TATA STEEL LIMITED
ANNUAL REPORT 2010-2011
NOTES ON ACCOUNTS
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 notified under Section 211(3C)
of the Companies Act, 1956 and the relevant provisions thereof.
(b) Revenue Recognition:
(i) Sales comprises sale of goods and services, net of trade discounts.
(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, as 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 market yield on government
bonds, as on the date of balance sheet.
(iv) Actuarial gains and losses in respect of post employment and other
long-term benefits are charged to the Profit and Loss Account.
(v) In respect of the Employee Separation Scheme (ESS), 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.
Borrowing costs during the period of construction is added to the cost of
eligible 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 rates based on estimated useful life whichever is higher.
However, asset value upto Rs. 25,000 is fully depreciated in the year of
acquisition. The details of estimated life for each category of asset is as
under:
(i) Buildings - 30 to 62 years
(ii) Plant and Machinery - 4 to 21 years
(iii) Railway Sidings - 21 years
(iv) Vehicles and Aircraft - 5 to 18 years
(v) Furniture, Fixtures and Office Equipment - 4 to 5 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 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 company has opted for accounting the exchange differences arising on
reporting of long term foreign currency monetary items in line with
Companies (Accounting Standards) Amendment Rules 2009 relating to
Accounting Standard 11 (AS-11) notified by Government of India on 31st
March, 2009. Accordingly the effect of exchange differences on foreign
currency loans of the company is accounted by addition or deduction to the
cost of the assets so far it relates to depreciable capital assets and in
other cases by transfer to 'Foreign Currency Monetary Items Translation
Difference Account' to be amortised over the balance period of the long-
term monetary items or period upto 31st March, 2011 whichever is earlier.
The differences in translation of FCT and forward exchange contracts used
to hedge FCT (excluding the long term foreign currency monetary items
accounted in line with Companies (Accounting Standards) Amendment Rules
2009 on Accounting Standard 11 notified by Government of India on 31st
March, 2009) and realised gains and losses, other than those relating to
fixed assets are recognised in the Profit and Loss Account. The outstanding
derivative contracts at the balance sheet date other than forward exchange
contracts used to hedge FCT are valued by marking them to market and
losses, if any, are recognised in the Profit and Loss Account.
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.
(g) Investments
Long term investments are carried at cost less provision for diminution
other than temporary, if any, in value of such investments. Current
investments are carried at lower of cost and fair value.
(h) Inventories
Finished and semi-finished products produced and purchased by the Company
are carried at lower of cost and net realisable value. Work-in-progress is
carried at lower of cost and net realisable value.
Coal, iron ore and other raw materials produced and purchased by the
Company are carried at lower of cost and net realisable value.
Stores and spare parts are carried at cost. Necessary provision is made and
charged to revenue in case of identified obsolete and non-moving items.
Cost of inventories is generally ascertained on the 'weighted average'
basis. Work-in-progress and finished and semi-finished products are valued
on full absorption cost basis.
(i) Relining Expenses
Relining expenses other than expenses on Blast Furnace relining are charged
as an expense in the year in which they are incurred.
(j) Research and Development
Research and Development costs (other than cost of fixed assets acquired)
are charged as an expense in the year in which they are incurred.
(k) Deferred Tax
Deferred Tax is accounted for by computing the tax effect of timing
differences which arise during the year and reverse in subsequent periods.
2. Contingent Liabilities
(a) Guarantees
The Company has given guarantees aggregating Rs. 991.11 crores (31.03.2010:
Rs.355.28 crores) to banks and financial institutions on behalf of others.
As at 31st March, 2011, the contingent liabilities under these guarantees
amounted to Rs. 991.11 crores (31.03.2010 : Rs. 355.28 crores).
(b) Claims not acknowledged by the Company
As at As at
31.03.2011 31.03.2010
Rs. crores Rs. crores
(i) Excise 313.26 296.59
(ii) Customs 13.68 13.68
(iii) Sales Tax and VAT 494.54 587.97
(iv) State Levies 187.28 173.62
(v) Suppliers and Service Contract 72.21 71.02
(vi) Labour Related 38.84 36.92
(vii) Income Tax 119.79 143.44
(c) Claim by a party arising out of conversion arrangement - Rs. 195.82
crores (31.03.2010 : Rs. 195.82 crores). The Company has not acknowledged
this claim and has instead filed a claim of Rs. 139.65 crores (31.03.2010 :
Rs. 139.65 crores) on the party. The matter is pending before the Calcutta
High Court.
(d) The Excise Department has raised a demand of Rs. 235.48 crores
(31.03.2010 : Rs.235.48 crores) denying the benefit of Notification No.
13/2000 which provides for exemption to the integrated steel plant from
payment of excise duty on the freight amount incurred for transporting
material from plant to stock yard and consignment agents. The Company filed
an appeal with CESTAT, Kolkata and the order of the department was set
aside. The department has filed an appeal in Supreme Court where the matter
is pending.
(e) TMT bars and rods in coil form are sent to external processing agents
(EPA) for decoiling and cutting into specified lengths before the products
are despatched for sale. Excise department demanded duty from the EPA,
holding the activity as manufacture and ignoring the payment of duty made
by Tata Steel. An appeal against the order of the Commissioner of Central
Excise, Jamshedpur was filed in CESTAT, Kolkata and was allowed in favour
of the EPA. Subsequently, the department challenged the same in Jharkhand
High Court, Ranchi, which is still pending for hearing. Subsequent demands
in this regard have not been adjudicated. The liability till 31st March
2011, if materialises, will be to the tune of Rs. 298.87 crores (31.03.2010
: Rs.291.22 crores). However, the company has already paid duty amounting
to Rs. 196.48 crores (2009-10: Rs. 189.52 crores) till date based on the
final sale price of the material.
(f) The State Government of Odisha introduced 'Orissa Rural Infrastructure
and Socio Economic Development Act 2004' with effect from February 2005
levying tax on mineral bearing land computed on the basis of value of
minerals produced from the mineral bearing land. The Company had filed a
Writ Petition in the High Court of Odisha, challenging the validity of the
Act. Odisha High Court held in November 2005 that State does not have
authority to levy tax on minerals. The State Government of Odisha moved the
Supreme Court against the order of Odisha High Court and the case is
pending with Supreme Court. The liability, if it materialises, as at
31.03.2011 would be Rs. 1,562.72 crores (31.03.2010 : Rs. 1,277.74 crores).
(g) In terms of the agreements entered into between Tata Teleservices Ltd.
(TTSL), Tata Sons Ltd. (TSL) and NTT DoCoMo, Inc. of Japan (Strategic
Partner-SP), the Company was given by Tata Sons an option to sell 52,46,590
equity shares in TTSL to the SP, as part of a secondary sale of
25,31,63,941 equity shares effected along with a primary issue of
84,38,79,801 shares by TTSL to the SP. Accordingly, the company realised
Rs. 60.91 crores on sale of these shares resulting in a profit of Rs. 49.77
crores during the year ended March 31, 2009.
Pursuant to the Rights Issue made in 2010-11, SP's shareholding in TTSL has
increased from 1,09,70,43,742 equity shares of Rs.10 each to 1,17,26,17,866
equity shares of Rs. 10 each as on March 31, 2011. The shareholding of SP
represents 26.27% of the paid up equity share capital of TTSL on a fully
diluted basis as against 26.01% prior to the issuance and allotment of
Rights Shares to them. If certain performance parameters and other
conditions are not met, should the SP decide to divest its entire
shareholding in TTSL, acquired under the primary issue and the secondary
sale, and should TSL be unable to find a buyer for such shares, the Company
is obligated to acquire the shareholding of the SP, at the higher of fair
value or 50 percent of the subscription purchase price, in proportion of
the number of shares sold by the company to the aggregate of the secondary
shares sold to the SP, or if the SP divests the shares at a lower price pay
a compensation representing the difference between such lower sale price
and the price referred to above. Further, in the event of breach of the
representations and warranties (other than title and tax) and covenants not
capable of specific performance, the Company is liable to reimburse TSL, on
a pro rata basis, upto a maximum sum of Rs. 78.75 crores. The exercise of
the option by SP being contingent on several variables the liability, if
any, is remote and indeterminable.
(h) The Company has been paying royalty on coal extracted from its quarries
pursuant to the judgement and order dated 23.07.2002 passed by the
Jharkhand High Court. However, the State Government demanded royalty on
processed coal at rates applicable to processed coal. Though the Company
has contested the above demand, it has started paying, under protest,
royalty on processed coal from November 2008. The incremental royalty, paid
under protest, during November 2008 to March 2011 of Rs. 54.22 crores has
been charged off to Profit and Loss Account. The incremental amount
(including interest), if payable, for the period till October 2008 works
out to Rs. 355.95 crores (31.03.2010 : Rs.344.19 crores) and has been
considered as a contingent liability.
(i) Uncalled liability on partly paid shares and debentures Rs. 0.01 crore
(31.03.2010 : Rs.0.01 crore). (j) Bills discounted Rs. 212.38 crores
(31.03.2010 : Rs.274.55 crores).
3. The Company has given undertakings to: (a) ICICI Bank Ltd. (formerly
ICICI), IFCI and IIBI not to dispose of its investment in the Indian Steel
Rolling Mills Ltd. (ISRM). The ISRM is under liquidation. (b) IDBI not to
dispose of its investment in Wellman Incandescent India Ltd. (c) IDBI and
ICICI Bank Ltd. (formerly ICICI) not to dispose of its investment in
Standard Chrome Ltd. (d) Standard Chartered Bank, Hong Kong and Shanghai
Banking Corporation not to dispose of majority stake in Tata Steel (KZN)
(Pty) Ltd. (e) Mizuho Corporate Bank Limited, not to dispose of its
investments in Tata NYK Shipping Pte. Limited, (minimal stake required to
be able to provide a corporate guarantee towards long term debt). (f) Bank
of America, NA and the Royal Bank of Scotland, NV not to dispose of the
management control (indirectly held) in Tata Steel Global Procurement Co.
Pte Ltd. (g) State Bank and others not to dispose of its investment in
Centennial Steel Company Ltd. (CSCL) below 51% of CSCL's paid up equity
share capital. (h) State Bank of India not to dispose of the management
control (indirectly held) in Tata Steel UK Holdings Ltd. and Tata Steel
Netherlands Holding B V and other companies (the borrower group), without
the prior consent of the respective financial institutions/banks so long as
any part of the loans/facilities sanctioned by the institutions/banks to
these companies remains outstanding.
The Company has furnished a Security Bond in respect of its immovable
property to the extent of Rs. 20 crores in favour of the Registrar of the
Delhi High Court and has given an undertaking not to sell or otherwise
dispose of the said property.
The Promoters of Tata BlueScope Limited (TBSL) (i.e. BlueScope Steel
Limited, Australia and Tata Steel Ltd.) have given an undertaking to IDBI
Trusteeship Services Ltd., Debenture Trustees, not to dispose of the
management control in TBSL.
The Promoters' (i.e. L & T Infrastructure Development Projects Ltd. and
Tata Steel Ltd.) combined investments in The Dhamra Port Company Ltd.,
(DPCL) representing 51% of DPCLs paid-up equity share capital are pledged
with IDBI Trusteeship Services Ltd.
The Promoters' (i.e. The Tata Power Company Limited and Tata Steel Ltd.)
combined investments in Industrial Energy Limited, (IEL) representing 51%
of IEL's paid-up equity share capital are pledged with Infrastructure
Development Corporation Limited (IDFC).
The Company has agreed, if requested by Tata Steel UK Holdings Ltd.
(TSUKH), an indirect wholly owned subsidiary, to procure an injection of
funds to reduce the outstanding net debt in TSUKH and its subsidiaries, to
a mutually accepted level.
4. The Company had, on 20th August, 2005, signed an agreement with the
Government of Jharkhand to participate in a special health insurance scheme
to be formulated by the Government of Jharkhand for the purpose of
providing medical facilities to the families of the people below poverty
line. The state government would develop a suitable scheme and the Company
has agreed to contribute to such scheme, when operational, a sum of Rs. 25
crores annually for a period of 30 years or upto the year of operation of
the scheme whichever is less. The scheme is yet to be formed and no
contribution has been made till 31st March, 2011.
5. The Board of Industrial and Financial Reconstruction (BIFR) sanctioned a
scheme for rehabilitation of The Indian Steel and Wire Products Limited
(ISWP), a sick company in FY 2003-04. In terms of the scheme, the Company -
(a) took management control of ISWP; (b) acquired 4,74,130 Equity Shares
from the existing promoters at Rs. 1/- per share; (c) converted Rs. 5.00
crores of dues into 50,00,000 fully paid Equity Shares at Rs. 10 each and
Rs. 10.88 crores into unsecured loan to be repaid by ISWP in 8 annual
installments starting from FY 2004-05; (d) has an advance of Rs. 11.50
crores as at 31.03.2011 (31.03.2010 : Rs. 14.91 crores) with ISWP towards
one time settlement with financial institutions for capital expenditure and
margin for working capital.
6. Estimated amount of contracts remaining to be executed on Capital
Account and not provided for : Rs.9,605.46 crores (31.03.2010 :
Rs.10,698.54 crores).
7. The Company has taken on lease Plant and Machinery, having an aggregate
cost of Rs.3.79 crores (31.03.2010 : Rs.3.79 crores). The element of the
lease rental applicable to the cost of the assets has been charged to the
Profit and Loss Account over the estimated life of the asset and financing
cost has been allocated over the life of the lease on an appropriate basis.
The total charge to the Profit and Loss Account for the year is Rs.0.26
crore (2009-10 : Rs.0.62 crore). The break up of total minimal lease
payments due as at 31st March, 2011 and their corresponding present value
are as follows :
Rs. crores
As at 31.03.2011 As at 31.03.2010
Period Minimum Lease Present Value Minimum Lease Present Value
Payments Payments
Not later
than one
year - - 0.26 0.25
Later than
one year but
not later than
five years - - - -
Later than
five years - - - -
Total - - 0.26 0.25
8. Profit and Loss Account
a)i) Provision for employee separation compensation (ESS) has been
calculated on the basis of net present value of the future monthly payments
of pension and lump sum benefits under the scheme including Rs.27.53 crores
(31.03.2010: Rs.46.34 crores) in respect of schemes introduced during the
year.
ii) The amounts payable within one year under the ESS aggregates to
Rs.175.27 crores (31.03.2010 : Rs.192.85 crores).
b) The manufacturing and other expenses and depreciation shown in the
Profit and Loss Account include Rs.72.90 crores (200910 : Rs.39.49 crores)
and Rs.2.79 crores (2009-10 : Rs.1.94 crores) respectively in respect of
Research and Development activities undertaken during the year.
c) The company has opted for accounting the exchange differences arising on
reporting of long term foreign currency monetary items in line with
Companies (Accounting Standards) Amendment Rules 2009 relating to
Accounting Standard 11 (AS-11) notified by Government of India on 31st
March, 2009 which allows foreign exchange difference on long-term monetary
items to be capitalised to the extent they relate to acquisition of
depreciable assets and in other cases to amortise over the period of the
monetary asset/liability or the period up to 31st March, 2011, whichever is
earlier.
As on 31st March, 2011, Rs.Nil (31.03.2010 : Credit of Rs.206.95 crores)
remains to be amortised in the 'Foreign Currency Monetary Items Translation
Difference Account' after taking a credit of Rs.261.44 crores (2009-10:
Charge of Rs.85.67crores) in the Profit & Loss Account and Rs.2.07 crores
(net of deferred tax Rs.3.57 crores) [2009-10 : Rs.47.35 crores (net of
deferred tax Rs.24.38 crores)] adjusted against Securities Premium Account
during the current financial year on account of amortisation. The
Depreciation for the year ended 31st March, 2011 is higher by Rs.0.48 crore
(2009-10 : Rs.0.41 crore) and the Profit before taxes for the year ended
31st March, 2011 is higher by Rs.208.99 crores (2009-10 : Lower by
Rs.561.60 crores).
9. Other Significant Disclosures
a) The Company completed a further public issue of equity shares of face
value f10 each for cash at a price of Rs.610 per equity share, including
premium of Rs.600 per equity share, aggregating to Rs.3,477 crores. The
Company completed allotment of 5,70,00,000 equity shares on 29th January,
2011.
The proceeds of the issue have been utilised as under : Rs.Crores
Gross Proceeds of the Issue 3,477.00
Utilisation of funds upto 31st March, 2011 Object of Actual
the issue
Part finance the capital expenditure for
expansion of the Company's existing works
at Jamshedpur 1,875.00 -
Payment of redemption amounts on maturity
of certain redeemable non-convertible
debentures issued by the Company on a
private placement basis 1,090.00 -
General corporate purposes 390.30 -
Issue Related Expenses 121.70 57.12
Total 3,477.00 57.12
Unutilised Amount represented by:
Investments in Mutual Funds 1,014.27
Deposits with Banks 2,400.00
Bank Balance 5.61
Total 3,477.00
b) The Company has, on a preferential basis, issued the following
securities to Tata Sons Limited, in accordance with the provisions of SEBI
(Issue of Capital and Disclosure Requirements) Regulations, 2009 (SEBI ICDR
Regulations 2009).
i) 1,50,00,000 Ordinary Shares of Rs.10 each at a price of Rs.594 per share
aggregating to Rs.891 crores.
ii) 1,20,00,000 Warrants, where each Warrant would entitle Tata Sons
Limited to subscribe to one Ordinary Share of the Company at a price of
Rs.594 per share. As per the SEBI ICDR Regulations 2009, an amount
equivalent to 25% of the price i.e. Rs.148.50 per Warrant aggregating to
Rs.178.20 crores has been received from Tata Sons Limited on allotment of
the Warrants.
c) The Company has raised Rs.1,500 crores through the issue of Hybrid
Perpetual Securities in March 2011. These securities are perpetual in
nature with no maturity or redemption and are callable only at the option
of the Company. The Distribution on the securities, which may be deferred
at the option of the Company under certain circumstances, is set at 11.80%
p.a., with a step up provision if the securities are not called after 10
years. As these securities are perpetual in nature and ranked senior only
to share capital of the Company, these are not classified as 'debt' and the
distribution on such securities amounting to Rs.4.54 crores (net of tax)
not considered in 'Net Finance Charges'.
d) The amount due to Micro and Small Enterprises as defined in the 'The
Micro, Small and Medium Enterprises Development Act, 2006' has been
determined to the extent such parties have been identified on the basis of
information available with the Company. The disclosures relating to Micro
and Small Enterprises as at 31st March, 2011 are as under:
Rs. crores
Sl. Description 2010-11 2009-10
No.
1. The principal amount remaining unpaid to
supplier as at the end of accounting year
[included in Item (a)(i)(1) to Schedule K -
Page 154] 0.86 1.40
2. The interest due thereon remaining unpaid
to supplier as at the end of accounting year * 0.02
3. The amount of interest paid in terms of
Section 16, along with the amount of payment
made to the supplier beyond the appointment
day during the year 2009-10 - -
4. The amount of interest due and payable for
the period of delay in making payment (which
have been paid but beyond the appointed day
during the year) but without adding the
interest specified under this Act 0.15 0.10
5. The amount of interest accrued during the
year and remaining unpaid at the end of the
accounting year [included in Item (a)(iii)(1)
to Schedule K - Page 154] 0.16 0.12
* Rs.70,261.84
e) No amount is paid/payable by the Company under Section 441A of the
Companies Act, 1956 (cess on turnover) since the rules specifying the
manner in which the cess shall be paid has not been notified yet by the
Central Government.
f) Disclosure as per clause 32 of the Listing Agreement.
Loans and Advances in the nature of Loans given to Subsidiaries, Associates
and Others:
Name of the Relationship Amount Maximum balance Investment by
Company outstanding outstanding the loanee in
as at during the year the shares of
31.03.2011 Rs. Crores parent company
Rs. Crores No. of Shares
Tata Korf Subsidiary 0.84 0.84 -
Engineering 0.82 0.82 -
Services Ltd.
The Indian Steel Subsidiary 11.50 15.27 -
and Wire Products 14.91 20.37 -
Ltd.
Tata Steel (KZN) Subsidiary 448.17 459.47 -
(Pty.) Ltd. 441.04 468.32 -
Tata Metaliks Ltd. Subsidiary 22.00 22.00 -
- - -
Adityapur Toll Subsidiary 14.00 14.00 -
Bridge Company - - -
Ltd.
Tata Steel Holdings Subsidiary 3,708.07 3,708.07 -
Pte. Ltd. - - -
Tayo Rolls Ltd. Subsidiary 10.00 10.00 -
- - -
Industrial Energy Associate - - -
Ltd. - 15.07 -
The Tinplate Associate - - -
Company of India - 180.00 -
Ltd.
10. Employee Benefits
a) The Company has recognised, in the Profit and Loss Account for the year
ended 31st March, 2011, an amount of Rs. 185.54 crores (2009-10 : Rs.
162.32 crores) expenses under defined contribution plans.
Rs. crores
Benefit (Contribution to) 2010-11 2009-10
Provident Fund 125.57 108.12
Superannuation Fund 28.89 26.20
Employees Pension Scheme/Coal
Mines Pension Scheme 18.50 17.02
TISCO Employees Pension Scheme 12.58 10.98
Total 185.54 162.32
The Company's Provident Fund is exempted under Section 17 of Employees'
Provident Fund Act, 1952. Conditions for grant of exemption stipulates that
the employer shall make good deficiency, if any, in the interest rate
declared by Trust over statutory limit. Having regard to the assets of the
Fund and the return on the investments, the Company does not expect any
deficiency in the foreseeable future.
b) 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
c) Details of the post retirement gratuity plan are as follows:
Rs. crores
Description 2010-11 2009-10
1. Reconciliation of opening and
closing balances of obligation
a. Obligation as at the beginning of the year 1,173.34 1,053.62
b. Current service cost 54.71 49.82
c. Interest cost 90.20 78.44
d. Acquisition - 0.64*
e. Actuarial (gain)/loss 310.10 74.81
f. Benefits paid (91.66) (83.99)
g. Obligation as at the end of the year 1,536.69 1,173.34
* On amalgamation of Hooghly Met Coke and
Power Company Ltd. w.e.f. 01.04.2009.
2. Change in plan assets (reconciliation
of opening & closing balances)
a. Fair value of plan assets as
at beginning of the year 1,044.59 809.93
b. Expected return on plan assets 85.06 71.12
c. Actuarial gain/(loss) 6.94 5.61
d. Contributions 128.93 241.92
e. Benefits paid (91.66) (83.99)
f. Fair value of plan assets as
at the end of the year 1,173.86 1,044.59
3. Reconciliation of fair value
of assets and obligations
a. Fair value of plan assets
as at the end of the year 1,173.86 1,044.59
b. Present value of obligation
as at the end of the year 1,536.69 1,173.34
c. Net obligation/(assets) recognised
in the balance sheet 362.83 128.75
4. Expense recognised in the period
a. Current service cost 54.71 49.82
b. Interest cost 90.20 78.44
c. Expected return on plan assets (85.06) (71.12)
d. Actuarial (gain)/loss 303.16* 69.20
e. Expense recognised during the year 363.01 126.34
The expense is disclosed in the line item - Payments to and Provisions for
Employees.
* Includes impact on account of wage settlement, provision for which was
earlier included under wages and salaries, including bonus.
% invested % invested
5. Investment details 31.03.2011 31.03.2010
a. GOI securities 9.67 11.78
b. Public Sector Unit bonds 27.89 27.18
c. State/Central Guaranteed securities 5.30 12.71
d. Private sector bonds 7.03 8.56
e. Deposit with LIC 47.93 39.61
f. Others (including bank balances) 2.18 0.16
100.00 100.00
6. Assumptions 31.03.2011 31.03.2010
a. Discount rate (per annum) 8.00% 8.00%
b. Estimated rate of return on
plan assets (per annum) 8.00% 8.00%
c. Rate of escalation in salary
(per annum) 7.5 to 10% 6 to 10%
The long term estimate of the expected rate of return on the fund assets
have been arrived at based on the asset allocation and prevailing yield
rates on such assets. The major portions of the assets are invested in PSU
bonds and LIC. Assumed rate of return on assets is expected to vary from
year to year reflecting the returns on matching Government Bonds.
d) Details of unfunded post retirement defined benefit obligations are as
follows:
Rs. crores
Description 2010-11 2009-10
Medical Others Medical Others
1. Reconciliation of opening and
closing balances of obligation
a. Obligation as at the
beginning of the year 600.72 45.02 541.68 37.02
b. Current service cost 6.44 1.15 5.81 1.08
c. Interest cost 46.11 3.49 40.47 2.77
d. Acquisitions - - 0.18* -
e. Actuarial (gain)/loss 113.68 2.67 52.00 6.61
f. Benefits paid (48.69) (2.80) (39.42) (2.46)
g. Obligation as at the
end of the year 718.26 49.53 600.72 45.02
* On amalgamation of Hooghly
Met Coke and Power Company
Ltd. w.e.f. 01.04.2009.
2. Expense recognised
in the period
a. Current service cost 6.44 1.15 5.81 1.08
b. Interest cost 46.11 3.49 40.47 2.77
c. Actuarial (gain)/loss 113.68 2.67 52.00 6.61
d. Expense recognised
during the year 166.23 7.31 98.28 10.46
The expense in relation to
(a) Medical - Rs.166.23 crores
(2009-10: Rs.98.28 crores), and
(b) Others - Rs.7.31 crores
(2009-10: Rs.10.46 crores) is
included in item 4 (n) - Other
Expenses in Schedule 4 of the
Profit and Loss Account.
3. Assumptions
a. Discount rate (per annum)
as at the beginning of the year 8.00% 8.00% 7.75% 7.75%
b. Discount rate (per annum)
as at the end of the year 8.00% 8.00% 8.00% 8.00%
c. Medical costs inflation rate 5.00% 5.00%
d. Effect of a 1% change in Increase Decrease Increase Decrease
health care cost, on (6% p.a.) (4% p.a.) (6% p.a.) (4% p.a.)
- aggregate current service
and interest cost 7.54 (6.24) 6.81 (6.26)
- closing balance of obligation 87.48 (75.42) 100.28 (50.94)
e) The estimate of future salary increases take into account inflation,
seniority, promotion and other relevant factors.
f) Other disclosures: Rs. crores
Benefit 2010-11 2009-10 2008-09 2007-08 2006-07
Retiring Gratuity
Defined benefit
obligation 1,536.69 1,173.34 1,053.62 761.17 694.99
Plan assets 1,173.86 1,044.59 809.93 709.14 645.68
Surplus/(deficit) (362.83) (128.75) (243.69) (52.03) (49.31)
Experience adjustments
on plan liabilities -
loss/(gain) 183.67 98.15 192.98 27.15 14.48
Experience adjustments
on plan assets - gain/
(loss) 6.94 5.61 33.35 (6.02) (18.29)
Expected adjustments
(best estimate) to
funded plans 362.83 128.75 243.69 52.03 49.31
in subsequent
finance year
Medical
Defined benefit
obligation 718.26 600.72 541.68 507.42 457.10
Plan assets N.A. N.A. N.A. N.A. N.A.
Surplus/(deficit) N.A. N.A. N.A. N.A. N.A.
Experience adjustments
on plan liabilities -
loss/(gain) 113.68 70.27 6.78 26.47 20.63
Experience adjustments
on plan assets N.A. N.A. N.A. N.A. N.A.
Others
Defined benefit
obligation 49.53 45.02 37.02 37.73 33.21
Plan assets N.A. N.A. N.A. N.A. N.A.
Surplus/(deficit) N.A. N.A. N.A. N.A. N.A.
Experience adjustments
on plan liabilities -
loss/(gain) 2.67 7.70 3.70 1.13 0.41
Experience adjustments
on plan assets N.A. N.A. N.A. N.A. N.A.
11. Information about Primary Business Segments
Rs.crores
Particulars A B C D E F
Revenue:
Total External
Sales 25567.64 2045.29 1783.42 29396.35
21928.19 1553.01 1540.78 25021.98
Inter segment 1293.53 386.41 56.32 (1736.26) -
sales 1034.36 301.66 32.51 (1368.53) -
Total Revenue 26861.17 2431.70 1839.74 (1736.26) 29396.35
22962.55 1854.67 1573.29 (1368.53) 25021.98
Segment result 9459.43 822.18 79.09 716.64 11077.34
before interest, 7941.92 340.44 113.69 326.65 8772.70
exceptional
items and tax
Less: Net 1300.49
finance charges 1508.40
(See Schedule 3,
Page 138)
Profit before 9776.85
Taxes 7214.30
Taxes 2911.16
2167.50
Profit after 6865.69
Taxes 5046.80
Segment 23333.94 593.89 387.07 12484.30 36799.20
Assets 19592.23 421.44 386.22 5985.35 26385.24
Segment 7336.26 260.02 187.79 3211.74 10995.81
Liabilities 6492.72 233.35 162.43 2115.03 9003.53
Total cost 4201.31 121.09 (0.55) 4321.85
incurred 2089.82 7.78 4.44 2102.04
during the
year to
acquire
segment
assets
Segment 1097.45 25.12 23.62 1146.19
Depreciation 1040.22 20.23 22.73 1083.18
Non-Cash 62.08 (0.65) 0.70 26.62 88.75
Expenses other 42.12 0.67 (0.04) 37.71 80.46
than depreciation
Information
about Secondary
Segments:
A = Business Segments - Steel
B = Business Segments - Ferro Alloys and Minerals
C = Business Segments - Others
D = Unallocable
E = Eliminations
F = Total
Geographical 2010-11 2009-10
Rs.crores Rs.crores
Revenue by Geographical Market
India 27,135.71 22,954.43
Outside India 2,260.64 2,067.55
29,396.35 25,021.98
Additions to Fixed Assets
and Intangible Assets
India 4,321.85 2,102.04
Outside India - -
4,321.85 2,102.04
As at As at
31.03.2011 31.03.2010
Rs.crores Rs.crores
Carrying Amount of Segment Assets
India 36,799.20 26,180.38
Outside India - 204.86
36,799.20 26,385.24
Notes:
(i) The Company has disclosed Business Segment as the primary segment.
Segments have been identified taking into account the nature of the
products, the differing risks and returns, the organisational structure and
internal reporting system. The Company's operations predominantly relate to
manufacture of Steel and Ferro Alloys and Minerals business. Other business
segments comprise Tubes and Bearings.
(ii) Segment Revenue, Segment Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis. The expenses,
which are not directly relatable to the business segment, are shown as
unallocated corporate cost. Assets and liabilities that cannot be allocated
between the segments are shown as unallocated corporate assets and
liabilities respectively.
(iii) Total Unallocable Assets exclude:
As at As at
31.03.2011 31.03.2010
Rs.crores Rs.crores
Investments 46,564.94 44,979.67
Advance against Equity 6,187.58 1,871.40
52,752.52 46,851.07
Total Unallocable Liabilities exclude:
Secured Loans 2,009.20 2,259.32
Unsecured Loans 26,291.94 22,979.88
Hybrid perpetual securities 1,500.00 -
Foreign Currency Monetary Item
Translation Difference Account - 206.95
Provision for Employee
Separation Compensation 873.34 957.16
Deferred Tax Liability (Net) 936.80 867.67
31,611.28 27,270.98
(iv) Transactions between segments are primarily for materials which are
transferred at market determined prices and common costs are apportioned on
a reasonable basis.
12. Related Party Disclosures
(a) List of Related Parties and Relationships
Name of the Party Country
A. Subsidiaries
i) Adityapur Toll Bridge Company Ltd. India
ii) Centennial Steel Company Ltd. India
iii) Gopalpur Special Economic Zone Ltd. India
iv) Jamshedpur Utilities & Services Company Ltd. India
1. Haldia Water Management Limited India
2. Naba Diganta Water Management Ltd. India
3. SEZ Adityapur Ltd. India
v) Kalimati Investment Company Ltd. India
1. Bangla Steel & Mining Co. Ltd. Bangladesh
vi) Lanka Special Steels Ltd. Sri Lanka
vii) NatSteel Asia Pte. Ltd. Singapore
1. NatSteel Iranian Private Joint Stock Company * Iran
2. NatSteel Middle East FZE * UAE
3. Tata Steel Asia (Hong Kong) Ltd. Hong Kong
4. Tata Steel Resources Australia Pty. Ltd. Australia
viii) T S Alloys Limited India
ix) Sila Eastern Ltd. Thailand
x) Tata Incorporated USA
xi) Tata Korf Engineering Services Ltd. India
xii) Tata Metaliks Ltd. India
1. Tata Metaliks Kubota Pipes Ltd. India
xiii) Tata Refractories Ltd. India
1. TRL Asia Private Ltd. Singapore
2. TRL China Ltd. China
xiv) Tayo Rolls Ltd. India
xv) Tata Steel (KZN) (Pty) Ltd. South Africa
xvi) Tata Steel Holdings Pte. Ltd. Singapore
1. NSA Holdings Pte Ltd. * Singapore
2. Tata Steel Global Holdings Pte Ltd. Singapore
I. Tata Steel International (Singapore)
Holdings Pte. Ltd. Singapore
1. TSIA Holdings (Thailand) Limited Thailand
2. Tata Steel International (Guangzhou) Ltd. China
3. Tata Steel International (Shanghai) Ltd. China
4. Tata Steel International (Malaysia)
Sdn. Bhd. Malaysia
5. Tata Steel International (Thailand) Limited Thailand
6. Tata Steel International (Singapore) Pte. Ltd. Singapore
7. Tata Steel international (Asia) Limited Hong Kong
8. Tata Steel International (Hong Kong) Limited Hong Kong
II. NatSteel Holdings Pte. Ltd. Singapore
1. Best Bar Pty. Ltd. Australia
2. Bestbar (Vic) Pte. Ltd. Australia
3. Burwill Trading Pte. Ltd. Singapore
4. Easteel Construction Services Pte. Ltd. Singapore
5. Easteel Services (M) Sdn. Bhd. Malaysia
6. Eastern Steel Fabricators Philippines, Inc. Philippines
7. Eastern Steel Services Pte. Ltd. Singapore
8. Eastern Wire Pte. Ltd. Singapore
9. Materials Recycling Pte. Ltd. Singapore
10. NatSteel (Xiamen) Ltd. China
11. NatSteel Asia (S) Pte. Ltd. Singapore
12. NatSteel Australia Pty. Ltd. Australia
13. NatSteel Equity IV Pte. Ltd. Singapore
14. Natsteel Recycling Pte Ltd. Singapore
15. NatSteel Trade International
(Shanghai) Company Ltd. China
16. NatSteel Trade International Pte. Ltd. Singapore
17. NatSteel Vina Co. Ltd. Vietnam
18. PT Materials Recycling Indonesia Indonesia
19. The Siam Industrial Wire Company Ltd. Thailand
20. Wuxi Jinyang Metal Products Co. Ltd. China
III. Orchid Netherlands (No.1) B.V. Netherlands
IV. Tata Steel Europe Ltd. UK
1. Almana Steel Dubai (Jersey) Limited Jersey
2. Apollo Metals Ltd. USA
3. Ashorne Hill Management College UK
4. Augusta Grundstucks GmbH Germany
5. Automotive Laser Technologies Limited UK
6. B S Pension Fund Trustee Ltd. UK
7. Bailey Steels Limited UK
8. Beheermaatschappij Industriele
Produkten B.V. Netherlands
9. Belfin Beheermaatschappij B.V. Netherlands
10. Bell & Harwood Limited UK
11. Blastmega Limited UK
12. Blume Stahlservice GmbH Germany
13. Blume Stahlservice Polska Sp.Z.O.O Poland
14. Bore Samson Group Ltd UK
15. Bore Steel Ltd. UK
16. British Guide Rails Ltd. UK
17. British Steel Benelux B.V.* Netherlands
18. British Steel Corporation Ltd UK
19. British Steel De Mexico S.A. de C.V. Mexico
20. British Steel Directors (Nominees) Limited UK
21. British Steel Employee Share
Ownership Trustees Ltd. UK
22. British Steel Engineering
Steels (Exports) Limited UK
23. British Steel Holdings B.V. Netherlands
24. British Steel International B.V. Netherlands
25. British Steel Nederland International B.V. Netherlands
26. British Steel Samson Limited UK
27. British Steel Service Centres Ltd. UK
28. British Steel Tubes Exports Ltd. UK
29. British Transformer Cores Ltd. UK
30. British Tubes Stockholding Ltd. UK
31. Bs Quest Trustee Limited UK
32. Bskh Corporate Services (UK) Limited UK
33. Burgdorfer Grundstuecks GmbH Germany
34. C V Benine Netherlands
35. C Walker & Sons Ltd. UK
36. Catnic GmbH Germany
37. Catnic Limited UK
38. Cbs Investissements SAS France
39. Cladding & Decking (UK) Limited UK
40. Cogent Power Inc. Canada
41. Cogent Power Inc. Mexico
42. Cogent Power Inc. USA
43. Cogent Power Limited UK
44. Cold Drawn Tubes Ltd. UK
45. Color Steels Limited UK
46. Corbeil Les Rives SCI France
47. Corby (Northants) & District Water Co. UK
48. Cordor (C& B) Limited UK
49. Corus - Sistemas Constructivos
E Revestimentos Metalicos, Lda * Portugal
50. Corus Aerospace Service Centre
Suzhou Co Ltd. China
51. Corus Aluminium Limited UK
52. Corus Aluminium Verwaltungsgesellschaft Mbh Germany
53. Corus Batiment Et Systemes SAS France
54. Corus Belgium Bvba* Belgium
55. Corus Beteiligungs GmbH Germany
56. Corus Brokers Limited UK
57. Corus Building Systems Bulgaria AD Bulgaria
58. Corus Building Systems N.V. Belgium
59. Corus Building Systems SAS France
60. Corus Byggesystemer A/S Denmark
61. Corus Byggsystem AB Sweden
62. Corus Byggsystemer A/S Norway
63. Corus Central Europe S.R.O. Czech
Republic
64. Corus Cic Holdings Inc. Canada
65. Corus Cic Inc.* Canada
66. Corus CNBV Investments UK
67. Corus Coatings Usa Inc. USA
68. Corus Cold Drawn Tubes Limited UK
69. Corus Consulting B.V. Netherlands
70. Corus Electrical Limited UK
71. Corus Engineering Limited UK
72. Corus Engineering Steels (UK) Limited UK
73. Corus Engineering Steels Holdings Limited UK
74. Corus Engineering Steels Limited UK
75. Corus Engineering Steels Overseas Holdings Limited UK
76. Corus Finance Limited UK
77. Corus Group Limited UK
78. Corus Holdings Ltd. UK
79. Corus Holdings SA France
80. Corus India Ltd. India
81. Corus International
(Overseas Holdings) Limited UK
82. Corus International Bulgaria Limited Bulgaria
83. Corus International Limited UK
84. Corus International Representacoes
Do Brasil Ltda. Brazil
85. Corus International Romania SRL. Romania
86. Corus Investments Ltd. UK
87. Corus Ireland Ltd. Ireland
88. Corus Large Diameter Pipes Limited UK
89. Corus Liaison Services (India) Limited UK
90. Corus Management Limited UK
91. Corus Metal Iberica S.A Spain
92. Corus Metals Limited UK
93. Corus Multi-Metals Limited UK
94. Corus Norge A/S Norway
95. Corus Packaging Plus Norway AS Norway
96. Corus Primary Aluminium B.V. Netherlands
97. Corus Properties (Germany) Limited UK
98. Corus Property UK
99. Corus Quest Trustee Limited UK
100. Corus Rail Limited UK
101. Corus Republic Of Ireland Subsidiaries
Pension Scheme Trustee Limited Ireland
102. Corus Service Center Milano Spa Italy
103. Corus Service Centre Limited N Ireland
104. Corus Service Centre Maastricht B.V. Netherlands
105. Corus Sheet & Tube Inc. USA
106. Corus Stainless Limited UK
107. Corus Stainless Nl B.V. Netherlands
108. Corus Stainless UK Ltd. UK
109. Corus Steel Limited UK
110. Corus Steel Service STP LLC * Russia
111. Corus Steel Usa Inc. USA
112. Corus Sverige AB Sweden
113. Corus Trico Holdings Inc. USA
114. Corus UK Healthcare Trustee Limited UK
115. Corus Ukraine LLC Ukraine
116. Cpn (85) Limited UK
117. Crucible Insurance Company Ltd. I of Man
118. Degels GmbH Germany
119. Demka B.V. Netherlands
120. Dsrm Group Plc. UK
121. Ees Group Services Limited UK
122. Ees Nederland B.V. Netherlands
123. Eric Olsson & Soner Forvaltnings AB Sweden
124. Esmil B.V. Netherlands
125. Euro-Laminations Limited UK
126. European Electrical Steels Limited UK
127. Europressings Limited UK
128. Firsteel Group Limited UK
129. Firsteel Holdings Limited UK
130. Firsteel Strip Mill Products Limited UK
131. Fischer Profielen NV Belgium
132. Fischer Profil GmbH Germany
133. Gamble Simms Metals Ltd. Ireland
134. Grant Lyon Eagre Ltd. UK
135. H E Samson Ltd. UK
136. Hadfields Holdings Ltd. UK
137. Hammermega Limited UK
138. Harrowmills Properties Ltd. UK
139. Hille & Muller GmbH Germany
140. Hille & Muller Usa Inc. USA
141. Holorib GmbH Germany
142. Hoogovens (UK) Limited UK
143. Hoogovens Aluminium UK Limited UK
144. Hoogovens Finance B.V. Netherlands
145. Hoogovens Technical Services
Coahuila B.V.* Netherlands
146. Hoogovens Technical Services
Mexico De S. De R.L. De C.V. Mexico
147. Hoogovens Technical Services
Monclova B.V.* Netherlands
148. Hoogovens Tubes Poland Spolka Z.O.O Poland
149. Hoogovens Usa Inc. USA
150. Huizenbezit 'Breesaap' B.V. Netherlands
151. Ickles Cottage Trust UK
152. Immobilliere De Construction De
Maubeuge Et Louvroil SAS France
153. Industrial Steels Limited UK
154. Inter Metal Distribution SAS France
155. K&S Management Service Limited* UK
156. Kalzip Asia Pte Singapore
157. Kalzip GmbH Germany
158. Kalzip GmbH Austria
159. Kalzip Guanhzou Limited China
160. Kalzip Inc USA
161. Kalzip Italy SRL * Italy
162. Kalzip Limited UK
163. Kalzip Spain S.L.U. Spain
164. Layde Steel S.L. Spain
165. Lister Tubes Ltd. Ireland
166. London Works Steel Company Ltd. UK
167. Midland Steel Supplies Ltd. UK
168. Mistbury Investments Limited UK
169. Montana Bausysteme AG Switzerland
170. Myriad Deutschland GmbH Germany
171. Myriad Espana Sl Spain
172. Myriad Nederland B.V. Netherlands
173. Myriad SA France
174. Myriad United Kingdom Limited UK
175. Namascor B.V. Netherlands
176. Nationwide Steelstock Limited UK
177. Nebam Nedelandse Bevrachting
En Agentuur Maatschappij B.V. Netherlands
178. Oostflank B.V. Netherlands
179. Orb Electrical Steels Limited UK
180. Ore Carriers Ltd. UK
181. Oremco Inc. USA
182. Plated Strip International Limited UK
183. Precoat International Limited UK
184. Precoat Limited UK
185. Rafferty-Brown Steel Co Inc Of Conn. USA
186. Richard Thomas And Baldwins
(Australia) Pty Ltd. Australia
187. Richard Thomas And
Baldwins 1978. Limited New Zealand
188. Round Oak Steelworks Ltd. UK
189. Runblast Limited UK
190. Runmega Limited UK
191. S A B Profiel B.V. Netherlands
192. S A B Profil GmbH Germany
193. SA Intertubes* Belgium
194. Sacra-Nord SAS France
195. Scrap Processing Holding B.V. Netherlands
196. Seamless Tubes Ltd. UK
197. Service Center Gelsenkirchen GmbH Germany
198. SIA Corus Building Systems Latvia
199. Simiop Investments Ltd. UK
200. Simiop Ltd. UK
201. Skruv Erik AB Sweden
202. Societe Europeenne De
Galvanisation (Segal) Sa Belgium
203. Staalverwerking En Handel B.V. Netherlands
204. Steel Company (N.I.) Ltd.* UK
205. Steel Stockholdings Ltd. UK
206. Steelstock Ltd. UK
207. Stewarts & Lloyds Of Ireland Ltd. Ireland
208. Stewarts And Lloyds (Overseas) Ltd. UK
209. Stocksbridge Cottage Trust UK
210. Stuwadoorsbedrijf Velserkom B.V. * Netherlands
211. Surahammar Bruks AB Sweden
212. Swinden Housing Association UK
213. Tata Steel Belgium Packing Steels N.V. Belgium
214. Tata Steel Belgium Services N.V. Belgium
215. Tata Steel Europe Distribution BV Netherlands
216. Tata Steel Europe Metals Trading BV Netherlands
217. Tata Steel France Rail SA France
218. Tata Steel Germany GmbH Germany
219. Tata Steel Hungary LLC Hungary
220. Tata Steel Ijmuiden BV Netherlands
221. Tata Steel International
(Americas) Holdings Inc USA
222. Tata Steel International (Americas) Inc USA
223. Tata Steel International
(Australasia) Limited New Zealand
224. Tata Steel International (Benelux) BV Netherlands
225. Tata Steel International (Denmark) A/S Denmark
226. Tata Steel International (Finland) OY Finland
227. Tata Steel International (France) SAS France
228. Tata Steel International
(Germany) GmbH Germany
229. Tata Steel International Hellas SA Greece
230. Tata Steel International (Italia) SRL Italy
231. Tata Steel International (Middle East) FZE UAE
232. Tata Steel International (Nigeria) Ltd. Nigeria
233. Tata Steel International
(North America) Ltd. USA
234. Tata Steel International (Poland) sp Zoo Poland
235. Tata Steel International (Schweiz) AG Switzerland
236. Tata Steel International (UK) Ltd. UK
237. Tata Steel International (India) Pvt. Ltd. India
238. Tata Steel Istanbul Metal Sanayi ve
Ticaret AS Turkey
239. Tata Steel Nederland BV Netherlands
240. Tata Steel Nederland Consulting &
Technical Services BV Netherlands
241. Tata Steel Nederland Investment BV Netherlands
242. Tata Steel Nederland Perfo BV Netherlands
243. Tata Steel Nederland Services BV Netherlands
244. Tata Steel Nederland Star-Frame BV Netherlands
245. Tata Steel Nederland Technology BV Netherlands
246. Tata Steel Nederland Tubes BV Netherlands
247. Tata Steel Netherlands Holdings B.V. Netherlands
248. Tata Steel UK Consulting Limited UK
249. Tata Steel UK Holdings Limited UK
250. Tata Steel UK Limited UK
251. Tata Steel UK Rail Consultancy Limited UK
252. Telmag (Holdings) Limited* UK
253. Telmag Magnetic Components Limited* UK
254. The Newport And South Wales
Tube Company Ltd. UK
255. The Stanton Housing Company Ltd. UK
256. The Steel Company Of Ireland Limited Ireland
257. The Templeborough Rolling Mills Ltd. UK
258. Thomas Processing Company USA
259. Thomas Steel Strip Corp. USA
260. Tinsley Trailers Limited UK
261. Toronto Industrial Fabrications Ltd. UK
262. Trierer Walzwerk GmbH Germany
263. Tulip Netherlands (No.1) B.V. Netherlands
264. Tulip Netherlands (No.2) B.V. Netherlands
265. Tulip UK Holdings (No.2) Ltd. UK
266. Tulip UK Holdings (No.3) Ltd. UK
267. Tuscaloosa Steel Corporation USA
268. U.E.S. Bright Bar Limited UK
269. UK Steel Enterprise Ltd. UK
270. Ukse Fund Managers
(General Partner) Limited UK
271. Ukse Fund Managers Limited UK
272. Unitol SAS France
273. Vlietjonge BV Netherlands
274. Walker Manufacturing And
Investments Ltd. UK
275. Walkersteelstock Ireland Limited Ireland
276. Walkersteelstock Ltd. UK
277. Westwood Steel Services Ltd. UK
278. Whitehead (Narrow Strip) Ltd. UK
V. Tata Steel Global Minerals Holdings Pte Ltd. Singapore
1. Al Rimal Mining LLC Oman
2. Black Ginger 461 Proprietary Ltd South Africa
3. Kalimati Coal Company Pty. Ltd. Australia
4. Sedibeng Iron Ore Pty. Ltd.* South Africa
5. Tata Steel Cote D' Ivoire S.A Ivory Coast
6. Tata Steel Minerals UK Limited * UK
7. Tata Steel Minerals Canada Limited * Canada
VI. Tata Steel (Thailand) Public Company Ltd. Thailand
1. N.T.S Steel Group Plc. Thailand
2. The Siam Construction Steel Co. Ltd. Thailand
3. The Siam Iron And Steel (2001) Co. Ltd. Thailand
VII. Tata Steel Global Procurement
Company Pte. Ltd. * Singapore
1. ProCo Issuer Pte. Ltd. * Singapore
xvii) Tata Steel Processing And Distribution Limited India
xviii) TM International Logistics Ltd. India
1. International Shipping Logistics FZE UAE
2. TKM Global China Ltd China
3. TKM Global GmbH Germany
4. TKM Global Logistics Ltd. India
5. TM Harbour Services Private Ltd. India
xix) The Indian Steel and Wire Products Ltd. India
xx) The Tata Pigments Ltd. India
xxi) T M Mining Company Limited * India
xxii) Jamshedpur Continuous Annealing and
Processing Company Private Limited * India
B. Associates through
i) Kalimati Investment Company Ltd.
1. Rujuvalika Investments Ltd. India
ii) NatSteel Asia Pte. Ltd.
1. Steel Asia Development and
Management Corp. Singapore
2. Steel Asia Industries Inc. Singapore
3. Steel Asia Manufacturing Corporation Singapore
iii) Tata Incorporated
1. TKM Overseas Ltd. UK
iv) Tata Refractories Ltd.
1. Almora Magnesite Ltd. India
v) Tata Steel Ltd.
1. Indian Steel Rolling Mills Ltd. India
2. Industrial Energy Ltd. India
3. Jamipol Ltd. India
4. Kalinga Aquatics Ltd. India
5. Kumardhubi Fireclay & Silica Works Ltd. India
6. Kumardhubi Metal Casting & Engineering Ltd. India
7. Nicco Jubilee Park Ltd. India
8. Strategic Energy Technology Systems Limited India
9. Tata Construction & Projects Ltd. India
10. Tata Sponge Iron Ltd. India
11. The Tinplate Company of India Ltd. India
12. TRF Ltd. India
vi) Tata Steel Holdings Pte. Ltd.
a) Tata Steel Global Holdings Pte Ltd.
I. Tata Steel International
(Singapore) Holdings Pte. Ltd.
1. European Profiles Malaysia (M) Sdn.Bhd. Malaysia
II. NatSteel Holdings Pte. Ltd.
1. Southern Steel, Berhard * Malaysia
III. Tata Steel Europe Ltd.
1. Ab Norskstal AS Norway
2. Albi Profils SRL France
3. Appleby Frodingham Cottage
Trust Limited UK
4. Combulex B.V. Netherlands
5. Cv Gasexpansie Ijmond Netherlands
6. Danieli Corus Canada Inc. Canada
7. Danieli Corus Asia B.V. Netherlands
8. Danieli Corus B.V. Netherlands
9. Danieli Corus Braseq Ltda. Brazil
10. Danieli Corus Construction Services B.V. Netherlands
11. Danieli Corus Construction
Services USA Inc. USA
12. Danieli Corus Do Brasil Ltda. Brazil
13. Danieli Corus Inc. USA
14. Danieli Corus Services USA Inc. USA
15. Danieli India (Pvt.) Ltd. India
16. European Profiles (Marketing) Sdn.Bhd. Malaysia
17. Galvpro LP. USA
18. Gietwalsonderhoudcombinatie B.V. Netherlands
19. Hoogovens Court Roll Service
Technologies Vof: Netherlands
20. Hoogovens Gan Multimedia
S.A. De C.V. Mexico
21. Isolation Du Sud SA France
22. Issb Limited UK
23. MDC Sublance Probe Technology Shanghai
24. Regionale Ontwikkelingsmaatschappij
Voor Het Noordzeekanaalgebied N.V. Netherlands
25. Richard Lees Steel Decking
Asia Snd. Bhd. Malaysia
26. Rsp Holding B.V. Netherlands
27. Schreiner Fleischer AS Norway
28. Shanghai Bao Yi Beverage
Can Making Co. Ltd. China
29. Sms Mevac UK Limited UK
30. Stuwadoorsbedrijf Velserkom B.V. * Netherlands
31. Thoresen & Thorvaldsen AS Norway
32. Trico LLC USA
33. Weirton/Hoogovens GP USA
34. Workington Cottage Trust UK
35. Wupperman Staal Nederland B.V. Netherlands
IV. Tata Steel Global Minerals Holdings Pte Ltd.
1. Riversdale Mining Ltd. Australia
2. New Millennium Capital Corporation * Canada
vii) The Indian Steel and Wire Products Ltd.
1. Metal Corporation of India Ltd. India
C. Joint Venture of
i) Tata Steel Ltd.
1. Bhubaneswar Power Pvt. Ltd. India
2. mjunction services ltd. India
3. S & T Mining Co. Pvt. Ltd. India
4. Tata Bluescope Steel Ltd. India
5. Tata NYK Shipping Pte Ltd. Singapore
6. The Dhamra Port Company Ltd. India
7. Himalaya Steel Mills Services Pvt. Ltd.* India
ii) Tata Steel Holdings Pte. Ltd.
a) Tata Steel Global Holdings Pte Ltd.
I. Tata Steel Europe Ltd.
1. Afon Tinplate Company Limited UK
2. Air Products Llanwern Limited UK
3. B V Ijzerleew Netherlands
4. Bsr Pipeline Services Limited UK
5. Caparo Merchant Bar Plc UK
6. Cindu Chemicals B.V. Netherlands
7. Corus Celik Ticaret AS Turkey
8. Corus Cogifer Switches And
Crossings Limited UK
9. Corus Kalpinis Simos Rom SRL. Romania
10. Danieli Corus Technical Services B.V. Netherlands
11. Hks Scrap Metals B.V. Netherlands
12. Ijzerhandel Geertsema Staal B.V. Netherlands
13. Industrial Rail Services Ijmond B.V. Netherlands
14. Laura Metaal Holding B.V. Netherlands
15. Norsk Stal AS Norway
16. Norsk Stal Tynnplater AS Norway
17. Ravenscraig Limited UK
18. Tata Elastron SA Greece
19. Tata Elastron SA Steel Service Center Greece
20. Texturing Technology Limited UK
21. Redcar Bulk Terminal Limited * UK
II. Tata Steel Global Minerals Holdings Pte. Ltd.
1. Riversdale Energy (Mauritius) Ltd Mauritius
D. Promoters holding together with its subsidiary is more than 20%
Tata Sons Ltd.
E. Key Management Personnel - Whole time Directors
Mr. H. M. Nerurkar
* Part of the Year
12.(b) Related Party Transactions Rs. crores
Transactions A B C D E F
Purchase of
Goods
TS Resources 3874.07 - - - - 3874.07
Australia Pte 2639.27 - - - - 2639.27
Ltd.
Others 160.22 112.30 - - - 272.52
196.56 107.28 - - - 303.84
4034.29 112.30 - - - 4146.59
2835.83 107.28 - - - 2943.11
Sale of Goods
TS Asia 696.20 - - - - 696.20
(Hong Kong) 553.11 - - - - 553.11
Pte.
Tata Steel 1196.48 - - - - 1196.48
Processing And 684.43 141.37 - - - 825.80
Distribution
Ltd.
Others 583.63 459.10 - - - 1042.73
384.58 436.46 - - - 821.04
2476.31 459.10 - - - 2935.41
1622.12 577.83 - - - 2199.95
Receiving of
Services
Jamshedpur 241.12 - - - - 241.12
Utilities & 206.27 - - - - 206.27
Services Co.
Ltd.
T M 133.29 - - - - 133.29
International 161.77 - - - - 161.77
Logistics Ltd.
The Tinplate - 321.51 - - - 321.51
Company of - 370.03 - - - 370.03
India Ltd.
TS Alloys Ltd. 122.65 - - - - 122.65
101.75 - - - - 101.75
Others 276.10 21.93 - - 2.21 300.24
164.47 49.47 - - 1.36 215.30
773.16 343.44 - - 2.21 1,118.81
634.26 419.50 - - 1.36 1,055.12
Rendering of
Services
Jamshedpur 68.92 - - - - 68.92
Utilities & 37.04 - - - - 37.04
Services Co.
Ltd.
The Tinplate - 43.31 - - - 43.31
Company of - 42.10 - - - 42.10
India Ltd.
Others 40.79 13.54 - - 0.19 54.52
45.72 10.52 - - 0.24 56.48
109.71 56.85 - - 0.19 166.75
82.76 52.62 - - 0.24 135.62
Purchase of
Fixed Assets
TRF Ltd. - 54.00 - - - 54.00
- 3.17 - - - 3.17
Others - - - - - -
- 0.31 - - - 0.31
- 54.00 - - - 54.00
- 3.48 - - - 3.48
Sale of
Fixed Assets
Jamipol Ltd. - - - - - -
- 0.07 - - - 0.07
Lanka Special 0.04 - - - - 0.04
Steels Ltd. 0.18 - - - 0.18
0.04 - - - - 0.04
0.18 0.07 - - - 0.25
Dividend Expense
Tata Sons Ltd. - - - - 206.74 206.74
- - - - 408.42 408.42
Others 0.54 0.93 * - - 1.47
1.08 1.86 0.01 **** - 2.95
0.54 0.93 ** - 206.74 208.21
1.08 1.86 0.01 **** 408.42 411.37
Dividend Income
Jamipol Ltd. - 5.24 - - - 5.24
- 2.38 - - - 2.38
Tata 8.19 - - - - 8.19
Refractories Ltd. 7.45 - - - - 7.45
The Tinplate - 13.97 - - - 13.97
Company of - 13.94 - - - 13.94
India Ltd.
Tata Sponge - 4.90 - - - 4.90
Iron Ltd. - 4.90 - - - 4.90
Others 1.49 2.69 - - - 4.18
183.65 2.30 - - - 185.95
9.68 26.80 - - - 36.48
191.10 23.52 - - - 214.62
Interest Income
Tata Steel 35.56 - - - - 35.56
Holdings Pte. - - - - - -
Ltd.
Tata Steel 20.91 - - - - 20.91
KZN Pty. Ltd. 19.15 - - - - 19.15
Others 4.23 5.17 - - - 9.40
1.73 16.46 - - - 18.19
60.70 5.17 - - - 65.87
20.88 16.46 - - - 37.34
Management
contracts
including
deputation of
employees
Tata Sons Ltd. - - - - 50.00 50.00
- - - - 50.00 50.00
- - - - 50.00 50.00
- - - - 50.00 50.00
Finance
Provided
Tata Steel 11547.95 - - - - 11547.95
Holdings 4334.94 - - - - 4334.94
Pte. Ltd.
Centennial 1453.29 - - - - 1453.29
Steel 1644.87 - - - - 1644.87
Company Ltd.
Others 58.16 162.18 - - - 220.34
329.13 371.09 - - - 700.22
13059.40 162.18 - - - 13221.58
6308.94 371.09 - - - 6680.03
Unsecured
advances/
Deposits
given
Jamshedpur 7.21 - - - - 7.21
Utilities & 2.91 - - - - 2.91
Services Co.
Ltd.
Others 0.02 - - - - 0.02
0.02 - - - - 0.02
7.23 - - - - 7.23
2.93 - - - - 2.93
Remuneration
Paid
Mr. H.M. - - 4.16 - - 4.16
Nerurkar - - 3.01 - - 3.01
Mr. B. - - - - - -
Muthuraman - - 4.01 - - 4.01
(upto
30.09.09)
- - 4.16 - - 4.16
- - 7.02 - - 7.02
Guarantees
and collaterals
given
Corus UK LTD, - - - - - -
Corus Rail 139.28 - - - - 139.28
Consultancy
Industrial
Steels
Limited, Corus
International
Trading Ltd.
Centennial 637.86 - - - - 637.86
Steel Company - - - - - -
Limited
Tata NYK - - - - - -
Shipping - 134.78 - - - 134.78
Pte Ltd.
637.86 - - - - 637.86
139.28 134.78 - - - 274.06
Guarantees
outstanding
Corus UK LTD, 138.24 - - - - 138.24
Corus Rail 139.28 - - - - 139.28
Consultancy
Industrial
Steels Limited,
Corus
International
Trading Ltd.
Centennial 637.86 - - - - 637.86
Steel Company - - - - - -
Limited
Tata NYK - 133.79 - - - 133.79
Shipping - 134.78 - - - 134.78
Pte Ltd.
776.10 133.79 - - - 909.89
139.28 134.78 - - - 274.06
Outstanding
Receivables
Tata Steel 7713.05 - - - - 7713.05
Holdings Pte. 191.85 - - - - 191.85
Ltd.
Centennial 2783.81 - - - - 2783.81
Steel 1671.86 - - - - 1671.86
Company Ltd.
Others 743.54 11.35 - - 4.01 758.90
632.06 20.97 - - 4.01 657.04
11240.40 11.35 - - 4.01 11255.76
2495.77 20.97 - - 4.01 2520.75
Outstanding
Payables
TS Resources 1537.91 - - - - 1537.91
Australia Pte 1379.26 - - - - 1379.26
Ltd.
Others 173.14 83.66 - - 50.76 307.56
135.04 42.31 - - 56.10 233.45
1711.05 83.66 - - 50.76 1845.47
1514.30 42.31 - - 56.10 1612.71
Bad Debts
Recovered
The Indian 3.07 - - - - 3.07
Steel & Wire 3.07 - - - - 3.07
Products Ltd.
3.07 - - - - 3.07
3.07 - - - - 3.07
A = Subsidiaries
B = Associates & JVs #
C = Key Management Personnel
D = Relatives of Key Management Personnel
E = Promoter
F = Grand Total
* Rs.5,096.00
** Rs.5,096.00
*** Rs.23,891.15
**** Rs.23,891.15
# Transactions with Joint Ventures have been disclosed at full value.
13. The Company has the following Joint Ventures as on 31st March, 2011 and
its proportionate share in the Assets, Liabilities, Income and Expenditure
of the Joint Venture Companies is given below:
Rs. crores
Name of the Country of A B C D E F G
Joint Venture Incorpor-
Company ation
mjunction India 50% 104.34 40.54 - - 50.59 32.06
services 71.93 26.66 0.72 - 38.76 23.54
ltd.
The Dhamra India 50% 1761.16 1438.75 - 76.17 0.02 0.52
Port Company 1449.28 1203.87 - 215.58 0.02 0.45
Ltd.
Tata BlueScope India 50% 745.86 493.41 20.26 59.14 257.72 266.88
Steel Ltd. 576.70 315.10 11.66 114.32 213.75 222.98
Tata NYK Singapore 50% 363.04 238.35 - 171.95 329.72 328.39
Shipping 277.15 151.97 - 252.98 353.36 356.49
Pte. Ltd.
Bhubaneshwar India 14% 5.73 0.08 0.40 38.64 - -
Power Pvt. Ltd. 1.10 1.00 0.71 - - 0.05
S & T Mining India 50% 1.81 0.52 - - - 1.17
Company Pvt. 0.57 0.31 - - - 0.49
Ltd.
Himalaya India 26% 2.33 0.01 - - - 0.02
Steel Mills
Services Pvt.
Ltd.
A = As at 31st March, 2011 - Percentage of Holding
B = As at 31st March, 2011 - Assets
C = As at 31st March, 2011 - Liabilities
D = As at 31st March, 2011 - Contingent Liabilities
E = As at 31st March, 2011 - Capital Commitment
F = For the year ended 31st March, 2011 - Income
G = For the year ended 31st March, 2011 - Expenditure
14. Earnings Per Share (EPS): 2010-11 2009-10
Rs.crores Rs.crores
(i) Profit after tax 6,865.69 5,046.80
Less : Preference Dividend including tax thereon - 53.68
Less : Distribution on Hybrid Perpetual
Securities (net of tax) 4.54 -
Profit attributable to ordinary shareholders 6,861.15 4,993.12
Profit attributable to ordinary shareholders -
for Diluted EPS 6,890.01 5,054.70
Nos. Nos.
(ii) Weighted average No. of Ordinary
Shares for Basic EPS 90,72,52,572 82,85,50,811
Add : Adjustment for 3,820 (2009-10: Nil)
Convertible Alternative Reference
Securities 2,10,15,711 -
Adjustment for 5,469.35 (2009-10:
5,469.35) 4.5% Foreign Currency
Convertible Bonds 4,19,60,304 1,51,43,378
Adjustment for Options relating to
1,20,00,000 (2009-10 : Nil) Detachable
Warrants 3,53,829 -
Adjustment for Nil (2009-10 : 54,72,66,011)
Cumulative Convertible Preference Shares - 3,82,33,652
Weighted average no. of Ordinary Shares
for Diluted EPS 97,05,82,416 88,19,27,841
(iii) Nominal value of Ordinary Shares Rs.10.00 Rs.10.00
(iv) Basic Earnings per Ordinary Share Rs.75.63 Rs.60.26
(v) Diluted Earnings per Ordinary Share Rs.70.99 Rs.57.31
15. Deferred Tax Liability Deferred Tax Current year Deferred Tax
(Net)(Item No. 6, Page 134) (Asset)/Liability charge/ (Asset)/
as at 1.04.2010 (credit) Liability as
at 31.03.11
Rs.crores Rs.crores Rs.crores
Deferred Tax Liabilities
(i) Difference between book
and tax depreciation 1,973.23 (17.52) 1,955.71
(ii) Prepaid Expenses 73.02 33.14 106.16
2,046.25 15.62 2,061.87
Deferred Tax Assets
(i) Employee Separation
Compensation (491.79) 49.97 (441.82)
(ii) Wage Provision (127.55) 2.96 (124.59)
(iii) Provision for doubtful
debts & advances (29.83) (1.97) (31.80)
(iv) Disallowance under
Section 43B (165.11) 3.84 (161.27)
(v) Provision for Leave Salary (140.10) 3.26 (136.84)
(vi) Provision for
Employee Benefits (68.92) 1.61 (67.31)
(vii) Other Deferred Tax
Assets/Liabilities (22.70) (9.73) (32.43)
(1,046.00) 49.94 (996.06)
1,000.25 65.56 1,065.81
(viii) Impact of change in tax
rates in the current year on
deferred tax asset created on
unamortised ESS earlier adjusted
against Securities Premium
Account in 2002-03 (11.40)
Net amount charged to Profit
and Loss Account (Item 8(b),
Page 135) 54.16
Deferred tax asset on the
redemption premium on CARS
adjusted against Securities
Premium Account on issue of
CARS in 2007-08 (132.58) 3.57 (129.01)
Deferred Tax Liabilities (Net) 867.67 936.80
16. Installed capacities and production :
Installed Production(2)
capacity(1)
Tonnes Tonnes
Class of Products
(i) Crude Steel (Jamshedpur, Jharkhand) 68,00,000 68,55,424
(3)
68,00,000 65,63,690
(ii) Wire Rods (Tarapur, Maharashtra) 3,00,000 2,96,566
2,65,000 2,73,909
Wires (Borivali, Tarapur; Maharashtra), 2,13,900 1,91,128
(Indore, Madhya Pradesh) & (Bengaluru, 2,02,650 1,70,997
Karnataka)
(iii) Ferro Manganese & Silico 50,000 49,500
Manganese (Joda, Odisha) 30,500 50,240
(iv) Charge Chrome (Bamnipal, Odisha) 50,000 45,054
50,000 50,576
(v) Welded Steel Tubes (Jamshedpur, 2,88,000 2,81,623
Jharkhand) (4)
2,88,000 2,68,557
(vi) Metallurgical Machinery - 13,515
(Jamshedpur, Jharkhand) (5)
- 9,054
Numbers Numbers
(vii) Bearings (Kharagpur, West Bengal) 2,50,00,000 3,30,85,368
2,50,00,000 2,93,27,053
Notes:
(1) As certified by the Managing Director and accepted by the Auditors.
(2) Including production for works use and for conversion by the third
parties into finished goods for sale.
(3) The actual production of Saleable Steel during the year is 66,90,996
tonnes (2009-10 : 64,39,286 tonnes) including semi-finished steel produced
15,33,806 tonnes (2009-10 : 14,20,963 tonnes) and steel transferred for
manufacture into Tubes/C.R. Strips at the Company's Tubes Division 3,90,690
tonnes (2009-10 : 3,72,110 tonnes)/ steel transferred for manufacture of
Cold Rolled Coils at the Company's Cold Rolling Mill Division (West)
2,29,701 tonnes (2009-10 : 2,05,227 tonnes) and steel transferred for
manufacture of Wire Rods 2,91,234 tonnes (2009-10 : 2,68,635 tonnes) and
wires 2,70,163 tonnes (2009-10 :2,42,894 tonnes) at the Company's Wire Rod
Mill (West) division.
(4) Including Tubes used in manufacture of Tubular Steel Structures and
Scaffoldings.
(5) There is no separate installed capacity.
(6) Previous years figures have been recast wherever necessary.
17. Turnover, Closing and Opening Stocks:
Turnover Closing Stock Opening Stock
Tonnes Rs. Tonnes Rs. Tonnes Rs.
crores crores crores
Class of Products
(i) Saleable 5772081 23042.97 356201 829.40 358246 658.08
Steel
(Finished)(1) 5518047 19333.49 358246 658.08 325699 671.38
Agrico 159.66 11.55 6.87
Products
126.86 6.87 6.33
23202.63 840.95 664.95
19460.35 664.95 677.71
(ii) Semi- 628288 1531.12 287726 345.68 254344 291.05
finished Steel
and Scrap 768127 1554.88 254344 291.05 510653 488.25
(iii) Welded 254849 1281.97 24401 77.33 20657 51.47
Steel Tubes
(2) 253802 1110.28 20657 51.47 18680 51.67
(iv) By- 251.41 2.16 1.76
products
etc 237.44 1.76 1.51
(v) Raw
Materials:
(a) Ferro 27083 155.46 - - - -
Manganese
38976 183.47 - - - -
(b) Charge 138175 898.06 - - - -
Chrome/Ferro
Chrome(3) 145899 733.21 - - - -
(c) Other Raw - 2499.04 - - - -
Materials
- 1802.44 - - - -
(vi) Other 489.58 110.69 116.57
Products (4)
382.58 116.57 119.59
Numbers Numbers Numbers
(vii) Alloy - - - - - -
Steel Ball
Bearing Rings
(viii) Bearings 32876531 183.84 2143989 15.23 1950087 15.44
31338852 166.15 1950087 15.44 3968430 22.97
Tonnes Tonnes Tonnes
(ix) Metal- 13515 249.39 - - - -
lurgical
Machinery
9054 116.95 - - - -
(x) Sale of
Purchased
Materials
(a) Saleable 6 0.02 48 0.47 27 0.16
Steel (finished/
converted) 715 2.98 27 0.16 21 0.15
(b) Raw - 5.05 - - - -
Materials/Scrap/
Other Materials - 4.79 - - - -
30747.57 1392.51 1141.40
25755.52 1141.40 1361.85
Notes:
(1) Including steel material converted by re-rollers: 1436368 tonnes (2009-
10:1290621 tonnes).
(2) Includes Welded Steel Tubes converted under conversion arrangement
43407 tonnes (2009-10:39570 tonnes).
(3) Turnover includes Ferro Chrome converted under conversion arrangement
98247 tonnes (2009-10:96435 tonnes).
(4) Includes tubular steel structures Rs.429.13 crores (2009-10:Rs.331.71
crores).
(5) Previous years figures have been regrouped and recast wherever
necessary.
18. Purchase of Finished Semi-Finished Steel and Other Products:
Rs. crores
A. For Resale:
(i) Finished/Semi-Finished 3.39
Steel Materials
4.60
Numbers
(ii) Finished/Semi-Finished 4001576 18.83
Steel Materials-Agrico
2048366 7.77
Tonnes
B. For Own Consumption:
(i) Finished/Semi-Finished 19025 150.70
Steel Materials (1)
21528 148.47
(ii) Others 7.28
8.24
180.20
169.08
(1) Includes components for
manufacture of metallurgical
machinery Rs.56.71 crores
(2009-10:Rs.55.83 crores)
19. Raw materials consumed: @ Tonnes Rs. crores
(i) Iron ore 11737116 896.84
11181574 662.08
(ii) Coal [excluding 1199247 1134.07
5172834 tonnes (2009-10:
4905467 tonnes) valued at
Rs. 3230.02 crores (2009-10:
Rs.2811.75 crores) used for
manufacturing coke]
1119944 1108.07
(iii) Coke 3565464 3553.89
3422334 3120.28
(iv) Limestone and Dolomite 2392355 495.67
2225440 412.99
(v) Ferro Manganese 23836 103.82
21799 70.49
(vi) Zinc and Zinc Alloys 21231 234.31
22842 210.55
(vii) Spelter sulphur 1115813 1246.55
and other materials
1172425 1019.01
7665.15
6603.47
Note: @ The consumption
figures shown above are
after adjusting excess-
and shortages ascertained
on physical count
unserviceable items etc.
20. Value of direct
imports (C.I.F. Value):
Rs. crores
(i) Raw materials 4369.54
3102.57
(ii) Semi-finished products 23.55
5.38
(iii) Components stores 353.48
and spare parts
261.88
(iv) Capital goods 712.45
672.71
21. The value of consumption of directly imported and indigenously obtained
raw materials stores and spare parts and the percentage of each to the
total consumption:
Components stores
Raw materials and spare parts
Rs. crores % Rs. crores %
(a) Directly imported 4672.63 60.96 492.92 17.17
3941.88 59.69 521.94 20.23
(b) Indigenously 2992.52 39.04 2377.91 82.83
obtained 2661.59 40.31 2057.92 79.77
7665.15 100.00 2870.83 100.00
6603.47 100.00 2579.86 100.00
Less:Consumption 1113.57
charged to other 994.04
revenue accounts
1757.26
1585.82
Notes:
(i) The consumption figures shown above are after adjusting excess and
shortages ascertained on physical count unserviceable items etc.
(ii) In respect of items which are purchased both from indigenous and
imported sources, the identity of individual items consumed cannot be
established but segregation of consumption between imported and indigenous
sources has been made on a reasonable approximation determined from the
Company's records.
22. Expenditure in foreign currency:
Current Year Previous Year
Rs. crores Rs. crores
(i) Technical Know-how and 111.71 212.79
Technical Consultants' Fees
(net of taxes) including
Rs. 106.05 crores (2009-10:
Rs.212.17crores) on capital
account
(ii) Interest, commitment and 633.04 727.12
bank charges payable in foreign
currencies
(iii) Commission 28.48 16.47
(iv) Payable on other accounts 182.87 253.20
[including Rs.0.53 crore
(2009-10:Rs.102.14 crores)
on capital account]
23. Remittance in foreign currencies for dividends:
The Company has not remitted any amount in foreign currencies on account of
dividends during the year and does not have information as to the extent to
which remittances, if any, in foreign currencies on account of dividends
have been made by/on behalf of nonresident shareholders. The particulars of
dividends payable to non-resident shareholders (including non-resident
Indian shareholders) which were declared during the year, are as under:
Current Year Previous Year
(i) Number of non-resident 10,644 8,713
shareholders
(ii) Number of Ordinary shares 15,70,60,911 11,47,06,926
held by them
(iii) Gross amount of dividends Rs.125.64 Rs.183.53
crores crores
24. Earnings in Foreign Exchange:
(i) Export of steel and other materials (at F.O.B. value) Rs.2,252.37
crores (2009-10:Rs.2,034.81 crores) [including value of exports through
export houses].
(ii) Interest received Rs.57.90 crores (2009-10:Rs.20.60 crores).
(iii) Others Rs.63.70 crores (2009-10:Rs.44.07 crores).
25. Derivative Instruments:
I) The Company has entered into the following derivative instruments:
a) The Company uses foreign currency forward contracts to hedge its risks
associated with foreign currency fluctuations. The use of foreign currency
forward contracts is governed by the Company's strategy approved by the
Board of Directors, which provide principles on the use of such forward
contracts consistent with the Company's Risk Management Policy. The Company
does not use forward contracts for speculative purposes.
Outstanding Short Term Forward Exchange Contracts entered into by the
Company on account of payables:
As at No. of US Dollar INR Equivalent
Contracts Equivalent (Rs. crores)
(million)
31.03.2011 57 297.23 1,325.52
31.03.2010 42 267.91 1,203.65
Outstanding
Short Term
Forward
Exchange
Contracts
entered into
by the Company
on account of
receivables:
31.03.2011 22 830.93 3,704.70
31.03.2010 - - -
(Forward exchange contracts outstanding as on 31st March 2011 include
Forward Purchase of United States Dollars against Indian National Rupees
for contracted imports).
Outstanding Long Term Forward Exchange Contracts entered into by the
Company:
As at No. of US Dollar INR Equivalent
Contracts Equivalent (Rs. crores)
(million)
31.03.2011 31 1,746.48 7,788.45
31.03.2010 31 1,639.61 7,364.74
(Long Term Forward Exchange Contracts outstanding as on 31st March, 2011
have been used to hedge the Foreign Currency Risk on repayment of External
Commercial Borrowings and Export Credit Agency Borrowings of the Company).
b) The Company also uses derivative contracts other than forward contracts
to hedge the interest rate and currency risk on its capital account. Such
transactions are governed by the strategy approved by the Board of
Directors which provide principles on the use of these instruments,
consistent with the Company's Risk Management Policy. The Company does not
use these contracts for speculative purposes.
Outstanding Interest Rate Swaps to hedge against fluctuations in interest
rate changes:
As at No. of US Dollar INR Equivalent
Contracts Equivalent (Rs. crores)
(million)
31.03.2011 4 244.48 1,090.00
31.03.2010 4 242.67 1,090.00
All the above swaps and forward contracts are accounted for as per
Accounting Policies stated in Notes on Balance Sheet and Profit and Loss
Account, Schedule M 1(f).
II) The year end foreign currency exposures that have not been hedged by a
derivative instrument or otherwise are given below:
As at 31.03.2011 As at 31.03.2010
US Dollar INR US Dollar INR
Equivalent Equivalent Equivalent Equivalent
(million) (Rs. crores) (million) (Rs. crores)
A. Amounts receivable
in foreign currency
on account of the
following:
Loans Receivable 101.28 451.54 98.19 441.04
Deposits - - 45.55 204.62
Interest receivable 20.63 91.99 11.07 49.74
Bill Discounted and 31.02 138.30 45.84 205.92
Debtors Outstanding
B. Amounts payable
in foreign currency
on account of the
following:
Import of goods and 67.64 301.62 43.90 197.24
services
Capital imports 35.92 160.20 20.40 91.67
Interest and commitment 20.04 89.35 17.30 77.74
charges payable
Loans payable 1,593.75 7,107.33 1,135.96 5,103.59
26. Previous year's figures have been recast/restated where necessary.
27. Figures in italics are in respect of the previous year.
In terms of our report attached
For DELOITTE HASKINS & SELLS
Chartered Accountants,
P R RAMESH
Partner.
For and on behalf of the Board
RATAN N TATA B MUTHURAMAN
Chairman Vice Chairman
NUSLI N WADIA H M NERURKAR
JAMSHED J IRANI Managing Director
S M PALIA
ISHAAT HUSSAIN
SUBODH BHARGAVA
JACOBUS SCHRAVEN
ANDREW ROBB
KARL-ULRICH KOEHLER
Directors
A. ANJENEYAN
Mumbai, 25th May, 2011 Company Secretary
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