100th Annual Report 2006-2007 - Tata Steel

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Hundredth annual report 2006-07 SCHEDULE K : CURRENT LIABILITIES :— (Item No. 11(A), Page 120) Schedules forming part of the balance sheet As at 31-3-2006 Rupees Rupees Rupees crores crores crores (a) Sundry creditors : (i) For goods supplied [See Note 11, Page 144] ............................ 1093.10 814.88 (ii) For accrued wages and salaries ................................................ 848.45 595.45 (iii) For other liabilities [See Note 11, Page 144] ............................... 1204.44 1123.70 3145.99 2534.03 (b) Subsidiary companies ........................................................................... 102.61 62.37 (c) Interest accrued but not due ................................................................ 47.11 24.29 (d) Advances received from customers .................................................... 198.28 185.07 (e) Liability towards Investors Education and Protection Fund under Section 205C of the Companies Act, 1956 Due as at 31.3.2007 (i) Unpaid Dividends ......................................................................... — — (ii) Application Money Pending Refund ............................................. — — (iii) Unclaimed Matured Deposits (❖ Rs. 25,000) .......................... ❖ 0.01 (iv) Unclaimed Matured Debentures ................................................. — — (v) Interest Accrued on (i) to (iv) above ........................................... 0.03 0.06 Not due as at 31.3.2007 (i) Unpaid Dividends ......................................................................... 23.37 21.55 (ii) Application Money Pending Refund ............................................. 0.01 0.01 (iii) Unclaimed Matured Deposits ...................................................... 2.59 3.80 (iv) Unclaimed Matured Debentures ................................................. 1.76 3.96 (v) Interest Accrued on (i) to (iv) above ........................................... 1.45 0.84 3523.20 2835.99 As at 31.3.2006 Rupees Rupees crores crores Note : Sundry creditors for other liabilities include: Liability for Employees Family Benefit Scheme ................................... 44.87 54.60 SCHEDULE L : PROVISIONS :— (Item No. 11(B), Page 120) As at 31-3-2006 Rupees Rupees crores crores (a) Provision for retiring gratuities (See Note 12(d)(3), Page 146) .......... 49.31 0.81 (b) Provision for employee benefits ........................................................... 470.19 — (c) Provision for taxation ............................................................................ 448.68 250.04 (d) Provision for Fringe Benefits Tax ......................................................... 18.37 2.37 (e) Proposed dividends .............................................................................. 943.91 719.51 1930.46 972.73 Signatures to Schedules 1 to 4 and A to L and Notes on pages 141 to 160 140 Mumbai, 17th May, 2007 J C BHAM Company Secretary For and on behalf of the Board RATAN N TATA NUSLI N WADIA S M PALIA SURESH KRISHNA ISHAAT HUSSAIN JAMSHED J IRANI SUBODH BHARGAVA B MUTHURAMAN T MUKHERJEE A N SINGH } } Chairman Directors Executive Directors
SCHEDULE M : NOTES ON BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 1. Accounting Policies (a) Basis for Accounting The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India, as applicable, and the relevant provisions of the Companies Act, 1956. (b) Revenue Recognition (i) Sales comprises sale of goods and services, net of trade discounts and include exchange differences arising on sales transactions. (ii) Export incentive under the Duty Entitlement Pass Book Scheme has been recognised on the basis of credits afforded in the pass book. (c) Employee Benefits (i) Short-term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered. (ii) Post employment benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate. (iii) Other long-term employee benefits are recognised as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate. (iv) Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account. (v) Miscellaneous Expenditure In respect of the Employee Separation Scheme (ESS), net present value of the future liability for pension payable is amortised equally over five years or upto financial year ending 31st March, 2010, whichever is earlier. The increase in the net present value of the future liability for pension payable to employees who have opted for retirement under the Employee Separation Scheme of the Company is charged to the profit and loss account. (d) Fixed Assets All fixed assets are valued at cost less depreciation. Pre-operation expenses including trial run expenses (net of revenue) are capitalised. Interest on borrowings and financing costs during the period of construction is added to the cost of fixed assets. Blast Furnace relining is capitalised. The written down value of the asset consisting of lining/relining expenditure embedded in the cost of the furnace is written off in the year of fresh relining. (e) Depreciation (I) Capital assets whose ownership does not vest in the Company is depreciated over their estimated useful life or five years, whichever is less. (II) In respect of other assets, depreciation is provided on a straight line basis applying the rates specified in Schedule XIV to the Companies Act, 1956 or based on estimated useful life whichever is higher. The details of estimated life for each category is as under : (i) Buildings — 30 to 62 years. (ii) Plant and Machinery — 6 to 21 years. (iii) Railway Sidings — 21 years. (iv) Vehicles and Aircraft — 6 to 18 years. (v) Furniture, Fixtures and Office Equipment — 5 to 10 years. (vi) Intangibles (Computer Software) — 5 to 10 years. (vii) Development of property for development of mines and collieries are depreciated over the useful life of the mine or lease period whichever is less, subject to maximum of 10 years. (viii) Blast Furnace relining is depreciated over a period of 10 years (average expected life). (ix) Freehold land is not depreciated. (x) Leasehold land is amortised over the life of the lease. (xi) Roads — 30 to 62 years. (f) Foreign Currency Transactions Foreign Currency Transactions (FCT) and forward exchange contracts used to hedge FCT (including firm commitments and forecast transactions) are initially recognised at the spot rate on the date of the transaction/contract. Monetary assets and liabilities relating to foreign currency transactions and forward exchange contracts remaining unsettled at the end of the year are translated at year end rates. The differences in translation and realised gains and losses on foreign exchange transactions (including option contracts), other than those relating to fixed assets are recognised in the profit and loss account. Further in respect of transactions covered by forward exchange contracts, the differences between the contract rate and the spot rate on the date of the transaction is charged to the profit and loss account over the period of the contract. Exchange difference relating to monetary items that are in substance forming part of the Company’s net investment in non integral foreign operations are accumulated in Foreign Exchange Fluctuation Reserve Account. Exchange differences (including arising out of forward exchange contracts) in respect of liabilities incurred to acquire fixed assets prior to April 1, 2004, are adjusted to the carrying amount of such fixed assets. (g) Investments Long term investments are carried at cost less provision for permanent diminution in value of such investments. Current investments are carried at lower of cost and fair value. When investment is made in partly convertible debentures with a view to retain only the convertible portion of the debentures, the excess of the face value of the non-convertible portion over the realisation on sale of such portion is treated as a part of the cost of acquisition of the convertible portion of the debenture. 141
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A Century of Trust 100th Annual Rep
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Tata Steel is Asia’s first and In
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Redefining steel with world-class p
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in a manner that ring-fences the Co
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Board of Directors Mr. R. N. Tata C
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The state-of-the-art Hot Strip Mill
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Distribution of Revenue 2006 - 2007
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1907-2007 JRD Tata with Pandit Jawa
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1907-2007 Tata Steel’s state-of-t
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This photograph taken by a Tata Ste
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Profit Sharing Bonus was granted fo
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A modern swimming pool at the G Tow
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steeljunction in Kolkata - India’
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Tata Steel has introduced high-end
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Tata Structura is a new-age constru
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Shareholder interaction at an Annua
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Within three weeks of the announcem
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It was 1956. The company was faced
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Community and environment : Improvi
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A Critical Care Unit, in the 850-be
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The Tata Steel Family Initiatives F
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The Tata Steel works, mines, collie
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An aerial view of the planned indus
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The Cold Rolling Complex at Jamshed
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1933 Two new roughing and finishing
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From the early days, the Tata Steel
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Production Highlights • The best
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Aspire with T3 With the objective o
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Operational Highlights NSA increase
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was above the average total score o
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Blast furnaces at Corus’ integrat
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Corus produces strong, light steel
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Corus is British Triathlon’s main
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Review of Corporate Sustainability
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TSRDS focused on popularising repro
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Centenary Year The founder, Jamsetj
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esulting in a reduction in consumpt
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convertible preference shares and a
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expansion of crude steel making cap
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The bulk cargo berths are being des
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Corporate Governance Pursuant to Cl
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Annexure 'A' to Directors’ Report
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Form - B Form for disclosure of par
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6 am 2 pm 12 noon 10 am 8 am 8 pm 6
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Particulars of technology imported
Page 91 and 92: Management Discussion and Analysis
Page 93 and 94: of 8%. In 2006, China produced 422.
Page 95 and 96: The Company plans to achieve these
Page 97 and 98: I. Strategic Rationale for acquisit
Page 99 and 100: Steelium (India’s first branded c
Page 101 and 102: The “G” Blast Furnace in Jamshe
Page 103 and 104: Sales of manganese ore in the domes
Page 105 and 106: d) Payments and Provisions to Emplo
Page 107 and 108: m) Stores and Spare Parts and Stock
Page 109 and 110: The Company generated EVA of Rs. 2,
Page 111 and 112: Business and Operational Risk The m
Page 113 and 114: • Raising cost efficient funds fo
Page 115 and 116: Highlights 2006-07 2005-06 Rupees R
Page 117 and 118: Auditors’ Report TO THE MEMBERS O
Page 119 and 120: (b) In our opinion and having regar
Page 121 and 122: (xii) In our opinion and according
Page 123 and 124: Profit and Loss Account for the yea
Page 125 and 126: Cash Flow Statement for the year en
Page 127 and 128: Schedule forming part of the profit
Page 129 and 130: Schedule forming part of the balanc
Page 141: Schedules forming part of the balan
Page 145 and 146: SCHEDULE M : NOTES ON BALANCE SHEET
Page 163 and 164: Balance Sheet Abstract and Company'
Page 165 and 166: CAPITAL ACCOUNTS Financial Statisti
Page 167 and 168: Financial Ratios 2006-07 2005-06 20
Page 169 and 170: Name Category No. of Whether No. of
Page 171 and 172: the Tata Code of Conduct, which req
Page 173 and 174: Shareholding of the Directors in th
Page 175 and 176: Committees In addition to the above
Page 177 and 178: employees to report concerns about
Page 179 and 180: Market Information Market Price Dat
Page 181 and 182: Distribution of Shareholding Number
Page 183 and 184: Address for Correspondence : Tata S
Page 185 and 186: Certificate To the Members of TATA
Page 187 and 188: Statement pursuant to Section 212(8
Page 189 and 190: 4. Subject to the matters referred
Page 191 and 192: Consolidated Profit and Loss Accoun
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Consolidated Cash Flow Statement fo
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Schedule forming part of the Consol
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Schedules forming part of the Conso
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SCHEDULE N : NOTES TO THE CONSOLIDA
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The Dimna reservoir near Jamshedpur
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100th Annual Report 2006-2007 - Tata Steel

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