investment decision,

We believe any capital investment should be made after evaluation of its climate impact. To
enable this, we have introduced the Shadow Carbon Price, which will be used for evaluating any
capital expenditure projects in Tata Steel

The global steel industry continues to witness challenging times though the performance of the
industry has been better in the Financial Year 2016-17 with improved realisations and a more
disciplined supply side response.

While the Steel sector in India is nancially stressed currently, the Government of India has
outlined its intent for ensuring long-term viability of the sector through the recently announced
National Steel Policy 2017.

, India has become the 3rd largest steel producer in the world with a production of 91 MT and a
capacity of 122 MT in FY 2015-16. The National Steel Policy 2017 (NSP 2017) is an effort to
steer the industry to achieve its full potential, enhance steel production with focus on high end
value added steel while being globally competitive.

Indias competitive advantage in steel production is driven, to a large extent, from the indigenous
availability of high grade iron ore and non-coking coal the two critical inputs of steel
production.

The Indian steel industry is structured in between three broad categories based on route wise
production viz. BF-BOF, EAF and IF. BF-BOF route producers have large integrated steel
making facilities which utilize iron ore and coking coal for production of steel. Currently, the
BF-BOF route had a combined capacity of around 50 MT at utilization level of 82%1 .
Post 2011, global prices of steel began to decline, marking the beginning of a down turn in the
global steel industry triggered by slowdown in global demand and over capacities in a number of
countries including China. By July 2015, prices had fallen by 50% compared to January 2011 -
their lowest in decades, as cheap imports flooded world steel markets. This significant structural
asymmetry between demand and supply also affected large number of Indian companies leading
to surge in imports resulting in weak pricing conditions, low profitability, lower capacity
utilization and even closure of capacities in some cases.

Going forward, Tata Steels strategic priorities will be to focus on the Indian market, achieving
operational excellence and deliver value-added and di erentiated products to its customers.
Additionally, Tata Steel Europe is currently pursuing the pension restructuring programme in the
UK and is hopeful of concluding it soon.

During the year under review, the company focused on enhancing operating performance and
productivity, undertook several restructuring
of the portfolio, introduced new and di erentiated products and solutions for the customers and
optimised working capital management under volatile market conditions to turnaround the
companys performance. We will continue to pursue the performance improvement programme
in the future to create a more sustainable, pro table and value creating enterprise across the
commodity cycle.

financing decision,

While there is currently nancial stress in the Steel sector in India, the Government

of India and the Reserve Bank of India are deeply engaged to provide a policy enabled structural
resolution for the future. Steel is a critical material for the future growth of India and

dividend decision and

The Board recommended a dividend of 8 per Ordinary Share on 97,12,15,439 Ordinary Shares of 10 each for the
year ended March 31, 2016. (Financial Year 2014-15: 8 per Ordinary Share on 97,12,15,439 Ordinary Shares of 10
each).

The dividend on Ordinary Shares is subject to the approval of the shareholders at the Annual General Meeting (AGM)
scheduled to be held on August 12, 2016. The dividend will be paid on August 16, 2016. The total dividend pay-out
works out to 19% (Financial Year 2014-15:14%) of the net profit for the standalone results.

The Register of Members and Share Transfer Books will remain closed from July 30, 2016 to August 12, 2016 (both
days inclusive) for the purpose of payment of the dividend for the Financial Year ended March 31, 2016 and the
AGM.

1. Dividend

The Board recommended a dividend of `10 per Ordinary Share on 97,12,15,889 Ordinary Shares
of `10 each for the year ended March 31, 2017. (Financial Year 2015-16: `8 per Ordinary Share
on 97,12,15,439 Ordinary Shares of `10 each).

The dividend on Ordinary Shares is subject to the approval of the shareholders at the Annual
General Meeting (AGM) scheduled to be held on August 8, 2017. The dividend will be paid on
and from August 10, 2017. The total dividend pay-out works out to 34% (Previous Year: 97%)
of the net pro t for the standalone results.

The Register of Members and Share Transfer Books will remain closed from July 22, 2017 to
August 8, 2017 (both days inclusive) for the purpose of payment of the dividend for the
Financial Year ended March 31, 2017 and the AGM.
2. Dividend Distribution Policy

The Securities and Exchange Board of India (SEBI) vide its noti cation dated July 8, 2016,
requires the top 500 listed entities (based on the market capitalization calculated as on March 31
of every nancial year) to formulate a dividend distribution policy and disclose the same in their
annual reports and on their websites.

In terms of the above requirement, the Board of Directors of the Company have formulated a
Dividend Distribution Policy (the Policy). As per the policy, the Company endeavours to pay
dividend up to 50% of pro t after tax of the Company (as determined by the Board of Directors
and approved by the shareholders) subject to the applicable rules and regulations. The detailed
policy is annexed to this report (Annexure 1) and is also available on our website
www.tatasteel.com

3. Transfer to Reserves

The Board of Directors has decided to retain the entire amount of pro ts in the pro t and loss
account.

4. Capex and Liquidity

During the year, the Company on a consolidated basis spent `7,716 crore on capital projects
across India, Europe, South-East Asia, Canada and Africa largely towards essential sustenance
and replacement as also on growth projects in India and Netherlands. Despite this signi cant
spend, the Company was able to keep the gross debt level stable during the year.

The Companys liquidity position remains strong at `19,777 crore as on March 31, 2017, which
includes undrawn lines.

5. Management Discussion and Analysis

The Management Discussion and Analysis as required by the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations) is incorporated herein by reference and forms an integral part of this report.
(Annexure 2)

B. INTEGRATED REPORT

In keeping with the Companys valued tradition - thinking about society and not just the
business, the Company, in the previous reporting year, moved from compliance based reporting
to governance based reporting. The Company adopted the <IR> framework developed by the
International Integrated Reporting Council and presented to its stakeholders the 1st Integrated
Report for the period ended May 2016.

The Board is happy to present the 2nd Integrated Report which endeavours to comprehensively
articulate the measures that contribute to long-term sustainable value and the role the Company
plays in the society.
working capital decision.