taxes on goods and

services, such as central excise duty, service tax, central sales tax, state value added tax, surcharge and excise,

collected by the central and state governments. GST has increased administrative compliance for companies,

which is a consequence of increased registration and form filing requirements. As the taxation system is

relatively new and could be subject to further amendments in the short term for the purposes of streamlining

compliance, the consequential effects on us cannot be determined as of now and there can be no assurance that

such effects would not adversely affect our business, future financial performance and the trading price of the

Debentures.

45. The taxation system in India could adversely affect our business, financial condition, cash flows and results

of operations.

The provisions relating to the GAAR (General Anti Avoidance Rules) were introduced in the Finance Act

2012 and have been applicable since April 1, 2018. The GAAR provisions intend to catch arrangements

declared as “impermissible avoidance arrangements”, which is any arrangement, the main purpose or one of

the main purposes of which is to obtain a tax benefit and which satisfy at least one of the following tests (a)

creates rights, or obligations, which are not normally created between persons dealing at arm’s length; (b)

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results, directly or indirectly, in misuse, or abuse, of the provisions of the Income Tax Act; (c) lacks

commercial substance or is deemed to lack commercial substance, in whole or in part; or (d) is entered into,

or carried out, by means, or in a manner, which is not normally employed for bona fide purposes. The tax

consequences of the GAAR could result in denial of tax benefits and other consequences, and if the GAAR is

made applicable to us, it may have an adverse tax impact on us. Any increases in or amendments in the tax

applicable to us due to the GAAR may result in additional taxes becoming payable by us.

46. Changes in the policies of, or changes in, the Indian Government, could adversely affect economic

conditions in India, and thereby adversely impact the Group’s results of operations and financial condition.

India remains the Group’s largest market, representing 56% of our revenue in Fiscal 2019. In addition, a

significant portion of the Group’s facilities are located in India. Consequently, the Group may be affected by

changes to Central Government policies, changes in the Central Government itself, or any other political

instability in India. For example, the imposition of foreign exchange controls, rising interest rates, increases

in taxation or the creation of new regulations could have a detrimental effect on the Indian economy generally

and the Group in particular.

The Central Government has sought to implement a number of economic reforms in recent years, including a

review of the national steel policy and the preparation of a five-year strategy paper for the promotion of the

steel sector in India, and has also continued the economic liberalization policies pursued by previous Central

Governments. However, the roles of the Central Government and the state governments in the Indian economy

as producers, consumers and regulators have remained significant. Any significant change in such

liberalization and deregulation policies could adversely affect business and economic conditions in India

generally which may have an adverse effect on the Group’s results of operations and financial condition.

47. The business and activities of the Group, as applicable, may be regulated by the Indian Competition Act,

2002.

The Indian Competition Act seeks to prevent business practices that have a material adverse effect on

competition in India. Under the Indian Competition Act, any arrangement, understanding or action in concert

between enterprises, whether formal or informal, which causes or is likely to cause a material adverse effect

on competition in India is void and attracts substantial monetary penalties.

Any agreement that directly or indirectly determines purchase or sale prices, limits or controls production,

shares the market by way of geographical area, market, or number of customers in the market is presumed to

have a material adverse effect on competition. Provisions of the Indian Competition Act relating to the

regulation of certain acquisitions, mergers or amalgamations which have a material adverse effect on

competition and regulations with respect to notification requirements for such combinations came into force

on June 1, 2011. The effect of the Indian Competition Act on the business environment in India is unclear and

it is difficult to predict its impact on the growth and expansion strategies of the Group. If the Group, as

applicable, is affected, directly or indirectly, by the application or interpretation of any provision of the Indian

Competition Act, or any enforcement proceedings initiated by the Competition Commission of India (“CCI”),

or any adverse publicity that may be generated due to scrutiny or prosecution by the Competition Commission

of India, it may have a material adverse effect on its business, prospects, results of operations, cash flows and

financial condition.

48. If regional hostilities, terrorist attacks or social unrest in India increase, our businesses could be adversely

affected.

India has from time to time experienced instances of civil unrest, terrorist attacks and hostilities with

neighboring countries. These hostilities and tensions could lead to political or economic instability in India

and have a possible adverse effect on the Indian economy, the Group’s businesses, prospects, results of

operations, cash flows and financial condition and future financial performance.

India has also experienced localized social unrest and communal disturbances in some parts of the country. If

such tensions become more widespread, leading to overall political and economic instability, it could have an

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adverse effect on the Group’s business, future financial performance and cash flows.

In addition, certain of our current and planned facilities, including its captive mines, are located in

geographically remote areas that may be at risk of terror attacks. For example, attacks by Naxalite rebels in

2009 targeted transportation infrastructure of mining operations in Chhattisgarh. While the Group was not

directly affected by these attacks, there can be no assurance that it will not be the target of such attacks in the

future. Such attacks may be directed at Group property or personnel, at property belonging to the Group’s

customers or at the state-owned infrastructure used by the Group to transport goods to customers. Such attacks,

or the threat of such attacks, whether or not successful, may disrupt the Group’s operations and/or delivery of

goods, result in increased costs for security and insurance and may adversely impact the Group’s business,

results of operations, financial condition and prospects, as well as place the Group’s assets and personnel at

risk.

49. If natural disasters occur in India, our results of operations and financial condition could be adversely

affected.

India has experienced floods, earthquakes, tsunamis, cyclones and droughts in recent years. Such natural

catastrophes could disrupt the Group’s operations, production capabilities or distribution chains or damage its

facilities located in India, including its production facilities and mines. While the Group’s facilities were not

damaged in the past, a significant portion of its facilities and employees are located in India where they are

exposed to such natural disasters.

Additionally, in the event of a drought, the state governments in which the Group’s facilities are located could

cut or limit the supply of water to the Group’s facilities, thus adversely affecting the Group’s production

capabilities by reducing the volume of products the Group can manufacture and consequently reducing its

revenues. In the event of any of the foregoing natural disasters, the ability of the Group to produce and

distribute steel may be adversely affected. There can be no assurance that such events will not occur again in

the future, or that its business, results of operations, financial condition and prospects will not be adversely

affected.

50. Health epidemics and natural calamities in Asia or elsewhere could adversely affect the Indian economy or

our business and the price of the ordinary shares.

The outbreak of corona virus across Asia and Europe in 2020, outbreaks of Severe Acute Respiratory

Syndrome in Asia in 2003, avian influenza, Ebola virus in western Africa, Zika virus in South America and

Influenza A (H1N1) across the world have adversely affected a number of countries and companies. Any

increase in the impact of corona virus or any future outbreak of infectious diseases or other serious public

health epidemics may have a negative impact on the economies, financial markets and level of business activity

in affected areas, which may adversely affect our business. India has also experienced natural calamities such

as earthquakes, floods, drought and a tsunami in the recent past. The length and severity of these natural

disasters determine the extent of their impact on the Indian economy. Prolonged spells of abnormal rainfall

and other natural calamities could have an adverse impact on the Indian economy. Any future outbreak of

infectious disease among humans and/or animals or any other serious public health concerns or the occurrence

of any natural calamities could materially and adversely affect our business, prospects, financial condition,

cash flows and results of operations, and the price of the ordinary shares.

51. Our business requires substantial capital, and any disruption in funding sources would materially and

adversely affect our liquidity, financial condition and cash flows.

Our continued business growth, liquidity and profitability are, in large part, dependent upon our timely access

to, and the costs associated with, raising capital. Our business depends, and will continue to depend on, our

ability to obtain adequate funding on acceptable terms from relatively stable, diversified and low-cost sources

of funds. Our ability to borrow funds and refinance existing debt may also be influenced by a variety of factors,

including the regulatory environment and policy initiatives in India, developments in the international markets

affecting the Indian economy, investors’ and/or lenders’ perceptions and our current and future financial

performance, credit ratings, financial condition and relationships with lenders. An event of default, a

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significant negative ratings action by a rating agency, an adverse action by a regulatory authority or a general

deterioration in prevailing economic conditions that constricts the availability of credit may make it difficult

for us to access cost effective financing and increase our cost of borrowings. For instance, on April 14, 2020,

S&P Global Ratings lowered its issuer credit rating on Tata Steel to 'B+' with a ‘Negative’ outlook from 'BB-

' with a ‘Stable’ outlook and on April 15, 2020, Moody's Investors Service has placed Tata Steel's corporate

family rating ‘Ba2’ under review for downgrade.

The global and Indian capital and lending markets are, by nature, highly volatile and access to liquidity can,

at times, be significantly reduced. Moreover, towards the end of 2018, defaults in debt repayments by a large

NBFC in India, Infrastructure Leasing & Financial Services Limited, which had a significant shareholding

from government owned institutions, led to heightened investor focus around the health of the broader NBFC

and banking sector as well as their sources of liquidity. This has led to some tightening in liquidity available

to certain NBFCs and has also recently resulted in concerns over the financial position and performance of

certain banks in India. On March 5, 2020, the RBI seized the board of Yes Bank Limited, and imposed

limitations on its operations and a temporary moratorium on withdrawals over Rs. 50,000 for a period of one

month. These events, and if any event of similar nature or magnitude affecting the market sentiment

surrounding the sector occurs again in the future, may result in increased borrowing costs and difficulties in

accessing cost-effective debt for us. If we are unable to obtain adequate funding from our sources of funds on

acceptable terms as and when we require or renew or replace existing financings as they expire, it could limit

our growth and profitability and materially and adversely affect our liquidity, financial condition and cash

flows.

52. The Group’s ability to raise foreign capital may be constrained by Indian law

As an Indian company, we are subject to exchange controls that regulate borrowing in foreign currencies. Such

regulatory restrictions limit our financing sources and hence could constrain our ability to obtain financing on

competitive terms and refinance existing indebtedness. In addition, there can be no assurance that the required

approvals will be granted to us without onerous conditions, it on favourable terms or at all. Limitations on

raising foreign debt may have an adverse effect on our business growth, financial condition and results of

operations.

53. The RBI’s Large Exposures Framework may restrict our ability to raise funds from banks.

The RBI, by way of its large exposure framework circular dated December 1, 2016, as amended, which is

effective from April 1, 2019 (the “Large Exposure Framework”), has capped the exposure limits for a bank

towards a group of connected counterparties. The RBI has directed that the sum of all the exposure values of

a bank to a group of connected counterparties must at all times not be higher than 25% of the bank’s available

eligible capital base. The Large Exposure Framework defines “connected counterparties” as a group of

counterparties with specific relationships or dependencies such that, were one of the counterparties to fail, all

of the counterparties would very likely fail. For the purpose of the Large Exposure Framework, such a group

of connected counterparties must be treated as a single counterparty. Accordingly, in such cases, the sum of

the bank’s exposures to all the individual entities included within a group of connected counterparties is subject

to the large exposure limit and to the other regulatory requirements set out in the Large Exposure Framework.

If banks adopt a strict interpretation of the Large Exposure Framework and calculate their exposure to all Tata

group entities for the purpose of the 25% exposure limits, our ability to raise funds from such banks might be

affected. If we are unable to raise funds from banks to meet our working capital and other requirements, we

may have to meet our funding requirements by issuing debt securities such as non-convertible debentures

and/or U.S.$ denominated bonds. This might result in increased interest expenses and financing costs, which

may materially and adversely affect our cash flow, business, financial condition and results of operations.

54. Any downgrade of India’s sovereign debt rating by an international rating agency could have a negative

impact on the Group’s results of operations and financial condition.

Recently International rating agency, Moody’s has lowered outlook on India to “Negative” from “Stable”. Any

downgrade by international rating agencies of the credit rating for Indian domestic and international debt may

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adversely impact the Group’s ability to raise additional financing and the interest rates and commercial terms

on which such additional financing is available. This could have an adverse effect on the Group’s ability to

obtain financing to fund its growth on favourable terms or at all and, as a result, could have a material adverse

effect on its business, results of operations, financial condition and prospects.

55. A third party could be prevented from acquiring control of us because of anti-takeover provisions under

Indian law.

There are provisions in Indian law that may delay, deter or prevent a future takeover or change in control of

our Company. Under the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 an acquirer

has been defined as any person who, directly or indirectly, acquires or agrees to acquire shares or voting rights

or control over a company, whether individually or acting in concert with others. Although these provisions

have been formulated to ensure that interests of investors/shareholders are protected, these provisions may also

discourage a third party from attempting to take control of our Company. Consequently, even if a potential

takeover of our Company would result in the purchase of the Ordinary Shares at a premium to their market

price or would otherwise be beneficial to our Shareholders, such a takeover may not be attempted or

consummated because of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011.

56. We may be required to change our statutory auditors, Price Waterhouse & Co Chartered Accountants LLP

pursuant to the order dated January 10, 2018 issued by SEBI.

Price Waterhouse and Co Chartered Accountants LLP (“Price Waterhouse & Co”) are the current Statutory

Auditors of our Company, appointed at the annual general meeting of our Company held on August 8, 2017,

for a period of five years from August 8, 2017 till the date of the annual general meeting of our Company to

be held in the year 2022. Our Statutory Auditors form part of the Price Waterhouse network of firms in India

(“PW Network”).

SEBI by its order dated January 10, 2018, in connection with the involvement of one of the other PW Network

firms as auditors in the audit of Satyam Computer Services Limited (“SEBI Order”), among other things, (i)

prohibited entities/firms practicing as chartered accountants in India under the brand and banner of Price

Waterhouse from directly or indirectly issuing any certificate of audit of listed companies, compliance of

obligations of listed companies and intermediaries registered with the SEBI under certain laws including the

SEBI Act and the Companies Act for two years; and (ii) prohibited listed companies and intermediaries

registered with SEBI from engaging any audit firm forming a part of the Price Waterhouse network (“PW

Network”) for issuing any certificate with respect to compliance of statutory obligations which the SEBI is

competent to administer and enforce for various laws for two years. The PW Network has filed an appeal

against the SEBI Order on January 17, 2018 before the Securities Appellate Tribunal. The Securities Appellate

Tribunal (“SAT”) granted partial relief to Price Waterhouse (PW), allowing it to audit existing clients till

March 31, 2019. Thereafter, the Supreme Court has provided an interim stay on the SAT order, particularly in

connection with the paragraph of the SAT order which stated that SEBI did not have the power to ban an

auditor. Accordingly, while the ban does not currently impact the ability of Price Waterhouse & Co to continue

as statutory auditors of our Company and our Group for Fiscal 2020, we cannot be certain that Price

Waterhouse & Co will be able to continue as our statutory auditors in the future.

If we change our statutory auditors, such change may require, among other things, the approval of the

shareholders through a special resolution. We cannot assure you that we will be able to change our Statutory

Auditors, if required to do so, in a timely manner and a sudden change in the Statutory Auditors may be

disruptive to our business and divert management attention.

57. Investors may have difficulty enforcing judgments against our Company and its Indian subsidiaries or their

respective management in the Indian courts.

We are a public limited company incorporated under the laws of India. Substantially all of our directors and

executive officers are residents of India and a substantial portion of our assets and such persons are located in

India. As a result, it may not be possible for investors to effect service of process upon us or such persons

outside of India, or to enforce judgments obtained against such parties outside of India.

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Recognition and enforcement of foreign judgments is provided for under Section 13 of Civil Procedure Code,

1908, (“CPC”) on a statutory basis. Section 13 of the CPC provides that foreign judgments shall be conclusive

regarding any matter directly adjudicated upon, except: (i) where the judgment has not been pronounced by a

court of competent jurisdiction; (ii) where the judgment has not been given on the merits of the case; (iii)

where it appears on the face of the proceedings that the judgment is founded on an incorrect view of

international law or a refusal to recognise the law of India in cases to which such law is applicable; (iv) where

the proceedings in which the judgment was obtained were opposed to natural justice; (v) where the judgment

has been obtained by fraud; and (vi) where the judgment sustains a claim founded on a breach of any law then

in force in India. Under the CPC, a court in India shall, upon the production of any document purporting to be

a certified copy of a foreign judgment, presume that the judgment was pronounced by a court of competent

jurisdiction, unless the contrary appears on record. Such presumption may be displaced by proving that the

court did not have jurisdiction.

India is not a party to any international treaty in relation to the recognition or enforcement of foreign

judgments. Section 44A of the CPC provides that where a foreign judgment has been rendered by a superior

court, within the meaning of that Section, in any country or territory outside of India which the Indian central

government has by notification declared to be in a reciprocating territory, it may be enforced in India by

proceedings in execution as if the judgment had been rendered by the relevant court in India. However, Section

44A of the CPC is applicable only to monetary decrees, which are dissimilar to amounts payable in respect of

taxes, other charges of a like nature, a fine or other penalties.

Generally, there are considerable delays in the disposal of suits by Indian courts. It is unlikely that a court in

India would award damages on the same basis as a foreign court would, if an action was brought in India.

Furthermore, it is unlikely that an Indian court would enforce a foreign judgment if that court were of the view

that the amount of damages awarded was excessive or inconsistent with public policy or Indian practice. It is

uncertain as to whether an Indian court would enforce foreign judgments that would contravene or violate

Indian law. However, a party seeking to enforce a foreign judgment in India is required to obtain approval

from the RBI under the Foreign Exchange Management Act, 1999, to execute such a judgment or to repatriate

any amount recovered.

58. A decline in India’s foreign exchange reserves may affect liquidity and interest rates in the Indian economy,

which could adversely affect our financial condition.

India’s foreign exchange reserves totaled approximately US$ 482 billion as of March 31, 2020. Declines in

foreign exchange reserves could adversely affect the valuation of the Rupee and could result in reduced

liquidity and higher interest rates that could adversely affect our future financial condition and the market price

of the Ordinary Shares.

Risks Related to the markets

59. A prolonged slowdown in economic growth in India or financial instability in other countries could cause

the Company’s business to suffer.

The growth rate of India’s GDP, which, according to the International Monetary Fund, was above 9.0% in the

year ended March 31, 2008, moderated to 8.6% in the year ended March 31, 2010 and was approximately

8.9%, 6.7%, 4.5%, 4.9%, 7.3%, 7.5%, 6.8%, 7.3% and around 5.6% in the years ended March 31, 2011, 2012,

2013, 2014, 2015, 2016, 2017, 2018 and 2019 respectively. Notwithstanding the RBI’s policy initiatives, the

course of market interest rates continues to be uncertain due to the high inflation, the increase in the fiscal

deficit and the Government borrowing program. Any increase in inflation in the future, because of increases

in prices of commodities such as crude oil or otherwise, may result in a tightening of monetary policy. The

uncertainty regarding liquidity and interest rates and any increase in interest rates or reduction in liquidity

could materially and adversely impact the Company’s business.

In addition, the Indian market and the Indian economy are influenced by economic and market conditions in

other countries, particularly those of emerging market countries in Asia. Investors’ reactions to developments

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in one country may have adverse effects on the economies of other countries, including the Indian economy.

A loss of investor confidence in the financial systems of other emerging markets may cause increased volatility

in the Indian financial markets and, indirectly, in the Indian economy in general. Any worldwide financial

instability could influence the Indian economy and could have a material adverse effect on the Company’s

business, financial condition and results of operations.

60. Volatility in India’s financial markets could materially and adversely affect the Company’s financial

condition.

Stock exchanges have, in the past, experienced substantial fluctuations in the prices of listed securities. The

Indian economy and financial markets are significantly influenced by worldwide economic, financial and

market conditions. As the Company has significant operations in India and accesses the Indian markets for

debt financing, this uncertainty and volatility in the Indian financial markets could have a material and adverse

effect on the Company’s financial condition.

61. Political changes in India could delay and/or affect the further liberalisation of the Indian economy and

materially and adversely affect economic conditions in India generally and the Company's business in

particular.

The Company's business could be significantly influenced by economic policies adopted by the Government

of India. Since 1991, successive governments have pursued policies of economic liberalisation and financial

sector reforms. The Government of India has at various times announced its general intention to continue

India's current economic and financial liberalisation and deregulation policies. However, protests against such

policies, which have occurred in the past could slow the pace of liberalisation and deregulation. The rate of

economic liberalisation could change, and specific laws and policies affecting foreign investment, currency

exchange rates and other matters affecting investment in India could change as well. While the Company

expects the government to continue the liberalisation of India's economic and financial sectors and

deregulation policies, there can be no assurance that such policies will be continued.

62. Changes in the policies of, or changes in, the Indian Government, could adversely affect economic

conditions in India, and thereby adversely impact the Company’s results of operations and financial

condition.

India remains the Company’s largest market, representing 56% and 48% of the Company’s net sales in the

year ended March 31, 2019 and March 31, 2018 In addition, a major portion of the Company’s facilities are

located in India. Consequently, the Company may be affected by changes to Central Government policies,

changes in the Central Government itself, or any other political instability in India. For example, the imposition

of foreign exchange controls, rising interest rates, increases in taxation or the creation of new regulations could

have a detrimental effect on the Indian economy generally and the Company in particular.

The Central Government has sought to implement a number of economic reforms in recent years and has also

the economic liberalization policies pursued by previous Central Governments. However, the roles of the

Central Government and the state governments in the Indian economy as producers, consumers and regulators

have remained significant. Any significant change in such liberalization and deregulation policies could

adversely affect business and economic conditions in India generally which may have an adverse effect on the

Company’s results of operations and financial condition.

Since our business is subject to a significant number of tax regimes and changes in legislation governing the

rules implementing them or the regulator enforcing them in any one of those jurisdictions could negatively

and adversely affect our results of operations.

The revenues recorded and income earned is taxed on differing bases, including net income actually earned,

net income deemed earned and revenue-based tax withholding. The final determination of the tax liabilities

involves the interpretation of local tax laws as well as the significant use of estimates and assumptions

regarding the scope of future operations and results achieved and the timing and nature of income earned and

expenditures incurred. Changes in the operating environment, including changes in tax laws, could impact the

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determination of the tax liabilities of our Company for any year.

63. Compliance with new or changing corporate governance and public disclosure requirements adds

uncertainty to the Company's compliance policies and increases compliance costs

The Company is subject to a complex and changing regime of laws, rules, regulations and standards relating

to accounting, corporate governance and public disclosure, applicable SEBI regulations, stock market listing

regulations, new or changed laws, rules, regulations and standards may lack specificity and are subject to

varying interpretations. Their application in practice may evolve over time as new guidance is provided by

regulatory and governing bodies. The Company's management and other personnel may be required to devote

a substantial amount of time to such compliance initiatives. This could result in continuing uncertainty

regarding compliance matters and higher costs of compliance as a result of ongoing revisions to such

governance standards. The Company is committed to maintaining high standards of corporate governance and

public disclosure. However, efforts to comply with evolving laws, rules, regulations and standards in this

regard have resulted in. and are likely to continue to result in increased general and administrative expenses

and a diversion of management resources and time.

A majority of the provisions and rules under the Companies Act, 2013 have been notified and have come into

effect from the date of their respective notification, resulting in the corresponding provisions of the Companies

Act, 1956 ceasing to have effect. The Companies Act, 2013 has brought into effect significant changes to the

Indian company law framework, such as in the provisions related to issue of capital (including provisions in

relation to issue of securities on a private placement basis), disclosures in offering documents, corporate

governance norms, accounting policies, internal financial control, and audit matters and related party

transactions. The Company is also required to spend, in each financial year, at least 2.0% of its average net

profits during the three immediately preceding financial years towards corporate social responsibility

activities. Further, the Companies Act, 2013 imposes greater monetary and other liabilities on the Company,

its directors and Key Managerial personnel (“KMP”) for any non-compliance of its terms. To ensure

compliance with the requirements of the Companies Act, 2013, the Company may need to allocate additional

resources, which may increase the Company’s regulatory compliance costs and divert management attention.

The Company may face challenges in interpreting and complying with such provisions due to limited

jurisprudence on them. In the event the Company's interpretation of the Companies Act, 2013 differs from, or

contradicts with, any judicial pronouncements or clarifications issued by the Government in the future, the

Company may face regulatory actions or be required to undertake remedial steps. Additionally some of the

provisions of the Companies Act, 2013 overlap with other existing laws and regulations (such as corporate

governance norms and insider trading regulations issued by SEBI). The Securities and Exchange Board of

India(Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”)

applicable to all Indian companies with listed securities or desirous of listing its securities, on an Indian stock

exchanges, effective December 1, 2015. Pursuant to the Listing Regulations, the Company is required to,

among other things, ensure that there is at least one woman director on the Company Board of Directors at all

times, establish a vigilance mechanism for directors and employees and reconstitute certain committees in

accordance with the revised guidelines. The Company may face difficulties in complying with any such

overlapping requirements. Further, any such increase in the Company’s compliance requirements or

compliance costs may have an adverse effect on our business and results of operations.

64. The Company may be materially and adversely affected by RBI policies and actions.

Recently RBI announced series of interest rate cuts including emergency rate cut of 75bps as a part of stimulus

measures announced in the wake of COVID-19 .These RBI actions may have impacted the price of the

Company's securities. The Company can make no assurances about future market reactions to RBI

announcements and their impact on the price of its securities. Furthermore, the Company's business could be

significantly impacted should the RBI make major alterations to monetary or financial policy. Certain changes,

such as the raising of interest rates, could negatively affect the Company's finance cost and in turn operations,

any of which could have a material adverse effect on the Company's financial condition..

65. Taxation

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Potential purchasers and sellers of the Debentures should be aware that they may be required to pay stamp

duties or other documentary charges/taxes in accordance with the laws and practices of India. Payment and/

or delivery of any amount due in respect of the Debentures will be conditional upon the payment of all

applicable taxes, duties and/or expenses.

Potential Investors, who are in any doubt as to their tax position should consult their own independent tax

advisers. In addition, potential Investors should be aware that tax regulations and their application by the

relevant taxation authorities change from time to time. Accordingly, it is not possible to predict the precise tax

treatment which will apply at any given time.

66. The Debentures may be illiquid

It is not possible to predict if and to what extent a secondary market may develop in the Debentures or at what

price the Debentures will trade in the secondary market or whether such market will be liquid or illiquid. If so

specified in this Information Memorandum, application has been made to list or quote or admit to trading the

Debentures on the stock exchange or quotation system(s) specified. If the Debentures are so listed or quoted

or admitted to trading, no assurance is given that any such listing or quotation or admission to trading will lead

to greater liquidity than if they were not so listed or quoted or admitted to trading. The listing of the Debentures

is subject to receipt of the final listing and trading approval from the Stock Exchange.

The Issuer may, but is not obliged to, at any time purchase the Debentures at any price in the open market or

by tender or private agreement. Any Debentures so purchased may be resold or surrendered for cancellation.

The more limited the secondary market is, the more difficult it may be for holders of the Debentures to realize

value for the Debentures prior to redemption of the Debentures.

67. Downgrade in credit rating

The Debentures are rated as “Ind AA” by India Ratings and Research Private Limited (India Ratings) and

“CARE AA” by Credit Analysis & Research Limited (CARE Ratings) for the issuance of an aggregate amount

of Rs. 1,000 crores. The Issuer cannot guarantee that these rating will not be downgraded. Such a downgrade

in any of the credit ratings may lower the value of the Debentures.

68. Future legal and regulatory obstructions

Future government policies and changes in laws and regulations in India and comments, statements or policy

changes by any regulator, including but not limited to SEBI or RBI, may adversely affect the Debentures. The

timing and content of any new law or regulation is not within the Issuer’s control and such new law, regulation,

comment, statement or policy change could have an adverse effect on market for and the price of the

Debentures.

Further, the RBI or other regulatory authorities may require clarifications on this Information Memorandum,

which may cause a delay in the issuance of Debentures or may result in the Debentures being materially

affected or even rejected.

69. Early Termination for Extraordinary Reasons, Illegality and Force Majeure

If the Issuer determines that, for reasons beyond its control, the performance of its obligations under the

Debentures has become illegal or impractical in whole or in part for any reason, the Issuer may, at its discretion

and without obligation, redeem the Debentures prior to maturity.

70. The Company is exposed to operational risks, including risks in connection with the Company's use of

information technology.

Operational risk is the risk of loss resulting from inadequate or failed internal systems and processes, from

either internal or external events. Such risks could stem from inadequacy or failures of controls within internal

procedures, violations of internal policies by employees, disruptions or malfunctioning of information

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technology systems such as computer networks and telecommunication systems, other mechanical or

equipment failures, human error, natural disasters or malicious acts by third parties. Any unauthorised access

to or misuse of data on the Company's information technology systems, human errors or technological or

process failures of any kind could severely disrupt the Company's operations, including its manufacturing,

design and engineering processes, and could have a material adverse effect on the Company financial condition

and results of operations.

71. The Company may be materially and adversely affected by the divulgence of confidential information.

Although the Company has implemented policies and procedures to protect confidential information such as

key contractual provisions, future projects, and customer records, such information may be divulged including

as a result of hacking or other threats from cyberspace. If this occurs, the Company could be subject to claims

by affected parties, negative publicity and loss of proprietary information, all of which could have an adverse

and material impact on the Company's business, financial conditions, results of operations and cash flows.

72. Any failures or weaknesses in the Company's internal controls could materially and adversely affect the

Company financial condition and results of operation.

Although the Company continually review and evaluate its internal control systems to allow management to

report on the sufficiency of the Company's internal controls, the Company cannot assure that it will not

discover additional weaknesses in the Company internal controls over financial reporting. Any such additional

weaknesses or failure to adequately remediate any existing weakness could materially and adversely affect the

Company's financial condition or results of operations and the Company's ability to accurately report its

financial condition and results of operations in a timely and reliable manner.

73. The Company may be materially and adversely impacted by political instability, wars, terrorism,

multinational conflicts, natural disasters, epidemics and labour strikes.

The Company's products are used in India and also exported to a number of geographical markets.

Consequently, the Company's operations in these foreign markets may be subject to political instability, wars,

terrorism, regional or multinational conflicts, natural disasters, fuel shortages, epidemics and labour strikes. In

addition, conducting business in India and internationally, especially in emerging markets, exposes the

Company to additional risks, including adverse changes in economic and government policies, unpredictable

shifts in regulation, inconsistent application of existing laws, rules and regulations, unclear regulatory and

taxation systems and divergent commercial and employment practices and procedures. Any significant or

prolonged disruption or delay in the Company's operations related to these risks could material and adversely

affect its business, financial condition and results of operations.

74. India’s obligations under the World Trade Organization Agreement could materially affect the Company's

business

India's obligations under its World Trade Organization agreement could reduce the present level of tariffs on

imports of steel and related products. Reductions of import tariffs could result in increased competition which,

in turn, could materially and adversely affect the Company's business, financial condition and results of

Operations.

75. The Company's business could be negatively affected by the actions of activist shareholders.

Certain of the Company's shareholders may, from time to time, advance shareholder proposals or otherwise

attempt to effect changes or acquire control over the Company's business. Campaigns by shareholders to erred

changes at publicly listed companies are sometimes led by investors seeking to increase short-term shareholder

value by advocating corporate actions such as financial restructuring, increased borrowing, special dividends,

stock repurchases or even sales of assets or the entire company, or by voting against proposals put forward by

the Board of Directors and management of the company. If faced with actions by activist shareholders, the

Company may not be able to respond effectively to such actions, which could be disruptive to the Company's

business.

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76. Debentures may not be a suitable investment for all investors.

Each prospective investor in the Debentures must determine the suitability of that investment in light of its

own circumstances. In particular, each potential investor should:

• have sufficient knowledge and experience to make a meaningful evaluation of the relevant Debentures,

the merits and risks of investing in the relevant Debentures and the information contained or incorporated

by reference in this Information Memorandum or any applicable supplement;

• have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its particular

financial situation, an investment in the relevant Debentures and the impact such investment will have on

its overall investment portfolio;

• have sufficient financial resources and liquidity to bear all of the risks of an investment in the relevant

Debentures, including where principal or interest is payable in one or more currencies, or where the

currency for principal or interest payments is different from the potential investor’s currency;

• understand thoroughly the terms of the relevant Debentures and be familiar with the behavior of any

relevant indices and financial markets; and

• be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for economic,

interest rate and other factors that may affect its investment and its ability to bear the applicable risks.

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REGULATORY DISCLOSURES

1) ISSUER INFORMATION

(a) About the Issuer

Name Tata Steel Limited

CIN L27100MH1907PLC000260

Registered office Bombay House, 24 Homi Mody Street, Fort, Mumbai 400001, India

Corporate Office Bombay House, 24 Homi Mody Street, Fort, Mumbai 400001, India

Company Secretary and

Compliance Officer

Mr. Parvatheesam K

Company Secretary & Chief Legal Officer (Corporate & Compliance)

Tata Steel Limited

Bombay House, 24, Homi Mody Street

Fort, Mumbai 400 001

Tel : (91 22) 66658282

Fax: (91 22) 66657724

E-mail: [email protected]

Chief Financial Officer

Mr. Koushik Chatterjee

Executive Director & Chief Financial Officer

Tata Steel Limited

Bombay House, 24, Homi Mody Street

Fort, Mumbai 400 001

Debenture Trustee

IDBI Trusteeship Services Limited

Asian Building, Ground Floor,

17, R. Kamani Marg,

Ballard Estate, Mumbai - 400 001

Tel No.: +91 22 4080 7000

Fax No.: + 91 22 6631 1776

Email: [email protected]

Contact Person: Mr. Jimit Poojari

Registrars and Transfer

Agents

TSR Darashaw Consultants Private Limited (formerly known as TSR

Darashaw Limited)

6-10, Haji Moosa Patrawala Industrial Estate

20, Dr. E. Moses Road, Mahalaxmi

Mumbai 400 011, India

Tel No.: +91 22 6656 8484

Fax No.: + 91 22 6656 8494

Email: [email protected]

Contact Person: Ms.Vidya Brahme, Chief Manager

Credit Rating Agency/ies

for the Debentures

India Ratings and Research Private Limited (India Ratings)

Credit Analysis & Research Limited (CARE Ratings)

Auditors of the Issuer

Price Waterhouse & Co.

Chartered Accountants LLP

56 & 57, Block DN, Ground Floor, A Wing, Sector V, Salt Lake, Kolkata

700091,

West Bengal

Tel No.: +91 22 6669 1500

Fax No.: + 91 22 6654 7804

Arranger to the Issue SBI Capital Markets Limited

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(b) Brief summary of Business/Activities of the Issuer and its line of Business

i. Overview

Tata Steel Group is one of the world’s largest steel companies with a steel production capacity of

approximately ~33 MTPA. It is one of the world's most geographically-diversified steel producers,

with operations and commercial presence across the world. The group (excluding SEA operations)

recorded a consolidated turnover of US $22.67 billion in the financial year ending March 31, 2019.

As of March 31, 2019, our Group had more than 65,000 employees.

Our Company was established as India’s first integrated steel company in 1907 by Jamsetji N. Tata

and is one of the flagship companies of the Tata Group. Our Group has a presence across the entire

value chain of steel manufacturing, including producing and distributing finished products as well as

mining and processing iron ore and coal for our steel production. Our Group’s operations are primarily

focused in India, Europe and South East Asia. For Fiscal 2019, India and Europe represented

approximately 56% and 41%, respectively, of the revenue of our Group.

The steel production capacity of our Group has increased from approximately 5.0 MTPA in Fiscal

2006 to approximately 33 MTPA in Fiscal 2019. As of March 31, 2019, the steel production capacity

of our Group in India is located in Jamshedpur and Kalinganagar, where our Group has two facilities

with a total steel production capacity of 13 MTPA and a variety of finishing plants. The operations of

our Group in India also include captive iron ore and coal mines. Our Group has significant operations

in the United Kingdom and the Netherlands, where our Group has a total steel production capacity of

approximately 12.4 MTPA. The remaining steel production capacity of our Group is located in South

East Asia.

In Fiscal 2019, our Group recorded sales in India of 12.69 MT, recording a growth of 4.4% over Fiscal

2018. The increase was largely due to the ramping up of operations at the Kalinganagar plant in

Odisha, which is now operating at full capacity.

Our Group offers a broad range of steel products including a portfolio of high value-added downstream

products such as hot rolled, cold rolled and coated steel, sections, plates, rebars, wire rods, tubes, rails

and wires. Our Group is also a large producer of ferro-chrome in India.

The main markets for our products are India and Europe, which together accounted for more than 95%

of our total volumes in Fiscal year 2019, respectively, and the remaining from sales primarily taking

place in other markets in Asia. Our customers are primarily in the construction, infrastructure,

automotive, consumer goods, material handling, aerospace and general engineering industries.

For Fiscals 2019 and 2018, our Group recorded revenue of Rs. 1,57,669 crores and Rs. 1,24,110 crores,

respectively. For the same period, our Group recorded a PAT of Rs. 9,098 crores and profit of Rs.

17,763 crores, respectively. We had total assets of Rs. 2,33,582 crore as of March 31, 2019 and Rs.

2,09,758 crore as of 31 March 2018, our total saleable steel production was 26.80 MT for Fiscals

2019 and 22.92 MT for fiscal 2018.

Facilities

TSL have significant operations in Jamshedpur, where we operate a 10 MTPA steel production plant

and a variety of finishing plants. We added a new 3 MTPA facility in Kalinganagar and increased the

crude steel production capacity in India to 13 MTPA. Our steel production facilities primarily

comprise coke ovens, sinter and pellet plants, furnaces, converters, casters, rolling facilities and

downstream facilities and also include support facilities such as captive power plants, power stations,

boiler houses, repair and maintenance workshops, research, development and testing laboratories and

harbours.

Pursuant to the Insolvency and Bankruptcy Code, 2016 (‘IBC’), the Company had acquired 72.65%

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equity stake in Bhushan Steel Limited [renamed Tata Steel BSL Limited (‘TSBSL’)] through its

wholly-owned subsidiary company, Bamnipal Steel Limited, for an aggregate amount of Rs. 158.89

crores. The acquisition was completed in May 2018 at the total consideration of Rs. 35,200 crores. Tata Steel through its subsidiary Tata Sponge Limited (Erstwhile Tata Steel Sponge Iron Limited

TSIL) has taken over Usha Martin – Steel Business unit on April 9, 2019, which is an Integrated Steel

Plant to manufacture alloyed speciality steel in long products segments like Wire Rods and Bars.

TSL conducts European operations with a steel production capacity of 12.4 MTPA through wholly

owned subsidiary TSE and operations in India are primarily conducted directly by our Company. The

remaining steel production capacity of 2.2 MTPA is located in South East Asia, with finishing capacity

spread across South East Asia.

During Fiscal year 2018, the Company announced the expansion of Kalinganagar Plant capacity by 5

MTPA. Tata Steel Kalinganagar Phase II expansion project is underway. The 2.2 mn tons cold rolling

mill complex and pellet plant has been prioritized to improve product mix and reduce cost.

A brief history of the Issuer

The Company was originally incorporated as ‘The Tata Iron and Steel Company Limited’ on August

26, 1907 as a public limited company, under the provisions of the Indian Companies Act, 1882. The

Company was established by Jamsetji N. Tata, the founder of the Tata Group and today is one of the

flagship companies of the Tata Group. Pursuant to a resolution of the Board of Directors dated May

19, 2005 and of the shareholders of the Company dated July 27, 2005, the name of the Company was

changed to ‘Tata Steel Limited’ with effect from August 12, 2005. The registered office of Tata Steel

is situated at Bombay House, 24 Homi Mody Street, Fort, Mumbai 400 001, Maharashtra, India.

The Company manufactures a diversified portfolio of steel products, with a product range that includes

flat products and long products, as well as some non-steel products such as ferro alloys and minerals,

tubes and bearings. The Company, through its Indian operations, is one of the leading manufacturers

of ferro chrome and steel wires in India and a leading producer of chrome ore internationally. The

Company’s main markets include the Indian construction, automotive and general engineering

industries.

The Company’s main facilities have been historically concentrated around the Indian city of

Jamshedpur (Jharkhand) and Kalinganagar (Odisha), where the Company operates at 13.0 mtpa (crude

steel) capacity including a variety of finishing plants. The Company’s bearing division is located at

Kharagpur (West Bengal), ferro manganese plant at Joda (Orissa), charge chrome plant at Bamnipal

(Orissa), cold rolling complex at Tarapur (Maharashtra) and wire division at Tarapur (Maharashtra)

and Indore (Madhya Pradesh). The Company also has iron ore and coal mines, collieries and quarries

are in the States of Jharkhand and Orissa.

In February 2005, the Company acquired the steel-related businesses of NatSteel Asia, with facilities

located in Singapore, China, Malaysia, Vietnam, the Philippines, Thailand and Australia. In March

2006 the Company also acquired a 25.0% interest in Millennium Steel, the largest steel producer in

Thailand, and in April 2006 a further 42.1% interest, for a total interest of 67.1% in Millenium Steel,

(now known as Tata Steel (Thailand) Public Company Limited). On April 2, 2007 the Company

acquired Corus Group Limited, with key production facilities located in the United Kingdom and the

Netherlands. The acquisition was implemented by Tata Steel UK Holdings Limited which is a wholly

owned subsidiary of Tata Steel Europe Limited, formerly known as Tulip UK Holdings (No. 1)

Limited. In April 2009, Hoogly Metcoke & Power Company Limited, which was earlier a subsidiary

of the Company was merged with the Company. Further in April 2011, Centennial Steel Company

Limited and in April 2014, Kalimati Investment Company Limited also got amalgamated with the

Company.

In May 2018, the Company had acquired Bhushan Steel Limited through its wholly-owned subsidiary

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company, Bamnipal Steel Limited which is having a capacity of 5.6 MTPA through the IBC

proceedings.

In April 2019, Tata Steel through its subsidiary Tata Steel Long products Limited acquired Usha

Martin – Steel Business unit, which is an Integrated Steel Plant to manufacture alloyed specialty steel

in long products segments like Wire Rods and Bars. Post-acquisition of business, Tata Steel Long

products completed a rights issue in which the Company subscribed to 2,58,43,967 Rights Equity

Shares of at an issue price of Rs. 500 per equity share aggregating to Rs. 1,292.20 crores.

The equity shares of the Company were first listed on the Bombay Stock Exchange (BSE) in 1937 as

per records available with the Company and previously were also listed with the Native Share and

Stock Brokers’ Association Limited (the predecessor of the BSE). The Company’s equity shares were

listed on the National Stock Exchange of India Limited (NSE) on November 18, 1998. The Global

Depository Receipts issued by the Company are listed on the Luxembourg Stock Exchange and the

London Stock Exchange.

Recent Developments

Sukinda Chromite Mine

Ferro Alloys and Minerals Division (FAMD) has been pioneering Chrome business in India with the

starting of Sukinda Chromite Mine in 1950. FAMD has set up an integrated value chain commencing

with mining, beneficiation, production and sales of Chrome ore and Ferrochrome (FeCr) alloys. With

the amendment in MMDR Act in January 2015, the leases which were granted before the MMDR

(Amendment) Act, 2015 and has already completed 50 years lease period, will expire by March 31,

2030 for leases meant for captive purpose and leases which are meant for non-captive purpose were

to expire by March 31, 2020. Sukinda Chromite Mine (SCM) lease held by Tata Steel falls in the

category of non-captive lease and hence was to expire on March 31, 2020. On January 22, 2020

Government of Odisha had notified the Sukinda Chromite block (currently held by Tata Steel) for

commercial mining purpose. A subsidiary of our Company participated in the auctions for Chromite

and Iron Ore mines announced by Government of Odisha and retained the mining rights for another

50 years.

Novel Coronavirus (COVID-19) and Steps Taken by the Group

Our first and foremost priority is the health and safety of our employees and the communities in which

we operate. In line with the increased action taken by national governments to contain the spread of

COVID-19, the Group will be reducing operations at some sites. We have already stepped up measures

to reduce risk to our employees across all our sites as well as the communities around. Strict travel

restrictions have been implemented and majority of our employees have been asked to work-from-

home. We aim to run our operations safely and efficiently so that we can continue to service our

customers, to the extent possible. We also remain focused on conserving cash and ensuring we have

adequate liquidity. We are implementing additional measures to increase hygiene standards at all

locations and enforce strict social distancing norms for employees and other stakeholders who have to

attend to essential activity at workplace.

These are unprecedented times and circumstances are evolving very rapidly. We are monitoring the

developments, and working closely with our customers and suppliers and various Government

agencies to mitigate the impact of COVID-19 on our business as far as possible. We are ready to

review our business decisions based on the developments as they take place. An update on our key

operations across geographies is set out below.

India:

The Government of India has announced a nationwide lockdown effective March 25, 2020 to combat

the spread of the COVID-19 virus among communities and have issued guidance for work-from-home,

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social distancing norms to be followed and hygiene at home and at workplace. The Government of

India and respective State Governments have also issued notifications and clarified that industries and

services such as mines, steel, coal, power and fertilizers are essential services and process industries

where the continuous operations of the plant facilities are important, and are exempt from the

lockdown measures and can continue to operate subject to the hygiene standards and social distancing

norms being followed. Based on the specific guidance and approvals received from the relevant district

administration, our mining operations have been operating normally but the integrated steel facilities

in Jamshedpur, Kalinganagar Angul (“Tata Steel BSL”) and Gamahria (“Tata Steel Long Products”)

have started reducing production levels and operations in the downstream facilities have been

suspended and put on care and maintenance mode. As of the date of this Information Memorandum,

we did not know when the relevant government authorities will relax the measures take to contain the

spread of COVID-19.

In view of the restrictions in the despatch of finished goods and poor market conditions due to

the shutdown of customer operations in automotive, construction and other segments, our shipments

to customers have been curtailed. We are focused on conserving cash and liquidity and are reducing

our cost base to align ourselves with the operating and market situation with a strong focus on working

capital management. All payments to MSME vendors and contract workers are being made on due

dates. We are continuously monitoring circumstances and have taken several initiatives to ensure that

our operations are in a state of readiness to resume operations and serve our customers as

circumstances revert to normalcy.

We have implemented appropriate protocols to minimise the presence of employees at workplace,

including at our steel making hubs and mining operations. In Jamshedpur, we are working to ensure

that there is no interruption in basic civic amenities for the citizens of the city and all emergency

services including Tata Main Hospital continue to operate. Tata Steel has also been working closely

with the Government of Jharkhand and the Government of Odisha to create modern and well-equipped

isolation centres.

Europe:

Tata Steel Europe is cooperating with national guidelines of the relevant countries and has

updated measures to reduce risk to employees across all sites. We are committed to continue to supply

steel products vital for society, including for food packaging, where demand has increased for canned

food. However, overall European steel demand has sharply reduced compared to the normal conditions

and many of our customers have paused production, including European car manufacturers. Tata

Steel Europe has therefore reduced production at some of the European plants to match this lower

demand. The business is focused on preserving cash and liquidity to tide over the challenging

period. Tata Steel Europe is currently operating all four blast furnaces at a reduced level across the

two steelmaking hubs – in Ijmuiden in the Netherlands, and Port Talbot, Wales and despatches to

customers are currently continuing at the revised levels. The situation is under continuous review and

the management is prepared to take swift action based on the trading conditions.

Credit Ratings

On April 14, 2020, S&P Global Ratings lowered its issuer credit rating on Tata Steel to 'B+' with a

‘Negative’ outlook from 'BB-' with a ‘Stable’ outlook and on April 15, 2020, Moody's Investors

Service has placed Tata Steel's corporate family rating ‘Ba2’ under review for downgrade.

Dividend History of the Company

The Company has been a dividend paying company and has paid dividends on its ordinary shares.

Ordinary Shares

The following are the dividend pay outs in relation to the Ordinary Shares in the last five fiscal years

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by the Company:

Fiscal

Dividend per Equity

Share of Rs.10 each

(Amount in Rs.)

Amount

(In Rs. million)

2015 8 9,263

2016 8 9,247

2017 10 11,689

2018 10 13,815

2019 13 17,959

Milestones achieved by the Issuer since incorporation are mentioned below:

Year Event

1910 Tata Steel Limited obtains its first colliery.

1912

a) First ingot rolls out on February 16

b) Bar mills commence operations

c) Introduction of eight hour working day

1915 Introduction of free medical aid

1920

a) Introduction of joint consultation with respect to various aspects of

employee—management relationship.

b) Introduction of various initiatives before the same were promulgated as law:

including leave with pay, workers’ provident fund schemes, and workmen’s’

accident compensation scheme.

1921 Inauguration of the Jamshedpur Technical Institute.

1928 Introduction of maternity benefits before the same was promulgated as law.

1934 Introduction of profit sharing bonus before the same was promulgated as law.

1937 Introduction retiring gratuity schemes before the same was promulgated as law.

1938 Introduction of electric process for making steel which was employed for

production of high grade iron and steel casting.

1955-1958 Two million tonne expansion programme carried out under contract with Kaiser

Engineers USA.

1972-1973 Coal fine washeries were set up for the first time in Jamadoba and West Bokaro

1980-1996 Modernization program of the Jamshedpur steel works was initiated in four

phases during this period.

2000

a) Cold rolling mill set up at Jamshedpur. The mill was completed in a record

time of 26 months.

b) Creation of B2B portal called metaljunction.com in collaboration with SAIL

and Kalyani Steel.

2001 World Steel Dynamics ranks Tata Steel as ‘India’s only World-class steel

maker’

2003

a) The Company launches its first branded cold rolled steel product called ‘Tata

Steelium’

b) Gomardih dolomite quarry of the Company’s Mines Division achieves a

record of being an accident free mine for the longest duration. The mine

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Year Event

recorded a period of 7.20 million accident free man hours from August 9,

1992 to August 9, 2003.

c) The Company launches a programme called ‘Aspire’ which seeks to

incorporate the best practices of various improvement initiatives.

d) The Company celebrates 75 years of industrial harmony.

2004

a) The Company’s biggest blast furnace completes production of 14 million tons

of hot metal which is the highest production achieved by a blast furnace in

India in its first campaign.

b) The Company files a corporate sustainability report where the Company was

rated as India’s ‘Top Reporter’ by United Nations Environment Program and

Standard and Poor’s.

2005

a) The Company acquires NatSteel Asia in Singapore.

b) The Company launches ‘Steel Junction’ which is India’s first organized retail

store for steel products.

c) The company is ranked as the ‘World’s Best Steel Maker’ by World Steel

Dynamics

2006-2007

a) The Company’s steel works at Jamshedpur crosses five million tonne mark

in crude steel production.

b) The Company is ranked again as the ‘World’s Best Steel Maker’ by World

Steel Dynamics

c) The Company acquires Corus, which makes the Company the sixth largest

steel maker in terms of actual crude steel production.

d) The Company was conferred the Prime Minister of India’s Trophy for the

‘Best Integrated Steel Plant’

2007-2008

2008-2009

a) The Company acquires Corus Group Plcon April 2, 2007

b) India’s largest Blast Furnace, the H Blast Furnace at Tata Steel, blown in on

May 31, 2008.

c) 1.8 MTPA capacity expansion comes on-stream in May 2008

2009-2010

a) Issued GDRs worth US$ 500 Mn at US$ 7.644/share in July 2009

b) The Company was awarded the CSR Excellence award 2010 by the

Associated Chambers of commerce and Industry

c) The Company was awarded FE-EVI Green Business Leadership Award in the

iron and steel category

d) The Company was awarded ‘Asia’s Best Employer Brand Awards, 2010’ for

talent management, best human resource strategy in line with business,

excellence in training, CEO with human resource orientation and human

resource leadership.

e) The Company was awarded the Rashtriya Khel Protsahan Puruskar award for

outstanding contribution in the field of sports in the category of ‘Financial

Support for sports Excellence’.

2010-2011 Issued 57 million Equity shares of face value Rs.10 each at a premium of Rs.600

each through Follow-on Public Offer.

2011-2012

a) Work in progression for six MTPA greenfield capacity expansion at

Kalinganagar, Odisha

b) Conducts Ground Breaking ceremony for the CAPL Project

c) Hundred years of iron making and steel making at Tata Steel

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Year Event

d) Tata soars into the top most Valuable Global Brands.

2012-2013 a) Bags Prime Minister’s Trophy for the seventh time

b) The Deming Grand Prize

2013-2014

a) 2014- Coke Oven Battery#11 commissioned

b) Inauguration of JCAPCPL, India's first Continuous Annealing & Processing

Line

2014-2015

a) Golden Peacock National Training Award 2014

b) BML Munjal Award 2014 for Business Excellence through Learning and

Development

c) Best Establishment Award 2014 during the 26th CII National Work-skill

Competition

d) Best ever performance by winning 41 prizes, out of a total of 58, in 27th CII

Eastern Region Work-skills Competition 2015

e) Assocham Skilling India Award under ‘Best Private Organisation-Training

Programme’

f) First prize in the AIMA’s National HR Summit-2014 for the case study on

Enterprise Capability Building System (ECBS)

2015-2016

a) ‘IspatSurakshaPuraskar’ 2015 under No Fatal Accident Category, received

by the Jamshedpur Works - Coal, Coke & Chemical, Bl. Furnaces, &

Agglomerate, Rolling Mills; ‘IspatSurakshaPusaskar’ 2015 for No Fatal

Accident category in contract labour received by the Mines & Collieries

Division and National Safety Council Safety Award received by the Wire

division.

b) Golden Peacock Innovative Product/Service Award, 2015

c) Golden Peacock Award for Risk Management’ for the year 2015.

d) ‘Best Companies to Work for’ 2016 award in the core sector by Business

Today

e) Global Industry Leader Award in the Dow Jones Sustainability Index 2016

f) Sustainable Manufacturing Award at Make in India Awards 2016

2016-2017

a) Entered into definitive agreements to acquire: Majority stake in the port

company for the proposed development of ‘Subarnarekha Port’ in Odisha.

b) Kalinganagar Steel Plant- Start of commercial production in May 2016 and

achieved one of the fastest ramp-up in a Greenfield project in India. Crude

steel production.

c) in Financial Year 2016-2017 was 1.68 MTPA.

d) ‘World’s Most Ethical Company Award’ 2017 – Recognised for the fifth time

by Ethisphere.

e) ‘Best Risk Management Practice’ Award in the category of Metals & Mining

at the third India Risk Management Awards 2017.

f) Winner in the ‘Iron & Steel’ sector for the Dun & Bradstreet Corporate

Awards 2016.

g) Tata Tiscon & Tata Shaktee have been selected as ‘Consumer Superbrand’

for 2016-2017 by Superbrands India Private Limited For the third consecutive

edition.

h) Sixth EPC awards in the 'Outstanding Company in Steel' category for

exceptional contribution towards infrastructure and construction sector.

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Year Event

2017-2018

a) Winner of the MINT Corporate Strategy Awards in the ‘Renewals’ category.

b) The OMQ (Ore, Mines and Quarries) Division conferred the ‘Energy and

Environment Foundation Global Water Conservation Award 2018’ in

Platinum Category at the World Water Summit 2018.

c) The Noamundi Iron Mine (NIM) of Tata Steel has been accorded the ‘Five

Star rating’ for sustainable development in FY 2017 in for the second

consecutive year.

d) ‘Asia’s Best Treasury Team’ award by the Hong Kong based Corporate

Treasurer, an independent print publication in Asia dedicated to serving

treasury teams and chief financial officers.

2018-2019

a) World Economic Forum recognises Tata Steel steelmaking plant at IJmuiden

in the Netherlands as a ‘factory of the future’.

b) Joined the CII led collegium of futuristic business houses to pledge support

to the start-up ecosystem through the CII Startupreneur Awards 2018 to

award India’s top start-ups.

c) Innovative Practices Award 2018 on Sustainable Development Goals (SDGs)

for its "Thousand Schools Programme" by UN Global Compact Network

India (GCNI).

d) Retained Industry Leader position in FY 2018 and ranked second overall in

the DJSI assessment, 2017.

e) Best Risk Management Framework & Systems Award 2019 by CNBC TV18.

f) Steel Sustainability Champions (2017) by World Steel Association.

g) CII-ITC Sustainability Awards 2018 for Excellence in Biodiversity.

h) ‘Most Ethical Company’ award from Ethisphere Institute for the sixth time

(2018).

i) Dun & Bradstreet Corporate Awards 2018).

j) Golden Peacock HR Excellence Award by Institute of Directors (2018).

k) Golden Peacock Award for Risk Management 2018.

2019-2020

a) Tata Steel wins the ‘Global Slag Company of the Year’ award at the 14th

Global Slag Conference and Exhibition 2019.

b) Tata Steel Bara Tertiary Treatment Plant wins the ‘Industrial Water Project

of the Year 2019’ Award by Global Water Intelligence.

c) Tata Steel’s structural hollow steel brand ‘Tata Structura’ is now a

Superbrand.

d) Tata Steel wins the prestigious Dun & Bradstreet Corporate Award 2019.

e) Tata Steel Kalinganagar joins the World Economic Forum's Global

Lighthouse Network.

f) Tata Steel mines receive 20 Awards for Excellence in Environmental

Management Practices

.Tata Structura wins India’s Most Trusted Brand Award from International

Brand Consulting Corporation.

g) Tata Steel's Chief of Corporate Sustainability, Madhulika Sharma, selected

as one of Asia’s Top Sustainability Superwomen by Global Reporting

Initiative.

h) Tata Steel's Digital initiatives honoured as ‘Business Transformer’ at the 14th

Annual CIO100 Awards.

i) Tata Steel’s mines awarded the FIMI Bala Gulshan Tandon Excellence

Award.

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Year Event

j) Tata Steel conferred the 'Best Integrated Report Award' for 2018 by Asian

Centre for Corporate Governance & Sustainability.

k) Tata Steel wins three awards at the worldsteel's 10th Steelie Awards.

l) Tata Steel honoured at National CSR Awards for its work on maternal and

child health.

m) Tata Steel recognised as worldsteel’s Climate Action Member.

n) Tata Steel’s ‘The Green School Project’ made its presence at the UN Climate

Change Conference (COP25) for the second year in a row.

o) ‘Tata Steelium’ honoured with the CII Award for Customer Centricity 2019.

p) Tata Steel’s mines and collieries win National Safety Awards for excellence

in safety practices.

q) Tata Steel recognised among India’s Best Workplaces: Large Organization,

2020.

r) Tata Steel Kalinganagar bags the National Energy Conservation Award 2019.

s) ‘The Green School’ Project makes its presence at the World Sustainable

Development Summit 2020.

t) Tata Steel Limited features among India’s Best Workplaces in Manufacturing

2020.

u) Tata Steel recognised as global leader for engaging its supply chain on climate

change.

v) Tata Steel named as one of the 2020 World's Most Ethical Companies by

Ethisphere.

Achievements

Some of the key achievements/awards received in recent years are as follows:

• Award for Corporate Social Responsibility in Public Health by US-India Business Council,

Population Services International and The Center for Strategic and International Studies.

• Greentech Safety Gold Award 2006 to Noamundi mines.

• IT User Category Award in IT Awards Competition organized by the Confederation of Indian

Industry and the Department of Information Technology, Government of Orissa.

• West Bokaro Division of Tata Steel honoured with the commendation certificate for ‘National

Energy Conservation Award’ in appreciation of their efforts in energy conservation in the

mining sector for the year 2006.

• Awarded the ‘Civil Society Award’ by UNAIDS for its exemplary role in fighting against

HIV in India.

• Tata Steel’s Noamundi Iron Ore mine won the First Prize for overall performance in the

‘Highly Mechanized Iron Ore Mines’ category, in the 44th Annual Mines Safety Week

Celebrations 2006 for Chaibasa region.

• Won the Best Governed Company Award 2006 presented by the Asian Centre for Corporate

Governance.

• Tata Steel Conferred Prime Minister's Trophy for Best Integrated Steel Plant Award for the

fifth Time.

• Conferred the first CII—ITC Sustainability Award for the year 2006.

• Awarded the Deming Application Prize for excellence in Total Quality Management in Nov

2008.

• The Golden Peacock Global Corporate Social Responsibility Award for its continual

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commitment to ethical behavior and its contribution to economic development while

improving the life of the community.

• The Economic Times Company of the Year Award for making a fundamental difference to

the way business is done.

• The Best Establishment Award by the President of India, Mrs. Pratibha Devi Singh Patil.

• The Most Admired Knowledge Enterprise (MAKE) Asia Award (five times).

• The TERI Corporate Award for the Company’s HIV/AIDS initiatives.

• The Think Odisha Leadership Award for 100 years of service to the nation.

• National Safety Awards to the West Bokaro and Jharia divisions.

• HMS Faglig Forum, the organisation of professional and industrial bodies for health,

environment and safety professionals in Norway awarded its 2008 prize to Corus Packaging

Plus in March 2009.

• Corus’ Scunthorpe site was recognised by the North Lincolnshire Health and Safety Group as

one of the most improved companies for accident prevention within the group in March 2009.

• Corus Tubes Maastricht received a national Good Practice Award from the European Agency

for Safety and Health at Work in November 2008.

• A CSR Award from Walsall Town Council in March 2009 to Corus Distribution UK and

Ireland for setting up a new approach to work experience.

• Confidex Sustain®, the world’s first cradle-to-cradle Carbon Neutral building envelope from

Corus Colors, was recognised by four major awards, including:

• A 2008 Welsh Marketing Award from The Chartered Institute of Marketing in Wales.

• The Chartered Institute for Waste Management’s Award for Sustainable Product

Development of the Year, which rewards environmental excellence and products that have

been designed or produced to improve sustainability.

• NatSteel Holdings bagged the Platinum Singapore HEALTH (Helping Employees Attain Life

Time Health) Award in November 2008.

• NatSteel Holdings won the Work-Life Excellence (WLE) Award in August 2008 for the third

time running.

• SCSC, a subsidiary of Tata Steel Thailand, received the Excellence in Manufacture Award for

Quality, Environment and Safety Management and the award for Logistics Management from

the Department of Primary Industries and Mines of Thailand’s Ministry of Industry.

• NatSteel Xiamen Ltd. received accreditation from the Australian Certification Authority for

Reinforcing Steel (ACRS).

• Wuxi Jinyang Metal Products Co. was awarded the ISO 14001 accreditation for environment

protection.

• CSR Excellence Award 2010 by ASSOCHAM (Associated Chambers of Commerce &

Industry of India).

• FE- EVI Green Business Leadership Award in the iron & Steel category for the year 2009-

2010

• Five HR awards by ‘Asia’s Best Employer Brand Awards 2010’ for Talent Management, Best

HR Strategy in line with Business, Excellence in Training, CEO with HR Orientation and HR

Leadership Award.

• Rashtriya Khel Protsahan Puruskar-2010 award for outstanding contribution in the field of

sports in the category of ‘Financial Support for Sports Excellence.

• India’s Most Admired Company by FORTUNE and Hay Group.

• Deming Grand Prize 2012 – The First Integrated Steel Company in the World to win this

Award.

• ‘Business of the Year’ award at CII-ITC Sustainability Award 2014.

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• Winner in the ‘Iron & Steel’ sector for the Dun & Bradstreet Corporate Awards 2016.

• Indian ‘Most Admired Knowledge Enterprises’ (MAKE) Award 2013 at CII’s ‘Knowledge

Summit 2014’ to recognize organizations (founded and headquartered in India) for good work

in area of Knowledge Management.

• Business Today Award for ‘Best Company to Work for’ in the core sector.

• Global Steel Industry Leader in the Dow Jones Sustainability Index 2016.

• India’s first Steel company to receive ‘GreenCo Platinum Rating’ by CII - Green Business

Centre.

• Awarded ‘A’ Rating - Climate Leadership Band by CDP for Climate Change disclosures for

Supply Chain.

• Noamundi Iron Mine and Joda East Iron Mine accorded ‘Five Star rating’ for its sustainable

mining practices by Ministry of Mines, Government of India.

ii. Corporate Structure

Tata Steel Limited had the following subsidiaries, joint ventures and associates as on March 31,

2020:

Sl. No. Name of the Company Ownership

(%)

A. Subsidiaries (Direct)

1. ABJA Investment Co. Pte. Ltd. 100.00

2. Adityapur Toll Bridge Company Limited 88.50

3. Tata Steel Special Economic Zone Limited 100.00

4. Indian Steel and Wire Products Limited 95.01

5.

Tata Steel Utilities and Infrastructure Services Limited

(Formerly known as Jamshedpur Utilities & Services

Company Limited)

100.00

6. Mohar Export Services Private Limited 66.46

7. NatSteel Asia Pte. Ltd. 100.00

8. Rujuvalika Investments Limited 100.00

9. T S Alloys Limited 100.00

10. Tata Korf Engineering Services Limited 100.00

11. Tata Metaliks Limited 55.06

12. Tata Steel Long Products Limited (Formerly known as Tata Sponge Iron

Limited) 75.91

13. Tata Steel (KZN) (Pty) Ltd. 90.00

14. T Steel Holdings Pte. Ltd. 100.00

15. Tata Steel Odisha Limited 100.00

16. Tata Steel Downstream Products Limited (Formerly known as Tata Steel

Processing and Distribution Limited) 100.00

17. Tayo Rolls Limited 54.91

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18. Tata Pigments Limited 100.00

19. The Tinplate Company of India Limited 74.96

20. Tata Steel Foundation 100.00

21. Jamshedpur Football and Sporting Private Limited 100.00

22. Sakchi Steel Limited 100.00

23. Jugsalai Steel Limited 100.00

24. Noamundi Steel Limited 100.00

25. Straight Mile Steel Limited 100.00

26. Bamnipal Steel Limited 100.00

27. Bistupur Steel Limited 100.00

28. Jamadoba Steel Limited 100.00

29. Dimna Steel Limited 100.00

30. Bhubaneshwar Power Private Limited 100.00

31. Creative Port Development Private Limited 51.00

B. Subsidiaries (Indirect)

1. Haldia Water Management Limited 60.00

2. Kalimati Global Shared Services Limited 100.00

3. TS Asia (Hong Kong) Ltd. 100.00

4. TSIL Energy Limited 100.00

5. T S Global Holdings Pte Ltd. 100.00

6. Orchid Netherlands (No.1) B.V. 100.00

7. NatSteel Holdings Pte. Ltd. 100.00

8. Easteel Services (M) Sdn. Bhd. 100.00

9. Eastern Steel Fabricators Philippines, Inc. 67.00

10. NatSteel Recycling Pte Ltd. 100.00

11. NatSteel Trade International Pte. Ltd. 100.00

12. The Siam Industrial Wire Company Ltd. 100.00

13. TSN Wires Co. Ltd. 60.00

14. Tata Steel Europe Limited 100.00

15. Apollo Metals Limited 100.00

16. Bell & Harwood Limited 100.00

17. Blastmega Limited 100.00

18. Bore Samson Group Limited 100.00

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19. Bore Steel Limited 100.00

20. British Guide Rails Limited 100.00

21. British Steel Corporation Limited 100.00

22. British Steel Directors (Nominees) Limited 100.00

23. British Steel Engineering Steels (Exports) Limited 100.00

24. British Steel Nederland International B.V. 100.00

25. British Steel Service Centres Limited 100.00

26. C V Benine 76.92

27. C Walker & Sons Limited 100.00

28. Catnic GmbH 100.00

29. Catnic Limited 100.00

30. CBS Investissements SAS 100.00

31. Tata Steel Mexico SA de CV 100.00

32. Cogent Power Inc 100.00

33. Cogent Power Limited 100.00

34. Color Steels Limited 100.00

35. Corbeil Les Rives SCI 67.30

36. Corby (Northants) & District Water Company Limited 100.00

37. Cordor (C& B) Limited 100.00

38. Corus CNBV Investments 100.00

39. Corus Cold drawn Tubes Limited 100.00

40. Corus Engineering Steels (UK) Limited 100.00

41. Corus Engineering Steels Holdings Limited 100.00

42. Corus Engineering Steels Limited 100.00

43. Corus Engineering Steels Overseas Holdings Limited 100.00

44. Corus Engineering Steels Pension Scheme Trustee Limited 100.00

45. Corus Group Limited 100.00

46. Corus Holdings Limited 100.00

47. Corus International (Overseas Holdings) Limited 100.00

48. Corus International Limited 100.00

49. Corus International Romania SRL. 100.00

50. Corus Investments Limited 100.00

51. Corus Ireland Limited 100.00

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52. Corus Large Diameter Pipes Limited 100.00

53. Corus Liaison Services (India) Limited 100.00

54. Corus Management Limited 100.00

55. Corus Property 100.00

56. Corus Service Centre Limited 100.00

57. Corus Tubes Poland Spolka Z.O.O 100.00

58. Corus UK Healthcare Trustee Limited 100.00

59. Crucible Insurance Company Limited 100.00

60. Degels GmbH 100.00

61. Demka B.V. 100.00

62. DSRM Group Plc. 100.00

63. Europressings Limited 100.00

64. Firsteel Group Limited 100.00

65. Firsteel Holdings Limited 100.00

66. Fischer Profil GmbH 100.00

67. Gamble Simms Metals Limited 100.00

68. Grant Lyon Eagre Limited 100.00

69. H E Samson Limited 100.00

70. Hadfields Holdings Limited 62.50

71. Halmstad Steel Service Centre AB 100.00

72. Hammermega Limited 100.00

73. Hille & Muller GmbH 100.00

74. Hille & Muller USA Inc. 100.00

75. Hoogovens USA Inc. 100.00

76. Huizenbezit “Breesaap” B.V. 100.00

77. Inter Metal Distribution SAS 100.00

78. Layde Steel S.L. 100.00

79. Lister Tubes Limited 100.00

80. London Works Steel Company Limited 100.00

81. Montana Bausysteme AG 100.00

82. Naantali Steel Service Centre OY 100.00

83. Nationwide Steelstock Limited 100.00

84. Norsk Stal Tynnplater AS 100.00

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85. Norsk Stal Tynnplater AB 100.00

86. Orb Electrical Steels Limited 100.00

87. Ore Carriers Limited 100.00

88. Oremco Inc. 100.00

89. Plated Strip (International) Limited 100.00

90. Precoat International Limited 100.00

91. Precoat Limited 100.00

92. Rafferty-Brown Steel Co Inc Of Conn. 100.00

93. Round Oak Steelworks Limited 100.00

94. Runblast Limited 100.00

95. Runmega Limited 100.00

96. S A B Profiel B.V. 100.00

97. S A B Profil GmbH 100.00

98. Seamless Tubes Limited 100.00

99. Service Center Gelsenkirchen GmbH 100.00

100. Service Centre Maastricht B.V. 100.00

101. Societe Europeenne De Galvanisation (Segal) Sa 100.00

102. Staalverwerking en Handel B.V. 100.00

103. Steel StockHoldings Limited 100.00

104. Steelstock Limited 100.00

105. Stewarts & Lloyds Of Ireland Limited 100.00

106. Stewarts And Lloyds (Overseas) Limited 100.00

107. Subarnarekha Port Private Limited 50.41

108. Surahammar Bruks AB 100.00

109. Swinden Housing Association Limited 100.00

110. Tata Steel Belgium Packaging Steels N.V. 100.00

111. Tata Steel Belgium Services N.V. 100.00

112. Tata Steel Denmark Byggsystemer A/S 100.00

113. Tata Steel Europe Distribution BV 100.00

114. Tata Steel Europe Metals Trading BV 100.00

115. Tata Steel France Batiment et Systemes SAS 100.00

116. Tata Steel France Holdings SAS 100.00

117. Tata Steel Germany GmbH 100.00

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118. Tata Steel IJmuiden BV 100.00

119. Tata Steel International (Americas) Holdings Inc 100.00

120. Tata Steel International (Americas) Inc 100.00

121. Tata Steel International (Czech Republic) S.R.O 100.00

122. Tata Steel International (Denmark) A/S 100.00

123. Tata Steel International (France) SAS 100.00

124. Tata Steel International (Germany) GmbH 100.00

125. Tata Steel International (South America) Representações LTDA 100.00

126. Tata Steel International (Italia) SRL 100.00

127. Tata Steel International (Middle East) FZE 100.00

128. Tata Steel International (Nigeria) Ltd. 100.00

129. Tata Steel International (Poland) sp Zoo 100.00

130. Tata Steel International (Schweiz) AG 100.00

131. Tata Steel International (Sweden) AB 100.00

132. Tata Steel International (India) Limited 100.00

133. Tata Steel International Iberica SA 100.00

134. Tata Steel Istanbul Metal Sanayi ve Ticaret AS 100.00

135. Tata Steel Maubeuge SAS 100.00

136. Tata Steel Nederland BV 100.00

137. Tata Steel Nederland Consulting & Technical Services BV 100.00

138. Tata Steel Nederland Services BV 100.00

139. Tata Steel Nederland Technology BV 100.00

140. Tata Steel Nederland Tubes BV 100.00

141. Tata Steel Netherlands Holdings B.V. 100.00

142. Tata Steel Norway Byggsystemer A/S 100.00

143. Tata Steel Sweden Byggsystem AB 100.00

144. Tata Steel UK Consulting Limited 100.00

145. Tata Steel UK Holdings Limited 100.00

146. Tata Steel UK Limited 100.00

147. Tata Steel USA Inc. 100.00

148. The Newport And South Wales Tube Company Limited 100.00

149. The Stanton Housing Company Limited 100.00

150. The Templeborough Rolling Mills Limited 100.00

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151. Thomas Processing Company 100.00

152. Thomas Steel Strip Corp. 100.00

153. Toronto Industrial Fabrications Limited 100.00

154. TS South Africa Sales Office Proprietary Limited 100.00

155. Tulip UK Holdings (No.2) Limited 100.00

156. Tulip UK Holdings (No.3) Limited 100.00

157. U.E.S. Bright Bar Limited 100.00

158. UK Steel Enterprise Limited 100.00

159. UKSE Fund Managers Limited 100.00

160. Unitol SAS 100.00

161. Walker Manufacturing And Investments Limited 100.00

162. Walkersteelstock Ireland Limited 100.00

163. Walkersteelstock Limited 100.00

164. Westwood Steel Services Limited 100.00

165. Whitehead (Narrow Strip) Limited 100.00

166. T S Global Minerals Holdings Pte Ltd. 100.00

167. Al Rimal Mining LLC 70.00

168. TSMUK Limited 100.00

169. Tata Steel Minerals Canada Limited 77.68

170. T S Canada Capital Ltd 100.00

171. Tata Steel International (Singapore) Holdings Pte. Ltd. 100.00

172. Tata Steel International (Shanghai) Ltd. 100.00

173. Tata Steel International (Asia) Limited 100.00

174. Tata Steel (Thailand) Public Company Ltd. 67.90

175. N.T.S Steel Group Plc. 99.76

176. The Siam Construction Steel Co. Ltd. 99.99

177. The Siam Iron And Steel (2001) Co. Ltd. 99.99

178. T S Global Procurement Company Pte. Ltd. 100.00

179. ProCo Issuer Pte. Ltd. 100.00

180. Tata Steel BSL Limited (formerly known as Bhushan Steel Limited) 72.65

181. Angul Energy Limited (formerly known as Bhushan Energy Limited) 99.99

182. Bhushan Steel (Orissa) Limited 100.00

183. Bhushan Steel (South) Limited 100.00

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184. Bhushan Steel (Madhya Bharat) Limited 100.00

185. Bhushan Steel (Australia) PTY Ltd. 90.97

186. Bowen Energy PTY Ltd. 100.00

187. Bowen Coal PTY Ltd. 100.00

188. Bowen Consolidated PTY Ltd. 100.00

C. Jointly Controlled Entities (Direct)

1. Himalaya Steel Mills Services Private Limited 26.00

2. mjunction services Limited 50.00

3. S & T Mining Company Private Limited 50.00

4. Tata Bluescope Steel Private Limited 50.00

5. Tata NYK Shipping Pte Ltd. 50.00

6. Jamshedpur Continuous Annealing and Processing Company Private Limited 51.00

7. T M Mining Company Limited 74.00

8. TM International Logistics Limited 51.00

9. Industrial Energy Limited 26.00

10. Jamipol Limited 39.78

11. Nicco Jubilee Park Limited 25.31

12. Medica T S Hospital Private Limited 26.00

D. Jointly Controlled Entities (Indirect)

1. Naba Diganta Water Management Limited 74.00

2. SEZ Adityapur Limited 51.00

3. Air Products Llanwern Limited 50.00

4. Laura Metaal Holding B.V. 49.00

5. Ravenscraig Limited 33.33

6. Tata Steel Ticaret AS 50.00

7. Texturing Technologies Limited 50.00

8. Hoogovens Court Roll Service Technologies VOF 50.00

9. BlueScope Lysaght Lanka (Pvt) Ltd 100.00

10. Tata NYK Shipping (India) Private Limited 100.00

11. International Shipping and Logistics FZE 100.00

12. TKM Global China Ltd 100.00

13. TKM Global GmbH 100.00

14. TKM Global Logistics Limited 100.00

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Management Structure

We have a well-defined operating structure to ensure that the Company is on track to achieve its vision

and strategic objectives. Our executive management rests with Mr. T. V. Narendran, Chief Executive

Officer and Managing Director, and Mr. Koushik Chatterjee, Executive Director and Chief Financial

Officer. We have a strong, diverse, highly qualified and richly experienced leadership team with a

track record of excellence and passion for performance.

iii. Key Operational and Financial Parameters for the last three audited years

The Company has adopted Indian Accounting Standard (referred to as ‘Ind AS’) with effect from April

15. Minas De Benga (Mauritius) Limited 35.00

16. Andal East Coal Company Private Limited 33.89

E. Associates (Direct)

1. Kalinga Aquatics Limited 30.00

2. Kumardhubi Fireclay & Silica Works Limited 27.78

3. Kumardhubi Metal Casting and Engineering Limited 49.31

4. Strategic Energy Technology Systems Private Limited 25.00

5. Tata Construction & Projects Limited 27.19

6. TRF Limited 34.11

7. Malusha Travels Private Limited 33.23

F. Associates (Indirect)

1. European Profiles (M) Sdn. Bhd. 20.00

2. Albi Profils SRL 30.00

3. GietWalsOnderhoudCombinatie B.V. 50.00

4. Hoogovens Gan Multimedia S.A. De C.V. 50.00

5. ISSB Limited 50.00

6. Wupperman Staal Nederland B.V. 30.00

7. Fabsec Limited 25.00

8. New Millennium Iron Corp. 26.18

9. 9336-0634 Québec Inc 33.33

10. TRF Singapore Pte Limited 100.00

11. TRF Holding Pte Limited 100.00

12. Dutch Lanka Trailer Manufacturers Limited 100.00

13. Dutch Lanka Engineering (Private) Limited 100.00

14. Bhushan Capital & Credit Services Private Limited 42.58

15. Jawahar Credit & Holdings Private Limited 39.65

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1, 2016; and accordingly, the financial results set out below have been prepared in accordance with

the recognition and measurement principles laid down as per Ind AS 34 “Interim Financial Reporting”

as prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued

thereunder and the other accounting principles generally accepted in India. Audited consolidated and

standalone financial statements of the Company as at and for the financial year ended March 31, 2020

were not available as at the date of this Information Memorandum.

• Consolidated balance sheet highlights as at September 30, 2019, March 31, 2019, March 31,

2018 and March 31, 2017 (as per IND AS)

(in Rs. in crores)

Particulars

As at

September 30,

2019

March 31,

2019

March 31,

2018

March 31,

2017

Net worth 75,303 71,290 61,807 39,421

Total debt 111,548 100,816 92,147 83,014

of which

– Non current maturities of 86,451 80,343 72,789 64,022

long term borrowings

- Short term borrowings 16,295 10,802 15,885 18,328

- Current maturities of long

term borrowings 8,803 9,671 3,473 664

Net fixed assets (Tangible) 138,213 136,407 106,483 102,395

Non-current assets 184,926 174,591 141,881 122,398

Cash and cash equivalents 3,719 3,341 7,938 4,921

Current investments 817 2,525 14,909 5,673

Current assets 58,571 58,991 67,877 50,935

Total Non-current liabilities 104,035 101,259 92,289 83,571

Total Current liabilities 64,159 61,034 55,661 50,341

Current ratio 1.48 1.39 1.46 1.44

Gross debt/equity ratio 1.52 1.51 1.82 1.98

• Consolidated profit and loss statement highlights for the nine-month period ended December

31,2019, and the financial years ended March 31, 2019, March 31, 2018 and March 31, 2017

(as per IND AS)

(in Rs. in crores)

Particulars

Nine-month

period ended

December

31, 2019

Year ended

March 31, 2019

Year ended

March 31, 2018

Year ended

March 31,

2017

Net sales (net of excise)

106,574 159,090 123,675 112,952 (including other

income)

EBITDA (excluding

finance income and

before exceptional

items)

13,066 29,770 21,369 17,018

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Particulars

Nine-month

period ended

December

31, 2019

Year ended

March 31, 2019

Year ended

March 31, 2018

Year ended

March 31,

2017

EBIT (including other

income and before

exceptional items)

6,850 22,428 15,627 11,345

Interest 5,608 7,660 5,455 5,072

Tax expense/(credit) (2,305) 6,718 3,392 2,778

Profit After Tax 2,788 9,098 17,762 (4,169)

Profit/(loss) for the

period (after minority

interests and share of

profit/(loss) of

associates)

3,038 10,218 13,434 (4,241)

Dividend amount

(including DDT) 1,786 1,369 1,158 925

• Standalone balance sheet highlights as at September 30, 2019, March 31, 2019, March 31,

2018 and March 31, 2017 (as per IND AS)

(in Rs. in crores)

Parameters

As at

September 30,

2019

March 31,

2019

March 31,

2018

March 31,

2017

Net worth 76,092 72,730 63,790 51,934

Total debt of which 31,492 29,701 28,126 28,285

– Non current maturities of

long term borrowings 28,725 26,651 24,569 24,694

- Short term borrowings 1507 8 670 3,240

- Current maturities of long

term borrowings 1,260 3,042 2,887 351

Net fixed assets (Tangible) 73,863 76,103 76,584 77,904

Non-current assets 122,913 120,463 90,470 91,355

Cash and cash equivalents

(incl other balances with

banks)

1750 718 4,697 970

Current investments 0 477 14,640 5,310

Current assets 17,770 17,036 34,644 20,110

Non-current liabilities 39,042 39,175 35,717 36,475

Current liabilities 25,549 25,594 25,607 23,056

Debt service coverage ratio 1.54 6.23 5.73 2.72

Gross debt/equity ratio 0.42 0.42 0.49 0.56

Note - The financial information provided in the above tables are as per Ind AS.

• Consolidated profit and loss statement highlights for the nine-month period ended December

31,2019, and the financial years ended March 31, 2019, March 31, 2018 and March 31, 2017

(as per IND AS)

(in Rs. in crores)

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Particulars

Nine month

period ended

December 31,

2019

Year ended

March 31,

2019

Year ended

March 31,

2018

Year ended

March 31,

2017

Net sales (net of excise)

(including other income) 46,557 73,016 59,924 48,558

EBITDA (excluding finance

income and before

exceptional items)

11,435 20,744 15,800 11,944

EBIT (including other

income and before

exceptional items)

8,517 16,941 12,072 8,403

Interest 2,227 2,824 2,811 2,689

Tax expense/(credit) -474 5,694 2,469 1,912

PAT 7,181 10,533 4,170 3,445

Dividend amount (including

DDT) 1,787 1,371 1,160 925

Interest coverage ratio N.A. 9.57 7.03 4.21

Debt service coverage ratio N.A. 6.23 5.73 2.72

• Gross Debt/Equity Ratio of the Company (Standalone):-

Before the issue of Debentures* 0.42

After the issue of Debentures* 0.44

* Based on the September 30, 2019 standalone financial statements and taking base issue size of

Rs.1,000 crores

iv. Project cost and means of financing of new projects

Not Applicable

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(c) Brief history of the Issuer

i. Details of Share Capital as on March 31, 2020

Authorised:

1,75,00,00,000 Ordinary Shares of Rs. 10.00 each 17,50,00,00,000.00

(March 31, 2019: 17,50,00,000 Ordinary Shares

of Rs. 10.00 each)

35,00,00,000 “A” Ordinary Shares of Rs. 10.00 each 3,50,00,00,000.00

(March 31, 2019: 35,00,00,000 Ordinary Shares

of Rs. 10.00 each)

2,50,00,000 Cumulative Redeemable Preference Shares of Rs.

100.00 each 2,50,00,00,000.00

(March 31, 2019: 2,50,00,000 Shares of Rs.

100.00 each)

60,00,00,000 Cumulative Convertible Preference Shares of Rs.

100.00 each 60,00,00,00,000.00

(March 31, 2019: 6,00,00,000 Shares of Rs.

100.00 each)

83,50,00,00,000.00

Issued:

1,12,75,20,570 Ordinary Shares of Rs. 10.00 each 11,27,52,05,700.00

(March 31, 2019: 1,12,75,20,570 Ordinary Shares

of Rs. 10.00 each)

7,76,97,280

Ordinary Shares of Rs. 10.00 each (Partly Paid

up)

(March 31, 2019: 7,76,97,280 Ordinary Shares of

Rs. 2.504 each paid up)

77,69,72,800.00

12,05,21,78,500.00

Subscribed and

Paid up:

A. Fully Paid

1,12,64,90,211 Ordinary Shares of Rs. 10.00 each fully paid up 11,26,49,02,110.00

(March 31, 2018: 1,12,64,84,815 Ordinary Shares of

Rs. 10.00 each)

(July 27, 2018: 324 Ordinary Shares of Rs. 10.00 each)

(December 18, 2018: 3866 Ordinary Shares of Rs.

10.00 each)

(March 27, 2019: 675 Ordinary Shares of Rs. 10.00

each)

(November 14, 2019: 531 Ordinary Shares of Rs. 10.00

each)

Add: Amount paid up on 3,89,516 Ordinary

Shares forfeited 20,00,000.00

(March 31, 2018: 3,89,516 Shares of Rs.

10.00 each)

B. Partly Paid

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7,76,36,788

Ordinary Shares of Rs. 10.00 each (paid-up Rs.

2.504 each)

(March 31, 2018: 7,76,34,625 Ordinary Shares of Rs.

2.504 each paid up)

19,44,02,517.15

(July 27, 2018: 162 Ordinary Shares of Rs. 10.00 each

paid-up Rs. 2.504)

(December 18,2018: 1,918 Ordinary Shares of Rs. 10.00

each paid-up Rs. 2.504)

(November 14,2019: 83 Ordinary Shares of Rs. 10.00 each

paid-up Rs. 2.504)

ii. Changes in capital structure as on March 31, 2020 (for last five years)

There has been no change in the authorized share capital of the Company in last five years.

iii. Equity share capital history of the Company as on March 31, 2020 (for last five years)

Date of

Allotment

No of

Ordinary

Shares

Face

Value

(Rs. )

Issue

Price

(Rs. )

Consi

derat

ion

(Cas

h,

other

than

cash,

etc.)

Nature of

Allotment

(Remarks)

Cumulative

No of Ordinary

Shares

Equity Share

Capital (Rs. )

Equity Share

Premium

May 15 ,

2017 450 10 300 Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2007

97,12,15,889 9,71,41,58,890 1,30,500

March 14,

2018

15,52,68,926 10 510 Cash

Rights Issue

2018

1,12,64,84,815 11,26,48,48,150 77,63,44,63,000

7,76,34,625

10 (paid

up Rs.

2.504)

615 Cash 1,20,41,19,440 11,45,92,45,251 111,76,13,35,149

July 27,

2018

324 10 510 Cash Allotment of

Shares kept in

abeyance in

Rights issue

2018

1,20,41,19,764 11,45,92,48,491 1,62,000

162

10 (paid

up Rs.

2.504)

615 Cash 1,20,41,19,926 11,45,92,48,897 2,45,42.352

December

18, 2018

3,840 10 510

Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2018

1,20,41,23,766 11,45,92,87,297 19,20,000

1,918

10 (paid

up Rs.

2.504)

615 1,20,41,25,684 11,45,92,92,099 2,90,569.328

15 10 300

Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2007

1,20,41,25,699 11,45,92,92,249 4,350

11 10 600 1,20,41,25,710 11,45,92,92,359 6,490

March 27,

2019 675 10 300 Cash

Allotment of

Shares kept in 120,41,26,385 11,45,92,99,109 1,95,750

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iv. Details of any Acquisition or Amalgamation in the last one year

• Tata Steel through its subsidiary Tata Steel Long Products Limited (Erstwhile Tata Sponge Iron

Limited) has completed the acquisition of the steel business undertaking including captive power

plants of Usha Martin Limited on April 9, 2019, which is an Integrated Steel Plant to manufacture

alloyed speciality steel in long products segments like Wire Rods and Bars.

• Tata Steel on July 24, 2019, subscribed to 2,58,43,967 Rights Equity Shares of its subsidiary Tata

Steel Long Products Limited (Erstwhile Tata Sponge Iron Limited) at an issue price of Rs. 500

per Rights Equity Share (including a premium of Rs. 490 per Rights Equity Share) aggregating to

Rs. 1,292.20 crores.

• In June 2019, Tata Steel BSL Limited has successfully completed the acquisition of Bhushan

Energy Limited (BEL) in accordance with the Approved Resolution Plan under the Corporate

Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016, as amended. Post

acquisition, the company holds 99.99% of the total equity share capital of BEL.

• Tata Steel on March 28, 2019 acquired 27,97,000 equity shares of face value Rs. 10 each

aggregating to Rs. 179,56,74,000, and 34,92,500 convertible warrants aggregating to Rs.

224,21,85,000 of Tata Metaliks Limited on preferential basis.

• Tata Steel on March 25, 2019, acquired 230,00,00,000 – 8.89% Optionally Convertible

Redeemable Preference Shares of Tata Steel BSL Limited on private placement basis aggregating

to Rs. 2,300 crores.

abeyance in

Rights issue

2007

November

14, 2019

210 10 300 Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2007

120,41,26,595 11,45,93,01,209 60,900

154 10 600 Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2007

120,41,26,749 11,45,93,02,749 90,860

167 10 510 Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2018

120,41,26,916 11,45,93,04,419 83,500

83

10 (paid

up Rs.

2.504)

615 Cash

Allotment of

Shares kept in

abeyance in

Rights issue

2018

120,41,26,999 11,45,93,04,627 12,574.17

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67

• Tata Steel on March 22, 2019, acquired 670,00,00,000 – 8.89% Optionally Convertible

Redeemable Preference Shares of Tata Steel BSL Limited on private placement basis aggregating

to Rs. 6,700 crores.

• Tata Steel on March 22, 2019, acquired 25,00,00,000, 12.5% Non-Convertible Redeemable

Preference Shares of TRF Limited on private placement basis aggregating to Rs. 250 crores.

• Tata Steel on March 20, 2019 acquired 1070,00,00,000 – 11.09% Non-Convertible Redeemable

Preference Shares of Tata Steel BSL Limited aggregating to Rs. 10,700 crores.

v. Details of Reorganisation or Reconstruction in last one year

The Composite Scheme of Amalgamation of Bamnipal Steel Limited (‘Transferor Company 1’) and

Tata Steel BSL Limited (formerly known as Bhushan Steel Limited) (‘Transferor Company 2’) into

and with Tata Steel Limited (‘Company’ or ‘Transferee Company’):

The Board of Directors of the Company at its meeting held on April 25, 2019, inter alia, have

considered and approved the aforesaid Scheme pursuant to Sections 230 to 232 and other applicable

provisions of the Companies Act, 2013, as amended, for the amalgamation of the Transferor Company

1, a wholly owned subsidiary of the Company, and the Transferor Company 2, an indirect subsidiary

of the Company, into and with the Company, subject to the requisite statutory and regulatory

approvals.

Post ‘no objection’ from designated stock exchange and confirmation from SEBI, the Scheme is

pending approval from shareholders of the Company and Tata Steel BSL Limited at a duly convened

meeting. Post shareholders’ approval, the Company will file the petition for approval of the Scheme

with NCLT.

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68

(d) Details of shareholding of the Company

i. Shareholding pattern of the Company as on March 31, 2020

Sr.

No Particulars

Total no. of

equity shares

No. of shares in

Demat form

Total

shareholding

as % of total

no. of equity

shares

FULLY PAID

I

Promoter and Promoter Group 37,54,15,658 37,54,15,658 33.33

Public Shareholding 75,10,74,553 73,56,70,514 66.67

Total 1,12,64,90,211 1,11,10,86,172 100.00

PARTLY PAID

II

Promoter and Promoter Group 3,89,42,999 3,89,42,999 50.16

Public Shareholding 3,86,93,789 3,85,11,122 49.84

Total 7,76,36,788 7,74,54,121 100.00

Notes: Shares pledged or encumbered by the promoters (if any): As on March 31, 2020, Tata Sons Private

Limited (Promoter) had pledged 1,39,80,000 Equity Shares representing 3.37% of the total shareholding

of the Promoter Group and 1.16% of the total Share Capital of the Company

ii. List of top 10 holders of equity shares of the Company as on March 31, 2020

Sr.

No. Name of the shareholders

Total No. of

equity shares

No. of shares

held in demat

form

Total

shareholding

as % of total

no of Fully

Paid equity

shares

1 Life Insurance Corporation Of India 10,96,96,176 10,96,96,176 9.74

2 HDFC Trustee Company Ltd. A/C

HDFC Balanced Advantage Fund 5,79,60,106 5,79,60,106 5.15

3 ICICI Prudential Value Discovery Fund 2,54,85,333 2,54,85,333 2.26

4 SBI-ETF Nifty 50 1,87,73,341 1,87,73,341 1.67

5 Reliance Capital Trustee Co Ltd-A/C

Nippon India Large Cap Fund 1,80,96,648 1,80,96,648 1.61

6 ICICI Prudential Life Insurance

Company Limited 1,79,94,062 1,79,94,062 1.60

7 Government Pension Fund Global 1,09,67,749 1,09,67,749 0.97

8

NPS Trust- A/C UTI Retirement

Solutions Pension Fund Scheme - State

Govt

1,04,40,508 1,04,40,508 0.93

9 Abu Dhabi Investment Authority -

Lglinv 90,41,962 90,41,962 0.80

10 UTI - Nifty Exchange Traded Fund 85,37,936 85,37,936 0.76

List of top 10 holders of partly paid-up equity shares of the Company as on March 31, 2020

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69

Sr.

No. Name of the Shareholder

Total no. of

equity shares

No. of equity

shares held in

demat form

Total

shareholding

as % of total

no of Partly

Paid equity

shares

1 Reliance Capital Trustee Co. Ltd - A/C

Nippon India Tax Saver (Elss) Fund 46,37,800 46,37,800 5.97

2 HDFC Trustee Company Limited -

HDFC Equity Fund 22,53,377 22,53,377 2.90

3 The New India Assurance Company

Limited 7,76,084 7,76,084 1.00

4 Government Pension Fund Global 5,13,408 5,13,408 0.66

5 SBI Arbitrage Opportunities Fund 4,91,626 4,91,626 0.63

6 HDFC Life Insurance Company Limited 4,84,893 4,84,893 0.62

7 Shaileshkumar Rasiklal Shah 3,67,464 3,67,464 0.47

8 Kamlesh N Shah 2,60,740 2,60,740 0.34

9 Kamlesh Navin Shah HUF 2,37,280 2,37,280 0.31

10

NPS Trust- A/C UTI Retirement

Solutions Pension Fund Scheme - State

Government

2,19,541 2,19,541 0.28

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70

(e) Details regarding the Directors of the Company

i. Details of the current Directors of the Company

Name,

Designation and

DIN

Age

(Years) Address

Director of

the Company

since

Details of other Directorship

Natarajan

Chandrasekaran

Non-Executive

Chairman

DIN - 00121863

56 Flat No. 21, 33

South

Condominium,

Pedder Road,

Opp. Sterling

Apartments,

Mumbai 400 026

January 13,

2017

Public Companies:

Tata Consultancy Services

Limited

Tata Motors Limited

The Indian Hotels Company

Limited

The Tata Power Company

Limited

Tata Global Beverages Limited

Private Companies:

Tata Sons Private Limited

Section 8 Company:

TCS Foundation

Other Bodies:

Reserve Bank of India

Foreign Companies:

Jaguar Land Rover Automotive

PLC

Mallika

Srinivasan,

Independent

Director

DIN- 00037022

60 West Side House

3, Adyar Club

Gate Road, Raja

Annamalaipuram,

Chennai 600 028

May 21, 2012 Public Companies:

Tractors and Farm Equipment

Limited

TAFE Access Limited

TAFE Reach Limited

TAFE Properties Limited

TAFE Motors and Tractors

Limited

The United Nilgiri Tea Estates

Company Limited

Private Companies:

Trust Properties Development

Company Pvt. Ltd

Other Bodies:

Chennai Willingdon Corporate

Foundation

Indian School of Business

Foreign Companies:

AGCO Corporation, USA

O. P. Bhatt,

Independent

Director –

DIN- 00548091

69 Flat 03, Seagull,

Carmichael

Road, Cumballa

Hill, Mumbai 400

026

June 10, 2013 Public Companies:

Hindustan Unilever Limited

Tata Consultancy Services

Limited

Tata Motors Limited

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71

Aadhar Housing Finance Limited

Foreign Companies:

Greenco Energy Holdings

Limited

Peter (Petrus)

Blauwhoff

Independent

Director

DIN- 07728872

66 Linnaeuslaan 12,

2012 PP

Haarlem, The

Netherlands

February 7,

2017

Foreign Companies:

Royal Haskoning DHV

Blauwhoff International

Consulting

Blue Court Holdings B.V.

Stichting (Foundation) de PAN

Kongstein AS

Tata Steel Europe Limited

Tata Steel Nederland BV

Florengy AG

Aman Mehta

Independent

Director

DIN- 00009364

73 115A, 2nd Floor,

Jor Bagh, Lodhi

Road, New Delhi

110 003

March 29,

2017

Public Companies:

Wockhardt Limited

Godrej Consumer Products

Limited

Max Financial Services Limited

Vedanta Limited

Foreign Companies:

PCCW Limited

HKT Limited, Hong Kong

Deepak Kapoor

Independent

Director

DIN – 00162957

61 House No. K-42,

NDSE Part II,

New Delhi

110049

April 1, 2017 Public Companies:

HCL Technologies Limited

Nayara Energy Limited

Vadinar Oil Terminal Limited

Private Companies:

Delhivery Private Limited

M/s Denovo Associates Pivate

Limited

PWC India Private Limited Saurabh Agrawal

Non-Executive

Director

DIN: 02144558

50 Flat No. 2803,

Imperial Towers,

BB Nakashe

Marg, Tardeo,

Tulsiwadi,

Mumbai-400034

August 10,

2017

Public Companies:

Tata Capital Limited

The Tata Power Company

Limited

Tata AIA Life Insurance Co. Ltd.

Tata AIG General Insurance Co.

Ltd.

Tata Teleservices Limited

Tata Sky Limited

Private Companies:

Tata Sons Private Limited

Gradis Trading Private Limited

Vijay Kumar

Sharma

Additional (Non-

Executive) Director

DIN: 02449088

61 6A, Jeevan Jyot,

Setalvad Lane,

Napeansea Road,

Mumbai –

400006

August 24,

2018

Public Companies:

ACC Limited

Mahindra & Mahindra Limited

T. V. Narendran,

Chief Executive

Officer &

54 Bungalow No. 5,

C Road, Northern

Town, East

September 19,

2013

Public Companies:

Straight Mile Steel Limited

Sakchi Steel Limited

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72

Managing

Director

DIN-03083605

Singhbhum,

Jamshedpur

831001

Noamundi Steel Limited

Jugsalai Steel Limited

Tata Steel BSL Limited

Tata Steel Long Products Limited

TRF Limited

Section 8 Company:

Tata Steel Foundation

Foreign Companies:

Tata Steel Europe Limited

T S Global Holdings Pte. Ltd

Koushik

Chatterjee,

Executive

Director & Chief

Financial Officer

DIN-00004989

51 Flat No. 1803,

Signia Isles, G

Block, Bandra

Kurla Complex,

Next to Sofitel

Hotel Bandra

East, BKC

Mumbai - 400

051

November 9,

2012

Public Companies:

The Tinplate Company of India

Ltd

Tata Metaliks Limited

Tata Steel BSL Limited

Tata Steel Long Products Limited

TRF Limited

Section 8 Company:

Tata Steel Foundation

Foreign Companies:

T S Global Holdings Pte. Ltd

T S Global Minerals Holdings

Pte. Ltd

T S Global Procurement Co. Pte.

Ltd.

Tata Steel Europe Ltd.

Other Bodies:

World Steel Association,

Belgium

Names of Directors of Tata Steel Limited appearing in the defaulters list of Reserve Bank of India,

specific approval list of Export Credit Guarantee Corporation of India Limited and defaulters list

of Credit Information Bureau (India) Limited.

As on March 31, 2020: None

Names of the Authorities Name of Directors Name of the defaulter Company

Nil Nil Nil

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73

ii. Details of the change in Directors since last three years

Name, Designation and DIN

Date of

Appointment/

Resignation

Director

of the Company

since (In case of

resignation/

removal)

Remarks

Mr. Vijay Kumar Sharma

Non-Executive Director

DIN: 02449088

August 24, 2018 - Appointed as Non-

Executive Director

Mr. Dinesh K. Mehrotra

Non-Executive Director

DIN: 00142711

May 16, 2018 October 22, 2012

Ceased to be a

Non-Executive

Director

Mr. Ishaat Hussain

Non- Executive Director

DIN:00027891

September 1, 2017 July 15, 1999

Ceased to be a

Non-Executive

Director

Mr. Andrew Robb

Independent Director

DIN:01911023

September 1, 2017 November 22, 2007

Ceased to be an

Independent

Director

Mr. Saurabh Agrawal

Non- Executive Director

DIN: 02144558

August 10, 2017 - Appointed as Non-

Executive Director

Mr. Deepak Kapoor

Independent Director

DIN – 00162957

April 1, 2017 -

Appointed as an

Independent

Director

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74

(f) Details regarding the auditors of the Company

i. Details of the statutory auditors of the Company

Name Address Auditor since

Price Waterhouse & Co

Chartered Accountants

LLP

56 & 57, Block DN, Ground Floor, A

Wing, Sector V, Salt Lake, Kolkata

700091, West Bengal

Financial Year 2017-2018

ii. Details of change in Auditors since last three years:-

Name

Address Date of

appointment /

resignation

Auditor of the

Company since (in

case of

resignation)

Remarks

Price Waterhouse

& Co

Chartered

Accountants LLP

56 & 57, Block

DN, Ground

Floor, A Wing,

Sector V, Salt

Lake, Kolkata

700091, West

Bengal

August 8, 2017

(Appointment)

N.A.

Appointed at 110th

Annual General

Meeting of the

Company held on

August 8, 2017 for a

term of five years, i.e.

until the conclusion of

the 115th Annual

General Meeting of the

Company to be held in

2022.

Deloitte Haskins

and Sells LLP

Indiabulls

Finance Centre

Tower 3, 27th-

32nd floor,

Senapati Bapat

Marg,

Elphinstone

Road (West),

Mumbai – 400

013

August 8, 2017

(Resignation)

(Completion of

tenure)

August 14, 2014

Messrs Deloitte

Haskins and Sells LLP

were appointed at

107th Annual General

Meeting of the

Company held on

August 14, 2014 for a

period of three years

i.e. until conclusion of

the 110th Annual

General Meeting of the

Company held on

August 8, 2017.

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75

(g) Details of borrowings of the Company:-

i. Details of Secured Loan Facilities as at December 31, 2019*

(in Rs. in crores)

Lender’s

Name

Type of

Facility

Amount

Sanctioned/

Disbursed

Principal

Amount

Outstanding

Repayment

Date/

Schedule

Security

Joint Plant

Committee-

Steel

development

Fund

Secured - 2,599 Loan is

repayable in

sixteen equal

semiannual

installments

after

completion of

4 years from

the date of

tranche.

It is secured by mortgages on,

all present and future

immovable properties

wherever situated and

hypothecation of movable

assets, excluding land and

building mortgaged in favour

of Government of India under

the deed of mortgage dated

April 13, 1967 and in favour

of Government of Bihar under

two deeds of mortgage dated

May 11, 1963, immovable

properties and movable assets

of the Tube Division, Bearing

Division, Ferro

Alloys Division and Cold

Rolling Complex (West) at

Tarapur and all investments

and book debts of the

Company subject to the prior

charges created and/or to be

created in favour of bankers

for securing borrowing for

working capital requirement

and charges created and/or to

be created on specific items of

machinery and equipment

procured/to be procured under

deferred payment

schemes/bill re-discounting

schemes/asset

credit schemes.

The loan is repayable in 16

equal semi-annual instalments

after completion of four years

from the date of the tranche.

The Company has filed a writ

petition before the High Court

at Kolkata in February 2006

claiming waiver of the

outstanding loan and interest

and refund of the balance

lying with Steel Development

Fund and the matter is

subjudice.

*Audited consolidated and standalone financial statements of the Company as at and for the financial

year ended March 31, 2020 were not available as at the date of this Information Memorandum.

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76

ii. Details of Unsecured Loan Facilities as on December 31, 2019* (as per IND AS)

Lender’s name/

Name of the Bank

Nature of facility/

instrument

Amount

sanctioned**

Principal

amount

outstanding

as on

December

31, 2019

(Rs. in crore)

Repayment date / schedule

Credit Agricole

Corporate and

Investment Bank

Foreign Currency

Loan

€72mn

54.14 Repayable in 5equal semi-annual

instalments, the next instalment is

due in January 2020

BNP Paribas Foreign Currency

Loan

54.14

AKA Bank Foreign Currency

Loan

€264mn

77.00 Repayable in 5 equal semi-annual

instalments, the next instalment is

due on April 2020 Bayerische

Landesbank

Foreign Currency

Loan

92.00

Commerz Bank

Aktiengesselschaft

Foreign Currency

Loan

123.00

DZ Bank AG Foreign Currency

Loan

92.00

Sumitomo Mitsui

Banking Corporation

Foreign Currency

Loan US$ 200

Mn

713.85 Repayable in 3 annual installments

starting from February 18, 2020

Export Development

Bank Canada

Foreign Currency

Loan

713.85

Standard Chartered

Bank

Foreign Currency

Loan

US$ 7.86

Mn

56.12 Repayable on February 28, 2021

Group of Banks Foreign Currency

Loan US$ 525

Mn

1,285 Three equal installments in

September 2023, September 2024,

September 2025

Other Lender Rupee Term Loan Rs. 2,000

Crore

1,600.00 Repayable in 8 semi-annual

instalments, the next instalment is

due on April 30, 2020.

State Bank of India

led consortium

Project Loan Rs.

10,875

Crore

2,500.00 Repayable in 9 quarterly instalments

commencing from March 31, 2023

Other Lender Rupee Term Loan Rs.

1,500

Crore

1,047.50 Repayable in 10 semi-annual

instalments, the next instalment is

due on November 29, 2022

Other Lender Rupee Term Loan Rs. 850

Crore

584.50 Repayable in 8 semi-annual

instalments, the next instalment is

due on June 15, 2021.

Other Lender Rupee Term Loan Rs. 650

Crore

637.00 Repayable in 15 semi-annual

instalments, the next instalment is

due in February 2020.

Other Lender Rupee Term Loan Rs. 1,500

Crore

1,447.50 Repayable in 19 semi-annual

instalments, the next instalment is

due on April 16, 2020

Other Lender Rupee Term Loan Rs. 1,000

Crore

1,000.00 Repayable in 16 semi-annual

instalments, the next instalment is

due on March 22, 2022

Other Lender Rupee Term Loan Rs. 750

Crore

750.00 Repayable in 3 equal annual

instalments commencing from May

21, 2021

Other Lender Rupee Term Loan Rs. 1,000

Crore

1,000.00 Repayable in 15 equal annual

instalments commencing from June

2020

*Audited consolidated and standalone financial statements of the Company as at and for the financial year

ended March 31, 2020 were not available as at the date of this Information Memorandum.

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77

**Exchange Rate as on December 31, 2019

iii. Details of Non-Convertible Debentures as on March 31, 2020*

Debenture

Series ISIN

Tenor/

Period

of

maturity Coupon

Amount

issued

(Rs. in

crore)

Date of

allotment

Redemption

date/

Schedule

Credit

rating##

Secured/

Unsecured

NA INE081A08207 8

9.15%

NCDs

(Series

II) 500

January

24, 2013

January 24,

2021 AA Unsecured

NA INE081A08181 10 2%

NCDs 1,500**

April 23,

2012 April 23, 2022 AA Unsecured

NA INE081A08215 10 8.15%

NCDs 1,000

October

4, 2016

October 1,

2026 AA Unsecured

NA INE081A08140 20

10.25%

NCDs

(Series

I)***

500 December

22, 2010

a) Rs. 223.35

crores will

mature on

December 22,

2028

b) Rs. 223.35

crores will

mature on

December 22,

2029

c) Rs. 223.35

crores will

mature on

December 22,

2030 #

AA Unsecured

NA INE081A08157 20

10.25%

NCDs

(Series

II)***

2,500 January 6,

2011

a) Rs. 1,116.74

crores will

mature on

January 6,

2029

b) Rs.

1,116.75

crores will

mature on

January 6,

2030

c) Rs. 1,116.75

crores will

mature on

January 6,

2031 #

AA Unsecured

NA INE081A08223 15 9.8359%

NCDs 4,315

March 1,

2019

a) Rs. 1,078.75

crores will

mature on

February 28,

2031

b) Rs.

1,078.25

crores will

mature on

March 01,

2032

c) Rs. 1,078.25

crores will

mature on

AA Unsecured

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78

Debenture

Series ISIN

Tenor/

Period

of

maturity Coupon

Amount

issued

(Rs. in

crore)

Date of

allotment

Redemption

date/

Schedule

Credit

rating##

Secured/

Unsecured

March 01,

2033

d) Rs.

1,078.25

crores will

mature on

March 01,

2034

NA INE081A08231 5 7.70%

NCDs 670

March 13,

2020

March 13,

2025 AA Unsecured

Notes:

1. On April 17, 2020, the Committee of Directors of Tata Steel approved the allotment of 10,250– 7.85% p.a

Unsecured, Redeemable, Rated, Listed Non-Convertible Debentures having face value of ₹10,00,000 each for

cash aggregating to ₹1,025 crores, to identified investors on private placement basis for a tenure of 3 years.

These debentures are due for redemption on April 17, 2023.

2. On April 22, 2020, the Committee of Directors of Tata Steel approved the allotment of 7.85% p.a Unsecured,

Redeemable, Rated, Listed Non-Convertible Debentures having face value of ₹10,00,000 each for cash

aggregating to ₹510 crores, to identified investors on private placement basis for a tenure of 3 years. These

debentures are due for redemption on April 22, 2023.

3. On April 27, 2020, the Committee of Directors of Tata Steel approved the allotment of Unsecured,

Redeemable, Rated, Listed, Non-Convertible Debentures on a Floating Rate linked to Repo Rate fixed by the

Reserve Bank of India on each monthly reset date and the applicable spread of 3.30% per annum, having face

value of ₹10,00,000 each for cash aggregating to ₹ 1,000 crores to identified investors on private placement

basis for a tenure of 3 years. These debentures are due for redemption on April 27, 2023.

4. On April 30, 2020, the Committee of Directors of Tata Steel approved the allotment of (i) Series A (Floating

Rate Debentures) - 5,000 Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures Floating Rate

linked to Repo Rate fixed by the Reserve Bank of India on each monthly reset date and the applicable spread

of 3.45% per annum, having face value ₹10,00,000 each aggregating to ₹500 crore to identified investors on a

private placement basis for a tenure of three years; and (ii) Series B (Fixed Rate Debentures) – 5,000 – 7.95%

p.a. Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures of face value ₹10,00,000 each

aggregating to ₹500 crore to identified investors on a private placement basis for a tenure of three years and

six months.

*Audited consolidated and standalone financial statements of the Company as at and for the financial year

ended March 31, 2020 were not available as at the date of this Information Memorandum.

** 2.00% p.a. interest bearing 15,000 debentures of face value Rs. 10,00,000 each are redeemable at a premium

of 85.03% on the face value on April 23, 2022.

*** No coupon paid for the first three years. Interest on Principal for the first three years will be accumulated

to the Principal amount.

# Based on outstanding amount.

## Credit Ratings are updated as on March 31, 2020.

iv. List of top 10 debenture holders as on March 31, 2020

SN Name Number of

Debentures Amount (Rs.)

1 Life Insurance Corporation of India 70,000 70,00,00,00,000

2 SBI Life Insurance Co. Ltd 5,695 5,69,50,00,000

3 Axis Bank Limited 5,200 5,20,00,00,000

4 Aditya Birla Sun Life Insurance Company Limited 4,870 4,87,00,00,000

5 HDFC Trustee Co. Ltd. 4,305 4,30,50,00,000

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6 Kotak Credit Risk Fund 4,089 4,08,90,00,000

7 ICICI Prudential Fixed Maturity Plan 3,268 3,26,80,00,000

8 Army Group Insurance Fund 3,054 3,05,40,00,000

9 NPS Trust- A/C SBI Pension Fund Scheme 2,788 2,78,80,00,000

10 Franklin India Pension Plan 2,250 2,25,00,00,000

Total 1,05,519 1,05,51,90,00,000 * Note: The above list includes both Non-Convertible Debenture holders and Perpetual Hybrid Security

holders

v. The amount of corporate guarantee issued by the Issuer along with name of the counterparty on

behalf of whom it has been issued as on March 31, 2020

(in Rs. in crores)

Sr

No.

Name of the

Counterparty Purpose of the Security/ Guarantee Amount

1 Timken India

Limited

Guarantee given to Commissioner of Customs on behalf of

Tata Timken in respect of goods imported- Rs. 1.07 crore 1.07

2 President of

India Bank Guarantee against Advance License for Rs. 0.15 crore. 0.15

3

Jamshedpur

Continuous

Annealing and

Processing

Company

Private Limited

Five Corporate Guarantees dated June 4, 2012, June 29, 2012,

August 11, 2012, August 14, 2012 and May13, 2013 issued in

favour of The President of India, Through the Deputy

Commissioner of Customs, 15/1 Strand Road, Customs House,

Kolkata – 700001 guaranting the performance of export

obligation under the various bonds executed by Jamshedpur

Continuous Annealing & Processing Company Private

Limited.

177.18

4

ABJA

Investment Co.

Pte. Ltd.**

Corporate Guarantee dated May 3, 2013 issued in favour of

Noteholders for the due and punctual re-payment of all

amounts payable by the ABJA Investment Co. Pte. Ltd.

(Noteholders are holders of the Notes S$300,000,000 4.95%

Guaranteed Notes due 2023)

The guarantee is capped at an amount equal to 125% of the

outstanding principal amount of the Notes as detailed in

“Terms and Conditions” of the Offering Memorandum.

1,591.467*

Trust Deed dated July 31, 2014 for issue U.S.$1,000,000,000

5.95% Guaranteed Notes due 2024

The guarantee is capped at an amount equal to 125% of the

outstanding principal amount of the Notes as detailed in

“Terms and Conditions” of the Offering Memorandum.

7,560.00#

Total 9,329.867

# Guarantees given in United States Dollar, converted into INR at the rate as on March 31, 2020 i.e. 1

US $= Rs. 75.6000

* Guarantee given in Singapore Dollar, converted into INR at the rate as on March 31, 2020 i.e. 1 S$=

Rs. 53.0489

** On January 31, 2020, USD 500 Mn 4.85% ABJA bonds due were repaid.

vi. Details of Commercial Papers outstanding as March 31, 2020

(in Rs. in crores)

Name of Bank/ FI’s Amount outstanding (Rs Crs) Maturity Date

LIC Mutual Fund 300 May 26, 2020

Franklin Templeton Mutual Fund 400 May 26, 2020

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State Bank of India 650 June 3, 2020

Nippon Life Mutual Fund 500 June 3, 2020

ICICI Bank 200 June 15, 2020

ABSL Mutual Fund 1,000 June 15, 2020

Total 3,050

vii. Details of Rest of the borrowing (if any including hybrid debt like FCCB, Optionally Convertible

Debentures / Preference Shares) as on March 31, 2020

Party Name

(in case of

Facility) /

Instrument

Name

Type of

Facility /

Instrument

Amt.

Sanctioned

/ Issued

(Rs. In

crore)

Principal

Amt.

Outstand

ing

(Rs. in

crore)

Repaymen

t Date/

Schedule

Credit

Rating*

Secured/

Unsecured

Security

11.80%

Perpetual

Hybrid

Securities in

the form of

NCD

Perpetual

Hybrid

Securities

1,500 1,500 Perpetual

AA - by

CARE,

AA –

(Positive

)

by

Brickwor

k

Unsecure

d N.A.

11.50%

Perpetual

Hybrid

Securities in

the form of

NCD

Perpetual

Hybrid

Securities

775 775 Perpetual

AA - by

CARE,

AA –

(Positive

)

by

Brickwor

k

Unsecure

d N.A.

*Credit Rating as on March 31, 2020

viii. Details of all default/s and/or delay in payment of interest and principal of any kind of term loans,

debt securities and other financial indebtedness including corporate guarantees issued by the

Company, in the past 5 years

The Company has never defaulted in payment of interest and principal of any kind of term loans, debt

securities and other financial indebtedness including corporate guarantees issued by the Company, in the

past five years.

ix. Details of any outstanding borrowings taken/ debt securities issued where taken / issued (i) for

consideration other than cash, whether in whole or part, (ii) at a premium or discount, or (iii) in

pursuance of an option

Outstanding borrowings taken/ debt securities issued where taken / issued at a premium - 2.00% p.a.

interest bearing 15,000 debentures of face value Rs. 10,00,000 each are redeemable at a premium of

85.03% on the face value on April 23, 2022.

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81

(h) Details of Promoters of the Company

i. Details of Promoter and Promoter Group Holding in the Company as on March 31, 2020

Fully paid-up equity shares

Sr.

No.

Name of the

shareholders

Total No. of

equity shares

No. of shares

held in demat

form

Total

shareholding

as % of total

no of equity

shares

No. of shares

pledged

% of

shares

pledged

with

respect

to

shares

owned

Promoter

1

Tata Sons

Private

Limited

35,86,77,332 35,86,77,332 31.84 13,980,000 3.90

Promoter Group

2 Tata Motors

Limited 51,41,696 51,41,696 0.46 - -

3

Tata

Investment

Corporation

Limited

39,27,625 39,27,625 0.35 - -

4

Tata

Chemicals

Ltd.

28,90,693 28,90,693 0.26 - -

5

Ewart

Investments

Limited

20,82,364 20,82,364 0.18 - -

6

Rujuvalika

Investments

Limited*

11,68,393 11,68,393 0.10 - -

7

Tata

Industries

Limited

9,39,358 9,39,358 0.08 - -

8

Tata Motors

Finance

Limited

5,70,188 5,70,188 0.05 - -

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9 Tata Capital

Ltd. 15,660 15,660 0.00 - -

10

Titan

Company

Limited

2,349 2,349 0.00 - -

11 Sir Ratan

Tata Trust** 0 0 0.00 - -

12 Sir Dorabji

Tata Trust** 0 0 0.00 - -

Total 37,54,15,658 37,54,15,658 33.33 13,980,000 3.90

*11,68,393 Ordinary Shares held by Rujuvalika Investments Limited (a wholly owned subsidiary of Tata

Steel Limited w.e.f. May 8, 2015), do not carry any voting rights.

**During the quarter ended June 30, 2018, the two Promoter Group Companies – Sir Ratan Tata Trust and

Sir Dorabji Tata Trust has sold their entire holdings in Tata Steel Limited and hence, is reported as ‘0’.

Partly Paid Shares

Sr.

No.

Name of the

shareholders

Total No.

of equity

shares

No. of shares

held in

demat form

Total

shareholding

as % of total

no of equity

shares

No. of

shares

pledged

% of

shares

pledged

with

respect to

shares

owned

Promoter

1 Tata Sons Private

Limited 3,78,30,810 3,78,30,810 48.73 - -

Promoter Group

2 Tata Motors

Limited 3,54,599 3,54,599 0.46 - -

3

Tata Investment

Corporation

Limited

2,70,869 2,70,869 0.35 - -

4 Tata Chemicals

Ltd. 1,99,358 1,99,358 0.26 - -

5 Ewart Investments

Limited 1,43,611 1,43,611 0.18 - -

6 Tata Industries

Limited 1,03,187 1,03,187 0.13 - -

7 Tata Motors

Finance Limited 39,323 39,323 0.05 - -

8 Tata Capital Ltd. 1,080 1,080 0.00 - -

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9 Titan Company

Limited 162 162 0.00

- -

Total 3,89,42,999 3,89,42,999 50.16 - -

(i) Abridged version of latest Audited Consolidated and Standalone Financial Information (P&L

statement, Balance Sheet and Cash Flow Statement) for the last three years and auditors

qualifications, if any.–(As per Indian GAAP) and

(j) Abridged version of latest Audited / Limited Review Half Yearly Consolidated and Standalone

Financial Information (P&L statement and Balance Sheet) and auditors qualifications, if any ( As

per Ind-AS).

Not Applicable

i. Consolidated Balance Sheet as at September 30, 2019, March 31, 2019, March 31, 2018 and March 31,

2017 (as per Ind AS)

The Group has adopted Indian Accounting Standard (referred to as ‘Ind AS’) with effect from April 01, 2016

and accordingly these financial results along with the comparatives have been prepared in accordance with the

recognition and measurement principles laid down as per Ind AS 34 “Interim Financial Reporting” as

prescribed under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and

the other accounting principles generally accepted in India. Audited consolidated and standalone financial

statements of the Company as at and for the financial year ended March 31, 2020 were not available as at the

date of this Information Memorandum.

Ind-AS differs in certain respects from Indian GAAP and IFRS and therefore financial statements prepared

under Ind-AS may be substantially different from financial statements prepared under Indian GAAP

(in Rs. in crores)

Particulars

As at

September

30, 2019

As at

March 31,

2019

As at

March 31,

2018

As at

March 31,

2017

(II) ASSETS

(1) Non-current assets

(a) Goodwill on consolidation 3870.28 3997.00 4099.45 3494.73

(b) Fixed assets

(i)Property, Plant and Equipment 120854.09 118451.00 90322.78 86880.59

(ii)Capital work-in-progress 17359.25 17957.00 16159.80 15514.37

(iii)Right of use assets 8609.73

(iv)Other Intangible assets 2252.47 1994.00 1682.66 1631.23

(v)Intangible assets under

development 748.89 685.00 454.61 269.76

153694.71 143084.00 112719.30 107790.68

(c)Equity accounted investments 1964.59 1923.00 1781.22 1593.94

(d)Financial assets

(i)Other non-current investments 1108.78 1290.00 1209.28 5190.05

(ii)Trade receivables 0.00 - -

(iii)Other financial assets 1102.36 1183.00 805.25 458.64

(iv)Derivative assets 153.70 109.00 29.16 83.17

(e)Retirement benefit assets 20856.86 19964.00 20570.87 1752.64

(f)Other non-financial assets 2984.20 4655.00 2577.14 3661.99

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Particulars

As at

September

30, 2019

As at

March 31,

2019

As at

March 31,

2018

As at

March 31,

2017

(g)Non-current tax asset 1613.66 1575.00 1152.76 981.23

(h)Deferred tax assets 1447.60 809.00 1035.80 885.87

31231.75 31508.00 29161.48 14607.53

(2) Current assets

(a)Inventories 34069.74 31656.00 28331.04 24803.82

(b)Financial assets

(i)Current investments 816.60 2525.00 14908.97 5673.13

(ii)Trade receivables 10836.91 11811.00 12415.52 11586.82

(iii)Cash and bank balances 3719.06 3341.00 7937.85 4921.05

(iv)Other financial assets 732.94 1488.00 867.08 612.32

(v)Derivative assets 722.64 359.00 150.95 104.04

(c)Retirement benefit assets 0.00 4.00 2.91

(d)Other non-financial assets 3630.72 3530.00 3098.09 2207.35

(e)Current tax assets 143.89 134.00 62.28 35.08

(f)Assets held for sale 3898.48 4142.00 102.47 991.42

58570.98 58990.00 67877.16 50935.03

TOTAL ASSETS 243497.44 233582.00 209757.94 173333.24

(I) EQUITY AND LIABILITIES

(1) Shareholders' funds

(a)Share Capital 1144.94 1144.95 1144.95 970.24

(b) Hybrid Perpetual Securities 2275.00 2275.00 2275.00 2275.00

(c)Other equity 71,883.00 67,870 58,387 71883.00

(d)Non-controlling interest 2658.73 2364.46 936.52 1601.70

75303.02 71289.55 61807.14 39421.02

(2) Non-current liabilities

(a)Financial liabilities

(i)Long term borrowings 86451.09 80343.00 72789.00 64022.27

(ii)Derivative liabilities 58.82 60.00 85.00 179.98

(iii)Trade payables

(iv)Other financial liabilities 280.58 271.00 105.83 108.78

(b)Long term provisions 4011.74 4046.21 4338.24 4279.69

(c)Retirement benefit obligations 2873.13 2653.00 2516.56 2666.27

(d)Deferred income 620.09 907.00 1526.58 2057.59

(e)Other non-financial liabilities 630.08 519.00 358.16 226.51

(f)Non-current tax liabilities

(g)Deferred tax liabilities 9109.62 12460.00 10569.88 10030.08

104035.15 101259.21 92289.25 83571.17

(7) Current liabilities

(a)Financial liabilities

(i)Short term borrowings 16294.54 10802.00 15884.98 18328.10

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Particulars

As at

September

30, 2019

As at

March 31,

2019

As at

March 31,

2018

As at

March 31,

2017

(ii)Derivative liabilities 243.34 417.00 468.79 673.67

(iii)Trade payables 19912.44 21717.00 20413.81 18574.46

(iv)Other financial liabilities 15866.95 16738.00 9791.78 6315.51

(b)Short term provisions 1406.34 1248.72 1269.64 987.38

(c)Retirement benefit obligations 143.09 121.00 110.36 95.20

(d)Deferred income 28.24 17.00 6.21 22.52

(e)Other non-financial liabilities 7396.62 7912.00 6932.26 4315.27

(f)Current tax liabilities 1068.41 636.00 783.47 739.18

(g)Liabilities held for sale 1799.30 1426.00 0.11 289.76

64159.27 61034.72 55661.41 50341.05

TOTAL EQUITY AND LIABILITIES 243497.44 233582.00 209757.94 173333.24

ii. Consolidated Statement of Profit and Loss for the nine months ended December 31, 2019

and for the years ended March 31,2019, March 31,2018 and March 31,2017 (as per Ind AS)

(in Rs. in crores)

Particulars

For nine

months

ended

December

31, 2019

For the year

ended

March 31,

2019

For the

year ended

March 31,

2018

For the year

ended

March 31,

2017

(1) REVENUE

(a)Revenue from operations 106,046.70 157,668.99 124,109.69 117,419.94

(b)Other Income 527.58 1,420.58 881.10 527.47

Total Revenue [1(a) + 1(b)] 106,574.28 159,089.57 124,990.79 117,947.41

(2) EXPENSES

(a)Raw materials consumed 41,017.41 54,309.00 40,762.00 32,418.09

(b)Purchases of finished, semi-

finished and other products 3,726.92 6,568.00 5,375.00 11,424.94

(c)Changes in stock of finished

goods, work-in-progress and stock-

in-trade

975.23 (97.00) 99.00 (4,538.13)

(d)Employee benefit expense 13,798.58 18,759.00 16,970.00 17,252.22

(e)Depreciation and amortisation

expense 5,608.38 7,342.00 5,742.00 5,672.88

(f)Finance costs 6,216.61 7,660.00 5,455.00 5,072.20

(g)Other expenses 33,712.36 50,410.00 40,471.00 44,619.71

105,055.49 144,951.00 114,874.00 111,921.91

Total Expenses 105,055.49 143,287.00 113,873.00 111,157.20

Share of profit / (loss) of joint

ventures and associates 95.14 224.70 239.00 7.65

(3) Profit/(loss) before exceptional

items and tax [1 - 2] 1,613.93 16,027.27 11,356.79 6,797.86

(4) Exceptional items (346.20) (121.00) 9,599.00 (4,324.23)

(a)Profit / (Loss)on sale of non-

current investments 148.99 180.00 22.70

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86

Particulars

For nine

months

ended

December

31, 2019

For the year

ended

March 31,

2019

For the

year ended

March 31,

2018

For the year

ended

March 31,

2017

(b)Provision for diminution in value

of investments 1.07 (172.00) (27.00) (125.45)

(c)Provision for impairment of non-

current assets (55.71) (10.00) (903.00) (267.93)

(d) Profit on sale of non-current

assets 85.87

(e) Provision for demands and claims (192.24) (329.00) (3,214.00) (218.25)

(f) Employee Separation

Compensation (106.33) (35.00) (108.00) (207.37)

(g) Restructuring and other provision (163.93) 245.00 13,851.00 (3,613.80)

(h) Fair value gain/(loss) on

preference share investments (net) 21.95

(5) Profit/(loss) before tax [3 + 4] 1,267.73 15,906.27 20,955.79 2,473.63

(6) Tax expense/(credit) (2,305.13) 6,718.00 3,392.00 2,778.01

(7) Profit/(loss) after tax [5 - 6] 3,572.86 9,188.27 17,563.79 (304.38)

(8)Profit/(loss) after tax from

discontinued operations (785.05) (89.00) 199.00 (3,864.00)

(9) Minority Interest (250.07) (1,120.00) 4,328.00 72.23

(10) Profit/(loss) for the period [7 +

8 - 9] 3,037.88 10,219.27 13,434.79 (4,240.61)

iii. Consolidated Cash Flow statement for the half year ended September 30, 2019 and for the

years ended March 31,2019, March 31,2018 and March 31,2017 (as per Ind AS)

Particulars

For the

half year

ended

September

30, 2019

(Audited)

For the year

ended

March 31,

2019

(Audited)

For the year

ended

March 31,

2018

(Audited)

For the year

ended

March 31,

2017

(Audited)

A.Cash Flow from Operating

Activities:

Profit/(Loss) before tax 1093.15 15807.00 21168.20 (1382.55)

Adjustments for:

Depreciation & amortization expense 4333.83 7579.00 5961.66 5689.77

Income from non-current investments (20.97) (26.00) (68.25) (57.17)

(Profit)/Loss on sale of non-current

investments (0.97)

(Profit)/Loss on assets sold/discarded 10.12 (266.00) 49.29 (0.15)

Provision for diminution in value of

investments

Provision for impairment of non-

current assets

Interest and income from current

investments (227.56) (1038.00) (929.15) (517.62)

Finance costs 3719.61 7742.00 5501.79 5072.20

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Particulars

For the

half year

ended

September

30, 2019

(Audited)

For the year

ended

March 31,

2019

(Audited)

For the year

ended

March 31,

2018

(Audited)

For the year

ended

March 31,

2017

(Audited)

(Gain)/Loss on cancellation of

forwards, swaps and options (14.24) (37.00) 79.33 67.95

Exchange (gain)/loss on revaluation of

foreign currency loans and swaps 1539.11 (1151.00) (1376.77) 1422.50

(Profit)/Loss on disposal of

discontinued operation - (5.15) 3085.32

Share of profit or loss of joint ventures

and associates (74.66) (222.00) (174.10) (7.65)

Other non-cash expenditure 211.16 (684.45) (420.59) (114.42)

Exceptional (income) / expenditure 17.56 136.00 (9599.12) 4324.23

Operating Profit before Working

Capital Changes 10587.11 27839.55 20187.14 17581.44

Adjustments for:

Trade and other receivables 1347.17 (115.00) (208.94) (548.00)

Inventories (2311.61) (1069.00) (1595.43) (8243.17)

Trade Payables and other liabilities (2691.06) 3774.00 (7471.16) 3876.75 (3655.50) 2590.00 (9275.53) (4914.42)

Cash Generated from Operations 6931.61 30429.55 10911.61 12667.02

Direct tax paid (825.31) (5094.00) (2888.22) (1842.66)

Net Cash Flow from/(used in)

Operating Activities 6106.30 25335.55 8023.39 10824.36

B.Cash Flow from Investing

Activities:

Purchase of fixed assets(1) (4984.77) (9091.00) (7478.50) (7715.64)

Sale of fixed assets 101.83 467.00 179.05 288.72

Purchase of non-current investments (17.85) (490.00) (85.67) (168.73)

Acquisition of subsidiaries/joint

ventures/undertakings (4433.17) (35282.00) (255.00)

Disposal of subsidiaries/joint

ventures/undertakings 356.91 179.00 34.22 (1081.36)

Sale of non-current investments 112.18 463.00 3898.74 91.24

Asset held for Sale

Fixed/restricted deposits with banks

(placed)/realized (225.12) 418.00 (85.33) (27.22)

(Purchase)/sale of current investments

(net) 1776.68 13093.00 (8555.08) (692.63)

Inter-corporate deposits (net) (1.16) 18.39 (43.66) 4.48

Interest income received 132.64 175.43 254.50 140.12

Dividend received 82.06 148.34 111.10 85.43

Principal receipts under sublease 29.20

Net Cash flow from/(used in)

Investing Activities (7070.57) (29900.84) (12025.63) (9075.59)

C.Cash Flow from Financing

Activities:

Issue of equity shares 188.30 (6.03) 9087.23 0.01

Issue/(Redemption) of Preference

Shares

Capital contributions received

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Particulars

For the

half year

ended

September

30, 2019

(Audited)

For the year

ended

March 31,

2019

(Audited)

For the year

ended

March 31,

2018

(Audited)

For the year

ended

March 31,

2017

(Audited)

Contributions received from minority 651.89

Proceeds from borrowings 14718.88 42763.90 24161.36 19484.55

Repayment of borrowings (8031.62) (34522.72) (19936.13) (16602.29)

Amount received/(paid) on

cancellation of forwards, swaps and

options

(64.56) (66.64) (79.86) (165.11)

Distribution on Hybrid Perpetual

Securities (133.42) (265.39) (267.10) (265.70)

Expenses (incurred)/reimbursed on

issue of equity instruments

Interest paid(1) (3318.01) (7151.93) (5145.57) (4732.80)

Dividend paid (1506.55) (1186.20) (982.35) (791.32)

Tax on dividend paid (308.67) (237.69) (197.64) (158.52)

Payment of lease obligations (486.46)

Net Cash Flow from/(used in)

Financing Activities 1057.89 (672.70) 6639.94 (2579.29)

Net Increase/(decrease) in Cash and

Cash Equivalents 93.62 (5237.99) 2637.70 (830.52)

Opening Cash and Cash Equivalents 3270.30 8180.00 4850.48 6076.94

Effect of exchange rate on

translation of foreign currency (10.79) 34.00 295.32 (414.06)

Cash and Cash Equivalent balances 3353.13 2976.01 7783.50 4832.36

Closing Cash and Cash Equivalents 3353.13 2975.53 7783.50 4832.29

iv. Standalone Balance Sheet as at September 30, 2019, March 31,2019, March 31,2018 and March 31,

2017 (as per Ind-AS)

(in Rs. in crores)

Particulars

As at

September

30, 2019

As at March

31, 2019

As at March

31, 2018

As at March

31, 2017

Audited Audited Audited Audited

A ASSETS

(1) Non-current assets

(a) Property, plant and

equipment 67,447.83 70,416.82 70,942.90 71,778.97

(b) Capital work-in-progress 6,415.39 5,686.02 5,641.50 6,125.35

(c) Right of use assets 4,059.32 0.00 0.00 0.00

(d) Intangible assets 764.90 805.20 786.18 788.18

(e) Intangible assets under

development 144.44 110.27 31.77 38.61

(f)

Investments in

subsidiaries, associates

and joint ventures

5,962.22 4,437.76 3,666.24 3,397.83

(g) Financial assets

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Particulars

As at

September

30, 2019

As at March

31, 2019

As at March

31, 2018

As at March

31, 2017

Audited Audited Audited Audited

(i) Non-current

investments 34,457.65 34,491.49 5,970.32 4,958.07

(ii) Other financial

assets 315.67 550.86 246.84 291.58

(h) Other non-current assets 1,883.72 2,535.98 2,140.84 3,108.67

(i) Non Current tax assets 1,461.54 1,428.38 1,043.84 867.75

Sub-total - Non current assets 122,912.68 120,462.78 90,470.43 91,355.01

(2) Current assets

(a) Inventories 11,821.49 11,255.34 11,023.41 10,236.85

(b) Financial assets

(i) Current

Investments 0.09 477.47 14,640.37 5,309.81

(ii) Trade receivables 1,405.96 1,363.04 1,875.63 2,006.52

(iii) Cash and cash

equivalents 1,467.91 544.85 4,588.89 905.21

(iv) Other balances

with banks 282.09 173.26 107.85 65.10

(v) Other financial

assets 654.10 1,011.64 595.71 348.46

(c) Other current assets 2,138.12 2,209.98 1,812.05 1,238.45

Sub-total -

Current assets 17,769.76 17,035.58 34,643.91 20,110.40

TOTAL - ASSETS 140,682.44 137,498.36 125,114.34 111,465.41

B EQUITY AND

LIABILITIES

(1) Equity

(a) Equity share capital 1,146.12 1,146.12 1,146.12 971.41

(b) Hybrid perpetual

securities 2,275.00 2,275.00 2,275.00 2,275.00

(c) Other equity 72,670.82 69,308.59 60,368.72 48,687.60

Sub-total - Total Equity 76,091.94 72,729.71 63,789.84 51,934.01

(2) Non-current liabilities

(a) Financial liabilities

(i) Long term

borrowings 28,724.90 26,651.19 24,568.95 24,694.37

(ii) Other financial

liabilities 225.69 184.89 89.86 197.55

(b) Long term provisions 1,902.89 1,918.18 1,961.21 2,024.74

(c) Retirement benefit

obligations 1,540.91 1,430.35 1,247.73 1,484.21

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Particulars

As at

September

30, 2019

As at March

31, 2019

As at March

31, 2018

As at March

31, 2017

Audited Audited Audited Audited

(d) Other non-current

liabilities 1,026.41 1,183.39 1,590.32 1,962.93

(e) Deferred tax liabilities 5,621.04 7,807.00 6,259.09 6,111.27

Sub-total - Non current liabilities 39,041.84 39,175.00 35,717.16 36,475.07

(3) Current liabilities

(a) Financial liabilities

(i) Short term

borrowings 1,507.10 8.09 669.88 3,239.67

(ii) Trade payables 11,008.30 10,969.56 11,242.75 10,717.44

(iii) Other financial

liabilities 5,221.19 7,011.92 6,557.81 4,332.52

(b) Short term provisions 692.74 778.23 735.28 700.60

(c) Retirement benefit

obligations 99.12 102.12 90.50 56.58

(d) Other current liabilities 6,263.53 6,365.59 5,857.06 3,543.80

(e) Current tax liabilities 756.68 358.14 454.06 465.72

Sub-total - Current liabilities 25,548.66 25,593.65 25,607.34 23,056.33

TOTAL - EQUITY AND

LIABILITIES 140,682.44 137,498.36 125,114.34 111,465.41

v. Standalone Statement of Profit and Loss for the nine months ended December 31, 2019 and

for the years ended March 31, 2019, March 31, 2018 and March 31,2017 (as per Ind AS)

Particulars

Nine

months

ended on

December

31, 2019

Financial

year

ended on

March 31,

2019

Financial

year

ended on

March 31,

2018

Financial

year

ended on

March 31,

2017

1 Revenue from operations

a) Gross sales / income from operations 45,116.67 68,923.36 59,305.08 52,564.93

b) Other operating income 1,107.87 1,687.56 1,214.29 696.03

Total revenue from operations [ 1(a) +

1(b) ] 46,224.54 70,610.92 60,519.37 53,260.96

2 Other income 332.76 2,405.08 763.66 414.46

3 Total income [ 1 + 2 ] 46,557.30 73,016.00 61,283.03 53,675.42

4 Expenses

a) Raw materials consumed 13,472.56 19,840.29 16,877.63 12,496.78

b) Purchases of finished, semi-finished

steel & other products 1,159.84 1,807.85 647.21 881.18

c)

Changes in inventories of finished

goods, work-in-progress and stock-

in-trade

415.66 (554.33) 545.36 (1,329.65)

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Particulars

Nine

months

ended on

December

31, 2019

Financial

year

ended on

March 31,

2019

Financial

year

ended on

March 31,

2018

Financial

year

ended on

March 31,

2017

d) Employee benefits expense 3,665.79 5,131.06 4,828.85 4,605.13

e) Finance costs 2,227.01 2,823.58 2,810.62 2,688.55

f) Depreciation and amortisation

expense 2,917.86 3,802.96 3,727.46 3,541.55

g) Excise duty 0.00 0.00 1,358.58 5,117.18

g) Other expenses 16,297.80 23,823.11 20,482.78 19,614.39

Total expenses [ 4(a) to 4(g) ] 40,156.52 56,674.52 51,278.49 47,615.11

5 Profit / (Loss) before exceptional items

& tax [ 3 - 4 ] 6,400.78 16,341.48 10,004.54 6,060.31

6 Exceptional items :

a) Profit / (Loss) on sale of non current

investments 0.00 262.28 0.00

b) Provision for impairment of

investments / doubtful advances (7.73) (12.53) (62.92) (170.87)

c) Restructuring and other provisions 0.00 0.00 (135.58)

d) Provision for demands and claims (192.24) (328.64) (3,213.68) (218.25)

e) Employee separation compensation (106.33) (35.34) (89.69) (178.68)

f) Fair value gain/(loss) on preference

shares investments (net) 612.20

Total exceptional items [ 6(a) to 6(f) ] 305.90 (114.23) (3,366.29) (703.38)

7 Profit / (Loss) before tax [ 5 + 6 ] 6,706.68 16,227.25 6,638.25 5,356.93

8 Tax Expense

a) Current tax 1,279.28 6,297.11 1,586.78 1,400.54

b) Deferred tax (1,753.23) (603.05) 881.92 511.84

Total tax expense [ 8(a) + 8(b) ] (473.95) 5,694.06 2,468.70 1,912.38

9 Net Profit / (Loss) for the period [ 7 - 8

] 7,180.63 10,533.19 4,169.55 3,444.55

10 Other comprehensive income

A (i) Items that will not be

reclassified to profit or loss (197.22) (40.68) 14.63 601.22

(ii)

Income tax relating to items

that will not be reclassified to

profit or loss

27.50 (2.63) (82.24) 75.37

B (i) Items that will be reclassified

to profit or loss 7.23 (10.62) 9.96 (1.22)

(ii)

Income tax relating to items

that will be reclassified to

profit or loss

(1.82) 3.71 (3.47) 0.42

Total other comprehensive income (164.31) (50.22) (61.12) 675.79

11 Total Comprehensive Income for the

period [ 9 + 10 ] 7,016.32 10,482.97 4,108.43 4,120.34

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Particulars

Nine

months

ended on

December

31, 2019

Financial

year

ended on

March 31,

2019

Financial

year

ended on

March 31,

2018

Financial

year

ended on

March 31,

2017

12 Paid-up equity share capital [Face value

Rs. 10 per share] 1,146.13 1,146.12 1,146.12 971.41

13 Paid-up debt capital 14,346.41 10,345.79 10,175.70

13 Reserves excluding revaluation reserves 69,308.59 60,368.72 48,687.60

14 Hybrid perpetual securities 2,275.00 2,275.00 2,275.00

15 Debenture redemption reserve 2,046.00 2,046.00 2,046.00

14 Earnings per equity share

Basic earnings per share (not annualised)

- in Rupees

(after exceptional items)

61.35 90.41 38.57 31.74

Diluted earnings per share (not

annualised) - in Rupees

(after exceptional items)

61.35 90.40 38.56 31.74

15 Net Debt Equity Ratio 0.42 0.15 0.44

16 Debt Service Coverage Ratio 6.23 5.73 2.72

17 Interest Service Coverage Ratio 9.57 7.03 4.21

vi. Standalone Cash Flow statement for the half year ended 30 September 2019 and for the

years ended 31 March 2019, 31 March 2018 and 31 March 2017 (as per Ind AS)

(in Rs. in crores)

Particulars Six months ended on

September 30, 2019

Year ended on March

31, 2019

Year ended on March

31, 2018

(A) Cash flows from

operating activities:

Profit before tax 4,291.94 16,227.25 6,638.25

Adjustments for:

Depreciation and

amortization expense 1,937.99 3,802.96 3,727.46

Dividend income (87.23) (96.25) (88.57)

(Gain)/loss on sale of

property, plant and

equipment including

intangible assets (net

of loss on assets

scrapped/written off)

4.94 1.42 40.48

Exceptional

(income)/expenses 43.33 114.23 3,366.29

(Gain)/loss on

cancellation of

forwards, swaps and

options

(14.24) (36.95) 79.33

Interest income and

income from current (73.31) (2,273.30) (788.38)

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Particulars Six months ended on

September 30, 2019

Year ended on March

31, 2019

Year ended on March

31, 2018

investments and

guarantees

Finance costs 1,443.14 2,823.58 2,810.62

Foreign exchange

(gain)/loss 10.33 (1.27) (88.17)

Other non-cash items (382.03) (612.79) (588.33)

2,882.92 3,721.63 8,470.73

Operating profit

before changes in

non-current/current

assets and liabilities

7,174.86 19,948.88 15,108.98

Adjustments for:

Non-current/current

financial and other

assets

326.55 (611.22) 456.70

Inventories (562.31) (214.60) (784.63)

Non-current/current

financial and other

liabilities/provisions

42.45 602.59 (487.09)

(193.31) (223.23) (815.02)

Cash generated from

operations 6,981.55 19,725.65 14,293.96

Income taxes paid (683.16) (4,532.54) (2,502.51)

Net cash from/(used

in) operating

activities

6,298.39 15,193.11 11,791.45

(B) Cash flows from

investing activities:

Purchase of capital

assets (1,954.52) (3,679.86) (2,527.46)

Sale of capital assets 6.13 18.94 13.28

Purchase of

investments in

subsidiaries

(1,301.20) (29,076.49) (5,018.88)

Purchase of other non-

current investments (17.85) (403.02)

Sale of other non-

current investments - 306.63 3,877.78

(Purchase)/sale of

current investments

(net)

517.32 14,759.69 (8,650.92)

Loans given - (18,908.41) (622.68)

Repayment of loans

given 1.75 18,914.72 487.61

Fixed/restricted

deposits with banks

(placed)/realised

(110.28) (78.29) (13.32)

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Particulars Six months ended on

September 30, 2019

Year ended on March

31, 2019

Year ended on March

31, 2018

Interest and guarantee

commission received 80.37 1,699.86 92.67

Dividend received

from subsidiaries 34.89 39.38 30.31

Dividend received

from associates and

joint ventures

34.20 38.62 41.06

Dividend received

from others 18.14 18.25 17.20

Net cash from/(used

in) investing

activities

(2,691.05) (16,349.98) (12,273.35)

(C) Cash flows from

financing activities:

Proceeds from issue

of equity shares (net

of issue expenses)

- (6.03) 9,087.23

Proceeds from

borrowings 2,816.26 5,884.67 2,343.84

Payment of

borrowings (2,266.02) (4,448.06) (2,850.24)

Payment of lease

obligations (132.15) (89.25) (108.14)

Amount

received/(paid) on

utilisation/cancellation

of derivatives

(2.49) 15.55 (110.72)

Distribution on hybrid

perpetual securities (133.42) (265.39) (267.10)

Interest paid (1,179.09) (2,607.88) (2,769.66)

Dividend paid (1,489.66) (1,145.92) (971.22)

Tax on dividend paid (297.71) (224.86) (188.41)

Net cash from/(used

in) financing

activities

(2,684.28) (2,887.17) 4,165.58

Net

increase/(decrease)

in cash and cash

equivalents

923.06 (4,044.04) 3,683.68

Opening cash and

cash equivalents 544.85 4,588.89 905.21

Closing cash and

cash equivalents 1,467.91 544.85 4,588.89

(k) Any material event/ development or change having implications on the financials/credit quality (e.g.

any material regulatory proceedings against the Issuer/promoters, tax litigations resulting in

material liabilities, corporate restructuring event etc.) at the time of issue which may affect the issue

or the investor’s decision to invest / continue to invest in the debt securities.

Except as stated under “Issuer Information—Recent Developments” and “Risk Factors”, no material event/

development or change has occurred between March 31, 2019 and date of Issue which may affect the Issue

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95

or the Debenture holders’ decision to invest / continue to invest in the debt securities.

(l) The names of the debenture trustee(s) shall be mentioned with statement to the effect that debenture

trustee(s) has given his consent to the Issuer for his appointment under regulation 4 (4) and in all

the subsequent periodical communications sent to the holders of debt securities.

IDBI Trusteeship Services Limited has been appointed as Debenture Trustee for the proposed Issue. The

Debenture Trustee has given their consent to the Issuer for its appointment and a copy of the consent letter

is enclosed as Annexure 1 to this Disclosure Document. The Company has entered into a Trusteeship

Agreement dated May 15, 2020 with the Debenture Trustee and shall enter into a Debenture Trust Deed

with the Debenture Trustee, as required under applicable laws, inter-alia, specifying the powers,

authorities and obligations of the Company and the Debenture Trustee in respect of the Debentures.

The Debenture holders shall, by signing the Application Form and without any further act or deed, be

deemed to have irrevocably given their consent to and authorised the Debenture Trustee or any of their

Agents or authorised officials to do, inter alia, all such acts, deeds and things necessary in respect of or

relating to the security to be created for securing the Debentures being offered in terms of this Disclosure

Document. All rights and remedies under the Debenture Trust Deed and Trusteeship Agreement and/or

other documents shall rest in and be exercised by the Debenture Trustee without having it referred to the

Debenture holders. Any payment made by the Company to the Debenture Trustee on behalf of the

Debenture holder(s) shall discharge the Company pro tanto to the Debenture holder(s). No Debenture

holder shall be entitled to proceed directly against the Company unless the Debenture Trustee, having

become so bound to proceed, fails to do so.

The Debenture Trustee will protect the interest of the Debenture holders in the event of default by the

Company in regard to timely payment of interest and Redemption Amount.

(m) Credit Rating of Debentures

India Ratings And Research Private Limited (India Ratings) has assigned “Ind AA” and Credit Analysis

& Research Limited (CARE Ratings) has assigned “CARE AA” (pronounced as Double A) for the Issue

of Debentures.

This indicates “Instruments with this rating are considered to have high degree of safety regarding timely

servicing of financial obligations”. Such instruments carry very low credit risk with respect to timely

payment of interest and principal on the instrument. The rating is not a recommendation to buy, sell or

hold Debentures and investors should take their own decision. The rating may be subject to suspension,

revision or withdrawal at any time by the assigning Credit Rating Agency. The Credit Rating Agency has

a right to revise, suspend or withdraw the rating at any time on the basis of factors such as new information

or unavailability of information or other circumstances which the Credit Rating Agency believes may have

an impact on its rating.

The rating letter as released by Credit Rating Agencies are attached as Annexure 2A and Annexure 2B to

this document.

(n) Guarantee or comfort for the Debentures

The Debentures are not backed by any guarantee or letter of comfort or any other document / letter with

similar intent by any party.

(o) Consent from Debenture Trustee

Copy of consent letter from the Debenture Trustee IDBI Trusteeship Services Limited is attached as

Annexure

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(p) Listing of Debentures

The Debentures are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE,

(“Designated Stock Exchange”). The Company has obtained In-principle approval from BSE.

(q) Other Details

i. DRR creation- relevant regulations and applicability

In accordance with Section 71 of the Act and applicable rules and notifications thereafter, the

Company would not be crediting/transferring any amount to the DRR in respect of the proposed

Debenture Issue.

ii. Issue/ instrument specific regulations – relevant details

1) Companies Act, 2013 and the rules and regulations framed thereunder (as amended from time to

time).

2) Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (as

amended from time to time).

3) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time

to time).

Governing Law and Provisions

The Debentures offered are subject to provisions of the Companies Act, 2013, Securities Contract Regulation

Act, 1956, terms of this Disclosure Document, instructions contained in the Application Form and other terms

and conditions as may be incorporated in the Trusteeship Agreement and / or Debenture Trust Deed. Over and

above such terms and conditions, the Debentures shall also be subject to the applicable provisions of the

Depositories Act, 2018 and the laws as applicable, guidelines, notifications and regulations relating to the

allotment and issue of capital and listing of securities issued from time to time by Securities and Exchange

Board of India (SEBI), concerned Stock Exchange or any other authorities and other documents that may be

executed in respect of the Debentures.

Application Process

Please refer to the section titled Application Procedure for further details.

Particulars of the dates of, and parties to all material contracts, agreements involving financial

obligations of the Issuer

Material Contracts - By very nature and volume of its business, the Company is involved in a large number

of transactions involving financial obligations and therefore it may not be possible to furnish details of all

material contracts and agreements involving financial obligations of the Company. However, the contracts

referred to in Para A below (not being contracts entered into in the ordinary course of the business carried on

by the Company) which are or may be deemed to be material have been entered into by the Company. Copies

of these contracts together with the copies of documents referred to in Para B may be inspected at the

Registered Office of the Company between 10.00 a.m. and 12.00 noon on any working day until the Issue

Closing Date.

Para A:

▪ Letter appointing TSR Darashaw Consultants Private Limited (formerly known as TSR Darashaw

Limited) as Registrars and Transfer Agents (“Registrar”).

▪ Letter appointing IDBI Trusteeship Services Limited, as trustee for the benefit of the Debenture holders

(“Debenture Trustee”).

▪ Trusteeship Agreement.

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Para B:

▪ Memorandum and Articles of Association of the Company.

▪ Resolution of the Board of Directors dated August 13, 2018 authorising issue of Debentures offered

under terms of this Disclosure Document.

▪ Consent letter from IDBI Trusteeship Services Limited for acting as Debenture Trustee for and on behalf

of the Debenture holders.

▪ Consent letter from TSR Darashaw Consultants Private Limited (formerly known as TSR Darashaw

Limited) for acting as Registrars to the Issue.

▪ Application made to BSE Limited for grant of in-principle approval for listing of Debentures.

▪ Letter from BSE Limited conveying its in-principle approval for listing of Debentures.

▪ Letter from India Ratings And Research Private Limited (India Ratings) and Credit Analysis & Research

Limited (CARE Ratings) for the issue of Debentures conveying the credit rating for the Debentures of the

Company.

▪ Trusteeship Agreement dated May 15, 2020 entered into between IDBI Trusteeship Services Limited and

the Company.

▪ Tripartite Agreement between the Company, National Securities Depository Limited (“NSDL”) and the

Registrar for the Issue of Debentures in dematerialised form.

▪ Tripartite Agreement between the Company, Central Depository Services (India) Limited (“CDSL”) and

the Registrar for the Issue of Debentures in dematerialised form.

▪ Annual Reports of the Company for last three years.

▪ Auditor’s Report in respect of the financial statements of the Company for last three years.

Issue Size and Nature of Instrument

The Company proposes to issue 8.25% per annum Coupon, Unsecured, Redeemable, Rated, Listed, Non-

Convertible Debentures with a Face Value of Rs.10,00,000 each aggregating to Rs. 1,000 crores (“Issue Size”),

by way of a Private Placement. For Details of the issue, please refer “Issue Details” in this Disclosure

Document.

Details of utilisation of Issue proceeds

The proceeds of the issue will be used in accordance with applicable laws for general business purpose

including long term working capital requirements, capital expenditure and repayment/prepayment of existing

loans. The proceeds will, however, not be used for investments in equity/capital market, speculative activity,

acquisition of land, real estate purpose, acquisitions and on-lending.

Face Value, Issue Price, Effective Yield for Investor

Each Debenture has a face value of Rs.10,00,000 and is issued at par i.e. for Rs.10,00,000. Since there is no

premium or discount on either issue price or on redemption value of the Debenture, the effective yield for the

investors held to maturity is same as the coupon rate on the Debentures (“Coupon Rate”).

Minimum Subscription

As the current issue of Debentures is being made on private placement basis, the requirement of minimum

subscription shall not be applicable and therefore the Company shall not be liable to refund the issue

subscription(s)/ proceed(s) in the event of the total issue collection falling short of Issue Size or certain

percentage of Issue Size.

Deemed Date of Allotment

All the benefits under the Debentures, including but not limited to the payment of Coupon, will accrue to the

Investor from the deemed date of allotment. The deemed date of allotment for the Issue is May 20, 2020.

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Date of Allotment

The Date of Allotment shall be within five days from the Deemed Date of Allotment. The Company shall allot

the Debentures and issue and credit the letter of allotment in relation to the Debentures in the beneficiary

account of the investor(s) with NSDL / CDSL / Depository Participant (“Beneficiary Account”).

Depository Arrangements

The Company has appointed TSR Darashaw Consultants Private Limited (formerly known as TSR Darashaw

Limited), as the Registrar for the Issue. The Company has made necessary depository arrangements with

NSDL and CDSL for the Issue and holding of Debentures in the dematerialised form by investors. In this

context, the Company has signed tripartite agreements as under:

a. Tripartite Agreement dated November 6, 1996 between the Company, the Registrar and NSDL for offering

Depository option to the investors.

b. Tripartite Agreement dated September 22, 1999 between the Company, the Registrar and CDSL for

offering Depository option to the investors.

Listing

The Debentures are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE Limited.

The Company shall comply with the requirements of the Listing Regulations, to the extent applicable to it, on

a continuous basis.

Coupon Rate

The Coupon Rate on the Debentures is 8.25% per annum payable annually.

Security

Unsecured

Security Creation

Not applicable, as the Debentures are unsecured.

Permission from the prior creditors for creation of pari passu charge

Not applicable

Market Lot

Not applicable

Interest on Application Money

Interest on Application Money at the Coupon Rate (subject to deduction of tax at source at the rate prevailing

from time to time under the provisions of the Income Tax Act, 1961, or any other statutory modification or re-

enactment thereof) will be paid to the applicants. Such interest shall be paid from the date of receipt of money

by the Company up to the date immediately preceding the Deemed Date of Allotment and shall be sent /paid

along with the letter(s) of allotment/ intimation of allotment. Payment of interest will be made by way of Cheque

/ DD / RTGS / NEFT / Electronic mode in the name of the respective applicant. No Interest on Application

Money shall be paid to the applicants whose applications are rejected. In the case of applicants whose

applications are accepted in part, no interest shall be paid on the portion of the application money refunded to

them.

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Debentures in Dematerialized Form

The Company is issuing the Debentures only in dematerialized form and hence no Debentures are being issued

in physical form in terms of the Disclosure Document. The Company has entered in to Depository Arrangements

with NSDL and CDSL for dematerialization of the Securities.

Applicants have to mention their Depository Participant’s name, DP-ID and Beneficiary Account Number/Client

ID in the appropriate place in the Application Form. Debentures of successful allottee(s) having Depository

Account shall be credited to their Depository Account.

Coupon, Redemption Amount or other benefits with respect to the Debentures would be paid to those Debenture

holders whose names appear on the list given by the Depository to the Issuer at the close of the Record Date.

Undertaking- Common Form of Transfer

The Debentures shall be transferred subject to and in accordance with the rules and procedures as prescribed by

the NSDL / CDSL / Depository Participant of the transferor / transferee and any other applicable laws and rules

notified in respect thereof.

The normal procedure followed for transfer of securities held in the dematerialized form shall be followed for

transfer of the Debentures, issued in terms of the Disclosure Document and held in electronic form. The seller

should give delivery instructions containing details of the buyer’s depository account to his Depository

Participant.

The transferee(s) should ensure that the transfer formalities are completed prior to the Record Date. In the

absence of the same, interest will be paid / redemption will be made to the person, whose name appears in the

records of the Depository. In such cases, claims, if any, by the transferee(s) would need to be settled with the

transferor(s) and not with the Company.

The Company is issuing the Debentures only in the dematerialized form and hence there is no physical holding

of the Debentures being issued in terms of the Disclosure Document. The Company undertakes that it shall use

a common form / procedure for transfer of the Debentures issued under the terms of the Disclosure Document,

if at a later stage there is some holding in the physical form due to the Depository giving re-materialization

option to any investor.

Joint-Holders

Where two or more persons are holders of any Debenture(s), they shall be deemed to hold the same as joint

tenants with benefits of survivorship in the same manner and to the same extent and be subject to the same

restrictions and limitations as in the case of the existing equity shares of the Company, subject to other provisions

contained in the Articles of Association of the Company.

Mode of Transfer

The Debentures shall be transferable and transmittable in the same manner and to the same extent and be subject

to the same restrictions and limitations as in the case of the existing equity shares of the Company. The

provisions relating to transfer and transmission, nomination and other related matters in respect of equity shares

of the Company, contained in the Articles of Association of the Company, shall apply mutatis mutandis to the

transfer and transmission of the Debentures and nomination in this respect.

Succession

In the event of demise of the sole holder of the Debentures, the Company will recognize the executor or

administrator of the deceased Debenture holder, or the holder of succession certificate or other legal

representative as having title to the Debentures. The Company shall not be bound to recognize such executor,

administrator or holder of the succession certificate, unless such executor or administrator obtains probate or

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letter of administration or such holder is the holder of succession certificate or other legal representation, as the

case may be, from a Court in India having jurisdiction over the matter. The Directors of the Company may, in

their absolute discretion, where they think fit, dispense with production of probate or letter of administration or

succession certificate or other legal representation, in order to recognize such holder as being entitled to the

Debentures standing in the name of the deceased Debenture holder on production of sufficient documentary

proof and / or indemnity.

Record Date

The Record date for the Debentures shall be 15 days prior to the date of each of the Coupon Payment Date and/or

the Redemption Date, as the case may be (“Record Date”).

In case the Record Date falls on non-Business Day, the Business Day prior to the said non-Business Day will

be considered as the Record Date.

Coupon and/or Redemption Amount shall be paid to the person whose name appears as sole / first in the register

of Debenture holders at the close of the Record Date. In the event of the Company not receiving any notice of

transfer at least 15 days before the respective due date of payment of interest and at least 15 days prior to the

Redemption Date, as the case may be, the transferees of the Debentures shall not have any claim against the

Company in respect of interest and/or Redemption Amount so paid to the registered Debenture holders.

In case of those Debentures for which the beneficial owner is not identified by the Depository at the close of the

Record Date, the Company would keep in abeyance the payment of interest or other benefits, till such time that

the beneficial owner is identified by the Depository and conveyed to the Company, whereupon the interest or

benefits will be paid to the beneficiaries, as identified, within a period of 30 days from the date of such

notification by the Depository.

List of Debenture Holders / Beneficiaries

The Company shall request the Depository to provide a list of Debenture holders at the close of the Record Date.

This shall be the list, which shall be considered for payment of Coupon or Redemption Amount, as the case may

be.

Interest on Debentures

The Debentures shall carry interest at Coupon Rate (subject to deduction of tax at source at the rates prevailing

from time to time under the provisions of the Income Tax Act, 1961, or any other statutory modification or re-

enactment thereof). The interest shall be payable at Coupon Payment Date annually through the Tenor of the

Debentures.

Interest on Debentures will be paid to the Debenture holders as per the beneficiary list provided by the

Depository at the close of the Record Date.

Payment will be made by way of Cheque / DD / RTGS / NEFT / Electronic mode and any other prevailing mode

of payment from time to time in the name of Debenture Holder(s) whose names appear on the list given by the

Depository to the Company at the close of the Record Date. Cheque / DD will be dispatched to the Debenture

holder(s) by Courier / Registered Post / Hand Delivery, in accordance with the existing rules / laws at the sole

risk of the Debenture holder(s) to the sole holder(s) / first named holder(s) at the address registered with the

Company.

The Coupon in all cases shall be payable on the amount of outstanding Debentures on an Actual/Actual basis,

i.e., Actual number of days elapsed divided by the actual number of days in the year and rounded off to the

nearest Rupee.

If any of the Coupon Payment Date is not a Business Day, interest will be payable on the next succeeding

Business Day. Such payment on the next Business Day would not constitute non-payment on due date and no

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additional interest or compensation will be paid for such day(s).

Deduction of Tax at Source (TDS)

Tax as applicable under the Income Tax Act, 1961, or any other statutory modification or re-enactment thereof

will be deducted at source on payment of interest or any other sums payable in respect of the Debentures. For

seeking TDS exemption/lower rate of TDS, relevant certificate(s)/ document(s) must be lodged at least 15 days

before the Coupon Payment Date (s) with the Registrar or to such other person(s) at such other address (es) as

the Company may specify from time to time through suitable communication.

Tax exemption certificate/ declaration of non-deduction of tax at source on Interest on Application Money,

should be submitted along with the Application Form. Where any deduction of Income Tax is made at source,

the Company shall send to the Debenture holder(s) a Certificate of Tax Deduction at Source.

Regarding deduction of tax at source and the requisite declaration forms to be submitted, prospective investors

are advised to consult their own tax consultant(s).

With effect from June 1, 2008 under section 193 of the Income-tax Act, 1961, no tax is deductible at source

from the amount of interest payable on any security issued by a Company in dematerialized form and listed on

a recognized stock exchange in India in accordance with the Securities Contract (Regulation) Act, 1956 and the

rules made thereunder, held by a person resident in India. Since the Debentures shall be issued in dematerialized

mode and are proposed to be listed on BSE, no tax will be deductible at source on the payment or credit of

interest on the Debentures held by any person resident in India.

Payment on Redemption

The Debentures shall be redeemed at par as a bullet repayment at the end of three years from the Deemed Date

of Allotment (“Redemption Dates”), as mentioned in the Issue Details.

The Debentures will not carry any obligation, for interest or otherwise, after the Redemption Date. The

Debentures held in the dematerialised form shall be taken as discharged on payment of the Redemption Amount

by the Company on Redemption Date to the registered Debenture holders whose name appear in the list given

by the Depository to the Company at the close of the Record Date. Such payment will be a legal discharge of

the liability of the Company towards the Debenture holders.

Payment of Redemption Amount will be made by way of Cheque / DD / RTGS / NEFT / Electronic mode and

any other prevailing mode of payment in the name of Debenture Holder(s) whose name appears on the list given

by the Depository to the Company at the close of the Record Date. Cheque / DD will be dispatched to the

Debenture holder(s) by Courier / Registered Post / Hand Delivery, in accordance with the existing rules / laws

at the sole risk of the Debenture holder(s) to the sole holder(s) / first named holder(s) at the address registered

with the Company.

If any Coupon Payment Date falls on a day that is not a Business Day, the Coupon payment shall be made on

the immediately succeeding Business Day. If the redemption date / exercise date / Maturity Date of the

Debentures falls on a day that is not a Business Day, the Redemption Amount (excluding Coupon) shall be paid

on the immediately preceding Business Day.

Future Borrowings

The Company shall be entitled to borrow/ raise loans or avail of financial assistance in whatever form and also

issue Debentures / Notes / other securities in any manner and to change its capital structure, including issue of

shares of any class or redemption or reduction of any class of paid up capital, on such terms and conditions as

the Company may think appropriate, without the consent or intimation to, the Debenture holders/Debenture

Trustee in this connection.

These Debentures are unsecured.

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Purchase/ Sale of Debentures

The Company may, at any time and from time to time, purchase Debentures at discount, at par or at premium in

the open market or otherwise in accordance with the applicable laws. Such Debentures, at the option of the

Company, may be cancelled, held or resold at such price and on such terms and conditions as the Company may

deem fit and as permitted by law.

Tax Benefits to the Debenture Holders

The holder(s) of the Debentures are advised to consider in their own case, the tax implications in respect of

subscription to the Debentures after consulting their own tax advisor/ counsel.

Consents

The consents in writing of Registrar to the Issue and the Debenture Trustee to act in their respective capacities

have been obtained.

Sharing of Information

The Company may, at its option, use on its own, as well as exchange, share or part with any financial or other

information about the Debenture holders available with the Company, with its subsidiaries and affiliates and

other banks, financial institutions, credit bureaus, agencies, statutory bodies, as may be required and neither the

Company nor its subsidiaries and affiliates or their agents shall be liable for use of the aforesaid information.

Debenture Holder not a Shareholder

The Debenture Holders will not be entitled to any of the rights and privileges available to the Shareholders of

the Company.

Modification of Rights

The rights, privileges, terms and conditions attached to the Debentures may be varied, modified or abrogated by

the Company, with the consent, in writing, of those Debenture holders who hold at least three fourth of the

nominal value of the Debentures then outstanding or with the sanction accorded pursuant to a resolution passed

at a meeting of the Debenture holders as may be prescribed in the Trusteeship Agreement / Debenture Trust

Deed, provided that nothing in such consent or resolution shall be operative against the Company where such

consent or resolution modifies or varies the terms and conditions of the Debentures, if the same are not

acceptable to the Company.

Notice(s)

All notices to the Debenture holder(s) required to be given by the Company or the Debenture Trustee from time

to time, shall be deemed to have been given if sent by registered post / by courier / fax/ email to the sole / first

allottee or the sole / first Debenture holder of the Debentures, as the case may be.

All notice(s) to be given by the Debenture holder(s) shall be sent by registered post or by hand delivery to the

Company or to such persons at such address as may be notified by the Company from time to time through

suitable communication.

Disputes and Governing Law

The Debentures are governed by and shall be construed in accordance with the existing laws of India. Any

dispute arising thereof will be subject to the exclusive jurisdiction of the courts at Kolkata in India.

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Disclosures pertaining to willful default

The Company, its Promoter and its Directors have not been categorised as willful defaulters by any bank,

financial institution or consortium in accordance with the guidelines issued by the RBI.

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APPLICATION PROCESS

Issue Procedure

Only Eligible Investors as given hereunder may apply for the Debentures by completing the Application Form

in the prescribed format in BLOCK LETTERS in English as per the instructions contained therein. No

application can be made for a fraction of a Debenture. Application Forms should be duly completed in all

respects and applications not completed in the said manner are liable to be rejected. The name of the

applicant's bank, type of account and account number must be duly completed by the applicant. This is

required for the applicant's own safety and these details will be printed on the refund orders and interest/

redemption warrants.

Application Procedure

Potential investors will be invited to subscribe by way of the format of the Application Form prescribed in

this Information Memorandum during the period between the Issue Opening Date and the Issue Closing Date

(both dates inclusive). The Company reserves the right to close the Issue at the earlier date on the Issue being

fully subscribed.

Fictitious Application: Attention of applicants is specially drawn to the provisions or Section 38 of the

Companies Act, 2013: Any person who: (a) makes or abets making of an application in a fictitious name to a

company for acquiring, or subscribing for, its securities; or (b) makes or abets making of multiple applications

to a company in different names or in different combinations of his name or surname for acquiring or

subscribing for its securities; or (c) otherwise induces directly or indirectly a company to allot. or register any

transfer of, securities to him, or to any other person in a fictitious name. shall be liable for action under Section

447 of the Companies Act, 2013 which includes punishment with imprisonment for a term which shall not be

less than six months but which may extend to ten years and shall also be liable to fine which shall not be less

than the amount involved in the fraud. but which may extend to three times the amount involved in the fraud.

Provided where the fraud in question involves public interest, the term of imprisonment shall not be less than

three years.

How to Bid?

All eligible investors will have to register themselves under BSE BOND – EBP platform offered by BSE Ltd

for participating in electronic book building mechanism. Investors should refer the operating guidelines for

issuance of debt securities on private placement basis through an electronic book mechanism as available on

web site of BSE.

Right to accept or reject bids

The Company reserves it’s full, unqualified and absolute right to accept or reject any bid(s), in

part or in full, without assigning any reason thereof and to make provisional/ final allocations at

its absolute discretion.

Provisional/ Final Allocation

Post completion of bidding process, Issuer will upload the provisional allocation on the BSE

BOND–EBP Platform. Post receipt of investor details, Issuer will upload the final allocation

file on the BSE BOND- EBP Platform.

How to apply?

All Application Forms, duly completed must be delivered before the Issue Closing Date to the Company.

Applications for the Debentures must be in the prescribed form (enclosed) and completed in BLOCK

CAPITAL LETTERS in English and as per the instructions contained therein.

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Eligible Investors

Eligible Investors, when specifically approached, are eligible to apply for this private placement of

Debentures subject to fulfilling their respective investment norms/ rules and compliance with laws applicable

to them by submitting all the relevant documents along with the application form.

All such Investors / transferees are required to comply with the relevant regulations/guidelines applicable to

them for investing in this issue of / purchasing the Debentures and with respect to any subsequent transfer of

the Debentures and shall be hound by the terms and conditions of the Debentures as set out in this Information

Memorandum.

Applications not to be made by person(s) or entity(es) resident outside India (including non-resident Indians,

Overseas Corporate bodies, etc.). However, Foreign Portfolio Investors will be eligible to apply for this

private placement of Debentures subject to fulfilling their respective investment norms/ rules and compliance

with laws applicable to them by submitting all the relevant documents along with the application form.

All investors are required to comply with the relevant regulations/guidelines applicable to them for investing

in this Issue.

Documents to be provided by Investors / applicants

Investors need to submit the following documents, along with the Application Form, as applicable

▪ Memorandum and Articles of Association

▪ Board Resolution / letter authorizing the investment

▪ Certified true copy of the Power of Attorney

▪ Form 15AA for investors seeking exemption from Tax Deduction at Source (TDS) – both on Interest

on Application Money as well as annual interest payments

▪ Specimen signature of the authorised signatories, duly certified by an appropriate authority

▪ PAN to be submitted

Applications under Power of Attorney

In case of applications made under a Power of Attorney or by a Limited Company or a Body Corporate etc.,

the relevant Power of Attorney or the relevant resolution or authority to make the application, as the case may

be, together with the certified true copy thereof along with the certified copy of the Memorandum and Articles

of Association and/or Bye-Laws as the case may be must be attached to the Application Form or lodged for

scrutiny separately with the photocopy of the Application Form, quoting the serial number of the Application

Form at the Company’s branch where the application has been submitted failing which the applications are

liable to be rejected.

PAN/GIR Number

All Applicants should mention their Permanent Account Number or the GIR Number allotted under Income

Tax Act, 1961 and the Income Tax Circle / Ward / District. In case where neither the PAN nor the GIR

Number has been allotted, the fact of such a non-allotment should be mentioned in the Application Form in

the space provided.

Signatures

Signatures should be made in English or in any of the Indian Languages. Thumb impressions must be attested

by an authorised official of a Bank or by a Magistrate/Notary Public under his/her official seal.

Details of subscription / Mode of payment

In line with SEBI circular no SEBI/HO/DDHS/CIR/P/2018/05 dated January 05, 2018 regarding Mechanism

for issuance of debt securities on private placement basis through an Electronic Book Mechanism, the

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payment must be made through RTGS to the Designated Bank Account of Indian Clearing Corporation

Limited’s (ICCL).

The Designated Bank Account of ICCL is as under:

HDFC Bank

Beneficiary Name: INDIAN CLEARING CORPORATION LTD

Account Number: ICCLEB

IFSC Code : HDFC0000060

Mode: NEFT/RTGS

Manner of Bidding Open Bid Book

Type of Bidding Fixed Rate Bidding

Mode of Allotment Uniform Yield

Mode of Settlement Indian Clearing Corporation Limited (ICCL)

Pay in or Settlement T+1

Further, the subscription money will be transferred to the Company by way of electronic transfer of funds

through the RTGS / NEFT mechanism for credit in the account of “TATA STEEL LIMITED”.

Right to Accept or Reject Applications

The Company reserves it’s full, unqualified and absolute right to accept or reject any application, in part or

in full, without assigning any reason thereof. The applicants will be intimated about such rejection along

with the refund warrant. The Application Forms that are not complete in all respects are liable to be rejected

and such applicant would not be paid any Interest on Application Money. Application would be liable to be

rejected on one or more technical grounds, including but not restricted to:

a. Bank account details not given;

b. Details for issue of debentures in electronic/ dematerialised form not given;

c. PAN not mentioned in appropriate place; and

d. In case of applications under Power of Attorney by limited companies, corporate bodies, etc. relevant

documents not submitted.

In the event of number of Debentures applied for are not allotted in full, the excess application money of

such applicant will be refunded, as may be permitted.

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ISSUE DETAILS

Security Name 8.25% per annum Unsecured Rated Listed Redeemable Non-Convertible

Debenture Tata Steel Limited

Issue Name Tata Steel May 2020 NCD Issuance – V

Issuer Tata Steel Limited

Type of Instrument Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures (the

“Debentures”).

Nature of Instrument Unsecured

Seniority Pari passu with unsecured creditors

Mode of Issue Private placement under the electronic book mechanism of BSE

Eligible Investors As specified under the paragraph titled “Eligible Investors” in the

Information Memorandum.

Listing (including name of

Stock Exchange(s) where it

will be listed and timeline

for listing)

Debentures are to be listed on the WDM of the BSE within a maximum

period of 15 (Fifteen) calendar days from the Deemed Date of Allotment.

In case of delay in listing of the debt securities beyond 20 calendar days from

the Deemed Date of Allotment, the Issuer will pay penal interest of at least

1% p.a. over the Coupon Rate from the expiry of 30 (Thirty) days from the

Deemed Date of Allotment till the listing of such Debentures.

Rating of the Instrument The Debentures are rated as ‘Ind AA’ by India Ratings And Research Private

Limited (India Ratings) and “CARE AA” by Credit Analysis & Research

Limited (CARE Ratings).

Issue Size Rs. 1,000 crores

Objects of the Issue and

details of the utilisation of

the Proceeds

The proceeds of the issue will be used in accordance with applicable laws for

general business purpose including long term working capital requirements,

capital expenditure and repayment/prepayment of existing loans. The

proceeds will, however, not be used for investments in equity/capital market,

speculative activity, acquisition of land, real estate purpose, acquisitions and

on-lending.

Coupon Rate 8.25% per annum payable annually

Illustrative Cash Flow Dates on which coupon is payable by the Company in relation to the

Debentures (“Coupon Payment Date”), please see Annexure 4 of the

Information Memorandum.

Step Up/ Step Down

Coupon Rate

Not Applicable

Coupon Payment

Frequency

Annually

Coupon Payment Date(s) Please see Annexure 4 of the Information Memorandum.

Coupon Type Fixed

Coupon Reset Process

(including rates, spread,

effective date, interest

rate cap and floor etc.)

Not Applicable

Day Count Basis Interest payable on the Debentures will be calculated on the basis of actual

number of days elapsed in a year of 365 or 366 Days as the case may be i.e.

Actual/ Actual.

Interest on Application

Money

To be paid to investors at Coupon Rate from the date of realization of

subscription money up to one day prior to the Deemed Date of Allotment.

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Such interest is payable within seven business days from the Deemed Date

of Allotment.

Default Interest Rate In case of default in payment of interest and/or Redemption Amount on

relevant due dates (being the Coupon Payment Date or the Redemption Date),

additional interest at 2% per annum over the Coupon Rate will be payable by

the Issuer for the period of default on the unpaid Coupon or Redemption

Amount.

Delay Penalty In the case of a delay in the execution of Debenture Trust Deed beyond 3

(three) months from the Issue Closing Date, the Issuer penal interest of 2%

(Two Percent) per annum over the and above the applicable Coupon Rate

until such time the conditions have been complied with at the option of the

Debenture holders.

Tenor Three years

Redemption Date Bullet Repayment at the end of three years

Redemption Amount Rs. 10,00,000 (Indian Rupees Ten Lakhs only) per Debenture

(“Redemption Amount”)

Redemption Premium /

Discount

Not Applicable

Issue Price Rs. 10,00,000 (Indian Rupees Ten Lakhs only) per Debenture

Discount at which security

is issued and the effective

yield as a result of such

discount

Not Applicable

Put Option Date Not Applicable

Put Option Price Not Applicable

Call Option Date Not Applicable

Call Option Price Not Applicable

Put Notification Time Not Applicable

Call Notification Time Not Applicable

Face Value Rs. 10,00,000 (Indian Rupees Ten Lakhs only) per Debenture

Minimum Application and

in multiples of Debentures

thereafter

1 Debenture of Rs. 10,00,000 (Rupees Ten Lakhs) each and in multiple of 1

Debenture of Rs. 10,00,000 (Rupees Ten Lakhs) each thereafter, respectively

for the Debentures

Issue Timing

Issue Opening Date: May 19, 2020

Issue Closing Date: May 19, 2020

Pay in Date: [T+1 settlement] May 20, 2020

Deemed Date of Allotment: May 20, 2020

Issuance mode of the

Debentures

Demat

Trading Mode of the

Debentures

Demat

Settlement Mode of the

Debentures

Bank Transfer / RTGS / NEFT or any other mode of payment permissible

under law

Depository NSDL/ CDSL

Business Day Convention If any Coupon Payment Date falls on a day that is not a Business Day, the

Coupon payment shall be made on the immediately succeeding Business

Day. If the redemption date / exercise date / Maturity Date of the Debentures

falls on a day that is not a Business Day, the Redemption Amount (excluding

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Coupon) shall be paid on the immediately preceding Business Day.

Record Date The Record Date for the Debentures shall be 15 days prior to the date of each

of the Coupon Payment Date and/or the Redemption Date, as the case may

be.

Security Unsecured

Security Creation Not applicable

Future Borrowings The Company shall be entitled to borrow/ raise loans or avail of financial

assistance in whatever form and also issue Debentures / Notes / other

securities in any manner and to change its capital structure, including issue

of shares of any class or redemption or reduction of any class of paid up

capital, on such terms and conditions as the Company may think appropriate,

without the consent or intimation to, the Debenture holders/Debenture

Trustee in this connection.

Transaction Documents The Issue will be governed by documentation as agreed for the transaction

including Information Memorandum, Debenture Trust Deed, Trusteeship

Agreement, credit rating letters, listing application, in principle listing

approval, debenture trustee consent letter, private placement offer letter in

form PAS-4 and corporate Authorizations.

Conditions Precedent to

Disbursement

Not Applicable

Conditions Subsequent to

Disbursement

1. Execution of the Debenture Trust Deed within 3 (three) months from the

Issue Closing Date.

2. Completion of listing of Debentures on the stock exchange

Event of Defaults As per the Debenture Trust Deed

Provisions related to Cross

Default

Not Applicable

Debenture Trustee IDBI Trusteeship Services Limited

Role and Responsibilities

of Debenture Trustee

To oversee and monitor the overall transaction for and on behalf of the

Debenture Holders .

Governing Law and

Jurisdiction

The Debentures and documentation will be governed by and construed in

accordance with the laws of India and the parties submit to the exclusive

jurisdiction in Kolkata.

Manner of Bidding Open Bid Book

Type of Bidding Fixed Rate Bidding

Mode of Allotment Uniform Yield

Mode of Settlement Indian Clearing Corporation Limited (ICCL)

Pay in or Settlement T+1

Manner of Allotment The allotment will be done in line with EBP Guidelines vide SEBI circular

SEBI/HO/DDHS/CIR/P/2018/122 dated August 16, 2018 read with the

“Updated Operational Guidelines for issuance of Securities on Private

Placement basis through an Electronic Book Mechanism” issued by BSE vide

notice no. 20180928-24 dated September 28, 2018.

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ANNEXURE – 1 - CONSENT FROM IDBI TRUSTEESHIP SERVICES LIMITED

TO ACT AS THE DEBENTURE TRUSTEE

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ANNEXURE – 2A - RATING ISSUED BY INDIA RATINGS AND RESEARCH PRIVATE

LIMITED (India Ratings)

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ANNEXURE – 2B - RATING ISSUED BY CREDIT ANALYSIS & RESEARCH LIMITED (CARE Ratings)

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ANNEXURE – 3 - APPLICATION FORM

TSL NCD Issuance May 2020 -V

(Private and Confidential (for addressee only))

Tata Steel Limited

CIN– L271000MH1907000260

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

Website: www.tatasteel.com

Tel: +91 22 6665 8282, Fax: +91 22 6665 7724 e-mail: [email protected]

Application Form for Private Placement of 8.25% p.a. Unsecured, Redeemable, Rated, Listed, Non-Convertible

Debentures (NCDs)

Application No. Date :

Dear Sirs,

Sub: Issue of 8.25% p.a. Coupon, Unsecured, Redeemable, Rated, Listed, Non-Convertible Debentures

(“NCD”) of the face value of Rs. 10,00,000 each, for cash aggregating to Rs. 1,000 crores (the “Issue”) on

a private placement basis.

Having read and understood the contents of the Information Memorandum of private placement dated May 15,

2020 in connection with the offer of NCDs of the face value of Rs. 10,00,000 each, for cash, aggregating to Rs.

1,000 crores (Rupees One Thousand crores only), I/we apply for allotment of the NCDs to me/us. The amount

payable on application as shown below is remitted herewith. On allotment, please place my/ our name(s) on the

Register of Debenture holder(s). We bind ourselves to the terms and conditions as mentioned in the Disclosure

Document and the relevant pricing supplement.

(Please read carefully the instructions on the next page before filling up this form)

Debenture 8.25% p.a. Coupon, Unsecured, Redeemable, Rated,

Listed, Non-Convertible Debentures aggregating to Rs.

1,000 crores

Number of debentures applied for (Rs.10,00,000 per

debenture)

Amount (Rs.) in figures

Amount (Rs.) in words

Applicant’s name and address in full (in capital letters) :

Pin Code

Tel: Fax: Email:

Status :

[ ] Companies [ ] Mutual Funds [ ] Financial Institutions

[ ] Insurance Companies [ ] Banks [ ] Others

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Details of Bank Account

Bank Name and Branch :

Nature of Account Account No.

Branch RTGS code (IFSC)

Depository Details

DP Name

DP ID Client ID

We understand that in case of allotment of debentures to us/our Beneficiary Account as mentioned above would

be credited to the extent of debentures allotted.

Tax Details

PAN / GIR No.

Circle / Ward / District

Tax Deduction Status

[ ] Fully Exempt

[ ] Tax to be deducted at source

[ ] Yes [ ] No

Copies of tax exemption certificate / PAN Card / Declarations attached

Name of authorized signatory Designation Signature

------------------------------------------------(Tear here)----------------------------------------------------

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Tata Steel Limited

CIN– L271000MH1907000260

Registered Office: Bombay House, 24 HomiMody Street, Fort, Mumbai-400 001

Website: www.tatasteel.com

Tel: +91 22 6665 8282, Fax: +91 22 6665 7724 e-mail: [email protected]

ACKNOWLEDGEMENT SLIP

Application No. : _________________ Date: ________________

Received from ___________________________________________ Rs. ___________________ /- by Cheque /

Demand Draft No.___________ drawn on __________________________ towards application for ______________

Debentures.

(Cheques / Demand Drafts are subject to realization)

INSTRUCTIONS

1. Application Form must be completed in full in BLOCK LETTERS IN ENGLISH. A blank space must be left

between two or more parts of the name. Signatures should be made in English or in any of the Indian languages.

Signature in a language other than English must be attested by an authorized official of a Bank or by a magistrate

/ notary public under his / her official seal.

2. The full amount of Debenture has to be paid along with the application form.

3. Application form duly completed in all respects and must be submitted to the Registered Office of the Company

at Bombay House, 24 Homi Mody Street, Fort, Mumbai-400 001 on or before the closing date of the issue. The

payment must be made through RTGS to the Designated Bank Account of Indian Clearing Corporation Limited’s

(“ICCL”).

The Designated Bank Account of ICCL is as under:

HDFC Bank

Beneficiary Name: INDIAN CLEARING CORPORATION LTD

Account Number: ICCLEB

IFSC Code : HDFC0000060

Mode: NEFT/RTGS

4. Applications made by categories of investors other than individuals must be accompanied by certified copies of

Memorandum and Articles of Association, Board Resolution / Power of Attorney for investment, authority to

authorized signatories in case of limited companies or corporate bodies, Certificate of registration, Electricity/

Telephone Bill.

5. Please mention your Permanent Account Number or the GIR number allotted under Income Tax Act, 1961 and the

Income Tax Circle/Ward/District. In case where neither the PAN nor GIR number has been allotted, the fact of

non-allotment should be mentioned in the application form in space provided.

6. Receipt of application will be acknowledged in the “Acknowledgement Slip” appearing below the Application

Form. No separate receipt will be issued.

7. The application would be accepted as per the terms of the issue outlined in the Disclosure Document.

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ANNEXURE – 4 - ILLUSTRATIVE CASH FLOWS

Sr.

no.

Interest payment

Date

Repayment

Date

Principal per

Debenture

No. of days in

coupon payment

Interest per

Debenture

Principal

Repayment per

Debenture

1 Thursday, 20 May,

2021 1,000,000 365 82,500

2 Friday, 20 May,

2022 1,000,000 365 82,500

3 Friday, 19 May,

2023

Friday, 19

May, 2023 1,000,000 365 82,500 1,000,000

*List of Bank Holidays were not available, hence interest payment and repayment was not adjusted to that extent.

*Since the redemption date (i.e May 20, 2023) is not a working day, as per the business day convention, the principal

repayment will be made on a working day immediately preceding the redemption date which is May 19, 2023. The

interest will be calculated up to May 20, 2023 and to be paid on May 19,2023.

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ANNEXURE – 5 - IN-PRINCIPLE LISTING APPROVAL

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DECLARATION

Declaration by the Directors / Executive that:

a. The Company has complied with the provisions of the Companies Act, 2013 and the rules made

thereunder;

b. The compliance with the Companies Act, 2013 and the rules made thereunder do not imply that

payment of dividend or interest or repayment of preference shares or debentures, if applicable, is

guaranteed by the Central Government; and

c. The monies received under the offer shall be used only for the purposes and objects indicated in the

offer letter.

I am authorized by the Committee of Directors vide its Resolution dated April 13, 2020 to sign this form and

declare that all the requirements of the Companies Act, 2013, and the rules made thereunder in respect of the

subject matter of this form and matters incidental thereto have been complied with. Whatever is stated in this

form and in the attachments thereto is true, correct and complete and no information material to the subject

matter of this form has been suppressed or concealed and is as per the original records maintained by the

promoters subscribing to the Memorandum of Association and Articles of Association.

It is further declared and verified that all the required attachments have been completely, correctly and legibly

attached to this form.

Tata Steel Limited

Parvatheesam K.

Company Secretary &

Chief Legal Officer (Corporate & Compliance)

Date: May 15, 2020

Place: Mumbai