100th Annual Report 2006-2007 - Tata Steel

esulting in a reduction in consumption of raw materials, energy,
refractories etc.
The Company’s Collieries, for the first time, produced 1.9 million
tonnes of clean coal at a reduced level of ash content, which
has contributed significantly in substituting the more expensive
imported low ash coal. A modern beneficiation plant for iron ore
fines has been set up to reduce the alumina content in iron ore.
Pursuant to the Accounting Standard AS-21 issued by the
Institute of Chartered Accountants of India, consolidated financial
statements presented by the Company includes financial
information of its subsidiaries. The Company has made an
application to the Government of India seeking exemption under
Section 212(8) of the Companies Act, 1956 from attaching the
Balance Sheet, Profit and Loss Account and other documents of
the subsidiary companies to the Balance Sheet of the Company.
The Company will make available these documents / details upon
request by any member of the Company.
Dividend
The Board, for the year ended 31st March, 2007 has recommended
a dividend @ 130% (Rs. 13 per share) and a special dividend @ 25%
(Rs. 2.50 per share), subject to the approval of the shareholders
at the Annual General Meeting. The dividend will be paid on
608,972,856 Ordinary Shares at Rs. 15.50 per share (including
special dividend) (2005-06 : on 553,472,856 Ordinary Shares at
Rs. 13 per share). The dividend pay out works out to 26.15%
(2005-06 : 23.40%).
Acquisition of Corus Group plc, UK
Tata Steel’s investment in Corus Group plc is consistent with
the Company’s stated objective of growth and globalisation.
In keeping with its vision of becoming a truly global player and
creating a 50 million tonne steel capacity by 2015, through both
organic and inorganic growth, the Company had been examining
various opportunities. The process started with the acquisition
of NatSteel Asia Pte. Ltd. (Singapore) in 2005, and Tata Steel
(Thailand) Public Co. Ltd. (erstwhile Millennium Steel) in 2006, the
planned brownfield expansion in Jamshedpur and the long-term
greenfield projects in Orissa, Chhattisgarh and Jharkhand.
In October 2006, the Company submitted a bid to acquire the
UK based steel making company viz. Corus Group plc (Corus).
The acquisition was completed on 2nd April, 2007 at a price of
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