Clarification on serious fraud office investigations
|The Secretary, Listing Department||The Manager, Listing Department|
|BSE Limited||National Stock Exchange of India Limited|
|Phiroze Jeejeebhoy Towers,||Exchange Plaza, 5th Floor, Plot No. C/1,|
|Dalal Street,||G Block, Bandra-Kurla Complex, Bandra (E),|
|Mumbai - 400 001.||Mumbai - 400051.|
|Maharashtra, India.||Maharashtra, India.|
|Scrip Code: 500470||Symbol: TATASTEEL|
Dear Sirs/ Madam,
This refers to the media reports on the Serious Fraud Office investigations.
Tata Steel UK (a subsidiary of Tata Steel Europe) would like to clarify its position that this matter relates to events in 2015 when during an internal audit conducted by the Company, certain inappropriate testing and certification procedures at the South Yorkshire-based Speciality Steels business were identified. Speciality Steels produces around 225,000 tonnes of steel, comprising around 3% of Tata Steel Europe’s total output, and £275m of turnover. It is Tata Steel Europe’s only Electric Arc Furnace based business.
A full investigation was initiated internally and undertaken with the help of experts. Tata Steel UK took immediate action to address the issues uncovered. The practices were immediately stopped. A detailed investigation was carried out by a technical team from outside the Speciality Steel business, and its conclusions were verified by independent experts. The investigation found that the steel affected and supplied was always well within safety margins. Affected stock was quarantined and assessed, and was either scrapped, transferred to another order or released as appropriate. A number of Speciality Steels personnel were suspended.
In 2015 itself Tata Steel UK proactively notified the relevant bodies as soon as was practicable after the internal investigation had reached conclusions. These bodies included accreditation and certification bodies. A detailed dialogue has been undertaken with these bodies, who have undertaken their own investigations. These investigations have confirmed the thoroughness and adequacy of Tata Steel’s response, risk assessment and disclosure programme. No accreditation has been withdrawn from Speciality Steels.
There was a wide ranging program of customer contact. Over 450 direct and 150 indirect customers have been informed. There have been no recalls of material in service by any customer and no customer has brought a legal claim to date.
Amongst other bodies proactively notified by Tata Steel UK was the Serious Fraud Office, which has opened a criminal investigation. Since this initial notification Tata Steel has been cooperating fully with the Serious Fraud Office on their investigation. It is not appropriate for Tata Steel to comment on that investigation.
This is for your information and records.
Tata Steel Limited