100th Annual Report 2006-2007 - Tata Steel

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Hundredth annual report 2006-07 SCHEDULE M : NOTES ON BALANCE SHEET AND PROFIT AND LOSS ACCOUNT :– continued c) The Company operates post retirement defined benefit plans as follows: a. Funded i. Post Retirement Gratuity b. Unfunded i. Post Retirement Medical Benefits ii. Pensions to Directors iii. Farewell Gifts iv. Packing and Transportation costs on retirement d) Details of the post retirement gratuity plan are as follows: Description Rs. crores 1. Reconciliation of opening and closing balances of obligation a. Obligation as at 1.4.2006 619.06 b. Current Service Cost 25.18 c. Interest Cost 47.52 d. Actuarial (Gain)/Loss 57.79 e. Benefits Paid (54.56) f. Obligation as at 31.3.2007 694.99 The defined benefit obligation as at 31.3.2007 is funded by the Company 2. Change in Plan Assets (Reconciliation of opening & closing balances) a. Fair Value of Plan Assets as at 1.4.2006 630.74 b. Expected return on Plan Assets 48.50 c. Actuarial Gain/(Loss) (18.28) d. Contributions 39.28 e. Benefits Paid (54.56) f. Fair Value of Plan Assets as at 31.3.2007 645.68 3. Reconciliation of fair value of assets and obligations a. Fair Value of Plan Assets as at 31.3.2007 645.68 b. Present Value of Obligation as at 31.3.2007 (694.99) c. Amount recognised in the Balance Sheet (49.31) 4. Expense recognised during the year a. Current Service Cost 25.18 b. Interest Cost 47.52 c. Expected return on Plan Assets (48.50) d. Actuarial (Gain)/Loss 76.07 e. Expense recognised during the year 100.27 The expense is disclosed in the line item – Payments to & Provisions for Employees (Company's contribution to provident & other funds) % invested % invested 5. Investment Details 31.3.2007 1.4.2006 a. GOI Securities 18.38 16.44 b. Public Sector Unit Bonds 36.13 37.56 c. State / Central Guaranteed Securities 7.41 8.27 d. Special Deposit Schemes 29.30 31.26 e. Private Sector Bonds 2.54 2.76 f. Others (including bank balances) 6.24 3.71 100.00 100.00 146 6. Assumptions 31.3.2007 1.4.2006 a. Discount Rate (per annum) 8.25% 7.50% b. Estimated Rate of return on Plan Assets (per annum) 8.00% 7.50% c. Rate of Escalation in Salary (per annum) 5-10% 5.00% The basis used to determine overall expected rate of return on plan assets and the effect on major categories of plan assets is as follows: The major portions of the assets are invested in PSU bonds and Special Deposits. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund assets have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching government bonds.
SCHEDULE M : NOTES ON BALANCE SHEET AND PROFIT AND LOSS ACCOUNT :– continued e) Details of unfunded post retirement defined benefit obligations are as follows: Description Rs. crores Medical Others 1. Reconciliation of opening and closing balances of obligation a. Obligation as at 1.4.2006 466.22 28.91 b. Current Service Cost 5.64 0.91 c. Interest Cost 36.40 2.32 d. Actuarial (Gain)/Loss (21.67) 2.16 e. Benefits Paid (29.49) (1.09) f. Obligation as at 31.3.2007 457.10 33.21 2. Expense recognised during the year a. Current Service Cost 5.64 0.91 b. Interest Cost 36.40 2.32 c. Actuarial (Gain)/Loss (21.67) 2.16 d. Expense recognised during the year 20.37 5.39 The expense amounting to (a) Medical - Rs. 20.37 crores, and (b) Others – Rs. 5.39 crores is disclosed under the line item – Other Expenses (Schedule 4 Page 125) 3. Assumptions a. Discount rate (per annum) on 1.4.2006 7.50% 7.50% b. Discount rate (per annum) on 31.3.2007 8.25% 8.25% c. Medical Costs Inflation Rate 5.00% d. Average Medical Cost (Rs. / person) on 1.4.2006 1,922 e. Average Medical Cost (Rs. / person) on 31.3.2007 1,970 f. Effect of 1% change in health care cost, on 1% Increase – aggregate current service and interest cost 0.26 – closing balance of obligation 60.01 1% Decrease – aggregate current service and interest cost (0.20) – closing balance of obligation (51.11) f) The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors. g) The charge to the profit and loss account for the year ended 31st March, 2007 would have been higher / lower by the following amounts had the basis been the same as that in the year ended 31st March, 2006. Benefit Rs. crores Higher Lower Post Employment Benefits – Unfunded Defined Benefit Plans: Post Retirement Medical Benefits 9.12 Pensions to Directors 0.50 Farewell Gifts on Retirement 0.14 Packing and Transportation Costs on Retirement 3.66 Long Term Benefits: Long Service Awards 0.37 Loyalty Bonus 0.62 Total 10.11 4.30 147
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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
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Management Discussion and Analysis
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of 8%. In 2006, China produced 422.
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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 and 142: Schedules forming part of the balan
Page 143 and 144: SCHEDULE M : NOTES ON BALANCE SHEET
Page 147: 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
Page 193 and 194: Consolidated Cash Flow Statement fo
Page 195 and 196: Schedule forming part of the Consol
Page 197 and 198: Schedules forming part of the Conso
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Schedules forming part of the Conso
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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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