Section 1

3. Business Description Overview

3.1 Significant changes and development

For the fiscal year 2008-2009, the significant changes and development
of the Company are summarized as follows:

+-------------+--------------------------------------------------------+
| Year 2008   |                                                        |
+-------------+--------------------------------------------------------+
| April       | -   The investment budget of Mini Blast Furnace        |
|             |     Project was increased from the previous of Baht    |
|             |     3,400 - 3,600 million to be Baht 3,800 million.    |
|             |     The project is expected to finish in the second    |
|             |     quarter of 2009, delayed from the previous         |
|             |     schedule of the third quarter of 2008, due to the  |
|             |     delay of construction.                             |
+-------------+--------------------------------------------------------+
| May         | -   The Company paid the dividend payment for the year |
|             |     2007-2008 to the preferred shareholders and        |
|             |     ordinary shareholders whose name appeared in the   |
|             |     book closing date on June 30, 2008. The dividend   |
|             |     per share was Baht 0.076, totaling cash payment of |
|             |     Baht 640,037,104.45, being 20% of its net profit   |
|             |     after the deduction of legal reserve on August 20, |
|             |     2008.                                              |
+-------------+--------------------------------------------------------+
| October     | -   Restructuring of shareholdings among Tata Steel    |
|             |     Group Companies, the major shareholders of TSTH    |
|             |     has been changed to Tata Steel Global Holdings     |
|             |     Pte. Ltd. (Formerly are from Tata Steel Limited    |
|             |     and NatSteel Asia Pte. Ltd.)                       |
+-------------+--------------------------------------------------------+
| November    | -   With the evaluation award under Corporate          |
|             |     Governance Report of Thai Listed Companies 2008    |
|             |     co-organized by the Thai Institute of Directors    |
|             |     Association (IOD), the Stock Exchange of Thailand  |
|             |     (SET) and the Securities and Exchange Commission   |
|             |     (SEC), the Company was gauged as “very good”.      |
+-------------+--------------------------------------------------------+

On March 2007, the Company’s major shareholder had been changed from
Cementhai Holding Company Limited (“CHC”) to Tata Steel Limited (“TSL”).
Due to the agreement of CHC to sell total shareholdings to TSL, which
now called Tata Steel Global Holdings Pte. Ltd. (“TSGH”). At present,
TSGH held 5,718,472,083 shares, constituting a 67.90 percent of the paid
up capital.

3.2 Business Description of the Company and its subsidiaries

1)  Overall Business Description of the Company and its subsidiaries

  The Company’s nature of business is a holding Company in which its
  subsidiaries comprises NTS, SISC and SCSC, all of which are
  manufacturer of steel, rebars, wire rods, small sections, special bars
  and others.

  The Company has set out the policy for its overall business operations
  and the management policy. Other three subsidiaries manage their
  individual business operation in compliance with the policy set forth
  by the Company in terms of marketing, production plan, raw material
  procurement, finance, human resource management and any other related
  managements.

  At present, the major shareholder of the Company is Tata Steel Global
  Holdings Pte. Ltd. (“TSGH”), the wholly-owned 100% by Tata Steel
  Limited (“TSL”), has been set up as a holding company, headquartered
  in Singapore. For TSL, is the listed company under the India Law. It
  is one of the largest integration steel producers in India (in term of
  production capacity). Tata Steel Limited has various types of steel
  products such as hot rolled coil, cold rolled coil, sheet, rebar, wire
  rod, etc. The target customer of TSL is mainly in India only while the
  Company’s target customers emphasized on domestic customers,
  accounting for 91% of the overall production while the export goods
  are different type of product. Although TSL operates in steel
  business, as same as the Company, the products of TSL are much more
  various and target customer group is different. Moreover, TSL has
  business operation objective to create synergy within the group. As
  the Company operates in the same business with Tata Steel, it would
  likely to enhance the potential of the Company and therefore does not
  create any conflict of interest in the business operation of the
  Company.

2)  Business policy for individual subsidiary

  The Company has set out policy for business operation to allocate the
  production capacity for each plant to ensure continued mass production
  of products at the lowest cost of production. Hence, the Company
  allocates its production capacity for each product as follows:

1.  NTS – Manufacturer of rebars and wire rods

2.  SISC – Manufacturer of high value-added products including high
    carbon wire rods, special quality wire rods, small sections and
    special bars

3.  SCSC – Manufacturer of rebars

  In addition, the Company considers the allocation of the use of
  production capacity for each plant to best suit the circumstances for
  the best interest of the Company group for instance, industry outlook
  and the efficiency of machinery and etc.

3)  Shareholding Structure

+--------------------------+-------------+-------------+--------------+
| Subsidiary               | Paid up     | Business    | Product      |
|                          | Capital     | Type        |              |
|                          |             |             |              |
|                          | (Million    |             |              |
|                          | Baht)       |             |              |
|                          |             |             |              |
|                          | As at       |             |              |
|                          |             |             |              |
|                          | March 31,   |             |              |
|                          | 2009        |             |              |
+--------------------------+-------------+-------------+--------------+
| N.T.S. Steel Group Plc.  | 3,253.40    | Manufacture | Rebars and   |
|                          |             | steel       | wire rods    |
| (“NTS”)                  |             |             |              |
+--------------------------+-------------+-------------+--------------+
| The Siam Iron and Steel  | 120.00      | Manufacture | Wire rods    |
| (2001) Co., Ltd.         |             | steel       | and small    |
|                          |             |             | sections     |
| (“SISC”)                 |             |             |              |
+--------------------------+-------------+-------------+--------------+
| The Siam Construction    | 1,750.00    | Manufacture | Rebars       |
| Steel Co.,Ltd.           |             | steel       |              |
|                          |             |             |              |
| (“SCSC”)                 |             |             |              |
+--------------------------+-------------+-------------+--------------+

3.3 Structure of Revenue

The proportions of the Company’s revenue from the sales by product
lines, as produced by subsidiaries, are as follows:

  ------------------ -- -- ---------- -------- -------- ---------- -- --------- --------- -------- ---------- ------- --------- --------- --------
                           Audited                                    Audited                                         Audited             

  Line of Products         Year                                       Year                                            Jan – Mar           
                           2008 -                                     2007 -                                          2007                
                           2009                                       2008                                                                

                           (Million            %        (Million                          %        (Million                               %
                           Baht)                        Baht)                                      Baht)                                  

                                                                                                                                          

  Domestic Market                                                                                                                         

  Rebars                   16,062              54.72                            18,654    59.91               3,635                       59.11

  Wire Rods                7,684               26.18                            7,808     25.07               1,560                       25.37

  Small Sections           885                 3.02                             1,188     3.82                272                         4.42

  Special Bars             834                 2.84                             667       2.14                166                         2.70

  Others                   349                 1.19                             175       0.56                44                          0.71

  Total Revenues           25,814              87.94                            28,492    91.50               5,677                       92.32
  from Domestic                                                                                                                           
  Sales                                                                                                                                   

                                                                                                                                          

  Exports                                                                                                                                 

  Rebars                   2,100               7.15                             1,378     4.43                432                         7.03

  Wire Rods                805                 2.74                             229       0.73                36                          0.59

  Small Sections           3                   0.01                             -         -                   -                           -

  Special Bars             309                 1.05                             386       1.24                4                           0.07

  Others                   322                 1.10                             654       2.10     -          -                           -

  Total Revenues           3,539               12.06                            2,647     8.50                472                         7.68
  from Exports                                                                                                                            

                                                                                                                                          

  Total Revenues                      29,353   100.00                           31,139    100.00                                6,149     100.00
  ------------------ -- -- ---------- -------- -------- ---------- -- --------- --------- -------- ---------- ------- --------- --------- --------