Dear Stakeholders,

I hope you and your families are safe and in good health. It gives me great pleasure to present you the 6th Integrated Report & 33rd Annual Accounts ofyour Company for the Financial Year ended March 31,2023.

During financial year FY 2022-23, the global economy was impacted by the Russia-Ukraine conflict, a sharp rise in energy costs, supply chain disruptions, and resultant inflationary pressures. Central banks around the world raised interest rates in response and coupled with the impact of the zero-COVID policy in China, this moderated sentiment and economic activity.

India's economy continued to be one of the bright-spots, reinforced by the government's capital outlay and buoyant private consumption. India's GDP registered a growth of-6.8% in FY 2022-23. India's steel consumption grew by over 10%y-o-y to 117 million tonnes in FY 2022-23.

However, the Indian steel industry was impacted by global developments as steel prices fell sharply and companies faced a margin squeeze given continuing high raw material costs. Indian steelmakers were further impacted by the introduction ofa 15% export duty from May 2022 till November 2022 which further depressed domestic prices. Finally, the higher royalty costs on iron-ore supplies also adversely affected margins throughout the year.

Your Company continued to demonstrate agility and deep resilience backed by a strong focus on operational performance improvement, fiscal discipline and cost optimisation. The Company recorded its highest-ever Ductile Iron (Dl) Pipe production, coke production, and captive power generation. The Company recorded an EBITDA from Operations of Rs.210.73 crore (FY 2021-22: Rs.394.68 crore) and Profit Before Tax (PBT) of Rs.100.70 crore (FY 2021-22: Rs.339.32 crore). The Board is pleased to recommend a dividend of Rs.5/- per equity share for FY 2022-23.

During the year under review, the Board has considered and approved withdrawal of the Scheme of Amalgamation of the Company into and with Tata Steel Long Products Limited, owing to significant changes in underlying business conditions and profile in both the Companies. However, as part of an effort to realise synergies and create value for shareholders, the Board approved a Scheme of Amalgamation of the Company into and with its holding company i.e. Tata Steel Limited ('Scheme'). The Board has recommended a share exchange ratio of 79 fully paid-up equity shares of nominal value of Rs.1/- each of Tata Steel Limited ('TSL') for every 10 fully paid-up equity shares of nominal value of Rs.10/- each held by the public shareholders of the Company. The Company has received approval from the stock exchanges and is in the midst of the process of stakeholder and regulatory approval.

I now take this opportunity to highlight key initiatives during the year across each pillar ofyour Company's strategy:

Cost Leadership

The Operational excellence was ably supported by the best-ever yield and productivity at 97.93% from the Blast Furnaces and Sinter Plant. Fuel rate optimisation amidst raw material volatilities, with high Pulverised Coal Injection and Oxygen enrichment, helped in controlling the Hot Metal cost. Ductile Iron (Dl) Pipe conversion cost, which is a function of yield, rejection, energy consumption and use of materials and consumables, continues to remain at benchmark levels.

Supplier of Choice

Your Company last year institutionalised the Customer Relationship Management process in both businesses and consolidated all marketing and sales-related processes onto a single platform, optimising the lead-to-cash cycle, and facilitating a seamless 'Business on Mobile' experience.

Robust People Practices

Deeper organisational engagement and Learning & Development interventions are leveraging digital tools to increase capability and productivity. Your Company has taken bold steps towards Diversity and Inclusion and takes pride on being re-certified as a 'Great Place to Work'.

Responsible Corporate Citizenship

Your Company has moved up by four levels to a rating of'B' in its Carbon Disclosure Project (CDP) ratings. The 'TML 300 Schools Project' provides quality education to children in the age bracket of 3-15 years in target villages with the ultimate goal of eliminating child labour.

Focus on Downstream/Value-add

The first phase of the new Ductile Iron (Dl) Pipe plant was commissioned. It employs Augmented Reality technology, a first in the industry. The enhanced capacity with latest technologies and robotics will improve safety, productivity and quality.

Innovate and Excel

Your Company has been placed in the band of Industry Leader in the Tata Business Excellence Model Assessment. The Company is reinforcing its focus on EBITDA-based improvement by deploying an Integrated Improvement Programme (IIP) framework.

In 2023, global economic growth is poised to slow down to 2.8% (from 3.4% in 2022), led by a pronounced slowdown in developed markets. In contrast, emerging markets, led by India, will provide some cushion. India shall continue to be the fastest growing large economy for the third consecutive year. Given the focus on infrastructure development, steel demand in India is expected to keep pace with the GDP growth over the next decade. Demand from key steel consuming sectors such as construction, capital goods, railways, and automotive is expected to remain robust.

The medium to long term outlook of both the businesses remains optimistic. Ductile Iron (Dl) Pipe demand, backed by a strong thrust by the government on infrastructure, particularly in the water and sanitation sector through the flagship 'Jal Jeevan Mission' scheme, could be significantly higher in FY 2023-24. Your Company is well- positioned, both, with higher DIP capacity, resulting from the completed and ongoing expansion programmes, and a wider product portfolio.

Your Company has recently started working on a detailed plan for its Long-term Decarbonisation, with individual initiatives being planned to be implemented under the various Impact Centres of the Integrated Improvement Programme framework. Your Company remains committed to providing a safe and healthy work environment for employees and is focused towards achieving "Zero Harm' across all locations.

I sincerely thank all our shareholders for their continued support and confidence in the Company and the Management. I also express my deep gratitude to Government authorities, our customers, suppliers, value chain partners, and other stakeholders for

The medium to long term outlook of both the businesses remains optimistic. Ductile Iron (Dl) Pipe demand, backed by a strong thrust by the government on infrastructure, particularly in the water and sanitation sector through the flagship Jal Jeevan Mission' scheme, could be significantly higher in FY 2023-24. Your Company is well positioned, both, with higher DIP capacity, resulting from the completed and on-going expansion programmes, and a wider product portfolio."

their continued trust and support to the Company. I am also thankful to the Unions for their constructive engagement and support, my colleagues on the Board, the management team an employees, for their significant contributions to the Company during the year.

Warm regards,

Koushik Chatterjee

Chairman.