Wages Increased: sixth pay commission: maybe in percentage terms The increase in finished/semi-finished inventories by 32% was due to increase in quantity and valuation rate on account of increase in both cost of production or Net Sales Realisation, whichever is applicable. l The stores & spares inventory increased by 23% and raw material inventory increased by 15%. Sales increased by 7% and raw material cost has increased by 27%... Low creditor velocity, working capital is decreased: hence impacting the cash flow Net profit ratio is decreased due to increase in raw materials and labor charges and interest charges, in fact wages charges (40.7%) The profit of your company for the year 2010-11 was affectedadversely, mainly due to adverse impact of input prices consisting of imported coal, indigenous coal, limestone, nickel, ferro alloys, aluminium, boiler coal, purchase power, increase in royalty on minerals, salaries & wages, higher interest & depreciation. However, the adverse impact on profitability waspartially off set by higher volume of saleable steel production, increase in net sales realisation of saleable steel, better product mix and higher value added steel production. Although sales has i The repairs and maintenance expenses increased by 18%... Increase of 32% in finished and semi finished inventories due to increase in quantity and valuation rates on account of increase in cost of production or net sales realization whichever is applicable leading to increase in CR and blockage of working capital. Provisions for

Strengths: Despite the increase in debt equity ratio from 0.50:1 as on 31 st mar10 to 0.54:1 on account of increase in borrowings for capital expenditure, the company is in a very good position as compared to the industry average. Tata Steel has a debt equity ration of 1.55 as on 31 mar11. The net worth of company improved substantially by 11.26 % from 33317 cr to 37069 and this helped in generation of internal resources for funding expansion plans of SAIL. The high cost short term loans were replaced by low cost debts. It has the largest captive iron ore operations in India which takes acre of the the entire requirements.The company will be self sufficient in iron ore after completion of the on going phase of expansion also. Despite the increase in debt equity ratio on account of borrowings for capital expenditure, M/s FITCH and M/s CARE,RBI approved credit rating agencies,maintained AAA ratings indicating the highest safety to its long term boroowing programme. The Interest Coverage Ratio of 7.69 is also a very healthy figure.