100th Annual Report 2006-2007 - Tata Steel

Hundredth annual report 2006-07
Tata Steel Limited and its Subsidiaries
Auditors’ Report on Consolidated Financial Statements
TO THE BOARD OF DIRECTORS OF TATA STEEL LIMITED
1. We have audited the attached Consolidated Balance Sheet of TATA STEEL LIMITED (“the Company”) and its
subsidiaries (the Company and its subsidiaries constitute “the Group”) as at 31st March, 2007, and also the
Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that
date both annexed thereto, in which are incorporated the returns from the Singapore Branch not audited by us.
These financial statements are the responsibility of the Company’s management and have been prepared by
the management on the basis of separate financial statements and other financial information regarding
components. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. These Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
3. (a) We did not audit the financial statements of subsidiaries, whose financial statements reflect total assets
(net) of Rs. 18,832.67 crores as at 31st March, 2007, total revenue of Rs. 9,066.73 crores and net cash
flows amounting to Rs. 2,235.92 crores for the year then ended. These financial statements and other
financial information have been audited by other auditors whose reports have been furnished to us and
our opinion is based solely on the report of other auditors.
(b)
(c)
(d)
(e)
Attention is invited to Note 15 of Schedule N regarding investment of Rs. 11,522.97 crores in Corus
Group plc (“Corus”) and the financial statements of Corus not being considered for consolidation for the
reasons stated therein.
As stated in Note 16 of Schedule N, in the case of certain subsidiaries of the Company, having total
assets (net) Rs. (14.71) crores as at 31st March, 2007 and total revenue of Rs. 17.31 crores for the year
ended 31st March, 2007, the figures used for the consolidation are based on the management’s estimates
and are therefore unaudited.
As stated in Note 10 of Schedule N, in the case of Southern Steel Berhad, Malaysia (“SSB”) which is an
associate company of NatSteel Asia Pte. Ltd., (“NatSteel”) a subsidiary, the auditors of NatSteel have
reported that the carrying value is arrived at by NatSteel after accounting for its share of results in SSB’s
profit after tax and minority interest and translation gain of Rs. 35.65 crores and Rs. 0.39 crore respectively
for the year ended on 31st March, 2007. The figures used for equity accounting for SSB’s results for the
year ended 31st March, 2007 are based on the management’s estimates and are therefore unaudited.
As stated in Note 1 of Schedule N, in the case of certain associates, the financial statements as on
31st March, 2007 are not available. The investments in these associates valued at Re. 1 in the Financial
Statements of the Company, have not been adjusted in the Consolidated Financial Statements in the
absence of their financial statements as on 31st March, 2007.
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