Integrated Report &
Annual Accounts 2018–19
112th Year
Contents
STRATEGIC REPORT
Our Leadership
Our Business
Our Strategy
Our Capitals
WeAlsoMakeTomorrow
1
3
4
6
8 Management Speak
Year at a Glance
Board of Directors
From the Chairman’s Desk
14 Organisational Overview
16
18
20 Business Model
Products and Markets
Approach to Value Creation
Strategy
Stakeholder Engagement
24
28
30 Material Issues
32 Risks and Opportunities
Corporate Governance
36
40 Our Capitals
42
Financial Capital
46 Manufactured Capital
52
58 Human Capital
68 Natural Capital
76
Intellectual Capital
Social and Relationship
Capital
Awards and Recognitions
88
Forward Looking Statements
Certain statements in this report regarding our business
operations may constitute forward-looking statements.
These include all statements other than statements of
historical fact, including those regarding the financial
position, business strategy, management plans and
objectives for future operations.
Forward-looking statements can be identified by words
such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’,
‘intends’, ‘may’, ‘will’, ‘plans’, ‘outlook’ and other words
of similar meaning in connection with a discussion of
future operational or financial performance.
Forward-looking statements are necessarily dependent
on assumptions, data or methods that may be
incorrect or imprecise and that may be incapable of
being realised, and as such, are not intended to be a
guarantee of future results, but constitute our current
expectations based on reasonable assumptions. Actual
results could differ materially from those projected in
any forward-looking statements due to various events,
risks, uncertainties and other factors. We neither assume
any obligation nor intend to update or revise any
forward-looking statements, whether as a result of new
information, future events or otherwise.
STATUTORY REPORTS
FINANCIAL STATEMENTS
90 Board’s Report
109 Annexures
195 Financial Highlights
199 Standalone
293 Consolidated
419 Notice
ABOUT THIS REPORT
Our Approach to Reporting
This is the fourth Integrated Report of Tata Steel Limited
(Tata Steel). Our Integrated Report provides quantitative
and qualitative disclosures on our relationships with
the stakeholders and how our leadership, culture and
strategy are aligned to deliver value while managing risks
and changes to the external environment. Our Report
continues to evolve towards enhanced disclosures
to meet the requirements of our investors and other
stakeholders.
Reporting Principle
The financial and statutory data presented in this Report
is in line with the requirements of the Companies Act,
2013 (including the rules made thereunder), Indian
Accounting Standards, the Securities and Exchange
Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and the Secretarial
Standards. The Report is prepared in accordance with
the framework of the International Integrated Reporting
Council (IIRC) and discloses performance against the Key
Performance Indicators (KPIs) relevant to Tata Steel, as
per the Global Reporting Initiative (GRI), the Securities
and Exchange Board of India (SEBI) and World Steel
Association (worldsteel).
Reporting Period
The information is reported for the period April 1, 2018 to
March 31, 2019. For KPIs, comparative figures for the last
three to five years have been incorporated in the Report
to provide a holistic view to our stakeholders.
Scope and Boundary
This Report covers information on Tata Steel, including
the Tata Steel plants (at Jamshedpur, Jharkhand and
Kalinganagar, Odisha), Raw Materials Division, and Profit
Centers.
Approach to Materiality
The Report presents an overview of our business and
associated activities that help in long-term value creation.
Report content and presentation is based on material
issues to Tata Steel and its stakeholders. Material issues
are gathered from multiple channels and forums of
engagement across the organisation and from external
stakeholders. In Finanacial Year 2018-19, Tata Steel
updated its Environmental, Social and Governance (ESG)
material issues and incorporated them in its long-
term plans.
Management Responsibility
To optimise governance oversight, risk management and
controls, the contents of this Report have been reviewed
by the senior executives of the Company, including the
Chief Executive Officer and Managing Director, Executive
Director and Chief Financial Officer, Vice President Safety,
Health & Sustainability and Company Secretary & Chief
Legal Officer (Corporate & Compliance).
Independent Assurance
Assurance on financial statements has been provided by
independent auditors Price Waterhouse & Co. Chartered
Accountants LLP and non-financial statements by KPMG.
The certificate issued by KPMG is available on our website
at www.tatasteel.com or can be accessed at
https://bit.ly/2WQGHe8.
The steel we produce is used
in making iconic structures,
smarter cities, and cleaner and
safer automotive solutions.
We are exploring uncharted
territories in new technologies
and materials to develop
new businesses and value-
added products while acting
responsibly to ensure a long-
lasting positive impact on the
society and environment.
www.wealsomaketomorrow.com
FY 2018-19
Highlights
(Consolidated)
26.80 MnT
Deliveries
`1,57,669 Cr.
Turnover
`29,770 Cr.
EBITDA
`9,098 Cr.
Profit After Tax
(PAT)
Our steel has gone into the making of
futuristic structures and buildings across
the globe.
Taipei 101, Taipei, Taiwan
The London Eye, London
Marina Bay Sands, Singapore
Bogibeel Bridge, Assam, India
Kempegowda International Airport, Bengaluru, India
2
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR YEAR AT A GLANCE*
Achievements of today for a brighter tomorrow
Turnover
₹70,611 Cr.
EBITDA Margin
29%
Profit After Tax (PAT)
₹10,533 Cr.
CAPEX
₹3,677 Cr.
Crude Steel Production
13.23 MnT
Total Sales
12.7 MnT
Enriched/Value-added Products
8.6 MnT
Revenue from By-products
₹3,426 Cr.
Savings through Shikhar25
₹2,801 Cr.
GHG Emissions Intensity
2.34 tCO2e/tcs
Lost Time Injury Frequency Rate (LTIFR)
0.29
Solid Waste Utilisation
99%
Specific Water Consumption
3.5 m3/tcs
* All figures are on a Standalone basis as on March 31, 2019
Customer Satisfaction
Index (Steel) (Out of 100)
81.6
CSR Outreach
>1.1 million
Ownership
structure
Principal activities
and revenue streams
50.30%
Institutions
16.58%
Retail Shareholders
93.7%
Steel Value Chain
33.12%
Promoter and
Promoter Group
5.7%
Raw Materials
Value Chain
0.6%
Other Businesses
Tata Steel acquires
Bhushan Steel
Tata Steel group acquires
Usha Martin Steel Business
During Financial Year 2018-19, Tata Steel acquired Bhushan
Steel Limited. This acquisition has significantly added to our
steel business and helped expand our footprint in India.
Tata Steel group acquired the steel business of Usha Martin Limited
through one of its subsidiaries. This move helps the Company to
create a globally competitive long products business focussed
on value-added and differentiated products while achieving cost
competitiveness.
3
BOARD OF DIRECTORS (As on April 25, 2019)
Guiding the path to tomorrow
Mr. Ratan N. Tata
Chairman Emeritus
BOARD COMMITTEES
1. Audit
2. Nomination and Remuneration
3. Corporate Social Responsibility
and Sustainability
4. Risk Management
5. Stakeholders' Relationship
6. Safety, Health and Environment
Member
Chairperson
Parvatheesam K
Company Secretary & Chief Legal Officer
(Corporate & Compliance)
4
Standing (Left to Right)
T. V. Narendran
Chief Executive Officer and
Managing Director
V. K. Sharma
Non-Executive Director
Peter Blauwhoff
Independent Director
3
4
5
6
5
6
1
4
6
Sitting (Left to Right)
Aman Mehta
Independent Director
N. Chandrasekaran
Chairman of the Board and
Non-Executive Director
1
4
2
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Deepak Kapoor
Independent Director
Saurabh Agrawal
Non-Executive Director
1
3
5
1
4
Koushik Chatterjee
Executive Director and
Chief Financial Officer
3
4
5
Mallika Srinivasan
Independent Director
O. P. Bhatt
Independent Director
2
6
1
2
3
5
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 FROM THE CHAIRMAN’S DESK
Well positioned to capitalise
on opportunities
Dear Stakeholders,
It is a privilege to write to you as the
Chairman of the Board of Tata Steel.
Financial Year 2018-19 was a good year for
your Company, wherein your Company
executed well on its strategic roadmap and
delivered a strong financial performance.
Last year in my communication to you,
I shared with you the Company’s strategy
to leverage the growth potential of the
Indian economy by pursuing both organic
and inorganic growth opportunities. I am
happy to share with you that your Company
has made significant progress in this regard.
Your Company undertook the following
tangible steps to strengthen and expand
the India operations.
6
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Financial Year 2018-19 was a good year for your
Company, wherein your Company executed well
on its strategic roadmap and delivered a strong
financial performance.
Your Company successfully completed
the acquisition of Bhushan Steel (now
named Tata Steel BSL) under the Insolvency
and Bankruptcy Code process. This was
an important strategic acquisition.
The integration is proceeding well with
identified synergies and roll-out of
the performance improvement plan.
The Board has given the approval for the
amalgamation of Tata Steel BSL with your
Company and the process is currently
underway. This would further help in
realising synergies and create a unified and
simple organisation.
In addition to Tata Steel BSL, your Company
also acquired the steel business of Usha
Martin Limited, through its subsidiary
company, Tata Sponge Iron Limited.
This acquisition has strategically enhanced
the value-added long product portfolio of
your Company and expanded its presence
in the premium and niche segment for
automotive customers.
Your Company continues to grow its India
capacity through brownfield expansion of
the Kalinganagar facilities.
In Europe, your Company’s operations
continued to face challenges. The
production was lower due to operational
issues at both sites in the UK and IJmuiden.
On a consolidated basis, your Company
achieved the highest ever levels of revenues
and EBITDA this year. I am happy to report
that the Company has generated positive
free cash flows of ₹8,839 crore this year, for
the first time in over a decade.
As you are aware, your Company had
proposed to form a joint venture with
thyssenkrupp to combine the steel
businesses in Europe, as a part of the
effort to build a sustainable business in
Europe. Unfortunately, this proposal has
not met with the approval of the European
Commission and your Company has
decided not to continue on this path.
Your Company’s overall situation is
much better now. Your Company’s India
capacity and contribution has expanded
significantly. The plant in the UK contributes
to 11% of your Company’s total capacity
and the plant at IJmuiden contributes to
22% of your Company’s capacity. Your
Company is on the path to drive operational
improvement and positive cash flows.
Steel is a strategic material for growth and
development of nations and has a multiplier
impact on the economy and society. India
has the unique advantage of a young and
aspirational population and high economic
growth, which would drive sustained
demand for industries such as steel. India
also has a large natural resource base and
skilled manpower to be one of the most
competitive manufacturers of steel globally.
While the short-term global macroeconomic
and geopolitical situation may continue to
throw some challenges, the future holds
many opportunities for your Company.
Your Company is well positioned to
capitalise on the opportunities and deliver
strong growth.
I would like to thank all the shareholders
for their faith in and support to the
Company. I would also like to thank all other
stakeholders, including the employees,
unions, customers, government and
suppliers, for their continued support.
Warm regards,
N. Chandrasekaran
Chairman of the Board
7
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT SPEAK
Prudent steps for a
stronger tomorrow
T. V. Narendran
Chief Executive Officer and Managing Director
Koushik Chatterjee
Executive Director and Chief Financial Officer
Q: How has Tata Steel group performed
Q: The second half of 2018 saw a
in Financial Year 2018-19?
Financial Year 2018-19 was a strategically
important year for us. Even though the
macro environment remained mixed,
we progressed significantly on our strategic
goals, focussing on operating performance
to register the highest ever EBITDA,
enhancing our footprint in India through
the acquisition of Bhushan Steel and Usha
Martin Steel businesses, and strengthening
our balance sheet through significant
deleveraging from the peak debt post the
acquisition of Bhushan Steel.
slowdown in growth owing to trade
tensions and the geo-political
environment and the same is
expected to continue in the first half
of 2019. How do you expect this to
affect the steel industry?
2018 witnessed a slowdown in global
growth, primarily due to the decline in trade
and manufacturing activity across most
industrial sectors, increased trade tensions
among major economies, tightening of
financial conditions and policy uncertainty
in many economies. Despite this slowdown,
global steel demand showed resilience and
grew at 2.1%, supported by some recovery,
in investment activities and improved
performance of emerging markets and
developing economies. In the coming
year, global steel demand is expected to
witness a gradual recovery, though at a
lower pace, owing to risk of uncertainty
over the trade environment. Though the
economic fundamentals of the European
Union economy remain relatively stable,
steel demand in 2020 will show some
deceleration over the growth seen in
2018 and 2019, partly due to uncertainties
resulting from global trade tensions and
8
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR At Tata Steel, we have always focussed on sustained
growth in India and we believe that, the steps taken
during the year will place us in a good position to
capitalize on the opportunities in the future.
the uncertainties about Brexit. In 2019,
US growth is also expected to slow down
with the effect of fiscal stimulus tapering off
and the normalisation of monetary policy.
In India, steel demand in the first half of the
financial year was more stable than in the
second half and there has been a distinct
decline in the automotive sector and other
sectors in the second half of the year. One
of the key issues has been the credit flow
in the system and we hope that structural
policy actions will be undertaken to ensure
that increased credit flow is restored and
private investment is encouraged to revive
the economy.
Q: Steel demand in India is expected to
increase in the medium term. What
is your preparedness to capitalise on
these opportunities?
We recognise that there is a significant
potential for increase in steel demand
in India in the long term given that per
capita steel consumption in 2018 was
less than one-third of the world average.
Various government initiatives, including
‘Make in India’ projects, increased spending
on infrastructure and increased focus on
rural development are likely to support
increase in domestic demand for steel,
providing opportunities for domestic steel
players. At Tata Steel, we have always
focussed on sustained growth in India and
we believe that the steps taken during
the year will place us in a good position to
capitalize on the opportunities in the future.
During the year, we successfully completed
the acquisition of Bhushan Steel (renamed
Tata Steel BSL) to add to our downstream
capability and complement our product
mix. We have had a very encouraging start
to the integration journey and are well on
our way to ramp up the capacity of Tata
Steel BSL to the rated level. This acquisition
has provided us the opportunity to scale-up
our operations and strengthen our market
position in various market segments.
An important area of focus in the coming
year will be to continue our efforts to
further integrate the business of Tata Steel
BSL with the existing business operations
in Tata Steel Limited through the process of
amalgamation. This integration, we believe,
will realise synergies, including better
facility utilisation, efficient and assured
availability of raw materials, reduced
logistics and procurement costs, efficiencies
arising out of a single value chain,
reduced working capital, simplification
of the operating structure and improving
customer satisfaction levels.
We also envisage that the demand for
long products will grow significantly in the
future. Tata Steel is already present in the
long products business and is recognised
for its high-quality products such as
rebars, wire rods and wires. However, to
augment its long products capacity and be
prepared to cater to the increasing demand,
we acquired the 1 MnTPA steel business
(including captive power plants) of Usha
Martin Limited through our subsidiary
company, Tata Sponge Iron Limited.
The acquisition will help the Company
retain its long product market share while
marking an entry into the special steels
segment as well as to enhance its product
basket for automotive customers.
During the year, we also commenced the
Tata Steel Kalinganagar Phase II expansion
project to augment the cumulative capacity
of the Kalinganagar plant from 3 MnTPA
to 8 MnTPA. As part of the expansion in
Kalinganagar, we are building a 5800 cubic
metre blast furnace, which will enhance the
asset productivity significantly, along with a
state-of-the-art cold rolling mill complex to
produce value-added products. We will be
expanding the existing steel melting shop
and hot strip mill and will also be adding
a coke oven battery and a pellet plant.
The project involves a capital expenditure of
₹23,500 crore. The project scope and costs
include investments in raw material capacity
expansion, upstream and midstream
facilities, infrastructure and downstream
facilities. The expansion work is in progress
and the facilities will be commissioned in
phases, with the first commissioning of
the cold rolling mill facilities in Financial
Year 2020-21 followed by the balance
commissioning. The expanded capacity will
9
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT SPEAK (Continued)
We will continue to focus on deleveraging as a
primary strategic initiative to rebuild the balance
sheet strength.
help us produce value-added products,
including cold rolled galvanised and
annealed products, and will enable us to
meet the requirements of the automotive,
general engineering and other high-end
quality product market segments.
We are positive that through our existing
operations in India, coupled with these
organic and inorganic growth initiatives,
we are on the right path towards
strengthening our business in India and
are well poised to take advantage of the
potential opportunities in India.
Q: There is a considerable amount of
debt on the books of the Company.
What steps are you taking to
deleverage the balance sheet?
During the first half of Financial Year
2018-19, the gross debt level at ₹1,18,680
crore was at its peak owing to the
acquisition of Bhushan Steel (Tata Steel BSL).
Through conscious and rigorous efforts, we
reduced our gross debt by ₹17,864 crore to
end the year with a debt of ₹1,00,816 crore.
We will continue to focus on deleveraging
as a primary strategic initiative to rebuild
the balance sheet strength.
Despite some stress in the domestic debt
markets, we extended the Company’s debt
maturity profile by successfully raising
₹4,315 crore through non-convertible
debentures with a maturity of 15 years.
We also put in place a 12-year long-term
take-out financing for ₹15,500 crore at
Tata Steel BSL Limited. The changes in the
financial risk profile of the Company are
reflected in the upgrade of our credit rating
by Moody’s from ‘Ba3’ to ‘Ba2’ with positive
outlook in February 2019 as well as in the
revision in outlook by S&P in April 2019.
Our aim will be to further deleverage
the balance sheet of the Company, in
Financial Year 2019-20 and beyond,
through a combination of internal cashflow
generation and continuing efforts to
rationalise the portfolio to focus on our core
businesses and markets, while continuing to
facilitate our key growth initiatives.
remedy package would have adversely
affected the basic foundation of the
proposed joint venture and the intended
synergies arising from the merger to such
an extent that the economic logic of the
joint venture would no longer be valid and
its fundamental sustainability would be
severely impacted.
Q: What are your future plans regarding
the European business?
During the year, the revenues from Tata
Steel Europe stood at ₹64,777 crore while
the EBITDA was ₹5,414 crore, reflecting an
increase of 46% over the previous year.
In June 2018, we had signed definitive
agreements with thyssenkrupp to combine
our steel businesses in Europe to create
a 50:50 pan-European joint venture
company focussing on customer centricity,
technology and sustainability. This merger
transaction, like any other, was subject
to merger control clearance in several
jurisdictions, including most importantly,
by the European Commission. As part of
the application made to the European
Commission, a comprehensive package
of remedies (sale of production assets to
unrelated competitors) was offered covering
all the areas of concern highlighted by the
Commission. The remedies offered were
developed considering the overall industrial
strategy for the proposed joint venture,
the integrated and complex nature of the
supply chain to service customers and the
need to build a sustainable business that
would be able to endure the structural
challenges faced by the European steel
industry. However based on the adverse
feedback received from the European
Commission, both parties decided not
to pursue the transaction as any further
commitments or improvements to the
We remain committed to these strategic
goals and will continue to focus on
improving the operational performance
to enhance earnings and cash flows to
ensure that the European business is
self-sustaining.
Q: One of the strategic objectives for
Tata Steel is to consolidate its position
as a global cost leader. What is your
plan to meet this objective?
At Tata Steel, we are focussed not just on
growth, but on sustainable growth, to
make a better tomorrow for our business
and for all our stakeholders. While we are
keenly focussed on our long-term strategy
to be the industry leader in steel globally
and are channelising our efforts towards
growth, we have set for ourselves other
strategic objectives that will help sustain
our business in the future.
Alongside growth, we are also focussed
on consolidating our position as a global
cost leader and are taking several initiatives
in this direction, including driving
digitalisation across several processes
and functions, structural cost take-out
programmes through our improvement
programmes, enhancing employee
productivity and investing in logistics
and supply chain efficiencies. We are also
investing in our mining operations both
from capacity enhancement and cost
efficiency perspectives.
10
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Q: Tata Steel has also ventured into the
Q: Tata Steel has recently entered
Q: What steps are you taking to meet
new materials business. What benefits
do you see from this business?
We are harnessing the power of emerging
technologies and processes in material
sciences to create sustainable solutions for
end product use in the coming decades.
We recognise that investment in technology
and innovation is a prerequisite for a
sustainable future.
At Tata Steel, we are keen to find innovative
solutions to the way we conduct business
and have embarked on a journey to
become a technology leader not only
in the steel but also in the materials
business. Moving beyond steel, we have
set up a new business vertical that will
explore the possibilities of entering the
non-steel materials segment. We are
focussing on composite materials such
as Fibre Reinforced Polymer (FRP), a
light and corrosion-resistant, structural
material similar to steel. Our focus in the
new materials business will be to cater
to four sectors i.e., the railway, industrial
goods, infrastructure and automotive
sectors. We believe our product offering
will be of high quality, cost effective and
bring superior value to our customers in
these sectors, consequently giving us a
differentiated and leadership position in the
market in the coming years.
into the steel recycling business.
How would you align this with your
strategic objectives and what change
do you expect this business to bring in
the way you conduct your business?
As one of the leading and pioneering
steelmakers, it is our responsibility to
protect and preserve the planet for future
generations. Globally, we are moving from
a linear business model towards a circular
economy. Reduce, reuse and recycle is
the new way to drive optimal resource
efficiency. The steel industry is an integral
part of the circular economy and we have
a vision to be an active participant in the
circular economy. Steel is 100% recyclable
material and can be used repeatedly to
create new steel products, without losing
the inherent properties of steel. This helps
reduce the use of natural resources as well
as leads to low CO2 emissions.
Tata Steel has always been committed to
sustainable growth, which includes our
responsibility towards its customers as well
as towards the environment. In preparing
for the future, Tata Steel has set up a steel
recycling business to meet the growing
demand for steel in a sustainable manner
in the long run. The steel recycling business
will help formalise the scrap market in India
and help the country transition to a scrap-
based steelmaking route in the long term.
your strategic objective of being an
industry leader in Safety, Health and
Environment (SHE) and Corporate
Social Responsibility (CSR)?
Acting with responsibility towards planet
Earth, ensuring the health and safety of
people at all our workplaces, balancing
economic prosperity, and generating social
benefits for the community are the rules by
which Tata Steel operates.
We understand that health and welfare of
our people, the community and society,
as a whole, is intrinsic to our approach to
business and hence, we persevere to create
a safe and healthy environment for all
employees and stakeholders and to be an
industry leader in SHE and CSR. We aspire
to achieve this objective through enhanced
focus on reducing unsafe incidents at the
workplace and reducing carbon emissions
and consumption of depleting natural
resources.
To contribute towards the socio-economic
development of the areas where we
operate, we undertake various CSR
initiatives in the areas of health, education,
livelihood, sports and infrastructure
development with indigenous communities.
We have partnered with various
organisations to work for the upliftment
of our communities and will continue to
deepen our engagement with communities,
with an aim to touch more than 2 million
lives by 2025 through our CSR initiatives.
Panview of Kalinganagar Steel Plant
11
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 We
Seize
We
Seize
New opportunities
We were the first to acquire a major stressed asset under the
Insolvency and Bankruptcy Code. The acquisition of Bhushan
Steel Limited, now renamed as Tata Steel BSL Limited, has
significantly expanded our footprint in India and will be
value-accretive going forward.
5.6 MnTPA
Total capacity of Tata Steel BSL Limited
ORGANISATIONAL OVERVIEW
Vibrant and future-ready
Established in Jamshedpur, India in 1907, Tata Steel is a flagship entity of the
150-year old Tata group. Embodying the vision of the Tata group founder,
Jamsetji Nusserwanji Tata, Tata Steel group, today, is one of the world’s most
geographically diversified steel producers and is recognised as the hallmark for
corporate citizenship and business ethics.
Tata Steel has manufacturing units at Jamshedpur, Jharkhand and
Kalinganagar, Odisha with production capacities of 10 MnTPA and 3 MnTPA,
respectively. In Financial Year 2018-19, the Company initiated a 5 MnTPA
expansion project at Kalinganagar to enhance its cumulative capacity
to 8 MnTPA.
Prepared for the future
Tata Steel operates with a completely integrated
value chain that extends from mining to finished
steel products. With a relentless focus on innovation
and cutting-edge technologies, we are building a
sustainable business enterprise.
Innovation
Technology
Sustainability:
We focus on creating solutions that make
a positive difference to the society with
patents, new products, new materials and
by developing in-house technologies for
sustainable performance.
We value the importance of technology as
a strategic enabler and intend to leverage
both steel technology and digital interface to
achieve service excellence.
We remain committed to conserving
natural resources while ensuring
sustainable growth and fostering strong
relationship with communities.
14
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Vision
We aspire to be the global steel industry benchmark
for Value Creation and Corporate Citizenship.
We make a difference through;
Our
People
Our
Offerings
Our
Conduct
Our
Policies
Our
Innovative
Approach
Mission
Consistent with the vision
and values of the founder
Jamsetji Tata, Tata Steel
strives to strengthen India’s
industrial base through
effective utilisation of staff and
materials. The means envisaged
to achieve this are cutting
edge technology and high
productivity, consistent with
modern management practices.
Tata Steel recognises that
while honesty and integrity are
essential ingredients of a strong
and stable enterprise, profitability
provides the main spark for
economic activity. Overall, the
Company seeks to scale the
heights of excellence in all it does
in an atmosphere free from fear,
and thereby reaffirms its faith in
democratic values.
Values
Integrity
We will be fair, honest,
transparent and ethical in our
conduct; everything we do
must stand the test of public
scrutiny.
Excellence
We will be passionate about
achieving the highest
standards of quality, always
promoting meritocracy.
Unity
We will invest in our people
and partners, enable
continuous learning, and
build caring and collaborative
relationships based on trust
and mutual respect.
Responsibility
We will integrate
environmental and social
principles in our businesses,
ensuring that what comes from
the people goes back to the
people many times over.
Pioneering
We will be bold and agile,
courageously taking on
challenges, using deep
customer insight to develop
innovative solutions.
15
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 PRODUCTS AND MARKETS
Diversified portfolio across markets
AUTOMOTIVE
Market
Sub-segments
Products
and Brands
Auto OEMs*
B2B
Hot-rolled (HR), Cold-rolled (CR),
Coated Sheets, Steel Coils and Sheets
Auto Ancillaries
B2B B2ECA
HR, CR, Coated Steel Coils and Sheets,
Precision Tubes, Tyre Bead Wires, Spring
Wires, Bearings
CONSTRUCTION
Market
Sub-segments
Products
and Brands
Individual House
Builders
B2C
Tata Tiscon (Rebars), Pravesh (Steel Doors
and Windows), Tata Shaktee (Roofing
Sheets), Tata Pipes (Plumbing Pipes),
Tata Structura (Tubes)
Corporate and
Government
Bodies
B2B B2G
Nest-In (Habinest – Prefabricated Houses,
AquaNest Water Kiosks, Ezynest Modular
Toilets, MobiNest – Office Cabins,
Nestudio – Rooftop Houses)
Infrastructure
B2B
TMT Rebars (Higher Dia Rebars and
Corrosion-resistant Steel)
Housing and
Commercial
B2ECA
Tiscon Readybuild (Cut and Bend Bars),
Tata Structura (Tubes), PC Strands (LRPC)**,
Tata Nirman, Tata Aggreto, Ground
Granulated Blast Furnace Slag (GGBS)
B2B
B2C
INDUSTRIAL AND GENERAL ENGINEERING
Market
Sub-segments
Products
and Brands
Panel and
Appliances,
Fabrication and
Capital Goods,
Furnitures
Tata Steelium (CR),
Galvano (Coated),
Tata Astrum (HR),
Tata Structura (Tubes)
B2ECA
LPG
B2B
Welding
B2B
HR
Wire Rods
Process Industries
(e.g., Cement,
Power, Steel)
B2B
Tata Tiscrome (Ferro Chrome),
Tata Ferromag (Ferro Manganese),
Boiler Tubes, Tata Pipes, Tata Ferroshots,
Blast Furnace (BF) Slag, Metallics
AGRICULTURE
Market
Sub-segments
Products
and Brands
Agri Equipment
Bearings
B2B
Fencing, Farming
and Irrigation
Galvanised Iron (GI), Wires, Agri and
Garden Tools, Conveyance Tubes
B2C
B2G
B2ECA
B2ECA - Business to Emerging
Corporate Account
B2B - Business to Business
B2C - Business to Consumer
B2G - Business to Government
*OEM - Original Equipment Manufacturer
**LRPC - Low-Relaxation Pre-stressed Concrete
16
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Our footprint
We are primarily involved in the business of mining,
steelmaking and downstream value-added products
and solutions. Our operational footprint has been
indicated on the map.
MANUFACTURING
LOCATIONS
Jamshedpur
Flat Product 7 MnTPA
Long Product 3 MnTPA
Kalinganagar
Flat Product 3 MnTPA
DOWNSTREAM OPERATIONS
Location
Nature of operations
1
Jamshedpur
2
3
4
5
Tarapur
Pithampur
Killa
Kharagpur
Tubes
Manufacturing and
Tinplate
Wire Manufacturing
Bearings
Manufacturing
S
S
S
4
3
S
S
S
2
S
S
RAW MATERIAL LOCATIONS
RAW MATERIALS REVENUE STREAM
(FERRO ALLOYS AND MINERALS)
19
S
5
8
12
S
11
10
1
21
6
13 20
2
16
7
17
9
18
14
S
15
Nature of operations
Location
Nature of operations
Nature of operations Locations
Location
6
7
8
9
Noamundi
Joda East
Katamati
Khondbond
Iron Ore Mines
and Quarries
10
West Bokaro
Open Cast
Coal Mines
11
Jamadoba
Group
12
Sijua Group
Note: Map not to scale
Underground
Coal Mines
13
14
15
16
17
18
19
20
21
Joda
Bamnipal
Gopalpur
Sukinda
Joda West
Bambebari
Malda
Tiringpahar
Ferro Alloys Plant
Chromite Mine
Manganese Mines
Zonal Hubs
Stockyards
Distributors
Dealers
S Steel Processing
Centres (SPCs)
6 [Delhi, Faridabad,
Nagpur, Kolkata, Chennai
and Vijayawada]
18 [not on map]
202 [not on map]
12,000+ [not on map]
37 SPCs across 11 locations
[Jamshedpur,
Kalinganagar, Chennai,
Kolkata, Faridabad,
Manesar, Pune, Mumbai,
Indore, Delhi and Nagpur]
Gomardih
Dolomite Mine
Sales Offices
27
17
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
APPROACH TO VALUE CREATION
Focussed on delivering long-term value
As a leading steel manufacturer, we are committed to delivering products, providing services and creating employment
opportunities that contribute towards sustained economic and social value. We have a structurally strong business model.
We focus on operational excellence and are leaders in chosen market segments. We intend to create value by maintaining our
leadership position through scale, cost leadership and innovation.
Our value drivers
Maintain
leadership
position in
chosen market
segments
Focus on cost
competitiveness
to ensure and
enhance organic
cash flow from
business
Drive
synergies from
acquisitions
Focus on allocating
capital efficiently,
including divesting
non-synergistic
assets
Focus on
deleveraging the
balance sheet
Our imperatives for long-term value creation
Tata Steel BSL
Steel Plant
Kalinganagar
Steel Plant
The Shard, London
Graphene Centre,
Jamshedpur Steel Plant
RESHAPING TATA STEEL
PORTFOLIO PRIORITIES
FINANCIAL HEALTH
NEW INITIATIVES
• Ensure seamless
completion of
capacity expansion at
Kalinganagar by 5 MnTPA
• Focus on ramping
up of Tata Steel BSL,
downstream value
addition, growing long
products portfolio and
driving system synergies
from acquisitions
• Create a sustainable
business in Europe
• Focus on reducing leverage
through higher operating
cash flows, monetisation of
non-synergistic ventures and
strategic restructuring
• Maintain well-spread debt
maturity profile
• Derive cost effectiveness
through structured
continuous improvement
programmes such as
Shikhar25
• Expand downstream product
portfolio: ~30% of total
volume from downstream
products
• Focus on Services and
Solutions portfolio: ~20% of
revenue by 2025
• Grow beyond steel – Focus
on new materials: ~10% of
revenue by 2025
• Focus on strengthening
footprint in India – Best
positioned to leverage
growth opportunities in
India
• Enable growth without
increasing leverage
18
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Our interventions to be future ready
Leverage digital
technology to
enhance efficiency
and enable business
transformation
Focus on R&D
and technology
to achieve
technology
leadership in steel
industry
Create a
sustainable value
chain through
business model
innovations
Focus on safety
leadership and
achieve Zero LTI
Be the industry
leader in CSR and
gain the social
license to operate
Our ‘multi-capital’ approach
We recognise that our ability to generate economic value is
dependent on a multi-capital approach that not only leverages
financials but also skilled employees, innovation, community
relationships and key natural resources. True to our founding
philosophy of ‘profits with a purpose’, we continue to invest
beyond operational activities.
Recognising our raw material dependencies, we work towards
optimising the use of natural resources and reducing our impact
on the environment. Our community programmes help us gain the
social license to operate and flourish together with the communities
we operate in.
Creating value for sustainable development
In the process of managing our multiple capitals and value creation, we make significant contribution to the United
Nations Sustainable Development Goals (UN SDGs). We believe our priorities for sustainable development are aligned
to that of India’s and as a responsible corporate citizen, we are mapping our contribution to the following SDGs.
19
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 BUSINESS MODEL
How we create value
INPUTS
VALUE CREATION APPROACH
Financial Capital
Net Worth (` Cr.)
Gross Debt (` Cr.)
Manufactured Capital
TSL capacity – Crude Steel (MnT)
Steel processing centres - Own (Nos.)
Intellectual Capital
Collaborations/memberships
(Technical Institutes)* (Nos.)
Patents filed* (Nos.)
R&D spend (` Cr.)
Human Capital
Employees on roll (Nos.)
Investment in employee
training and development (` Cr.)
Employee training
(mandays/employee/year)
Natural Capital
TSL - Energy intensity (Gcal/tcs)
TSL - Specific water
consumption (m3/tcs)
Captive iron ore (%)
Captive coal (%)
Inbound raw materials (MnTPA)
Capital spend on environment (` Cr.)
72,730
29,701
13
37
40
1,058
216
32,984
~133
7.52
5.82
3.5
100
27
~ 40
286
Social & Relationship Capital
Pan India dealers and
distributors (Nos.)
12,000+
Application engineers working
jointly with customers (Nos.)
Customer-facing processes (Nos.)
Customer service teams (Nos.)
Supplier base (Nos.)
CSR spend (` Cr.)
43
11
25
> 5,000
315
Our Vision
We aspire to be the global steel industry
benchmark for value creation and
corporate citizenship
TATA CODE OF CONDUCT
POLICIES THAT GOVERN OUR BUSINESS
Our Values
INTEGRITY
EXCELLENCE
UNITY
RESPONSIBILITY
PIONEERING
Panview of Jamshedpur Steel Plant
Tata Steel Value Chain
S
C
I
T
S
I
G
O
L
D
N
U
O
B
N
I
PROCESSED RAW
MATERIAL
MINING
IRON MAKING
STEEL MAKING
ROLLING
(FLAT AND LONG
PRODUCTS)
BY-PRODUCTS
PRODUCTS
* These are cumulative values from FY 2014-15 to FY 2018-19
20
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
OUTPUTS
OUTCOMES
Strategic Objectives
SO1
SO2
INDUSTRY
LEADERSHIP IN STEEL
CONSOLIDATE POSITION AS A
GLOBAL COST LEADER
SO3
SO4
INSULATE REVENUES
FROM STEEL
CYCLICALITY
INDUSTRY LEADERSHIP
IN CORPORATE SOCIAL
RESPONSIBILITY AND SAFETY,
HEALTH AND ENVIRONMENT
14.24 MnT
Hot metal production
13.23 MnT
Crude steel production
12.7 MnT
Total sales
9.4 MnT
Flat product sales
PROCESSING
CENTRES
S
C
I
T
S
I
G
O
L
D
N
U
O
B
T
U
O
3.3 MnT
Long product sales
CUSTOMERS
~17 MnT
By-products
generated
Financial Capital
Turnover (` Cr.)
EBITDA Margin (%)
PAT (` Cr.)
Savings through improvement
projects (Shikhar25) (` Cr.)
Shikar25: EBITDA improvement programme
Intellectual Capital
Patents granted# (Nos.)
Human Capital
Fatalities (Nos.)
LTI (Nos.)
Health index (Score on 16)
Diversity
% women in the workforce
70,611
29
10,533
2,801
476
2
68
12.62
~6.5
Diversity
% Affirmative action community in the workforce
~17
Employee productivity (tcs/employee/year)@
800
Natural Capital
TSL - Solid waste utilisation (%)
Total raw materials sites covered (%) under
biodiversity management plan
TSL GHG emission intensity (tCO2e/tcs)
TSL Dust emission intensity (kg/tcs)
TSL Effluent discharge intensity (m3/tcs)
Social & Relationship Capital
Suppliers assessed based on safety (Nos.)
Customer satisfaction index (Steel)
(out of 100)
Net Promoter Score (out of 100) - Tata Tiscon
Net Promoter Score (out of 100) - Tata Shaktee
Enriched/value-added products sales (MnT)
99
100
2.34
0.42
0.78
1,035
81.6
81
81
8.6
Suppliers trained through VCAP** (Nos.)
Quality/customer complaints (PPM)
Lives touched through
CSR initiatives (Nos.)
1,426
444
>1.1 Mn
** VCAP-Vendor Capability Advancement
Programme
@ Employee productivity definition: Tonnes of
crude steel produced per employee in a year
# These are cumulative values from FY 2014-15 to
FY 2018-19
Read more on Capitals
PAGE 40-87
21
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
We
Lead
We
Lead
In cost competitiveness
Operational efficiency is a key strength of Tata Steel. Over
the last one-and-a-half decades, Tata Steel has designed and
implemented several distinctive improvement programmes
that have brought many of our performance parameters to
benchmark levels. This continued focus on maintaining our
leadership in cost competitiveness has resulted in significant
increase in our EBITDA.
EBITDA
₹20,744 Cr.
31%↑
(y-o-y)
STRATEGY
Roadmap to future
As part of our strategy planning process, we scan the external environment for
megatrends and understand how these trends influence the steel sector. We identify the
risks and opportunities that could disrupt the industry. Materiality assessment provides
further insights to the changing needs of all our stakeholders.
Our integrated strategy planning process drives strategy formulation
and implementation across the short to long-term horizon.
Strategy planning process overview
VISION
MISSION
VALUES
MATERIAL
ISSUES
STRATEGY
DEVELOPMENT
LEADERSHIP
DIRECTION
Strategic Objectives and Enablers
Long-term Strategy
INTERNAL
CONTEXT
EXTERNAL
CONTEXT
ENTERPRISE RISK
MANAGEMENT
Identification
Assessment
Mitigation
Review and Monitoring
Strengths and Weaknesses
Opportunities and Threats
STRATEGY
DEPLOYMENT
Long-term Plan
Annual Business Plan
24
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR While Tata Steel has consistently been one of the most profitable and lowest cost producers of steel1 in the world, the
Company needs to address challenges such as improving productivity, maintaining cost competitiveness, and being
agile and innovative in a rapidly evolving business environment.
Tata Steel aspires to further strengthen its leadership position, and for this purpose, has defined a set of Strategic
Objectives (SOs). To achieve the SOs, we have also identified a set of core capabilities, known as ‘Strategic Enablers’.
Strategic Objectives
SO1
INDUSTRY
LEADERSHIP
IN STEEL
Scale of operations is a
pre-requisite for steel
industry leadership.
SO3
INSULATE REVENUES
FROM STEEL
CYCLICALITY
The steel industry is cyclical in
nature. It is essential to build a
portfolio of products and services
that can provide protection from
cyclicality and lend stability
and momentum to our revenues
and profitability.
SO2
CONSOLIDATE
POSITION AS A
GLOBAL COST LEADER
We aspire to be a global benchmark
in operational efficiency, ensure raw
material security and strengthen
our logistics network.
SO4
INDUSTRY
LEADERSHIP
IN CSR AND SHE
We aspire to be a leader in
sustainable business practices.
As a responsible organisation,
we are committed towards
creating and providing a
safe working environment
for our people, carrying out
environment-friendly business
operations and improving
the quality of life of the
communities
we operate in.
Strategic Enablers
EMPLOYER
OF CHOICE
LEADERSHIP IN STEEL
TECHNOLOGY
AGILITY AND
INNOVATION
LEVERAGE DIGITAL
TECHNOLOGY
People are key for an
organisation aspiring to
strengthen its leadership
position, and being an
employer of choice is a
significant aspect of our
strategy.
To prepare for disruptions in the
future, our ability to innovate
and develop new products,
improve processes, develop
technologies and transform
business models is critical.
1 Comparison of cost is done at crude steel level
It is essential to focus on
creating the right organisational
culture that encourages agility
and innovation.
Digitalisation is critical
for attaining technology
leadership in the Industry 4.0
era and drive innovation.
25
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 STRATEGY (Continued)
Our strategic goals and performance
SO1
INDUSTRY LEADERSHIP IN STEEL
Panview of State-of-the-art Kalinganagar Steel Plant
Focus areas
Key Performance Indicators (KPIs)
Goals
• Capacity expansion of domestic
operations through organic as well
as inorganic routes to meet growing
customer demands and aspirations
• Crude steel capacity
• Maintain leadership position in chosen
• Market share
segments
SO2
CONSOLIDATE POSITION AS A GLOBAL COST LEADER
30 MnTPA
in India, by 2025
Sustain #1 position
in chosen segments
Iron Ore, Noamundi Mine
• Continue to invest in raw material
• Captive coal (%) and Captive iron ore (%)
security
• Cost improvement and value
• Value accrual
enhancement through Shikhar25
continuous improvement programmes
Maintain cost leadership at
market price of raw materials
Improved cost and value
enhancement
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
SO3 - Insulate revenues from steel cyclicality
SO4 - Industry leadership in CSR and SHE
26
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR SO3
INSULATE REVENUES FROM STEEL CYCLICALITY
‘AquaNest’ - Water Vending Kiosk,
Nest-In
‘Pravesh’ Steel Door
‘Nestudio’ - A Steel-based
Smart Housing Solution
Focus areas
Key Performance Indicators (KPIs)
Goals
• Services & Solutions business
• Revenue (% of total revenue)
Increase revenue from services and
solutions business
• Downstream products (e.g. Cold Rolled,
• Volume (% revenue)
Improve downstream products business
Tubes, Wires, Bearings)
• B2C Business
• New materials business
SO4
• Volume (% revenue)
Enhance volume in B2C business
• Revenue from new materials
(% of total revenue)
Increase revenue from new materials
business
INDUSTRY LEADERSHIP IN CORPORATE SOCIAL RESPONSIBILITY AND SAFETY HEALTH & ENVIRONMENT
3 MW Solar Power Plant, Noamundi Iron Mine
• Achieve leadership in safety
• Fatality, Lost Time Injury Frequency Rate
Zero fatality
• Become a benchmark in CO2 emission
• CO2 emission intensity
(LTIFR)
< 2tCO2/tcs by 2025
• Reduce water consumption
• Specific water consumption
Zero effluent discharge by 2025
• Create value through circular economy:
LD slag utilisation and steel recycling
business
• % of LD slag utilisation and Capacity (MnT)
of scrap recycling business
• Create lasting impact on the
• Number of lives impacted
communities in our operating areas
Sustain LD slag utilisation at 100% and
enhance capacity of scrap recycling
business
>2 Mn lives by 2025
27
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 STAKEHOLDER ENGAGEMENT
Working closely with partners for progress
At Tata Steel,
we treat all our
stakeholders as
partners in long-
term value creation.
We have a robust stakeholder
engagement process to foster
and nurture relationships, which
helps improve our strategy
development and decision
making. We are working towards
delivering on stakeholder needs,
interests and expectations.
In Financial Year 2018-19,
we conducted a pan-India
stakeholder engagement
exercise to revisit the ESG
issues that are material to our
value-creation process amid the
evolving global sustainability
landscape.
28
INVESTORS
CUSTOMERS
VENDOR PARTNERS
Value proposition
Consistent returns on
investments and innovation
for a sustained business
Strong brands, quality products,
and engineering support
Building capabilities through
skill development, growth
opportunities, safe operations
and adequate financing
Why they are important to us
Our investors provide the
necessary financial capital,
which is essential to fund
business and strategic growth
plans
Customers drive the markets
and segments we operate in.
Meeting customer expectations
underpins the success of our
business
Our partners give us the
operational leverage to
optimise the value chain, be
cost competitive and exceed
customer expectations
How we engage with them
Investor and analyst meets
Customer service meetings
Vendor satisfaction survey
General meetings
Multi-stakeholder platforms
Annual Report and media
updates on performance
• Conferences
• Construction conclaves
• Zonal and similar meets
Vendor Capability
Advancement Programme
Vendor Grievance Redressal
Committee, Speak UP
Toll-free number
Workshops and meets
Their key ESG concerns and issues
Focus on carbon emission,
renewable and clean energy,
air pollution
Technology, product and
process innovation
Embed sustainability in
supply chain
Focus on health, safety and
human rights
Focus on health, safety, human
rights
Focus on carbon emission,
water, air pollution, waste
management, renewable and
clean energy
Embed sustainability in supply
chain and leverage circular
economy
Focus on key environmental
issues such as carbon emission,
water, energy
Leverage circular economy
Embed sustainability in supply
chain
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
EMPLOYEES
COMMUNITY
GOVERNMENT AND
REGULATORY BODIES
MEDIA AND INDUSTRY
BODIES
Fair wages, good relations and
employee well-being
Enabling significant and lasting
betterment in the well-being of
communities proximate to our
operating locations
Advocacy towards shaping
policies for the future
Sharing industry best practices
and benchmarks
Our employees are key to the
success of our business. Their
efforts are instrumental in
delivering our strategies and
for the sustained growth of
our business
Thriving and engaged
communities in our areas of
operations are vital to our
business. Our social license to
operate hinges on our ability to
create value for our community
We are in a highly regulated
industry. We strive to maintain
our compliance standards
above regulatory requirements.
We co-develop and comply
with legislations and policies
applicable to our business to
ensure continuity
Media is an important platform
to reach out to society and
communicate about our brand
Industry bodies are important
fora to engage with regulatory
bodies and discuss matters of
mutual interest
Monthly online meet with the
CEO & MD and informal meets
with the senior leadership
Employee engagement survey
Public hearings
Meetings with community
leaders and the CSR Advisory
Council
Representations at relevant
ministries and regulatory
authorities at the central and
state levels
Press conferences, media
events
Regional and national
events such as conclaves and
conferences of industry bodies
Senior leadership are part of
various industry bodies and
committees
Community welfare
programmes
Employee happiness study
Joint forums between
employee unions and
management
Internal communications
Talent retention
Better healthcare facilities
Local sourcing of labour
Welfare practices for
non-officers
Water scarcity in the
community areas
Livelihood generation and skill
development
Carbon emission, energy
efficiency and waste
management
More focus on education in
community development
Setting trends for future
regulations and going beyond
compliance
More frequent and transparent
disclosures on sustainability
issues such as water, health
and safety, energy efficiency
measures
More participation in events
and engagement with media
29
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MATERIAL ISSUES
Focussing on issues that matter
Tata Steel’s strategic planning process incorporates the economic, environmental, social,
and governance material issues relevant for -the long-term growth and financial success
of the Company.
The material issues are taken into
consideration while defining and executing
our strategic objectives. While the
Environmental, Social and Governance
(ESG) related material issues have been
arrived at through an exclusive and
extensive stakeholder engagement process,
the economic material issues have been
revisited through various stakeholder
engagement processes and business
reviews by the senior leadership.
Addressing ‘Focus’ issues
‘Focus’ issues are incorporated in the strategy and planning process. These issues are
reviewed monthly by the issue owners and quarterly by the senior management, and
reported in the Integrated Report. The material issues related to all the capitals are
tracked and reported to the senior management on a quarterly basis. Exceptions on any
of the parameters are reported on an interim basis. Among the material issues, we target
to achieve specific carbon emission of <2 tCO2/tcs, 100% waste utilisation, zero effluent
discharge and doubling of our CSR reach by 2025 as part of this strategy.
ESG material issues
HOW WE IDENTIFIED
MATERIAL ESG ISSUES
Tata Steel conducted a pan-India exercise
to identify the ESG issues that are material
to value creation, by engaging with close
to hundred stakeholders viz. customers,
investors, suppliers, shipping and logistics
partners, media, industry associations,
government and regulatory bodies,
employees including contract employees
and union leaders, and community
representatives. The findings were then
classified into the ‘Focus’ (high), ‘Track’
(medium) and ‘Discuss’ (low) categories.
l
s
r
e
d
o
h
e
k
a
t
s
o
t
t
c
a
p
m
I
Impact on business
G2
G1
S2
E1 E2
S1
G3
G5
S3
G4
E4
E3
E5
S4
E6
E8
G6
E7
S5
E9
Focus
Track
Discuss
HOW WE ARE ADDRESSING MATERIAL ISSUES
Economic
Material issue
Key actions
Strategic Objectives
Business growth
Focus on organic and inorganic growth
SO2
SO1
SO3
Capitals Impacted
New materials business (Fibre Reinforced Polymer and Graphene)
Service and Solutions business
Foraying into newer segments such as oil & gas, lifting and excavation
Long-term profitability
Product quality, price
offerings and delivery
Increase sales of downstream products
Maintain leadership in chosen segments
Enhance raw material security
Operational efficiency enhancement
Shikhar25 cost management initiatives
Product and process innovation
Value engineering
Customer service teams and delivery centres
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
SO3 - Insulate revenues from steel cyclicality
SO4 - Industry leadership in CSR and SHE
30
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Environmental
Material issue
Key actions
Strategic Objectives
E1
Renewable and clean energy
Focus initiatives on harnessing clean and renewable energy and adopting waste heat recovery
technology
SO2
SO4
Capitals Impacted
E2
Waste management
Recovery and reuse of metal from steelmaking slag
Nearly 100% utilisation of LD slag
Advocacy with various government and industry bodies to build scrap utilisation networks
E3
Water consumption and
effluent discharge
Striving towards future readiness by investing in sewage treatment plants and creating new
rain water harvesting structures
E4
Energy efficiency
Focus on energy efficiency through process optimisation initiatives such as waste heat
recovery systems and by-product gas utilisation
E5
Air pollution
Investment in air pollution control equipment to reduce dust emission intensity
E6
E7
Supply chain sustainability
Embedding sustainability across the supply chain
CO2 emission
Piloting Carbon Capture and Use (CCU) at Jamshedpur works and at the Ferro-Chrome plant,
and assessing renewable energy potential across all locations in India
E8
Biodiversity
Reclamation of mining activities
E9
Circular economy
Adoption of circular economy concepts to maximise the utilisation of our by-products
Social
Strategic Objectives
S1
Occupational health & safety
Leadership capability development for safety at all levels to achieve zero harm
SO4
Capitals Impacted
Identification and mitigation of hazards and risks
Reduction in safety incidents on road and rail to sustain zero fatalities inside plant premises
Excellence in Process Safety Management (PSM)
Establishment of industrial hygiene and improvement in occupational health
S2
Labour relations
Robust grievance mechanism
Implementation of the Human Rights Policy, principles of SA8000, Universal Declaration of
Human Rights (UDHR) and ILO convention
S3
Drinking water
Installation and repair of drinking water facilities
S4
Local sourcing of labour
Implementation of Affirmative Action Plan
S5
Talent retention
Development of workforce capability through various programmes and fostering a diverse
workforce through our MOSAIC framework
Governance
Strategic Objectives
G1
SO3
SO1
SO4
Capitals Impacted
Going beyond compliance
and setting trends for future
regulations
Collaborations with technical institutes and technology start-ups
G2
Greater stakeholder engagement
Enhancement of specialised channels such as public meetings, vendor-focussed committees, Speak
UP toll-free number, platforms such as conference and construction conclave, zonal and similar events
G3
G4
G5
G6
Greater sustainability disclosures
Consistent improvement of our disclosures through GRI, , worldsteel and BRR frameworks
Technology, product and
process innovation
Process innovation such as High Gradient Magnetic Separator (HGMS) for iron ore slime
beneficiation
Product innovation such as Pravesh Vista steel windows and graphene-doped plastic products
Technical knowledge transfer
and capacity building for relevant
partners
Conduct of Vendor Capacity Development (VCAP) programmes
Responsible advocacy for the steel
and mining sector
Engaging with the industry bodies and peer networks in sharing best practices, training,
research and ideas that enhance the overall performance of the industry
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Natural Capital
Social & Relationship Capital
31
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
RISKS AND OPPORTUNITIES
Future-proofing our business
Favourable demand conditions, availability of skilled manpower
and adequate iron ore reserves make India one of the most
attractive regions globally for the steel industry.
However, volatility associated with sensitivity to economic cycles, long lead time for project execution,
stringent norms around environmental clearances and regulatory approvals are ongoing concerns.
Added to these are high cost of capital and complex logistics. This external context, coupled with the
internal environment, forms the basis of our understanding of risks and opportunities.
Risk landscape and mitigation measures
Financial risks
Mitigation strategies
Contraction in global and
domestic liquidity adversely
affecting availability and cost
of capital
Regulatory risks
Tata Steel is deleveraging through internal cash generation
and monetisation of non-synergistic assets. We have a
well-diversified liability profile and we raise funds from
domestic and international bond markets as well as from the
banking system. We consistently work towards increasing our
debt maturity and opportunistically tap into pools of liquidity
to reduce our financing costs.
Withdrawal of favourable trade
measures such as minimum
import prices, antidumping laws,
countervailing duties and tariffs, trade
restrictions may impact profitability
Building on the mitigation strategies for macroeconomic
and market risks, we continue to invest in stronger customer
relationships, distribution networks and brands that focus on
value-added segments such as auto and retail, and help to
strengthen our revenue profile.
Stringent regulations and compliances
resulting in liabilities and damage to our
reputation
We are investing in training and automated systems for facilitating
compliances to all applicable regulatory norms. Efforts are
undertaken to improve the efficiency and cost competitiveness of
our operations, including investing in digitisation and automation,
to improve our productivity levels.
Non-renewal of mining leases
compelling higher purchases from
open market at higher prices, adversely
impacting profitability
Tata Steel has sought judicial intervention to secure lease renewals.
We also participate in mining auctions to secure fresh leases.
Alternative supply chains are also being developed to source raw
materials at competitive prices.
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
SO3 - Insulate revenues from steel cyclicality
SO4 - Industry leadership in CSR and SHE
32
Strategic Objectives
SO1
SO2
Capitals Impacted
Strategic Objectives
SO1
SO2
Capitals Impacted
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Macroeconomic and
steel market risks
Mitigation strategies
Slowdown in global growth, particularly
in China, adversely affecting steel
demand
Increasing competitive intensity in India,
especially post the acquisition of steel
assets by international steel producers
under the Insolvency and Bankruptcy
Code, 2016
Technology disruptions and shifting
customer preferences to alternative
materials adversely impacting earnings
Tata Steel is enhancing its footprint in India, which is among the
fastest growing steel markets in the world. We have built a strong
marketing franchise through strong brands and relationships,
which helps reduce exposure to business cycles.
As a preferred supplier to large auto customers in India, a large
part of our sales is contractual and relatively more stable. We have
a large retail business that leverages an extensive network of
over 200 distributors and 12,000+ dealers and a strong portfolio
of brands to sell branded steel across the country. This segment
is relatively insulated from the international cycles and provides
strong cash flows. We have a significant downstream portfolio and
are also exploring new segments such as oil & gas.
Operational risks
Inadequate assessment of health of
critical equipment leading to unplanned
interruption of operational processes
Non-disposal of plant waste due to
limited demand and storage space
Logistics constraints due to inadequate
rail, road and sea infrastructure may
lead to disruption in operations
Our dedicated Shared Services team focusses on advanced
maintenance practices to improve plant availability and reliability.
We have a dedicated R&D team that deploys innovative ways to
reduce waste generation and commercialise alternative uses of
waste material.
Tata Steel is working on developing logistics providers under
various schemes of private sector participation in the Indian
Railways, apart from developing additional deep sea ports and
contracting with terminal owners at existing ports.
Safety risks
Non-compliance/delay in
implementation of the provisions of
safety laws and regulations, which may
lead to stoppage of operations, damage
to assets and loss of reputation
Tata Steel has a strong safety management system that covers
employees, contractors, rail and road transport, equipment safety
and emergency response. Regular audit and review of the safety
measures are undertaken. Periodic safety trainings are conducted
for employees, contractors and other relevant stakeholders.
Safety is a KPI for all employees in their performance management
system.
Strategic Objectives
SO1
SO3
Capitals Impacted
Strategic Objectives
SO1
SO2
Capitals Impacted
Strategic Objectives
SO4
Capitals Impacted
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Natural Capital
Social & Relationship Capital
33
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
RISKS AND OPPORTUNITIES (Continued)
Community risks
Mitigation strategies
Communities proximate to our
operations live through significant
socio-economic challenges while
retaining a strong cultural heritage
and an aspiration to overcome
these challenges. The absence of
an understanding of this duality in
our communities and an inability to
maintain a harmonious relationship with
them would pose risk to our operations
We are deeply committed to co-creating scalable solutions for
the most endemic development challenges of our communities.
We impact more than a million lives every year through proven
programmes on health, education, livelihood generation,
public infrastructure and basic amenities. Tata Steel has a deep
engagement with the tribal community and actively promotes
cultural and ethnic diversity.
We also recognise the rich tribal heritage at our operating
locations and foster a relationship with our communities where we
celebrate their history, culture and tribal identity.
Commodity risks
Raw material price volatility is an
integral part of operations
Supply chain disruptions affecting
availability and cost of raw materials
Steel prices have a strong correlation with commodity prices.
Rising coal and iron prices are normally reflected in higher steel
prices, which in effect act as a hedge against volatility.
In India, our captive iron ore mines as well as coal mines enable
Tata Steel to partly derisk price volatility in these commodities.
In addition, we hedge certain commodities in the derivatives
market to address short-term volatility.
Geographical and vendor diversification of critical commodity
supplies help alleviate the risk of supply chain disruption. We
have started conducting a sustainability risk assessment for our
key vendors.
Information security risks
Breach of information security incidents
leading to business disruption and
damage to reputation
Significant efforts have been made to increase awareness and
invest in IT security and related compliances. Tata Steel has also
invested in cyber insurance.
Non-compliance to IT legislations and
regulations leading to penalties
Climate change risks
Non-compliance to stringent
environmental conditions leading to
penalties, stoppage of operations and
loss of reputation
Climate change related regulations and
extreme weather events may disrupt
operations and supply chain
Tata Steel continues to invest in upgrading existing technologies
to minimise its environmental footprint. We closely monitor air
quality, effluent discharge and other environmental parameters
to ensure that they comply with all existing regulations. The focus
on minimising carbon footprint is integrated within the capital
allocation process and projects are required to calculate a carbon-
adjusted Internal Rate of Return (IRR).
As a signatory to Task Force on Climate-related Financial
Disclosures (TCFD), Tata Steel is actively working to understand
the broader impacts of climate risks across its value chain and is
exploring avenues to fundamentally reshape the business to make
it both environmentally and economically sustainable in the
long-term.
34
Strategic Objectives
SO4
Capitals Impacted
Strategic Objectives
SO1
SO2
Capitals Impacted
Strategic Objectives
SO1
SO2
Capitals Impacted
Strategic Objectives
SO4
Capitals Impacted
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Capitalising on opportunities
Tata Steel has a continuous process of understanding and leveraging business opportunities.
Significant increase
in steel demand
Evolving consumer needs leading to
changing nature of steel consumption
India’s apparent steel use per capita stood at 70 kg in
2018, which is only one-third of the world average. This
indicates that India has a huge potential for steel demand
growth. Rapid urbanisation, increasing population, and
infrastructure development, Government initiatives such as
‘Make in India’ will provide impetus to the growth in steel
demand.
The plan for building smart cities, affordable housing,
dedicated freight and high-speed rail corridors is expected
to create significant demand for steel in the country. With
leadership position in key market segments and world-class
production facilities, Tata Steel is well poised to benefit
from this large opportunity.
With higher aspirations and affordability of a growing
middle class, consumer needs are evolving. Along with new
products, there is growing need for Services & Solutions
that provide convenience. The demand for automobiles,
white goods and other consumer goods is also increasing.
Meeting this need will require new and value-added steel
products. Tata Steel will leverage this opportunity enabled
by innovative Services & Solutions offerings for consumers
and a strong new product portfolio.
Climate change driving
newer business models
Opportunities arising from the
changing technological landscape
Steel is an energy-intensive industry with a high level of
CO2 emission. There is growing regulatory requirement to
reduce carbon emission. Tata Steel Jamshedpur is a national
benchmark in CO2 emission. There is further opportunity for
Tata Steel to take a leadership role in reducing environment
footprint. The Company has ventured into the steel
recycling business to establish an alternate business model,
leveraging the expected increase in availability of scrap in
India, going forward. Environment-friendly business models
such as these are expected to make us future-ready and will
be a source of competitive advantage in future.
With the growth in the economy, there is a large opportunity
for new materials and applications for existing and new sectors.
Tata Steel aspires to be a technology and innovation leader
in the industry, and create new businesses in high-potential
alternate materials (e.g., FRP composite and graphene). These
new businesses are expected to contribute 10% of our revenues
going forward. Along with new and enriched revenue streams,
technology leadership will also enable Tata Steel to innovate,
maintain cost leadership as well as provide differentiated
offerings in existing businesses. There is also an opportunity
to leverage the innovative potential of start-ups by creating
external collaborations and partnerships. Tata Steel is also
taking steps to capitalise on the large opportunity to move
towards Industry 4.0 through digital-enabled business models.
Kalinganagar Steel Plant
35
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 CORPORATE GOVERNANCE
Progressing with integrity
Tata Steel embeds the highest standards of governance in its
operations, striving to manage its affairs in a fair and transparent
manner and create long-term value for all stakeholders. Our
focus is not only to follow corporate governance guidelines, but
global best practices as well.
The Company has laid a strong foundation for making corporate
governance a way of life by constituting a Board, which is active,
well informed and independent, using several Board Committees as
a mechanism for managing the affairs of the Board.
With regulations becoming more stringent on the domestic
as well as international fronts, our policies and the Tata Code
of Conduct (TCoC) are implemented to ensure that business is
conducted ethically and responsibly, through a well-defined ethical
governance framework.
Tata Steel’s rigorous approach to Enterprise Risk Management
(ERM) enables the Management to protect and enhance the value
of assets, people, performance and reputation. To manage risks
throughout our value chain, we have a robust risks management
framework in place across the organisation, overseen by the Risk
Management Committee at the Board level.
Sustainability is embedded in our business operations. We aspire to
be an industry leader in sustainable business practices. To prepare
for the future, we are taking steps to reduce our environmental
footprint and contribute towards the creation of a circular economy.
A benchmark for
business ethics
Recognised as one of the World’s Most
Ethical Companies by Ethisphere in
2019, for the eighth time and the only
Indian company to win the award in the
Metals, Minerals and Mining sector.
Mr. T. V. Narendran, CEO & MD, Tata Steel and Principal Ethics Officer, addressing
the delegates at Tata Network Forum India East - Ethics Conclave FY 2018-19
36
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Corporate ethics
We, at Tata Steel, are driven by the Group’s core values enshrined in
the Tata Code of Conduct (TCoC).
The TCoC is deployed across the organisation through a formalised
Management of Business Ethics (MBE) structure, which is built on
the foundation of Tata Core Values — Integrity, Excellence, Unity,
Responsibility and Pioneering — and functions on the basis of
four pillars:
1
2
1
Leadership
Engagement
Compliance
Structure
3
4
Communication
and Training
Measurement of
Effectiveness
Leadership Engagement
This pillar focusses on setting up direction, governance structure
and role modelling. The Chief Executive Officer and Managing
Director is the Principal Ethics Officer of Tata Steel Limited. To
ensure adherence to the TCoC, monitor concerns and report
compliances, the Principal Ethics Officer appoints the Chief Ethics
Counsellor (CEC).
Departmental Ethics Coordinators (DECs) are appointed across the
organisation for supporting Management of Business Ethics (MBE)
deployment. To increase the involvement of frontline employees
(employees + contract employees), a team of ‘Ethics Champions’,
who are frontline employees, has also been developed and trained.
World’s Most Ethical Companies Award 2019
Tata Network Forum India East - Ethics Conclave FY 2018-19 Brand where Ethics makes a Difference
37
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 CORPORATE GOVERNANCE (Continued)
2
Compliance Structure
This pillar focusses on the
development and dissemination
of policies supporting the
TCoC for all stakeholders.
All employees are required
to read and accept the TCoC
and declare their Conflict of
Interest (COI) status through
the ‘Ethics Compliance Register
– DARPAN’, accessible on the
Company’s intranet and mobile.
To encourage and protect
whistle-blowers, the toll-free
third-party helpline ‘Intouch’,
popularly known as ‘Speak Up’,
maintained by an independent
UK-based company, has been
extended to all stakeholders.
The Chief Ethics Counsellor
reports the performance of
MBE deployment, including
TCoC violations, to the Board
level (Audit Committee) and
Management level committees
(Apex Ethics Committee and
Ethics Committee).
Policies supporting TCoC:
Whistle-Blower Policy for
Directors, Employees and
Associates
Receipt of Gifts and
Hospitality
Prevention of Sexual
Harassment Policy at
Workplace and Guidelines
Conflict of Interest Policy
Tata Steel has always been
committed to creating a positive
business ecosystem in all the
spheres it operates. We are in
the process of developing the
Anti-Bribery & Anti-Corruption
and Anti-Money Laundering
(ABAC/AML) policy, which will
strengthen our internal and
external processes against
financial risks.
3
Communication and Training
Communication and training programmes have been designed
to raise awareness of Tata values, TCoC and ethical policies
and practices among all stakeholders. The senior executives
communicate on various forums, such as Group Ethics Conclave,
Ethics Town Hall and MD Online, to keep up with the ethical
benchmark at Tata Steel and its group companies.
For effective dissemination to the frontline and contractual
employees, local languages are also used in communications. To
help people relate with practical situations, snippet stories, ‘Neeti
Katha’, with various dilemma scenarios were introduced. In Financial
Year 2018-19, scenarios on ‘The Ethics of Safety’ and ‘Trust
Behaviour’ were communicated.
The senior executives communicated with vendors and suppliers
during regular Business Associate’s (BA’s) meets/dialogues. They
also accept the TCoC and declare their COI during the registration
process.
4
Measurement of Effectiveness
To assess the level of deployment of various MBE initiatives across
the organisation, an MBE assessment framework was developed
involving site assessment, which resulted in increased cross
learnings between DECs and improved MBE deployment. The MBE
survey and assessment by the Tata Business Excellence Group were
also conducted in Financial Year 2018-19.
In Financial Year 2018-19, we conducted a benchmarking exercise
with GoodCorporation and General Electrics, apart from sharing
ethical practices in various international forums such as the Business
Ethics Leadership Alliance (BELA) summit and the Ethisphere
Summit.
Key Performance Indicators Financial Year 2018-19
Whistle-Blower Cases*
UoM (Nos.)
Sexual Harassment Cases
UoM (Nos.)
Training on Ethics
UoM (man-hours trained)
436
Received
Total
334
Closed
102
Open
20
Received
Total
19
Closed
1
Open
Officers
4,003
Frontline
Employees
7,080
Contract
Employees
23,798
Vocational
Training
1,999
* exclusive of sexual harassment cases
38
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Corporate sustainability
Tata Steel is committed to incorporating sustainability into all facets of
its business, from governance to strategy formulation to execution. The
performance related to various sustainability aspects is reviewed at the
corporate as well as the Board level.
The scope and membership of Board-level committees has
been detailed in the Corporate Governance Report. At the
corporate level, various committees review the sustainability and
governance initiatives. These include the Apex Safety Committee,
Apex Environment Committee, Apex HRD Committee, Apex CSR
Committee, Apex R&D Committee and Quality and Production
Meeting and Centre of Excellence for GHG emission reduction and
mitigation. These Committees are chaired by the Chief Executive
Officer and Managing Director or the Executive Director and Chief
Financial Officer or Vice President Safety, Health & Sustainability.
The climate change-related risk assessment in accordance with
the Task Force on Climate-related Financial Disclosures has
been initiated and mitigation strategies will be incorporated
subsequently.
Our senior leaders actively engage with various industry bodies
such as the World Steel Association, the Confederation of Indian
Industry (CII), the Global Reporting Initiative, the International
Integrated Reporting Council and the Task Force on Climate-
related Financial Disclosures, guiding the Company further
on implementing sustainability practices. Various external
assessments such as the Dow Jones Sustainability Index and
those conducted by the CII drive improvements in our efforts of
embedding sustainability.
Tata Steel has entered into a partnership with the Cambridge
Institute for Sustainability Leadership for capability development
through an immersion programme for Board Members, Senior
Management and Union Leadership.
Sustainability Immersion Programme for Board Members and Senior Leadership by Cambridge Institute for Sustainability
Leadership, UK
39
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 OUR CAPITALS
Managing resources and
relationships for the long term
The six capitals represent the resources and relationships that we depend on to create value. Judiciously managing the capitals
is key to meeting our strategic objectives.
Financial
Capital
Manufactured
Capital
Intellectual
Capital
We generate financial capital in the form
of surplus arising from current business
operations as well as through financing
activities, which include restructuring of
debts aligned with market conditions and
other investments.
We continuously invest in our
integrated steel plants, our iron-making,
steel-making and rolling facilities
and warehouses, along with logistics
operations, while ensuring the safety
and reliability of our operations.
Our focus on innovation and research
reinforces our drive for operational
efficiency and resource optimisation,
while adhering to the Standard Operating
Procedures. We incorporate customer
requirements in our product development,
while also collaborating with experts for our
Research and Development efforts.
PAGE 42
PAGE 46
PAGE 52
40
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Human
Capital
Natural
Capital
Social and
Relationship Capital
Our people form the core of our
operations. We invest in employee
welfare and happiness to drive
performance excellence. Our work
culture ensures safety, health,
competency enhancement, and the
overall well-being of our employees.
We depend on natural resources such
as iron ore, coal and other minerals,
which constitute our key raw materials.
At the same time, land and water are
indispensable for our operations. We
strive for excellence in environmental
performance and resource efficiency to
mitigate our ecological footprint.
Our communities, customers and
suppliers are critical to our social license
to operate and business continuity.
We believe in building long-term,
transparent and trust-based relationships
with them through continuous
stakeholder engagement and innovation.
PAGE 58
PAGE 68
PAGE 76
41
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Cash Generated from
Operations
₹19,726 Cr.
Net Debt to Equity
0.42
Basic EPS
₹90.41
Financial
capital
Investing in tomorrow
with efficiency, strategy
and prudence
At Tata Steel, we endeavor to
optimise returns for providers
of financial capital. We seek to
maximise surplus funds from both
business operations as well as
relevant monetisation of assets
and investments.
We are seeking to invest our
surplus in attractive growth
opportunities in our core
market. We also continue to
opportunistically raise finance
based on prevailing market
conditions at the best possible
cost and on suitable flexible terms
given the cyclical nature of the
steel industry.
Our long-term investments are focussed on strategic growth opportunities, in
order to maximise returns for providers of financial capital.
STRATEGIC FOCUS
SO1
SO2
SO3
To enable growth without increasing leverage and enhancing
internal cash generation through efficiency and productivity
Focus on divestments, build synergies from acquisitions, and
allocate capital efficiently
WAY FORWARD
• Deleveraging through internal cash flows and portfolio
restructuring
• Aligning debt maturity profile to the long gestational nature
of steel projects
• Divesting of non-synergistic assets
• Allocating capital on efficient and value-accretive
opportunities
GOALS
Consolidate leadership position in
India with organic and inorganic
expansions
Sustain value creation across the
cycle and build resilience against
down cycles
Maintain global cost leadership
IMPACT ON SDGs
Managing financial capital
During the year, we focussed our financial capital towards
strengthening our Indian operations and establishing our leadership
position in the Indian market, through the acquisition of Bhushan
Steel Limited (later renamed Tata Steel BSL Limited). We have also
invested our financial capital towards expansion of the Kalinganagar
Plant from 3 MnTPA to 8 MnTPA.
Tata Steel BSL Limited has been a ‘value-accretive’ acquisition
that will give us additional capacity to retain our market share in a
growing market, higher downstream integration, value addition with
a complementary product mix, closer access to key markets in the
northern and western regions of the country, and the option to scale
up capacity through brownfield expansions.
We have also commissioned the expansion of the Kalinganagar plant
to 8 MnTPA, to build state-of-the-art facilities, to strengthen our
position in the high-end value-added segments such as automotive,
infrastructure, lifting and excavation, etc.
Tata Steel BSL Steel Plant
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
SO3 - Insulate revenues from steel cyclicality
43
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 FINANCIAL CAPITAL (Continued)
Key initiatives
As per our strategic priorities, we are focussed on deleveraging and
enhancing cash flows.
• During the second half of Financial Year 2018-19, post acquisition
of Tata Steel BSL Limited, we took steps to deleverage the balance
sheet at the Tata Steel group level to the tune of ₹17,864 crore.
• Despite some stress in the domestic debt markets, we extended
our debt maturity profile by successfully raising ₹4,315 crore
through non-convertible debentures with a maturity of 15 years.
• The Board has recommended dividend at ₹13 per Fully Paid Share
and ₹3.25 per Partly Paid Share, which is higher as compared to
previous years.
Operational achievements
Reinforcing shareholders’ trust
Moody’s Investors Service has upgraded our Corporate Family
Rating (CFR) to Ba2 from Ba3. The Company’s CFR is supported
by its significant, diversified and growing operating base as
well as its globally cost-competitive steel operations in India.
During the year under review, the Company achieved strong operational performance due to supportive realisation,
cost reduction initiatives, and increase in deliveries owing to faster ramp-up of the Kalinganagar plant.
IMPROVED TURNOVER
MOVEMENT IN EBITDA
The turnover during the current period was ₹70,611 crore,
16.7% higher than the previous year.
The EBITDA of the Company is at ₹20,744 crore, improved by 31%
mainly on account of improved steel margins, attributable to higher
volumes and higher realisations.
INCREASED NET CASH
IMPROVED EPS
The basic earnings per share was at ₹90.41 for Financial Year 2018-19.
The net cash from operating activities was ₹15,193 crore
during Financial Year 2018-19 as compared to ₹11,791 crore
in the previous year.
STRATEGIC CAPITAL ALLOCATION
The Company spent ₹3,677 crore towards capital
expenditure (70% towards Phase II expansion of
Kalinganagar).
Kalinganagar Steel Plant
44
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR KEY PERFORMANCE INDICATORS (Standalone)
EBITDA / Turnover (%)
PBET / Turnover (%)
.
8
1
4
2
4
4
2
2
.
5
2
.
8
1
8
3
9
2
.
.
1
1
6
2
.
4
1
3
2
3
5
6
1
.
4
8
5
1
.
8
3
1
1
.
8
4
7
.
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Return on Average Capital Employed (%)
Return on Average Net Worth (%)
1
4
8
.
7
5
5
.
0
8
9
.
6
2
6
1
.
.
0
1
3
1
3
4
5
1
.
3
7
9
.
3
8
6
.
1
2
7
.
9
8
1
.
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Basic Earnings per Share (INR/Share)
Net Debt / Equity (Times)
.
1
4
0
9
.
9
4
4
6
5
0
8
.
4
7
1
3
.
7
5
.
8
3
0
5
0
.
0
4
0
.
4
4
0
.
5
1
0
.
2
4
0
.
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Note : FY16 to FY19 as per IND AS and FY15 as per I GAAP
45
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Manufactured
capital
In pursuit of excellence,
beyond tomorrow
India’s first private integrated steel company,
Tata Steel, is engaged in mining, iron-making,
steelmaking, casting, rolling, finishing, supply
chain, and marketing and sales. We have
been strengthening our operations through a
combination of organic and inorganic growth
initiatives. Our steelmaking operations at
Jamshedpur and Kalinganagar secure raw
material supply from captive iron ore mines.
This help us to maintain cost-competitiveness
and derive production efficiencies.
Acquisition of
Bhushan Steel
5.6 MnTPA
Kalinganagar Phase II
5 MnTPA
Record production
at Tata Steel
13.23 MnT
We aim to attain improved efficiency through technology and a
culture of innovation and excellence.
STRATEGIC FOCUS
SO1
SO2
Efficient operations and value chain are critical to meet growth
aspirations and address the evolving needs of customers.
We continue to invest in facilities that enable us to be a leader in
steel technology.
WAY FORWARD
• Implementing Kalinganagar Phase II expansion and augment
capacity to 8 MnTPA
• Upgrading Jamshedpur facilities
• Optimising the use of captive raw materials and improving
mine life
GOALS
Achieve production capacity
of 30 MnTPA in India, by 2025
Maintain cost leadership
position
IMPACT ON SDGs
Our manufacturing facilities
TATA STEEL JAMSHEDPUR (TSJ)
TSJ is our flagship facility and has been operational for over a century
now. Equipment upgrades and effective maintenance ensure
consistent production levels of 11 MnTPA. Equipment upgrades
include the installation of a new boiler, which will enable 100% use of
off-gas from blast furnaces, installation of Coke Dry Quenching (CDQ)
facilities, modification of Induration Burner System to utilise excess
coke oven gas, and installation of edge trimming facility for the
Galvanised Annealed (GA) skin panel. Further, various environment-
related projects were completed in Financial Year 2018-19, which
include the installation of the blast furnace dedusting equipment,
lime plant process bag filter, Continuous Emission Monitoring
Systems (CEMS) highline bag filter, blast furnace sludge drying,
secondary emission system for steelmaking, and construction of a
flyover to decongest traffic within the facility. These changes have
helped us sustain production levels, drive resource efficiency, and
progress towards meeting stringent environmental norms. Our focus
on asset management using data analytics and predictive modelling,
has resulted in more than 90% availability of our key manufacturing
units at Jamshedpur.
SO1 - Industry leadership in steel
SO2 - Consolidate position as a global cost leader
Availability of
critical manufacturing
units at TSJ in Financial
Year 2018-19
Coke Ovens
99.8%
Blast Furnaces
97.3%
Agglomerates
94.1%
Steelmaking
93.7%
Capacity
10 MnTPA
47
Coke Dry Quenching Facility,
Tata Steel Jamshedpur
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANUFACTURED CAPITAL (Continued)
TATA STEEL KALINGANAGAR (TSK)
TSK has state-of-the-art equipment and utilities.
Commissioned in 2016, TSK attained production levels
at its rated capacity in less than two years. The 3 MnTPA
plant is cost-competitive because of higher productivity,
driven by automation and logistical advantage of
proximity to ports and captive mines. TSK helped
augment our product portfolio to serve new customer
segments such as oil & gas and lifting & excavation. The
expansion of the Kalinganagar plant to 8 MnTPA (TSK
Phase II) has been initiated, which will further improve
performance due to economies of scale.
Phase II Expansion Work at Kalinganagar
Steel Plant
Our manufacturing process
The following key activities summarised here constitute our manufacturing process:
2
S
C
I
T
S
I
G
O
L
D
N
U
O
B
N
I
PROCESSED RAW
MATERIAL
1
MINING
3
4
IRON MAKING
STEEL MAKING
ROLLING
(FLAT AND LONG
PRODUCTS)
PROCESSING
CENTRES
BY-PRODUCTS
PRODUCTS
Present Capacity
3 MnTPA
Phase-II
Expansion
5 MnTPA
5
S
C
I
T
S
I
G
O
L
D
N
U
O
B
T
U
O
CUSTOMERS
With a focus on efficient logistics, we collaborate with the Indian
Railways for dedicated movement of raw materials from mines and
ports to our manufacturing locations. Inbound logistics ensures
uninterrupted supply of nearly 40 MnTPA of raw materials from ports
and captive mines through railway wagons, ensuring quality and
optimal cost. To transport raw materials inside the Works, a network
of conveyor belts is used and solid waste is transported by road.
1 RAW MATERIALS MINING AND PROCESSING
We are India’s most integrated steel company with captive mines of
iron ore and collieries located around our manufacturing facilities
in Jamshedpur and Kalinganagar. We follow the highest standards
of environmental management in our mining locations and use
advanced technologies for our mining operations.
2 INBOUND LOGISTICS
We are strategically located for our inbound supplies and our
imported raw materials sourced from around the world are routed
through three major ports: Dhamra, Paradip and Haldia (approx.
350 km, 400 km and 250 km from Jamshedpur, respectively).
48
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
3 IRON AND STEEL MAKING
We produce steel through the Blast furnace route. We convert the raw
materials to hot metal and crude steel through various supporting
processes including coke making, sinter making, and pelletisation.
Our processes, are designed to deliver high productivity with the
available resources while managing slag rate and steelmaking
requirements.
Technologies deployed
4 ROLLING AND PROCESSING
(FLAT AND LONG PRODUCTS AND OTHER VALUE-ADDED PRODUCTS)
Our rolling mills help us manufacture a diverse product mix with
customised shapes, sizes, and various chemical and technical
properties. Aligned with customer specifications and requirements,
our products undergo stringent quality checking and assurance
processes. We produce a range of value-added products for the retail
markets and provide customised solutions to several of our industrial
buyers.
Stamp charging battery, CDQ, Open bed sintering, Fines utilisation
as pellets, Bell-less top charge high-capacity furnaces, Basic Oxygen
Furnace for steelmaking, Online granulation of Blast Furnace Slag,
De-sulphurisation, Secondary steelmaking
Technologies deployed
Slab to coil, Billet to bar/rod, Rolling Tandem Mill for pickling and
rolling, Hot dip galvanising
5 OUTBOUND LOGISTICS
By-products business
Our outbound logistics, consisting of a network of warehouses
and Steel Processing Centres (SPCs), ensure timely delivery and
transportation of finished products to meet on-time delivery
expectations of customers through a network of 6 hubs and
18 stockyards at strategic locations across India. This ensures delivery
cycles as low as 48 hours from the stockyards. Output volumes
comprising 34 product types from 49 production units move
primarily through Indian Railways and trailers, covering distances
from about 15 km to over 2,300 km.
Operating on the 3R principle – Recover, Reuse and Recycle–our
Industrial By-products Management Division (IBMD) deals in a variety
of by-products and scrap in the entire steel value chain. It offers a
wide range of industrial by-products that serve as key raw materials
to various industries, including aluminium and copper, coal tar,
galvanised scrap, zinc by-products, ground granulated blast furnace
slag (GGBS), to name a few. It handles more than 13 MnTPA with more
than 25 products and 150+ Stock Keeping Units (SKUs) in its portfolio.
Operational excellence maximising
efficiency and improving cost performance
IMPROVING COKE RATE AND REDUCING EMISSION
Coke rate is an important operating KPI for an integrated steel plant,
impacting cost, CO2 emission and energy intensity. At Tata Steel, we
aim to reduce the coke rate in our blast furnaces while optimising
our raw material cost. In Financial Year 2018-19, the coke rate at our
Kalinganagar plant improved significantly from 434 kg/tonne of hot
metal to 399 kg/tonne. The combined coke rate and energy intensity
for Jamshedpur and Kalinganagar in Financial Year 2018-19 was
363.15 kg/tonne of hot metal and 5.82 Gcal/tcs, respectively.
TSJ & TSK - Coke rate* (Kg/tonne of hot metal)
1
6
5
3
4
4
0
8
3
4
3
4
8
4
3
0
6
3
Good
9
9
3
2
5
3
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
BUILDING SUPPLY CHAIN EFFICIENCY
TSJ & TSK - Energy intensity (Gcal/tcs)
Supply chain management is key to the operations of an integrated
steel plant and requires optimum inventory management of raw
materials without compromising on timely delivery and supply of
finished products to customers located across India and abroad in
the most safe, cost-effective and environment-friendly manner. Our
manufacturing sites are located in the eastern part of the country,
while delivery points are pan-India. Given the challenges of logistics
in eastern India, we use a multi-modal logistics chain, which includes
roads, railways and shipping. Currently, our inbound logistics for
raw material transportation is completely dependent on the Indian
Railways, while outbound logistics for finished products is dependent
about 60% on railways and 40% on roadways.
9
4
8
.
9
2
7
.
7
6
5
.
7
6
5
.
Good
1
3
.
6
7
6
5
.
1
0
6
.
7
7
5
.
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
* Coke rate means kilograms of coke used to produce 1 tonne
of liquid iron in blast furnace
49
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 We
Innovate
We
Innovate
Beyond Steel
Continuing with our spirit of innovation, we are moving
beyond steel into services and solutions, and materials for
the future. Our Services & Solutions business is focussing
on scaling up offerings such as Pravesh and Nest-In, while
the new Materials Business is focussing on Fibre Reinforced
Polymer Composites and Graphene.
~10%
Targeted size of revenue
from new materials by 2025
Intellectual
capital
Innovating
tomorrow with
technology
and digitalisation
Tata Steel aspires to be a pioneer
in leading the fourth industrial
revolution and is committed
to developing cutting-edge
technologies, and design solutions,
that help transform processes,
leverage digital technology to
improve efficiencies, and enhance
customer experience.
R&D spend
₹216 Cr.
Patents granted
72
New products*
launched
114
* New product is defined as product developed at
Tata Steel through new processes and technology
and then commercialised
Amidst changing customer needs, competition from alternate
materials and increasing regulatory risks, we strive to continuously
innovate and adapt to change.
STRATEGIC FOCUS
SO3
Technology and a culture of continuous improvement are key
enablers towards achieving the strategic objectives of industry
leadership and cost leadership.
GOAL
To be one of the top five
technologically advanced
global steel companies
WAY FORWARD
IMPACT ON SDGs
• We will continue to enhance our new product portfolio, cost-
competitiveness, and environmental performance through
capability building and collaboration with technology and
research partners.
• We aim to co-develop and adapt new business models that
can bring about a paradigm shift through world-class partners
and start-ups.
Innovation focus of Tata Steel
We are focussed on leveraging our R&D capabilities through
New products
Advanced materials
Process improvements
Digitalisation across the
value chain
Innovation is driven and leveraged by the technology organisation, new
materials business, and services and solutions business. The process
also focusses on building new competencies and capabilities to enable
our organisation to be future-ready.
SO3 - Insulate revenues from steel cyclicality
53
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 INTELLECTUAL CAPITAL (Continued)
Driving innovation at Tata Steel
Tata Steel has a two-pronged approach towards innovation, supported by
robust resource allocation and organisational commitment.
We engage engages in innovative ideas that lead to significant continuous improvements driven by the transforming
the business landscape, enabling us to become best-in-class, and setting benchmarks in the industry.
We also pursue breakthrough ideas to create new value propositions, businesses and technology shifts.
Factors that help us drive innovation
Our R&D function has over 200
researchers and collaborations
with 40 institutes.
In-house platforms such as
Innovent support our strong
culture of innovation. Innovent
focusses on identifying key
customer insights and translates
them into tested and scalable
business models.
Innovation council led by R&D
aims to generate novel ideas
and enable implementation.
New collaborations as well as
advancements in new materials
and solutions are some key
outcomes of this process.
We have set up enhanced
research facilities with latest
laboratories such as APERTA
(Thermochemical Simulation),
enGENE (Biotechnology
Solutions), PEARL (Product
Forming and Performance
Research), SeFondre
(Welding) and Reynolds
(Mathematical Modelling).
India’s First Fibre Reinforced Polymer (FRP) based Foot Over Bridge Installed at R&D Division, Tata Steel Jamshedpur
54
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR New product development
New materials
Process improvement
Graphene
Graphene-doped plastic products that were
used in Tata Steel for industrial use showed
a two-fold increase in life as compared to
existing products.
Special focus was given to new
steel product development for the
Pre-Engineered Building (PEB), Lifting
and Excavation (L&E) and Oil & Gas
(O&G) segments. The production facility
at Kalinganagar helped develop new
products in an accelerated timeline. In-
house R&D efforts, collaboration with Tata
Steel Europe and technical institutions
helped us expedite the product and
process design for these products.
Use of High Gradient Magnetic
Separator (HGMS) for iron
ore slime beneficiation
Currently, the Noamundi iron ore mine
discards 16% of wet run of mine output
as slime, which has 8% alumina and
55% iron content. Implementation of
HGMS is expected to recover 50% of
slime containing iron content of 63%.
This initiative is in its pilot stage and is
expected to save virgin raw materials
and increase mine life through improved
beneficiation.
Tata Steel has developed and successfully
commercialised the first-of-its-kind
Pravesh Vista steel windows in Financial
Year 2018-19. This product has won
the 8th CII Design Excellence Awards
2018 under the Industrial Design:
Architecture and Interior Products
category
Fibre Reinforced Polymer (FRP)
Our new materials business has adopted an
asset-light model through partnerships and
collaborations to develop FRP products that
cater to automotive, industrial, infrastructure,
and railway sectors. This includes FRP
solutions for streetlight poles, pressure
vessels, pipes, modular toilets, chemical
tanks, and foot over bridges.
To enhance our innovation in this segment,
we are collaborating with National
Composite Centre - Bristol UK, Indian
Institute of Science - Bangalore, IIT Roorkee,
NIT Rourkela and other Council for Scientific
and Industrial Research (CSIR) Labs. Apart
from FRP Composite and Graphene, there is
focus on building other advanced materials,
e.g., ceramics, into our portfolio to expand
the New Materials Business.
Reducing carbon footprint using
Carbon Composite Briquettes
Sintering route has low carbon utilisation
as super fines escape through the sinter
bed, resulting in low efficiency and poor
work environment. A new technique of
super fine agglomeration called carbon
composite briquetting was developed
and charged into the blast furnace.
A successful plant trial resulted in a
favourable drop in coke and carbon rate.
This will be adopted across facilities over
the next three years.
55
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 INTELLECTUAL CAPITAL (Continued)
Moving ahead with digitalisation
In Financial Year 2018-19, we embarked on a long-term digital
technology led business transformation programme to drive value
creation across the enterprise. We have set ourselves stringent
targets towards digitalising our plants and processes, and have taken
definitive steps towards building capabilities to deliver transformative
solutions. The goal is to become agile, intelligent and smart in all
our business processes, and enhance stakeholder experience, while
generating substantial EBITDA improvement.
Domains under focus for digitalisation
Our key business transformation initiatives are in the
domains of Integrated Supply Chain and Logistics, Smart
Asset Maintenance, Customer-facing Digital Platforms, Smart
Closure of Financial Accounts, Smart Procurement, and Energy
Management.
To drive and sustain transformation of this scale and deploy digital solutions, we have
structurally altered our IT infrastructure spend. We have moved from being capex-heavy
to capex-light by opting for managed services to augment the IT layers of connectivity,
infrastructure and cyber-security.
https://aashiyana.tatasteel.com
CUSTOMER INTERFACE
Our customer-facing digital
platforms–Aashiyana, DigECA
and Compass–have resulted in
additional revenue and continue
to be one of the enablers
in improving our customer
satisfaction.
DATA SECURITY
PREDICTIVE ANALYTICS
With increasing connectivity and
data flow, we are exposed to the
risk of new-age cyber crimes.
We have deployed a full-scale
Security Operations Centre
(SOC) to safeguard our IT and
Operational Technology (OT)
data and applications, which has
the capability to analyse 30,000
events/sec, resulting in proactive
detection and defence from
cyber threats.
We have built and deployed over 40 Advanced Analytics models to
enhance operational efficiencies, which include:
• Reduction of ore stickiness in our iron ore mines and turnaround
time of wagons, leading to lower demurrage
• Reduction of downtime of apron feeders
• Improvement in quality of pellet, coke and sinter to blast furnaces
at optimum cost and lower emission, further aided by in-process
hot metal temperature and furnace
• Permeability prediction models that improve iron making at
reduced coke rates
• Optimisation of the slitting of mother coils to reduce yield loss at
Steel Processing Centers, and reduction of Stock Keeping Units
of Pravesh doors that resulted in improved delivery time for
customers
• Optimisation of our distribution costs
56
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Tata Steel joins the CII led collegium of futuristic business
houses to pledge support to the start-up ecosystem
‘Mind Over Matter’ Programme - Tata Steel’s Annual
Innovation Challenge for Engineering Students
INDUSTRY KNOWLEDGE LEADERSHIP AND COLLABORATIONS
Tata Steel leads industry efforts in supporting knowledge transfer
and capability building across and beyond its sector. We have worked
extensively with the Government and regulators to shape policies
that influence the sustained economic growth towards national
priorities. Our leadership is on numerous committees that engage
in dialogue on issues ranging from environment, financial practices
to social initiatives and others. Our senior leadership is engaged at a
global level to help formulate paths towards Industry 4.0.
Our organisation regularly supports industry bodies and peer
networks in sharing best practices, training, research, and ideas that
enhance the overall performance of the Indian industry. Events such
as annual fraternity meets are held for maintenance communities
that connect engineers from all locations with the objective of
sharing best practices and achievements.
Other forums used to promote cross-learning and sharing of best
practices are the shared services technical meet and quarterly meet
of experts at Kalinganagar.
Tata Steel collaborates with various technical institutes and
technology start-ups/SMEs nationally and internationally to
create an ecosystem for cross-learning and collaborative working.
The collaborative projects range from emerging technologies,
environment, Artificial Intelligence, robotics and other long-term
research assignments. These collaborations work in a two-way
manner where students from institutes work at Tata Steel and
Tata Steel employees are sent for research fellowships to study at
different universities. Tata Steel is also engaged with government-
funded research programmes such as Uchhatar Avishkar Yojana
(UAY). The Value Analysis and Value Engineering (VAVE) programme
is an engagement mechanism where Tata Steel engages with
customers on topics such as how best to use steel, simulations,
modelling for light weighting, and optimum material usage.
The senior leadership of Tata Steel is part of various national
level research missions such as the Centre of Excellence in Steel
Technology (CoEST, IIT Bombay) and the Advanced Manufacturing
Centre at IIT Kharagpur, among others.
CONTINUOUS IMPROVEMENT - SHIKHAR25
Total Quality Management (TQM) is deeply embedded in the ethos
of Tata Steel. It involves all sections of the workforce in driving
improvement projects for enhancing performance. Initiatives for
achieving operational excellence have reduced operational cost and
environmental impact while delivering higher EBITDA margins.
The Shikhar25 programme focusses on delivering superior product
quality, optimising product mix, improving operational efficiency to
lower carbon footprint, reducing waste generation, improving waste
utilisation, and maximising energy and material efficiency.
In Financial Year 2018-19, we successfully implemented 427 Shikhar25
projects, resulting in total savings of ₹2,801 crore. We also increased
the coverage of Shikhar25 and started two new IMPACT centres.
These IMPACT centres focus on cross-functional themes, digital
initiatives, new technology, and collaboration with suppliers to
identify new avenues for improvement.
In addition, we implemented over 34,000 kaizens, 367 green belt
projects and over 100 other TQM projects. We achieved 92.6%
employee involvement in improvement activities. ‘Manthan Ab
Shopfloor Se (MASS)’ is an idea generation initiative for shop-floor
employees, focussing on issues such as safety, cost, operational
excellence, environment, etc.
57
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Human
capital
Preparing people
for tomorrow
We have a strong commitment towards our
people, which is demonstrated through our
industry-leading employee welfare practices
and a culture of working together. Industrial
harmony of over 90 years and a century-old
trade union is a testament to our culture of
working together.
32,984
Employees on roll (India)*
49%
Reduction in LTIFR
in last 10 years
~6.5 %
Women in the workforce
* Employees on roll means full-time employees on
payroll of Tata Steel.
A pioneer in progressive people practices, our aspiration is to be the employer of choice
in the steel industry, taking care of the needs of a diverse workforce of officers, unionised
employees, and contract workers. Further, we will be building the capability to support
our new businesses. Our Occupational Health and Safety (OHS) practices are aimed at
developing a culture of safety and care.
STRATEGIC FOCUS
SE
Investing in people and striving to be employer of choice is an
area of focus for Tata Steel. Creating a safe and healthy workplace
is a key priority. Care for the communities and people we touch in
our operating areas is embedded in our way of working through
our CSR practices.
WAY FORWARD
Continuing to focus on:
Employee engagement | Diversity and inclusion | Leadership
development | Employee experience | Zero harm to contract
partners | Upskilling of women across locations | Enabling the
inclusion of PWDs
GOALS
Improve employee productivity
Be one of the best places for people
to work
Zero fatality
25% diversity in workforce by 2025
2% improvement in health index
year-on-year
IMPACT ON SDGs
We focus on three thrust areas across the value chain to build and nurture our human capital:
Occupational Health and Safety (OHS)
Human Resource Management
Human Rights
Being in an inherently hazardous industry,
ensuring the highest degree of physical,
mental, and social well-being of the people
in and around our plants always remains a
top priority for us. We work to ensure our
operations are fatality free and become a
benchmark in the steel industry. Currently,
we are working on six safety and health
strategies, which drive our corporate
objective of ‘Committed to Zero’.
SE - Strategic Enabler
With 32,984 employees, Tata Steel
continously strives to be an employer of
choice. Diversity within our workforce is of
paramount importance as it enhances our
overall capabilities and promotes a culture
of innovative thinking. To attract and retain
diverse talent is a challenge considering the
nature and breadth of our operations.
Tata Steel employs and impacts
a huge workforce throughout its
value chain. Any risk of human rights
violation could have significant
reputational repercussions.
Therefore, we are actively engaged
in upholding human rights in areas
where we operate.
59
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 HUMAN CAPITAL (Continued)
Occupational Health and Safety (OHS)
Occupational Health and Safety (OHS) is a key material issue for
Tata Steel and is a priority focus at all levels of leadership. We have
instituted policies that drive a culture of safety consciousness
and prevention across our entire operations. Our commitment is
reflected in the successful ramp-up of the Kalinganagar facility while
maintaining the best practices in health and safety.
SAFETY GOVERNANCE AT TATA STEEL
We have a strong governance structure driven by the Safety,
Health and Environment Committee of the Board (chaired by an
Independent Director) and the Apex Safety Council (chaired by the
Chief Executive Officer and Managing Director). Their directives
are cascaded through sub-committees chaired by relevant
Vice Presidents through monthly reviews, which are then executed
across the organisation.
‘Committed to Zero Harm’
Employee at Steel Melting Shop, Jamshedpur Steel Plant
Safety and Health Excellence Recognition 2018 by World Steel Association
60
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Key initiatives for OHS in Financial Year 2018-19
Impacts
Building leadership capability for safety at all levels
to achieve zero harm
Tata Steel is committed to building leadership capabilities in safety
across all levels. Health and safety is integrated into our annual
business plan. Executives have safety targets that are embedded in
their annual performance metrics and are linked to remuneration.
An integrated health, safety & environment risk management system
was rolled out across the organisation to identify hazards, and assess
and mitigate risks. A new Health and Safety Reward and Recognition
policy has been formulated to promote positive safety behaviour.
~26%
reduction in high
potential incidents
~12%
increase in ‘Near Miss’1
captured over the last
financial year
Building competency and capability for
hazards and risk management
Frontline leaders have been trained on the recalibrated risk
management process. E-Work permit systems have been successfully
piloted and rolled out. 57 Safety standard audits by Cross Functional
Teams (CFTs) were carried out across locations to identify and address
the safety standard deployment gap.
Contractor safety risk management
Our operation and maintenance activities engage a sizeable
contract workforce. We have established the process of Contractor
Competency Assessment (star-rating system on a scale of 0-5) for
our service providers. Tata Steel deploys only 3-star and above rated
vendors on high-risk jobs. Workshops and incentive schemes are
used to motivate 3-star rated vendors to upgrade to 4 and 5 stars.
Skill certification training and mentorship programmes by Felt
Leadership trained supervisors were introduced for the contract
workforce.
Elimination of safety incidents on road and rail
Tata Steel value chain depends on safe and efficient transport
through both road and rail logistics. We are enforcing road safety
related behavioural changes across our organisation. To make
it safer, various infrastructure improvement initiatives such as
traffic segregation and streamlining, drop gates, transport park,
smart buses, radar-based speed monitoring, and introduction of
digitalisation at gates for materials have been introduced.
1,201
officers trained on
recalibrated risk matrix
2,928
opportunities for
improvement identified by
these CFT audits
1,035
vendors assessed, of which
173 were rated as 4-star and
5-star
12,366
contract workforce
(10,594 workers and 1,772
supervisors) trained and
certified
Sustained
Zero
fatalities inside plant
premises for the last four
years across Tata Steel
56%
reduction in road LTI over
Financial Year 2017-18
1 Occupational Safety and Health Act (OSHA) defines a near miss as an incident in which no property was damaged and no personal injury was
sustained, but where, given a slight shift in time or position, damage or injury easily could have occurred
61
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 HUMAN CAPITAL (Continued)
Key initiatives for OHS in Financial Year 2018-19
Impacts
Excellence in Process Safety Management (PSM)
Center of Excellence (CoE) on Process Safety Management (PSM) was established in Financial
Year 2014-15 to ensure effective control of risks at high hazard operations. In the last year, it
was extended to eight new departments. 19 exemplars were developed to support PSM CoE
implementation across the organisation. A procedure for process hazard analysis has been
developed and piloted on new projects. A structured asset management standard framework
has also been developed.
Establishing industrial hygiene and improving occupational health
Tata Steel’s integrated approach in industrial hygiene and occupational health is underpinned
by the three pillars of prevention, promotion and reintegration. We follow the World Health
Organisation’s model of ‘healthy workplace’ for creating a workplace that does not harm the
mental and physical well-being of people. The ‘Wellness at Workplace’ programme was initiated
to create awareness among people to adopt a healthy lifestyle and control lifestyle-related
diseases. The effectiveness of the initiative is monitored through the Health Index1. Tata Steel has
collaborated with external partners to understand and improve workplace ergonomics through
risk assessments and implementation of ergonomics control measures.
Recognised by World Steel
Association in 2018 for
process safety journey
through CoE
1.2%
improvement in Health Index
56%
high-risk cases related
to lifestyle diseases
transformed to moderate or
low risk
10
hazard control projects
12
ergo control projects
implemented
Fatality (Nos.)
Lost Time Injury (LTI) (Nos.)
5
5
7
9
3
2
2
Good
0
8
7
6
4
6
8
6
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Lost Time Injury Frequency Rate (LTIFR) (Index)
Health Index (Score out of 16)
7
3
0
.
Good
9
2
0
.
9
2
0
.
1
2
2
1
.
7
3
.
2
1
9
5
2
1
.
7
4
2
1
.
Good
2
6
2
1
.
1
3
0
.
3
2
0
.
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
1 Health Index consists of four parameters – blood pressure, blood sugar, serum cholesterol and Body Mass Index. Employees’ health is evaluated on these four
parameters and a score is generated on a scale of 16. A score of 0 in any of the Health Index parameters is deemed as high risk.
62
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Human resource management
EMPLOYEE PRODUCTIVITY
In Financial Year 2018-19, we implemented an Employee Productivity
Framework across our facilities and continued to identify redundancy
through programmes such as right skilling, Sunhere Bhavishya
Ki Yojna (SBKY) and Job-for-Job scheme. We made significant
progress in simplifying the organisation structure, systems and
communications. Numerous programmes were held to sensitise
employees on productivity improvement. In Financial Year 2018-19,
employee productivity at TSJ was 748 tcs/employee/year and at TSK
was 1,054 tcs/employee/year.
800tcs/employee/year
employee productivity in FY 2018-19
DIVERSITY AND INCLUSION
Tata Steel envisions to become a ‘truly
world-class organisation that respects
the uniqueness of individuals to create a
diverse and inclusive atmosphere, to have
a competitive edge in business by having
access to a larger talent pool’. Diversity and
Inclusion is a way of life to ensure fair and
equal opportunity for all employees.
MOSAIC – a diversity and inclusion initiative–
covers four aspects, gender, Person with
Disabilities (PwDs), LGBTQ+, and different
sections of society (e.g., Affirmative Action
Community). 32% of management trainees
hired from top business schools are female,
a result of our diversity-focused recruitment
processes.
~17%
employees from the
Affirmative Action Community
Centenary Year Celebrations of the Tata Workers’ Union
Fostering a diverse workforce
through MOSAIC
Policies to drive diversity and
flexibility
Recruitment
‘Women of Mettle’ to induct women
engineers into the manufacturing sector
Sensitisation
Zubaani, Panel Discussions and Debates,
MOSAIC Speak, Joint Development Council
Meetings, Power of Inclusive Management,
C-suite level sensitisation
Retention and development
Tata mentors, Reach Out, Tata Steel Engage,
Tata Steel Ignite, Step-up to Success, Launch
of Wings, SABAL for PwDs
Infrastructure
Creches, restrooms, accessible washrooms
and other infrastructure for the workforce
with special needs
Celebration
Events such as International Women’s
Day, and International Day of Persons with
Disabilities
Paternity leave for the blue-collared
workforce
A progressive step introduced to help
develop bonding between fathers and
their new borns
Take Two Policy
A career option for women to return.
We offer project-based and full-time roles
to women through this opportunity to
engage with Tata Steel
Satellite office operation
Helps employees who have a location
constraint by giving the option to operate
from a location of choice, where Tata
Steel has presence
5-day work week
Has been implemented with the view of
improving work-life balance
Adoption leave
This policy also includes single males and
transgender employees
Menstrual leave ‘Raahat’
No approval from superior is required to
take this leave
63
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 HUMAN CAPITAL (Continued)
WORKFORCE CAPABILITY DEVELOPMENT
Tata Steel has a Workforce Capability and Capacity Framework to assess capability needs across the
workforce for skill and competence building, customer focus, organisational performance, innovation,
health and safety, and environment and business ethics. We are continuously upgrading our training
infrastructure, methodologies and programmes. Customised awareness programmes and focussed
campaigns for relevant aspects of sustainability were conducted for Tata Steel employees and are also
made available to external stakeholders such as suppliers and the community.
₹132.87 crore
Investments in employee
training and development in
FY 2018-19
Employee trained (Mandays)
Training per employee (Mandays/employee/year)
,
0
5
0
4
3
3
,
,
0
5
0
3
6
2
,
,
7
7
1
1
3
2
,
Good
,
0
0
0
8
4
2
,
Good
2
5
7
.
2
6
5
.
0
6
4
.
2
6
2
.
5
6
2
.
,
4
2
9
3
9
1
,
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Human Rights
Tata Steel is committed to upholding human rights across its value chain. Our commitment is reflected in the following policy
documents (for more information, visit www.tatasteel.com).
The implementation of the Human Rights Policy at workplace is done through the adoption of the principles of SA8000 and the
United Nations Global Compact based on the Universal Declaration of Human Rights (UDHR) and ILO conventions.
Human Rights Policies
Tata Code of
Conduct
Social
Accountability
Policy (Human
Rights at the
Workplace)
Prevention of
Sexual Harassment
(POSH) and Anti
Sexual Harassment
Initiative (ASHI)
Safety Principles
and Occupational
Health
Affirmative Action
Corporate Social
Responsibility and
Accountability
We actively seek to strengthen our mechanism to prevent and mitigate adverse human rights issues through SA8000 audits
of our workplace. Appropriate corrective and remedial measures (checks and balances) have been identified to address any
non-compliances. Tata Steel underwent SA8000 surveillance audit in Financial Year 2017-18, and improved its Social Finger Print
Score from 3.9 to 4.3 on a scale from 1 to 5.
64
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR APPROACH TO PROTECTING HUMAN RIGHTS
For full-time employees
For contract workforce
Tata Steel is an equal opportunity employer and does not
discriminate on the basis of gender, caste, religion or disability.
During recruitments, we exercise positive discrimination in favour
of socially disadvantaged communities, provided the prospective
candidates fulfil our merit-based criteria. Our systems and processes
in this regard are monitored for compliance and are subject to
continuous improvement through the SA 8000 standards and third-
party verification. A special forum on diversity called MOSAIC has
been created across all locations of Tata Steel in India to sensitise the
workforce as well as undertake initiatives on promoting diversity.
A dedicated contractor’s cell was established to ensure that no
human rights violations take place at the workplace. The cell also
looks at corrective and preventive measures to deal with cases
of violations of our TCoC and Social Accountability Policy. The
contractor safety management process ensures that a safe and
healthy workplace is provided to the entire contract workforce.
Periodic assessments and ratings are carried out to upgrade the
contractor’s safety standards.
For supply chain partners
For indigenous communities
All our business associates are mandated to conform to and sign the
Business Associates Code of Conduct. The Code lays down human
rights and safety specific requirements that need to be maintained.
Every year, the procurement team undertakes sample assessments for
human rights (for potential high-risk suppliers) to ensure compliance.
Tata Steel’s operations require significant resettlement and
rehabilitation of indigenous communities residing in proximity
of its operating sites. Our Affirmative Action Policy and Corporate
Social Responsibility and Accountability Policy lay down the rules of
engagement with the affected parties. The CSR team ensures that
Tata Steel upholds the highest standards of human rights as part of
rehabilitation and resettlement, both before and after
project completion.
Promoting Gender Diversity
Employees Celebrating International Women’s Day 2019
65
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 We
Contribute
We
Contribute
Towards a
sustainable world
Acting responsibly towards the environment and the communities
we operate in is embedded in our core values. We also relentlessly
focus on ensuring the well-being and safety of people at our
workplaces, balancing economic prosperity, and generating social
benefits for the surrounding communities.
2018
Steel Sustainability
Champion
Recognised by World Steel Association
Natural
Capital
Conserving natural
resources for tomorrow
At Tata Steel, we continuously strive to protect
the environment. Our philosophy of minimising
environmental impact and promoting resource
efficiency guides our investment decisions to monitor
and mitigate the impact of our operations. The iron
and steel making process involves the use of natural
resources such as iron ore, coal, limestone and ferro-
alloys and is water and energy intensive. The GHG
(particularly CO2) and dust emissions emitted during
the process are key contributors to air pollution and
global warming. Maintaining sustainable operations
and continually making improvements to our products
and processes help us minimise our environmental
footprint.
Featured among top
7
integrated steel companies
globally in CDP 2018
Y-o-Y reduction in specific
water consumption
~8.5%
~10%
TSJ
TSK
100%
LD slag utilisation at
TSJ and TSK
We are in constant pursuit of minimising our environmental
impacts and conserving the natural environment around us.
STRATEGIC FOCUS
SO4
To achieve industry leadership in Corporate Social Responsibility
and Safety Health & Environment.
WAY FORWARD
We are investing in technologies to achieve the highest
environmental performance standards. We plan to achieve
this by adopting breakthrough technologies for raw materials
management, higher utilisation of LD slag, setting up the steel
recycling business, achieving zero water discharge, carrying
out lifecycle assessments of our products and embedding the
principles of circular economy in our operations.
Managing environmental
impact of operations
We have policies and processes in place for reducing energy usage
and minimising our environmental footprint across the value chain.
We have set stringent targets for energy intensity, greenhouse gas
emission, and water conservation. Our efforts also focus on reducing
waste, enabling a sustainable supply chain and understanding
the impact of our products on the environment through lifecycle
assessments.
RAW MATERIALS MANAGEMENT
Our Raw Materials Division not only provides cost-competitiveness
to our steel business but also ensures the sustainability of our
operations by way of assured supply of requisite quantity and quality
of raw materials required for steelmaking. The division is actively
engaged in incorporating state-of-the-art technologies while
mitigating the possible adverse impact on the environment.
Although, Tata Steel’s current operations in India are not located in
any of the identified biodiversity hotspots or protected areas, our
mining operations (being extractive in nature) impact the flora and
fauna in the region. Therefore, we voluntarily partnered with the
International Union for Conservation of Nature (IUCN) at our raw
material locations in Jharkhand and Odisha for the implementation
of biodiversity management plans.
SO4 - Industry leadership in CSR and SHE
GOALS
<2 tCO2/tcs GHG emission intensity
by 2025
Zero effluent discharge by 2025
Sustain LD slag utilisation at 100%
Ensure no net loss of biodiversity at
our mining locations
IMPACT ON SDGs
Rain Water Harvesting, Noamundi Iron Mine
69
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 NATURAL CAPITAL (Continued)
The mining operations of Tata Steel are working towards
enhancing progressive reclamation activities of the mine
dumps and ecosystems. In Financial Year 2018-19, the
following activities were undertaken in line with our policy
objectives of restoring the floral diversity and conservation
of keystone species:
• Optimised the plantation programme in terms of precise
type and number of native species to be used. The
diversity of the native species being used for plantation
activities increased by 22% and plantation of primary
keystone species increased five times
• Completed the mapping distribution of invasive species
at the Joda East iron mine and a systematic eradication
and restoration plan is now being implemented
• Planted over 2 lakh saplings of native species across raw
material locations
Bird activity was spotted in about 80% nest boxes that
were installed last year at Noamundi iron ore mines.
This niche nesting programme is being replicated at the
Company’s other mining locations.
Mined raw materials
28 MnT
Imported raw materials
~12 MnT
Niche Nesting, Noamundi Mine Area
70
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR ENVIRONMENTAL MANAGEMENT
We believe responsible environmental performance is an inherent element of our business strategy and these practices help us achieve a
leadership position in the industry. In Financial Year 2018-19, we spent ₹286 crore on environmental management efforts focussed on the four
pillars of emission, water management, circular economy and biodiversity.
Four pillars for environmental management
Emissions performance
Water management
Circular economy
Biodiversity
Emissions performance
CO2 emission
The Paris agreement aims at arresting the global warming to <2
degrees celsius for which the key requirement is to make CO2
emission net zero by 2050. The steel industry contributes to about
6-8% of global emission and is considered to be a ‘hard to abate
sector’ since carbon is used as a reductant in the steelmaking
process and low carbon steelmaking technologies are yet to be
commercialised. Cognisant of India’s commitment and the sectoral
requirements, Tata Steel has set an aspirational goal of <2 tCO2/tcs
emission by 2025.
Over the years, the adoption of best available technologies for
waste heat recovery such as Top Recovery Turbine (TRT), Coke Dry
Quenching (CDQ), use of by-product gases in power generation
and other energy efficiency initiatives have resulted in improving
resource efficiency as well as reducing carbon footprint. We continue
to implement Internal Carbon Pricing in our capital expenditure
appraisal process with the shadow price of carbon at US$ 15 /tCO2.
A benchmark for the industry
Tata Steel Jamshedpur is the Indian benchmark for CO2
emission intensity at 2.29 tCO2/tcs and energy intensity at
5.67 GCal/tcs for steel production through Blast Furnace -
Basic Oxygen Furnace (BF-BOF) route.
Top Recovery Turbine, Jamshedpur Steel Plant
A Centre of Excellence with members from iron making, steelmaking,
R&D and technology groups was constituted in Financial Year 2018-19
to identify and implement projects for CO2 reduction. Some such
projects are:
• Carbon Capture and Use (CCU) at Tata Steel Jamshedpur and at
the Ferro-Chrome plant at Bamnipal
• Assessing renewable energy potential across our locations in India
• Maximising scrap utilisation in steelmaking
71
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 NATURAL CAPITAL (Continued)
GHG emission from our steelmaking operations (Absolute
emission in million tCO2)
Steelmaking Sites
India (TSJ + TSK)
Particulars
Scope 1
Scope 1.1
Scope 2
Scope 3
Overall
Overall
FY15
21.10
2.27
0.72
-1.08
23.02
26.96
FY16
21.02
2.31
0.74
-1.19
22.89
25.48
FY17
25.53
3.69
1.11
-2.21
28.11
19.27
FY18
26.52
3.96
1.17
-1.99
29.66
19.18
Europe (incl. UK)
South East Asia
(NatSteel + Tata
Steel Thailand)
* Based on revised methodology of World Steel Association - User Guidance 9,
Overall
0.98
0.91
0.91
1.04
V22 since 2017-18
TSJ & TSK - GHG emission intensity (tCO2e/tcs)
7
4
2
.
3
.
2
8
0
3
.
9
2
2
.
5
6
2
.
3
.
2
Good
4
5
2
.
9
2
2
.
FY15
TSJ
FY16
TSK
FY17
FY18
FY19
Minimising dust and gaseous emissions
Product Lifecycle assessment
FY19
27.14
4.53
1.17
-1.81
31.03
18.75
0.96
Tata Steel uses Life Cycle Assessment (LCA) as a
tool to assess environmental impacts at the various
stages of its products’ lifecycle. Moving forward,
LCA would be used to undertake Environmental
Product Declaration (EPD) for key products of Tata
Steel. In Financial Year 2018-19, Tata Pravesh Doors,
Tata Structura and Tata Pipes achieved the GreenPro
certification by CII Green Business Centre – these are
the first steel products in India to get the eco-label
using the LCA study.
In recognising the tangible business
benefits of disclosure through Carbon
Disclosure Project (CDP), Tata Steel is
well placed to take meaningful steps to
address its environmental impacts. This can
help to ensure the Company’s long-term
sustainability and profitability, as well as
equipping it to respond to regulatory and
policy changes, such as the Paris Agreement.
Damandeep Singh
Director, CDP India
Over the last two decades, Tata Steel has made investments in installation and upgradation of air pollution control equipment at both its
manufacturing sites. Over the last five years, a total of 24 projects have been implemented to upgrade the existing air pollution control
equipment, including upgradation of all Electrostatic Precipitators (ESPs) at the sinter plant. An online stack monitoring system has been
commissioned in all major stacks. Dust emission (PM2.5 and PM10) is also a key material issue especially at TSJ, since the steel plant is located
in the midst of the city. These efforts have resulted in 68% reduction in dust emission at TSJ since 2005. While production at TSJ has more than
doubled since 2005, absolute dust emission has reduced by approximately 35%. Pollution control facilities were fully commissioned during the
ramp-up at our Kalinganagar facility, resulting in a reduction of almost 9% dust emission over the past year.
TSJ and TSK - Dust emissions
intensity (kg/tcs)
TSJ and TSK – Nitrogen oxides (NOx)
emission (kt)
TSJ and TSK – Sulphur oxides (SOx)
emission (kt)
3
1
.
Good
.
1
9
3
7
.
.
1
6
7
5
0
.
5
0
.
6
6
0
.
1
4
0
.
4
4
0
.
0
6
0
.
7
3
0
.
.
1
1
1
2
8
7
.
Good
0
2
7
.
3
0
5
.
3
6
1
.
2
7
.
5
7
.
4
9
4
.
.
1
5
Good
8
5
6
.
3
8
0
.
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
TSJ
TSK
TSJ
TSK
72
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Water management
Water is a critical resource used as a coolant in the steelmaking
process. Currently over 3m3 of freshwater is required per tonne of
crude steel produced. Our operations in India are located near the
Subarnarekha (TSJ) and Baitarani (TSK) rivers. We also have a water
reservoir, Dimna Lake, at Jamshedpur with a holding capacity of
6,292 million gallons of rain water, which can meet nearly 14% of
freshwater demand of the township. A river basin study has been
initiated for the Subarnarekha river to assess watershed level risks for
TSJ and implement better water management plans for improving
the water scenario in the district watershed and to ensure optimum
water flow in the river throughout the year.
Our water sustainability strategy for future-readiness is to continue
investing in Sewage Treatment Plant (STP) and creating new Rain
Water Harvesting (RWH) structures at various locations to improve
the ground water table. In Financial Year 2018-19, 29 million litres of
RWH structures were added at the Joda east iron ore mine. We have
also created various rainwater harvesting structures beyond the
fence as part of our community initiatives (ponds and check dams)
and township infrastructure (rooftop) at Jamshedpur and our mining
locations. A 25 MLD tertiary treatment plant was commissioned at
Bara STP to convert sewage water of the Jamshedpur township into
process water for reuse in Jamshedpur steel works. This will help us
reduce our freshwater consumption by 18% in the future.
TSJ and TSK – Specific water consumption*
(m3/tcs)
4
5
5
.
9
3
4
.
6
6
7
.
Good
6
7
4
.
8
6
3
.
3
8
3
.
9
2
4
.
7
2
3
.
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
TSJ and TSK – Effluent discharge
intensity (m3/tcs)
1
3
.
2
Good
2
1
.
2
0
1
.
1
0
1
.
2
9
0
.
9
2
0
.
9
5
0
.
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
* Specific water consumption is defined as freshwater
consumption per tonnne of crude steel produced
(at TSK water loss at clarifier is excluded in the
calculation)
Tata Steel Bara Tertiary Treatment Plant, Jamshedpur
‘Industrial Water Project of the Year 2019’ Award by the Global Water Intelligence (GWI)
73
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 NATURAL CAPITAL (Continued)
Towards circular economy
Solid waste utilisation
Steel industry is favourably placed for implementing circular
economy principles, given the ability to recycle steel as well as use
solid waste by-products. The by-products generated across the entire
steel value chain include coal rejects from the washeries, coal tar, slag,
and scrap from steelmaking shops and rolling mills. Our key initiatives
to maximise the utilisation of our by-products are described below:
• Recovery and reuse of metal from steelmaking slag:
Recovered metal from steel slag is used in the steelmaking
process. This scrap is used in steel melting shops along with clean
scrap and pooled iron.
TSJ and TSK – Solid waste utilisation (%)
3
.
8
7
.
6
0
8
2
2
7
8
.
.
4
4
8
.
4
2
8
6
6
Good
0
0
1
9
9
• Blast furnace slag and steelmaking (LD) slag utilisation:
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
Annually, Tata Steel handles ~17 MnTPA of by-products, which are
converted and sold across 20+ product categories. The key solid
waste generated during an integrated steel plant operation are
the blast furnace and LD slag, which, if not utilised would require
to be stored in engineered landfills. Granulated blast furnace slag
is 100% utilised in Portland slag cement making. However, the
LD slag, because of its chemical composition and reactive nature,
has limited applications. Tata Steel has developed and launched
India’s first ever LD slag branded products – Tata Nirman (for
construction application) and Tata Aggreto (for building roads).
Road construction is a big market for Tata Aggreto made from
processed LD slag. Tata Steel is engaged with government
institutions such as Indian Road Congress (IRC) and National
Highways Authority of India (NHAI) to promote the use of LD slag
as a substitute of natural aggregates in road construction. Sales
of Tata Nirman and Tata Aggreto launched last year increased
significantly from 230 kt in the previous year to 370 kt this year.
Tata Nirman was adjudged as the winner under Green Building
Material for AAC Blocks/Bricks & Others at the 8th edition of the
National Fly Ash Utilisation Conference held in Goa.
We have achieved nearly 100% slag utilisation across our
operations by investing in the processing of by-products and
developing alternative use in the construction industry. Facilities for
de-phosphorisation, slag granulation and briquetting are under
development, which would further ensure sustained utilisation with
higher value addition through usage in sinter making, construction,
road making, agriculture, etc.
74
Tata Aggreto used as a Replacement of Natural
Aggregates in Road Construction
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Steel recycling business
Steel is 100% recyclable and can be recycled infinitely to create
new steel products, making it suitable for a circular economy.
Recycled steel maintains the inherent properties of original steel.
Steel scrap demand in India at present is 30 MnTPA, with 5 MnTPA
being imported. The demand and supply is likely to increase as a
result of government policies, rapid urbanisation and economic
activity. However, the Indian scrap industry is highly fragmented
and unorganised with a complex supply chain, where availability of
clean scrap is a challenge. There are many small aggregators who
collect scrap from various sources and sell unprocessed scrap with
inconsistent quality. There is also a lack of requisite policy framework
for this industry in India. Most operations are manual and there is
little concern towards safety and environmental issues.
Tata Steel is taking the lead in setting up a steel recycling business
with the objective of collecting, aggregating and processing
scrap in a formalised way, which can subsequently be used for
steelmaking through the Electric Arc Furnace (EAF) route. Steel
production through the EAF route uses scrap as key input and is a
more sustainable way of producing steel. This could reduce carbon
emission by 50-60% as compared to traditional steel production.
Through collaboration with the government, Tata Steel wants
to formalise this industry and enhance scrap utilisation through
partnerships across the supply chain, such as with aggregators,
processors, dismantlers, logistics partners and end consumers.
Looking beyond its own operations, Tata Steel is actively working
on policy advocacy with various government and industry bodies
to build scrap utilisation networks. The resource efficiency policy
has been released and the steel scrap policy is in the draft stage.
The Bureau of Indian Standards has also constituted a technical
committee to review the Scrap Codes.
TSJ and TSK – Material efficiency (%)
.
3
1
9
.
4
2
9
1
9
.
9
2
9
.
6
4
9
.
9
3
9
Good
0
0
1
.
9
6
9
FY15
FY16
FY17
FY18
FY19
TSJ
TSK
A step towards formalising the steel
recycling industry
The first steel scrap processing unit is being set up at Rohtak,
Haryana, for which Tata Steel has entered into a long-term
build-own-operate agreement with Aarti Green Tech Limited.
With an investment of ₹150 crore, the first unit will have an
installed capacity of 0.5 MnTPA. Digital platforms and channel
networks will help collect scrap from various segments such as
households, industries and end-of-life vehicles. This scrap will
be processed through mechanised equipment and used as an
input raw material for downstream steelmaking through EAF.
Commercial production is expected to begin in Financial Year
2019-20 with plans to subsequently expand across India.
Steel Scrap
75
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Social and relationship
capital
Strengthening
relationships for a
sustainable tomorrow
Our long-term relationships
with customers, suppliers and
communities are key to our
business sustainability. Nurturing
these relationships for the long
term is integral to our strategy.
>1.1million
lives touched through CSR
initiatives
Customer satisfaction
index (steel) consistently above
80 (out of 100)
over the last 4 years
~1,400
suppliers trained
through Vendor Capacity
Advancement Programme
(VCAP)
Customers
BUILDING RELATIONSHIPS WITH CUSTOMERS
In line with the motto of ‘Reshaping our business for tomorrow’,
Tata Steel is serving the growing needs of our B2B (Business
Accounts), B2C (Individual Consumers) and B2ECA (Emerging
Corporate Accounts) - customer segments by offering differentiated
products and services. Our end-to-end operation across the value
chain, from mining to finished steel goods, enables us to deliver
superior quality products. Over the years, we have built strong
relationships with the channel partners that has allowed us to serve
existing B2C and B2ECA customer segments through our nation-
wide professional distribution network. We are now leveraging this
extensive network established for steel products to extend our
customer-centric services and new solutions such as Tata Pravesh
Doors & Windows to markets in urban and rural India.
ENTERING NEW MARKET SEGMENTS
While our customers in the automotive and construction segments
enjoy our unwavering commitment and focus, Tata Steel has entered
into new attractive segments and micro-segments by adding new
facilities, and by creating market differentiators through user-friendly
services and solutions. In our constant endeavour to meet the future
needs of our customers, we have forayed into other materials such as
Fibre Reinforced Polymers and Graphene.
Customer Meet - Reinforcing Relationships
STRATEGIC FOCUS
SO1
SO3
To meet our objective of becoming the industry leader in steel
and insulating revenue from steel cyclicality, we are is going
beyond the traditional products by offering a range of customised
services, solutions and value-added products across traditional
and new customer segments
WAY FORWARD
• Expand Tata Pravesh into Tier 3 and Tier 4 towns
• Increase share of high-strength steel in the Lifting & Excavation
segment
GOALS
Increase revenue from our services
and solutions business
Improve downstream products
business
Enhance B2C business
Increase revenue from new
materials business
• Build customer base aligned to the health and sanitation
agenda through municipal corporations and corporates
IMPACT ON SDGs
• Scale up new wire fabric product – Sm@rtFAB
• Develop and scale up the new materials business
SO1 - Industry leadership in steel
SO3 - Insulate revenues from steel cyclicality
77
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 SOCIAL AND RELATIONSHIP CAPITAL (Continued)
Value Proposition for different Customer Groups
B2B (Business Accounts)
B2C (Individual Consumers)
B2ECA (Emerging Corporate Accounts)
• High product quality and performance
• Offer design consultations for optimised
• Branded products that offer quality and
• Cross-functional engagement through
product usage
durability
customer service teams
• Branded products that offer quality and
• Customised grades and products through
• Extended long-term relationships with
customers
• Value-added engineering onsite support
to OEM customers
• ‘COMPASS’: A digital platform for supply
chain visibility
trust
micro-segmentation
• Network and channels that enable
products to reach customers just-in-time
• Digital platforms such as ‘Aashiyana’ for
early engagement and e-commerce
• Customer forums to share best practices,
including safe working practices, and to
build capability
• Digital platforms such as DigECA enable
our channel partners to serve the
customers better
Tata Steel domestic sales (MnT)
BENEFITS CUSTOMERS DRAW FROM BHUSHAN STEEL ACQUISITION
42%
B2B Industrial
product &
projects
19%
B2B Automotive
16%
B2C
22%
B2ECA
Our customers also stand to gain from our acquisition of Bhushan Steel (now Tata Steel BSL),
through which we will be able to provide them an enhanced product portfolio. Our
customers will now have the advantage of choosing from our quality offerings in colour-
coated products and precision tubes. This expanded capacity, leading to ramping up of
volumes of Tata Shaktee, Tata Kosh, Tata Steelium and Tata Astrum, will empower our
customers by eliminating stock outs at their end and serve their demands better. In addition
to leveraging our customer outreach and sales, we can now provide a better range by
manufacturing complementary products.
In Financial Year 2018-19, more than two-third of our output were served to our automotive
and construction customers who continue to be our valued partners. We also catered
to the engineering sector, in which our comprehensive portfolio of solutions range
from engineering services to custom-made plant and equipment. Our product range in
high-quality agricultural implements is allowing our customers in Indian rural markets get
value for money. Beyond this, Tata Steel continues to expand into the oil & gas and lifting &
excavation segments by enhancing its expertise and preparing downstream facilities to serve
the segment. We are continuously striving to meet the evolving needs of our customers by
effectively engaging with our channel and ecosystem partners to enhance their capacity
and capability.
78
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Key initiatives to enhance value for customers in Financial Year 2018-19
Automotive
Construction
Engineering
Tata Steel is in the process of shaping the construction
industry by maintaining its leadership position in
specific segments such as individual house builders,
medium and small housing and construction, and rural
roofing segment.
• Tata Steel is investing in downstream products, which
help reduce overall cycle time and project costs for
our customers
• We are enhancing the quality of consumer experience
through various initiatives. E-sales of Tata Tiscon and
Tata Shaktee have been scaled up through the early
engagement portal ‘Aashiyana’
• India’s first-ever Fibre Reinforced Plastic foot over
bridge was set up by the New Materials Business in
March 2019
Tata Steel is working closely to develop
new grades of steel with its ECA brands.
• Over 157 customer engagement
activities were organised for
7,000+ Emerging Corporate Accounts
(ECAs), through the Ecafez Qualithon
platform
• 5 ECA conclaves (an Engagement
forum for ECA customers with
senior leadership of Tata Steel) was
conducted for ECA customers across
India
• Leveraged initiatives through the
deployment of customer service
teams, Value Analysis and Value
Engineering (VAVE) and Technology
Day
In India, Tata Steel continues to retain a
leadership position in the automotive
segment.
• Providing focussed customer
initiatives such as Customer
Service Teams, Value Analysis and
Value Engineering and Advanced
Technical Support
• Provided high-end grades through
the Kalinganagar plant
• Attained 41% growth in high-end
cold rolled coils and sheets through
JCAPCPL (joint venture between
Nippon Steel & Sumitomo Metal
Corporation and Tata Steel)
• New materials business developed
FRP products for the automotive
sector
Customer Satisfaction
Index (Steel) (Score out of 100)
.
8
7
7
.
4
0
8
.
3
1
8
.
4
1
8
Good
.
6
1
8
Customer complaints (PPM)
3
7
7
4
9
5
2
5
6
1
1
6
Good
4
4
4
FY15
FY16
FY17
FY18
FY19
FY15
FY16
FY17
FY18
FY19
Happy working with Tata Steel
which is providing resource-
effective and sustainable systems
that are adding value to our
CSR initiatives.
Sanjay Khajuria
Senior Vice President, Corporate Affairs,
Nestlé India Limited
79
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 SOCIAL AND RELATIONSHIP CAPITAL (Continued)
Suppliers
FOSTERING LONG-TERM RELATIONSHIPS WITH
SUPPLIERS
As an integrated steel manufacturer, we work very closely with our
network of supply chain partners in upstream as well as downstream.
Our supply chain process is focussed on using a multi-pronged
approach of vendor segmentation and developing long-term supplier
partnerships. We treat our 5,000+ vendors as business partners
through a fair and transparent governance process. All our supply
chain partners are required to comply with the Tata Code of Conduct
(TCoC) which enumerates the principles of fair business practice,
ensuring human rights, complying with environmental regulations
and standards, and adhering to health and safety requirements.
The supply chain partners are covered under the whistle blower policy
and a formal grievance redressal system. To ensure high standards
of occupational health and safety in the supply chain, suppliers are
rated on a 5-star scale. Contracts with high safety risks are awarded
only to partners who score 4 and above on this scale. We also conduct
periodic audits to ensure compliance to good human rights practices.
359 vendors have been trained on TCoC and SA8000, and eight have
been blacklisted due to non-compliance with the TCoC.
>5,000 Suppliers
STRATEGIC FOCUS
SO2
SO4
Maintain cost leadership and care for people across our supply
chain through partnerships with our suppliers
WAY FORWARD
Further deepen our relationship building and process
strengthening initiatives
Supplier Sustainability Expo 2018
GOAL
We aim to create value creating
partnership with our supplier
community, based on a foundation
of ethical conduct, high standards
of working conditions and concern
for the environment
IMPACT ON SDGs
SUPPLIER RELATIONSHIP MANAGEMENT (SRM) PROGRAMME
The SRM programme is aimed at collaborating with strategic vendors on digitalisation
and innovation. We are including suppliers in technological knowledge transfer and
capacity building programmes to enhance operational efficiencies, reduce transaction
time and bring in transparency. Around 1,400 suppliers were covered through the Vendor
Capability Advancement Programme (VCAP) under various topics such as TQM, finance, skill
development, operational excellence, ethics, safety, and sustainability.
Further, to support the local communities and encourage the inclusion of marginalised
sections of the society, we develop entrepreneurial capabilities and promote vulnerable
communities by positive differentiation through Affirmative Action (AA) Programme of Tata
Steel. Nearly 25% of our supply chain partners are local, out of which 70 are AA suppliers.
359
vendors trained
on TCoC and
SA8000
1,035
suppliers
assessed on safety
parameters
70
AA suppliers
~25%
suppliers are
local
SO2 - Consolidate position as a global cost leader
SO4 - Industry leadership in CSR and SHE
80
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Communities
SHARING VALUE WITH COMMUNITIES FOR
A SUSTAINABLE TOMORROW
For Tata Steel, the well-being of communities and employees is at the
core of its business. We operate in the remote regions of Jharkhand
and Odisha whose overall socio-economic development is not at par
with other parts of the country. The mining and metals industry has
an inherent, significant and lasting adverse social and environmental
impact on the surrounding population. We have mitigated these
impacts by delivering a number of path-breaking interventions since
inception. Townships with necessary facilities (utilities, healthcare,
education and opportunities for earning a livelihood) provide a
superior quality of life equally benefitting employees, their families
and the local population.
STRATEGIC FOCUS
GOAL
SO4
Industry leadership in CSR and SHE
Touching > 2 million lives by 2025
WAY FORWARD
IMPACT ON SDGs
• Establish district models in improving access to and quality of education and healthcare for
infants, mothers and adolescents
• Continue to engage with tribal communities and nurture leadership potential among tribal
youth
• Adopt innovative ways of enhancing household income, community nutrition, completion of
basic education till matriculation by all, dealing with endemic water deficiency, supporting the
differently abled and enabling better self-governance among citizens at the panchayat level
• Explore partnerships with governments, social sector organisations, academia, experts and
other organisations in the national development space
OUR CSR INTERVENTIONS GO BEYOND REGULATIONS
Tata Steel has over a century of shared context, with communities
giving it a microscopic view of their critical needs and aspirations.
This has enabled the design of focussed initiatives which have
matured over the years, from service provision to empowering
communities in forging their future. CSR interventions are deployed
by almost 600 professionals with diverse skills interacting directly
with the community daily, partnered by organisations of national
and global repute. TSL consistently commit resources to bold and
innovative projects designed at scale. This approach is the bedrock
of our strong and enduring community relationships with mutual
trust and respect. It has significantly contributed to growth in our
business, setting the Company apart from other mining and metals
corporations.
A comprehensive range of themes with multiple initiatives aligned
to globally accepted guidelines, including the UN SDGs, go well
beyond the CSR mandate in the Companies Act, 2013. They cater to
the most vulnerable sections among communities, addressing the
challenges of today and building lasting solutions for the future.
Focussed projects in health, drinking water, sanitation, education,
livelihoods and infrastructure meet community needs. Sports and
youth empowerment initiatives engage them meaningfully. Our
‘Tribal Identity’ theme is an emerging signature theme unique
among corporates. It includes sustained efforts to preserve and
promote aspects of heritage (language, culture, art forms and sports),
ground-breaking efforts such as Samvaad and the Tribal Leadership
Programme, which provide platforms for expression of and debate
on tribal issues across India.
81
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 SOCIAL AND RELATIONSHIP CAPITAL (Continued)
Our CSR strategy
Tata Steel’s CSR strategy looks at establishing replicable change models which impact core development gaps
across India (Signature Programmes) and enhance thematic development focus on communities in operating areas
(Proximate Community Development). In addition, TSL continues to strengthen its CSR governance and consolidate
its leadership position by intensifying deployment of its key initiatives through the Tata Steel Foundation.
Initiatives for health, drinking water and sanitation
Impact
Maternal and New Born Survival Initiative
(MANSI)
Infant mortality reduced in 12 blocks of
Odisha and Jharkhand
MANSI focusses on working with pregnant women,
mothers and children on the issue of infant mortality
through partnerships with the government, and
national and international NGOs.
A real-time digital tracking system was
launched to provide vital support to
Sahiyas and ASHAs to respond to high-
risk cases
Almost 1,855 high risk child and mother
cases identified
~44% reduction in death rate achieved
Regional Initiative for Safe Sexual Health by Today’s
Adolescents (RISHTA)
RISHTA focusses on working with the adolescents to educate them on
the importance of nutrition and their rights while imparting life skills
training.
The RISHTA Android application enables detailed profiling and tracking
of each adolescent over the project period, leading to focussed health
inerventions and linkage to government programmes.
Reached out to
15,000+
adolescents
990+
Peer educators developed
from adolescent population
Outreach clinical healthcare services
We invest in Mobile Medical Units (MMUs), health camps, cataract
screenings, surgeries and provision of eye glasses.
Mobile Eye Surgical Units (MESU) - a Sankara Nethralaya – IIT Chennai
collaboration–takes world-class cataract surgical care to remote
locations in Jharkhand through a fully equipped mobile operating
theatre.
3,800+
Cataract cases operated
2,400+
surgeries conducted by
MESU
HIV-AIDS and leprosy
We are working with the LEPRA Society to spread awareness, and
provide treatment and rehabilitation to leprosy patients. We invest in
truckers intervention to raise awareness about HIV-AIDS.
Drinking water
We install and repair drinking water facilities such as hand tube wells
and deep bore wells, and piped drinking water, and are working on
solar-powered drinking water projects.
The Springs initiative was an experiment conducted to prevent
contamination of natural perennial springs. It enabled availability of
clean water to five villages throughout the year.
~ 1,905
leprosy cases availed
awareness, treatment
and rehabilitation, which
included 31 surgeries
1.2 lakh +
beneficiaries impacted
through installation of
these facilities
82
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Initiatives for Education
Thousand Schools project
Thousand Schools project is working on the
deployment of the Right to Education Act
by enabling access for children to school,
improving teaching and learning levels
and improving school governance through
School Management Committees.
Learning Beyond School is a fully community
managed education resource centre that
enables children to learn beyond school
hours and become familiar with digital
technology.
Residential camp schools
We conduct residential camp schools (Masti
Ki Pathshala) for children who are either
dropouts or from vulnerable backgrounds
engaged in child labour.
Our Saving Lost Childhood programme aims
to reduce child labour in Jamshedpur.
Scholarships
We offer Tata Steel Scholars Programme
and Jyoti scholarships that provide financial
assistance to meritorious SC/ST students for
post-graduate professional courses. Jyoti
fellowship is also offered to SC/ST students
from Class VII to post-graduation.
Child education for Particularly
Vulnerable Tribal Groups (PVTG)
We work with the PVTG communities to
provide them access to good education
facilities.
Impact
1,170
schools reached out in Odisha and 248 in
Jharkhand
1,50,000+
students covered in Odisha and Jharkhand
1,600+
habitations have become Child Labour Free
Zones, out of the total 2,239 being addressed in
Odisha since the inception of the project
3
new Masti ki Pathshalas created in FY 2018-19 in
Jamshedpur – total 4 schools catering to 50 girls
and 260 boys
Almost 40 boys were mainstreamed to CBSE-
based formal schools in FY 2018-19 from the first
Masti Ki Pathshala
Pipla school in Jamshedpur now caters to around
100 girls from nearby areas who require bridging
and mainstreaming to formal schools
90+
students received scholarships under Tata Steel
Scholars Programme for Jharkhand and Odisha
3,300+
students received scholarships under Jyoti
Fellowship in Jharkhand and Odisha
7
Tata Steel Scholars received pre-placement
offers from Tata Steel in FY 2018-19
About 260 students enrolled in 7 residential
English-medium schools in FY 2018-19, most
of them first generation learners from PVTG
families
83
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 SOCIAL AND RELATIONSHIP CAPITAL (Continued)
Initiatives for Livelihood
Technical education institutes
We develop technical education institutes to improve employability
of the youth in the community through professional skilling courses.
Ek Pahal is a skilling initiative to constructively engage prison inmates
by imparting in-house training to enable them to secure gainful
employment, both within and outside the jail.
Digital skills for rural children are imparted through a classroom-
on-wheels called ‘Kaushalyan’ using an air-conditioned bus with
workstations, an LED TV display as well as a trained computer faculty.
The nursing programme aimed at addressing the issues of poverty,
unemployment and mass migration through nursing training.
Women Self-help Groups (SHGs)
We have created women SHGs in our communities to
impart skills and empower them to run an enterprise.
Improve agricultural productivity
We boost farmers’ income through improved agricultural
productivity by investing in improved irrigation facilities
for the community, waste land development and other
allied activities
Impact
~4,800
youth enrolled
~2,500
youth trained
~2,000
youth placed/
self-employed
~10,000
women empowered
through SHGs in 95 gram
panchayats
20,000+
farmers benefitted through
agriculture productivity
techniques and allied
activities
~85
ponds constructed/repaired
in Jharkhand and Odisha for
agricultural and domestic
use
84
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR The Development Corridor
A 280 km well-being trail
Impact
The Corridor is the route connecting Tata Steel’s Jamshedpur and Kalinganagar operations.
The project has extensive data on over 3.6 lakh population (>90,000 households) in
71 Gram Panchayats across 5 districts using the Data, Evaluation, Learning, Technology and
Analysis (DELTA) digital microplanning system of the Tata Trusts
Initiatives for youth empowerment
Impacts
Youth empowerment through sports
We empower youth by training them and
providing them access to good sports
facilities and nurturing sporting talent with
career potential
40,000+
youth engaged through
different sports activities
Initiatives for tribal identity
Impact
Connecting tribal communities
We created ‘Samvaad’, a national platform for
discussion among tribal communities
6 regional editions of Samvaad held across India.
1,680 tribals representing 99 tribal communities,
delegates from 27 Indian states and 17 countries
attended the Samvaad 2018 event
Tribal heritage
We work with 12 tribal organisations to revive
and rejuvenate tribal language, literature and
cultural heritage.
Almost 16,480 students of Jharkhand and
Odisha enrolled in 317 language centres
providing instructions in 6 tribal languages
Created ‘Rhythms of the Earth’, a pan-India
tribal musical group comprising 75 members
from 5 states covering 14 tribes
Tribal sports
We also encourage and promote tribal sports
Almost 4,200 tribal youth of Jharkhand and
Odisha were engaged through tribal sports
Tribal Leadership Programme
The residential programme is for individuals from tribal communities
willing to work to bring about a positive change in society.
85
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 SOCIAL AND RELATIONSHIP CAPITAL (Continued)
Jubilee Park, Jamshedpur
Tata Main Hospital, Jamshedpur
Summer Camp, JRD Tata Sports
Complex , Jamshedpur
Quality of life for communities
Jamshedpur - Celebrating 100 years of our legacy township
Jamshedpur is the only million-plus city in India without a municipal
corporation, with Tata Steel providing all amenities, such as power,
water, sewage line, and sanitation facilities resulting in high Quality
of Life (QoL) for its citizens. Tata Steel has progressively met the
challenges posed by the surge in urban growth and increasing
aspirations of a world-class city. With 37.5% green cover, Jamshedpur
scores 101 on the QoL index, which is similar to the best cities in India.
Tata Steel caters to the healthcare requirement of its employees,
their families, and the community around its area of operations.
The medical facilities are extended through a network of Tata Main
Hospital (TMH) located in Jamshedpur – 1,000+ bed tertiary care
hospital supported by 8 TMH clinics spread across the city and raw
material locations such as Jamadoba, Noamundi, Sukinda, West
Bokaro and Joda.
Catering to healthcare of our communities
1.64 million
59,000
21,000
OPD patients
Indoor admissions
Surgeries and procedures
TSK - A new beginning
The wilful relocation and resettlement of 100% of families staying
inside the Tata Steel Kalinganagar (TSK) project area as per the
R&R guidelines of the Government of Odisha was completed in
Financial Year 2018-19. Beyond the R&R guidelines, Tata Steel is
planning to develop model colonies with self-contained facilities
such as portable water supply, water treatment plant, rain water
harvesting, and solid waste management. Water treatment plant
with a capacity of 1 million litres per day has been completed and
made operational since March 14, 2019. For promoting education of
the children of relocated families and the nearby community, Loyola
School, Kalinganagar has been constructed with all standard facilities
to cater to 1,400 students.
A 200-bed facility of Tata Steel-Medica Hospital is operational
and is catering to quality healthcare needs of the people living in
and around Kalinganagar. Multi-specialty health camps are also
being organised to provide specialised healthcare services to
people. An integrated township, with a plan of 1,004 flats are being
constructed. In the first phase, 188 flats, were completed and handed
over in Financial Year 2018-19.
86
Tata Steel Medica Hospital, Kalinganagar, Odisha
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR Sports - A way of life at Tata Steel
Tata Steel engages employees, their families and the community in
sporting activities through its:
• Sports academies (Tata Football Academy, Tata Archery Academy
and Naval Tata Hockey Academy)
• Extension centres run along with Sports Authorities of India
(Athletics and boxing)
• Training centres covering 17 disciplines, including basketball,
badminton, volleyball, table tennis and chess.
Some key highlights of our sports initiatives in FY 2018-19
• Padma Shri laureate, Ms. Bachendri Pal, the first Indian woman
to climb Mt. Everest, was conferred the Padma Bhushan in 2019.
The Tata Steel Adventure Foundation (TSAF) headed by her, has
enabled seven members of the community to scale Mt. Everest.
TSAF has also formed a Climbing Academy.
• Apart from regular runs and half marathons at Jamshedpur,
Kolkata, Bhubaneswar and Noamundi, a run was organised at
Angul (location of Tata Steel BSL) and a run was sponsored at
Indore, both of which were new initiatives.
• The Naval Tata Hockey Academy, which has a world-class
AstroTurf, is focussed on the tribal communities. The team won
the JSA Cup and nine boys were selected to attend the National
Camp for the junior team.
• The Tata Archery Academy has over the last 16 years trained
127 cadets, 45 of whom have represented India. In Financial Year
2018-19, Deepika Kumari from the Academy won the gold medal
at the World Cup Stage 3 at Kolkata and bronze medal in the finals
in Antalya, Turkey. Deepika and Prachi Singh won a gold medal in
the Asia Cup in Taiwan.
Tata Football Academy and Tata Trusts collaborate with
Atlético de Madrid to develop Indian Football
• Established in 1987 to train and nurture budding Indian
footballers, Tata Football Academy (TFA) continues to serve
national level football 141 out of 213 cadets have represented
the country. In Financial Year 2018-19, TFA entered a tie-up with
La Liga Giants Atlético de Madrid.
• Jamshedpur Football Club (JFC) continued its participation in the
ISL and brought together some of India’s top talents, youngsters
and experienced foreign players. JFC continued to have its impact
on the overall ecosystem of football in our areas of operation,
including grassroots football, youth football and women football,
and on improving the infrastructure, training and development.
Tata Steel Training and Feeder Centre sports achievements in FY 2018-19
Level
District
State
Zonal
National
International
Total
Participation
Gold
Silver
Bronze
Total
247
414
69
182
6
918
57
202
42
14
3
318
28
131
22
16
1
198
34
116
16
18
3
187
119
449
80
48
7
703
87
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Awards and recognitions
We are a leading corporate in the Indian and global steel industry. We
continue to be recognised for our operational excellence, as well as,
environmental and social stewardship.
PM’s Trophy for the Best Performing
Integrated Steel Plant for 2016-17
Steel Sustainability Champions 2018
recognition by World Steel Association
‘Global Steel Industry Leader’ in the
Dow Jones Sustainability Index (DJSI)
2018
Tata Pravesh Doors, Tata Pipes &
Tata Structura have been certified as
green products through ‘GreenPro’
certification by the Confederation of
Indian Industry (CII).
(First steel products in India to get this
eco-label)
Awarded the Authorised Economic
Operator (AEO) Status (Tier 2) in
March 2019 by The Directorate of
International Customs (Ministry of
Finance)
88
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR 90-194
STATUTORY REPORTS
90
109
112
126
129
148
152
161
163
166
188
189
Board’s Report
Annexure 1 - Dividend Distribution Policy
Annexure 2 - Management Discussion Analysis
Annexure 3 - Annual Report on CSR Activities
Annexure 4 - Corporate Governance Report
Annexure 5 - Particulars of Remuneration
Annexure 6 - Financial Information of
Subsidiary Companies
Annexure 7 - Information on Subsidiaries or
Associates (including Joint Ventures)
Annexure 8 - Secretarial Audit Report
Annexure 9 - Extract of Annual Return
Annexure 10 - Particulars of Loans,
Guarantees or Investments
Annexure 11 - Particulars of Energy Conservation,
Technology Absorption and Foreign
Exchange Earnings and Outgo
195-418
FINANCIAL STATEMENTS
195
199
293
419
Highlights
Standalone
Consolidated
NOTICE
Board’s Report
To the Members,
Your Directors take pleasure in presenting the 4th Integrated Report (prepared as per the framework set forth by the International Integrated
Reporting Council) and the 112th Annual Accounts on the business and operations of your Company, along with the summary of standalone
and consolidated financial statements for the year ended March 31, 2019.
A. Financial Results
Particulars
Revenue from operations
Total expenditure before finance cost, depreciation (net of
expenditure transferred to capital)
Operating Profit
Add: Other income
Profit before finance cost, depreciation, exceptional
items and taxes
Less: Finance costs
Profit before depreciation, exceptional items and taxes
Less: Depreciation and amortisation expenses
Profit/(Loss) before share of profit/(loss) of joint ventures &
associates, exceptional items & tax
Share of profit/(loss) of Joint Ventures & Associates
Profit/(Loss) before exceptional items & tax
Add/(Less): Exceptional Items
Profit before taxes
Less: Tax Expense
(A) Profit/(Loss) after taxes - from Continuing operations
Profit/(loss) before tax from Discontinued operations
Less: Tax expense of Discontinued Operations
Profit/(Loss) after tax from Discontinued Operations
Profit/(Loss) on Disposal of Discontinued Operations
(B) Net Profit/(loss) after tax - from Discontinued operations
(C) Net Profit/(Loss) for the Period [ A + B ]
Total Profit/(Loss) for the period attributable to:
Owners of the Company
Non-controlling interests
(D) Total other comprehensive income
(E) Total comprehensive income for the period [ C + D ]
Retained Earnings: Balance brought forward from
the previous year
Add: Profit for the period
Less: Distribution on Hybrid perpetual securities
Add: Tax effect on distribution of Hybrid perpetual securities
Add: Other Comprehensive Income recognised in
Retained Earnings
Add: Other movements within equity
Balance
Which the Directors have apportioned as under to:
(i) Dividend on Ordinary Shares
(ii) Tax on dividends
Total Appropriations
Retained Earnings: Balance to be carried forward
90
Standalone
Consolidated
(` crore)
2018-19
70,610.92
50,047.98
20,562.94
2,405.08
22,968.02
2,823.58
20,144.44
3,802.96
16,341.48
-
16,341.48
(114.23)
16,227.25
5,694.06
10,533.19
-
-
-
-
-
10,533.19
-
-
(50.22)
10,482.97
18,700.25
10,533.19
266.12
92.99
3.88
1.49
29,065.68
1,145.92
224.86
1,370.78
27,694.90
2017-18
60,519.37
44,740.41
15,778.96
763.66
16,542.62
2,810.62
13,732.00
3,727.46
10,004.54
-
10,004.54
(3,366.29)
6,638.25
2,468.70
4,169.55
-
-
-
-
-
4,169.55
-
-
(61.12)
4,108.43
12,280.91
4,169.55
266.13
92.70
155.39
3,427.46
19,859.88
971.22
188.41
1,159.63
18,700.25
2018-19
1,57,668.99
2017-18
1,24,109.69
1,28,285.65
1,02,676.50
29,383.34
1,420.58
30,803.92
7660.10
23,143.82
7,341.83
15,801.99
224.70
16,026.69
(120.97)
15,905.72
6,718.43
9,187.29
(98.60)
(9.64)
(88.96)
-
(88.96)
9,098.33
10,218.33
(1,120.00)
7.79
9,106.12
7,801.99
10,218.33
266.12
92.99
21,433.19
881.10
22,314.29
5,454.74
16,859.55
5,741.70
11,117.85
239.12
11,356.97
9,599.12
20,956.09
3,392.33
17,563.76
206.96
13.06
193.90
5.15
199.05
17,762.81
13,434.33
4,328.48
(3,078.01)
14,684.80
(11,447.01)
13,434.33
266.13
92.70
(425.92)
(2,780.05)
(1,995.47)
15,425.80
1,144.76
224.61
1,369.37
14,056.43
9,926.37
8,960.21
970.05
188.17
1,158.22
7,801.99
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT
Notes:
(1)
On January 28, 2019, T S Global Holdings Pte. Ltd. (‘TSGH’) (an indirect
wholly-owned subsidiary of
the Company) executed definitive
agreements to divest its entire equity stake in NatSteel Holdings Pte. Ltd.
(‘NSH’) and Tata Steel (Thailand) Public Company Ltd (‘TSTH’). As per the
agreements, the divestment will be made to a company, to be formed,
in which 70% equity shares will be held by an entity controlled by HBIS
Group Co. Ltd. and 30% will be held by TSGH.
The assets and liabilities of NSH and TSTH have been classified as ‘held
for sale’ as on March 31, 2019 and have been presented separately in
the Consolidated Balance Sheet. The results for the current period of
NSH and TSTH have been disclosed within discontinued operations and
results for the previous periods have been restated accordingly.
(2)
During the year under review, exceptional items (Consolidated Accounts)
primarily represents:
a)
Provision for demands and claims amounting to `329 crore
relating to certain statutory demands and claims on environment
and mining matters at Tata Steel Limited (Standalone).
Provision of `172 crore in respect of advances with public bodies
paid under protest by Tata Steel BSL Limited.
Provision for Employee Separation Scheme (‘ESS’) under Sunehere
Bhavishya Ki Yojana (‘SBKY’) scheme amounting to `35 crore at
Tata Steel Limited (Standalone).
Impairment charges of `10 crore in respect of property, plant
and equipment (including capital work-in-progress and capital
advances) and intangible asset at Tata Steel BSL Limited.
b)
c)
d)
Partly offset by:
e)
f )
Profit on sale of non-current investments amounting to `180 crore,
primarily in TRL Krosaki Refractories Limited (an associate of the
Company) and certain other subsidiaries and joint ventures.
Restructuring and write back of provisions amounting to `245
crore which primarily includes write-back of liabilities no longer
required at Tata Steel BSL Limited and arbitration settlement at
Jamshedpur Utilities & Services Company Limited, partly offset by
charge at Tata Steel Europe.
The exceptional items (Consolidated Accounts) in Financial Year 2017-18
primarily include:
a)
Gains arising out of modification in benefit structure for members
of the new pension scheme (‘NBSPS’) versus their benefits under
Tata Steel Europe’s British Steel Pension Scheme (‘BSPS’), offset by
settlement charges for those members who did not join the NBSPS
and one-off costs at Tata Steel Europe amounting to `13,851 crore.
Partly offset by:
b)
Provision of `3,214 crore in respect of certain statutory demands
and claims relating to environment and mining matters, net of
liability written back towards District Mineral Fund at Tata Steel
Limited (Standalone).
Provision for advances paid for repurchase of equity shares in Tata
Teleservices Ltd. from NTT DoCoMo Inc. amounting to `27 crore at
Tata Steel Limited (Standalone).
Provision for Employee Separation Scheme (‘ESS’) under Sunehere
Bhavishya Ki Yojana (‘SBKY’) Scheme `108 crore mainly at Tata
Steel Limited (Standalone) and at Jamshedpur Utilities & Services
Company Limited.
Impairment charges `903 crore in respect of Property, Plant and
Equipment (including capital work-in-progress) and intangible
assets relating to Global Mineral entities.
c)
d)
e)
1. Dividend Distribution Policy
In terms of Regulation 43A of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended (‘Listing Regulations’) the Board of Directors of
the Company (‘the Board’) formulated and adopted the Dividend
Distribution Policy (‘the Policy’). As per the Policy, the Company,
after considering various external factors that may have an impact on
the business as well as internal factors such as the long-term growth
strategy of the Company and the liquidity position including working
capital requirements and debt servicing obligations, will endeavour
to pay dividend up to 50% of profit after tax of the Company, subject
to the applicable rules and regulations.
The Policy is annexed to this report (Annexure 1) and is also available
on our website www.tatasteel.com
2. Dividend
The Board recommended a dividend of `13 per fully paid Ordinary
Share on 112,64,89,680 Ordinary Shares of face value `10 each,
for the year ended March 31, 2019. (Dividend for Financial Year
2017-18: `10 per fully paid Ordinary Share on 112,64,84,815 fully
paid Ordinary Shares of face value `10 each).
The Board also recommended a dividend of `3.25 per partly paid
Ordinary Share on 7,76,36,705 partly paid Ordinary Shares of
face value `10 each (paid up `2.504 per share) for the year ended
March 31, 2019. [Dividend for Financial Year 2017-18: `2.504 per
partly paid Ordinary Share on 7,76,34,625 partly paid Ordinary
Shares of face value `10 each (paid-up `2.504 per share)]. The Board
recommended dividend based on the parameters laid down in the
Dividend Distribution Policy.
The dividend on Ordinary Shares (fully paid as well as partly paid) is
subject to the approval of the Shareholders at the Annual General
Meeting (‘AGM’) scheduled to be held on Friday, July 19, 2019.
The dividend once approved by the Shareholders will be paid on and
from Tuesday, July 23, 2019. If approved, the dividend would result in
a cash outflow of `1,795.87 crore inclusive of dividend distribution
tax of `306.21 crore. The dividend on Ordinary Shares (fully paid
as well as partly paid) is 130% of the paid-up value of each share.
The total dividend pay-out works out to 17% (Previous Year: 33%) of
the net profit for the standalone results.
The Register of Members and Share Transfer Books of the Company
(for fully paid as well as partly paid shares) will remain closed from
Saturday, July 6, 2019 to Friday, July 19, 2019 (both days inclusive) for
the purpose of payment of the dividend for the Financial Year ended
March 31, 2019 and the AGM.
3. Transfer to Reserves
The Board of Directors has decided to retain the entire amount of
profit for Financial Year 2018-19 in the statement of profit and loss.
91
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
4. Capex and Liquidity
During the year under review, the Company, on a consolidated
basis spent `9,091 crore on capital projects across India, Europe
and Canada largely towards essential sustenance, replacement and
on-growth projects in India (Kalinganagar plant and Tata Steel BSL
Limited), and in the Netherlands. Despite this significant spend, the
Company was able to keep the gross debt level stable during the year.
The Company’s liquidity position remains strong at `15,284 crore
as on March 31, 2019, comprising `5,937 crore in cash and cash
equivalent and `9,347 crore in undrawn bank lines.
5. Management Discussion and Analysis
The Management Discussion and Analysis as required in terms
of the Listing Regulations is annexed to the report (Annexure 2)
and is incorporated herein by reference and forms an integral part
of this report.
B. Integrated Report
In keeping with the Company’s commitment to society, in 2016,
we transitioned from compliance based reporting to governance
based reporting by adopting the framework developed by the
International Integrated Reporting Council.
We present to you our 4th Integrated Report which highlights the
Company’s efforts during the year that contribute to long-term
sustainability and value creation, paving way for a better tomorrow.
C. External Environment
1. Macroeconomic Conditions
Following an upswing in the last two years, global growth declined
to 3.6% in 2018, owing to various factors such as increase in trade
tensions and tariff hikes between the United States and China,
decline in business confidence, tightening of financial conditions,
and higher policy uncertainty across many economies. While the
first half of 2018 witnessed strong growth at 3.8%, the second half
saw a deceleration in global economic activity, in light of the various
factors affecting major economies.
Growth in China was at 6.6%, its slowest pace since 1990, due
to necessary domestic regulatory tightening, slower domestic
investment, and tariff hikes and trade tensions with the United
States. The United States witnessed a growth of 2.9%, the highest
since 2015, with major contribution coming from personal spending,
fixed investment, public expenditure and inventories. Growth in the
Euro area economy slowed to 1.8% in 2018, owing to weakening
consumer and business sentiments, disruptions in car production
in Germany due to delay in introduction of new fuel emission
standards, fiscal policy uncertainty, elevated sovereign spreads, and
declining investment in Italy, and drop in external demand, especially
from emerging Asia. Growing concerns about a no-deal Brexit also
probably weighed on investment spending within the euro area.
Activity in Japan weakened mainly due to natural disasters.
Growth in India was 7.1%, primarily due to growth in construction
sector (8.9%) and manufacturing sector (8.1%). The Gross fixed
capital formation is estimated to have increased by 10%, thereby
contributing to 32.3% of GDP.
Overall, increasing trade tensions took a toll on business confidence,
worsening financial market sentiments. Also, tightening financial
conditions for vulnerable emerging markets in early 2018 and for
advanced economies later in the year showed its impact on global
demand, leading to a slowdown in global economic growth.
2. Economic Outlook
According to the International Monetary Fund (‘IMF’), global
economic growth is expected to further decline to 3.3% in 2019 but
return to 3.6% in 2020. While the slow paced growth in the second
half of 2018 is likely to continue in the first half of 2019, growth in
the second half of 2019 is expected to gain momentum, owing to
an ongoing build-up of policy stimulus in China, improvements in
global financial market sentiment, waning of some temporary drags
on growth in the euro area, and a gradual stabilisation of conditions
in stressed emerging market economies. Improved momentum
for emerging market and developing economies is projected to
continue into 2020, primarily reflecting developments in economies
currently experiencing macroeconomic distress.
Growth in advanced economies is expected to slow down from
2.2% in 2018 to 1.8% in 2019 to 1.7% in 2020. The United States is
expected to grow at a slower pace of 2.3% in 2019, down to a further
1.9% in 2020 as the impact of the fiscal stimulus fades. Growth in the
Euro area is expected to decline to 1.3% in 2019 as the effect of the
weakness in 2018 is likely to carry forward to the first half of 2019.
China’s economic growth is expected to be at 6.3% in 2019 due to
lingering impact of trade tensions with the US.
The Indian economy is expected to grow at about 7.3% in 2019
and further by 7.5% in 2020, supported by the continued recovery
of investment and robust consumption amid a more expansionary
stance of monetary policy and some expected impetus from fiscal
policy. Resolution of Non-Performing Assets (‘NPA’) and other
recoveries over the past year have been efficacious. Large NPA
accounts should continue to see resolution in 2019. The projected
increase in growth rate can also be attributed to sustained rise in
consumption, gradual revival in investments, and greater focus on
infrastructure development.
D. Steel Industry
1. Global Steel Industry
According to the World Steel Association (‘WSA’), global crude steel
production reached 1,808.6 MnT in 2018, an increase of 4.6% over
2017. This increase is primarily due to growth in steel consumption
in
infrastructure, automotive, manufacturing and equipment
sectors. China continued to be the world’s largest crude steel
producer, contributing to 51.3% of the global crude steel production.
Crude steel production in India, increased to 106.5 MnT. India’s crude
92
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT steel production increased by 4.9% over the previous year, making
India the second largest crude steel producing country.
Despite slowdown in the economy, global steel demand increased by
2.1% in 2018. The marginal increase over 2017 was mainly supported
by government stimulus in China and better than expected economic
activity. However, steel demand in developed economies slowed to
1.8% in 2018 as compared to 3.1% in 2017.
Steel demand in the European Union (‘EU’) grew by 2.2% in 2018 as
against 3.4% in 2017. Output growth in the steel consuming sectors in
the EU eased in the second half of 2018, especially in the automotive
sector. Output of passenger cars was negatively impacted by the
introduction of new emission testing procedures and a slowdown in
demand both inside and outside the EU. In 2018 the EU was a net
importer of steel at 16.9 MnT. Exports from China to the rest of the
world decreased again in 2018 to 68.8 MnT. Changing trade flows
in the global steel market have caused an increase in the amount of
anti-dumping measures.
2. Outlook for Steel Industry
is
As per WSA, global steel demand
forecasted to reach
1,735 MnT in 2019, an increase of 1.3% over 2018. In 2020, global
steel demand is expected to reach 1,752 MnT, reflecting an increase
of 1%. Although steel demand is expected to grow, the rate of growth
will be lower owing to slowdown in global economy. Further, China’s
deceleration, uncertainty surrounding trade policies and the political
situation in many regions suggest a possible moderation in business
confidence and investment.
China plans for a major structural overhaul of the steel sector by
2020. Further, it plans to reduce the steel output which would ease
the uneven supply-demand situation in the sector, modernise the
steel mills to achieve energy consumption and pollutant emissions
within the nation standard by 2020. Steel demand in developing Asia
excluding China is expected to grow by 6.5% and 6.4% in 2019 and
2020 respectively, making it the fastest growing region in the global
steel industry. In the ASEAN region, infrastructure development is
expected to support demand for steel. Steel demand in advanced
economies is expected to grow at a slower pace owing to trade
tensions and lower spend on construction activities.
Steel demand in India is expected to grow at 7% in 2019 as well
as in 2020. Steel demand in India will be driven by broad based
growth across sectors. Construction is expected to grow boosted
by government spending on infrastructure. The automotive sector
is expected to grow at about 7.5% in 2019 which is lower than
that of 2018 as sales slowed towards the end of 2018 and early
2019. Policy to support real estate sector will lead to stronger
growth in 2019. Recovery in the capital goods sector witnessed
in 2018 is expected to sustain in 2019. The sector is expected to
grow above 7% aided by increasing demand for construction and
earthmoving equipment.
Industry consolidation through the Insolvency and Bankruptcy Code,
2016, is expected to lead to improved discipline in the marketplace
and stable pricing. Change of ownership will also lead to improved
capacity utilisation levels over the next 1-2 years.
E. Operations and Performance
1. Tata Steel Group
During the year under review, Tata Steel Group (‘the Group’)
recorded total deliveries of 26.80 MnT (previous year: 22.89 MnT).
Increase in deliveries was due to acquisition of Bhushan Steel Limited
[renamed Tata Steel BSL Limited (‘TSBSL’)] along with higher volumes
from Tata Steel Kalinganagar. The turnover for the Group was at
`1,57,669 crore (previous year: `1,24,110 crore), an increase of 27%
over the previous year. This increase is primarily attributable to
increase in deliveries and realisations from domestic operations and
increase in realisations at Tata Steel Europe.
The Group EBITDA was `29,770 crore (previous year: `21,369 crore),
an increase of 39% over the previous year. EBITDA increased mainly at
Tata Steel Limited (Standalone) on account of improved steel margins
attributable to higher volumes, higher realisations and acquisition
of TSBSL. Increase in EBITDA at Tata Steel Europe is attributable to
better than expected market conditions with higher selling prices in
the European market.
tax
after
During the year under review, the Group reported a consolidated
profit
(including discontinued operations) of
`9,098 crore (previous year: `17,763 crore) which translated into a
basic Earning per share of `87.75. Profits were lower than previous
year as previous year’s profit included an exceptional gain of
`9,599 crore primarily due to non-cash accounting surplus arising
from the formation of new British Steel Pension Scheme, as against a
charge of `121 crore during the current year.
2. India
During the year under review, total deliveries at Tata Steel Limited
(Standalone) were at 12.69 MnT (previous year: 12.15 MnT), recording
an increase of 4.5% over the previous year. Turnover was `70,611
crore (previous year: `60,519 crore), 16.7% higher than that of the
previous year. EBITDA from Tata Steel Limited (Standalone) was
`20,744 crore (previous year: `15,800 crore), 31% higher than that of
the previous year.
During the year under review, crude steel production in India
(including TSBSL) increased by 35% to 16.81 MnT. Total deliveries
at Tata Steel India were at 16.26 MnT, recording an increase of 34%
over the previous year due to the acquisition of TSBSL and a ramp
up at both Kalinganagar and TSBSL. Volumes from Indian operations
account for more than 61% of the consolidated volumes.
turnover
(excluding
and
The
adjustments)
(including TSBSL) was
`88,987 crore, 47% higher than that of previous year. This was mainly
due to higher steel realisation and volumes.
inter-company eliminations
Indian operations
from
Indian operations including TSBSL reported EBITDA (excluding
inter-company eliminations and adjustments) for the year was
`23,777 crore, which has been highest ever in history. This has been
achieved by strong operating and commercial performance.
Company’s leadership position in chosen segments has been
growing continuously and industrial products and project segments
93
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 sales grew by 42% year-on-year. The branded products retails and
solutions business grew by 30% year-on-year, the automotive
segment sales increased by 21% year-on-year, and the automotive
steel sales volume crossed 2.25 million mark in Financial Year 2018-19.
The Company is striving for a sustainable business model and has
undertaken a number of initiatives that will reduce its carbon
footprint across the value chain. The CO2 emission intensity at
Jamshedpur plant improved to 2.28 tonnes of carbon per ton of steel
in Financial Year 2018-19. The solid waste utilisation was in excess of
99%. Tata Steel Kalinganagar Phase - II expansion is progressing as
per plan and is scheduled for completion in Financial Year 2021-22.
3. Europe
During the year under review, production at European operations
was lower by 381k tonnes (4%) on account of operational issues at
both the sites, mainly due to overrun of BF5 life extension works in
the UK Pellet plant overhaul issues and fire at caster 22 in IJmuiden.
Deliveries declined by 350k tonnes (4%) in line with lower production.
The turnover increased from `59,985 crore in previous year to
`64,777 crore during the year owing to increase in average revenue
per tonne due to improved market conditions. EBITDA increased
by `1,701 crore (46%) attributable to better than expected market
conditions with higher selling prices in the European market.
The European Operations reported loss before tax as compared
to profit reported in the previous year which included gain of
`13,851crore relating to non-cash accounting surplus arising from
the formation of new British Steel Pension Scheme.
F. Strategy
The year under review has been quite rewarding for the Company in
terms of meeting profitability targets, preparing for the future and
witnessing progress on initiatives commenced in the previous years.
The acquisition of Bhushan Steel Limited (renamed Tata Steel BSL
Limited) has enhanced the overall capacity of the Company by 5 MnT,
thereby providing the structurally strong Indian business operations the
required scale. The Company has further growth plans including growth
of its long products business. During the year, the Company also entered
into definitive agreements to divest majority stake in its South-East Asian
operations in order to focus resources on growth in India.
The Company has also taken steps to establish a sustainable
leadership position through simplification of the organisation and
building scale in capabilities and new businesses. As part of its
strategy, various teams have been set up to achieve certain goals for
the organisation. These teams include: (i) an integrated technology
team, to achieve the goal of being amongst the top 5 in steel
technology globally; (ii) a One IT team to achieve the goal of value
creation through digital transformation by investing in the required
infrastructure and partnerships; and (iii) an integrated supply chain
team to enable multi-locational growth and greater efficiency. In the
Services & Solutions portfolio, ‘Pravesh’ (steel doors and windows) is
making progress towards achieving the required scale.
94
The Graphene and Fibre Reinforced Polymer businesses have
also established required enablers to scale up. The Steel Recycling
Business is setting up the required business model and capabilities.
Going forward, the Company aspires to further strengthen its
leadership position in the industry and is pursuing the following
priorities in the medium term:
Industry leadership in Steel: In the near future, India, given its
proposed infrastructure projects, is expected to be one of the
largest consumers of steel and stimulators of steel demand. In order
to meet this increasing demand, the Company has in place, plans
to consistently grow through brownfield expansions as well as
value creating acquisitions. In order to attain leadership position
in the steel industry, key priority for the Company is to progress
on implementation of TSK Phase - II. The Company is also working
towards creating a larger long products portfolio to participate
in the growing market for long products, driven by increase in
infrastructure development. To achieve this
urbanisation and
objective, integration of the steel business of Usha Martin Limited
and a roadmap for growth in Long Products will be the areas of
focus for the future. The Company also aspires to attain leadership
position in new segments viz. Lifting and Excavation, Oil and Gas,
Pre-Engineered Buildings, etc. and to maintain leadership position in
segments such as Automotive, Emerging Corporate Accounts (Small
and Medium Enterprises), Individual House Builders, etc.
Consolidate position as global cost leader: The Company has
consistently been one of the most profitable and lowest cost
producers of steel in the world. Cost of captive iron ore and coal
represents almost 50% of the operational cost base of the Company.
Structural cost reduction projects in areas of operational efficiency,
efficiency
employee productivity,
enhancement, etc. are being undertaken to consolidate and to
maintain the Company’s position as a cost leader. Realisation of the
planned synergy benefits with Tata Steel BSL Limited is also a top
priority in this area.
logistics, digital-enabled
Insulate revenues from steel cyclicality: The steel industry is
cyclical in nature. In order to insulate itself from this cyclicality, the
Company is focusing on strengthening the branded consumer
business and downstream product portfolio. Tata Steel has embarked
on Services & Solutions (‘S&S’) business to reduce the impact of steel
cyclicality. Pravesh and Nest In are examples of our offering in S&S.
These businesses are seeing significant growth. Leveraging our deep
knowledge of customer needs and ability to execute insight-driven
innovation, we believe that this portfolio will provide us with
significant competitive advantage in future. We are planning for
strong growth in S&S and these businesses can contribute 20% of
our revenue going forward.
Tata Steel is also scaling up a portfolio of new materials, currently
comprising of Graphene and Fibre Reinforced Polymer. These new
businesses have exciting possibilities and we will use technology
to create differentiating value propositions and new applications.
S&S and new materials businesses will provide added impetus to our
differentiated play and provide a unique growth opportunity.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT Industry leader in Corporate Social Responsibility and Safety,
Health and Environment: As one of the leading steel producers in
the world, the Company aspires to be a leader in sustainable business
practices in the industry. Towards this objective, the Company is
taking steps to reduce its environment footprint. Focusing on steel
scrap recycling business to promote sustainable steel making and
to create a circular economy for steel is one of the key elements
of our business model for growth in Long Products. The Company
also recognises the need to create a safe and healthy environment
for all employees and stakeholders and desires to be an industry
leader in Corporate Social Responsibility (‘CSR’) and Safety, Health &
Environment (‘SHE’). This will be achieved through enhanced focus
on reducing unsafe incidents at the workplace, carbon emissions and
consumption of natural resources such as water. The Company will
continue to deepen the engagement with communities, aiming to
touch many more lives through its CSR initiatives.
Strategic enablers: Creation of a set of core capabilities in the
organisation is essential for the Company to achieve its Strategic
Objectives. People are the key to success for any organisation and
hence, the Company continues to direct its efforts towards building
a skilled, engaged and diverse workforce. Along with this, the
Company is also focussed on creating the right organisation culture
that encourages agility and innovation. The Company is also focussed
on investing in various digital initiatives, enabling new business
models and enhancing the digital maturity of the organisation.
During the year under review, initiatives were taken to put in place
an innovation framework. In the coming year, the focus will be to
put in place a structure and engagement mechanism for partnering
with startups. The Integrated Technology Organisation will focus on
creating outcome-based external collaborations and developing
deep expertise in identified strategic thrust areas.
G. Key Developments
Acquisitions and Investments
Acquisition of Bhushan Steel Limited (renamed Tata Steel BSL
Limited)
During the year under review, the Company through its wholly-owned
subsidiary, Bamnipal Steel Limited (‘BNPL’) completed the acquisition
of controlling stake of 72.65% in Bhushan Steel Limited (renamed Tata
Steel BSL Limited) (‘TSBSL’), pursuant to the Resolution Plan (‘RP’) as
approved by the National Company Law Tribunal vide its Order dated
May 15, 2018, under Corporate Insolvency and Resolution Process
(‘CIRP’) of the Insolvency and Bankruptcy Code, 2016 (‘IBC’).
In March 2019, the Company acquired 1070,00,00,000 – 11.09%
Non-Convertible Redeemable Preference Shares of face value
`10 each, aggregating to `10,700 crore, in two tranches and
900,00,00,000 – 8.89% Optionally Convertible Redeemable
Preference Shares of face value `10 each, aggregating to `9,000
crore, in two tranches, of TSBSL.
Further, on April 25, 2019, the Board of Directors of the Company
approved the amalgamation of BNPL and TSBSL into and with the
Company by way of a composite scheme of amalgamation and have
recommended a merger ratio of 1 equity share of `10 each fully paid
up of the Company for every 15 equity shares of `2 each fully paid up
held by the public shareholders of TSBSL.
As part of the scheme, the equity shares held by BNPL and the
preference shares held by the Company in TSBSL shall stand
cancelled. The equity shares held by the Company in BNPL shall also
stand cancelled. The amalgamation is subject to shareholders and
other regulatory approvals.
Acquisition of Creative Port Development Private Limited
In January 2017, the Company entered into definitive agreement
to acquire 51% equity stake in Creative Port Development Private
Limited (‘CPDPL’) for the development of Subarnarekha Port at
Odisha through a wholly-owned subsidiary Subarnarekha Port
Private Limited. On September 18, 2018, the Company completed
in CPDPL, a proposed
the acquisition of 51% equity stake
greenfield port project.
Acquisition of Steel Business of Usha Martin Limited
On September 22, 2018, the Company, as a part of its strategy to grow
in long products, executed definitive agreements for acquisition of
steel business of Usha Martin Limited (‘UML’), a special steel and wire
rope manufacturer, through a slump sale on a going concern basis.
Tata Sponge Iron Limited (‘TSIL’), a 54.5% subsidiary company
engaged in the sponge iron business, had been evaluating various
strategic options to enhance its product portfolio and had identified
an entry into steel manufacturing in long products as a route to
ensure sustainable value creation for its shareholders.
On October 24, 2018, the Company extended support for TSIL’s
entry into steel business and identified it as the strategic vehicle for
acquisition of steel business of UML.
On April 9, 2019, TSIL completed the acquisition of steel business
undertaking including captive power plants, for a cash consideration
of `4,094 crore, which is subject to further hold backs of `640 crore,
pending transfer of some of the assets including mines and certain
land parcels.
Investment in TRF Limited
In March 2019, the Company acquired 25,00,00,000, 12.5%
Non-Convertible Redeemable Preference
face
value `10 each of TRF Limited on private placement basis,
aggregating to `250 crore.
Shares of
Investment in Tata Metaliks Limited
In March 2019, the Company acquired 27,97,000 equity shares of
face value `10 each of Tata Metaliks Limited at a price of `642 per
equity share aggregating to `179.57 crore and 34,92,500 Warrants
of face value `10 each at a price of `642 per Warrant, with a right
exercisable by the Company to subscribe for one equity share per
Warrant of face value of `10 each, aggregating to `224.22 crore (25%
paid on application).
95
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Divestments
Issue of Securities
Divestment of stake in Black Ginger 461 Pty. Ltd.
Issue of Debt Securities
On October 18, 2018, T S Global Minerals Holdings Pte. Ltd. entered
into an agreement with IMR Asia Holding Pte Ltd, a group company
of IMR Metallurgical Resources AG, a global metals and mining
group headquartered in Switzerland, to divest its entire stake
in its wholly-owned step down subsidiary Black Ginger 461 Pty.
Ltd. which in turn holds 64% in Sedibeng Iron ore Pty Ltd, South
Africa, the operating company. The divestment was completed on
February 18, 2019.
On March 1, 2019, the Company allotted 43,150 - 9.8359% Unsecured
Redeemable, Rated, Listed, Non-Convertible Debentures (‘NCDs’)
having face value `10 lakh each for an amount aggregating to
`4,315 crore, to identified investors on private placement basis.
The NCDs are listed on the WDM segment of BSE Limited. The NCDs
mature in 4 equal instalments at the end of the 12th, 13th, 14th and
15th year from the date of allotment. The last and final maturity date
of NCDs is March 1, 2034.
Sale of shares in NatSteel Holdings Pte. Ltd. (‘NSH’) and Tata
Steel (Thailand) Public Company Ltd. (‘TSTH’)
T S Global Holdings Pte. Ltd. (‘TSGH’), an indirect wholly-owned
subsidiary of the Company, executed definitive agreements to
divest its entire equity stake held in NSH (100%) and TSTH (67.9%)
to a company in which 70% equity shares will be held by an entity
controlled by HBIS Group Co. Ltd (‘HBIS’) and the balance 30% will
be held by TSGH.
The definitive agreements signed between the two companies
is a significant milestone in strategic relationship, offering the
South-East Asian business robust growth opportunities, given the
access to resources, technical expertise and regional understanding
of HBIS. The Company remains committed through its shareholding
to help create a sustainable future for all stakeholders.
Joint Venture between Tata Steel and thyssenkrupp AG
Following the signing of a Memorandum of Understanding in
September 2017, the Company, on June 30, 2018, signed definitive
agreements with thyssenkrupp AG to combine the European Steel
Business into a 50:50 joint venture, named thyssenkrupp Tata Steel
BV, which will be positioned as a leading pan European high quality
flat steel producer with a strong focus on performance, quality
and technology leadership. The joint venture is built on the strong
foundations of common value systems and a long heritage in the
industry. The transaction is subject to merger control clearance in
several jurisdictions, including the European Union.
Tata Steel and thyssenkrupp have been engaging parallelly with the
European Commission (‘EC’) to provide information in relation to
the businesses which would be part of the proposed joint venture.
Following pre-notification engagement with the EC, both parties
notified the proposed joint venture to the EC on September 25, 2018.
On October 30, 2018, in line with the expected timelines of the
merger review process, the EC announced that it will undertake an
indepth review of the merger proposal and investigate certain areas
of preliminary competition concern. The Company has noted the
EC’s concerns and will continue its discussions with the EC including
providing further information and analysis, especially in relation to
sectors they have identified, to secure approval for the proposed
joint venture. Until completion of the JV process, thyssenkrupp
Steel Europe and Tata Steel Europe will continue to operate as
separate companies.
96
First and final call on Partly Paid Shares
In Financial Year 2017-18, the Board approved the simultaneous
but unlinked issue of 4:25 fully paid shares for an amount up to
`8,000 crore at a price of `510 per share and 2:25 partly paid shares
for an amount upto `4,800 crore at price of `615 per share (`154
paid-up) on rights basis. The shares were allotted to the shareholders
on March 14, 2018.
The first and final call on partly paid shares was to be made within
12 months from the date of allotment. In terms of regulatory
clarification(s) received, the Company is permitted to make the call
on partly-paid shares beyond 12 months if (i) the issue size exceeds
`500 crore and (ii) the Company complies with the requirement under
the applicable SEBI (Issue of Capital and Disclosure Requirements)
Regulations regarding monitoring agency. The Company is in
compliance with both these conditions. Accordingly, the Board will
make the first and final call on the partly paid shares of the Company
at an appropriate time.
Credit Rating
During the year under review, Moody’s Investors Services upgraded
long-term Corporate Family Rating of the Company by one notch
from Ba3 to Ba2 while S&P has revised its ratings outlook on the
Company from ‘Stable’ to ‘Positive’ and affirmed the long-term credit
rating of ‘BB-’.
H. Sustainability
Stemming from our founder’s belief that, what comes from society
should go back to society, sustainability is deep rooted in the culture
of the organisation. The belief is embedded in Company’s Vision
which balances the aspiration of value creation and commitment to
being a Corporate Citizen.
The sustainability approach of the Company is articulated in
Sustainability Policy of the Company as well as in the Corporate Social
Responsibility Policy, Environment Policy, Energy Policy, Climate
Change Policy, Biodiversity Management Policy, Affirmative Action
Policy, and Human Resource policy, etc which reinforces the triple
bottom-line approach in its systems and processes. The Company
also has systems in place to capture the voice of stakeholders
periodically and review its long-term strategy in line with the
stakeholder expectations.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT Bracing itself for the future, the Company is working towards
integrating the key issues on planet and people into its strategy
and business practices across the value chain. During the year,
Environment, Social and Governance aspects of material issues
were revisited through a third party Materiality Study covering
stakeholders across all locations. This will further reinforce the
Company’s strategy for value creation across all stakeholders and
capitals. Aspirations of taking our carbon emissions to less than
2 tCO2/tcs, zero waste and zero effluent discharge and doubling our
CSR reach by 2025 are significant facets of this strategy.
In order to mainstream sustainability in the decision making, the
Company organised a Sustainability Immersion Programme designed
and facilitated by Cambridge Institute of Sustainability Leadership
for Board Members, Senior Management, Senior Executives, and
Union Leadership Team. During the year, the Company organised
four batches of the programme covering majority of the Board
Members, entire senior Management team and more than 100 senior
executives and Union Leadership Team across locations.
The Company is committed to serving its customers through a portfolio
of eco-friendly products. During the year, the Company obtained CII’s
GreenPro eco-label for Tata Pravesh Steel Doors and Windows and Tata
Structura and Tata Pipes. The third party eco-label certification ensures
customers of minimal environmental impacts of the certified products
in a transparent way. For the first time in India, Steel Products have
received the eco-label. Going forward, the Company will adopt the
global best practice of having Environmental Product Declaration of
key products to enable a transparent declaration of the environmental
impacts of its products and processes in order to enable informed
purchasing by the end consumer.
The continued focus on ‘Sustainability’ across the value chain has helped
the Company in being adjudged as the Steel Industry Leader globally on
Sustainability in Dow Jones Sustainability Index in 2018 with a top score
of 100 percentile in Environmental Dimension. The Company has also
received the distinction of being recognized as Sustainability Champion
by World Steel Association for the second year in a row.
Environment
The Company aims to be the benchmark for environmental
stewardship in the steel industry by focusing on operational
excellence aimed at resource efficiency through a ‘Prevent, Minimise,
Recover, Reuse and Recycle’ hierarchical approach to reduce its
ecological footprint. The Company is committed to responsible use
and protection of the natural environment through conservation and
sustainable practices. The Company has implemented environmental
management systems that meet the requirements of international
standard ISO 14001:2015 at Jamshedpur Works and has initiated
proceedings at Kalinganagar Works. These systems provide the
Company with a framework for managing compliance and improving
environmental performance, making it future ready to address
stakeholder requirements.
The Company pursues responsible advocacy on policy and regulatory
issues by being member of the World Steel Association Environment
Committee, the Central Pollution Control Board’s National Taskforce,
the Indian Steel Association, Confederation of Indian Industries and
various other organisations. The Company has in place a board level
Safety, Health & Environment Committee that provides necessary
direction and guidance on matters relating to environment and
monitors the performance of the Company and its impact on
the environment.
During the year, Tata Steel continued its efforts to reduce its
carbon footprint by adopting best available technologies for
energy efficiency and heat recovery. The Plant at Jamshedpur is
the benchmark in India for CO2 emissions intensity at 2.29 tonnes
of CO2/tcs through BF-BOF route. The Company continues to use
the internal Carbon Pricing mechanism for evaluation of capital
expenditure projects with shadow price of carbon @US$15/tCO2.
Contributing to national commitment towards the Paris agreement,
the Company has taken up aspirational goals to achieve global
benchmark levels of less than 2 t/tcs CO2 emissions. Various cross
functional projects have been undertaken to identify and reduce
CO2 emissions. Recycling steel scrap is an important lever to reduce
carbon footprint and the Company has set up a Steel Recycling
business unit which will facilitate formalisation of the scrap market in
India and make more scrap available for conversion to steel.
In Europe, the Company continues to invest in short to medium
term CO2 emission reduction and energy efficiency improvements.
In addition to these improvements, as a follow up to the ULCOS
(Ultra-Low CO2 Steelmaking, co-operative research initiative to
achieve a step change in CO2 emissions from steelmaking), the
Company is also working on a major long-term project to develop
a new smelting reduction technology (‘HIsarna’) to produce steel
without the need for coke making or agglomeration processes,
thereby improving efficiency, reducing energy consumption and
reducing CO2 emissions. The pilot plant is located at the Company’s
IJmuiden site in the Netherlands.
Climate Change
Climate change is one of the most pressing issues the world faces
today and the Company recognises its obligation to minimise
its contribution to climate change. The Company aims to play a
leadership role in addressing the challenge of climate change.
The Company recognises that, though steel is considered a ‘hard
to abate’ sector globally, it will be an integral part of the solution to
climate change because of its infinite recycling properties.
Considering all these factors, the Company has formulated a climate
change strategy based on 5 key themes as outlined below:
Emissions Reduction: The Company will continue to improve its
current processes to increase its energy efficiency and to reduce its
carbon footprint.
Investing in Technology: The Company will continue to invest in
long-term breakthrough technologies.
97
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Market Opportunities: The Company endeavours to develop such
new products and services that reduce the environmental impact
over its products’ life-cycles and help its customers to reduce their
carbon footprints.
Employee Engagement: The Company will actively engage its
workforce and encourage everyone to contribute to its strategy.
Lead by Example: The Company will further develop its pro-active role
in global steel sector initiatives through the World Steel Association.
initiatives to improve their safety performance, the Company has
also taken upon itself to ensure that contractor employees in India
have the desired skills and competencies to perform their job safely.
They are being tested and certified by Shavak Nanavati Technical
Institute (‘SNTI’) to ensure competence. In many cases they are also
being trained to achieve desired skills and competence. During the
year under review, the Company covered a large part of the contractor
employee workforce in India. It’s an ongoing process and we expect
to achieve 100% coverage within a year.
Health and Safety
Health and Safety Management remains Tata Steel’s foremost priority
and we are committed to being a benchmark in the industry. To us,
Health and Safety is not just a metric but a part of our value system.
The desire to being a benchmark is demonstrated through leadership
commitment and is cascaded across the organisation in the form of
long, medium and short-term action plans.
The Company has been working on six corporate level long-term
strategies viz. Build (Safety) leadership capability at all levels
to achieve zero harm, improve competency and capability for
hazard identification & risk management, contractor safety risk
incidents on road & rail,
management, elimination of safety
excellence in process safety management, and establishing industrial
hygiene and improving occupational health. These strategies are
enablers through which several initiatives are undertaken that aid
the Company in achieving its objective of ‘Committed to Zero’.
For the Indian operations, one of the key initiatives undertaken
during the year under review was to strengthen Company’s quality
management system, which is the foundation on which all other
systems are based. The company-wide IT based, Generic Document
Control System (GDCS) was re-designed and re-launched to ensure
availability of latest and controlled Standard Operating Procedures
(‘SOPs’) to employees for performing their tasks safely. The plant at
Jamshedpur was re-certified for OHSAS 18001:2007 and a similar
process has begun for the plant at Kalinganagar.
During the year under review, a concerted effort has been made
to increase risk sensitivity of the Company. A well articulated
methodology to evaluate and assess safety related risks has been
developed with its associated mitigation techniques. This is currently
being rolled out in phases and it has already helped in achieving 26%
reduction of high potential incidences in comparison to last year.
The initiative to roll out Process Safety through a ‘Center of Excellence’
methodology at Jamshedpur has been appreciated by World Steel as
the ‘best practice’ of 2018, across the industry. Currently, the process
safety has been rolled out to 30 of 41 operating departments at
Jamshedpur and Kalinganagar. The balance departments will be
covered by Fiscal 2020.
Contractor employees’ fatality remains the topmost safety concern
for the Company. It is with deep regret that we report two fatalities in
India and one fatality in Singapore involving our contractor partners.
The Company is continuously channelising its efforts to eliminate
such incidents and achieve zero fatality. Apart from taking various
98
The Company is leveraging state of the art digital technology
at various places to improve surveillance and analytics, reduce
hazardous man-machine interface and for various other corrective
and preventive actions.
in
labour
On the health front, during the year under review, three distinct
campaigns were launched for the Indian operations. A detailed
ergonomic study has been undertaken
intensive
departments, industrial hygiene projects have been undertaken
in departments where it has been assessed as a health risk and
physical exercise has been introduced off duty hours, facilitated
by a professional agency at various locations of the Company at
Kalinganagar, Bhubaneswar, Joda, Jamshedpur, etc. to improve
employee health and wellness. This has helped to improve health
index of the Company vis-à-vis previous year. These initiatives will
continue with increased intensity in times to come.
At Tata Steel Europe, the long-term strategies to focus on occupational
health and process safety has facilitated in achieving zero fatality.
Training for senior managers focusing on their leadership role related
to health & safety continued during the year. The combined LTIFR in
Financial Year 2018-19 for employees and contractors deteriorated
to 1.45 as compared to 1.36 in the previous year. The recordable
rate, which includes lost time injuries as well as minor injuries, also
deteriorated from 4.13 in Financial Year 2017-18 to 4.92 in Financial
Year 2018-19. A campaign focusing on hazard identification and risk
minimisation continued during the year under review and there were
various initiatives undertaken to accelerate deployment of standards,
understand the mindset and behaviour and improve maturity of the
Group’s health & safety management system
Research and Development
In line with the aspiration to be amongst the top five innovation
driven companies in the world, the Company has put in place a
new technology organisational structure. The technology road map
exercise has materialised and teams are formed to work on selected
projects. The year has been rewarding on many fronts for Research &
Development. During the year under review, the Company became a
leading player in the Indian Steel industry in terms of patent filing by
crossing the 1,000 mark. There is a progress in Graphene work from
commercialisation perspective. Industrial solutions developed with
graphene doped composites have offered significant improvement
in the operational costs of the process plants. Also, Graphene anti
corrosion coatings have been established towards a green alternative
to the current coating technologies. A number of breakthrough
projects have crossed the ‘proof-of concept’ stage and ventured into
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT advanced stages. The Company has successfully conducted trials on
an innovative process to make use of non-coking coal along with
coking coal. Amongst the notable new developments, a new process
to produce high purity iron powder using in-plant byproducts has
been developed. A grade of the said iron powder with high sinter
ability and superior toughness properties has been tested and
commercialised for Diamond cutting tools.
In Europe, Research & Development has contributed to several
new products. The range of Prime Lubrication Treatment has
been extended to the MagiZinc protective galvanising coating.
XPF1000 has been launched as a new ultra-high strength steel grade
for the Chassis & Suspension market, and a new range of hybrid
sandwich panels is now available for Construction via Building
Systems. Further, Research and Development has also been vital in
getting many potential new products to reach higher Technology
Readiness levels throughout the year.
In order to make technology development more effective and robust
for the Company in the future, the cross-functional delivery of the TSE
technology roadmap is now coordinated via a new committee, the
Central Technology Committee, chaired by the Director R&D Europe
and sponsored by the Chief Technology Officer. This Committee
ensures that priorities and gaps in the delivery of technology are
identified and dealt with in an appropriate manner. Research &
Development continues to provide significant effort towards various
research and technology initiatives such as sustainable and more
environment friendly steel production through the HIsarna project
that has progressed on the maturity ladder with a formal move from
the HIsarna pilot plant from an R&D environment to full integration
with the MLE manufacturing hub. HIsarna is a novel and more flexible
reduction technology for iron production. In the past year, the
HIsarna pilot plant has set several new production records. R&D will
continue to support this development way forward.
New Product Development
In order to achieve the Company’s endeavour to create superior
customer experience, the Company has adopted best in class
manufacturing practices, invested in creating brands, developed
products keeping customers at the centre, and focussed on
environment and safety. Furthermore, the Company is steadily
venturing into a new gamut of solutions and ready to use products
for further value creation.
During the year under review, the Company developed 114 new
products in India. Tata Steel Kalinganagar plant played a key role
by developing 61 products such as high strength steel grades for
global players in Lifting & Excavation, and Pre-Engineered Building
(PEB) manufacturers, approval upto API 5L X60 grade from state
owned Natural Gas Processing & Distribution company for Oil & Gas
pipelines and the first approvals of hi-tensile (590MPa) grades in
automotive applications. In addition, the products developed have
also helped ‘Tata Astrum’ to enter in the Transmission & Distribution
segment with high strength grade of ASTM A572 Gr 65.
in environmentally hazardous discharge.
Environment friendly products such as polysteel and chrome free
passivation based coatings have been developed for the ECA
(Emerging Corporate Accounts) business. Polysteel has the potential
to eliminate the dependency on 7 tank degreasing process, which
results
In addition,
polysteel also provides long-term corrosion protection, better
surface finish, anti-fingerprint surface and high scratch resistance.
Chrome free passivation in galvanised products is environment
friendly and eliminates requirement of oiling. The trials are successful
for clean room partition panels and supply for appliance segment will
be initiated shortly. Services and solution, a new business vertical,
successfully launched Tata Pravesh vista windows, an extension of the
existing product, Tata Pravesh doors. Vista windows were launched
with 3 novel design elements: unique slide cum swing, concealed
spring loaded auto lock tower bolt, and gas spring assist and hold,
providing comfort and safety.
In Europe, 22 new products were launched during the year.
These launches include major developments for the automotive,
construction, and engineering markets. Notable example of product
and service launches includes XPF1000. XPF1000, latest addition to
Tata Steel’s XPF hot rolled product family for the automotive chassis
and suspension market, combines ultra-high 1000MPa tensile
strength with excellent formability and fatigue properties. A new
range of 25mm/1’ gauge hot rolled products was developed for
the engineering and yellow goods markets, enabling customers to
replace equivalent reversing mill plate offerings and to achieve better
part yield and surface finish. Improved Colorcoat® prepainted steels
using Tata Steel’s next generation MagiZinc® hot dip galvanised
coating for optimised product longevity in construction building
envelope applications was also developed. Packaging has continued
to commercialise its already launched Protact® products, including
Protact® for food.
Customer Relationship
During the year under review, the Company undertook specially
designed initiatives to create and maintain long-term relationship
with channel partners and customers to be the first choice of
producer. In India, the Company largely caters to B2B, B2C and B2ECA
(Emerging Corporate Accounts) customer groups. These segments
are further bifurcated into micro segments based on application
and buying behaviour. The Company focusses to understand
the expectations and requirements of current and potential
customers/market segments to deliver customer specific products
and services and provide value-creating solutions.
During the year under review, the Company organised
its
biennial ‘Driving Steel’ summit on Automotive Steels. The summit
brought together industry experts including automotive majors
and ancillaries, from around the globe as well as from India.
The knowledge summit facilitated the Company to develop
insightful understanding of the emerging trends in the automotive
industry, and to help build new partnerships. The Company engages
with B2B customers through cross-functional Customer Service
Teams (‘CSTs’) to work on new product development, quality
99
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 improvement and value-creating ideas which help to achieve
operational excellence. In addition, the Company has collaborated
with key automotive customers to provide cost and weight
reduction solutions using the Value Analysis & Value Engineering
(‘VAVE’) platform and the Advanced Product Application support.
This has also enabled the Company to partner with discerning
customers for future product launches. Engagement through CST
and VAVE is deployed to B2B customers of Industrial Products and
Projects Vertical. Senior leadership team actively engaged with
leading B2B customers by visiting premises of customers and
attending exclusive interacting sessions organised across regions.
(Panel segment) were conceived
Collaborative Reform with ECA for Advanced Technical Enhancement
(‘CREATE’) was conceptualised to provide support to various ECA
customers by generating cost and weight savings via redesigning
of components. Platforms such as APPLICON (Appliance segment),
and PANORAMA
to gain
deeper understanding and engagement with microsegments.
These platforms witnessed participation of Original Equipment
Manufacturers (‘OEM’) from consumer durable industry and provided
an opportunity to engage with policy making bodies such as CEAMA
(Consumer Electronics & Appliance Manufacturers Association), and
COSMA (Control Panel and Switchgear Manufacturers’ Association)
and to enable all stakeholders to understand the upcoming
technologies in the microsegments.
During the year under review, the Company also rolled out various
digital initiatives across customer groups. ‘Aashiyana’, an e-selling
platform has been launched for multiple B2C brands and has
crossed a turnover of `100 crore. ‘COMPASS’, a digital supply chain
visibility solution rolled out to select B2B customers, generated
122KT of sales this year. DigEca, an initiative that captures lead
management for ECAs has achieved 659 KT sales enquiries
and 375 KT purchase orders making the process convenient
for the customers.
In services & solutions space, select platforms have been developed
to understand the consumer decision making, such as the ‘Consumer
Connect’ programme wherein the lady of the house is invited to
join the program, visit exclusive retail outlet for experience and
have an option of display van carrying the product closer to the
consumer and ‘consultative selling’ wherein a sales expert helps in
product demonstration.
In Europe, the Company partners with customers to help them excel
in their market, co-creating more sustainable value throughout the
entire value chain. ‘Customer Focus’, contains several company wide
and local programmes such as Strategic Account Management
programme that reinforce our mission and drive towards customer
centricity. Improvements on this front have also been acknowledged
in the Tata Business Excellence Model assessment. The Company
also has a value chain transformation programme known as
‘Future Value Chain’ programme, which focusses on driving service
and quality improvements. European operations are also focusing
on a balanced portfolio and differentiation strategy, which aims to
increase the proportion of high-margin differentiated products.
As part of the strategy, the Company launched 22 new products in
100
Europe this year. These launches include major developments for
the automotive, construction, and engineering markets. Along with
products, the Company also offers services such as Electronic Data
Interchange, Track and Trace, Early Vendor Involvement, Design
and Engineering support, Building Information Modelling, Life
Cycle Analysis and Technical Support. In addition, the Company
has a commercial
‘Future
Commercial Excellence’ which focusses on driving improvements for
commercial terms.
programme called
improvements
Human Resources Management & Industrial Relations
Human resource has always been one of the most valued stakeholders
for Tata Steel. The Company is committed towards creating and
maintaining an ideal work culture for engaged and capable workforce
to deliver for the future. Tata Steel has strong values, pioneering
practices, a culture of working together through joint consultation
between Union and Management and a very strong commitment
towards community development. Our people practices have always
been centered around employee welfare and wellness, creating an
environment of collaboration and connect which has aided us to
achieve industrial harmony of over 90 years.
Improving employee productivity is of utmost importance to
the organisation and achieving benchmark performance in this
area year-on-year is the goal for the organisation. This led to an
improvement
tonnes of crude
steel/employee/year to 800 tonnes of crude steel/employee/year
and the employees on roll moving from 34,072 to 32,984.
in productivity
from 769
The year under review was a milestone year for the Company as it
embarked on major improvements in areas related to diversity and
inclusion. Various initiatives such as Wings, an employee resource
group for LGBTQ+; Take Two, a career opportunity for women on a
break; Step-up-to-success, an in-house women’s mentoring program;
Deployment of women in B-shift operations; and Paternity leave for
blue collared workforce, were introduced to bring about a change in
the culture and mindset of the workforce with regard to the aspects of
diversity and inclusion. The focus for the year was on Gender diversity
and Differently Abled Persons. Efforts have been taken on hiring and
creating infrastructure for diverse workforce as well as retaining and
developing women leaders to create a pool of diverse talent in the
organisation. Our continuous efforts in this direction have led to the
increase in gender diversity from 6.1% to 6.5% of the total workforce.
Continuing the capability development journey, the Capability
Development wing, during the year, started serving external clients
as well as generating a revenue through their products and services.
The Management has been focusing on digitalisation since past
few years. During the year under review, the role of digitalisation
in providing a rich employee experience has been immense.
The Company launched the first HR Chat-bot – ‘Amigo’ to provide
interactive resolutions to the queries pertaining to HR policies.
The year has also been significant for Digital HR owing to the major
involvement of teams in designing and development of a customised
HRM Talent Suite. Data analytics and reporting have become key
inputs in formulating policies and strategies for the Company.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT During the year under review, the Company acquired Bhushan Steel
Limited (renamed Tata Steel BSL Limited). The seamless integration of
the newly acquired organisation with Tata Steel was ensured through
deployment of the Company’s employees in the key functional
areas such as Safety, Ethics, Supply Chain, etc. and senior leadership
positions and by adopting and implementing various policies
and practices. Trust was built among the workforce by bringing in
transparency and openness in the system and by imbibing Tata
Philosophy across the value chain.
During the year under review, Tata Steel was certified as Great Place
to Work in the Great Place to Work study conducted for the year 2019.
Tata Steel was declared as one of the top 25 ‘India’s Best Places to
Work in the Manufacturing sector’ by Great Place to Work. Tata Steel
also secured 8th rank in the ‘Best Companies to work for’ survey
by Business Today and featured in the top 10 companies for the
2nd year in a row. Tata Steel won the Golden Peacock Award for HR
Excellence (Steel Sector) in 2019. This recognition was bestowed on
the Company for the 2nd year in a row. The Company was conferred
with CII Eastern Region Productivity Award for overall improvement
in productivity.
In Europe, the Company continues to invest in the recruitment,
engagement, health and development of its employees. The Tata
Steel Academy in Europe aims to strengthen the organisation’s
competitive advantage by enabling its people to achieve the
highest standards of technical and professional expertise, with a
combined use of practical ‘on the job’, virtual and classroom training
to maximise training effectiveness. The Company aims to offer
modern employment conditions that ensure healthy long-term
employability and are responsive to the needs of both current and
future employees. In Europe, the Company strives to ensure that
the employees’ motivation and capabilities are enhanced by its
leaders, organisational structure, operational protocols, including
daily management and operational excellence programmes,
communication processes & business excellence and reward and
recognition policies. The Company also focusses on promoting
physical health through various central and local programmes and
provides training and support to promote mental health inside and
outside the workplace.
Corporate Social Responsibility
The Company’s vision is to be a global benchmark in ‘value creation’
and ‘corporate citizenship’. The objective of the Company’s Corporate
Social Responsibility (‘CSR’) initiatives is to improve the quality of life
of communities through long-term value creation for all stakeholders.
For decades, the Company has pioneered various CSR initiatives.
The Company continues to remain focussed on improving the quality
of life. During the year under review, the Company impacted the
lives of more than a million children, women and men from our
in health, drinking water,
communities
infrastructure development, etc.
education,
livelihood, sports,
initiatives
through
The Company is working closely with tribal communities in its
areas of operation in India. The Company has partnered with State
Governments of Jharkhand and Odisha and with various reputed
national and international development organisations in delivering
its programmes.
The Company has in place a CSR policy which provides guidelines to
conduct CSR activities of the Company. The CSR policy is available on
the website of the Company www.tatasteel.com
During the year under review, the Company spent `314.94 crore on
CSR activities. The Annual Report on CSR activities, in terms of Section
135 of the Companies Act, 2013 and the Rules framed thereunder, is
annexed to this report (Annexure 3).
In Europe, the Company focusses on local Communities. The Company
nurtures and sustains the communities close to its operational plants.
The Company conducts regular dialogues with these communities to
understand and address their concerns. The Company is transparent
with information on the environmental impact of its activities, as
well as its goals and improvement targets. Local communities are
part of the sustainable economy as we help each other to co-exist
successfully with a good understanding of the mutual benefits that
we provide to one another. The Company runs regular programmes
to invite the public to see our work and also enjoy and see the
important wildlife and flora that flourish on its sites. The Company
sponsors local activities and support charities. In IJmond, the
Company celebrated the annual Tata Steel Chess Tournament that
attracts thousands of players and spectators and boosts the local
tourism economy in the off-season in January. We sponsor local
sports teams and children’s events, most notably in recent years the
Tata Kids of Steel® triathlons. We also engage with communities as
an existing and potential workforce, running programmes to involve
young people, and girls in particular, so that they can discover the
interesting career opportunities that our organisation offers.
I. Corporate Governance
At Tata Steel, we ensure that we evolve and follow the corporate
governance guidelines and best practices dilligently, not just to
boost long-term shareholder value but also to respect minority
rights. We consider it our inherent responsibility to disclose timely
and accurate information regarding the operations & performance,
leadership and governance of the Company.
In accordance with the Tata Steel Group’s Vision, the Tata Steel Group
aspires to be the global steel industry benchmark for value creation
and corporate citizenship. The Tata Steel Group expects to realise its
Vision by taking such actions as may be necessary in order to achieve
its goals of value creation, safety, environment and people.
Pursuant to the Listing Regulations, the Corporate Governance Report
along with the Certificate from a Practicing Company Secretary,
certifying compliance with conditions of Corporate Governance, is
annexed to this report (Annexure 4).
101
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Board Meetings
For seamless scheduling of meetings, a calendar is prepared and
circulated in advance. The Board met 7 times during the year under
review, the details of which are given in the Corporate Governance
Report. The intervening gap between the meetings was within
the period prescribed under the Companies Act, 2013 and the
Listing Regulations.
Selection of new Directors and Board Membership Criteria
The Nomination and Remuneration Committee (‘NRC’) works with
the Board to determine the appropriate characteristics, skills and
experience for the Board as a whole as well as for its individual
members with the objective of having a Board with diverse
backgrounds and experience in business, government, education
and public service. Characteristics expected of all Directors include
independence, integrity, high personal and professional ethics,
sound business judgement, ability to participate constructively in
deliberations and willingness to exercise authority in a collective
manner. The Company has in place a Policy on appointment &
removal of Directors (‘Policy’).
The salient features of the Policy are:
• It acts as a guideline for matters relating to appointment and
re-appointment of directors.
• It contains guidelines for determining qualifications, positive
attributes for directors, and independence of a Director
• It lays down the criteria for Board Membership
• It sets out the approach of the Company on board diversity
• It lays down the criteria for determining independence of a
director, in case of appointment of an Independent Director
The Policy was adopted by the Board on March 31, 2015 and the
same was revised on March 29, 2019 to incorporate the changes
in regulatory requirements pertaining to criteria for determining
independence of a director.
The Policy
www.tatasteel.com
is available on
the website of
the Company
Familiarisation Programme for Directors
Independent Directors)
All new Directors (including
inducted
to the Board go through a structured orientation programme.
Presentations are made by Senior Management giving an overview of
the operations, to familiarize the new Directors with the Company’s
business operations. The new Directors are given an orientation on
the products of the business, group structure and subsidiaries, Board
constitution and procedures, matters reserved for the Board, and the
major risks and risk management strategy of the Company. Visits to
plant and mining locations are organised for the new Directors to
enable them to understand the business better.
During the year under review, no new Independent Directors were
inducted to the Board. Details of orientation given to the existing
independent directors in the areas of strategy, operations &
102
governance, safety, health and environment, industry & regulatory
trends, competition and future outlook are available on the website
of the Company www.tatasteel.com
Evaluation
The Board evaluated the effectiveness of its functioning, that of the
Committees and of individual Directors.
the
feedback of Directors on various
The Board sought
parameters including:
• Degree of fulfillment of key responsibilities towards stakeholders
(by way of monitoring corporate governance practices,
participation in the long-term strategic planning, etc.);
• Structure, composition and
role clarity of
the Board
and Committees;
• Extent of co-ordination and cohesiveness between the Board and
its Committees;
• Effectiveness of the deliberations and process management;
• Board/Committee culture and dynamics; and
• Quality of
relationship between Board Members and
the Management.
The Chairman of the Board had one-on-one meeting with the
Independent Directors (‘IDs’) and the Chairman of NRC had
one-on-one meeting with the Executive and Non-Executive,
Non-Independent Directors. These meetings were intended to obtain
Directors’ inputs on effectiveness of the Board/Committee processes.
The Board considered and discussed the inputs received from the
Directors. Further, the IDs at their meeting reviewed the performance
of the Non-Independent Directors, the Board as a whole and
Chairman of the Board after taking into account views of Executive
Directors and other Non-Executive Directors.
The evaluation process endorsed the Board Members’ confidence
in the ethical standards of the Company, cohesiveness amongst the
Board Members, constructive relationship between the Board and
the Management and the openness of the Management in sharing
strategic information to enable Board Members to discharge their
responsibilities.
In the coming year, the endeavour is to enhance focus on
de-leveraging Balance Sheet (Reduction of debt) and making the
European Operations more sustainable.
Remuneration Policy for the Board and Senior Management
Based on the recommendations of the NRC, the Board has approved
the Remuneration Policy for Directors, Key Managerial Personnel
(‘KMPs’) and all other employees of the Company. As part of the
policy, the Company strives to ensure that:
• the level and composition of remuneration is reasonable and
sufficient to attract, retain and motivate Directors of the quality
required to run the Company successfully;
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT • relationship between remuneration and performance is clear and
Inductions to the Board
meets appropriate performance benchmarks; and
• remuneration to Directors, KMP and Senior Management involves
a balance between fixed and incentive pay, reflecting short,
medium and long-term performance objectives appropriate to the
working of the Company and its goals.
The Remuneration Policy for Directors, KMPs and other Employees
was adopted by the Board on March 31, 2015.
The salient features of the Policy are:
• It lays down the parameters based on which payment of
remuneration (including sitting fees and commission) should
be made to Independent Directors (IDs) and Non-Executive
Directors (NEDs).
• It lays down the parameters based on which remuneration
(including fixed salary, benefits and perquisites, bonus/
performance linked incentive, commission, retirement benefits)
should be given to whole-time directors, KMPs and rest of
the employees.
• It lays down the parameters for remuneration payable to Director
for services rendered in other capacity.
During the year under review, there have been no changes to
the Policy. The Policy is available on the website of the Company
www.tatasteel.com
Particulars of Employees
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Companies Act, 2013, read with Rule 5(1)
of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are annexed to this report (Annexure 5).
In terms of the provisions of Section 197(12) of the Companies Act,
2013 read with Rules 5(2) and 5(3) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, a statement
showing the names and other particulars of employees drawing
remuneration in excess of the limits set out in the said Rules forms
part of this report.
Independent Directors’ Declaration
The Company has received the necessary declaration from each
Independent Director in accordance with Section 149(7) of the
Companies Act, 2013, read with Regulations 16 and 25(8) of the
Listing Regulations that he/she meets the criteria of independence as
laid out in Section 149(6) of the Companies Act, 2013 and Regulations
16(1)(b) and 25(8) of the Listing Regulations.
Directors
The year under review saw the following changes to the Board of
Directors (‘Board’).
On the recommendations of the Nomination and Remuneration
Committee, the Board appointed Mr. Vijay Kumar Sharma as
Additional (Non-Executive) Director of the Company effective
August 24, 2018. Mr. Sharma brings to Board valued insights and
perspectives on complex financial and operational issues.
The resolution for confirming the appointment of Mr. Vijay Kumar
Sharma as Director of the Company forms part of the Notice
convening the Annual General Meeting (‘AGM’) scheduled to be held
on July 19, 2019.
Re-appointments
terms of
the provisions of
In
the Companies Act, 2013,
Mr. Koushik Chatterjee retires by rotation at the ensuing AGM and
being eligible, seeks re-appointment.
During the year under review, based on the recommendations
of Nomination and Remuneration Committee (‘NRC’), the Board
re-appointed Mr. T. V. Narendran as Chief Executive Officer &
Managing Director of the Company for a period of five years effective
September 19, 2018, not liable to retire by rotation. The Board
approved the re-appointment of Mr. Narendran based on his
significant contributions to the Company and the same is subject to
the approval of the Members of the Company.
Based on the recommendations of the NRC and pursuant
to the performance evaluation of Ms. Mallika Srinivasan as
a Member of the Board, the Board proposed to re-appoint
Ms. Srinivasan as an Independent Director of the Company, not
liable to retire by rotation, to hold office for a second term effective
August 14, 2019 through May 20, 2022.
Also, based on the recommendation of the NRC and pursuant
to the performance evaluation of Mr. O. P. Bhatt as a Member of
the Board, the Board proposed to re-appoint Mr. O. P. Bhatt as an
Independent Director of the Company, not liable to retire by rotation,
to hold office for a second term effective August 14, 2019 through
June 9, 2023.
necessary
resolutions
The
of
Mr. Koushik Chatterjee, Mr. T. V. Narendran, Ms. Mallika Srinivasan and
Mr. O. P. Bhatt form part of the notice convening the ensuing AGM
scheduled to be held on July 19, 2019.
re-appointments
for
The profile and particulars of experience, attributes and skills of the
above Directors is disclosed in the Notice convening the AGM to be
held on Friday, July 19, 2019.
Cessation
Mr. D. K. Mehrotra stepped down as a Member of the Board effective
May 16, 2018. Mr. Mehrotra joined the Board as a Non-Executive
Director on October 22, 2012.
The Board of Directors places on record its appreciation towards
Mr. Mehrotra’s contributions during his
tenure as Director
of the Company.
103
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Key Managerial Personnel
Pursuant to Section 203 of the Companies Act, 2013, the Key
Managerial Personnels of the Company as on March 31, 2019
are – Mr. T. V. Narendran, Chief Executive Officer & Managing
Director, Mr. Koushik Chatterjee,
Executive Director &
Chief Financial Officer and Mr. Parvatheesam K, Company
Secretary & Chief Legal Officer
(Corporate & Compliance).
During the year under review, there has been no change in the
Key Managerial Personnels.
Audit Committee
The Audit Committee was constituted in the year 1986. The
Committee has adopted a Charter for its functioning. The primary
objective of the Committee is to monitor and provide effective
supervision of the Management’s financial reporting process, to
ensure accurate and timely disclosures, with the highest levels of
transparency, integrity and quality of financial reporting.
The Committee met 5 times during the year under review, the details
of which are given in the Corporate Governance Report. As on
March 31, 2019, the Committee comprises Mr. O. P. Bhatt (Chairman),
Mr. Aman Mehta, Dr. Peter Blauwhoff and Mr. Saurabh Agrawal.
Internal Control Systems and Internal Audit
The Board of Directors of the Company is responsible for ensuring
that Internal Financial Controls have been laid down in the
Company and that such controls are adequate and operating
effectively. The Internal Financial Controls (‘IFC’) are based on the
Tata Code of Conduct (‘TCoC’), policies and procedures adopted by
the Management, corporate strategies, annual business planning
process, management reviews, management system certifications
and the risk management framework.
The Company has an IFC framework, commensurate with the size,
scale and complexity of the Company’s operations. The framework
has been designed to provide reasonable assurance with respect
to recording and providing reliable financial and operational
information, complying with applicable laws, safeguarding assets
from unauthorised use, executing transactions with proper
authorisation and ensuring compliance with corporate policies.
The controls, based on the prevailing business conditions and
processes have been tested during the year and no reportable
material weakness in the design or effectiveness was observed.
The framework on Internal Financial Controls over Financial
Reporting has been reviewed by the internal and external auditors.
The Company uses various IT platforms to keep the IFC framework
robust and our Information Management Policy governs these IT
platforms. The systems, standard operating procedures and controls
are implemented by the executive leadership team and are reviewed
by the internal audit team whose findings and recommendations are
placed before the Audit Committee.
The scope and authority of the Internal Audit function is defined in the
Internal Audit Charter. To maintain its objectivity and independence,
the Internal Audit function reports to the Chairman of the Audit
104
Committee. The Internal Audit team develops an annual audit plan
based on the risk profile of the business activities. The Internal
Audit plan is approved by the Audit Committee, which also reviews
compliance to the plan.
The Internal Audit team monitors and evaluates the efficacy and
adequacy of internal control systems in the Company, its compliance
with operating systems, accounting procedures and policies at all
locations of the Company and its subsidiaries. Based on the report
of internal audit function, process owners undertake corrective
action(s) in their respective area(s) and thereby strengthen the
controls. Significant audit observations and corrective action(s)
thereon are presented to the Audit Committee.
The Audit Committee at its meetings reviews the reports submitted
by the Internal Auditor. Also, the Audit Committee at frequent
intervals has independent sessions with the statutory auditor and
the Management to discuss the adequacy and effectiveness of
internal financial controls.
Risk Management
Given the uncertain and volatile business environment, companies
in technology, geo-politics, financial
face continuous changes
markets, regulations, etc. which affect the value chain. To build a
sustainable business that can weather these changes, companies
need to manage risk and opportunities on a pro-active basis.
Keeping this in mind, the Company has adopted a robust Enterprise
Risk Management
the organisation.
(‘ERM’) process across
The objective of the ERM process is to develop a ‘risk intelligent’
culture which drives informed decision making and builds resilience
to adverse developments while ensuring that opportunities are
exploited to create value for all stakeholders. In order to achieve this,
the Company focusses on 4 broad principles viz. risk oversight, risk
Infrastructure, risk process and ownership, and risk integration.
• The Risk oversight function consists of the Board of Directors,
Risk Management Committee (‘RMC’) and Group Risk Review
Committee (‘GRRC’) to oversee the risk management policy, to
provide guidelines for implementing the ERM framework and ERM
process across the Company. The RMC also reviews the key risks
that the Company faces and the progress of the mitigation plans.
GRRC
is a Management Committee comprising the Senior
Management team as its members. The GRRC is responsible for
the implementation of ERM process across the Company and
providing the necessary resources, framework & structures to
enable the ERM. The GRRC reviews the risks and the proposed
mitigation plans and engages with risk owners regularly across the
business to drive mitigation.
A dedicated ERM team has been set up to deploy the ERM process
across the Business Units. The ERM team is led by Group Head –
Corporate Finance & Risk Management who acts as the Chief Risk
Officer (CRO) of the Company. The CRO regularly reports to the
RMC and the GRRC on the progress of the implementation of ERM
and the various risks faced by the Company
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT risk
identification,
• The Company has developed a 5 step ERM process (establish
context,
risk assessment & evaluation,
mitigation and monitor, review & report), which takes inputs from
international standards and references such as Committee of
Sponsoring Organisation of the Treadway Commission (‘COSO’),
ISO 31000 and best practices from industries across the globe.
For better efficacy, the process is deployed using a ‘top down’ and
‘bottom up’ approach.
• The Company strives to integrate the ERM process with the existing
management processes and embed it across the Company.
The top-down risks in conjunction with the bottom up risks
identified by the Business Units drive the strategy and the capital
allocation of the Company.
During the year under review, the Company has been continuously
working on strengthening the ERM process including facilitating the
top-down risk assessment process, deploying various analytical tools
to analyse the risks, and strengthening the integration with strategy,
capital allocation and internal audit. The strengthening has also
enhanced coverage of ERM across the Company with the ERM roll
out to new business units and domestic subsidiaries.
During the year under review, the Company was declared as Winner
of ‘Golden Peacock Award for Risk Management’ for 2018 for
attaining significant achievements in the field of Risk Management.
The Company was also awarded the India Risk Management Awards
for Best Risk Management Framework & Systems under the ‘Metals &
Mining’ and ‘Risk Governance’ categories for the second year in a row.
Vigil Mechanism
Commitment towards highest moral and ethical standards in the
conduct of business is of utmost importance to the Company.
To advance standards of ethical practices, the Company has deployed
the Management of Business Ethics (‘MBE’) across the organisation
through a well-defined framework.
The Company also has a Vigil Mechanism that provides a formal
channel for all its Directors, employees and vendors to approach
the Ethics Counselor/Chairman of the Audit Committee and make
protective disclosures about the unethical behaviour, actual or
suspected fraud or violation of the Tata Code of Conduct (‘TCOC’).
In order to adhere to the highest of the ethical standard, the vigil
Mechanism includes policies viz. the Whistle Blower Policy for
Directors & Employees, the Whistle Blower Policy for Business
Associates, the Whistle Blower Protection Policy for Business
Associates (vendors/customers), the Policy for Receipts of Gift and
Hospitality and the Conflict of Interest Policy for Employees.
The Whistle Blower Policies for Directors & Employees and Business
Associates are an extension of the TCoC that encourage every
Director, employee and Business Associate to promptly report to
the Management any actual or possible violation of the TCoC or any
event wherein he or she becomes aware of any event that could
affect the business or reputation of the Company.
The Whistle Blower Reward and Recognition Guidelines for
employees has been implemented to encourage employees to
report genuine misconduct or unethical activity taking place in the
Company. The disclosures reported are addressed in the manner and
within the time frames prescribed in the Whistle Blower Policy.
The Whistle Blower Protection Policy for Business Associates including
vendors and customers provides protection to Business Associates
from any victimisation or unfair trade practices by the Company.
The Company has adopted a Policy for Receipts of Gift and Hospitality
that requires its employees to take the right decisions when they
are offered gifts or hospitality while conducting business or official
transactions on behalf of the Company. The Company has also
adopted a Conflict of Interest policy. The policy requires employees
to act in the best interest of the Company without any conflicts and
declare conflicts, if any (real, potential or perceived).
During the year under review, the Company undertook a series of
communication and training programmes for internal stakeholders
and vendors, with the aim to create awareness about Tata values, TCoC
and other ethical practices of the Company. The Company undertook
various theme based campaigns, town hall and departmental events.
‘Neeti Katha’ i.e. storytelling through snippet series on scenarios of
‘The ethics of safety’ and ‘Trust Behaviour’ were mailed to employees
as part of the awareness campaign. The Company also celebrates the
month of July as Ethics Month. All communications and programmes
are theme based. This practice has helped in reinforcing employee
involvement in driving the MBE.
The Company’s robust system to raise concerns on unethical
behaviour, efforts undertaken to make stakeholders aware of such
systems as well as of their responsibility to report such concerns,
practice of non-retaliation and strong mechanism to address such
concerns instills in our stakeholders the confidence to report any
ethical violations.
Related Party Transactions
During the year under review, the Company did not have any
contracts or arrangements with related parties
in terms of
Section 188(1) of the Companies Act, 2013.
Accordingly, particulars of contracts or arrangements with related
parties referred to in Section 188(1) of the Companies Act, 2013
along with the justification for entering into such contracts or
arrangements in Form AOC-2 does not form part of the report, as the
same is not applicable.
105
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Disclosure as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
e)
The Company has zero tolerance towards sexual harassment at
the workplace. The Company has adopted a Policy on Prevention,
Prohibition and Redressal of Sexual Harassment at Workplace in
line with the provisions of the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the
Rules thereunder.
The Company has complied with the provisions relating to the
constitution of the Internal Complaints Committee as per the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
During the year under review, the Company received 20 complaints
of sexual harassment, out of which 19 complaints have been resolved
by taking appropriate actions. The 1 pending complaint is under
investigation as on the date of this report.
Directors’ Responsibility Statement
Based on the framework of internal financial controls established
and maintained by the Company, work performed by the internal,
statutory, cost and secretarial auditors and external agencies
including audit of internal financial controls over financial reporting
by the statutory auditors and the reviews performed by Management
and the relevant Board Committees, including the Audit Committee,
the Board is of the opinion that the Company’s internal financial
controls were adequate and effective during Financial Year 2018-19.
Accordingly, pursuant to Section 134(5) of the Companies Act,
2013, the Board of Directors, to the best of its knowledge and
ability confirms:
that in the preparation of the annual accounts, the applicable
accounting standards have been followed and that there were
no material departures;
that we have selected such accounting policies and applied
them consistently and made judgements and estimates that are
reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year
and of the profit of the Company for that period;
that proper and sufficient care has been taken for the
maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding
the assets of the Company and for preventing and detecting
fraud and other irregularities;
the annual accounts have been prepared on a
that
going concern basis;
that proper internal financial controls were laid down and
that such internal financial controls were adequate and were
operating effectively; and
a)
b)
c)
d)
e)
106
that proper systems to ensure compliance with the provisions
of all applicable laws were in place and that such systems were
adequate and operating effectively.
Business Responsibility Report
The Securities and Exchange Board of India (‘SEBI’) requires
companies to prepare and present to stakeholders a Business
Responsibility Report (‘BRR’) in the prescribed format. SEBI, however,
allows companies to follow an internationally recognized framework
to report on the environmental and social initiatives undertaken
by the Company. Further, SEBI has on February 6, 2017 advised
companies that are required to prepare BRR to transition towards an
Integrated Report.
As stated earlier in the Report, the Company has followed the
framework of the International Integrated Reporting Council
to report on all the six capitals that are used to create long-term
stakeholder value. Our Integrated Report has been assessed and
KPMG has provided the required assurance. We have also provided
the requisite mapping of principles between the Integrated Report,
the Global Reporting Initiative (‘GRI’) and the BRR as prescribed by
SEBI. The same is available on our website www.tatasteel.com.
Subsidiaries, Joint Ventures and Associates
We have 237 subsidiaries and 54 associate companies (including
28 joint ventures) as on March 31, 2019. During the year under review,
the Board of Directors reviewed the affairs of material subsidiaries.
We have, in accordance with Section 129(3) of the Companies Act,
2013 prepared the consolidated financial statements of the Company
and all its subsidiaries, which form part of the Integrated Report.
Further, the report on the performance and financial position of each
subsidiary, associate and joint venture and salient features of their
Financial Statements in the prescribed Form AOC-1 is annexed to this
report (Annexure 6).
In accordance with the provisions of Section 136 of the Companies
Act, 2013 and the amendments thereto, read with the Listing
Regulations, the audited Financial Statements,
including the
Consolidated Financial Statements and related information of the
Company and financial statements of the subsidiary companies will
be available on our website www.tatasteel.com. These documents
will also be available for inspection during business hours at the
Registered Office of the Company and will also be kept open at the
venue of AGM till the conclusion of AGM.
The names of companies that have become or ceased to be
subsidiaries, and associates (including joint venture companies) are
disclosed in an annexure to this report (Annexure 7).
Auditors
Statutory Auditors
Members of the Company at the AGM held on August 8, 2017,
approved the appointment of Price Waterhouse & Co Chartered
Accountants LLP (‘PW’), Chartered Accountants, as the statutory
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARBOARD’S REPORT auditors of the Company for a period of five years commencing from
the conclusion of the 110th AGM held on August 8, 2017 until the
conclusion of 115th AGM of the Company to be held in the year 2022.
The extract of Annual Return in Form MGT 9 as per provisions of the
Companies Act, 2013 and Rules thereto is available on the Company’s
website at https://www.tatasteel.com/media/9083/mgt-9.pdf
The report of the Statutory Auditor forms part of the Annual Report.
The said report does not contain any qualification, reservation,
adverse remark or disclaimer. During the year under review, the
Auditors did not report any matter under Section 143 (12) of the
Act, therefore no detail is required to be disclosed under Section
134(3)(ca) of the Act.
Cost Auditors
In terms of Section 148 of the Companies Act, 2013 (‘Act’), the
Company is required to maintain cost records and have the audit
of its cost records conducted by a Cost Accountant. Cost records
are made and maintained by the Company as required under
Section 148(1) of the Act. The Board of Directors of the Company
has, on the recommendation of the Audit Committee, approved
the appointment of M/s Shome & Banerjee as the cost auditors of
the Company (Firm Registration No. 000001) for the year ending
March 31, 2020.
In accordance with the provisions of Section 148(3) of the Act read
with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the
remuneration payable to the Cost Auditors as recommended by the
Audit Committee and approved by the Board has to be ratified by
the Members of the Company. Accordingly, appropriate resolution
forms part of the Notice convening the AGM. We seek your support
in ratifying the proposed remuneration of `20 lakh plus applicable
taxes and reimbursement of out-of-pocket expenses payable to the
Cost Auditors for the Financial Year ending March 31, 2020.
M/s Shome & Banerjee have vast experience in the field of cost
audit and have been conducting the audit of the cost records of the
Company for the past several years.
The Cost Audit Report of the Company for the Financial Year
ended March 31, 2018 was filed by the Company in XBRL mode on
August 21, 2018.
Secretarial Auditors
Section 204 of the Companies Act, 2013 inter alia requires every listed
company to annex to its Board’s report, a Secretarial Audit Report,
given in the prescribed form, by a Company Secretary in practice.
The Board appointed Parikh & Associates, Practicing Company
Secretaries, as the Secretarial Auditor to conduct Secretarial Audit
of the Company for the Financial Year 2018-19 and their report is
annexed to this report (Annexure 8). There are no qualifications,
observations, adverse remark or disclaimer in the said Report.
The Board has also appointed Parikh & Associates as Secretarial
for
Auditor to conduct Secretarial Audit of the Company
Financial Year 2019-20.
Significant and Material Orders passed by the Regulators or
Courts
There have been no significant and material orders passed by the
regulators or courts or tribunals impacting the going concern status
and the Company’s future operations. However, Members’ attention
is drawn to the statement on contingent liabilities, commitments in
the notes forming part of the Financial Statements.
Particulars of Loans, Guarantees or Investments
Particulars of loans, guarantees given and investments made
during the year under review in accordance with Section 186 of the
Companies Act, 2013 is annexed to this report (Annexure 10).
Energy Conservation, Technology Absorption and Foreign
Exchange Earnings and Outgo
the energy conservation,
Details of
technology absorption
and foreign exchange earnings and outgo are annexed to this
report (Annexure 11).
Deposits
During the year under review, the Company has not accepted any
deposits from public in terms of the Companies Act, 2013. Further, no
amount on account of principal or interest on deposits from public
was outstanding as on the date of the balance sheet.
Secretarial Standards
The Company has in place proper systems to ensure compliance
with the provisions of the applicable secretarial standards issued by
The Institute of Company Secretaries of India and such systems are
adequate and operating effectively.
J. Acknowledgements
We thank our customers, vendors, dealers, investors, business
associates and bankers for their continued support during the year.
We place on record our appreciation of the contribution made by
employees at all levels. Our resilience to meet challenges was made
possible by their hard work, solidarity, co-operation and support.
We thank the Government of India, the State Governments where
we have operations, Governments of various countries and other
government agencies for their support and look forward to their
continued support in the future.
On behalf of the Board of Directors
sd/-
N. CHANDRASEKARAN
Chairman
DIN: 00121863
107
Extract of Annual Return
The extract of the Annual Return in Form MGT-9, as per provisions
of the Companies Act, 2013 and Rules thereto, is annexed to this
report (Annexure 9).
Mumbai
April 25, 2019
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 BOARD’S REPORT | DIVIDEND DISTRIBUTION POLICY
Declaration regarding Compliance by Board Members and Senior Management Personnel with the Code
of Conduct
This is to confirm that the Company has adopted the Tata Code of Conduct for its employees including the Managing Director and the
Whole-time Directors. In addition, the Company has adopted the Tata Code of Conduct for the Non-Executive Directors. Both these Codes are
available on the Company’s website at www.tatasteel.com
I confirm that the Company has in respect of the Financial Year ended March 31, 2019, received from the Senior Management Team of the
Company and the Members of the Board, a declaration of compliance with the Code of Conduct as applicable to them.
For the purpose of this declaration, Senior Management Team means the Members of the Management one level below the Chief Executive
Officer & Managing Director as on March 31, 2019.
Mumbai
April 25, 2019
sd/-
T. V. NARENDRAN
Chief Executive Officer &
Managing Director
DIN: 03083605
108
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
ANNEXURE 1
Dividend Distribution Policy
1. Preamble
1.1 The Dividend Distribution Policy (hereinafter referred to as the
‘Policy’) has been developed in accordance with the extant
provisions of the Companies Act, 2013 and SEBI regulations.
1.2 The Board of Directors (the ‘Board’) of Tata Steel Limited
(the ‘Company’) has adopted the Policy of the Company
as required in terms of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
(the ‘Listing Regulations’) at its meeting held on April 20, 2017.
1.3 Under Section 2(35) of the Companies Act, 2013, ‘Dividend’
includes any interim dividend. In common parlance, ‘dividend’
means the profit of a company, which is not retained in
the business and is distributed among the shareholders in
proportion to the amount paid-up on the shares held by them.
In case of listed companies, Section 24 of the Companies
Act, 2013 confers on SEBI, the power of administration of the
provisions pertaining to non-payment of dividend.
2. Effective Date
The Policy shall become effective from the date of its adoption
by the Board i.e. April 20, 2017.
3. Purpose, Objectives and Scope
3.1 The Securities and Exchange Board of India (‘SEBI’) vide its
Gazette Notification dated July 8, 2016 has amended the
Listing Regulations by inserting Regulation 43A in order to
make it mandatory to have a Dividend Distribution Policy in
place by the top five hundred listed companies based on their
market capitalisation calculated as on the 31st day of March
of every year.
3.2 As the Company is one of the top five hundred companies as
on March 31, 2016, the Board has laid down a broad framework
for distribution of dividend to its shareholders and/or retaining
or plough back of its profits. The Policy also sets out the
circumstances and different factors for consideration by the
Board at the time of taking such decisions of distribution or of
retention of profits, in the interest of providing transparency to
the shareholders.
3.3 Declaration of dividend on the basis of parameters in addition
to the elements of this Policy or resulting in amendment
of any element or the Policy will be regarded as deviation.
Any such deviation on elements of this Policy in extraordinary
circumstances, when deemed necessary in the interests of
the Company, along with the rationale will be disclosed in the
Annual Report by the Board.
3.4 The Policy reflects the intent of the Company to reward its
shareholders by sharing a portion of its profits after retaining
sufficient funds for growth of the Company. The Company shall
pursue this Policy, to pay, subject to the circumstances and
factors enlisted hereon, progressive dividend, which shall be
consistent with the performance of the Company over the years.
4.
Parameters to be considered while declaring
Dividends
4.1 Financial Parameters
a)
b)
c)
d)
e)
f)
g)
Magnitude of current year’s earnings of the Company: Since
dividend is directly linked with the availability of earning over
the long haul, the magnitude of earnings will significantly
impact the dividend declaration decisions of the Company.
Operating cash flow of the Company: If the Company cannot
generate adequate operating cash flow, it may need to rely on
outside funding to meet its financial obligations and sometimes
to run the day-to-day operations. The Board will consider the same
before its decision whether to declare dividend or retain its profits.
Return on invested capital: The efficiency with which the
Company uses its capital.
Cost of borrowings: The Board will analyze the requirement
of necessary funds considering the long-term or short-term
projects proposed to be undertaken by the Company and
the viability of raising funds from alternative sources vis-a-vis
plough back its own funds.
Obligations to lenders: The Company should be able to repay
its debt obligations without much difficulty over a reasonable
period of time. Considering the volume of such obligations and
time period of repayment, the decision of dividend declaration
shall be taken.
Inadequacy of profits: If during any financial year, the Board
determines that the profits of the Company are inadequate, the
Board may decide not to declare dividends for that financial year.
Post dividend EPS: The post dividend EPS can have strong
impact on the funds of the Company, thus, impacting the overall
operations on day-to-day basis and therefore, affects the profits
and can impact the decision for dividend declaration during a
particular year.
4.2 Proposals for major capital expenditures
The Board may also take into consideration the need for
replacement of capital assets, expansion and modernisation or
augmentation of capital asset including any major sustenance,
improvement and growth proposals.
109
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
DIVIDEND DISTRIBUTION POLICY
4.3 Agreements with lending institutions/ Bondholders/
Debenture Trustees
The decision of dividend pay-out shall also be affected by
the restrictions and covenants contained in the agreements
as may be entered into with the lenders of the Company
from time to time.
Target Dividend
6.
6.1 The Company has adopted a progressive dividend policy,
intending to maintain or grow the dividend each year.
6.2 The Company targets to pay dividend up to 50% of profit after tax
of the Company subject to the applicable rules and regulations.
4.4 Statutory requirements
The Company shall observe the relevant statutory requirements
including those with respect to mandatory transfer of a
certain portion of profits to any specific reserve such as
Debenture Redemption Reserve, Capital Redemption Reserve,
etc. as provided in the Companies Act, 2013, which may be
applicable to the Company at the time of taking decision with
regard to dividend declaration or retention of profit.
5. Factors that may affect Dividend Payout
5.1 External Factors
Macroeconomic conditions: Considering the current and
future outlook of the economy of the Country, the policy
decisions that may be formulated by the Government and
other similar conditions prevailing in the global market which
may have a bearing on or affect the business of the Company,
the management may consider retaining a larger part of the
profits to have sufficient reserves to meet the exigency during
unforeseen circumstances.
Cost of raising funds from alternative sources: If the cost of
raising funds to pursue its planned growth and expansion plans
is significantly higher, the management may consider retaining
a larger part of the profits to have sufficient funds to meet the
capital expenditure plan.
Taxation and other
regulatory provisions: Dividend
distribution tax or any tax deduction at source as required by
applicable tax regulations in India, as may be applicable at the
time of declaration of dividend. Any restrictions on payment of
dividends by virtue of any regulation as may be applicable to the
Company at the time of declaration of dividend.
5.2 Internal Factors
• The Company’s long-term growth strategy which requires to
conserve cash in the Company to execute the growth plan.
• The liquidity position of the Company including its working
capital requirements and debt servicing obligations
• The trend of the performance/reputation of the Company that
has been during the past years determine the expectation of
the shareholders.
7.
Circumstances under which the Shareholders
can or cannot expect Dividend
7.1 The Board shall consider the factors provided under Clause 4
and 5 above, before determination of any dividend payout after
analysing the prospective opportunities and threats, viability of
the options of dividend payout or retention, etc.
7.2 The decision of dividend payout shall, majorly be based on
the aforesaid factors considering the balanced interest of the
shareholders and the Company.
8. Manner of Dividend Payout
8.1 Given below is a summary of the process of declaration and
payment of dividends, and is subject to applicable regulations
8.2 In case of final dividends:
a)
b)
c)
Recommendation, if any, shall be done by the Board,
usually in the Board meeting that considers and approves
the annual financial statements, subject to approval of the
shareholders of the Company.
The dividend as recommended by the Board shall be
approved/declared at
the annual general meeting
of the Company.
The payment of dividends shall be made within 30 days
from the date of declaration to the shareholders entitled
to receive the dividend on the record date/book closure
period as per the applicable law.
8.3 In case of interim dividend:
a)
Interim dividend, if any, shall be declared by the Board.
b)
c)
d)
Before declaring interim dividend, the Board shall consider
the financial position of the Company that allows the
payment of such dividend.
The payment of dividends shall be made within 30 days
from the date of declaration to the shareholders entitled
to receive the dividend on the record date as per the
applicable laws.
In case no final dividend is declared, interim dividend paid
during the year, if any, will be regarded as final dividend in
the annual general meeting.
110
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
9.
Policy as to how the retained earnings will be
utilised
9.1 The Board may retain its earnings in order to make better use of
the available funds and increase the value of the stakeholders
in the long run.
9.2 The decision of utilisation of the retained earnings of the
Company shall be based on the following factors:
• Long-term strategic plans
• Augmentation/Increase in production capacity
• Market expansion plan
• Product expansion plan
• Modernisation plan
• Diversification of business
• Replacement of capital assets
• Balancing the Capital Structure by de-leveraging the
company
• Other such criteria as the Board may deem fit from time
to time.
10. Provisions in regard to various classes of shares
10.1 The Company has only one class of equity shareholders and
does not have any issued preference share capital. However, in
case Company issue different class of equity shares any point
in time, the factors and parameters for declaration of dividend
to different class of shares of the Company shall be same as
covered above.
10.2 The payment of dividend shall be based on the respective rights
attached to each class of shares as per their terms of issue.
10.3 The dividends shall be paid out of the Company’s distributable
profits and/or general reserves, and shall be allocated among
shareholders on a pro-rata basis according to the number of
each type and class of shares held.
10.4 Dividend when declared shall be first paid to the preference
shareholders of the Company, if any as per the terms and
conditions of their issue.
11. Applicability of the policy
11.1 The Policy shall not apply to:
• Determination and declaring dividend on preference shares
as the same will be as per the terms of issue approved by
the shareholders
• Distribution of dividend in kind, i.e. by issue of fully or partly
paid bonus shares or other securities, subject to applicable law
• Distribution of cash as an alternative to payment of dividend
by way of buyback of equity shares
12. Reporting and Disclosure
As prescribed by Regulation 43A of the Listing Regulation,
this Policy shall be disclosed on the Company’s website and
the Annual report.
13. Review of the Policy
13.1 This Policy shall be subject to review as may be deemed
necessary as per any regulatory amendments.
13.2 Such amended Policy shall be periodically placed before the
Board for adoption immediately after such changes.
14. Compliance Responsibility
Compliance of this Policy shall be the responsibility of the
Company Secretary of the Company who shall have the power
to ask for any information or clarifications from the management
in this regard.
111
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
MANAGEMENT DISCUSSION AND ANALYSIS
MANAGEMENT DISCUSSION AND ANALYSIS
ANNEXURE 2
Management Discussion and Analysis
is
A. Overview
The following operating and financial review
intended to
convey the Management’s perspective on the financial and
operating performance of the Company at the end of the
Financial Year 2018-19. This Report should be read in conjunction
with the Company’s financial statements, the schedules and notes
thereto and other information included elsewhere in the Integrated
Report. The Company’s financial statements have been prepared
in accordance with the Indian Accounting Standards (‘Ind AS’)
complying with the requirements of the Companies Act, 2013, as
amended and regulations issued by the Securities and Exchange
Board of India (‘SEBI’) from time to time.
This report is an integral part of the Board’s Report. Aspects on industry
structure and developments, outlook, risks, internal control systems
and their adequacy, material developments in human resources and
industrial relations have been covered in the Board’s Report and is
incorporated herein by reference and forms an integral part of this
report. Your attention is also drawn to sections on Strategy, Risk and
Opportunities forming part of the Integrated Report. This section
gives significant details on the performance of the Company.
B. Tata Steel Group Operations
1. Tata Steel India (TSI)
Turnover
EBITDA
Profit before tax (PBT), before exceptional
Profit before tax (PBT)
Profit after tax (PAT), before exceptional
Profit after tax (PAT)
FY 19
70,611
20,744
16,341
16,227
10,647
10,533
(` crore)
FY 18
60,519
15,800
10,005
6,638
7,536
4,170
a) Operations
Hot Metal
Crude Steel
Saleable Steel
Sales
FY 19
14.24
13.23
12.98
12.69
(mn tonnes)
Change (%)
3
6
6
4
FY 18
13.86
12.48
12.24
12.15
The saleable steel production and sales trend over the years is
as follows:
PRODUCTION AND SALES OF STEEL DIVISION (k tonnes)
Production
Sales
3
7
0
9
,
0
5
7
8
,
8
9
6
9
,
3
4
5
9
,
7
3
2
2
1
,
1
5
1
2
1
,
0
8
9
2
1
,
2
9
6
2
1
,
1
5
3
1
1
,
3
7
9
0
1
,
FY15
FY16
FY17
FY18
FY19
During the Financial Year 2018-19, the saleable steel production
stood at 12.98 MnT which is ~6.07% increase over the previous
year. The hot metal production for the Financial Year 2018-19 was at
14.24 MnT which is 2.8% increase over previous year. The improvement
in performance is due to stabilisation of operations and the ongoing
improvement initiatives undertaken by the Company through the
Shikhar25 program. Accordingly, Tata Steel Jamshedpur (‘TSJ’) has
achieved the Indian benchmark in specific consumption of energy,
refractory, pulverised coal injection and coke rate.
At Tata Steel Kalinganagar (‘TSK’), the commercial production at Phase-I
of 3 MnTPA plant commenced since June 2016 and has achieved the
rated capacity during the Financial Year 2018-19. TSK strives to maintain
a world-class environment in the premises by following environmental
management systems in accordance with rules and regulations framed
by the Government and have comprehensive processes in place for
ensuring health and safety of people, plant and equipment. The plant
is designed to have minimal water foot print, by-product gas based
power generation leading to reduction in carbon footprints, Coke
Dry Quenching technology, zero-effluent discharge and significant
reduction of noise and dust pollution.
Financial Year 2018-19 saw a significant quality ramp-up in steel
making and rolling ahead of plan with successful development of
new products that was well accepted by customers.
After successful ramp up, TSK has embarked upon second phase of
expansion which will take its production capacity to 8 MnTPA.
112
112
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR b) Marketing and Sales Initiatives
During Financial Year 2018-19, our Steel Business Unit (‘SBU’) has
achieved a growth in sales of ~4% over previous year contributed
primarily from sales in domestic market.
The break-up of sales in our various segments and the break-up of
domestic sales to exports are as follows:
Automotive & Special products
Branded Products, Retail & Solutions
Industrial Products & Projects
Domestic
Exports
Domestic + Exports
Transfers (Wires, Tubes, Agrico, Tinplate)
Total Deliveries
(mn tonnes)
FY 18
1.94
3.80
4.24
9.98
1.15
11.13
1.02
12.15
FY 19
2.12
3.90
4.69
10.71
1.06
11.77
0.92
12.69
Following are the Key Business Initiatives and achievements of
Financial Year 2018-19:
Automotive and Special Products: The Company achieved annual
sales in Automotive sector of 2.12 MnT in Financial Year 2018-19 as
against 1.94 MnT in the previous Financial Year. Further, the Company
registered a growth of 8.2% as against industry growth of 6.3% and
has retained its leadership in automotive flat products with a market
share of 42% in the Financial Year 2018-19. Sales from Jamshedpur
Continuous Annealing & Processing Company Private Limited
(‘JCAPCPL’) grew by 40% year-on-year to 289 kilo tonnes in Financial
Year 2018-19 as against 206 kilo tonnes in previous year.
During Financial Year 2018-19, as a recognition of various initiatives
and contributions, the Company received various accolades and
awards from its key customers and automotive leaders, including the
‘Overall Performance Award’ for exhibiting exemplary performance
in Quality, Cost, Delivery and Development for the 4th consecutive
year and ‘Gold Business Alignment Award’ in recognition of its efforts
to cater to increased volumes.
Branded Products, Retail and Solutions: During the Financial
Year 2018-19, the Company achieved an annual sales of branded
products at 3.9 MnT thereby registering growth of ~3% over
previous year. Brands like Tata Tiscon and Tata Astrum achieved
higher sales of 1.43 MnT and 1.52 MnT respectively during the
Financial Year 2018-19, thereby registering a year-on-year growth
of 3.5% and 9% respectively. The Company’s first portal for the
individual home builder, ‘Aashiyana’, crossed the milestone of `100
crore turnover in Financial Year 2018-19, since its launch in May 2018.
The portal now hosts six retail brands – Tata Tiscon, Tata Pravesh, Tata
Wiron, Tata Structura, Tata Agrico and Tata Shaktee and hosts over
5,000 service partners.
Industrial Products, Projects and Exports: The Company continues
to enrich its product portfolio with its focus towards value added
and engineering segments. The annual sales of value added flat
products in industrial segment grew by 27% year-on-year with a
total sales volume of 0.585 MnT. The Company continues to be the
industry leader in Liquid Petroleum Gas and Medium & High Carbon
segments. During the year under review, the Engineering Segment
(Pre-Engineered Building, Lifting & Excavation, Construction
& Projects and Oil & Gas) achieved annual sales of 0.450 MnT
thereby registering a growth of 49% year-on-year. Despite rising
protectionism, the Company maintained its presence in international
markets and crossed 1 MnT in exports for second consecutive year.
The Company has increased its downstream businesses such as Cut &
Bend with Tiscon Readybuild, recording annual sales of 0.144 MnT in
the Financial Year 2018-19 as against 0.138 MnT in previous financial
year. Further, ‘Sm@rtFAB’ - India’s first branded welded wire fabric
achieved an annual sales of ~1,000 tonnes.
Services & Solutions: The Company has further strengthened its
position in Service & Solutions space by providing better consumer
connect and experience. Since inception, 1 lakh units of Tata Pravesh
have been installed and over 10,000 consumers have been served
until this financial year. During the year under review, the turnover
from Tata Pravesh Doors and Windows have increased by ~80% as
compared to previous year. Further, another premium Services
& Solutions brand – ‘Nest-In’ has doubled its business during
Financial Year 2018-19 compared to previous year.
Digital Initiatives: During the Financial Year 2018-19, the Company
has rolled out various digital initiatives across various customer
groups. E-selling platform ‘Aashiyana’ was launched for multiple
B2C brands, ‘COMPASS’ - a digital supply chain visibility solution
was rolled out to select B2B customers and an initiative called
‘DigEca’ was undertaken to capture lead management for Emerging
Corporate Accounts (‘ECAs’) for making the process convenient for
the customers. These initiatives have contributed to the growth of
Company’s turnover for the Financial Year 2018-19.
c) Sustainable Steel Business Initiatives
i) New Materials Business (‘NMB’)
The NMB was set up during the Financial Year 2018-19 with a vision
to partially insulate revenues from cyclicity of the steel business and
respond to growing demands of alternative materials from a range
of industries.
NMB currently focusses on Fibre Reinforced Polymer (‘FRP’)
composites with products mainly made of Glass Reinforced Polymer
(‘GRP’). FRP is a composite material comprising glass/carbon/any
other fibre, embedded in a resin matrix. Its key benefits include
lightweight, corrosion resistance, high strength to weight ratio
and design freedom. NMB successfully completed India’s first ever
FRP based foot over bridge project in March 2019 and sees a huge
potential for such bridges in the country.
Further, the Company has set up a Graphene Centre to explore the
potential usage of Graphene in a variety of applications. The main
application was the development of anti-corrosion coatings on
cut and bend rebars. Brand GFX Ultima Superlinks launched in
2018 has performed well and is proposed to be upscaled in the
Financial Year 2019-20. The Company is pursuing to develop markets
in industrial, retail, mobility, energy, wellness and medical verticals.
113
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT DISCUSSION AND ANALYSIS
The Company is one of the first entrants from the organised sector in
India and large corporate groups in the composites industry working
on a growth strategy through current manufacturing partners and
other inorganic means.
During the Financial Year 2018-19, FAMD achieved 19% growth in its
production primarily in dolomite for meeting the requirements of TSJ
and TSK. However, sales were lower than previous year due to lower
availability of rakes for despatches.
ii) Steel Recycling business
Steel is 100% recyclable and can be recycled to create new steel
products in a closed-material loop, making it a perfect candidate for
a circular economy. Recycled steel maintains the inherent properties
of the original steel.
Steel demand in India, is poised to grow with the scrap demand at
present being ~30 MnTPA, with ~5 MnTPA imported from outside
India. The supply is likely to increase due to some impending
Government policies, rapid urbanisation and economic activity.
Steel production through the Electric Arc Furnace (‘EAF’) route, has
potential to reduce carbon emissions, resources and consumption by
60-70%, compared to traditional steel production routes.
Sensing these opportunities, the Company started the Steel
Recycling business to meet the long-term growing demands in a
more sustainable manner.
Our steel recycling business seeks to collaborate with the Government
on multiple frontiers to formalise the scrap industry.
India’s first State of Art Scrap Processing Centre is being set-up
through an outsourced model, on BOO (Built, Own, Operate)
basis, with a capacity to process 0.5 MnT of scrap annually.
The commercial production is expected to begin in the latter half of
the Financial year 2019-20.
d) Ferro Alloys and Minerals Division
Our Ferro Alloys and Minerals Division (‘FAMD’) is one of the leading
chrome alloy producers in the world with operations spanning
across continents. In India, it is the largest producer of ferro chrome
and leading producer of manganese alloy. It’s production facilities
(from Mines to Market) are integrated with production bases
spanning across four Indian States and having customers across
the world. FAMD has captive plants at Joda, Bamnipal and Gopalpur
(since June 2018) and have Ferro Processing Centres (‘FPCs’) under
a business partnering agreement for production of Chrome and
Manganese alloys.
PRODUCTION AND SALES OF FAMD (k tonnes)
Production
Sales
0
4
7
5
8
5
5
1
3
5
1
3
0
2
3
1
,
7
2
3
1
,
0
7
2
1
,
1
4
2
1
,
1
4
4
1
,
4
1
1
1
,
FY15
FY16
FY17
FY18
FY19
114
The division has launched a digital initiative ’Drishti’ to enable
end to end tracking of shipments and increase of visibility in the
outbound supply chain to eliminate weight loss between plant
and end customer.
The division won the ‘National Safety Award 2016’ from his excellency
Hon’ble President of India and ‘Kalinga Safety Award 2017’ from his
excellency Governor of Odisha.
e) Tubes Division
Our Tubes Strategic Business Unit is a leading manufacturer of
pipes and tubes in India having its manufacturing facility situated
at Jamshedpur with an annual production capacity of ~500 kilo
tonnes. The three main lines of businesses are conveyance tubes
(Tata Pipes), structural tubes (Tata Structura), precision tubes for auto
and boiler segments.
PRODUCTION AND SALES OF TUBES DIVISION (k tonnes)
Production
Sales
4
4
4
4
4
4
2
6
4
9
5
4
7
8
4
3
8
4
9
0
5
1
1
5
3
2
5
4
2
5
FY15
FY16
FY17
FY18
FY19
During the Financial Year 2018-19, the division achieved 3% growth
in sales over previous year mainly contributed by higher sales of
‘Structura’ due to growth in demand in the construction sector.
The division is focusing on increase in revenues from branded
products and has launched two new brands in the retail segment
- Tata Structura Z+ and Tata Pipes Jeevan along with thin organic
coating spray. The division has leveraged advance technology across
functions to bring in more operational efficiencies and accordingly
introduced e-initiatives in supply chain ‘COMPASS’, ‘TEJ app’ for
channel partners and ‘Aashiyana’ - an e-commerce portal for online
sale of tubes. Post-acquisition of Bhushan Steel Limited on May 18,
2018 (renamed Tata Steel BSL Limited), Tubes SBU has launched
Tata Structura and Tata Pipes for its B2B and B2SME customers in
infrastructural and industrial segments.
The division has been awarded the GreenPro certification for Tata
Structura & Tata Pipes by CII Green Building Council and ‘Making of
Developed India’ award for Brand & Marketing excellence by World
Federation of Marketing.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR f)
Industrial By-Products and Management Division
PRODUCTION AND SALES OF WIRES DIVISION (k tonnes)
Our Industrial By-products and Management Division (‘IBMD’)
handles variety of by-products in the entire value chain. The business
operates on the principle of 3Rs (Reduce, Reuse, Recycle), thereby
ensuring contribution towards the green journey of Tata Steel.
With the objective of harnessing ‘Value from waste and by-products’,
IBMD is committed to becoming a knowledge driven business unit
leveraging digital and innovation as key pillars. The division has also
delved into downstream value enhancement of by-products which
serve as quality benchmarks in the industry.
During the year under review, the division saw substantial growth
in its brands Tata Nirman and Tata Aggreto mainly contributed by fly
ash bricks and road making applications.
By-product utilisation at the Plant increased substantially by ~26%
over the previous year.
BY-PRODUCT UTILISATION AT PLANT AND SALES OF
IBM DIVISION (k tonnes)
By-product utilisation
Sales
5
6
8
0
9
7
7
0
9
0
8
9
4
8
9
2
5
1
4
9
1
0
3
2
2
1
3
5
9
3
FY15
FY16
FY17
FY18
FY19
During the year under review, the division has achieved best-ever
100% LD Slag Utilisation at TSJ and TSK, successfully implemented
E-inspection (digital material inspection) to achieve benefits on safety,
reduced cycle time and increase in customer base. Tata Aggreto was
approved for usage in rural roads by Indian Road Congress for the
first time in India.
The division has been awarded ‘Company of the year’ at the 14th
Global Slag Conference and Exhibition 2019 in Aachen, Germany for
its work in innovative applications of Slag.
g) Wires Division
Our Global Wires India (‘GWI’) Business Unit is the largest manufacturer
of steel wires in India. The plants are located at Tarapur, Pithampur
and Jamshedpur, contributing to nearly 70% of its sales volume, with
remaining 30% being catered by Wires Processing Centres. GWI caters
to the requirements of the Indian Automobile Industry, Construction
Industry and the rural markets with various products.
Production
Sales
7
0
3
9
0
3
2
0
3
0
1
3
1
2
3
0
2
3
0
6
3
6
6
3
3
8
3
5
8
3
FY15
FY16
FY17
FY18
FY19
During the Financial Year 2018-19, the division achieved 6%
growth in production and 5% growth in sales due to a consistent
year-on-year growth in infrastructure at 11% and in retail at 7%.
The division introduced two new products – Wiron Aayush Farming
and GI Knotted Fence.
The division’s Wire Plant in Tarapur has been awarded the national
award for achieving ‘manufacturing competitiveness’ by Indian
Research Institute of Manufacturing.
h) Bearings Division
its manufacturing
The Bearings Division is one of India’s largest quality bearing
manufacturers, having
facility situated at
Kharagpur, West Bengal with an annual production capacity of
40 million bearing numbers. The Company is foremost in the
manufacturing of a wide variety of bearings and auto assemblies
and product range includes Ball Bearings, Taper Roller Bearings, Hub
Unit Bearings, Clutch Release Bearings, Double Row Angular Contact
Bearings, Centre Bearings and Magneto Bearings. It is the only
bearings manufacturer in India to win the TPM Award (2004) from
Japan Institute of Plant Maintenance, Tokyo.
PRODUCTION AND SALES OF BEARINGS
DIVISION (mn nos.)
Production
Sales
5
3
4
3
7
3
6
3
8
3
8
3
8
3
9
3
7
3
7
3
FY15
FY16
FY17
FY18
FY19
The sales have reduced by 5% over previous year due to drop in
production in the automobile segment, low priced imports from
China and increase in cost of basic raw materials - steel and alloy steel.
The Division has improved plant availability by debottlenecking and
leveraging its existing resources for sustainable operations.
115
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT DISCUSSION AND ANALYSIS
i)
Shikhar25 (Operational Improvement Programmes)
The production and sales performance of TSBSL is given below:
The Shikhar25 program, a multi-divisional, multi-location, cross
functional program, completed four years in Financial Year 2018-19.
The Company has been pursuing the ‘journey for improvement’
since its inception. The continuous learning and improvement
journey has been one of the foundation pillars for driving benchmark
performance across the value chain.
The programme covers entire steel value chain with structured
collaboration from Raw Materials division to Marketing & Sales
division as an umbrella initiative. It intends to drive break through
improvement projects with best of rigor and simplified governance,
without compromising on safety, environment and people standards
and in collaboration with internal/external stakeholders to achieve
best in class operational performance.
During the year under review, basis previous years’ learnings, the
Shikhar25 programme was extended to tap potentials for Cross
cutting themes across divisions and its facility at TSK. Three new
IMPACT Centers were established namely Tubes, JUSCO and Finance
& Accounts. All the Impact Centres focussed on new technology
adaptation in collaboration with suppliers and integrating digital
initiatives to explore new horizons of improvements. Key levers
for improvement were improvement in sale of enriched products,
increase in throughput at West Bokaro collieries, maximising captive
iron ore supply to Tata Steel BSL Limited (formerly Bhushan Steel
Limited), cost reduction of clean coal from Jharia and iron ore,
reduction of solid fuel in pellet plant, reduction in graphite electrode
consumption in LDs, HM +Scrap yield at LDs, cost reduction of Lime
Consumption & Ferro Alloys at LDs, reduction in inbound/outbound
logistics spend base, packaging cost, energy efficiency, cost
optimisation for other procured goods and services amongst others.
Total improvement savings achieved in the Financial Year 2018-19
is `2,801 crore.
2. Tata Steel BSL Limited (formerly Bhushan Steel Limited)
The Company acquired controlling stake in Bhushan Steel Limited
[renamed Tata Steel BSL Limited (‘TSBSL’)] vide National Company
Law Tribunal (‘NCLT’) Order dated May 15, 2018 under the Insolvency
and Bankruptcy Code (‘IBC’). The Financial Statements of TSBSL have
been consolidated effective May 18, 2018 and hence previous year’s
figures are not comparable.
The turnover and profit/loss figures of TSBSL for the Financial Year
2018-19 are given below:
Turnover
EBITDA
Profit before tax (PBT), before exceptional
Profit before tax (PBT)
Profit after tax (PAT), before exceptional
Profit after tax (PAT)
(` crore)
FY 19
18,376
3,033
(922)
(881)
(922)
(881)
116
Crude Steel
Saleable Steel
Sales
(mn tonnes)
FY 19
3.58
3.50
3.57
During the Financial Year 2018-19, the saleable steel production
stood at 3.5 MnT and the crude steel production stood at 3.58 MnT.
The long-term sustainability of TSBSL requires structured and
accelerated operational excellence and
integration with Tata
Steel. Post the acquisition, many improvement projects have been
undertaken at TSBSL. We have put in place strategies to optimise the
use of the existing assets and reach higher level of capacity utilisation
to produce value added grades, increase the customer base and
bring about development in domestic market and value creation
through synergy initiatives.
TSBSL is working towards stabilising the operations at the plant,
debottlenecking existing facilities, raising its standards to the
benchmark demonstrated performance and realising synergies.
Further, TSBSL plans to achieve benchmark performance across all
areas to achieve rated capacity and generate strong cash flows.
In July 2018, TSBSL
launched an accelerated performance
improvement plan to achieve industry benchmark in operational
excellence and customer focus with the agenda of deep change
management encompassing employee engagement and capability
building. Accordingly, the IMPACT Centre (‘IC’) methodology along
with the D0-D4 stage gate approach (based on degree of hardness)
was leveraged to drive this program.
Under the program, 13 ICs were rapidly setup and stabilised
across the entire value chain
laying down the culture for
continuous improvement, ownership and drive. These ICs are
working on over 500 ideas including synergy initiatives across
the value chain. The benefits achieved from these initiatives in the
Financial Year 2018-19 is ~`630 crore.
3. Tata Steel Europe (‘TSE’)
Global GDP growth in 2018 was 3.2%. The eurozone economy grew
by 1.8% in 2018 compared to 2.5% in 2017. Growth was negatively
impacted by a slowing Chinese economy and US protectionism.
The UK economic growth eased to 1.4% in 2018 compared to 1.7% in
2017 mainly due to ongoing uncertainty towards Brexit which caused
businesses to postpone decisions regarding future investments.
As economic growth weakened, capacity utilisation in the global steel
industry reduced causing steel prices and margins to fall. The World
Steel Association predicts that EU steel demand is expected to grow
by only 0.5% in 2019. Margins are expected to remain under pressure
in 2019 as further reductions to global overcapacity is unlikely.
Negotiations between the EU and the UK in relation to Brexit and the
evolving political situations are being monitored by the TSE Brexit
Working Group, which includes an assessment of the threats and
opportunities that Brexit may impose on the EU steel market and
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR the TSE customers. TSE is committed to maintaining close dialogue
with its customers and partners to ensure that all potential Brexit
scenarios are planned for, short-term disruption is minimised and
opportunities for the re-alignment of supply chains are identified.
The European Commission granted the UK a 6-month extension to
Brexit till October 31, 2019 averting the UK to leave the EU without
a deal. As part of its risk management, TSE has identified a number
of mitigating actions it would implement for a ‘no-deal’ scenario.
Due to the ongoing Brexit uncertainty, the pound has continued to
remain weak against major currencies in the Financial Year 2018-19
averaging 1.13 against the euro (2017-18: 1.14) and 1.32 versus the
US dollar (2017-18: 1.33).
The turnover and profit/loss figures of TSE (continuing operations)
are given below:
Turnover
EBITDA
Profit before tax (PBT), before exceptional
Profit before tax (PBT)
Profit after tax (PAT), before exceptional
Profit after tax (PAT)
FY 19
64,777
5,414
(1,078)
(1,147)
(1,405)
(1,475)
(` crore)
FY 18
59,985
3,713
(1,803)
12,048
(2,164)
11,687
The production and sales performance of TSE (continuing operations)
is given below:
Liquid Steel Production
Deliveries
FY 19
10.31
9.64
FY 18
10.69
9.99
(mn tonnes)
Change (%)
(4)
(4)
TSE’s revenue of `64,777 crore for the Financial Year 2018-19
increased by 8% over previous year primarily owing to an increase
in average revenue per tonne due to improved market conditions
partly offset by reduction in deliveries.
in Financial Year 2018-19 comprised
The principal activities
manufacture and sale of steel products throughout the world.
TSE’s continuing operations produced carbon steel by the basic
oxygen steelmaking method at its integrated steelworks in the
Netherlands at IJmuiden and in the UK at Port Talbot. During Financial
Year 2018-19 these plants produced 10.3 MnT of liquid steel.
Whilst the Group seeks to increase its differentiated/premium
business which is less dependent on market price movements, it
still retains focus in both the UK and IJmuiden on improving its
operations, consistency, and taking measures to protect against
unplanned interruptions and property damage.
Strip Products Mainland Europe – During the Financial Year
2018-19, the liquid steel production at IJmuiden Steel Works,
Netherlands was at 7.1 MnT which remained unchanged compared
to previous year. Record annual outputs of 1.4 MnT were achieved
at the Direct Sheet Plant. Further, during the year under review,
Strip Products Mainland Europe continued with its ‘Sustainable
Profit’ programme which targets improvements to delivery and
yield performance, commercial mix and reduce operating costs
and unplanned downtime. Further progress was also achieved in its
‘Strategic Asset Roadmap’ (‘STAR’) capital investment programme
to support the strategic growth of differentiated, high value
products in the automotive, lifting & excavating, energy and power
market sectors.
The World Economic Forum announced that Tata Steel IJmuiden
had been inducted into its prestigious community of ‘Lighthouses’
for its Advanced Analytics-programme, a distinction awarded to
manufacturing facilities which are leaders in the technologies of the
Fourth Industrial Revolution. In 2018, Tata Steel IJmuiden celebrated
its centennial anniversary. The festivities were highly valued by the
employees and visitors to the site.
Strip Products UK – During the year under review, the liquid steel
production at Port Talbot Steel Works, Wales was at 3.2 MnT which
was lower by 0.4 MnT from the previous year due to an outage to
extend the life of Blast Furnace 5. During Financial Year 2018-19 Strip
Products UK further optimised its new automotive finishing line
(‘AFL’) and extensive work was undertaken on the power plant to
extend its generation capability. Further progress was achieved in
its ‘Delivering Our Future’ improvement initiative programme that
is now incorporated more deeply across the full UK supply chain.
In addition, the ‘Sustainable Operational Excellence’ programme
was rolled out across the hub with a significant impact on daily
management activities through the mass engagement and coaching
of points of leadership and their teams.
Strategic Activities
During the year under review,
• TSE signed definitive agreements with
thyssenkrupp AG
to combine the European Steel Business into a 50:50 joint
venture, named thyssenkrupp Tata Steel BV on June 30, 2018.
The transaction is subject to merger control clearance in several
jurisdictions, including the European Union.
• TSE successfully completed a major project to extend the life of
Blast Furnace 5 at Port Talbot. The project comprised a capital
investment of £56m and is expected to extend the life of the
furnace by 5 to 7 years and improve its operational stability.
• TSE announced its intention to divest its Cogent, Kalzip, Firsteel,
Engineering Steels Service Centre (Wolverhampton) and Tata
Steel Istanbul Metals (Colours) businesses. The disposal of the
Kalzip business to Donges SteelTec GmbH was completed on
October 1, 2018. Discussions to divest the other businesses
remain ongoing.
Awards and Accolades:
• TSE won an award for its innovative construction software ‘BIM DNA
Profiler’ which was named the best new product at the BIM show.
• TSE won an award for ‘Excellence in Education and Training’ at the
Steelie Awards 2018.
• TSE has been named a sustainability champion by the World
Steel Association.
117
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 4. South East Asia Operations
On January 28, 2019, T S Global Holdings Pte. Ltd. (‘TSGH’) (an
indirect wholly-owned subsidiary of the Company) executed
definitive agreements to divest its entire equity stake in NatSteel
Holdings Pte. Ltd. (‘NSH’) and Tata Steel (Thailand) Public Company
Ltd. (‘TSTH’) As per the agreement, the divestment will be made
to a company, to be formed, in which 70% equity shares will be
held by an entity controlled by HBIS Group Co., Ltd. and 30% will
be held by TSGH.
The assets and liabilities of these companies have been classified
as held for sale as on March 31, 2019 and have been presented
separately in the Consolidated Balance Sheet of Tata Steel. The
results for the current period of these companies have been disclosed
within discontinued operations and results for the previous periods
have been restated accordingly.
Loss of `89 crore for the Financial Year 2018-19 (Previous Year Profit
of `141 crore) have been reported under ‘discontinued operations’
in the Statement of Profit and Loss of Tata Steel for the period
ended March 31, 2019.
5. Tata Metaliks Limited
The turnover and profit/loss figures of Tata Metaliks Limited (‘TML’)
for Financial Year 2018-19 are as follows:
Turnover
Profit before tax (PBT)
Profit after tax (PAT)
FY 19
2,155
212
182
(` crore)
FY 18
1,894
200
159
TML has its manufacturing plant at Kharagpur, West Bengal, India
which produces annually 300 kilo tonnes of pig iron and 200 kilo
tonnes of ductile iron pipes. Pig iron is marketed under the brand
name ‘Tata eFee’ (world’s first brand) and ductile iron pipe is marketed
under the brand name ‘Tata Ductura’.
During the Financial Year 2018-19, the sale of pig iron was at
280 kilo tonnes as against 291 kilo tonnes of previous year owing to
a sluggish demand. However, the sale of ductile iron pipes increased
to 240 kilo tonnes as against 209 kilo tonnes of previous year due to
higher demand in the project segment.
TML has started Pulverised Coal Injection (‘PCI’) and usage of pellets
in both the Mini Blast Furnaces (‘MBFs’).
The increase in turnover is due to an increase in net realisation of
pig-iron and ductile iron pipes offset by lower sale of pig iron.
The increase in PAT is due to improvement in cost primarily due to
improvement in specific consumption of raw materials – coke, iron
ore, operational efficiency and lower overheads.
MANAGEMENT DISCUSSION AND ANALYSIS
‘Excellence in Corporate Social Responsibility in 2018’ by the CII-ITC
Centre for Excellence for Sustainable Development.
6. The Tinplate Company of India Limited
The turnover and profit/loss figures of The Tinplate Company of India
Limited (‘TCIL’) for Financial Year 2018-19 are as follows:
Turnover
Profit before tax (PBT)
Profit after tax (PAT)
FY 19
2,611
92
58
(` crore)
FY 18
1,931
115
73
TCIL is the largest indigenous producer of tin coated and tin free steel
used for metal packaging. It has also been ‘value-adding’ its products
by way of providing printing and lacquering facility to reach closer
to food processors/fillers. TCIL has two Cold Rolling Mills and two
electrolytic tinning lines with an installed annual production capacity
of around 379 kilo tonnes of tinplate and tin-free steel.
During the year under review, TCIL’s consumption in India grew
by ~6% primarily driven by paints & aerosol end use segments
growing at ~8% each. Tin Free Steel (‘TFS’) for crown caps also
increased considerably by 18%. However, the demand from oil can,
one of the largest end use segments, was much lower than expected
due to fillers choosing alternate packaging medium owing to steep
increase in the tinplate price.
During the Financial Year 2018-19, TCIL achieved deliveries of
359 kilo tonnes as against 361 kilo tonnes of previous year due to
sluggish demand. The turnover is higher over the previous year
due to increase in realisations as there has been an increase in steel
prices. However, PAT is lower than previous year due to increase in
cost of raw materials.
TCIL was awarded
Commitment’ for 2018, by Japan Institute of Plant Maintenance.
‘Award for Excellence
in Consistent TPM
7. Tata Steel Processing and Distribution Limited
The turnover and profit/loss figures of Tata Steel Processing and
Distribution Limited (‘TSPDL’) for the Financial Year 2018-19
are as follows:
Turnover
Profit before tax (PBT)
Profit after tax (PAT)
FY 19
4,281
118
76
(` crore)
FY 18
3,196
96
64
TSPDL is India’s largest steel service centre organisation with
primary operations being steel coil slitting, cut-to-length, blanking,
corrugation, plate burning and fabrication. TSPDL is the pioneer and
a leader in the organised steel processing and distribution market.
During the year under review, TML was awarded with ‘Noteworthy
Water Efficient Unit’ at the 4th Water Innovation Summit 2018
(Economic Growth & Human Development in Context of Water
Security) & National Awards for Excellence in Water Management and
facilities and comprehensive quality
World-class processing
assurance systems combine to make TSPDL a benchmark in the
steel service industry. TSPDL has developed IT rack solutions (Wall
Mounted, Floor Standing and Open) for various applications.
118
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR TSPDL currently has a processing capacity of 3.5 MnT with around
75% of utilisation in the Financial Year 2018-19 as compared to the
processing capacity of 3.2 MnT in the previous year.
During the Financial Year 2018-19, TSPDL achieved 1,807 kilo tonnes
of tolling volumes and 805 kilo tonnes of distribution volumes, an
increase of 19% and 18% respectively over previous year which
resulted in an increase in turnover. The profits are higher primarily
due to higher contribution from tolling.
TSPDL won the Suraksha Puraskar (Bronze Trophy) and was awarded
‘CII National Energy Management award 2018- Energy Efficient Unit’
C. Financial Performance
1. Tata Steel Limited (Standalone)
During the year under review, the Company recorded a profit after
tax of `10,533 crore (previous year: `4,170 crore). The increase is
primarily on account of improved realisations, higher deliveries and
lower exceptional charges over previous year. The basic and diluted
earnings per share for the Financial Year 2018-19 were at `90.41 per
share and `90.40 per share respectively (previous year: basic: `38.57
per share, diluted: `38.56 per share).
The analysis of major items of the financial statements is given below:
8. Tata Sponge Iron Limited
a) Revenue from operations
The turnover and profit/loss figures of Tata Sponge Iron Limited
(‘TSIL’) for the Financial Year 2018-19 are as follows:
Turnover
Profit before tax (PBT)
Profit after tax (PAT)
(` crore)
FY 18
817
210
141
Sale of products
Sale of power and water
Other operating revenue
Total revenue from
operations
FY 19
992
188
124
FY 19
67,214
1,709
1,688
FY 18
57,614
1,691
1,214
(` crore)
Change (%)
17
1
39
70,611
60,519
17
TSIL is a manufacturer of sponge iron with an annual production
capacity of 390 kilo tonnes and generates 26 MW of power through
the waste heat recovery route.
During the Financial Year 2018-19, sale of sponge iron was 437 kilo
tonnes as against 414 kilo tonnes of previous year. The turnover has
increased by 21% due to increase in net realisation from sponge iron
and higher sales volume. However, the profit is lower than previous
year due to higher cost of ore and coal.
During the year under review, sale of products was higher as
compared to the previous year, primarily due to higher realisations
and increased volumes. The Ferro Alloys and Mineral Division
registered a higher revenue owing to higher production of Ferro
Chrome along with improved demand in the international market.
The Wires and Tubes division registered higher revenue due to
increase in realisations. Other operating revenue increased mainly
due to higher benefits arising out of exports.
9. Bhubaneshwar Power Private Limited
b) Purchases of stock-in-trade
The turnover and profit/loss figures of Bhubaneshwar Power Private
Limited (‘BPPL’) for the Financial Year 2018-19 are as follows:
Turnover
Profit before tax (PBT)
Profit after tax (PAT)
FY 19
541
64
60
(` crore)
FY 18
74
(6)
(6)
Note: The Financial Year 2017-18 is reported from February 1, 2018 to
March 31, 2018, as BPPL became a subsidiary of Tata Steel Limited effective
February 1, 2018.
BPPL is in the business of generation of power. It owns 135 MW
(2x67.5 MW) coal based power plant in Odisha. During the Financial
Year 2018-19, the plant operated at a load factor of 78.1%, generated
924 million units of power, an improvement of ~8% over the
previous year with a plant availability of 94%. BPPL supplies
120.5 MW power to the Company and T S Alloys Limited.
Further, during the Financial Year 2018-19, BPPL reported profit
against loss in previous year.
Purchases of stock-in-trade
FY 19
1,808
(` crore)
Change (%)
179
FY 18
647
During the year under review, purchases of stock-in-trade was higher
as compared to the previous year due to higher purchases of steel
wire rods, imported rebars, hot rolled coils, cold rolled coils and slabs,
owing to higher requirement.
c) Cost of materials consumed
Cost of materials consumed
FY 19
19,840
FY 18
16,878
(` crore)
Change (%)
18
During the year under review, the cost of materials consumed
increased primarily due to higher consumption of coal and purchased
pellet along with higher cost of imported coal.
d) Employee benefits expense
Employee benefits expense
FY 19
5,131
FY 18
4,829
(` crore)
Change (%)
6
119
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT DISCUSSION AND ANALYSIS
During the year under review, the expense increased primarily
on account of salary revisions, its consequential impact on the
retirement provisions.
e) Depreciation and amortisation expense
g) Finance costs and net finance costs
Finance costs
Net Finance costs
FY 19
2,824
600
FY 18
2,811
2,068
(` crore)
Change (%)
0
(71)
Depreciation and
amortisation expense
FY 19
3,803
FY 18
3,727
(` crore)
Change (%)
2
The increase in depreciation is due to regular additions in fixed assets.
f) Other expenses
Other expenses
FY 19
23,823
FY 18
21,841
Other expenditure represents the following expenditure:
Consumption of
stores and spares
Repairs to buildings
Repairs to machinery
Relining expenses
Fuel oil consumed
Purchase of power
Conversion charges
Freight and handling charges
Rent
Royalty
Rates and taxes
Insurance charges
Commission,
discounts and rebates
Allowance for credit losses/
provision for advances
Excise Duty (including
recovered on sales)
Other expenses
Less : Expenditure (other than
interest) transferred to capital
& other accounts
Total Other expenses
FY 19
4,040
61
2,950
88
211
2,823
2,722
4,320
72
2,003
1,201
133
189
1
0
3,809
FY 18
3,306
72
2,603
52
154
2,771
2,838
4,102
75
1,573
966
111
194
54
903
2,404
(800)
(337)
23,823
21,841
(` crore)
Change (%)
9
(` crore)
Change (%)
22
(15)
13
69
37
2
(4)
5
(4)
27
24
20
(3)
(98)
(100)
58
(137)
9
Other expenses were higher as compared to the previous year
primarily on account of higher consumption of stores and spares
on account of increased operations and shutdowns at TSJ and TSK,
higher repairs and maintenance expenses mainly due to higher
contract jobs at mines and collieries, increase in royalty on account
of increase in volumes and rates, higher freight and handling in line
with higher volumes.
120
During the year under review, finance costs were almost at par with
the previous year. Net finance charges were lower on account of
higher interest income on inter-company deposits (‘ICDs’) partly
offset by lower income from mutual funds.
h) Exceptional items
Exceptional items
FY 19
(114)
FY 18
(3,366)
(` crore)
Change (%)
N.A.
The details of exceptional items for the current year and previous
year are as follows:
• Impairment of investments/doubtful advances amounting to
`12 crore (2017-18: `35 crore) relates to provision recognised
for impairment of investments in subsidiaries and joint ventures.
During financial year 2017-18 the Company had recognised
provision in respect of advances paid for repurchase of equity
shares
Inc
amounting to `27 crore.
in Tata Teleservices Limited from NTT Docomo
• Provision for demands and claims amounting to `329 crore
(2017-18: `3,214 crore) relating to certain statutory demands and
claims on environment and mining matters.
• Provision for Employee Separation scheme (ESS) under Sunehere
Bhavishya Ki Yojana (‘SBKY’) scheme amounting to `35 crore
(2017-18: `90 crore).
Partly offset by,
• Profit on sale of non-current
in TRL Krosaki
Refractories Limited (an associate of the Company) amounting to
`262 crore (2017-18: Nil)
investments
i)
Property, plant & equipment (PPE) including intangibles
(` crore)
Change (%)
FY 18
FY 19
Property,
Plant and Equipment
Capital work-in-progress
Intangible assets
Intangible assets
under development
Total property, plant &
equipment (PPE) including
intangibles
70,417
70,943
5,686
805
110
5,642
786
32
(1)
1
2
244
77,018
77,402
(0)
The movement in total PPE including intangible is almost at par with
the previous year.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR j)
Investments
Investment in
Subsidiary, JVs and
Associates
Investments - Non-current
Investments - Current
Total Investments
FY 19
FY 18
(` crore)
Change (%)
4,438
3,666
34,492
477
39,407
5,971
14,640
24,277
21
478
(97)
62
The increase in investments was predominantly on account of
higher investments in preference shares of subsidiaries mainly in
TSBSL (formerly Bhushan Steel Limited), partly offset by decrease in
investments in mutual funds.
k)
Inventories
Finished and
semi-finished goods
including stock-in-trade
Work-in-progress
Raw materials
Stores and spares
Total Inventories
FY 19
FY 18
(` crore)
Change (%)
4,205
3,658
14
4,496
2,540
11,255
7
4,953
2,405
11,023
15
100
(9)
6
2
Finished and semi-finished inventory increased as compared to
previous year mainly due to increase in flat products inventory.
The decrease in raw material inventories over the previous year
was mainly due to decrease in coal inventory. Stores and spares
inventory had increased mainly on account of higher consumption
and increase in prices.
Net debt was higher as compared to previous year. This is attributable
to decrease in current investments along with cash and bank balances.
Gross debt was marginally higher due to issue of non-convertible
debentures and fresh loan drawn of term loan, partly offset by
scheduled repayment and pre-payments.
n) Cash Flows
Net Cash from/(used in)
operating activities
Net Cash from/(used in)
investing activities
Net Cash from/(used in)
financing activities
Net increase/(decrease) in
cash and cash equivalents
FY 19
FY 18
15,193
11,791
(16,350)
(12,273)
(` crore)
Change (%)
29
(33)
(2,887)
4,166
(169)
(4,044)
3,684
(210)
Net cash flow from/(used in) operating activities
During the year under review, the net cash generated from operating
activities was `15,193 crore as compared to `11,791 crore during the
previous year. The cash inflow from operating profit before working
capital changes and direct taxes during the current year was `19,949
crore as compared to inflow of `15,109 crore during the previous year
due to higher operating profit. Cash outflow from working capital
changes in 2018-19 is `223 crore mainly due to increase in inventories
by `215 crore and increase in Non-current/Current financial and other
assets by `611 crore partly offset by increase in Non-current/current
financial and other liabilities/provisions by `603 crore. The income
taxes paid during the current year was `4,533 crore as compared to
`2,503 crore during Financial Year 2017-18.
l)
Trade receivables
Net cash flow from/(used in) investing activities
Gross trade receivables
Less: allowance
for credit losses
Net trade receivables
FY 19
1,398
35
FY 18
1,907
31
1,363
1,876
(` crore)
Change (%)
(27)
13
(27)
During the year under review, the net cash outflow from investing
activities amounted to `16,350 crore as compared to `12,273 crore
during the previous year. The outflow during the current year broadly
represents, purchase of investments in subsidiaries `29,076 crore,
capex of `3,677 crore partly offset by proceeds from sale of current
investments of `14,760 crore.
Decrease in trade receivables as compared to previous year is
primarily due to higher discounting.
m) Gross debt and net debt
Gross debt
Less: Cash and Bank balances
(incl. Non-current balances)
Less: Current investments
Net Debt
FY 19
29,701
753
477
28,471
FY 18
28,126
4,717
14,640
8,769
(` crore)
Change (%)
6
(84)
(97)
225
Net cash flow from/(used in) financing activities
During the year under review, the net cash outflow from financing
activities was `2,887 crore as compared to an inflow of `4,166 crore
during the previous year. The outflow during the current year broadly
represents payment of interest `2,608 crore, payment of dividend
including taxes `1,371 crore and proceeds from borrowings (net of
repayments) `1,437 crore.
121
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 o) Changes in key financial ratios
The details of changes in the key financial ratios as compared to
previous year are stated below:
Inventory Turnover (days)
Debtors Turnover 1 (days)
Current Ratio (Times)
Interest Coverage
Ratio 2 (Times)
Debt Equity (Times)
Net Debt Equity 3 (Times)
EBITDA Margin (%)
Net Profit Margin 4 (%)
Return on Average
Networth 5 (%)
FY 19
60
8
0.73
9.57
0.44
0.42
29.38
14.92
15.43
FY 18
67
12
0.91
7.08
0.49
0.15
26.11
6.89
7.21
Change (%)
(10)
(33)
(20)
35
(10)
180
13
117
114
1) Debtors Turnover Ratio: Improved primarily on account of
decrease in debtors by 27% owing to higher discounting.
2) Interest Coverage Ratio: Improved primarily on account of higher
operating profits.
3) Net Debt Equity Ratio: Increased primarily on account of
significant decline in cash and bank balances and other liquid
investments over previous year.
MANAGEMENT DISCUSSION AND ANALYSIS
TSE reported increase mainly on account of an increase in average
revenue per tonne, supported by
impact
on translation.
favourable
forex
Increase in ‘Others’ primarily reflects transactions through TSPDL,
TCIL and Tata Steel Global Procurement (‘TSGP’), which are,
eliminated on consolidation.
b) Purchases of stock-in-trade
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Total purchases of stock-
in-trade
FY 19
1,808
7
4,814
6,110
(6,171)
6,568
FY 18
647
-
4,800
4,327
(4,399)
5,375
(` crore)
Change (%)
179
N.A.
0
41
(40)
22
Expense was higher mainly at Tata Steel (Standalone) due to higher
purchases of wire rods, imported rebars, hot rolled coils, cold rolled
coils and slabs owing to higher requirement.
c) Cost of materials consumed
4) Net Profit Margin: Increased primarily on account of increase in
net profits attributable to higher operating profits, lower exceptional
charge and higher finance income during Financial Year 2018-19.
5) Return on net worth: Increased primarily on account of increase
in net profits attributable to higher operating profits during
Financial Year 2018-19.
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Total cost of materials
consumed
FY 19
19,840
9,840
23,407
34,758
(33,536)
FY 18
16,878
-
22,629
28,569
(27,314)
(` crore)
Change (%)
18
N.A.
3
22
(23)
54,309
40,762
33
2. Tata Steel Limited (Consolidated)
Tata Steel Consolidated profit after tax (including discontinued
operations) was `9,098 crore as against `17,763 crore in the previous
year. The decrease was mainly due to previous year’s exceptional gain
of `9,599 crore as against charge of `121 crore during current year.
a) Revenue from Operations
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Total revenue from
operations
FY 19
70,611
18,376
64,777
46,877
(42,972)
FY 18
60,519
-
59,985
38,261
(34,655)
(` crore)
Change (%)
17
N.A.
8
23
(24)
1,57,669
1,24,110
27
The consolidated revenue from operations was higher as compared
to the previous year primarily due to acquisition of TSBSL.
Increase at Tata Steel Standalone was primarily on account of higher
Steel volumes and realisations and higher other operating income.
Consumption was higher mainly on account of acquisition of
TSBSL. Increase at Tata Steel (Standalone) was higher due to higher
consumption of coal and purchased pellet, along with higher cost
of imported coal. TSE reported an increase mainly on account of
adverse exchange impact on translation.
Others primarily reflects activities at Tata Steel Global Procurement
(‘TSGP’) which are majorly eliminated on consolidation.
d) Employee benefits expense
Tata Steel
TSBSL
TSE
Others
Total employee benefits
expense
FY 19
5,131
327
12,444
857
FY 18
4,829
-
11,407
734
(` crore)
Change (%)
6
N.A.
9
17
18,759
16,970
11
Acquisition of TSBSL resulted in increase in employee benefit
expense. Expense at Tata Steel (Standalone) increased mainly
on account of salary revisions and its consequential impact on
122
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR the retirement provisions. TSE reported increase due to adverse
exchange impact on translation and normal salary increase.
e) Depreciation and amortisation expense
Tata Steel
TSBSL
TSE
Others
Total depreciation and
amortisation expense
FY 19
3,803
1,228
1,936
375
FY 18
3,727
-
1,727
288
(` crore)
Change (%)
2
N.A.
12
30
7,342
5,742
28
Expense was higher mainly due
to acquisition of TSBSL.
Tata Steel (Standalone) reported increase mainly on account of higher
consumption of stores and spares, higher repairs and maintenance
expenses, royalty charges and freight and handling charges.
TSE reported increase mainly on account of higher stores and spares
consumed, higher level of repairs and maintenance, power cost
along with exchange impact on translation.
Increase in Others was mainly at Tata Steel Global Holdings on
account of adverse exchange rate movement.
g) Finance costs and net finance costs
Expense was higher than previous year mainly on account of
acquisition of TSBSL. Increase in expense at Tata Steel (Standalone)
was in line with normal addition. Expense at TSE was higher in
line with normal addition along with adverse exchange impact
on translation.
f) Other expenses
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Total other expenses
FY 19
23,823
4,661
18,826
3,864
(2,428)
48,746
FY 18
21,841
-
17,793
1,881
(2,045)
39,470
(` crore)
Change (%)
9
N.A.
6
105
(19)
24
Other expenditure represents the following expenditure:
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Finance costs
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Net Finance costs
FY 19
2,824
2,834
4,631
7,273
(9,902)
7,660
FY 19
600
2,727
4,592
238
(1,531)
6,626
FY 18
2,811
-
3,912
2,786
(4,054)
5,455
FY 18
2,068
-
3,868
(358)
(1,067)
4,509
(` crore)
Change (%)
0
N.A.
18
161
(144)
40
(` crore)
Change (%)
(71)
N.A.
19
166
(43)
47
Consumption of
stores and spares
Repairs to buildings
Repairs to machinery
Relining expenses
Fuel oil consumed
Purchase of power
Conversion charges
Freight and handling charges
Rent
Royalty
Rates and taxes
Insurance charges
Commission,
discounts and rebates
Allowance for credit losses/
provision for advances
Excise Duty (including
recovered on sales)
Other expenses
Less : Expenditure (other than
interest) transferred to capital
& other accounts
Total Other expenses
FY 19
11,160
133
6,672
88
451
4,865
2,681
8,389
3,455
2,191
1,485
272
260
174
0
8,134
FY 18
8,440
99
5,708
52
351
4,090
2,657
7,950
2,379
1,650
1,235
282
255
94
861
4,368
(1,664)
(1,001)
48,746
39,470
(` crore)
Change (%)
Finance cost was higher due to external borrowings taken by
Bamnipal Steel Limited for the acquisition of TSBSL.
Expense at TSBSL mainly relates to fund provided by Bamnipal Steel
Limited for the acquisition which was eliminated on consolidation.
Net finance charge was higher in line with increase in finance cost.
However, expense was lower at Tata Steel (Standalone) mainly on
account of interest income from inter-company deposits (‘ICD’)
given to Bamnipal Steel Limited for acquisition of TSBSL, which was
eliminated on consolidation.
h) Exceptional items
Tata Steel
TSBSL
TSE
Others
Eliminations & Adjustments
Total exceptional items
FY 19
(114)
41
(69)
79
(58)
(121)
FY 18
(3,366)
-
13,851
(921)
35
9,599
(` crore)
Change (%)
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
32
34
17
69
28
19
1
6
45
33
20
(4)
2
85
(100)
86
(66)
24
123
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 MANAGEMENT DISCUSSION AND ANALYSIS
• Impairment charges ₹903 crore in respect of property, plant and
equipment (including Capital Work-in-Progress) and intangible
assets relating to Global Mineral entities.
i)
Property, plant & equipment (PPE) including intangibles
(` crore)
Change (%)
(0)
N.A.
6
(100)
(100)
12
57
FY 18
77,402
-
20,562
811
692
9,512
(359)
FY 19
77,018
29,673
21,880
(0)
0
10,669
(154)
Tata Steel
TSBSL
TSE
NSH
TSTH
Others
Eliminations & Adjustments
Total property, plant &
equipment (PPE) including
intangibles
1,39,086
1,08,620
28
Increase in PPE and intangibles mainly due to acquisition of TSBSL
was partly offset by decrease at NatSteel Holdings and Tata Steel
Thailand as these companies have been classified as ‘held for sale’ as
on March 31, 2019.
j)
Inventories
Finished and
semi-finished goods
including stock-in-trade
Work-in-progress
Raw materials
Stores and spares
Total inventories
Tata Steel
TSBSL
TSE
NSH
TSTH
Others
Eliminations & Adjustments
Total inventories
FY 19
FY 18
(` crore)
Change (%)
11,152
9,854
4,592
11,425
4,487
31,656
5,145
9,551
3,780
28,331
13
(11)
20
19
12
FY 19
11,255
4,582
13,714
0
0
2,256
(151)
31,656
FY 18
11,023
-
13,762
1,053
725
1,826
(58)
28,331
(` crore)
Change (%)
2
N.A.
(0)
(100)
(100)
24
(160)
12
Increase was primarily on account of acquisition of TSBSL. Tata Steel
Standalone reported increase on account of higher finished and
semi-finished goods, stores and spares, partly offset by decrease at
NatSteel Holdings and Tata Steel Thailand as these companies have
been classified as held for sale as on March 31, 2019.
the
during
current
Exceptional
items
primarily represents:
• Provision for demands and claims amounting to `329 crore
relating to certain statutory demands and claims on environment
and mining matters at Tata Steel Limited (Standalone).
financial
year,
• Provision of `172 crore in respect of advances with public bodies
paid under protest by TSBSL.
• Provision for Employee Separation Scheme (‘ESS’) under Sunehere
Bhavishya Ki Yojana (‘SBKY’) scheme amounting to `35 crore at
Tata Steel Limited (Standalone).
• Impairment charges of `10 crore in respect of property, plant
and equipment (including capital work-in-progress and capital
advances) and intangible asset at TSBSL.
Partly offset by,
• Profit on sale of non-current investments amounting to `180 crore,
primarily in TRL Krosaki Refractories Limited (an associate of the
Company) and certain other subsidiaries and joint ventures.
• Restructuring and write back of provisions amounting to `245
crore which primarily includes write-back of liabilities no longer
required at TSBSL and arbitration settlement at Jamshedpur
Utilities & Services Company Ltd., partly offset by charge at
Tata Steel Europe.
The exceptional items in Financial Year 2017-18 primarily include:
• Gains arising out of modification in benefit structure for members
of the new pension scheme (‘NBSPS’) versus their benefits under
Tata Steel Europe’s British Steel Pension Scheme (‘BSPS’), offset by
settlement charges for those members who did not join the NBSPS
and one-off costs at Tata Steel Europe amounting to `13,851 crore.
Partly offset by,
• Provision of `3,214 crore in respect of certain statutory demands
and claims relating to environment and mining matters, net of
liability written back towards District Mineral Fund (DMF) at Tata
Steel Limited (Standalone).
• Provision for advances paid for repurchase of equity shares in Tata
Teleservices Ltd. from NTT DoCoMo Inc. amounting to `27 crore at
Tata Steel Limited (Standalone).
• Provision
for Employee Separation Scheme
(‘ESS’) under
Sunehere Bhavishya Ki Yojana (‘SBKY’) scheme `108 crore mainly
at Tata Steel Limited (Standalone) and at Jamshedpur Utilities &
Services Company Ltd.
124
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR k) Trade receivables
Tata Steel
TSBSL
TSE
NSH
TSTH
Others
Eliminations & Adjustments
Net trade receivables
FY 19
1,363
697
5,607
0
(0)
15,531
(11,387)
11,811
FY 18
1,876
-
6,451
516
254
14,805
(11,486)
12,416
(` crore)
Change (%)
(27)
N.A.
(13)
(100)
(100)
5
1
(5)
Decrease at NatSteel Holdings and Tata Steel Thailand was
primarily on account of their classification as ‘held for sale’ as on
March 31, 2019. Decrease at Tata Steel (Standalone) was primarily due
to better realisations. These decreases were partly offset by increase
on account of acquisition of TSBSL.
l) Gross debt and net debt
Gross debt
Less: Cash and Bank
balances (incl.
Non-current balances)
Less: Current investments
Net debt
FY 19
1,00,816
FY 18
92,147
(` crore)
Change (%)
9
3,412
8,023
2,525
94,879
14,909
69,215
(57)
(83)
37
Net debt was higher by `25,664 crore over previous year.
Gross Debt at `1,00,816 crore was higher by `8,669 crore as compared
to the previous year. Increase in Gross Debt was mainly on account of
proceeds from borrowings (net of repayment) by `8,340 crore along
with exchange impact on translation being `345 crore.
The increase in borrowings was mainly at TSBSL and Tata Steel
Standalone, partly offset by decrease at Tata Steel Europe and
Singapore based entities.
The increase in Net Debt was in line with increase in gross debt along
with decrease in current investments along with cash and bank
balances mainly at Tata Steel Standalone.
m) Cash flows
Net Cash from/(used in)
operating activities
Net Cash from/(used in)
investing activities
Net Cash from/(used in)
financing activities
Net increase/(decrease) in
cash and cash equivalents
FY 19
25,336
FY 18
8,024
(29,902)
(12,026)
(673)
6,640
(` crore)
Change (%)
216
(149)
(110)
(5,239)
2,638
(299)
Net cash flow from/(used in) operating activities
During the year under review, the net cash from operating activities
was `25,336 crore as compared to `8,023 crore during the previous
year. The cash inflow from operating profit before working capital
changes and direct taxes during the current year was `27,840 crore
as against `20,187 crore during the previous year reflecting higher
operating profits. Cash inflow from working capital changes during
the current period was `2,591 crore primarily due to increase in
Non-current/Current financial and other liabilities/provisions by
`3,774 crore, partly offset by increase in inventories by `1,069 crore
and Non-current/Current financial and other assets `115 crore.
The payments of income taxes during the year under review were
`5,094 crore as compared to `2,888 crore during the previous year.
Net cash flow from/(used in) investing activities
During the year under review, the net cash outflow from investing
activities was `29,902 crore as against an outflow of `12,026
crore during the previous year. The outflow in the Financial Year
2018-19 broadly represents capex `9,091 crore, acquisition of
subsidiaries/undertakings `35,282 crore, mainly related to amount
paid for acquisition of TSBSL, partly offset by sale (net of purchase) of
current investments amounting to `13,093 crore.
Net cash flow from/(used in) financing activities
During the year under review, net cash outflow from financing
activities amounted to `673 crore as against inflow of `6,640 crore
during the previous year. The net outflow primarily represents
interest paid `7,152 crore and payment of dividend including taxes
`1,424 crore, partly offset by proceeds from borrowings (net of
repayment) `8,518 crore.
n) Changes in key financial ratios
The details of changes in the key financial ratios as compared to
previous year are stated below:
Inventory Turnover (days)
Debtors Turnover (days)
Current Ratio (Times)
Interest Coverage
Ratio (Times)
Debt Equity (Times)
Net Debt Equity (Times)
EBITDA Margin (%)
Net Profit Margin 1 (%)
Return on
Average Networth1 (%)
FY 19
72
28
1.39
4.38
1.51
1.43
18.88
5.77
13.67
FY 18
80
35
1.46
4.13
1.82
1.37
17.22
14.31
35.09
Change (%)
(10)
(20)
(5)
6
(17)
4
10
(60)
(61)
1Decreased primarily on account of decrease
in net profits
attributable to higher exceptional gains arising out of modification
in benefit structure of Pension Scheme during the previous year.
D. Statutory Compliance
The Chief Executive Officer and Managing Director makes a
declaration at each Board Meeting regarding compliance with
provisions of various statutes after obtaining confirmation from
respective units of the Company. The Company Secretary & Chief
Legal Officer (Corporate & Compliance) ensures compliance with
Company Law, SEBI, and other laws applicable to the Company.
125
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 ANNUAL REPORT ON CSR ACTIVITIES
ANNEXURE 3
Annual Report on Corporate Social Responsibility Activities
[Pursuant to Section 135 of the Companies Act, 2013 and
the Companies (Corporate Social Responsibility Policy) Rules, 2014]
I.
Overview of the Corporate Social Responsibility
(‘CSR’) Policy
Our CSR initiatives are guided by our CSR Policy (‘Policy’) adopted
by the Board of Directors on September 17, 2014. The Policy is
available on the Company’s website www.tatasteel.com. Our CSR
activities focus on initiatives in the areas of education, health,
water, livelihood, rural and urban infrastructure and are aligned
to the key focus areas of the Tata Group. We also undertake
community-centric interventions in the areas of sports, disaster
relief, environment and ethnicity.
II.
and Sustainability
Composition of CSR
Committee of the Board
At the helm of our CSR governance structure is the Corporate
Social Responsibility and Sustainability Committee of the
Board that comprises Mr. Deepak Kapoor (Chairperson),
Mr. O. P. Bhatt, Mr. Koushik Chatterjee and Mr. T. V. Narendran.
III. CSR Advisory Council
We have a CSR Advisory Council comprising eminent
personalities from academia and the development sector.
The members of the Advisory Council provide macro policy-level
inputs to the apex CSR and Sustainability Committee and guide
the Company’s approach towards CSR.
IV. CSR Delivery Arms
In terms of the Companies Act, 2013, companies are allowed
to carry out their CSR activities through registered trusts
and/or societies. We carry out our community centric
interventions through a number of CSR delivery arms including
the following:
Tata Steel Foundation (‘TSF’), a Section 8 Company incorporated
under the Companies Act, 2013. The main objective of the
formation of TSF is to consolidate, strengthen and broaden the
CSR programme deployment as well as create a distinct brand
identity for it.
Tata Steel Rural Development Society (‘TSRDS’), a registered
society under Societies Registration Act, 1860. The principal aim
and objective of the society is to undertake, promote, sponsor,
assist or aid directly any activity/project/programme for the
promotion and growth of the rural economy, rural welfare,
socio-economic development and upliftment of the people
in rural areas.
Tribal Cultural Society (‘TCS’), a registered society under
Societies Registration Act, 1860. The principal objective of the
society is to promote and undertake cultural activities, cultural
education and training of various tribes.
Tata Steel Skill Development Society (‘TSSDS’), a registered
society under Societies Registration Act, 1860. The principal aim
and object of the society is to provide facilities for technical and
other skill enhancement trainings within the nation.
Tata Steel Family Initiatives Foundation (‘TSFIF’), a registered trust
under Indian Trusts Act, 1882. The principal objective of the trust
is to undertake projects/programmes on reproductive health,
prevention of drug or alcohol addiction and empowerment of
women through literacy and income generation.
Tata Steel Zoological Society (‘TSZS’), a registered society
under Societies Registration Act, 1860. The principal objective
of the society is to provide natural habitats to various animals
suitable for their conservation and propagation. It also acts as
a facilitator to spread the message of nature conservation by
building awareness and conducting educational programmes.
V. Financial Details
Particulars
Average net profit of the Company for last
three financial years
Prescribed CSR expenditure
(2% of the average net profits)
Details of CSR spent during the financial year:
(a) Total amount to be spent for
the financial year
(b) Amount spent
(c)
Amount unspent, if any
(` crore)
4,120.15
82.40
82.40
314.94
Nil
The manner in which the amount is spent on CSR activities
undertaken during the year is given as an annexure to this
report. Details of CSR projects undertaken during the year along
with its impact is discussed in the Social & Relationship capital
section of this Integrated Report.
126
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
VI. Responsibility Statement
We hereby affirm that the CSR Policy, as approved by the Board, has been implemented and the Corporate Social Responsibility
and Sustainability Committee monitors the implementation of CSR Projects and activities in compliance with our CSR objectives
and CSR Policy of the Company.
sd/-
DEEPAK KAPOOR
Chairman of CSR and
Sustainability Committee
DIN: 00162957
Mumbai
April 25, 2019
sd/-
T. V.NARENDRAN
Chief Executive Officer &
Managing Director
DIN: 03083605
Annexure to the Corporate Social Responsibility Annual Report
Manner in which the amount spent during the financial year is detailed below:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Sl. No
CSR project or activity
identified
Sector in which the
project is covered
Location of project
(District & State)
Amount
outlay
Amount spent
on the projects
or programmes
during current
reporting period
Cumulative
amount spent on
the projects or
programmes upto
current reporting
period
Promoting health care
including preventive
Healthcare and Sanitation
Health
Jharkhand - East
Singhbhum,
West Singhbhum,
Dhanbad, Ramgarh
Odisha - Ganjam,
Jajpur, Kendujhar,
Sundargarh
Maharashtra - Mumbai
West Bengal - Kolkata
114.60
168.94
434.73
Total
114.60
168.94
434.73
Making Available
safe Drinking Water
Drinking Water
Jharkhand - East
Singhbhum,
West Singhbhum,
Dhanbad, Ramgarh
Odisha - Ganjam, Jajpur,
Kendujhar, Sundargarh
West Bengal - Haldia
9.01
9.75
64.71
Total
9.01
9.75
64.71
Promotion of education including
special education
Education
Total
Employment enhancing Vocational
skills especially to Women, Children,
Differently abled
Livelihood enhancement projects
Livelihood
Jharkhand - East
Singhbhum, West
Singhbhum, Dhanbad,
Ramgarh, Ranchi
Odisha - Ganjam,
Jajpur, Kendujhar,
Sundargarh, Puri
Maharashtra - Tarapur
69.81
66.52
272.22
69.81
66.52
272.22
Jharakhand - East
Singhbhum, West
Singhbhum, Dhanbad,
Ramgarh, Ranchi
Odisha - Ganjam, Jajpur,
Kendujhar, Sundargarh
27.24
18.35
133.11
Total
27.24
18.35
133.11
1
2
3
4
5
(` crore)
(8)
Amount spent:
Direct or through
implementing
agency
Direct,
TSRDS,
TCS,
TSFIF,
TSF
Direct,
TSRDS,
TSF
Direct,
TSRDS,
TCS,
TSF
Direct,
TSRDS,
TCS,
TSSDS,
TSF
127
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
ANNUAL REPORT ON CSR ACTIVITIES | CORPORATE GOVERNANCE REPORT
(` crore)
(8)
Amount spent:
Direct or through
implementing
agency
Direct,
TSRDS,
TSZS
6
7
8
9
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Sl. No
CSR project or activity
identified
Sector in which the
project is covered
Location of project
(District & State)
Amount
outlay
Amount spent
on the projects
or programmes
during current
reporting period
Cumulative
amount spent on
the projects or
programmes upto
current reporting
period
Environmental sustainability,
protection of flora & fauna, agro
forestry, animal welfare, resource
conservation, maintaining quality
of soil, air, water
Total
Environment
Protection and restoration of
national heritage, promotion of
art, culture, handicrafts, setting up
public libraries etc
Ethnicity
Jharkhand - East
Singhbhum, Ramgarh
Odisha - Jajpur,
Kendujhar
West Bengal – Burdwan
Jharakhand -
East Singhbhum,
West Singhbhum,
Ramgarh, Ranchi
Odisha - Kendujhar,
Jajpur
2.50
2.63
18.12
2.50
2.63
18.12
6.66
8.06
27.01 TCS
Total
6.66
8.06
27.01
Promotion of Rural, Nationally
recognised, Paralympic and
Olympic sports especially training
Sports
Jharkhand - East
Singhbhum, West
Singhbhum, Dhanbad,
Ramgarh, Ranchi
Odisha - Ganjam, Jajpur,
Kendujhar, Sundargarh
17.63
10.19
35.62
Total
17.63
10.19
35.62
Rural development
projects (infrastructure and
other developments)
Rural & Urban
Infrastructure
Jharkhand - East
Singhbhum,
West Singhbhum,
Dhanbad, Ramgarh
Odisha - Ganjam,
Jajpur, Kendujhar
17.22
19.72
81.63
Direct,
TSRDS,
TSF
Direct,
TSRDS,
TSF
Total
Total Direct expenses of projects & programmes (A)
Overhead Expenses (restricted to the 5% of total CSR expenditure) (B)
Total (A) + (B)
17.22
264.67
12.22
276.89
19.72
304.16
10.78
314.94
81.63
1,067.15
48.94
1,116.09
Note: Cumulative amount spent on the projects or programmes upto current reporting period has been calculated from Financial Year 2014-15 onwards.
128
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
ANNEXURE 4
Corporate Governance Report
Company’s Corporate Governance Philosophy
Corporate governance is the creation and enhancement of long-term
sustainable value for our stakeholders through ethically driven
business process. At Tata Steel, it is imperative that our Company’s
affairs are managed in a fair and transparent manner.
We ensure that we evolve and follow not just the stated corporate
governance guidelines, but also global best practices. We consider it
our inherent responsibility to protect the rights of our shareholders
and disclose timely, adequate and accurate information regarding
our financials and performance, as well as the leadership and
governance of the Company.
In accordance with our Vision, Tata Steel Group (‘the Group’) aspires
to be the global steel industry benchmark for ‘value creation’ and
‘corporate citizenship’. The Group expects to realise its Vision by
taking such actions as may be necessary to achieve its goals of value
creation, safety, environment and people.
The Company is in compliance with the requirements stipulated under
Regulation 17 to 27 read with Schedule V and Regulation 46(2)(b)(i)
of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’),
as applicable, with regard to corporate governance.
Code of Conduct
The Company has a strong legacy of fair, transparent and ethical
governance practices.
The Company has adopted the Tata Code of Conduct (‘TCoC’) for
Executive Directors (‘EDs’), Senior Management Personnel and
other Executives and Employees, which is available on the website
www.tatasteel.com The Company has received confirmations
from the EDs as well as Senior Management Personnel regarding
compliance of the Code during the year under review. The Company
has also adopted the Code of Conduct for Non-Executive Directors
(‘NEDs’) of the Company which includes Code of Conduct for
Independent Directors (‘IDs’) which suitably
incorporates the
duties of Independent Directors as laid down in the Companies
Act, 2013. The same is available on the website www.tatasteel.com.
The Company has received confirmations from the NEDs and IDs
regarding compliance of the Code for the year under review.
Tata Code of Conduct for Prevention of Insider
Trading & Code of Corporate Disclosure Practices
In accordance with the Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015, as amended from
time to time, the Board of Directors of the Company has adopted the
revised Tata Code of Conduct for Prevention of Insider Trading and
the Code of Corporate Disclosure Practices (‘Insider Trading Code’).
All our Promoters (including Promoter group), Directors, Employees
of the Company and its material subsidiaries identified as Designated
Persons, and their Immediate Relatives and other Connected Persons
such as auditors, consultants, bankers amongst others, who could
have access to the unpublished price sensitive information of the
Company, are governed under this Insider Trading Code.
Mr. Parvatheesam K, Company Secretary & Chief Legal Officer
(Corporate & Compliance) of the Company is the ‘Compliance Officer’
in terms of this Code.
Corporate Governance Guidelines
The Board of Directors (‘the Board’) has adopted the Tata Group
Guidelines on Board Effectiveness to help fulfil its corporate
governance responsibility towards its stakeholders. These guidelines
provide for the composition and role of the Board and ensure that
the Board will have the necessary authority and processes in place to
review and evaluate the Company’s operations.
Board of Directors
The Board is at the core of our corporate governance practice and
oversees and ensures that the Management serves and protects the
long-term interest of all our stakeholders. We believe that an active,
well-informed and independent Board is necessary to ensure the
highest standards of corporate governance.
Size and Composition of the Board
Our policy is to have an appropriate mix of Executive Directors
(‘EDs’), Non-Executive, Non-Independent Directors (‘NEDs’) and
Independent Directors (‘IDs’) to maintain the Board’s independence
and separate
its functions of governance and management.
As on March 31, 2019, the Board comprised of ten members, two
of whom are EDs, three NEDs and five IDs, including a Woman
Director. The Board periodically evaluates the need for change in its
composition and size. Detailed profile of our Directors is available
on our website www.tatasteel.com None of our Directors serve as
Director in more than eight listed companies, as IDs in more than
seven listed companies and none of the EDs serve as IDs on any listed
company. Further, none of our IDs serve as Non-Independent Director
of any company on the board of which any of our Non-Independent
Director is an ID.
Independent Directors are non-executive directors as defined under
Regulation 16(1)(b) of the Listing Regulations read with Section
149(6) of the Act along with rules framed thereunder. In terms of
Regulation 25(8) of Listing Regulations, they have confirmed that they
are not aware of any circumstance or situation which exists or may
be reasonably anticipated that could impair or impact their ability
to discharge their duties. Based on the declarations received from
129
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 the Independent Directors, the Board of Directors has confirmed that
they meet the criteria of independence as mentioned under Section
149 of the Companies Act, 2013 and Regulation 16(1)(b) of the Listing
Regulations and that they are independent of the management.
The Company has issued formal letters of appointment to the IDs.
As required under Regulation 46 of the Listing Regulations, as
amended, the terms and conditions of appointment of IDs including
their role, responsibility and duties are available on our website
www.tatasteel.com
Table A: Composition of the Board and Directorships held as on March 31, 2019
Name of the Director
Indian Public
Companies(1)
Non-Executive, Non-Independent Directors
Mr. Natarajan Chandrasekaran
Chairman
DIN: 00121863
5
6
2
7
3
-
5
2
Mr. Saurabh Agrawal
DIN: 02144558
Mr. Vijay Kumar Sharma(3)
DIN: 02449088
Independent Directors
Ms. Mallika Srinivasan
DIN: 00037022
Mr. O. P. Bhatt
DIN: 00548091
Dr. Peter Blauwhoff
DIN: 07728872
Mr. Aman Mehta
DIN: 00009364
Mr. Deepak Kapoor
DIN: 00162957
130
Board Committees(2)
Chairperson
Member
Directorship in other listed entity
(Category of Directorship)
-
1
-
-
1
-
1
1
-
2
-
-
3
-
5
a.
b.
Tata Consultancy Services Limited
(Non-Executive, Non-Independent)
Tata Motors Limited
(Non-Executive, Non-Independent)
c. Tata Global Beverages Limited
d.
e.
a.
b.
(Non-Executive, Non-Independent)
The Tata Power Company Limited
(Non-Executive, Non-Independent)
The Indian Hotels Company Limited
(Non-Executive, Non-Independent)
The Tata Power Company Limited
(Non-Executive, Non-Independent)
Tata AIG General Insurance Co. Ltd
(Non-Executive, Non-Independent)
a. ACC Limited
(Non-Executive, Non-Independent)
b. Mahindra and Mahindra Limited
(Nominee Director)
a. Tata Global Beverages Limited
(Non-Executive, Independent)
The United Nilgiri Tea Estates Company Limited
(Non-Executive, Non-Independent)
b.
a. Tata Consultancy Services Limited
(Non-Executive, Independent)
b. Hindustan Unilever Limited
(Non-Executive, Independent)
c. Tata Motors Limited
(Non-Executive, Independent)
-
a. Wockhardt Limited
b.
(Non-Executive, Independent)
Godrej Consumer Products Limited
(Non-Executive, Independent)
c. Max Financial Services Limited
(Non-Executive, Independent)
d. Tata Consultancy Services Limited
(Non-Executive, Independent)
e. Vedanta Limited
(Non-Executive, Independent)
2
a. HCL Technologies Limited
(Non-Executive, Independent)
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT
Name of the Director
Executive Directors
Mr. T. V. Narendran
Chief Executive Officer &
Managing Director
DIN: 03083605
Mr. Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
Indian Public
Companies(1)
Board Committees(2)
Chairperson
Member
Directorship in other listed entity
(Category of Directorship)
6
6
-
1
-
2
a.
Tata Sponge Iron Limited
(Non-Executive, Non-Independent)
b. Tata Steel BSL Limited
(Non-Executive, Non-Independent)
a. Tata Metaliks Limited
(Non-Executive, Non-Independent)
b. The Tinplate Company of India Limited
(Non-Executive, Non-Independent)
c. Tata Sponge Iron Limited
(Non-Executive, Non-Independent)
d. Tata Steel BSL Limited
(Non-Executive, Non-Independent)
Notes:
(1)
Directorships in Indian Public Companies (listed and unlisted) excluding Tata
Steel Limited and Section 8 Companies.
(2)
(3)
(4)
As required under Regulation 26(1)(b) of the Listing Regulations, the
disclosure includes chairmanship/membership of the Audit Committee and
Stakeholders’ Relationship Committee in Indian Public companies (listed and
unlisted) excluding Tata Steel Limited.
Mr. Vijay Kumar Sharma was appointed as an Additional (Non-Executive,
Non-Independent) Director effective August 24, 2018.
During Financial Year 2018-19, none of our Directors acted as Member in
more than 10 committees or as Chairperson in more than 5 committees
across all Indian public companies (listed and unlisted) where he/she is a
Director. For this purpose, committee will include only Audit Committee and
Stakeholders’ Relationship Committee.
(5)
There are no inter-se relationships between our Board Members.
Selection of New Directors and Board Membership Criteria
The Nomination and Remuneration Committee (‘NRC’) works with
the Board to determine the appropriate qualifications, positive
attributes, characteristics, skills and experience required for the
Board as a whole and its individual members with the objective of
having a Board with diverse backgrounds and experience in business,
government, education and public service. The updated Policy for
appointment and removal of Directors and determining Directors’
independence is available on our website at www.tatasteel.com
Key Board Qualifications, Expertise and Attributes
The Directors are committed to ensuring that the Board is in
compliance with the highest standards of Corporate Governance.
The table below summarizes the key qualifications, skills and
attributes which are taken into consideration by the NRC while
recommending appointment of Directors to the Board
Table B: Director qualifications, skills, expertise, competencies and attributes desirable in Company’s business and sector in
which it functions
Skills and Attributes
Alignment with Company
culture and value system
Experience in managing
large corporations
Understanding of
industry and operations
Understanding of finance
and related aspects
Knowledge of
technology and innovation
Knowledge of
Governance and Law
Description
Exhibit high levels of integrity and be appreciative of the core values of the Company and the Tata Group
Experience in leading and managing large corporations and have an understanding of the business environment,
complex business processes, strategic planning, risk management, etc. Also, possess experience in driving growth
through acquisitions and other integration plans with the ability to evaluate opportunities that are in line with the
Company’s strategy.
Experience and knowledge of the functioning, operations, growth drivers, business environment and changing
trends in the metals & mining, manufacturing and engineering industries as well as experience in overseeing large
supply chain operations
Experience in financial management of large corporations with understanding of capital allocation & funding and
financial reporting processes
Understanding of emerging trends in technology and innovation that may have an impact on the business and
have the ability to guide necessary interventions that can be utilised in making the business more competitive
and sustainable
Understanding of the legal ecosystem within which the Company operates and possess knowledge on
matters of regulatory compliance, governance, internal controls. Experience in policy advocacy at national and
international level
131
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
Familiarisation Programme
Independent Directors)
for Directors
(including
be taken towards mitigating risks arising from global sustainability
trends and climate change.
Independent Directors)
All new Directors (including
inducted
to the Board are given a formal orientation. The familiarisation
programme for our Directors is customised to suit their individual
interests and area of expertise. The Directors are encouraged to visit
the plant and raw material locations of the Company and interact
with members of Senior Management as part of the induction
programme. The Senior Management make presentations giving
an overview of the Company’s strategy, operations, products,
markets, group structure and subsidiaries, Board constitution and
guidelines, matters reserved for the Board and the major risks and
risk management strategy. This enables the Directors to get a deep
understanding of the Company, its people, values and culture and
facilitates their active participation in overseeing the performance
of the Management. Further, during the year, a Sustainability
Workshop by the Cambridge Institute for Sustainability Leadership
(CISL) was organised for the Directors and the Senior Management
of the Company. The objective of the Workshop was to provide an
understanding on the imperatives for the Company and actions to
As stated in the Board’s Report, the details of orientation given to
our existing Independent Directors are available on our website
www.tatasteel.com
Board Evaluation
The NRC has formulated a Policy for evaluation of the Board, its
Committees and Directors and the same has been approved and
adopted by the Board. The details of Board Evaluation forms part of
the Board’s Report.
Remuneration Policy for Board and Senior Management
The Board has approved the Remuneration Policy for Directors,
Key Managerial Personnel (‘KMP’) and all other employees of the
Company. The same is available on our website www.tatasteel.com
Details of remuneration for Directors in Financial Year 2018-19 are
provided in Table C below.
Table C: Shares held and remuneration paid to Directors for the year ended March 31, 2019
Basic
Fixed Salary
Perquisite/
Allowance
Total Fixed
Salary
Commission 6
(` lakh)
Sitting
Fees
Total
Compensation
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
132.00
123.00
190.63
234.14
322.63
357.14
–
38.00
36.00
–
125.00
181.00
111.00
90.00
106.00
800.00
725.00
4.80
2.40
1.20
6.40
4.00
9.60
6.80
4.80
8.00
–
–
4.80
40.40
37.20
6.40
129.00
190.60
117.80
94.80
114.00
1,122.63
1,082.14
Name
Non-Executive, Non-Independent Directors
Mr. N. Chandrasekaran 1
Mr. D. K. Mehrotra 2
Mr. Vijay Kumar Sharma 2
Mr. Saurabh Agrawal 3
Independent Directors
Ms. Mallika Srinivasan
Mr. O. P. Bhatt
Dr. Peter Blauwhoff 4
Mr. Aman Mehta
Mr. Deepak Kapoor
Executive Directors
Mr. T. V. Narendran 5
Mr. Koushik Chatterjee 5
132
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Notes:
1. As a Policy, Mr. N. Chandrasekaran, Chairman has abstained from receiving
Table D: Attendance details of Directors for the year ended
March 31, 2019 are given below:
commission from the Company.
2. The commission of Mr. D. K. Mehrotra and Mr. Vijay Kumar Sharma is paid
to Life Insurance Corporation of India. Mr. D. K. Mehrotra ceased to be a
Member of the Board effective May 16, 2018. Mr. Vijay Kumar Sharma was
inducted on the Board as an Additional (Non-Executive, Non-Independent)
Director effective August 24, 2018.
3. In line with the internal guidelines of the Company, no payment is made
towards commission to the Non-Executive Directors of the Company, who
are in full time employment with any other Tata Company.
4. Dr. Peter Blauwhoff is a Director of Tata Steel Europe (‘TSE’) and Chairman
and Member of Supervisory Board of Tata Steel Nederland BV (‘TSN BV’).
Towards this, he additionally receives an annual fee of £70,000 from TSE
and annual fee of €80,000 plus expenses allowance of €1,500 from TSN BV.
The fee paid is consistent with the market practices and are aligned to the
benchmark figures published by global consulting firms.
5. Mr. T. V. Narendran holds 2,032 Fully Paid Ordinary Shares and 139 Partly
Paid Ordinary Shares of the Company and Mr. Koushik Chatterjee holds
1,531 Fully Paid Ordinary Shares and 105 Partly Paid Ordinary Shares of the
Company as on March 31, 2019.
6. Commission relates to the Financial Year ended March 31, 2019, which
was approved by the Board on April 25, 2019, to be paid during the
Financial Year 2019-20.
7. None of our Directors hold stock options or convertible securities of the
Company as on March 31, 2019. None of the Executive Directors are eligible
for payment of any severance fees and the contracts with Executive Directors
may be terminated by either party giving the other party six months’ notice
or the Company paying six months’ salary in lieu thereof.
Board Meetings
Scheduling and selection of agenda items for Board Meetings
Dates for Board Meetings in the ensuing financial year are decided
in advance and communicated to the members of the Board.
The information as required under Regulation 17(7) read with
Schedule II Part A of the Listing Regulations, as amended, is made
available to the Board. The Board reviews minutes of the meetings
of Board of Directors of the unlisted subsidiaries of the Company.
The agenda and explanatory notes are sent to the Board in advance.
The Board periodically reviews compliance reports of all laws
applicable to the Company. The Board meets at least once a quarter to
review the quarterly financial results and other items on the agenda.
Additional meetings are held, when necessary. Committees of the
Board usually meet the day before the Board meeting, or whenever
the need arises for transacting business. The recommendations
of the Committees are placed before the Board for necessary
approval and/or noting.
7 Board meetings were held during the year ended March 31, 2019
on April 3, 2018, May 16, 2018, June 27, 2018, August 13, 2018,
November 13, 2018, February 8, 2019 and March 29, 2019. The gap
between any two Board meetings during this period did not exceed
one hundred and twenty days.
Name of the Director
Category
No. of Meetings
Attended
Attendance
(%)
Mr. N. Chandrasekaran
(Chairperson)
Mr. D. K. Mehrotra 1
Mr. Saurabh Agrawal
Mr. Vijay Kumar Sharma 2
Ms. Mallika Srinivasan
Mr. O. P. Bhatt
Dr. Peter Blauwhoff
Mr. Aman Mehta
Mr. Deepak Kapoor
Mr. T. V. Narendran
Mr. Koushik Chatterjee
NED
NED
NED
NED
ID
ID
ID
ID
ID
ED
ED
7
2
7
3
5
6
7
6
7
7
7
100
100
100
100
71
86
100
86
100
100
100
NED – Non-Executive Director;
ED – Executive Director
ID –
Independent Director;
1. Mr. D. K. Mehrotra ceased to be a Member of the Board
effective May 16, 2018.
2. Mr. Vijay Kumar Sharma was inducted on the Board as Additional
(Non-Executive, Non-Independent) Director effective August 24, 2018.
Video/tele-conferencing facilities are also used to facilitate Directors
travelling/residing abroad or at other locations to participate
in the meetings.
All the Directors as on the date of the AGM were present at the AGM
of the Company held on Friday, July 20, 2018.
Meeting of the Independent Directors
Pursuant to Schedule IV of the Companies Act, 2013, the Independent
Directors met on April 3, 2018 and March 29, 2019 without the
presence of Non-Independent Directors and Members of the
Management. The Independent Directors, inter alia, evaluated the
performance of the Non-Independent Directors and the Board of
Directors as a whole, evaluated the performance of the Chairman of
the Board taking into account views of Executive and Non-Executive
Directors and discussed aspects relating to the quality, quantity and
timeliness of the flow of information between the Company, the
Management and the Board.
Board Committees
Audit Committee
The primary objective of the Audit Committee is to monitor and
provide an effective supervision of the Management’s financial
reporting process, to ensure accurate and timely disclosures, with
the highest levels of transparency, integrity and quality of financial
reporting. The Committee oversees the work carried out in the
financial reporting process by the Management, the internal auditor,
the statutory auditor and the cost auditor and notes the processes
and safeguards employed by each of them. The Committee further
133
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 reviews the process and controls including compliance with laws,
Tata Code of Conduct and Tata Code of Conduct for Prevention
of Insider Trading and Code for Corporate Disclosure Practices,
Whistle Blower Policy and related cases thereto, functioning of the
Prevention of Sexual Harassment at Workplace Policy and guidelines
and internal controls.
The Board of Directors of the Company adopted the Audit Committee
Charter on March 31, 2015 which was revised on March 2, 2017 and
February 8, 2019.
The Company Secretary and Chief Legal Officer (Corporate &
Compliance) acts as the Secretary to the Committee. The internal
auditor reports functionally to the Audit Committee. The Executive
Directors and Senior Management of the Company also attend the
meetings as invitees whenever required to address concerns raised
by the Committee Members.
5 meetings of the Committee were held during the year ended
March 31, 2019, on May 16, 2018, August 13, 2018, November 13, 2018,
February 7, 2019 and March 28, 2019.
Table E: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Name of Members
Category
No. of Meetings
Attended
Attendance
(%)
Mr. O. P. Bhatt (Chairperson)
Mr. Aman Mehta
Dr. Peter Blauwhoff
Mr. Saurabh Agrawal
ID
ID
ID
NED
5
3
5
4
100
60
100
80
ID – Independent Director; NED – Non-Executive Director
Mr. O. P. Bhatt, Chairperson of the Audit Committee was present at
the AGM of the Company held on Friday, July 20, 2018.
Nomination and Remuneration Committee
The purpose of the Nomination and Remuneration Committee (‘NRC’)
is to oversee the Company’s nomination process including succession
planning for the senior management and the Board and specifically
to assist the Board in identifying, screening and reviewing individuals
qualified to serve as Executive Directors, Non-Executive Directors and
Independent Directors consistent with the criteria as stated by the
Board in its Policy on Appointment and Removal of Directors.
The Board has adopted the NRC Charter for the functioning of the
Committee on May 20, 2015 which was revised on March 29, 2019
basis the amendments in Listing Regulations.
The NRC also discharges the Board’s responsibilities relating to
compensation of the Company’s Executive Directors and Senior
Management. The Committee has
formulated Remuneration
Policy for Directors, KMPs and all other employees of the
Company. The remuneration policy and the criteria for making
payments to Non-Executive Directors is available on our website
www.tatasteel.com The Committee has the overall responsibility
of approving and evaluating the compensation plans, policies
and programmes
the Senior
Management. The Committee reviews and recommends to the
Board, the base salary,
incentives/commission, other benefits,
compensation or arrangements for the Executive Directors for its
approval. The Committee coordinates and oversees the annual
self-evaluation of the performance of the Board, Committees and of
individual Directors.
for Executive Directors and
5 meetings of the Committee were held during the year ended
March 31, 2019 on April 3, 2018, May 16, 2018, August 13, 2018,
March 12, 2019 and March 29, 2019.
Table F: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Name of Members
Ms. Mallika Srinivasan
(Chairperson)
Mr. O. P. Bhatt
Mr. N. Chandrasekaran
Category
No. of Meetings
Attended
Attendance
(%)
ID
ID
NED
5
5
5
100
100
100
ID – Independent Director; NED – Non-Executive Director
Ms. Mallika Srinivasan, Chairperson of the NRC was present at the
AGM of the Company held on Friday, July 20, 2018.
Corporate
Committee
Social Responsibility
and
Sustainability
The purpose of our Corporate Social Responsibility and Sustainability
(‘CSR&S’) Committee is to formulate and recommend to the Board,
a Corporate Social Responsibility Policy, which shall indicate the
initiatives to be undertaken by the Company, recommend the amount
of expenditure the Company should incur on Corporate Social
Responsibility (‘CSR’) activities and to monitor from time to time the
CSR activities and Policy of the Company. The Committee provides
guidance in formulation of CSR strategy and its implementation and
also reviews practices and principles to foster sustainable growth
of the Company by creating values consistent with long-term
preservation and enhancement of financial, manufacturing, natural,
social, intellectual and human capital.
The Board has approved a Charter is for the functioning of the
Committee, on March 31, 2015 which is revised from time to time.
The CSR policy is available on our website at www.tatasteel.com
3 meetings of the Committee were held during the year
ended March 31, 2019 on May 15, 2018, July 19, 2018 and
November 12, 2018.
134
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Table G: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Table H: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Category
No. of Meetings
Attended
Attendance
(%)
Name of Members
Category
No. of Meetings
Attended
Attendance
(%)
Name of Members
Mr. Deepak Kapoor
(Chairperson)
Mr. O. P. Bhatt
Mr. D. K. Mehrotra 1
Mr. T. V. Narendran
Mr. Koushik Chatterjee
ID
ID
NED
ED
ED
3
3
1
2
3
100
100
100
67
100
Independent Director; NED – Non-Executive Director;
ID –
ED – Executive Director
1. Mr. D. K. Mehrotra ceased to be a Member of the Board effective
May 16, 2018 and consequently ceased to be Member of the CSR&S
Committee effective same date.
Mr. O. P. Bhatt (Chairperson)
Mr. Aman Mehta
Mr. Deepak Kapoor
Mr. D. K. Mehrotra 1
Mr. Saurabh Agrawal
Mr. T. V. Narendran
Mr. Koushik Chatterjee
Dr. Hans Fischer
Mr. Anand Sen
Mr. Sandip Biswas
Mr. N. K. Misra
ID
ID
ID
NED
NED
ED
ED
MoM
MoM
MoM
MoM
3
2
3
1
3
3
3
2
3
3
2
100
67
100
100
100
100
100
67
100
100
67
Mr. Deepak Kapoor, Chairperson of the Committee was present at the
AGM of the Company held on Friday, July 20, 2018.
Independent Director; NED – Non-Executive Director;
ID –
ED – Executive Director; MoM – Member of Management.
Risk Management Committee
Risk Management is crucial to achieve the Group’s objective in
strengthening
interests of
its financial position, safeguarding
stakeholders, enhancing its ability to continue as a going concern
and maintain a consistent sustainable growth.
The Company has constituted a Risk Management Committee (‘RMC’)
for framing, implementing and monitoring the risk management
policy of the Company. The Committee assists the Board in
fulfilling its oversight responsibility with respect to Enterprise Risk
Management (‘ERM’).
The terms of reference of the RMC are:
a)
b)
Overseeing key risks, including strategic, financial, operational,
IT (including cyber security) and compliance risks.
Assisting the Board in framing, implementing and monitoring
the risk management plan for the Company and reviewing and
guiding the Risk Policy.
c)
Developing risk management policy and risk management
system/framework for the Company.
The Board has adopted a Charter for RMC Committee on May 20, 2015.
3 meetings of the Committee were held during the year
ended March 31, 2019 on May 15, 2018, August 13, 2018 and
November 13, 2018.
1. Mr. D. K. Mehrotra ceased to be a Member of the Board effective
May 16, 2018 and consequently ceased to be a Member of the RMC
effective same date.
Stakeholders’ Relationship Committee
The Stakeholders’ Relationship Committee (‘SRC’) considers and
resolves the grievances of our shareholders, debenture holders and
other security holders, including complaints relating to non-receipt
of annual report, transfer and transmission of securities, non-receipt
of dividends/interests, issue of new/duplicate certificates, general
meetings and such other grievances as may be raised by the security
holders from time to time.
The Committee also reviews:
a)
b)
c)
Measures taken
by Shareholders;
for effective exercise of voting
rights
Service standards adopted by the Company in respect of
services rendered by our Registrars & Transfer Agent;
initiatives
reducing quantum
taken
Measures and
of unclaimed dividends and ensuring timely receipt of
dividend/annual
information
by Shareholders.
report/notices
and other
for
The Board has adopted a Charter for the functioning of the SRC on
April 11, 2014 which was revised on February 8, 2019.
135
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 1 meeting of the Committee was held during the year ended
March 31, 2019 on February 7, 2019.
Table I: The composition of the Committee and the attendance
details of the Members for the year ended March 31, 2019 are
given below:
Names of Members
Mr. Deepak Kapoor 1
(Chairperson)
Mr. T. V. Narendran
Mr. Koushik Chatterjee
Category
No. of meetings
attended
Attendance
(%)
ID
ED
ED
1
1
1
100
100
100
Independent Director; NED – Non-Executive Director;
ID –
ED – Executive Director
Mr. D. K. Mehrotra ceased to be a Member of the Board effective
May 16, 2018 and consequently ceased to be a Chairperson and
Member of the SRC effective same date.
Mr. Saurabh Agrawal was appointed as the Chairperson of SRC
effective May 16, 2018 and was present at the AGM of the Company
held on Friday, July 20, 2018. He ceased to be a Member of SRC
effective August 13, 2018.
1. Mr. Deepak Kapoor was appointed as Chairperson and
Mr. T. V. Narendran was appointed as the Member of SRC effective
August 13, 2018.
In terms of Regulation 6 and Schedule V of the Listing Regulations,
the Board has appointed Mr. Parvatheesam K, Company Secretary
& Chief Legal Officer (Corporate & Compliance) as the Compliance
Officer of the Company.
The details of complaints received and resolved during the Financial
Year ended March 31, 2019 are given in Table J below. The complaints
relate to non-receipt of annual report, dividend, share transfers and
other investor grievances.
Table J: Details of complaints received and resolved during
the year ended March 31, 2019:
Opening as on April 1, 2018
Received during the year
Resolved during the year
Closing as on March 31, 2019
21
1,866
1,887
0
Executive Committee of the Board
The Executive Committee of the Board (‘ECOB’) approves capital
expenditure schemes or any change in their scope, if any and donations
within the stipulated limits and to recommend to the Board, capital
budgets and other major capital schemes, to consider new businesses,
acquisitions, alliances and joint ventures, subsidiaries, divestments,
changes in organisational structure, financing requirements of the
Company and Company contracts above 5 years. It also periodically
reviews the Company’s business plans and future strategies and metrics
for long-term value creation. The Committee also reviews climate
change matters and regulatory compliance and policy advocacy.
136
During the year, the business of the Committee was transacted
primarily by passing resolutions through circulation and the same
were then placed before the Board for noting.
1 meeting of the Committee was held during the year ended
March 31, 2019 on September 20, 2018.
Table K: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Names of Members
Mr. N. Chandrasekaran
(Chairperson)
Mr. O. P. Bhatt
Mr. Saurabh Agrawal
Mr. T. V. Narendran
Mr. Koushik Chatterjee
Category
No. of Meetings
Attended
Attendance
(%)
NED
ID
NED
ED
ED
1
-
1
1
1
100
-
100
100
100
NED – Non-Executive Director;
ED – Executive Director
ID –
Independent Director;
Safety, Health and Environment Committee
The Safety, Health and Environment Committee (‘SH&E Committee’)
of the Board oversees the policies relating to Safety, Health and
Environment and their implementation across the Tata Steel Group.
The Board has approved a Charter for the functioning of the
Committee on October 27, 2009.
4 meetings of the Committee were held during the year ended
March 31, 2019 on May 15, 2018, July 19, 2018, November 12, 2018
and February 7, 2019.
Table L: The composition of the Committee and the
attendance details of the Members for the year ended
March 31, 2019 are given below:
Names of Members
Dr. Peter Blauwhoff
(Chairperson)
Mr. Deepak Kapoor
Mr. T. V. Narendran
Dr. Hans Fischer
Category
No. of Meetings
Attended
Attendance
(%)
ID
ID
ED
MoM
4
4
3
4
100
100
75
100
–
ID
MoM – Member of Management
Independent Director;
ED
–
Executive Director,
General Information for Shareholders
Disclosures regarding the appointment or re-appointment of
Directors
In terms of relevant provisions of the Companies Act, 2013, as
amended, Mr. Koushik Chatterjee (DIN: 00004989) is liable to retire by
rotation at the ensuing Annual General Meeting (‘AGM’) and being
eligible, seeks re-appointment.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT During the year under review, based on the recommendation of the
Nomination and Remuneration Committee (‘NRC’), the Board:
a)
b)
Appointed Mr. Vijay Kumar Sharma (DIN: 02449088) as an
Additional (Non-Executive, Non-Independent) Director effective
August 24, 2018.
to
re-appoint
(i) Ms. Mallika
Proposes
Srinivasan
(DIN: 00037022) as Independent Director of the Company, not
liable to retire by rotation, for a second term on the Board with
effect from August 14, 2019 up to May 20, 2022; (ii) Mr. O. P. Bhatt
(DIN: 00548091) as Independent Director of the Company, not
liable to retire by rotation, for a second term on the Board with
effect from August 14, 2019 up to June 9, 2023.
c)
Re-appointed Mr. T. V. Narendran as the Chief Executive Officer
and Managing Director of the Company with effect from
September 19, 2018 to September 18, 2023, upon the terms and
conditions as mentioned in the Notice convening the AGM.
The Board recommends the above appointment/re-appointments
for approval of the Shareholders at the ensuing AGM.
The detailed profiles of the above Directors including particulars
of their experience, skills or attributes are provided in the Notice
convening the AGM.
Communication to the Shareholders
We send quarterly financial results to our Shareholders electronically.
Key financial data is published in The Indian Express, Financial
Express, Nav Shakti, Free Press Journal and Loksatta. The financial
results along with the earnings releases are also posted on the
Company’s website www.tatasteel.com
Earnings calls are held with analysts and investors and their
transcripts are published on the website. Presentations made to
analysts and others are also made available on the Company’s
website www.tatasteel.com
All price sensitive information and matters that are material to
shareholders are disclosed to the respective Stock Exchanges
where the securities of the Company are listed. All submissions to
the Exchanges are made through their respective electronic online
filing systems. The same are also available on the Company’s website
www.tatasteel.com
The Company’s website is a comprehensive reference on it’s
leadership, management, vision, mission, policies, corporate
governance, sustainability, investor relations, products and processes
and updates and news. The section on ‘Investors’ serves to inform the
Shareholders, by giving complete financial details, stock exchange
compliances including shareholding patterns and updated credit
ratings amongst others, corporate benefits, information relating
to Stock Exchanges, details of Registrars & Transfer Agent and
frequently asked questions. Investors can also submit their queries
by submitting ‘Shareholder Query Form’ and get feedback online.
The section on ‘Media’ includes all major press reports and releases,
awards and campaigns by the Company, amongst others.
Investor grievance and share transfer system
We have a Board-level Stakeholders’ Relationship Committee to
examine and redress investors’ complaints. The status on complaints
and share transfers are reported to the entire Board.
During the Financial Year 2018-19, the Securities and Exchange Board
of India (‘SEBI’) and Ministry of Corporate Affairs (‘MCA’) has mandated
that existing members of the Company who hold securities in
physical form and intend to transfer their securities after April 1, 2019,
can do so only in dematerialised form. Therefore, Members holding
shares in physical form were requested to consider converting their
shareholding to dematerialised form. During the year, the Company
has sent necessary intimations to its shareholders regarding the
restriction on transfer of securities in the physical form.
Share transactions in electronic form can be effected in a simpler and
faster manner. After a confirmation of a sale/purchase transaction
from the broker, shareholders should approach the Depository
Participant (‘DP’) with a request to debit or credit the account for
the transaction. The DP will immediately arrange to complete the
transaction by updating the account. There is no need for a separate
communication to the Company to register these share transfers.
Shareholders should communicate with TSR Darashaw Limited, the
Company’s Registrars and Transfer Agents (‘RTA’) quoting their Folio
Number or Depository Participant ID (‘DP ID’) and Client ID number,
for any queries to their securities.
Details of non-compliance
The Company has complied with the requirements of the Stock
Exchanges, SEBI and other statutory authorities on all matters
relating to capital markets during the last three years. There has been
no instance of non-compliance with any legal requirements during
the year under review.
None of the Company’s listed securities are suspended from trading.
Certificates from Practising Company Secretaries
As required by Regulation 34(3) and Schedule V Part E of the Listing
Regulations, the certificate given by Parikh & Associates, Practicing
Company Secretaries, is annexed to this report.
As required by Clause 10 (i) of Part C under Schedule V of the Listing
Regulations, the Company has received a certificate from Parikh &
Associates, Practicing Company Secretaries certifying that none
of our Directors have been debarred or disqualified from being
appointed or continuing as Directors of the Company by Securities
and Exchange Board of India or Ministry of Corporate Affairs or such
other statutory authority.
CEO and CFO certification
As required by Regulation 17(8) read with Schedule II Part B of
the Listing Regulations, the Chief Executive Officer & Managing
Director and Executive Director & Chief Financial Officer have given
appropriate certifications to the Board of Directors.
137
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Reconciliation of Share Capital Audit
Policy for Determining Material Subsidiaries
In terms of Regulation 40(9) and 61(4) of the Listing Regulations,
certificates, on half-yearly basis, have been issued by a Company
Secretary in Practice with respect to due compliance of share and
security transfer formalities by the Company.
(India)
The Company Secretary in Practice carried out a Reconciliation of
Share Capital Audit to reconcile the total admitted capital with
(‘NSDL’) and Central
National Securities Depository Limited
Depository Services
(collectively
(‘CDSL’)
Limited
‘Depositories’) and the total issued and listed capital. The Audit
confirms that the total paid-up capital is in agreement with the
aggregate of the total number of shares in physical form and in
dematerialised form (held with Depositories). The Audit Report is
disseminated to the Stock Exchanges on quarterly basis and is also
available on our website www.tatasteel.com under ‘Investors’ section.
Related Party Transactions
All transactions entered into with related parties as defined under the
Companies Act, 2013 and Regulation 23 of the Listing Regulations,
each as amended, during the year under review were on an arm’s
length price basis and in the ordinary course of business. These have
also been approved by the Audit Committee. The Company has not
entered into any materially significant related party transaction that
may have potential conflict with the interests of the Company at
large. The Board of Directors have approved and adopted a Policy
on Related Party Transactions and the same is updated from time to
time, basis amendments in the regulatory provisions. The Policy is
available on the Company’s website www.tatasteel.com
During the Financial Year 2018-19, the Company did not have any
material pecuniary relationship or transactions with Non-Executive
Directors apart from paying Director’s remuneration. Further, the
Directors have not entered into any contracts with the Company or
its subsidiaries, which will be in material conflict with the interest
of the Company.
The Board has received disclosures from KMPs relating to material,
financial and commercial transactions where they and/or their
relatives have personal interest.
General Body Meetings
Table N: Location and time, where last three AGMs were held:
The Company has formulated a Policy for Determining Material
Subsidiaries and the same is available on the Company’s website
www.tatasteel.com
Vigil Mechanism
The Vigil Mechanism approved by the Board provides a formal
mechanism for all Directors, employees and vendors of the Company
to approach the Ethics Counsellor/Chairman of the Audit Committee
of the Company and make protective disclosures regarding the
unethical behaviour, actual or suspected fraud or violation of the
Company’s Code of Conduct. Under the Policy, every Director,
employee or vendor/business associate of the Company has an
assured access to the Ethics Counsellor/Chairman of the Audit
Committee. Details of the Vigil Mechanism are given in the Board’s
Report. The whistle blower policy is available on the Company’s
website www.tatasteel.com
Disclosures as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013
The disclosure regarding the complaints of sexual harassment are
given in the Board’s Report.
Consolidated Fees paid to Statutory Auditors
During the Financial Year 2018-19, the total fees for all services paid
by the Company and its subsidiaries, on a consolidated basis, to Price
Waterhouse & Co Chartered Accountants LLP, Statutory Auditors of
the Company is as under:
Table M: Consolidated fees paid to statutory auditors:
Particulars
Services as statutory auditors
Taxation matters and audit
Other services
Out-of-pocket expenses
Total
(` crore)
Amount
29.36
2.94
11.41
0.78
44.49
Financial Year Ended
Date
Time
Venue
Special Resolution Passed
March 31, 2018
July 20, 2018
March 31, 2017
March 31, 2016
August 8, 2017
August 12, 2016
3:00 p.m. (IST)
Birla Matushri Sabhagar,
19, Sir Vithaldas
Thackersey Marg,
Mumbai - 400 020
Issue of Non-Convertible Debentures on private
placement basis not exceeding `12,000 crore
Issue of Non-Convertible Debentures on Private
Placement basis not exceeding `10,000 crore
No Special Resolution was passed by the Company last year through Postal Ballot. None of the businesses proposed to be transacted at the
ensuing AGM require passing a Special Resolution through Postal Ballot.
138
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Table O: Details of Annual General Meeting 2019:
Date
Time
Venue
Financial Year
Book Closure Dates
Dividend Payment Date
July 19, 2019
3:00 p.m. (IST)
Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai - 400 020
April 1, 2018 to March 31, 2019
Saturday, July 6, 2019 to Friday, July 19, 2019 (both days inclusive) (for both, Fully
Paid & Partly Paid Ordinary Shares)
On and from Tuesday, July 23, 2019, if approved by shareholders at the AGM
Dematerialisation of shares and liquidity
The Company’s Ordinary Shares are tradable compulsorily
in
electronic form. We have established connectivity with both the
depositories, i.e., NSDL and CDSL. The International Securities
Identification Number (‘ISIN’) allotted to the Fully Paid and Partly Paid
Ordinary Shares under the Depository System are INE081A01012
and IN9081A01010 respectively.
The Company has 1,18,29,61,937 Ordinary Shares (including Fully
Paid and Partly Paid Ordinary Shares) representing 98.24% of the
Company’s share capital which is dematerialised as on March 31,
2019. Further, during Fiscal 2019, the Securities and Exchange Board
of India (‘SEBI’) and the Ministry of Corporate Affairs (‘MCA’) has
mandated that existing members of the Company who hold
securities in physical form and intend to transfer their securities after
April 1, 2019, can do so only in dematerialised form. Hence, to enable
us to serve our Shareholders better, we request our Shareholders
whose shares are in physical mode to dematerialise shares and to
update their bank accounts and email ids with their respective DPs.
Further, outstanding GDR Shares 1,34,73,958 (March 31, 2018:
1,27,40,651) of face value of `10 per share represent the shares
underlying GDRs which were issued during 1994 and 2010. Each GDR
represents one underlying Ordinary Share.
Commodity price risk or foreign exchange risk and hedging
activities
The Company inherently faces risks arising out of raw material price
volatility which impacts its profitability and cash flows. However, steel
prices over the long term tend to track underlying raw material
prices thus providing a natural hedge to the business. Further, in
India the Company has captive iron ore and coal mines which meet a
significant part of the requirement of its Indian business and help it
manage raw material price volatility.
In addition, to address the short-term volatility, the Company
specifically hedges certain commodities in the derivatives market
as well as tries to buy part of its strategic material requirements on
annual fixed prices.
Further, to manage the raw material sourcing, the Company has
a dedicated strategic procurement team with understanding of
international commodity markets including raw material required
for steel industry operations. This experienced team works closely
with key raw material producers across the globe and is tasked with
developing a reliable and lowest cost supply chain. The team carries
out a risk assessment of the supply chain and works consciously
towards mitigating the risk of any disruption in supply chain. It
ensures there is adequate diversification in terms of vendors,
geographies etc. and also carries out risk assessment of vendors with
regards reliability of supply, financial strength etc. The team also
has a value in use (VIU) optimization framework in place and closely
monitors and analyses price movements in grades of raw materials to
arrive at the most effective source and cost of supply.
Exposure of the Company to commodity and commodity risk faced
by the Company throughout the year:
1.
Total exposure of the listed entity to commodities: `12,038 crore.
2.
Exposure to the listed entities to various commodities (based on materiality):
Commodity Name
Coal
Limestone
Refractories
Exposure in INR
towards the particular
commodity
(crore)
Exposure in Quantity
terms towards the
particular commodity
% of such exposure hedged through commodity derivatives
Domestic Market
International Market
OTC
Exchange
OTC
Exchange
9,758
1,072
993
85,00,000
tonnes (imported)
41,71,873 tonnes
1,05,619 tonnes
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Total
Nil
Nil
Nil
Apart from the strategic procurement of coal and other commodities, Tata Steel has been a miner for the last hundred years and it mines 100%
of its iron ore requirements and about one fourth of its coking coal requirement from its captive mines. Thus, its exposure is naturally hedged
to the above extent.
139
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Designated e-mail address for investor services
Compliance with discretionary requirements
To serve the investors better and as required under Regulation
46(2)(j) of the Listing Regulations, the designated e-mail address
for investor complaints is cosec@tatasteel.com The e-mail address
for grievance redressal is continuously monitored by the Company’s
Compliance Officer.
Investor Awareness
As part of good governance we have provided subscription facilities
to our investors for IR alerts regarding press release, results, webcasts,
analyst meets and presentations amongst others. We also provide
our investors facility to write queries regarding their rights and
shareholdings and have provided details of persons to be contacted
for this purpose. We encourage investors to visit our website for
reading the documents and for availing the above facilities at
www.tatasteel.com
Legal proceedings
There are certain pending cases related to disputes over title to shares
in which the Company had been made a party. However, these cases
are not material in nature.
Table P: Distribution of Shareholding of Ordinary Shares
Fully Paid Ordinary Shares
All mandatory requirements of the Listing Regulations have been
complied with by the Company. The status of compliance with the
discretionary requirements, as stated under Part E of Schedule II to
the Listing Regulations, is as under:
The Board: As on date, the positions of the Chairman and the Chief
Executive Officer are separate. Mr. N. Chandrasekaran is the Non-
Executive Chairman of the Board and Mr. T. V. Narendran is the Chief
Executive Officer & Managing Director of the Company.
Shareholder Rights: The half-yearly financial performance of the
Company is sent to all the Members possessing e-mail IDs. The results
are also available on the Company’s website www.tatasteel.com
Modified opinion(s) in Audit Report: The Auditors have expressed
an unmodified opinion in their report on the financial statements of
the Company.
Reporting of Internal Auditor: The Internal Auditor reports to the
Audit Committee.
Share Holding
1
2-10
11-50
51-100
101-200
201-500
501-1,000
1,001-5,000
5,001-10,000
10,001-1,00,000
1,00,001 and above
Total
Total No. of Shareholders
as on March 31
% to total holders
as on March 31
Total No. of Shares
as on March 31
% to total capital
as on March 31
2019
23,884
1,20,513
2,37,534
1,24,173
1,23,759
96,515
34,385
28,091
2,775
1,841
323
7,93,793
2018
21,327
1,13,210
2,29,602
1,20,595
1,25,266
96,320
34,067
27,738
2,782
1,832
371
7,73,110
2019
3.01
15.18
29.93
15.64
15.59
12.16
4.33
3.54
0.35
0.23
0.04
100.00
2018
2.76
14.64
29.70
15.60
16.20
12.46
4.40
3.59
0.36
0.24
0.05
2018
21,327
7,61,432
66,82,927
92,35,996
1,80,02,217
2,95,63,645
2,40,00,787
5,47,92,310
1,92,88,108
4,38,39,362
92,02,96,704
100.00 1,12,64,89,680 1,12,64,84,815
2019
23,884
8,09,676
69,86,169
96,55,582
1,79,62,365
2,98,88,109
2,43,91,805
5,57,76,758
1,92,47,829
4,49,56,780
91,67,90,723
2019
0.00
0.07
0.62
0.86
1.60
2.65
2.17
4.95
1.71
3.99
81.38
100.00
2018
0.00
0.07
0.59
0.82
1.60
2.63
2.13
4.86
1.71
3.89
81.70
100.00
Partly Paid Ordinary Shares
Share Holding
1
2-10
11-50
51-100
101-200
201-500
501-1,000
1,001-5,000
5,001-10,000
10,001-1,00,000
1,00,001 and above
Total
140
Total No. of Shareholders
as on March 31
% to total holders
as on March 31
Total No. of Shares
as on March 31
% to total capital
as on March 31
2019
5,793
58,209
72,068
16,844
9,326
6,458
2,436
1,899
253
257
45
1,73,588
2018
5,990
60,702
74,752
16,382
8,405
4,790
1,409
807
90
138
44
1,73,509
2019
3.34
33.53
41.52
9.70
5.37
3.72
1.40
1.09
0.15
0.15
0.03
100.00
2018
3.45
34.99
43.08
9.44
4.84
2.76
0.81
0.47
0.05
0.08
0.03
100.00
2019
5,793
3,39,421
17,64,981
12,75,721
13,88,448
21,22,136
18,15,750
40,32,985
18,11,588
69,21,073
5,61,58,809
7,76,36,705
2018
5,990
3,53,322
18,17,111
12,16,790
12,22,880
15,04,180
10,00,904
16,13,296
6,31,577
50,38,057
6,32,30,518
7,76,34,625
2019
0.01
0.44
2.27
1.64
1.79
2.73
2.34
5.19
2.33
8.92
72.34
100.00
2018
0.01
0.45
2.34
1.57
1.57
1.94
1.29
2.08
0.81
6.49
81.45
100.00
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Transfer of Unclaimed Dividend and Shares to Investor
Education and Protection Fund (‘IEPF’)
Pursuant to the provisions of the Companies Act, 2013 read with
Investor Education Protection Fund Authority (Accounting, Audit,
Transfer and Refund) Rules, 2016, as amended, the dividends,
unclaimed for a period of seven years from the date of transfer to the
Unpaid Dividend Account of the Company are liable to be transferred
to the IEPF. Accordingly, unclaimed dividends of Shareholders for
the Financial Year 2011-12 lying in the unclaimed dividend account of
the Company as on September 17, 2019 will be transferred to IEPF on
the due date i.e. September 18, 2019. Further, the shares (excluding
the disputed cases having specific orders of the Court, Tribunal or any
Statutory Authority restraining such transfer) pertaining to which
dividend remains unclaimed for a consecutive period of seven years
from the date of transfer of the dividend to the unpaid dividend
account is also mandatorily required to be transferred to the IEPF
Authority established by the Central Government. Accordingly, the
Company has transferred unclaimed dividend and eligible Shares to
IEPF Demat Account within statutory timelines.
The details of unclaimed dividends and shares transferred to IEPF
during Financial Year 2018-19 are as follows:
Financial Year
2010-11
Amount of Unclaimed Dividend
Transferred (`)
Number of Shares
Transferred
7,56,12,546.00
3,86,473
The Company has sent individual communication to the concerned
shareholders at their registered address, whose dividend remained
unclaimed and whose shares were liable to be transferred to the IEPF
by September 7, 2018. The communication was also published in
national English and local Marathi newspapers.
Any person whose unclaimed dividend and shares pertaining
thereto, matured deposits, matured debentures, application money
due for refund, or interest thereon, sale proceeds of fractional shares,
redemption proceeds of preference shares, amongst others has been
transferred to the IEPF Fund can claim their due amount from the
IEPF Authority by making an electronic application in e-form IEPF-5.
Upon submitting a duly completed form, Shareholders are required
to take print of the same and send physical copy duly signed along
with requisite documents as specified in the form to the attention of
the Nodal Officer, at the Registered Office of the Company. The e-form
can be downloaded from our website www.tatasteel.com under
‘unclaimed dividend’ tab in ‘investor’ section and simultaneously
from the website of Ministry of Corporate Affairs at www.iepf.gov.in
The Shareholders can file only one consolidated claim in a financial
year as per the IEPF Rules.
Table Q: The status of dividend remaining unclaimed is given hereunder:
Unclaimed Dividend
Status
Whether it can be claimed Can be claimed from
Up to and including
the Financial Year
1994-95
Transferred to the
General Revenue
Account of the
Central Government
For the Financial
Years 1995-96 to
2010-2011
Transferred to
the IEPF of the
Central Government
For the Financial
Years 2011-12 to
2017-18
Amount lying in
respective Unpaid
Dividend Accounts
Yes
Yes
Yes
Office of Registrar of Companies,
Central Government Office
Building, ‘A’ Wing, 2nd Floor, Next
to Reserve Bank of India, CBD,
Belapur-400 614
Submit e-form IEPF 5 to the
Registered Office of the Company
addressed to the Nodal Officer
along with complete documents.
Action to be taken
Claim to be forwarded in prescribed
Form No. II of the Companies
Unpaid Dividend (Transfer to
General Revenue Account of the
Central Government) Rules, 1978
IEPF Authority to pay the claim
amount to the Shareholder
based on the verification report
submitted by the Company
and the documents submitted
by the investor.
TSR Darashaw Limited,
Registrars and Transfer Agent
Letter on plain paper
The Company has hosted on its website the details of the unclaimed dividend/interest/principal amounts for the Financial Year 2017-18 as per
the Notification No. G S R 352 (E) dated May 10, 2012 of Ministry of Corporate Affairs (as per Section 124 of the Companies Act, 2013, as amended).
Table R: Details of date of declaration & due date for transfer to IEPF
Financial Year
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
Dividend Per Share
12
8
10
8
8
10
10
Date of Declaration
August 14, 2012
August 14, 2013
August 14, 2014
August 12, 2015
August 12, 2016
August 8, 2017
July 20, 2018
Due date for Transfer to IEPF
September 18, 2019
September 16, 2020
September 16, 2021
September 16, 2022
September 17, 2023
September 9, 2024
August 22, 2025
Shareholders are requested to get in touch with the RTA for encashing the unclaimed dividend/interest/principal amount, if any, standing to
the credit of their account.
141
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Nomination Facility
Shareholders whose shares are in physical form and wish to
make/change a nomination in respect of their shares in the Company,
as permitted under Section 72 of the Companies Act, 2013, may submit
to RTA the prescribed Forms SH-13/SH-14. The Nomination Form can
be downloaded from the Company’s website www.tatasteel.com
under the section ‘Investors’.
Shares held in Electronic Form
Shareholders holding shares in electronic form may please note that
instructions regarding change of address, bank details, e-mail ids,
nomination and power of attorney should be given directly to the DP.
Shares held in Physical Form
Shareholders holding shares in physical form may please note that
instructions regarding change of address, bank details, e-mails ids,
nomination and power of attorney should be given to the Company’s
RTA i.e., TSR Darashaw Limited.
Further, Shareholders may note that SEBI and MCA has mandated that
existing Members of the Company who hold securities in physical
form and intend to transfer their securities after April 1, 2019, can do
so only in dematerialised form. We request you to dematerialise your
physical shares for ease of transfer.
Updation of bank details for remittance of dividend/cash
benefits in electronic form
The Securities and Exchange Board of India (‘SEBI’) vide its Circular No.
CIR/MRD/DP/10/2013 dated March 21, 2013 (‘Circular’) to all listed
companies requires them to update bank details of their shareholders
holding shares in demat mode and/or physical form, to enable
usage of the electronic mode of remittance i.e. National Automated
Clearing House (‘NACH’) for distributing dividends and other cash
benefits to the shareholders.
The Circular further states that in cases where either the bank details
such as Magnetic Ink Character Recognition (‘MICR’) and Indian
Financial System Code (‘IFSC’), amongst others, that are required
for making electronic payment are not available or the electronic
payment instructions have failed or have been rejected by the bank,
companies or their Registrars and Transfer Agents may use physical
payment instruments for making cash payments to the investors.
Companies shall mandatorily print the bank account details of the
investors on such payment instruments.
Regulation 12 of the Listing Regulations, allows the Company to pay
dividend by cheque or ‘payable at par’ warrants where payment by
electronic mode is not possible. Shareholders to note that payment
of dividend and other cash benefits through electronic mode has
many advantages like prompt credit, elimination of fraudulent
encashment/delay in transit amongst others. They are requested to
opt for any of the above mentioned electronic modes of payment of
dividend and other cash benefits and update their bank details:
142
• In case of holdings in dematerialised form, by contacting their
DP and giving suitable instructions to update the bank details in
their demat account.
• In case of holdings in physical form, by informing the Company’s
RTA i.e., TSR Darashaw Limited, through a signed request letter
with details such as their Folio No(s), Name and Branch of the Bank
in which they wish to receive the dividend, the Bank Account type,
Bank Account Number allotted by their banks after implementation
of Core Banking Solutions the 9 digit MICR Code Number and the
11 digit IFSC Code. This letter should be supported by cancelled
cheque bearing the name of the first shareholder.
SEBI
as mandated by
its Circular No.
Further,
SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated April 20, 2018, the
Company has sent three reminder letters to its share holders
advising them to update their PAN and Bank details with the
Company/Depositories.
vide
Listing on Stock Exchanges
The Company has issued Fully and Partly paid Ordinary shares
which are listed on BSE Limited and National Stock Exchange of
India Limited in India. The annual Listing fees has been paid to the
respective stock exchanges.
Table S: ISIN details
Stock Exchanges
BSE Limited (‘BSE’)
Phiroze Jeejeebhoy Towers,
Dalal Street,
Mumbai - 400 001,
Maharashtra, India
National Stock Exchange of
India Limited (‘NSE’)
Exchange Plaza, 5th Floor,
Plot No. C/1, G Block,
Bandra-Kurla Complex,
Mumbai - 400 051,
Maharashtra, India
ISIN
INE081A01012
Stock Code
500470
(Fully Paid Shares) (Fully Paid Shares)
IN9081A01010
(Partly Paid Shares)
890144
(Partly Paid Shares)
INE081A01012
(Fully Paid Shares)
TATASTEEL
(Fully Paid Shares)
IN9081A01010
(Partly Paid Shares)
TATASTEELPP
(Partly Paid Shares)
Table T: International Listings of securities issued by the
Company are as under:
Global Depository Receipts (‘GDRs’):
GDRs
ISIN
Listed on
1994
US87656Y1091
2009
US87656Y4061
Luxembourg Stock Exchange London Stock Exchange
Table U (i): Perpetual Hybrid Securities in the form of Non-
Convertible Debentures are listed on the Wholesale Debt
Market segments of the Stock Exchanges as under:
Rate (%)
ISIN
Principal Amount (` in crore)
Date of Maturity
Listed on
11.80
INE081A08165
1,500
Perpetual
NSE & BSE
11.50
INE081A08173
775
Perpetual
NSE
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Table U (ii): Unsecured Redeemable Non-Convertible Debentures (‘NCDs’) are listed on the Wholesale Debt Market segment of
the Stock Exchanges as under:
(` in crore)
Coupon Rate (%)
ISIN
Principal Amount
10.40
11.00
9.15
2.00
8.15
10.25
10.25
INE081A08124
INE081A08132
INE081A08207
650.90
1,500.00
500.00
INE081A08215
1,000.00
INE081A08140
500.00
INE081A08157
2,500.00
INE081A08181
1,500.00
1,500.00
April 23, 2022
Amount
650.90
1,500.00
Maturity
Date
May 15, 2019
May 19, 2019
500.00
January 24, 2021
1,000.00
166.67
166.67
166.66
833.34
833.33
833.33
1,078.75
1,078.25
1,078.25
1,078.25
October 1, 2026
December 22, 2028
December 22, 2029
December 22, 2030
January 6, 2029
January 6, 2030
January 6, 2031
February 28, 2031
March 1, 2032
March 1, 2033
March 1, 2034
Credit Ratings
AA by CARE & India Ratings
AA by India Ratings
AA by CARE & AA
(Stable) by Brickwork
AA by CARE & AA
(Positive) by Brickwork
AA by CARE & AA
(Positive) by Brickwork
AA by CARE
AA by CARE & India Ratings
9.8359%
INE081A08223
4,315
Notes:
(a) 9.15% NCDs (ISIN: INE081A08199) aggregating to `500 crore were redeemed on the due date, January 24, 2019.
(b)
Further, during the year, Moody’s Investors Services upgraded long-term Corporate Family Rating of the Company by one notch from Ba3 to Ba2 while S&P
has revised its ratings outlook on the Company from ‘Stable’ to ‘Positive’ and affirmed the long-term credit rating of ‘BB-’.
The above details are available on our website www.tatasteel.com
Market Information
Table V: Market Price Data–High, Low and volume during each month in Financial Year 2018-19 of Fully Paid Shares:
BSE Limited
National Stock Exchange of India Limited
Month
April 2018
May 2018
June 2018
July 2018
August 2018
September 2018
October 2018
November 2018
December 2018
January 2019
February 2019
March 2019
Yearly
High (`)
Low (`)
623.90
636.30
607.55
586.50
614.30
646.70
594.45
610.00
552.50
524.05
511.95
531.80
646.70
558.00
536.60
538.35
493.50
540.55
574.50
530.10
513.25
486.90
442.10
452.30
502.75
442.10
Volume
(No. of shares
traded)
98,26,825
1,24,16,613
1,26,32,920
1,44,46,724
1,41,99,557
1,17,14,794
1,21,63,197
1,63,86,023
1,17,80,584
1,37,78,177
1,47,55,120
88,48,525
15,29,49,059
High (`)
Low (`)
624.50
636.80
608.20
586.50
614.50
647.60
594.40
610.60
552.70
524.50
512.30
531.90
647.60
557.55
536.55
538.25
493.00
540.60
575.00
529.35
512.50
486.15
441.35
452.00
502.00
441.35
Volume
(No. of shares
traded)
15,89,73,695
16,32,19,616
16,05,19,735
19,37,12,376
18,34,79,813
16,47,09,554
14,07,29,681
16,91,41,179
13,67,75,994
16,92,95,871
20,36,24,453
12,52,26,366
1,96,94,08,333
143
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Tata Steel Share Price versus BSE Sensex/NIFTY
700
600
500
400
300
200
12,000
11,500
11,000
10,500
10,000
700
600
500
400
300
200
40,000
39,000
38,000
37,000
36,000
35,000
34,000
33,000
8
1
-
r
p
A
8
1
-
y
a
M
8
1
-
e
n
u
J
8
1
-
y
l
u
J
8
1
-
g
u
A
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
8
1
-
r
p
A
8
1
-
y
a
M
8
1
-
e
n
u
J
8
1
-
y
l
u
J
8
1
-
g
u
A
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
Tata Steel on NSE
Nifty (RHS)
Tata Steel on BSE
Sensex (RHS)
The Company’s shares are regularly traded on BSE Limited and
National Stock Exchange of India Limited, as is seen from the volume
of shares indicated in the Table containing Market Information.
Secretarial Audit
The Company’s Board of Directors appointed Parikh and Associates,
Practising Company Secretaries Firm, to conduct secretarial audit
of its records and documents for the Financial Year 2018-19.
The secretarial audit report confirms that the Company has complied
with all applicable provisions of the Companies Act, 2013, Secretarial
Standards, Depositories Act 2018, SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, SEBI (Prohibition of
Insider Trading) Regulations, 2015, each as amended and all other
regulations and guidelines of SEBI as applicable to the Company.
The Secretarial Audit Report forms part of the Board’s Report.
Green Initiative
As a responsible corporate citizen, the Company supports the
‘Green Initiative’ undertaken by the Ministry of Corporate Affairs,
Government of India, enabling electronic delivery of documents
including the Annual Report, quarterly and half-yearly results,
amongst others, to Shareholders at their e-mail address previously
registered with the DPs and RTAs.
Shareholders who have not registered their e-mail addresses so
far are requested to do the same. Those holding shares in demat
form can register their e-mail address with their concerned DPs.
Shareholders who hold shares in physical form are requested to
register their e-mail addresses with the RTA, by sending a letter, duly
signed by the first/sole holder quoting details of Folio No.
144
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT Major Plant Locations:
Tata Steel Kalinganagar Plant
Tata Steel Limited
Kalinganagar Industrial Complex,
Duburi, Dist. Jajpur
Odisha - 755 026
Tata Steel Jamshedpur Plant
Tata Steel Limited
P.O. Bistupur,
Jamshedpur – 831 001
Cold Rolling Mill Complex, Bara
Tata Steel Limited
P.O. Agrico, P.S. Sidhgora,
Block: Jamshedpur, Dist. Purbi Singhbhum
Pin - 831 009
Tata Steel Growth Shop
Growth Shop
Tata Steel Limited
Adityapur Industrial Estate,
P.O. Gamharia, Dist. Seraikela-Kharsawan
Pin - 832 108
Tata Steel Tubes Division
Tubes Division
Tata Steel Limited
P.O. Burma Mines,
Jamshedpur - 831 007
Joda East Iron Mine
Joda Central Organisation
Tata Steel Limited, Joda,
Dist. Keonjhar, Odisha - 758 034
Wire Division, Pithampur
Pithampur Wire Division
Plot 158 & 158A, Sector III
Industrial Estate, Pithampur
Madhya Pradesh - 454 774
Bearings Division
Tata Steel Limited
P.O. Rakha Jungle, Nimpura Industrial Estate
Kharagpur, West Bengal - 721 301
Chromite Mine, Sukinda
Tata Steel Limited - Sukinda
Chromite Mine, P.O. Kalarangiatta,
Dist. Jajpur, Odisha - 755 028
Noamundi Iron Mine
Tata Steel Limited
West Singhbhum, Noamundi,
Jharkhand - 833 217
Ferro Alloys Plant
Tata Steel Limited
P.O. Bamnipal, Dist. Keonjhar,
Odisha - 758 082
Joda West Manganese Mines
Tata Steel Limited
P.O. Bichakundi, Joda, Dist. Keonjhar,
Odisha - 758 034
Bamebari Manganese Mines
Tata Steel Limited
P.O. Polaso ‘Ka’, Via: Joda, Dist. Keonjhar,
Odisha - 758 036
Cold Rolling Complex (West)
Tata Steel Limited
Plot No S 76, Tarapur Industrial Area,
P Box 22, Tarapur Industrial Estate Post Office,
District Palghar, Maharashtra - 401 506
Gomardih Dolomite Quarry
Tata Steel Limited
P.O. Tunmura, Dist. Sundergarh,
Odisha - 770 070
Wire Division, Tarapur
Tata Steel Limited - Wire Division
Plot F8 & A6, Tarapur MIDC,
P.O. Boisar, Dist. Palghar - 401 506
Wire Division, Indore
Indore - Tata Steel Limited, Wire Division
Plot 14/15/16 & 32 Industrial Estate,
Laxmibai Nagar, Fort Indore,
Madhya Pradesh - 452 006
Jharia Division
Tata Steel Limited
Jamadoba, Dhanbad,
Jharkhand - 828 112
West Bokaro Division
Tata Steel Limited
Ghatotand, Dist. Ramgarh,
Jharkhand - 825 314
Hooghly Met Coke Division
Tata Steel Limited
Patikhali, Haldia, Purba,
Medinipur, West Bengal - 721 606
Ferro Alloy Plant, Joda
Tata Steel Limited - Joda
Dist. Keonjhar, Odisha - 758 034
Ferro Chrome Plant
Tata Steel Limited - Gopalpur Project
P.O. Chamakhandi, Chatrapur Tahsil,
Dist. Ganjam, Odisha - 761 020
Investor Contact:
Registered Office:
Bombay House, 24, Homi Mody Street,
Fort, Mumbai - 400 001
Tel.: +91 22 6665 8282
E-mail: cosec@tatasteel.com
Website: www.tatasteel.com
CIN: L27100MH1907PLC000260
Name, designation & address of
Compliance Officer:
Mr. Parvatheesam K,
Company Secretary & Chief Legal Officer
(Corporate & Compliance)
Bombay House, 24, Homi Mody Street, Fort,
Mumbai - 400 001
Tel.: +91 22 6665 7279
E-mail: cosec@tatasteel.com
Name, designation & address of
Investor Relations Officer:
Mr. Sandep Agrawal,
Head - Group Investor Relation
One Forbes, 6th Floor, 1, Dr. V. B. Gandhi
Marg, Fort, Mumbai - 400 001
Tel.: +91 22 6665 0530;
E-mail: ir@tatasteel.com
Registrars and Transfer Agents:
TSR Darashaw Limited
CIN: U67120MH1985PLC037369
Unit: Tata Steel Limited,
6-10, Haji Moosa Patrawala Industrial Estate,
Near Famous Studio, 20, Dr. E Moses Road,
Mahalaxmi, Mumbai - 400 011
Contact Person: Ms. Mary George
Tel.: +91 22 6656 8484/8411/8412/8413
Fax: +91 22 6656 8494
Timings: Monday to Friday,
10 a.m. (IST) to 3.30 p.m. (IST)
E-mail: csg-unit@tsrdarashaw.com
Website: www.tsrdarashaw.com
145
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Stock Exchanges:
BSE Limited
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai - 400 001
Tel.: +91 22 2272 1233;
Fax: +91 22 2272 1919
Website: www.bseindia.com
India
National Stock Exchange of
Limited
Exchange Plaza, Plot No. C/1,
G Block Bandra-Kurla Complex,
Bandra (E), Mumbai - 400 051
Tel.: +91 22 2659 8100;
Fax: +91 22 2659 8120
Website: www.nseindia.com
London Stock Exchange
10 Paternoster Square,
London - EC4M 7LS
Tel: (+44) 20 7797 1000
Website: www.londonstockexchange.com
Depository Services:
National Securities Depository Limited
Trade World, A Wing, 4th & 5th Floors,
Kamala Mills Compound,
Lower Parel, Mumbai - 400 013
Tel.: +91 22 2499 4200;
Fax: +91 22 2497 6351
E-mail: info@nsdl.co.in
Investor Grievance: relations@nsdl.co.in
Website: www.nsdl.co.in
Luxembourg Stock Exchange
35A Boulevard Joseph II
L-1840 Luxembourg,
Tel: (+352) 4779361
Fax: (+352) 473298
Website: www.bourse.lu
Details of Corporate Policies
(India)
Central Depository Services
Limited
Marathon Futurex, A-Wing, 25th Floor,
NM Joshi Marg,
Lower Parel (East), Mumbai - 400 013
Tel.: +91 22 2305 8640/8624/8639/8663
E-mail: helpdesk@cdslindia.com,
Investor Grievance:
complaints@cdslindia.com
Website: www.cdslindia.com
Debenture Trustee:
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai - 400 001
Tel.: +91 22 4080 7000;
Fax: +91 22 6631 1776
E-mail: itsl@idbitrustee.com
Website: www.idbitrustee.com
Particulars
Dividend Distribution Policy
Composition and Profile of the Board of Directors https://www.tatasteel.com/corporate/our-organisation/leadership/
Terms and conditions of appointment of
Independent Directors
Website Details/Links
https://www.tatasteel.com/media/6086/dividend-policy-final.pdf
Policy on Appointment and Removal of Directors
Familiarisation Programme for
Independent Directors
Remuneration Policy of Directors, KMPs &
Other Employees
Tata Code of Conduct
Criteria for Making Payments to
Non-Executive Directors
Corporate Social Responsibility Policy
Code of Conduct for Non-Executive Directors
Policy on Related Party Transactions
Policy on Determining Material Subsidiary
Whistle Blower Policy
Code of Corporate Disclosure Practices
Policy on Determination of
Materiality for Disclosure
Document Retention and Archival Policy
Prevention of Sexual Harassment (POSH) at
Workplace Policy
Reconciliation of Share Capital Audit Report
146
https://www.tatasteel.com/media/2917/terms-and-conditions-of-appointment-of-
independent-directors.pdf
https://www.tatasteel.com/media/6816/policy-on-appointment-and-removal-
of-directors.pdf
https://www.tatasteel.com/media/7040/familiarisation-programme-for-
independent-directors.pdf
https://www.tatasteel.com/media/6817/remuneration-policy-of-directors-etc.pdf
https://www.tatasteel.com/media/1864/tcoc.pdf
https://www.tatasteel.com/media/3931/criteria-of-making-payments-to-neds.pdf
https://www.tatasteel.com/media/5804/csr-a.pdf
https://www.tatasteel.com/media/3930/tcoc-non-executive-directors.pdf
https://www.tatasteel.com/media/5891/policy-on-related-party-transactions.pdf
https://www.tatasteel.com/media/5890/policy-on-determining-material-subsidiaries.pdf
https://www.tatasteel.com/media/7527/wb-policy-for-business-associates-23052017.pdf
https://www.tatasteel.com/media/7528/whistle-blower-policy-for-
directors-employees-1.pdf
https://www.tatasteel.com/media/6843/code-of-corporate-disclosure-practices.pdf
https://www.tatasteel.com/media/6844/tata-steel-determination-of-materiality-policy.pdf
https://www.tatasteel.com/media/6845/tata-steel-document-retention-policy.pdf
https://www.tatasteel.com/media/7526/posh.pdf
https://www.tatasteel.com/investors/stock-exchange-compliances/reconciliation-of-share-
capital-audit-reports/
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCORPORATE GOVERNANCE REPORT
PRACTISING COMPANY SECRETARIES’ CERTIFICATE ON DIRECTORS
To,
The Members
Tata Steel Limited
This certificate is issued pursuant to clause 10(i) of the Part C of Schedule V of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended vide circular dated May 9, 2018 of the Securities and Exchange Board of India.
We have examined the compliance of provisions of the aforesaid clause 10(i) of the Part C of Schedule V of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and to the best of our information and according to the explanations given to us by the Company, and the
declarations made by the Directors, we certify that none of the directors of Tata Steel Limited (‘the Company’) CIN L27100MH1907PLC000260
having its registered office at Bombay House, 24-Homi Mody Street, Fort, Mumbai - 400 001 have been debarred or disqualified as on
March 31, 2019 from being appointed or continuing as directors of the Company by SEBI/Ministry of Corporate Affairs or any other
statutory authority.
For Parikh & Associates
Practising Company Secretaries
sd/-
P. N. PARIKH
FCS No.: 327 CP No.: 1228
Mumbai, April 25, 2019
PRACTISING COMPANY SECRETARIES’ CERTIFICATE ON CORPORATE GOVERNANCE
To,
The Members
Tata Steel Limited
We have examined the compliance of the conditions of Corporate Governance by Tata Steel Limited (‘the Company’) for the year ended on
March 31, 2019, as stipulated under Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and para C, D & E of Schedule V
of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI Listing Regulations’).
The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to the review
of procedures and implementation thereof, as adopted by the Company for ensuring compliance with conditions of Corporate Governance.
It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the Directors
and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the SEBI Listing
Regulations for the year ended on March 31, 2019.
We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness
with which the management has conducted the affairs of the Company.
Mumbai, April 25, 2019
For Parikh & Associates
Practising Company Secretaries
sd/-
P. N. PARIKH
FCS No.: 327 CP No.: 1228
147
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 PARTICULARS OF REMUNERATION
ANNEXURE 5
Particulars of Remuneration
Part A: Information pursuant to Section 197(12) of the Companies Act, 2013
[Read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014]
Ratio of the remuneration of each Director/KMP to the median remuneration of all the employees of the Company for the Financial Year:
Median remuneration of all the employees of the Company for the Financial Year 2018-19
The percentage increase in the median remuneration of employees in the Financial Year
The number of permanent employees on the rolls of Company as on March 31, 2019
`9,98,769
5.60%
32,984
Name of Director
Non-Executive Directors
Mr. N. Chandrasekaran (1)
Mr. D. K. Mehrotra (2)
Mr. V. K. Sharma (2)
Mr. Saurabh Agrawal (3)
Independent Directors
Ms. Mallika Srinivasan
Mr. O. P. Bhatt
Dr. Peter Blauwhoff
Mr. Aman Mehta
Mr. Deepak Kapoor
Executive Directors/KMP
Mr. T. V. Narendran (4)
Mr. Koushik Chatterjee (4)
Mr. Parvatheesam K (5)
Remuneration for Financial Year (` lakh)
2018-19
2017-18
% increase in
remuneration
Ratio of remuneration to median
remuneration of all employees(6)
-
40.40
37.20
-
129.00
190.60
117.80
94.80
114.00
1,122.63
1,082.14
169.92
-
85.30
-
-
119.40
180.00
79.40
84.40
75.60
942.94
913.80
124.91
-
*
*
-
8.04
5.89
48.36
12.32
50.79
19.06
18.42
^
-
*
*
-
12.92
19.08
11.79
9.49
11.41
112.40
108.35
*
^ Since the remuneration of Mr. Parvatheesam K is only for part of the previous year, increase in remuneration is not stated.
*Since the remuneration of these Directors/KMP is only for part of the year, the ratio of their remuneration to median remuneration is not comparable and hence
increase in remuneration is not stated.
Notes:
(1) As a policy, Mr. N. Chandrasekaran, Chairman, has abstained from receiving commission from the Company and hence not stated.
(2)
Mr. D. K. Mehrotra stepped down as Member of the Board effective May 16, 2018 and Mr. V. K. Sharma was appointed as an Additional (Non-Executive)
Director effective August 24, 2018. The commission of Mr. Mehrotra and Mr. Sharma is paid to Life Insurance Corporation of India.
In line with the internal guidelines of the Company no payment is made towards commission to the Non-Executive Directors of the Company, who are in full
time employment with any other Tata Company and hence not stated.
Mr. T. V. Narendran and Mr. Koushik Chatterjee do not receive any remuneration or commission from any of the subsidiary companies in which they are
Members of the Board.
Mr. Parvatheesam K was on leave between August 28, 2017 and July 11, 2018. Accordingly, his remuneration for the previous year includes salary drawn by
him as Company Secretary and Compliance Officer for the period April 1, 2017 through August 27, 2017 and salary received by him up to March 31, 2018
towards his earned leave. His remuneration for the current year includes salary drawn by him for the period July 12, 2018 through March 31, 2019.
(3)
(4)
(5)
(6) The ratio of remuneration to median remuneration is based on remuneration paid during the period April 1, 2018 to March 31, 2019.
During the year, the average percentage increase in salary of the Company’s employees, excluding the Key Managerial Personnel (‘KMP’) was
6.26%. The total remuneration of the KMPs for the Financial Year 2018-19 was `2,374.69 lakh as against `1,981.65 lakh during the previous
year. The percentage increase in remuneration during the Financial Year 2018-19 to Mr. T. V. Narendran, Chief Executive Officer & Managing
Director was 19.06% and to Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer was 18.42%. During the year, there has been no
exceptional increase in remuneration to the KMPs. Remuneration is as per the remuneration policy of the Company.
Mumbai
April 25, 2019
148
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
On behalf of the Board of Directors
sd/-
N. CHANDRASEKARAN
Chairman
DIN: 00121863
.
d
t
L
)
P
(
.
o
C
t
n
e
m
e
g
a
n
a
M
t
e
s
s
A
i
a
d
n
I
t
s
r
i
F
.
d
t
L
s
n
o
S
a
t
a
T
-
d
t
L
F
R
S
-
.
d
t
L
a
d
n
i
I
n
r
i
a
C
-
s
e
i
r
e
i
l
l
o
C
o
c
s
i
T
-
j
d
t
L
s
t
c
e
o
r
P
a
t
a
T
3
5
0
5
9
5
8
5
1
5
9
5
6
5
7
5
4
5
9
4
l
t
n
e
m
y
o
p
m
e
t
s
a
L
e
g
A
)
s
r
a
e
Y
(
f
o
e
t
a
D
f
o
t
n
e
m
e
c
n
e
m
m
o
c
t
n
e
m
y
o
p
m
e
l
8
8
9
1
-
7
0
-
1
0
5
9
9
1
-
1
1
-
3
1
1
8
9
1
-
7
0
-
7
2
2
1
0
2
-
0
1
-
8
1
5
0
0
2
-
4
0
-
1
0
3
1
0
2
-
5
0
-
6
1
6
8
9
1
-
7
0
-
1
0
8
8
9
1
-
7
0
-
1
0
8
8
9
1
-
2
1
-
6
1
0
9
9
1
-
7
0
-
2
0
e
c
n
e
i
r
e
p
x
E
)
s
r
a
e
Y
(
n
o
i
t
a
c
fi
i
l
a
u
Q
)
`
(
n
o
i
t
a
r
e
n
u
m
e
R
0
3
3
2
7
3
6
3
6
2
5
3
2
3
0
3
0
3
8
2
A
C
F
,
)
s
n
o
H
(
.
m
o
C
B
.
M
B
D
G
P
,
.
g
g
n
E
.
t
e
M
,
)
s
n
o
H
(
h
c
e
T
B
.
n
i
a
m
o
p
D
l
i
,
.
c
S
.
M
e
r
a
f
l
e
W
a
i
c
o
S
l
,
)
s
n
o
H
(
.
m
o
C
B
.
S
C
A
,
A
C
A
.
A
C
A
.
,
c
S
B
.
M
D
G
P
,
.
h
c
e
T
.
B
)
g
g
n
E
(
.
c
S
.
B
.
E
.
B
M
B
D
G
P
,
.
E
B
M
D
G
P
,
.
E
B
,
6
8
1
3
6
2
7
9
,
,
,
7
1
9
3
1
7
5
9
,
,
,
6
9
3
9
9
5
1
6
,
,
,
0
2
4
0
8
4
7
4
,
,
,
6
9
3
9
3
8
1
4
,
,
,
1
5
7
0
4
4
3
3
,
,
,
9
0
0
4
2
3
2
3
,
,
,
7
3
4
6
5
4
9
2
,
,
,
8
2
5
4
4
7
8
2
,
,
,
1
4
9
6
8
5
8
2
,
,
)
e
c
n
a
n
F
(
i
t
n
e
d
i
s
e
r
P
e
c
i
V
e
v
i
t
u
c
e
x
E
p
u
o
r
G
s
a
w
s
i
B
p
d
n
a
S
i
)
a
i
s
A
E
S
&
a
d
n
i
I
e
c
n
a
n
F
(
i
t
n
e
d
i
s
e
r
P
e
c
i
V
o
a
R
y
h
t
a
p
u
h
g
a
R
h
t
a
n
a
g
n
a
R
)
s
e
c
i
v
r
e
S
e
t
a
r
o
p
r
o
C
(
t
n
e
d
i
s
e
r
P
e
c
i
V
y
r
a
h
d
u
a
h
C
a
y
k
a
n
a
h
C
)
y
t
i
l
i
i
b
a
n
a
t
s
u
S
&
h
t
l
a
e
H
,
y
t
e
f
a
S
(
i
)
n
a
h
C
y
l
p
p
u
S
(
t
n
e
d
i
s
e
r
P
e
c
i
V
t
n
e
d
i
s
e
r
P
e
c
i
V
e
s
o
B
u
d
n
e
y
b
D
i
l
u
a
P
v
i
j
n
a
S
)
s
s
e
n
i
s
u
B
l
e
e
t
S
&
M
Q
T
(
t
n
e
d
i
s
e
r
P
n
e
S
d
n
a
n
A
)
t
n
e
m
e
g
a
n
a
M
e
c
r
u
o
s
e
R
n
a
m
u
H
(
t
n
e
d
i
s
e
r
P
e
c
i
V
i
h
t
a
p
i
r
T
t
t
u
D
h
s
e
r
u
S
j
)
s
t
c
e
o
r
P
&
g
n
i
r
e
e
n
g
n
E
(
i
t
n
e
d
i
s
e
r
P
e
c
i
V
a
h
J
n
a
j
n
a
R
h
s
e
j
a
R
0
1
&
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
i
&
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
n
o
i
t
a
n
g
i
s
e
D
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
i
e
e
j
r
e
t
t
a
h
C
k
h
s
u
o
K
i
n
a
r
d
n
e
r
a
N
.
V
.
T
e
m
a
N
.
o
N
.
l
S
1
2
3
4
5
6
7
8
9
3
1
0
2
,
t
c
A
s
e
i
n
a
p
m
o
C
f
o
7
9
1
n
o
i
t
c
e
S
o
t
t
n
a
u
s
r
u
p
e
r
u
s
o
l
c
s
i
D
f
o
t
n
e
m
e
t
a
t
S
:
B
t
r
a
P
]
4
1
0
2
,
s
e
l
u
R
)
l
e
n
n
o
s
r
e
P
l
a
i
r
e
g
a
n
a
M
f
o
n
o
i
t
a
r
e
n
u
m
e
R
d
n
a
t
n
e
m
t
n
o
p
p
A
i
(
s
e
i
n
a
p
m
o
C
f
o
)
3
(
5
d
n
a
)
2
(
5
s
e
l
u
R
h
t
i
w
d
a
e
R
[
:
9
1
-
8
1
0
2
r
a
e
Y
l
a
i
c
n
a
n
i
F
e
h
t
g
n
i
r
u
d
n
w
a
r
d
n
o
i
t
a
r
e
n
u
m
e
r
f
o
s
m
r
e
t
n
l
i
s
e
e
y
o
p
m
e
0
1
p
o
T
f
o
s
e
m
a
N
.
A
y
n
a
p
m
o
C
&
a
i
r
o
m
i
l
l
i
B
B
S
-
-
.
d
t
L
s
r
e
z
i
l
i
t
r
e
F
l
a
n
o
i
t
a
N
.
d
t
L
.
t
v
P
s
e
c
i
v
r
e
S
s
t
e
k
r
a
M
e
e
r
F
-
-
-
-
-
-
-
.
d
t
L
r
e
v
e
L
n
a
t
s
u
d
n
H
i
.
d
t
L
r
e
v
e
L
n
a
t
s
u
d
n
H
i
-
-
0
5
9
4
8
4
0
5
6
5
1
5
5
5
9
5
7
5
3
5
7
4
2
5
7
5
3
5
7
5
8
4
1
9
9
1
-
7
0
-
1
0
2
9
9
1
-
7
0
-
1
0
4
1
0
2
-
8
0
-
1
0
2
9
9
1
-
7
0
-
3
1
7
8
9
1
-
7
0
-
7
2
4
0
0
2
-
0
1
-
1
0
6
8
9
1
-
6
0
-
0
3
0
8
9
1
-
7
0
-
1
0
6
8
9
1
-
7
0
-
1
0
6
8
9
1
-
6
0
-
0
3
3
9
9
1
-
7
0
-
1
0
9
9
9
1
-
2
1
-
7
1
4
8
9
1
-
7
0
-
2
0
8
8
9
1
-
7
0
-
1
0
4
8
9
1
-
7
0
-
1
0
8
9
9
1
-
6
0
-
1
0
7
2
6
2
9
1
6
2
1
3
9
2
2
3
8
3
2
3
2
3
5
2
1
3
4
3
0
3
4
3
4
2
,
)
s
n
o
H
(
.
c
S
.
B
I
)
R
&
M
P
(
D
G
P
.
h
c
e
T
.
B
.
E
B
M
B
D
G
P
,
.
E
.
B
.
h
c
e
T
.
B
.
h
c
e
T
.
B
M
B
D
G
P
,
)
s
n
o
H
(
A
B
M
B
D
G
P
,
h
c
e
T
.
B
)
g
g
n
E
(
.
c
S
.
B
.
E
B
)
t
m
g
M
(
I
R
L
X
M
B
D
G
P
A
B
M
,
.
E
B
,
.
E
B
,
.
E
B
M
B
D
G
P
,
A
B
.
h
c
e
T
B
.
h
c
e
T
B
.
,
7
1
0
5
8
0
5
1
,
,
,
7
8
1
5
8
0
2
1
,
,
,
6
4
8
9
7
3
4
1
,
,
,
8
8
3
3
9
5
0
1
,
,
,
6
8
5
3
7
3
5
1
,
,
,
0
5
1
5
6
3
2
1
,
,
,
5
1
7
8
9
3
6
1
,
,
,
7
1
4
4
7
9
3
1
,
,
,
0
3
5
1
5
4
7
,
,
2
9
0
3
2
2
0
1
,
,
,
3
0
0
6
3
4
0
1
,
,
,
9
5
9
2
8
2
1
1
,
,
,
4
8
5
4
7
5
0
1
,
,
,
8
1
2
1
8
6
5
2
,
,
,
4
9
5
9
3
0
3
1
,
,
,
7
3
4
2
8
1
2
1
,
,
l
t
n
e
m
y
o
p
m
e
t
s
a
L
e
g
A
)
s
r
a
e
Y
(
f
o
e
t
a
D
f
o
t
n
e
m
e
c
n
e
m
m
o
c
t
n
e
m
y
o
p
m
e
l
e
c
n
e
i
r
e
p
x
E
)
s
r
a
e
Y
(
n
o
i
t
a
c
fi
i
l
a
u
Q
)
`
(
n
o
i
t
a
r
e
n
u
m
e
R
i
)
g
n
k
a
M
l
e
e
t
S
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
r
t
c
e
E
(
l
i
f
e
h
C
)
s
n
o
i
t
c
n
u
F
e
t
a
r
o
p
r
o
C
&
C
P
M
R
H
(
i
f
e
h
C
i
)
n
o
i
s
i
v
D
s
e
c
r
u
o
s
e
R
l
a
r
u
t
a
N
(
i
f
e
h
C
)
K
S
T
s
t
c
e
o
r
P
(
j
r
e
g
a
n
a
M
l
a
r
e
n
e
G
r
a
g
a
n
t
a
h
B
.
K
.
A
i
r
a
h
t
o
K
.
D
.
A
i
i
r
a
w
T
y
a
j
A
r
a
K
t
i
j
A
)
K
S
T
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
r
t
c
e
E
(
l
i
f
e
h
C
e
e
j
r
e
t
t
a
h
C
r
a
m
u
K
t
i
m
A
n
o
i
t
a
n
g
i
s
e
D
e
m
a
N
)
n
o
i
s
i
v
D
e
r
i
i
W
l
,
s
e
a
S
&
g
n
i
t
e
k
r
a
M
(
i
f
e
h
C
j
)
s
t
c
e
o
r
P
T
I
(
i
f
e
h
C
i
l
)
g
n
n
n
a
P
&
y
g
e
t
a
r
t
S
e
t
a
r
o
p
r
o
C
(
i
f
e
h
C
i
)
s
c
i
t
s
i
g
o
L
&
g
n
p
p
h
S
(
d
a
e
H
p
u
o
r
G
i
)
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
r
t
c
e
E
(
l
i
f
e
h
C
)
r
e
c
ffi
O
t
n
e
m
e
r
u
c
o
r
P
(
i
f
e
h
C
n
a
j
n
a
R
a
r
d
n
e
r
m
A
i
s
k
a
B
a
v
a
t
i
m
A
i
i
r
t
o
h
n
g
A
g
a
r
u
n
A
y
e
d
n
a
P
g
a
r
u
n
A
*
y
a
h
a
S
p
u
n
A
a
d
n
a
P
h
b
a
t
i
m
A
)
s
s
e
c
o
r
P
,
r
e
c
ffi
O
y
g
o
o
n
h
c
e
T
(
l
i
f
e
h
C
)
l
a
i
r
e
t
a
M
w
a
R
(
t
n
e
d
i
s
e
r
P
e
c
i
V
)
R
H
p
u
o
r
G
(
i
f
e
h
C
*
r
a
m
u
K
k
o
h
s
A
r
a
k
r
a
S
e
e
y
a
r
t
A
a
r
s
i
M
n
u
r
A
)
K
S
T
P
O
B
s
t
c
e
o
r
P
(
j
i
f
e
h
C
i
h
g
n
S
r
a
m
u
K
n
u
r
A
)
D
&
T
l
a
c
i
r
t
c
e
E
(
l
i
f
e
h
C
a
n
e
x
a
S
g
a
r
u
n
A
:
9
1
-
8
1
0
2
r
a
e
Y
l
a
i
c
n
a
n
i
F
e
h
t
g
n
i
r
u
d
h
k
a
l
o
w
t
d
n
a
e
r
o
r
c
e
n
O
s
e
e
p
u
R
n
a
h
t
s
s
e
l
t
o
n
n
o
i
t
a
r
e
n
u
m
e
r
e
t
a
g
e
r
g
g
a
f
o
t
p
i
e
c
e
r
n
l
i
e
r
a
o
h
w
s
e
e
y
o
p
m
e
r
e
h
t
o
f
o
s
e
m
a
N
.
B
.
o
N
.
l
S
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
149
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
.
d
t
L
y
n
a
p
m
o
C
r
e
w
o
P
a
t
a
T
-
l
t
n
e
m
y
o
p
m
e
t
s
a
L
.
i
d
t
L
s
r
e
e
n
g
n
E
o
c
n
e
s
u
A
.
d
t
L
a
d
n
i
I
l
e
e
t
S
r
a
s
s
E
d
t
L
S
G
E
A
I
-
-
-
-
PARTICULARS OF REMUNERATION
e
g
d
i
r
b
m
a
C
f
O
y
t
i
s
r
e
v
n
U
i
.
t
g
a
M
a
l
r
i
B
a
y
t
i
d
A
.
d
t
L
.
t
v
P
.
p
r
o
C
.
d
t
L
m
a
g
N
t
a
p
s
I
i
a
y
i
r
t
h
s
a
R
-
-
-
-
)
r
e
w
o
P
a
t
a
T
(
L
P
G
C
-
-
e
c
n
e
f
e
D
v
a
v
a
p
P
i
e
r
o
h
s
ff
O
&
y
c
n
a
t
l
u
s
n
o
C
a
t
a
T
d
t
L
s
e
c
i
v
r
e
S
d
t
L
o
r
p
W
i
.
c
n
I
r
e
z
fi
P
-
-
.
d
t
L
.
o
C
s
l
e
t
o
H
n
a
d
n
i
I
.
d
t
L
.
o
C
g
n
i
r
e
e
n
g
n
E
i
d
t
L
s
y
s
o
f
n
I
-
-
-
-
-
e
g
A
)
s
r
a
e
Y
(
f
o
e
t
a
D
f
o
t
n
e
m
e
c
n
e
m
m
o
c
t
n
e
m
y
o
p
m
e
l
e
c
n
e
i
r
e
p
x
E
)
s
r
a
e
Y
(
n
o
i
t
a
c
fi
i
l
a
u
Q
)
`
(
n
o
i
t
a
r
e
n
u
m
e
R
n
o
i
t
a
n
g
i
s
e
D
e
m
a
N
5
5
5
5
8
5
8
5
4
5
9
5
8
4
9
4
9
5
3
5
8
5
2
5
9
4
9
5
0
6
5
5
2
5
3
5
7
4
2
5
4
5
4
5
2
5
9
4
9
4
4
5
3
4
0
5
1
5
7
4
8
5
0
6
6
8
9
1
-
7
0
-
1
0
2
1
0
2
-
2
1
-
1
0
3
1
0
2
-
1
1
-
8
1
4
1
0
2
-
8
0
-
8
0
2
1
0
2
-
2
1
-
4
2
2
8
9
1
-
7
0
-
1
0
2
9
9
1
-
7
0
-
5
1
0
9
9
1
-
7
0
-
8
2
2
8
9
1
-
8
0
-
2
0
6
9
9
1
-
4
0
-
1
0
8
0
0
2
-
9
0
-
1
0
9
0
0
2
-
4
0
-
6
1
4
1
0
2
-
6
0
-
0
3
0
8
9
1
-
8
0
-
1
0
0
8
9
1
-
2
1
-
2
2
3
1
0
2
-
1
0
-
1
0
8
1
0
2
-
1
0
-
5
1
0
9
9
1
-
0
1
-
1
0
2
9
9
1
-
7
0
-
1
0
6
9
9
1
-
5
0
-
2
0
1
9
9
1
-
8
0
-
5
2
0
9
9
1
-
1
0
-
0
1
3
1
0
2
-
7
0
-
1
0
3
9
9
1
-
7
0
-
2
1
1
9
9
1
-
7
0
-
1
0
3
1
0
2
-
9
0
-
2
0
5
1
0
2
-
1
0
-
2
1
3
9
9
1
-
1
0
-
1
0
0
9
9
1
-
0
1
-
1
0
3
9
9
1
-
7
0
-
1
0
4
8
9
1
-
7
0
-
1
0
6
8
9
1
-
7
0
-
5
1
2
3
1
1
4
3
6
3
4
3
6
3
6
2
8
2
6
3
5
2
5
3
5
2
4
2
8
3
7
3
0
3
5
2
8
2
6
2
2
2
7
2
9
2
8
2
5
2
7
2
4
2
9
1
6
2
8
2
5
2
4
3
2
3
A
W
C
I
,
.
.
E
M
,
.
h
c
e
T
.
B
.
E
.
B
,
0
9
3
3
3
3
2
1
,
,
,
2
0
1
6
9
3
1
1
,
,
M
B
D
G
P
h
c
e
T
B
.
,
,
9
6
8
1
4
6
2
2
,
,
A
B
M
,
.
.
E
B
,
5
4
3
9
1
5
0
1
,
,
)
s
e
c
i
v
r
e
S
d
e
r
a
h
S
(
t
n
e
d
i
s
e
r
P
e
c
i
V
)
l
a
r
u
t
c
u
r
t
S
g
n
i
r
e
e
n
g
n
E
(
i
i
f
e
h
C
i
)
g
n
i
r
e
e
n
g
n
E
t
c
e
o
r
P
(
j
i
f
e
h
C
a
h
a
S
h
t
a
n
a
y
d
a
B
i
a
t
p
u
g
n
e
S
n
a
r
a
B
a
t
p
u
G
h
s
e
e
n
v
A
)
t
c
e
o
r
P
j
l
a
i
c
e
p
S
(
i
f
e
h
C
l
l
a
w
e
d
n
a
h
K
a
r
d
n
e
j
a
r
B
,
3
8
2
9
4
2
5
1
,
,
)
s
s
e
c
o
r
P
-
g
n
i
r
e
e
n
g
n
E
&
n
g
i
s
e
D
i
(
i
f
e
h
C
u
b
a
B
h
s
e
m
a
R
.
h
C
1
2
A
C
.
,
A
W
C
I
,
m
o
C
B
.
.
E
B
,
.
S
C
h
c
e
T
B
.
,
.
h
c
e
T
M
.
)
g
g
n
E
(
.
c
S
.
B
h
c
e
T
B
.
.
D
h
P
,
h
c
e
T
M
.
,
.
E
.
B
.
M
L
L
,
B
L
L
,
.
A
B
.
A
W
C
I
,
.
A
C
F
.
,
m
o
C
B
.
A
C
M
,
)
s
n
o
H
(
c
S
B
.
B
L
L
,
)
s
n
o
H
A
B
(
M
D
G
P
c
S
B
.
)
g
g
n
E
(
c
S
B
.
.
E
.
B
)
g
g
n
E
(
.
c
S
.
B
M
D
G
P
,
h
c
e
T
.
B
B
L
L
,
.
c
S
.
B
,
)
g
g
n
E
(
.
,
c
S
B
.
.
M
L
L
B
L
L
,
,
A
B
.
)
t
m
g
M
(
I
R
L
X
h
c
e
T
M
.
,
.
E
B
.
h
c
e
T
.
B
,
B
L
L
,
.
A
M
,
)
s
n
o
H
(
m
o
C
B
A
B
M
,
M
L
L
,
.
S
C
A
.
A
B
M
,
.
E
B
)
h
c
r
a
e
s
e
R
l
a
n
o
i
t
a
r
e
p
O
(
S
M
M
,
h
c
e
T
-
B
h
c
e
T
-
B
)
t
m
g
M
(
I
R
L
X
,
.
E
B
)
g
g
n
E
(
.
c
S
.
B
,
9
0
4
1
8
7
1
1
,
,
,
1
9
5
2
3
4
3
1
,
,
)
K
S
T
,
s
n
o
i
t
a
r
e
p
O
(
r
e
g
a
n
a
M
l
a
r
e
n
e
G
)
r
e
l
l
o
r
t
n
o
C
l
a
i
c
n
a
n
F
(
i
i
f
e
h
C
u
n
a
h
B
a
y
n
a
t
i
a
h
C
h
p
e
s
o
J
o
k
c
a
h
C
,
7
5
9
1
8
2
9
1
,
,
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
l
a
p
i
c
n
i
r
P
m
a
m
a
R
a
r
a
d
n
u
S
.
.
B
D
,
3
7
4
9
0
1
5
1
,
,
,
5
5
0
0
6
0
7
1
,
,
)
s
s
e
n
i
s
u
B
s
l
a
i
r
e
t
a
M
w
e
N
&
y
g
o
o
n
h
c
e
T
(
l
t
n
e
d
i
s
e
r
P
e
c
i
V
e
e
j
r
a
h
c
a
t
t
a
h
B
h
s
i
h
s
a
b
e
D
)
t
c
u
d
o
r
P
g
n
o
L
,
g
n
i
r
u
t
c
a
f
u
n
a
M
(
i
f
e
h
C
s
a
D
s
i
h
s
a
b
e
D
,
6
6
0
5
2
0
3
,
)
A
&
M
&
e
c
n
a
n
F
-
i
l
a
g
e
L
e
t
a
r
o
p
r
o
C
(
i
f
e
h
C
*
h
n
S
i
j
a
r
v
e
D
,
1
8
6
8
8
7
6
1
,
,
,
3
4
7
4
7
2
4
2
,
,
,
2
7
9
8
4
3
0
2
,
,
,
0
2
5
9
7
6
3
,
,
9
6
0
5
6
4
8
1
,
,
,
0
7
5
7
9
6
4
1
,
,
,
6
2
0
7
8
2
1
1
,
,
,
5
4
1
0
6
2
2
1
,
,
,
4
3
8
6
8
0
2
1
,
,
,
5
0
6
3
5
4
4
1
,
,
,
2
4
2
1
0
5
4
1
,
,
,
6
3
6
6
8
8
2
1
,
,
,
.
E
B
,
6
4
2
9
4
3
0
1
,
,
,
8
6
5
6
4
5
6
,
r
a
g
a
n
a
g
n
i
l
a
K
,
i
g
n
i
r
e
e
n
g
n
E
&
n
g
i
s
e
D
(
M
G
)
p
o
h
S
h
t
w
o
r
G
d
n
a
)
y
r
u
s
a
e
r
T
d
n
a
A
&
M
(
d
a
e
H
p
u
o
r
G
l
e
s
n
u
o
C
l
a
r
e
n
e
G
p
u
o
r
G
a
t
t
u
D
u
d
n
e
y
b
D
i
r
a
w
a
T
l
i
l
a
p
D
i
a
h
J
d
n
a
N
a
k
i
r
a
w
D
)
n
o
i
t
c
e
t
o
r
P
d
n
a
r
B
&
y
t
i
r
u
c
e
S
(
i
f
e
h
C
y
r
a
h
d
u
o
h
C
d
a
s
a
r
P
l
a
p
o
G
)
l
l
i
M
d
o
R
e
r
i
W
(
i
f
e
h
C
*
e
e
j
r
e
h
k
u
M
.
G
)
r
a
h
k
h
S
T
i
I
&
n
o
i
t
a
m
o
t
u
A
(
i
f
e
h
C
i
h
g
n
S
r
a
m
u
K
h
s
i
n
a
M
)
M
A
F
(
e
g
r
a
h
C
-
n
i
-
e
v
i
t
u
c
e
x
E
)
K
S
T
,
l
l
i
M
p
i
r
t
S
t
o
H
(
i
f
e
h
C
i
h
g
n
S
r
e
e
v
m
a
r
a
K
s
a
m
o
h
T
.
C
.
M
)
r
e
c
ffi
O
n
o
i
t
a
m
r
o
f
n
I
(
i
f
e
h
C
e
e
j
r
e
n
a
B
a
t
n
a
y
a
J
)
n
o
i
t
a
g
i
t
i
L
&
l
a
i
r
t
s
u
d
n
I
(
r
e
c
ffi
O
l
a
g
e
L
f
e
h
C
i
l
l
a
L
a
n
e
e
M
)
e
c
n
a
r
u
s
s
A
&
t
i
d
u
A
e
t
a
r
o
p
r
o
C
(
i
f
e
h
C
a
i
s
A
t
s
a
E
h
t
u
o
S
&
a
d
n
i
I
a
m
r
a
h
S
h
s
i
n
a
M
l
)
s
n
o
i
t
u
o
S
&
s
e
c
i
v
r
e
S
(
i
f
e
h
C
)
s
t
c
e
o
r
P
j
l
a
i
c
e
p
S
(
i
f
e
h
C
*
e
s
o
h
G
.
K
P.
d
n
a
n
A
P.
i
l
)
g
n
n
n
a
P
t
c
e
o
r
P
(
j
i
f
e
h
C
l
r
a
a
S
h
g
n
S
y
a
h
b
r
i
i
N
,
5
3
6
3
3
0
1
1
,
,
,
9
6
3
2
9
9
6
1
,
,
,
4
1
3
4
3
2
4
2
,
,
,
0
9
2
5
0
2
3
1
,
,
,
5
3
4
8
9
0
2
1
,
,
,
9
8
2
5
9
1
1
1
,
,
,
8
0
5
2
4
7
9
,
)
e
c
n
a
i
l
p
m
o
C
&
e
t
a
r
o
p
r
o
C
(
r
e
c
ffi
O
l
a
g
e
L
f
e
h
C
i
&
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
l
)
s
e
a
S
&
g
n
i
t
e
k
r
a
M
l
e
e
t
S
(
t
n
e
d
i
s
e
r
P
e
c
i
V
l
)
t
n
e
m
p
o
e
v
e
D
y
t
i
l
i
b
a
p
a
C
(
i
f
e
h
C
)
D
M
B
I
(
e
g
r
a
h
C
-
n
I
-
e
v
i
t
u
c
e
x
E
l
)
s
t
n
a
P
e
k
o
C
(
i
f
e
h
C
m
a
h
d
a
n
h
c
n
a
K
i
m
a
s
e
e
h
t
a
v
r
a
P
a
t
p
u
G
h
s
u
y
e
e
P
r
a
m
u
K
t
a
h
b
a
r
P
i
h
g
n
S
h
s
a
k
a
r
P
a
r
h
s
i
M
r
a
h
k
a
r
P
)
.
s
u
B
s
e
r
i
l
W
a
b
o
G
l
-
.
v
e
D
s
s
e
n
i
s
u
B
(
i
f
e
h
C
*
r
a
k
e
s
r
U
M
t
n
a
h
s
a
r
P
3
4
4
4
5
4
6
4
7
4
8
4
)
Q
&
M
O
M
R
H
(
i
f
e
h
C
a
r
h
s
i
M
i
h
t
a
r
a
s
a
h
t
r
a
P
2
4
.
o
N
.
l
S
7
1
8
1
9
1
0
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
3
0
4
1
4
150
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
n
a
m
r
i
a
h
C
3
6
8
1
2
1
0
0
:
I
N
D
-
/
d
s
N
A
R
A
K
E
S
A
R
D
N
A
H
C
.
N
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
O
.
9
1
-
8
1
0
2
r
a
e
Y
l
t
n
e
m
y
o
p
m
e
t
s
a
L
e
g
A
)
s
r
a
e
Y
(
f
o
e
t
a
D
f
o
t
n
e
m
e
c
n
e
m
m
o
c
t
n
e
m
y
o
p
m
e
l
e
c
n
e
i
r
e
p
x
E
)
s
r
a
e
Y
(
n
o
i
t
a
c
fi
i
l
a
u
Q
)
`
(
n
o
i
t
a
r
e
n
u
m
e
R
n
o
i
t
a
n
g
i
s
e
D
e
m
a
N
.
o
N
.
l
S
t
n
e
m
e
C
y
r
u
t
n
e
C
t
n
e
m
e
C
r
a
h
a
M
&
i
i
n
a
n
a
r
I
l
e
e
t
s
e
t
a
N
.
o
C
k
c
o
t
S
.
t
J
.
t
v
P
k
n
a
B
s
i
x
A
-
.
d
t
L
l
e
e
t
S
l
a
d
n
i
J
-
-
l
a
n
o
i
t
a
n
r
e
t
n
I
a
t
a
T
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
d
t
L
l
e
e
t
S
a
k
v
a
M
l
i
-
1
5
0
6
1
5
2
5
2
5
1
5
8
5
0
5
5
5
0
6
8
4
8
5
6
5
6
4
3
4
3
5
2
5
9
4
6
5
7
5
4
5
5
5
9
4
0
5
0
5
7
5
1
5
9
5
8
4
3
5
0
9
9
1
-
7
0
-
2
0
1
8
9
1
-
2
0
-
2
0
9
8
9
1
-
7
0
-
1
0
7
8
9
1
-
7
0
-
1
0
8
8
9
1
-
7
0
-
1
0
0
9
9
1
-
0
1
-
1
0
2
8
9
1
-
8
0
-
2
0
1
9
9
1
-
7
0
-
1
0
8
8
9
1
-
9
0
-
9
2
2
8
9
1
-
8
0
-
2
0
2
1
0
2
-
0
1
-
8
1
3
8
9
1
-
8
0
-
8
0
1
9
9
1
-
9
0
-
0
2
4
9
9
1
-
7
0
-
3
1
5
1
0
2
-
4
0
-
1
0
9
8
9
1
-
7
0
-
1
0
1
9
9
1
-
7
0
-
1
0
5
0
0
2
-
4
0
-
1
0
5
8
9
1
-
7
0
-
1
0
4
8
9
1
-
7
0
-
2
0
7
8
9
1
-
7
0
-
1
0
0
0
0
2
-
9
0
-
5
0
2
9
9
1
-
7
0
-
1
0
0
9
9
1
-
7
0
-
2
0
2
9
9
1
-
7
0
-
3
1
8
9
9
1
-
6
0
-
2
2
0
9
9
1
-
7
0
-
2
0
0
8
9
1
-
8
0
-
1
0
9
9
9
1
-
1
0
-
1
0
6
8
9
1
-
7
0
-
1
0
8
2
8
3
9
2
1
3
0
3
8
2
6
3
7
2
0
3
6
3
6
2
5
3
7
2
4
2
8
1
9
2
7
2
1
2
3
3
4
3
4
3
8
1
6
2
8
2
6
2
0
2
8
2
8
3
4
2
2
3
M
B
D
G
P
,
)
g
g
n
E
(
.
c
S
.
B
.
E
.
B
M
B
D
G
P
,
)
g
g
n
E
(
.
c
S
.
B
M
B
D
G
P
,
h
c
e
T
B
.
)
g
g
n
E
(
.
c
S
.
B
)
g
g
n
E
(
.
c
S
.
B
h
c
e
T
B
.
M
D
G
P
,
)
s
n
o
H
A
B
(
.
D
h
P
,
h
c
e
T
B
.
.
E
.
B
h
c
e
T
B
.
.
E
B
h
c
e
T
-
B
)
t
m
g
M
l
a
i
r
e
t
a
M
(
,
)
s
n
o
H
(
.
c
S
.
B
M
D
G
P
.
E
B
a
m
o
p
D
l
i
.
E
B
,
g
n
i
r
e
e
n
g
n
E
i
M
B
D
G
P
,
.
E
.
B
)
g
g
n
E
(
c
S
B
.
M
D
G
P
,
h
c
e
T
B
.
M
B
D
G
P
,
.
E
B
a
m
o
p
D
l
i
,
.
.
E
B
A
B
M
,
c
S
M
.
,
c
S
B
.
A
B
M
,
.
E
B
i
g
n
i
r
e
e
n
g
n
E
a
m
o
p
D
l
i
M
D
G
P
,
h
c
e
T
B
.
M
D
G
P
,
.
E
.
B
h
c
e
T
B
.
.
E
.
B
)
t
m
g
M
(
a
m
o
p
D
l
i
,
.
.
E
B
h
c
e
T
B
.
,
7
9
7
2
5
7
3
1
,
,
,
5
7
6
7
6
8
0
1
,
,
,
1
6
0
1
2
9
1
1
,
,
,
8
0
5
7
5
0
2
1
,
,
,
3
5
6
9
9
9
2
1
,
,
,
2
6
1
6
7
9
6
2
,
,
,
2
0
4
6
5
6
4
1
,
,
,
3
3
5
5
0
5
5
1
,
,
,
7
3
2
1
7
2
8
,
,
5
2
0
5
4
5
0
1
,
,
,
4
9
9
7
7
9
9
1
,
,
,
4
0
3
6
9
8
4
1
,
,
,
6
1
1
4
6
4
0
1
,
,
)
K
S
T
,
s
m
e
t
s
y
S
r
e
w
o
P
&
s
e
i
t
i
l
i
t
U
(
i
f
e
h
C
)
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
n
a
h
c
e
M
(
i
f
e
h
C
)
P
&
E
M
R
H
(
i
f
e
h
C
)
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
&
e
v
i
t
o
m
o
t
u
A
(
S
M
O
C
)
t
c
u
d
o
r
P
t
a
F
l
,
g
n
i
r
u
t
c
a
f
u
n
a
M
(
i
f
e
h
C
)
K
S
T
-
n
o
i
t
a
r
e
p
O
(
t
n
e
d
i
s
e
r
P
e
c
i
V
i
)
a
d
n
I
-
s
e
r
i
l
W
a
b
o
G
l
(
e
g
r
a
h
C
-
n
I
-
e
v
i
t
u
c
e
x
E
)
o
r
a
k
o
B
t
s
e
W
s
n
o
i
t
a
r
e
p
O
(
i
f
e
h
C
)
l
a
o
C
(
r
e
g
a
n
a
M
l
a
r
e
n
e
G
)
.
t
i
m
g
M
p
h
s
n
o
i
t
a
e
R
r
e
m
o
t
s
u
C
l
(
i
f
e
h
C
i
&
e
c
n
a
n
F
p
r
o
C
-
d
a
e
H
p
u
o
r
G
t
n
e
m
e
g
a
n
a
M
k
s
i
R
*
r
a
k
r
a
S
t
i
j
n
e
s
o
r
P
h
s
o
h
G
l
a
b
o
r
P
i
k
a
t
n
h
C
h
s
e
j
a
R
r
a
m
u
K
h
s
e
j
a
R
r
a
m
u
K
v
i
j
a
R
.
N
h
s
e
j
a
R
i
n
o
S
r
a
m
u
K
v
i
j
a
R
h
g
n
S
i
K
S
*
i
t
r
a
b
a
r
k
a
h
C
r
i
m
a
S
o
o
r
h
c
u
K
i
j
b
a
h
a
S
h
a
h
S
a
t
i
m
a
S
l
)
t
n
e
m
p
o
e
v
e
D
&
h
c
r
a
e
s
e
R
(
i
f
e
h
C
a
r
d
n
a
h
C
y
a
j
n
a
S
i
)
g
n
k
a
M
l
e
e
t
S
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
n
a
h
c
e
M
(
i
f
e
h
C
i
a
d
e
K
r
a
m
u
K
y
a
j
n
a
S
9
4
0
5
1
5
2
5
3
5
4
5
5
5
6
5
7
5
8
5
9
5
0
6
1
6
,
7
0
6
3
7
3
0
1
,
,
)
l
i
a
t
e
R
&
s
t
c
u
d
o
r
P
d
e
d
n
a
r
B
(
S
M
O
C
i
n
h
a
S
S
y
a
j
n
a
S
2
6
,
5
9
2
0
8
8
4
1
,
,
,
4
5
9
5
5
9
2
1
,
,
,
7
3
2
4
5
9
0
1
,
,
,
5
2
2
3
4
2
1
1
,
,
,
7
3
5
1
3
7
0
1
,
,
)
t
n
e
m
e
g
a
n
a
M
t
n
e
m
t
s
e
v
n
I
p
u
o
r
G
(
i
f
e
h
C
r
a
r
a
M
.
K
r
a
k
n
a
h
S
)
J
S
T
s
t
c
e
o
r
P
(
j
i
f
e
h
C
r
a
m
u
K
a
r
d
n
a
h
C
t
a
r
a
h
S
)
d
n
a
h
k
r
a
h
J
,
e
v
i
t
u
c
e
x
E
t
n
e
d
i
s
e
R
(
i
f
e
h
C
a
m
r
e
V
h
s
e
l
i
a
h
S
)
K
S
T
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
n
a
h
c
e
M
(
i
f
e
h
C
i
y
r
a
w
T
r
a
m
u
K
h
s
i
t
a
S
)
P
C
&
S
D
T
B
(
i
f
e
h
C
a
h
J
t
i
j
a
r
a
S
,
4
9
8
1
1
2
8
2
,
,
,
4
1
1
5
1
2
6
2
,
,
,
3
9
2
2
1
8
0
1
,
,
,
7
1
5
4
7
9
0
1
,
,
,
5
0
6
5
4
2
4
1
,
,
,
3
0
3
0
1
3
3
2
,
,
,
5
3
5
1
5
9
1
1
,
,
,
8
0
6
6
5
7
0
1
,
,
,
2
5
0
4
1
6
4
1
,
,
,
8
0
4
5
5
8
0
1
,
,
,
6
1
2
3
5
7
3
1
,
,
j
t
r
o
p
x
E
&
s
t
c
e
o
r
P
,
s
t
c
u
d
o
r
P
l
a
i
r
t
s
u
d
n
I
(
S
M
O
C
)
l
l
i
M
p
i
r
t
S
t
o
H
(
i
f
e
h
C
)
s
s
e
n
i
s
u
B
l
a
i
r
e
t
a
M
w
e
N
(
i
f
e
h
C
)
s
e
b
u
T
(
e
g
r
a
h
C
-
n
i
-
e
v
i
t
u
c
e
x
E
i
)
g
n
k
a
M
n
o
r
I
(
t
n
e
d
i
s
e
r
P
e
c
i
V
i
)
n
o
i
t
a
r
t
s
i
n
m
d
A
&
g
n
n
n
a
P
s
e
a
S
(
l
l
i
i
f
e
h
C
)
g
n
i
r
u
t
c
a
f
u
n
a
M
l
e
e
t
S
(
t
n
e
d
i
s
e
r
P
e
c
i
V
)
s
e
c
i
v
r
e
S
e
t
a
r
o
p
r
o
C
(
t
n
e
d
i
s
e
r
P
e
c
i
V
k
a
h
t
a
P
u
s
n
a
h
d
u
S
*
n
a
r
a
k
s
a
h
B
l
i
n
u
S
i
l
u
g
n
a
G
a
t
n
a
h
s
u
S
y
o
n
e
h
S
s
a
v
n
i
r
S
V
T
i
.
.
i
t
r
o
b
a
r
k
a
h
C
l
a
j
j
U
n
a
r
d
n
a
h
c
i
v
a
R
.
V
i
h
g
n
S
m
a
t
t
U
h
a
h
S
.
K
V
.
i
)
g
n
k
a
M
n
o
r
I
e
c
n
a
n
e
t
n
a
M
i
l
a
c
i
n
a
h
c
e
M
(
i
f
e
h
C
l
a
a
r
i
N
r
a
m
u
K
y
a
j
i
V
)
e
c
n
e
l
l
l
e
c
x
E
y
g
o
o
n
h
c
e
T
&
a
r
f
n
I
(
i
f
e
h
C
a
v
a
t
s
a
v
i
r
S
h
s
a
k
a
r
P
d
e
V
)
s
t
c
u
d
o
r
P
r
e
c
ffi
O
y
g
o
o
n
h
c
e
T
(
l
i
f
e
h
C
e
d
b
a
h
s
a
h
a
M
V
y
a
n
V
i
.
3
6
4
6
5
6
6
6
7
6
8
6
9
6
0
7
1
7
2
7
3
7
4
7
5
7
6
7
7
7
8
7
i
t
u
b
s
d
n
u
F
n
o
i
t
a
u
n
n
a
r
e
p
u
S
d
n
a
t
n
e
d
v
o
r
P
o
t
n
o
i
t
u
b
i
r
t
n
o
c
s
’
y
n
a
p
m
o
C
e
h
t
d
n
a
s
r
o
t
c
e
r
i
D
e
h
t
o
t
n
o
i
s
s
i
m
m
o
c
,
s
e
t
i
s
i
u
q
r
e
p
f
o
e
u
a
v
y
r
a
t
e
n
o
m
l
,
s
e
c
n
a
w
o
l
l
a
,
y
r
a
a
s
l
s
e
s
i
r
p
m
o
C
n
o
i
t
a
r
e
n
u
m
e
R
s
s
o
r
G
)
1
(
:
s
e
t
o
N
.
y
n
a
p
m
o
C
e
h
t
f
o
r
e
g
a
n
a
M
r
o
y
n
a
p
m
o
C
e
h
t
f
o
r
o
t
c
e
r
i
D
y
n
a
f
o
e
v
i
t
a
e
r
a
s
i
l
e
v
o
b
a
d
e
n
o
i
t
n
e
m
l
s
e
e
y
o
p
m
e
e
h
t
f
o
e
n
o
N
.
l
e
b
a
l
i
a
v
a
t
o
n
e
r
a
s
e
r
u
g
fi
e
t
a
r
a
p
e
s
s
a
n
o
i
t
a
u
a
v
l
l
a
i
r
a
u
t
c
a
f
o
s
i
s
a
b
e
h
t
n
o
d
n
u
F
y
t
i
u
t
a
r
G
o
t
n
o
i
t
u
b
i
r
t
n
o
c
s
e
d
u
l
c
x
e
.
l
a
u
t
c
a
r
t
n
o
c
s
i
s
e
s
a
c
l
l
a
n
i
l
t
n
e
m
y
o
p
m
e
f
o
e
r
u
t
a
n
e
h
T
l
a
i
c
n
a
n
F
e
h
t
i
f
o
t
r
a
p
e
h
t
l
r
o
f
d
e
y
o
p
m
e
s
e
t
a
c
i
d
n
I
*
)
2
(
)
3
(
)
4
(
9
1
0
2
,
5
2
l
i
r
p
A
i
a
b
m
u
M
151
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
.
0
0
0
0
1
0
5
8
8
.
.
0
0
0
0
1
1
0
5
9
.
.
0
0
0
0
1
0
0
0
6
.
.
0
0
0
0
1
6
4
6
6
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
6
0
5
5
.
0
5
4
5
.
.
0
0
0
0
1
0
0
0
9
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
0
7
6
.
.
0
0
0
0
1
.
0
0
0
0
1
-
.
0
0
0
0
1
0
5
6
5
.
.
0
0
0
0
1
0
0
0
6
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
-
-
-
-
-
-
-
-
3
8
9
.
5
2
9
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7
7
2
9
.
2
1
0
1
.
)
8
6
5
(
.
9
0
3
1
.
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
2
8
8
1
.
)
0
6
7
(
.
-
6
8
6
.
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
.
8
5
1
1
1
2
5
2
.
)
8
6
5
(
.
5
9
9
1
.
5
9
4
4
.
0
0
4
1
.
.
6
9
8
5
0
2
7
9
.
6
2
0
.
)
0
0
0
(
.
.
)
5
5
7
3
5
(
1
7
4
2
.
5
7
2
.
)
7
8
3
(
.
)
3
0
0
(
.
.
9
8
1
8
1
.
3
3
4
2
1
-
6
0
0
.
.
)
6
8
3
0
1
(
.
)
3
3
0
7
0
1
(
,
-
-
-
9
0
0
.
8
5
4
.
0
0
0
.
)
5
7
3
(
.
-
7
1
0
3
.
3
4
3
6
.
-
-
-
.
8
0
9
8
2
)
9
2
0
(
.
-
.
)
4
0
0
3
1
(
)
5
1
6
3
(
.
-
7
0
2
.
0
1
3
6
.
8
5
4
.
8
8
0
.
)
0
1
0
(
.
)
0
1
8
(
.
0
6
7
5
.
)
4
5
7
1
(
.
-
1
1
6
3
.
.
2
4
4
4
6
2
,
-
-
5
6
0
.
3
6
0
.
4
0
0
.
-
-
0
2
0
.
1
5
3
.
-
3
5
4
.
7
1
0
.
0
2
7
9
.
5
3
0
.
)
0
0
0
(
.
.
)
5
5
7
3
5
(
.
9
2
9
2
5
7
2
.
)
2
6
7
(
.
)
3
0
0
(
.
.
6
0
2
1
2
.
7
7
7
8
1
-
6
0
0
.
.
)
6
8
3
0
1
(
.
)
5
2
1
8
7
(
)
9
2
0
(
.
.
)
9
1
6
6
1
(
-
2
7
2
.
.
0
1
3
6
1
2
5
.
2
9
0
.
)
0
1
0
(
.
)
0
9
7
(
.
1
1
1
6
.
)
4
5
7
1
(
.
-
8
2
6
3
.
.
5
9
8
4
6
2
,
-
7
8
7
.
8
3
0
.
-
-
3
9
5
1
.
.
4
6
8
8
2
0
0
0
.
3
9
5
1
.
9
3
4
2
.
8
5
6
6
.
9
7
5
6
.
.
0
6
2
7
4
.
6
6
2
5
1
.
9
3
1
5
2
1
2
,
.
5
4
2
8
0
1
2
,
.
)
2
3
0
7
1
(
8
0
3
.
)
2
2
2
1
(
.
9
0
0
8
.
8
3
1
.
8
7
6
4
.
9
9
5
.
.
3
4
0
6
4
.
3
1
4
1
1
1
,
8
6
3
1
.
.
5
5
8
1
7
.
9
8
5
5
8
.
9
9
2
1
1
5
3
4
2
.
-
-
-
3
1
0
2
.
-
-
.
6
9
4
7
1
.
5
4
7
6
4
2
,
.
1
1
5
5
1
2
,
-
-
-
-
3
9
0
.
.
5
0
2
9
9
.
7
0
2
9
6
3
,
-
-
.
6
4
8
8
5
.
4
4
0
2
5
1
,
-
-
.
1
0
3
5
4
.
9
2
8
7
3
1
,
-
.
1
0
5
9
1
-
.
5
2
2
0
2
-
-
-
2
9
6
7
.
7
2
6
.
0
1
0
.
3
2
0
.
8
2
0
1
.
6
0
0
.
-
3
3
8
9
.
0
6
4
.
-
2
0
0
.
1
2
1
.
.
2
5
2
4
2
-
-
-
-
3
4
6
2
.
-
-
-
-
-
-
-
-
-
-
-
-
.
4
3
2
0
0
1
1
,
.
1
8
3
4
1
4
5
6
5
.
-
0
0
5
5
.
.
8
3
1
8
1
5
6
2
1
.
2
3
0
.
.
6
1
3
8
2
-
-
.
1
6
0
1
9
1
,
.
3
4
8
4
8
1
,
9
3
0
.
4
5
6
4
.
.
3
5
6
0
1
.
5
1
5
6
1
.
2
0
2
9
5
0
4
,
3
5
6
1
.
.
7
5
1
1
1
.
6
0
5
1
3
1
,
.
7
5
8
9
2
5
0
0
.
2
2
5
3
.
6
7
0
1
.
.
2
4
5
1
6
.
1
8
0
4
2
1
0
0
.
)
0
0
0
(
.
.
0
2
3
2
1
1
1
,
.
3
8
0
0
4
8
,
.
8
3
4
4
0
2
1
,
.
8
2
3
7
4
3
6
8
9
.
.
3
5
1
5
1
9
8
0
.
.
9
4
2
8
3
1
,
.
8
2
4
2
3
1
,
2
2
1
.
)
0
0
0
(
.
-
6
1
0
.
.
3
5
9
9
3
6
1
,
.
)
9
3
8
9
6
5
4
(
,
1
5
8
2
.
8
2
0
3
.
1
6
1
.
6
1
0
.
.
3
8
2
1
3
4
4
,
.
0
8
4
0
5
0
5
,
.
)
5
8
1
3
9
6
4
(
,
.
2
8
3
2
1
3
5
,
1
0
0
.
)
5
0
0
(
.
.
)
6
4
4
0
1
(
.
)
4
9
7
6
2
(
.
2
8
6
6
1
5
2
7
9
.
0
6
0
5
.
)
7
2
0
1
(
.
.
9
9
8
3
7
.
7
0
8
6
0
1
,
.
)
2
8
2
8
0
1
(
,
3
6
3
.
)
5
0
6
6
(
.
.
)
6
1
0
3
6
(
.
4
1
7
7
1
-
9
1
6
.
)
9
0
7
(
.
.
8
2
8
0
1
1
,
7
7
7
2
.
0
0
4
.
1
0
0
.
.
2
1
9
8
1
1
,
9
8
7
.
3
3
1
.
1
7
5
6
.
0
4
0
.
9
0
8
2
.
0
4
5
1
.
6
0
1
.
-
.
9
0
7
9
6
3
5
,
4
9
3
3
.
6
1
2
2
.
.
7
4
0
3
6
3
0
1
5
.
-
6
9
9
.
2
1
2
7
.
.
4
2
0
0
1
.
4
5
2
5
1
.
4
6
0
2
0
1
,
.
8
1
7
6
4
7
3
,
-
4
1
5
4
.
0
0
0
.
.
2
9
8
0
2
-
.
9
7
3
6
1
0
0
0
.
0
0
0
.
.
5
9
8
9
1
.
)
4
7
8
1
1
(
.
6
4
3
3
8
5
2
,
.
)
4
7
5
2
2
2
5
(
,
5
1
9
6
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
5
1
9
6
.
5
1
9
6
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
7
7
4
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
3
0
1
5
.
7
9
6
1
.
3
0
1
5
.
2
3
0
1
.
3
0
1
5
.
2
3
0
1
.
5
1
9
6
.
0
0
0
.
8
1
2
.
8
1
2
.
2
5
0
9
.
5
1
9
6
.
2
5
0
9
.
D
S
U
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
D
S
U
D
S
U
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
A
Z
P
B
G
P
B
G
P
B
G
D
G
S
R
Y
M
D
G
S
Y
N
C
D
G
S
Y
N
C
D
S
U
D
N
V
B
H
T
B
H
T
P
B
G
D
S
U
P
B
G
3
0
0
2
,
0
2
r
e
b
m
e
c
e
D
d
t
L
s
t
c
u
d
o
r
P
e
r
i
W
&
l
e
e
t
S
n
a
d
n
i
I
e
h
T
6
0
0
2
,
1
1
r
e
b
o
t
c
O
d
e
t
i
i
m
L
e
n
o
Z
c
i
m
o
n
o
c
E
l
a
i
c
e
p
S
l
e
e
t
S
a
t
a
T
3
0
0
2
,
5
2
t
s
u
g
u
A
s
e
c
i
v
r
e
S
&
s
e
i
t
i
l
i
t
U
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
m
L
y
n
a
p
m
o
C
8
0
0
2
,
6
r
e
b
m
e
c
e
D
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
r
e
t
a
W
a
d
a
H
l
i
6
0
0
2
,
7
2
r
e
b
m
e
t
p
e
S
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
8
1
0
2
,
8
y
r
a
u
n
a
J
5
1
0
2
,
0
3
l
i
r
p
A
5
1
0
2
,
0
3
l
i
r
p
A
7
0
0
2
,
4
1
h
c
r
a
M
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
d
e
r
a
h
S
l
a
b
o
G
l
i
t
a
m
i
l
a
K
d
t
L
t
v
P
s
e
c
i
v
r
e
S
t
r
o
p
x
E
r
a
h
o
M
.
d
t
L
)
g
n
o
K
g
n
o
H
(
a
i
s
A
S
T
.
d
t
L
.
e
t
P
a
i
s
A
l
e
e
t
S
t
a
N
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
a
k
i
l
a
v
u
u
R
j
d
e
t
i
i
m
L
s
y
o
l
l
A
S
T
5
8
9
1
,
0
3
r
e
b
o
t
c
O
d
t
L
s
e
c
i
v
r
e
S
g
n
i
r
e
e
n
g
n
E
f
r
o
K
a
t
a
T
i
3
1
0
2
,
2
1
l
i
r
p
A
2
0
0
2
,
2
1
e
n
u
J
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
g
d
i
r
B
l
l
o
T
r
u
p
a
y
t
i
d
A
.
d
t
L
e
t
P
.
o
C
t
n
e
m
t
s
e
v
n
I
A
J
B
A
8
0
0
2
,
7
y
r
a
u
r
b
e
F
2
1
0
2
,
8
2
t
s
u
g
u
A
2
1
0
2
,
0
2
r
e
b
m
e
v
o
N
2
1
0
2
,
0
2
r
e
b
m
e
v
o
N
9
0
0
2
,
0
2
h
c
r
a
M
8
0
0
2
,
3
2
y
a
M
6
0
0
2
,
5
y
l
u
J
8
0
0
2
,
4
y
l
u
J
d
e
t
i
i
m
L
n
o
r
I
e
g
n
o
p
S
a
t
a
T
d
e
t
i
i
m
L
y
g
r
e
n
E
L
I
S
T
$
.
d
t
L
)
y
t
P
(
)
N
Z
K
(
l
e
e
t
S
a
t
a
T
.
d
t
L
s
k
i
l
a
t
e
M
a
t
a
T
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
e
e
t
S
T
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
l
a
b
o
G
S
T
.
.
V
B
)
1
o
N
.
(
s
d
n
a
l
r
e
h
t
e
N
d
h
c
r
O
i
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
e
e
t
S
t
a
N
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
.
d
h
B
.
n
d
S
)
M
(
s
e
c
i
v
r
e
S
l
e
e
t
s
a
E
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
.
c
n
I
,
s
e
n
p
p
i
i
l
i
h
P
s
r
o
t
a
c
i
r
b
a
F
l
e
e
t
S
n
r
e
t
s
a
E
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
.
d
t
L
e
t
P
g
n
i
l
c
y
c
e
R
l
e
e
t
S
t
a
N
l
a
n
o
i
t
a
n
r
e
t
n
I
e
d
a
r
T
l
e
e
t
S
t
a
N
.
d
t
L
y
n
a
p
m
o
C
)
i
a
h
g
n
a
h
S
(
.
d
t
L
)
n
e
m
a
X
i
(
l
e
e
t
S
t
a
N
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
.
d
t
L
.
e
t
P
l
a
n
o
i
t
a
n
r
e
t
n
I
e
d
a
r
T
l
e
e
t
S
t
a
N
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
5
0
0
2
,
5
1
y
r
a
u
r
b
e
F
2
1
0
2
,
5
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
.
d
t
L
y
n
a
p
m
o
C
e
r
i
l
W
a
i
r
t
s
u
d
n
I
i
m
a
S
e
h
T
d
e
t
i
i
i
l
m
L
s
e
g
o
o
n
h
c
e
T
r
e
s
a
L
e
v
i
t
o
m
o
t
u
A
d
e
t
i
i
m
L
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
l
a
t
e
M
o
l
l
o
p
A
.
d
t
L
.
o
C
s
e
r
i
W
N
S
T
.
d
t
L
.
o
C
a
n
V
i
l
e
e
t
S
t
a
N
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
6
E
R
U
X
E
N
N
A
1
-
C
O
A
m
r
o
F
s
e
i
n
a
p
m
o
C
e
t
a
i
c
o
s
s
A
/
s
e
r
u
t
n
e
V
t
n
o
J
/
s
e
i
r
a
i
d
i
s
b
u
S
e
h
t
i
f
o
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
fi
e
h
t
f
o
s
e
r
u
t
a
e
f
i
t
n
e
i
l
a
s
g
n
n
i
a
t
n
o
c
t
n
e
m
e
t
a
t
S
3
1
0
2
,
t
c
A
s
e
i
n
a
p
m
o
C
e
h
t
f
o
)
3
(
9
2
1
n
o
i
t
c
e
S
o
t
t
n
a
u
s
r
u
P
]
4
1
0
2
,
s
e
l
u
R
)
s
t
n
u
o
c
c
A
(
s
e
i
n
a
p
m
o
C
e
h
t
f
o
5
e
l
u
R
h
t
i
w
d
a
e
R
[
s
e
i
n
a
p
m
o
C
y
r
a
i
d
i
s
b
u
S
f
o
n
o
i
t
a
m
r
o
f
n
I
l
a
i
c
n
a
n
i
F
f
o
y
r
a
m
m
u
S
-
’
‘
A
T
R
A
P
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
.
l
S
.
o
N
152
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
.
l
S
.
o
N
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
2
9
6
7
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
3
7
6
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
8
5
0
(
.
)
9
1
0
(
.
)
7
7
0
(
.
4
3
9
2
.
2
3
1
.
.
6
6
0
3
-
-
-
-
-
1
2
1
.
6
0
0
.
)
6
0
7
(
.
3
3
0
.
)
8
8
0
(
.
)
6
0
9
(
.
-
-
-
-
-
-
-
9
0
1
.
3
0
0
.
)
3
2
5
(
.
1
0
0
.
-
-
-
-
-
-
-
-
-
1
3
2
.
9
0
0
.
4
3
0
.
)
8
8
0
(
.
)
6
0
9
(
.
-
-
-
-
-
-
-
)
9
2
2
1
(
.
.
7
5
1
8
7
-
-
-
-
-
-
-
-
-
.
)
7
6
9
0
7
(
4
0
5
7
.
-
-
4
1
0
.
7
8
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
1
0
0
.
0
1
0
.
-
-
-
-
-
-
-
-
-
.
)
7
6
9
0
7
(
4
0
5
7
.
-
-
5
1
0
.
7
9
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
2
0
0
(
.
2
0
0
.
)
0
0
0
(
.
8
9
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
1
1
8
3
1
-
-
-
-
-
-
-
-
-
6
7
0
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
1
3
9
0
1
6
5
4
5
.
)
9
8
4
5
(
.
-
2
0
0
.
6
2
6
5
.
-
-
-
-
1
1
0
.
-
4
5
6
3
.
.
3
7
2
1
2
9
6
9
7
.
.
0
4
3
8
4
5
2
4
1
.
2
7
0
.
9
2
1
.
-
.
9
9
1
4
8
.
2
1
2
9
1
.
4
8
4
4
1
8
9
3
4
.
.
4
1
6
7
2
0
0
0
.
1
1
0
.
.
2
3
5
1
4
.
4
2
9
0
7
0
0
0
.
1
5
6
9
.
.
9
4
0
3
6
8
5
5
6
.
7
1
0
.
7
3
3
.
)
0
0
0
(
.
.
7
9
1
4
8
.
6
8
5
3
1
.
4
8
4
4
1
8
9
3
4
.
.
0
5
2
1
1
-
-
-
.
4
6
8
7
3
.
6
4
5
1
3
)
2
0
0
(
.
.
0
4
5
1
1
3
1
1
5
.
)
9
5
2
(
.
5
4
1
.
.
0
7
9
3
1
.
9
0
5
8
2
.
3
8
3
4
1
4
1
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
4
1
0
.
.
3
6
3
6
1
.
5
0
1
8
1
0
0
0
.
3
8
6
1
.
8
6
1
3
.
0
2
0
.
3
0
2
.
2
6
0
.
6
5
1
.
3
0
0
.
7
0
2
.
6
1
1
.
0
3
1
.
.
8
9
7
0
3
2
5
2
7
.
3
0
0
.
2
8
1
.
-
-
-
0
6
5
1
.
8
8
1
.
2
4
0
.
.
1
7
8
1
4
.
6
5
3
1
1
7
5
9
.
4
3
7
.
-
4
9
2
.
0
0
0
.
.
7
6
4
1
4
.
6
2
9
8
0
1
,
.
4
3
4
2
1
5
,
.
2
9
4
0
3
4
,
-
0
7
8
.
-
.
7
2
9
6
7
5
1
,
9
6
0
.
)
6
9
2
(
.
.
)
1
5
5
7
2
(
.
4
2
6
8
3
3
6
0
4
.
6
5
4
.
7
1
3
.
-
4
9
2
.
)
6
8
0
6
(
.
.
4
1
4
2
3
.
2
3
0
7
2
.
5
8
1
2
1
1
4
0
.
9
9
4
.
5
3
2
.
0
0
0
.
0
0
0
.
6
2
5
4
.
2
5
0
9
.
.
6
7
4
6
7
3
,
.
7
0
3
8
1
4
,
-
-
-
-
4
1
0
.
1
6
0
.
0
7
0
.
3
0
8
.
.
1
3
5
0
2
5
5
0
.
6
1
6
.
2
4
7
.
1
0
0
.
0
0
0
.
.
5
1
9
9
1
1
2
0
.
.
8
9
0
4
2
.
7
6
6
8
9
2
,
.
)
9
2
3
9
6
1
(
,
.
8
9
8
3
4
4
,
-
3
5
8
.
3
2
5
.
6
9
2
.
6
2
2
.
.
1
6
3
0
4
4
,
.
2
8
6
1
1
3
,
.
5
2
8
7
2
1
,
0
0
0
.
-
0
7
7
1
.
0
0
9
.
0
0
0
.
0
0
0
.
.
6
2
7
5
5
9
,
.
)
9
4
0
5
0
2
2
(
,
.
8
4
8
3
8
5
1
,
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
3
9
1
5
.
5
1
9
6
.
5
1
9
6
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
0
3
6
1
.
2
5
0
9
.
6
6
7
7
.
R
U
E
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
R
U
E
P
B
G
R
U
E
P
B
G
R
U
E
D
A
C
D
S
U
D
S
U
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
N
O
R
P
B
G
R
U
E
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
p
u
o
r
G
n
o
s
m
a
S
e
r
o
B
d
e
t
i
i
m
L
s
l
i
i
a
R
e
d
u
G
h
s
i
t
i
r
B
d
e
t
i
m
L
i
l
e
e
t
S
e
r
o
B
d
e
t
i
i
m
L
d
o
o
w
r
a
H
&
l
l
e
B
d
e
t
i
i
m
L
a
g
e
m
t
s
a
B
l
d
e
t
i
i
m
L
n
o
i
t
a
r
o
p
r
o
C
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
)
s
e
e
n
m
o
N
i
(
s
r
o
t
c
e
r
i
D
l
e
e
t
S
h
s
i
t
i
r
B
.
.
V
B
n
e
t
k
u
d
o
r
P
e
e
i
r
t
s
u
d
n
l
I
j
i
p
p
a
h
c
s
t
a
a
m
r
e
e
h
e
B
.
V
B
.
l
a
n
o
i
t
a
n
r
e
t
n
I
d
n
a
l
r
e
d
e
N
l
e
e
t
S
h
s
i
t
i
r
B
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
i
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
)
s
t
r
o
p
x
E
(
d
e
t
i
i
m
L
s
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
i
l
m
L
g
n
d
o
h
k
c
o
t
S
s
e
b
u
T
h
s
i
t
i
r
B
d
e
t
i
i
m
L
s
n
o
S
&
r
e
k
l
a
W
C
i
e
n
n
e
B
V
C
H
b
m
G
c
i
n
t
a
C
d
e
t
i
i
m
L
c
i
n
t
a
C
S
A
S
s
t
n
e
m
e
s
s
i
t
s
e
v
n
I
S
B
C
.
c
n
I
r
e
w
o
P
t
n
e
g
o
C
V
C
e
d
A
S
o
c
i
x
e
M
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
r
e
w
o
P
t
n
e
g
o
C
.
c
n
I
r
e
w
o
P
t
n
e
g
o
C
d
e
t
i
i
m
L
s
l
e
e
t
S
r
o
o
C
l
I
C
S
s
e
v
R
s
e
L
i
l
i
e
b
r
o
C
r
e
t
a
W
t
c
i
r
t
s
i
D
&
)
s
t
n
a
h
t
r
o
N
(
y
b
r
o
C
d
e
t
i
i
m
L
y
n
a
p
m
o
C
d
e
t
i
i
m
L
s
e
b
u
T
n
w
a
r
d
d
o
C
s
u
r
o
C
l
s
t
n
e
m
t
s
e
v
n
I
V
B
N
C
s
u
r
o
C
d
e
t
i
i
m
L
)
B
&
C
(
r
o
d
r
o
C
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
)
K
U
(
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
i
l
m
L
s
g
n
d
o
H
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
e
m
e
h
c
S
n
o
i
s
n
e
P
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
m
L
p
u
o
r
G
s
u
r
o
C
d
e
t
i
i
m
L
e
e
t
s
u
r
T
s
a
e
s
r
e
v
O
(
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
d
e
t
i
i
i
m
L
s
g
n
d
o
H
s
u
r
o
C
l
s
a
e
s
r
e
v
O
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
m
L
s
g
n
d
o
H
l
i
d
e
t
i
m
L
i
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
d
e
t
i
i
m
L
)
s
g
n
d
o
H
l
i
.
i
L
R
S
a
n
a
m
o
R
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
s
u
r
o
C
d
e
t
i
i
m
L
d
n
a
e
r
I
l
s
u
r
o
C
4
3
5
3
6
3
7
3
8
3
9
3
0
4
1
4
2
4
3
4
4
4
5
4
6
4
7
4
8
4
9
4
0
5
1
5
2
5
3
5
4
5
5
5
6
5
7
5
8
5
9
5
0
6
1
6
2
6
3
6
4
6
5
6
6
6
7
6
8
6
9
6
0
7
1
7
2
7
153
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
5
2
6
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
7
7
7
(
.
)
8
0
8
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
)
4
7
2
(
.
)
1
9
0
(
.
)
5
6
3
(
.
-
-
)
3
3
0
(
.
-
-
-
-
2
5
6
3
.
3
2
6
3
.
)
1
0
0
(
.
-
6
0
0
.
-
-
-
-
-
-
-
-
-
-
-
4
2
1
.
)
0
0
0
(
.
-
2
0
0
.
-
-
-
-
-
)
3
3
0
(
.
-
-
-
-
2
5
6
3
.
7
4
7
3
.
)
2
0
0
(
.
-
8
0
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
3
5
1
6
4
9
2
5
1
.
4
2
4
.
3
5
9
1
.
.
3
9
6
4
7
-
-
-
-
-
-
)
6
9
4
(
.
5
9
0
1
.
6
7
0
.
9
6
1
.
7
0
0
.
8
2
0
1
.
)
7
0
5
(
.
-
-
-
-
3
7
2
2
.
)
1
7
6
(
.
)
5
1
7
1
(
.
4
0
1
.
-
-
-
)
2
5
0
(
.
-
-
-
-
-
-
-
)
1
5
1
(
.
-
-
2
0
0
.
2
7
4
.
-
-
-
-
2
0
4
.
-
-
-
-
-
-
-
0
0
0
.
-
-
-
-
-
-
-
-
)
6
9
4
(
.
.
1
1
5
3
4
-
-
4
4
9
.
6
7
0
.
9
6
1
.
0
1
0
.
0
0
5
1
.
)
7
0
5
(
.
-
-
-
-
5
7
6
2
.
)
1
7
6
(
.
)
5
1
7
1
(
.
4
0
1
.
-
-
-
)
2
5
0
(
.
-
-
-
-
.
4
3
5
2
7
2
8
0
2
.
.
6
8
5
5
5
.
1
7
9
2
1
1
,
-
-
-
-
.
2
9
8
5
4
.
4
9
8
3
3
.
3
8
4
3
4
.
7
8
0
2
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
0
0
.
4
8
3
1
.
6
2
3
2
.
.
8
0
7
4
8
1
,
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
2
6
1
.
.
3
3
2
7
6
.
5
3
2
0
0
2
,
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
.
9
4
8
5
6
)
0
7
0
3
(
.
.
6
2
5
5
1
0
0
0
.
5
0
9
.
0
0
0
.
1
0
0
.
0
0
0
.
1
5
0
.
1
3
0
.
-
-
-
.
9
7
0
4
4
-
-
.
3
4
6
1
1
.
1
9
6
1
1
-
5
0
0
.
.
8
4
7
5
1
1
8
6
8
.
.
4
7
6
7
2
0
1
1
.
-
-
-
-
2
3
1
1
.
.
5
8
7
5
1
.
7
2
1
1
3
7
8
0
1
.
1
1
9
9
.
0
5
8
.
8
3
6
5
.
-
.
1
1
3
8
2
-
.
8
9
3
4
1
.
2
1
3
0
1
.
2
3
5
4
1
-
.
8
0
1
3
1
0
3
3
5
.
-
6
0
0
.
9
4
5
1
.
1
1
0
.
1
0
0
.
.
8
9
8
1
3
.
8
4
4
4
1
0
0
0
.
5
6
0
.
0
0
0
.
2
0
0
.
0
0
0
.
.
4
9
8
8
3
.
7
0
4
9
1
9
0
8
6
.
.
3
6
9
7
1
5
0
1
2
.
0
0
0
.
5
8
7
7
.
.
8
8
6
5
1
.
7
8
6
7
2
-
-
9
3
3
.
8
2
7
4
.
.
9
1
6
2
2
7
3
0
2
.
1
0
0
.
.
3
3
1
5
4
.
7
4
2
0
1
.
2
8
2
6
5
6
2
0
.
.
0
1
4
0
1
.
6
4
0
7
3
6
5
2
1
.
9
6
0
5
.
0
0
0
.
.
2
0
4
0
2
.
3
3
5
6
1
-
.
0
9
7
7
1
1
5
9
6
.
0
0
0
.
5
8
5
2
.
9
4
1
.
0
2
6
1
.
.
)
3
8
4
3
1
(
2
0
3
1
.
-
.
8
4
4
4
1
)
2
6
0
(
.
4
3
0
.
-
-
1
0
0
.
.
8
9
7
6
2
3
5
6
7
.
0
3
0
2
.
.
7
3
4
3
1
)
4
7
1
9
(
.
-
.
)
6
6
6
3
1
(
0
0
0
7
.
)
9
2
9
7
(
.
)
3
0
6
(
.
-
8
2
7
4
.
)
2
2
2
1
(
.
0
3
8
6
.
-
-
.
1
3
0
0
1
7
5
1
9
.
9
9
2
4
.
)
9
5
8
(
.
3
1
7
4
.
2
5
8
4
.
6
5
2
1
.
)
9
2
3
9
(
.
-
6
0
3
7
.
9
9
9
1
.
)
2
0
0
(
.
5
5
5
2
.
4
8
5
1
.
)
0
0
0
(
.
9
3
7
.
)
9
6
4
1
(
.
)
0
3
4
(
.
0
0
0
.
0
0
0
.
2
1
0
.
-
0
0
0
.
1
0
0
.
0
0
0
.
3
5
4
.
2
6
0
.
9
7
7
4
.
6
2
5
4
.
.
4
7
2
1
1
0
0
0
.
3
0
7
5
.
6
0
0
.
2
4
9
7
.
3
9
4
.
9
3
3
.
0
0
0
.
1
9
0
.
4
0
0
.
7
3
0
2
.
1
0
0
.
5
7
9
3
.
2
0
0
.
.
2
7
0
2
4
5
3
0
.
9
5
0
.
3
8
8
3
.
0
0
0
.
0
0
0
.
0
0
0
.
5
8
7
2
.
2
0
0
.
2
0
0
.
7
2
1
2
.
7
3
0
.
0
0
0
.
0
4
8
1
.
9
6
0
.
9
3
0
2
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
4
0
1
.
5
0
8
1
.
2
5
0
9
.
3
5
2
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
5
4
7
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
5
1
9
6
.
5
1
9
6
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
6
9
6
.
6
6
7
7
.
2
5
0
9
.
3
0
8
.
3
0
8
.
2
5
0
9
.
2
5
0
9
.
5
1
9
6
.
2
5
0
9
.
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
B
U
R
Z
L
P
P
B
G
H
A
U
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
P
B
G
P
B
G
K
E
S
P
B
G
P
B
G
R
U
E
D
S
U
D
S
U
R
U
E
R
U
E
R
U
E
R
U
E
P
B
G
P
B
G
F
H
C
R
U
E
P
B
G
K
O
N
K
O
N
P
B
G
P
B
G
D
S
U
P
B
G
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
9
0
0
2
,
6
l
i
r
p
A
6
0
0
2
,
2
1
r
e
b
o
t
c
O
9
0
0
2
,
1
3
h
c
r
a
M
d
e
t
i
i
i
m
L
s
e
p
P
r
e
t
e
m
a
D
e
g
r
a
L
s
u
r
o
C
i
d
e
t
i
i
m
L
)
a
d
n
I
(
i
s
e
c
i
v
r
e
S
n
o
s
i
a
L
s
u
r
o
C
i
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
s
u
r
o
C
.
.
i
i
V
B
m
u
n
m
u
A
y
r
a
m
l
i
r
P
s
u
r
o
C
d
e
t
i
i
m
L
e
r
t
n
e
C
e
c
i
v
r
e
S
s
u
r
o
C
C
L
L
P
T
S
e
c
i
v
r
e
S
l
e
e
t
S
s
u
r
o
C
y
t
r
e
p
o
r
P
s
u
r
o
C
.
.
O
O
Z
a
k
l
o
p
S
d
n
a
o
P
s
e
b
u
T
s
u
r
o
C
l
y
n
a
p
m
o
C
y
t
i
l
i
i
b
a
L
d
e
t
i
i
i
m
L
e
n
a
r
k
U
s
u
r
o
C
d
e
t
i
i
m
L
e
e
t
s
u
r
T
e
r
a
c
h
t
l
a
e
H
K
U
s
u
r
o
C
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
)
5
8
(
N
P
C
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
c
n
a
r
u
s
n
I
l
e
b
i
c
u
r
C
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
l
a
t
e
M
s
i
m
m
S
e
b
m
a
G
l
H
b
m
G
l
fi
o
r
P
r
e
h
c
s
i
F
d
e
t
i
i
m
L
e
r
g
a
E
n
o
y
L
t
n
a
r
G
d
e
t
i
i
m
L
n
o
s
m
a
S
E
H
d
e
t
i
i
m
L
s
g
n
d
o
H
l
i
l
e
e
t
s
r
i
F
d
e
t
i
i
m
L
p
u
o
r
G
l
e
e
t
s
r
i
F
d
e
t
i
i
i
l
m
L
s
g
n
d
o
H
s
d
e
fi
d
a
H
l
d
e
t
i
i
m
L
s
g
n
i
s
s
e
r
p
o
r
u
E
.
c
l
P
p
u
o
r
G
M
R
S
D
.
V
B
.
l
i
m
s
E
H
b
m
G
s
l
e
g
e
D
.
.
V
B
a
k
m
e
D
5
1
0
2
,
1
3
h
c
r
a
M
B
A
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
d
a
t
s
l
m
a
H
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
e
i
t
r
e
p
o
r
P
s
l
l
i
m
w
o
r
r
a
H
d
e
t
i
i
m
L
a
g
e
m
r
e
m
m
a
H
.
V
B
.
.
c
n
I
A
S
U
r
e
l
l
u
M
&
e
l
l
i
H
H
b
m
G
r
e
l
l
u
M
&
e
l
l
i
H
.
c
n
I
A
S
U
s
n
e
v
o
g
o
o
H
’
p
a
a
s
e
e
r
B
‘
t
i
z
e
b
n
e
z
i
u
H
S
A
S
n
o
i
t
u
b
i
r
t
s
i
D
l
a
t
e
M
r
e
t
n
I
d
e
t
i
i
m
L
s
e
b
u
T
r
e
t
s
i
L
.
.
L
S
l
e
e
t
S
e
d
y
a
L
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
y
n
a
p
m
o
C
l
e
e
t
S
s
k
r
o
W
n
o
d
n
o
L
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
e
i
l
p
p
u
S
l
e
e
t
S
d
n
a
d
M
l
i
G
A
e
m
e
t
s
y
s
u
a
B
a
n
a
t
n
o
M
5
1
0
2
,
1
3
h
c
r
a
M
Y
O
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
i
l
a
t
n
a
a
N
5
1
0
2
,
1
3
h
c
r
a
M
5
1
0
2
,
1
3
h
c
r
a
M
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
l
e
e
t
S
l
a
c
i
r
t
c
e
E
b
r
O
l
S
A
r
e
t
a
p
n
n
y
T
l
l
a
t
S
k
s
r
o
N
B
A
r
e
t
a
p
n
n
y
T
l
l
a
t
S
k
s
r
o
N
d
e
t
i
i
m
L
s
r
e
i
r
r
a
C
e
r
O
.
c
n
I
o
c
m
e
r
O
d
e
t
i
i
m
L
)
l
a
n
o
i
t
a
n
r
e
t
n
I
(
p
i
r
t
S
d
e
t
a
P
l
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
S
e
d
w
n
o
i
t
a
N
i
3
7
4
7
5
7
6
7
7
7
8
7
9
7
0
8
1
8
2
8
3
8
4
8
5
8
6
8
7
8
8
8
9
8
0
9
1
9
2
9
3
9
4
9
5
9
6
9
7
9
8
9
9
9
0
0
1
1
0
1
2
0
1
3
0
1
4
0
1
5
0
1
6
0
1
7
0
1
8
0
1
9
0
1
0
1
1
1
1
1
2
1
1
3
1
1
4
1
1
5
1
1
6
1
1
7
1
1
154
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
.
l
S
.
o
N
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
-
-
-
)
2
8
0
(
.
)
0
5
9
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
4
8
1
9
(
.
.
)
1
3
1
1
1
(
-
-
-
-
.
0
0
0
0
1
)
2
4
2
(
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
)
8
8
0
(
.
-
-
)
3
7
0
(
.
-
-
-
-
2
3
2
1
.
)
4
2
2
(
.
9
7
9
1
.
)
5
4
7
(
.
9
5
1
1
.
-
-
-
-
-
-
-
8
5
3
.
4
6
1
.
1
6
1
.
)
8
5
0
(
.
0
8
4
.
-
-
)
3
7
0
(
.
-
-
-
-
0
9
5
1
.
)
1
6
0
(
.
9
3
1
2
.
)
3
0
8
(
.
-
-
-
-
-
-
-
.
2
0
8
7
7
.
9
1
0
7
2
.
8
5
4
7
1
1
,
.
9
7
7
3
9
1
,
8
3
6
1
.
.
2
2
4
2
5
)
8
6
3
(
.
)
3
2
1
(
.
)
0
9
4
(
.
-
-
-
-
)
0
9
2
5
(
.
-
6
6
6
.
9
7
2
.
5
6
0
.
3
1
8
.
3
4
0
.
)
3
1
2
5
(
.
)
1
8
9
2
(
.
8
3
4
4
.
4
2
3
2
.
5
9
8
1
.
9
0
0
.
8
6
3
.
6
8
1
.
0
0
0
.
5
1
2
.
.
8
6
4
6
7
1
,
-
-
-
-
-
-
8
3
3
.
)
6
6
0
(
.
)
5
2
0
(
.
-
1
7
2
.
4
1
0
.
0
5
1
3
.
)
7
1
0
1
(
.
.
6
2
2
8
5
-
)
6
0
0
(
.
-
9
8
0
.
3
5
0
.
-
6
3
0
.
6
1
1
.
-
-
)
4
0
0
(
.
1
6
0
5
.
-
-
-
-
-
4
0
0
1
.
3
1
2
.
9
3
0
.
4
8
0
1
.
7
5
0
.
)
3
1
2
5
(
.
0
7
1
.
0
2
4
3
.
.
4
9
6
4
3
2
,
-
-
-
-
-
-
-
-
-
-
.
9
7
6
0
1
-
-
.
1
1
7
2
8
4
3
,
)
0
9
2
5
(
.
.
4
2
6
1
2
4
2
3
2
.
9
8
8
1
.
9
0
0
.
7
5
4
.
0
4
2
.
0
0
0
.
1
5
2
.
2
2
8
1
.
1
3
0
.
-
)
8
8
2
(
.
1
0
9
1
.
-
.
5
6
0
7
2
-
-
-
-
-
-
-
-
-
.
1
9
9
0
1
-
-
-
-
-
-
-
-
9
0
0
.
0
7
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
2
3
2
3
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
6
1
4
5
1
.
8
7
5
6
4
2
0
1
.
.
0
0
0
0
1
-
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
)
7
8
0
1
(
.
5
3
0
.
-
)
9
4
3
5
(
.
1
0
9
1
.
)
7
8
2
1
(
.
6
0
7
1
.
-
7
0
0
2
.
9
9
4
2
.
.
1
8
4
3
4
-
-
-
.
6
2
1
1
1
3
4
7
2
.
.
9
7
1
8
2
.
0
8
2
4
6
4
2
0
9
.
8
7
5
.
0
1
9
2
.
8
0
1
.
4
9
3
.
.
6
0
1
7
4
.
3
0
6
6
3
.
5
4
9
5
1
.
9
0
8
6
1
.
4
4
8
5
4
.
2
8
4
9
6
1
7
2
6
.
)
7
1
9
2
(
.
0
2
7
.
.
)
8
8
0
6
4
(
.
2
5
3
9
3
-
.
2
7
3
5
2
.
8
7
1
3
1
)
6
9
2
1
(
.
7
6
3
3
.
0
6
1
5
.
6
4
7
.
6
9
9
.
0
9
1
2
.
6
1
7
2
.
5
5
7
7
.
4
9
3
.
5
0
1
.
3
2
0
.
.
5
0
1
8
1
.
8
9
2
4
1
2
4
0
.
8
6
9
7
.
.
6
2
2
0
3
.
0
5
5
2
1
8
0
7
9
.
-
-
.
0
3
6
5
7
4
2
0
.
8
3
9
6
.
9
7
8
7
.
4
0
0
.
3
0
0
4
.
.
0
7
0
5
3
6
4
1
.
7
7
3
7
.
.
6
0
4
4
2
.
7
3
8
3
3
.
0
0
5
2
7
.
8
7
3
3
8
.
6
9
1
4
6
9
,
.
3
4
1
4
2
1
,
-
1
7
1
4
.
6
5
9
6
.
.
7
2
5
8
1
.
3
8
0
3
1
6
3
1
1
.
.
6
2
0
9
1
.
8
8
4
5
5
7
2
3
2
.
6
3
4
5
.
.
7
2
2
3
5
.
3
2
9
6
2
.
0
5
3
4
4
1
,
.
3
8
5
9
5
1
,
.
6
9
2
9
1
1
,
.
9
4
5
2
9
9
2
,
.
5
2
4
6
8
1
,
.
1
7
7
3
3
7
4
1
4
.
-
)
4
7
0
(
.
5
0
0
.
6
3
7
.
1
3
1
1
.
6
3
0
3
.
4
3
3
7
.
9
2
1
2
.
)
8
0
5
2
(
.
.
0
1
8
8
2
.
)
1
2
0
0
1
(
.
0
0
2
3
8
.
)
0
0
8
6
6
(
.
1
8
9
0
4
9
1
,
0
0
0
.
8
1
0
.
4
7
0
.
.
9
4
9
4
3
.
1
2
5
8
1
9
6
4
4
.
0
0
0
.
.
7
8
9
1
1
.
4
8
0
3
1
2
5
0
.
8
6
5
.
0
1
0
.
7
0
1
3
.
3
8
8
3
.
.
2
7
3
7
8
.
9
1
7
2
0
1
,
.
)
5
0
8
8
8
3
(
,
.
7
8
0
1
5
4
,
-
1
6
6
9
.
2
5
0
.
4
9
2
.
8
0
1
.
9
8
3
.
8
8
3
6
.
1
3
0
.
-
5
6
7
1
.
1
5
8
2
.
.
3
3
6
0
3
1
,
.
7
1
8
4
1
1
,
4
9
1
.
5
5
6
.
5
7
5
.
6
0
2
.
5
7
2
4
.
6
5
5
6
.
2
5
1
.
-
4
4
7
2
.
.
0
8
0
5
1
8
8
1
.
7
6
5
.
6
8
1
.
0
0
0
.
1
3
7
3
.
)
7
0
5
(
.
)
9
2
0
(
.
-
)
5
8
8
4
(
.
0
4
7
3
.
5
5
1
6
.
5
0
0
.
6
3
0
.
5
9
0
.
8
9
0
.
5
5
1
.
6
7
6
.
9
4
1
.
-
4
6
8
5
.
9
8
4
8
.
2
5
0
9
.
2
5
0
9
.
5
1
9
6
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
5
4
7
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
7
4
0
1
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
5
1
9
6
.
5
1
9
6
.
3
9
1
5
.
1
0
3
.
7
4
0
1
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
5
1
9
6
.
6
6
7
7
.
6
8
8
1
.
9
1
0
.
P
B
G
P
B
G
D
S
U
P
B
G
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
R
U
E
R
U
E
R
U
E
R
U
E
P
B
G
P
B
G
R
U
E
P
B
G
K
E
S
P
B
G
R
U
E
R
U
E
K
K
D
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
D
S
U
D
S
U
D
A
C
K
Z
C
K
K
D
R
U
E
R
U
E
R
U
E
D
S
U
R
U
E
D
E
A
N
G
N
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
m
L
i
l
a
n
o
i
t
a
n
r
e
t
n
I
t
a
o
c
e
r
P
d
e
t
i
i
m
L
t
a
o
c
e
r
P
7
0
0
2
,
2
l
i
r
p
A
.
n
n
o
C
f
O
c
n
I
o
C
l
e
e
t
S
n
w
o
r
B
-
y
t
r
e
ff
a
R
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
l
m
L
s
k
r
o
w
e
e
t
S
k
a
O
d
n
u
o
R
d
e
t
i
i
m
L
t
s
a
b
n
u
R
l
d
e
t
i
i
m
L
a
g
e
m
n
u
R
.
V
B
.
l
e
fi
o
r
P
B
A
S
H
b
m
G
n
e
h
c
r
i
k
n
e
s
l
e
G
r
e
t
n
e
C
e
c
i
v
r
e
S
d
e
t
i
i
m
L
s
e
b
u
T
s
s
e
m
a
e
S
l
H
b
m
G
l
fi
o
r
P
B
A
S
.
.
V
B
t
h
c
i
r
t
s
a
a
M
e
r
t
n
e
C
e
c
i
v
r
e
S
.
V
B
.
l
i
e
d
n
a
H
n
e
g
n
k
r
e
w
r
e
v
a
a
t
S
l
e
D
e
n
n
e
e
p
o
r
u
E
e
t
e
i
c
o
S
a
S
)
l
a
g
e
S
(
n
o
i
t
a
s
i
n
a
v
a
G
l
d
e
t
i
i
i
m
L
s
g
n
d
o
H
k
c
o
t
S
l
l
e
e
t
S
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
d
n
a
e
r
I
l
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
)
s
a
e
s
r
e
v
O
(
f
l
O
s
d
y
o
L
&
s
t
r
a
w
e
t
S
l
s
d
y
o
L
d
n
A
s
t
r
a
w
e
t
S
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
S
B
A
s
k
u
r
B
r
a
m
m
a
h
a
r
u
S
7
0
0
2
,
2
l
i
r
p
A
^
^
d
e
t
i
i
m
L
n
o
i
t
a
i
c
o
s
s
A
g
n
i
s
u
o
H
n
e
d
n
w
S
i
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
.
.
i
V
N
s
l
e
e
t
S
g
n
g
a
k
c
a
P
m
u
g
e
B
l
i
.
.
V
N
s
e
c
i
v
r
e
S
m
u
g
e
B
l
i
l
e
e
t
S
a
t
a
T
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
S
/
A
r
e
m
e
t
s
y
s
g
g
y
B
k
r
a
m
n
e
D
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
V
B
n
o
i
t
u
b
i
r
t
s
i
D
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
S
A
S
s
e
m
e
t
s
y
S
t
e
t
n
e
m
i
t
a
B
e
c
n
a
r
F
l
e
e
t
S
a
t
a
T
i
V
B
g
n
d
a
r
T
s
l
a
t
e
M
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
i
l
S
A
S
s
g
n
d
o
H
e
c
n
a
r
F
l
e
e
t
S
a
t
a
T
H
b
m
G
y
n
a
m
r
e
G
l
e
e
t
S
a
t
a
T
V
B
n
e
d
u
m
i
J
I
l
e
e
t
S
a
t
a
T
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
c
n
I
i
s
g
n
d
o
H
l
)
s
a
c
i
r
e
m
A
(
.
l
S
.
o
N
8
1
1
9
1
1
0
2
1
1
2
1
2
2
1
3
2
1
4
2
1
5
2
1
6
2
1
7
2
1
8
2
1
9
2
1
0
3
1
1
3
1
2
3
1
3
3
1
4
3
1
5
3
1
6
3
1
7
3
1
8
3
1
9
3
1
0
4
1
1
4
1
2
4
1
3
4
1
4
4
1
5
4
1
6
4
1
7
0
0
2
,
2
l
i
r
p
A
c
n
I
)
s
a
c
i
r
e
m
A
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
4
1
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
h
c
e
z
C
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
c
n
I
i
s
g
n
d
o
H
l
)
a
d
a
n
a
C
(
.
.
O
R
S
)
c
i
l
b
u
p
e
R
7
0
0
2
,
2
l
i
r
p
A
S
/
A
)
k
r
a
m
n
e
D
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
Y
O
)
d
n
a
n
F
(
l
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
S
A
S
)
e
c
n
a
r
F
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
H
b
m
G
)
y
n
a
m
r
e
G
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
)
a
c
i
r
e
m
A
h
t
u
o
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
A
D
T
L
s
e
õ
ç
a
t
n
e
s
e
r
p
e
R
L
R
S
)
a
i
l
a
t
I
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
E
Z
F
)
t
s
a
E
e
d
d
M
l
i
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
8
0
0
2
,
0
1
e
n
u
J
d
e
t
i
i
m
L
)
a
i
r
e
g
N
i
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
8
4
1
9
4
1
0
5
1
1
5
1
2
5
1
3
5
1
4
5
1
5
5
1
6
5
1
7
5
1
155
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
3
8
0
1
(
.
6
3
0
.
4
0
0
.
0
2
2
.
3
9
2
.
8
0
9
.
-
6
0
0
.
-
6
6
0
.
1
5
2
.
2
4
0
.
4
0
0
.
7
8
2
.
3
9
2
.
9
5
1
1
.
-
-
-
-
7
0
1
1
.
3
6
0
.
0
2
0
.
3
5
3
.
0
9
8
.
2
6
9
.
5
2
5
.
0
0
5
.
2
5
2
1
.
9
6
4
5
.
0
1
0
2
.
1
1
4
.
2
9
8
.
0
4
9
3
.
1
3
9
.
)
8
2
1
1
(
.
0
9
5
1
.
)
7
6
3
1
(
.
-
)
7
6
3
1
(
.
.
4
3
4
2
3
.
0
2
7
7
1
.
7
6
8
8
1
)
4
2
8
6
(
.
-
-
-
-
-
-
.
2
0
9
1
9
2
,
9
7
0
1
.
.
1
1
9
8
7
.
8
5
8
3
9
2
2
1
9
.
.
9
8
7
5
9
3
,
.
9
4
2
8
1
6
1
,
.
0
3
4
1
2
9
,
0
7
0
.
7
0
0
.
9
3
6
.
7
1
1
.
1
7
9
7
.
5
2
8
5
.
.
0
3
0
1
0
3
,
.
4
6
0
7
-
.
8
6
5
1
2
)
0
0
0
(
.
1
5
4
.
)
2
0
0
(
.
2
2
9
.
)
6
4
6
7
(
.
3
7
3
.
)
8
3
7
2
(
.
)
7
4
5
(
.
.
)
0
3
7
7
1
(
.
)
5
6
3
3
3
1
(
,
.
)
5
3
3
3
2
3
(
,
-
-
-
7
1
0
.
-
)
0
5
0
(
.
)
7
7
1
(
.
)
6
2
0
(
.
-
.
)
4
0
5
1
4
(
-
-
)
7
7
2
(
.
)
8
8
3
1
(
.
-
-
-
-
-
-
-
0
0
0
.
)
2
2
9
9
(
.
)
0
0
0
(
.
5
8
1
.
)
1
0
0
(
.
)
8
5
1
1
(
.
)
5
2
8
4
(
.
7
0
1
.
.
)
8
3
7
0
3
(
-
-
-
3
9
1
9
.
)
8
2
0
(
.
-
-
-
-
-
1
0
0
.
9
2
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
)
4
6
0
7
(
.
.
6
4
6
1
1
)
0
0
0
(
.
6
3
6
.
)
3
0
0
(
.
)
6
3
2
(
.
.
)
1
7
4
2
1
(
0
8
4
.
)
8
3
7
2
(
.
)
7
4
5
(
.
.
)
0
3
7
7
1
(
.
)
3
0
1
4
6
1
(
,
.
)
3
4
1
4
1
3
(
,
)
1
1
0
(
.
-
-
-
-
)
0
5
0
(
.
)
7
7
1
(
.
3
0
0
.
-
.
)
4
0
5
1
4
(
-
-
)
7
7
2
(
.
)
8
8
3
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
.
5
5
1
8
6
1
,
-
.
7
4
9
8
1
.
2
6
3
2
1
-
2
5
6
.
.
3
5
5
8
7
1
2
,
-
-
-
-
9
1
7
2
.
.
8
8
9
6
6
-
-
-
-
-
-
1
4
9
2
.
.
1
7
0
4
3
1
,
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
1
5
6
.
-
-
-
-
-
9
7
0
.
-
-
-
-
-
0
5
6
4
.
-
4
9
0
.
-
-
-
-
-
-
-
0
2
6
.
1
3
2
.
)
9
7
3
7
(
.
0
9
9
6
.
0
0
0
.
.
1
0
2
7
3
.
1
1
6
3
1
.
3
2
9
0
9
2
1
0
.
.
9
9
0
3
6
.
6
2
9
3
6
.
5
6
3
1
7
)
7
3
3
(
.
.
7
6
5
5
2
.
1
0
3
0
5
.
)
6
3
8
6
5
(
0
3
3
.
9
4
3
.
4
1
0
.
.
9
7
2
7
3
9
3
1
3
.
8
6
3
7
.
5
3
7
.
4
9
4
8
.
3
3
5
7
.
8
7
1
.
7
5
2
5
.
0
9
0
.
)
8
2
1
2
(
.
8
9
0
.
4
7
0
.
1
7
5
1
.
.
7
9
7
6
4
3
4
,
.
0
7
9
2
1
5
4
,
.
)
6
7
2
2
8
7
3
(
,
.
9
4
4
8
4
9
3
,
.
8
1
3
9
7
9
4
,
.
4
3
1
1
9
9
2
,
.
)
4
6
2
4
5
1
5
(
,
.
9
7
0
6
6
1
3
,
.
3
8
0
1
1
1
1
4
8
.
.
2
9
1
4
1
9
3
,
.
)
1
6
8
1
6
4
2
(
,
.
7
9
1
6
4
3
4
,
5
7
5
2
.
1
8
4
.
-
-
5
4
7
.
.
8
0
5
6
6
-
6
2
0
.
7
3
0
.
.
3
0
2
0
8
2
5
,
2
1
5
.
2
7
8
.
.
9
6
3
4
1
.
2
5
5
5
1
.
2
0
3
0
4
-
-
6
2
1
.
.
3
6
1
4
2
0
3
,
0
3
0
.
7
1
8
.
.
3
5
6
1
1
.
7
0
8
4
1
)
4
1
0
(
.
.
)
7
3
7
1
3
(
0
0
1
.
-
.
)
8
1
4
1
7
1
3
(
,
.
1
8
3
1
7
1
3
,
.
)
7
5
7
7
2
4
5
(
,
.
7
1
7
1
7
1
3
,
7
9
0
.
1
0
0
.
-
4
5
0
.
6
1
7
2
.
2
3
5
5
.
4
1
0
.
.
6
5
8
9
2
0
2
,
-
8
7
2
3
.
6
2
0
.
.
6
6
9
1
3
-
7
5
2
1
.
-
-
-
-
-
8
5
3
1
.
.
5
3
3
7
1
7
6
0
.
.
3
4
7
4
7
-
4
0
0
5
.
0
1
0
.
1
5
0
7
.
8
5
3
1
.
3
5
0
9
.
2
3
0
.
.
5
2
7
5
3
.
9
0
2
1
3
.
9
0
2
1
3
0
0
0
.
6
5
2
1
.
5
0
9
.
.
3
7
2
1
2
.
2
8
3
0
1
-
-
)
0
8
5
7
(
.
-
-
-
-
5
3
2
2
.
0
8
5
7
.
5
0
9
.
.
3
7
2
1
2
7
4
1
8
.
-
-
5
0
8
1
.
2
6
9
6
.
5
4
7
.
0
0
1
.
6
6
7
7
.
5
1
9
6
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
6
6
7
7
.
3
0
8
.
5
4
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
5
1
9
6
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
5
1
9
6
.
5
1
9
6
.
2
5
0
9
.
7
7
4
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
2
5
0
9
.
2
5
0
9
.
2
5
0
9
.
6
6
7
7
.
Z
L
P
F
H
C
K
E
S
R
N
I
R
U
E
D
S
U
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
K
O
N
K
E
S
P
B
G
P
B
G
P
B
G
D
S
U
P
B
G
P
B
G
P
B
G
D
S
U
D
S
U
P
B
G
R
A
Z
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
R
U
E
7
0
0
2
,
2
l
i
r
p
A
o
o
Z
p
s
)
d
n
a
o
P
(
l
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
G
A
)
z
i
e
w
h
c
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
B
A
)
n
e
d
e
w
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
)
a
d
n
I
(
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
A
S
a
c
i
r
e
b
I
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
l
a
t
e
M
l
u
b
n
a
t
s
I
l
e
e
t
S
a
t
a
T
S
A
t
e
r
a
c
i
T
e
v
i
y
a
n
a
S
S
A
S
e
g
u
e
b
u
a
M
l
e
e
t
S
a
t
a
T
V
B
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
&
g
n
i
t
l
u
s
n
o
C
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
s
e
c
i
v
r
e
S
l
a
c
i
n
h
c
e
T
V
B
e
m
a
r
F
-
r
a
t
S
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
l
V
B
y
g
o
o
n
h
c
e
T
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
s
e
c
i
v
r
e
S
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
s
e
b
u
T
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
.
.
i
l
V
B
s
g
n
d
o
H
s
d
n
a
l
r
e
h
t
e
N
l
e
e
t
S
a
t
a
T
S
/
A
r
e
m
e
t
s
y
s
g
g
y
B
y
a
w
r
o
N
l
e
e
t
S
a
t
a
T
B
A
m
e
t
s
y
s
g
g
y
B
n
e
d
e
w
S
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
g
n
i
t
l
u
s
n
o
C
K
U
l
e
e
t
S
a
t
a
T
l
e
b
u
T
s
e
a
W
h
t
u
o
S
d
n
A
t
r
o
p
w
e
N
e
h
T
d
e
t
i
i
m
L
y
n
a
p
m
o
C
.
c
n
I
A
S
U
l
e
e
t
S
a
t
a
T
d
e
t
i
i
i
m
L
s
g
n
d
o
H
K
U
l
d
e
t
i
i
m
L
K
U
l
e
e
t
S
a
t
a
T
l
e
e
t
S
a
t
a
T
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
y
n
a
p
m
o
C
g
n
i
s
u
o
H
n
o
t
n
a
t
S
e
h
T
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
l
l
i
M
g
n
i
l
l
o
R
h
g
u
o
r
o
b
e
p
m
e
T
e
h
T
l
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
y
n
a
p
m
o
C
g
n
i
s
s
e
c
o
r
P
s
a
m
o
h
T
.
p
r
o
C
p
i
r
t
S
l
e
e
t
S
s
a
m
o
h
T
7
0
0
2
,
2
l
i
r
p
A
d
e
t
i
i
m
L
s
n
o
i
t
a
c
i
r
b
a
F
l
a
i
r
t
s
u
d
n
I
o
t
n
o
r
o
T
5
1
0
2
,
1
3
t
s
u
g
u
A
l
e
c
ffi
O
s
e
a
S
a
c
i
r
f
A
h
t
u
o
S
S
T
d
e
t
i
i
m
L
y
r
a
t
e
i
r
p
o
r
P
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
,
2
l
i
r
p
A
9
1
0
2
,
3
2
y
r
a
u
n
a
J
6
0
0
2
,
2
1
r
e
b
o
t
c
O
d
e
t
i
i
m
L
)
2
o
N
.
(
i
l
s
g
n
d
o
H
K
U
p
i
l
u
T
d
e
t
i
i
m
L
)
3
o
N
.
(
i
l
s
g
n
d
o
H
K
U
p
i
l
u
T
d
e
t
i
i
m
L
r
a
B
t
h
g
i
r
B
.
.
S
E
U
.
d
e
t
i
i
m
L
s
r
e
g
a
n
a
M
d
n
u
F
E
S
K
U
d
e
t
i
i
m
L
e
s
i
r
p
r
e
t
n
E
l
e
e
t
S
K
U
S
A
S
l
o
t
i
n
U
d
n
A
g
n
i
r
u
t
c
a
f
u
n
a
M
r
e
k
l
a
W
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
d
e
t
i
i
l
m
L
d
n
a
e
r
I
k
c
o
t
s
l
e
e
t
s
r
e
k
l
a
W
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
s
r
e
k
l
a
W
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
l
e
e
t
S
d
o
o
w
t
s
e
W
d
e
t
i
i
m
L
)
p
i
r
t
S
w
o
r
r
a
N
d
e
t
i
i
m
L
g
n
d
a
r
T
i
(
d
a
e
h
e
t
i
h
W
l
e
e
t
S
h
s
i
t
i
r
B
H
b
m
G
e
c
i
v
r
e
s
l
h
a
t
S
e
m
u
B
l
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
.
l
S
.
o
N
8
5
1
9
5
1
0
6
1
1
6
1
2
6
1
3
6
1
4
6
1
5
6
1
6
6
1
7
6
1
8
6
1
9
6
1
0
7
1
1
7
1
2
7
1
3
7
1
4
7
1
5
7
1
6
7
1
7
7
1
8
7
1
9
7
1
0
8
1
1
8
1
2
8
1
3
8
1
4
8
1
5
8
1
6
8
1
7
8
1
8
8
1
9
8
1
0
9
1
1
9
1
2
9
1
3
9
1
4
9
1
5
9
1
6
9
1
7
9
1
156
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
-
-
-
-
-
-
-
-
-
-
-
.
0
0
0
0
1
0
0
0
7
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
8
6
7
7
.
-
-
-
-
-
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
9
7
6
.
6
7
9
9
.
9
9
9
9
.
9
9
9
9
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
1
9
4
5
.
.
0
0
0
0
1
6
9
4
7
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
)
9
5
3
(
.
)
8
9
0
(
.
-
)
2
3
0
(
.
)
6
3
1
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
7
0
.
3
9
0
2
.
-
-
0
8
5
1
.
7
8
0
.
)
1
0
0
(
.
8
0
4
.
8
2
0
.
3
0
0
.
9
0
0
.
4
0
0
.
-
)
0
0
0
(
.
.
4
4
3
2
2
)
7
0
0
(
.
)
6
1
0
(
.
)
1
6
8
4
(
.
5
0
7
2
.
.
9
6
3
2
1
)
1
6
0
(
.
.
)
2
4
0
6
1
1
(
,
-
-
-
-
-
-
3
8
1
.
3
0
0
.
-
-
2
0
0
.
4
2
7
1
.
-
-
-
-
-
4
0
0
.
-
6
6
4
4
.
-
-
.
0
8
5
1
7
8
0
.
)
1
0
0
(
.
1
9
5
.
8
2
0
.
6
0
0
.
9
0
0
.
6
0
0
.
-
)
0
0
0
(
.
.
4
4
3
2
2
)
7
0
0
(
.
)
2
1
0
(
.
)
1
6
8
4
(
.
.
5
0
7
2
.
5
3
8
6
1
)
1
6
0
(
.
.
)
8
1
3
4
1
1
(
,
-
-
-
-
8
2
7
.
.
3
5
5
8
1
7
0
4
2
.
-
-
-
-
-
-
-
-
-
-
-
8
1
1
1
.
.
8
8
0
3
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8
9
2
.
0
0
0
.
4
5
9
.
0
0
0
.
.
7
4
0
1
1
3
,
.
5
1
7
5
2
3
,
.
5
9
2
8
7
5
,
.
1
2
5
0
0
2
,
.
3
5
3
1
8
3
,
.
2
5
8
9
4
7
,
5
0
0
.
0
8
4
3
.
.
6
4
5
2
2
4
,
.
6
5
5
2
0
7
,
.
)
4
7
5
9
5
6
(
,
)
5
4
1
1
(
.
)
9
4
9
2
(
.
.
)
0
9
9
8
3
(
6
7
4
3
.
.
)
8
6
1
7
2
3
(
,
2
0
8
1
.
0
5
9
2
.
.
4
5
1
2
1
9
,
.
0
9
4
7
0
4
,
0
0
0
.
.
8
7
1
7
0
6
,
-
-
-
-
-
-
-
-
-
-
-
-
.
7
0
0
1
1
7
9
0
.
.
4
0
1
1
1
2
4
1
.
1
0
9
.
0
1
4
1
.
.
8
8
8
8
4
)
5
3
4
(
.
.
3
1
9
7
4
-
-
)
7
9
8
(
.
8
9
4
.
8
3
0
.
4
0
4
1
.
)
8
3
3
6
(
.
0
6
2
2
.
)
2
3
5
(
.
.
8
9
3
3
3
9
9
3
5
.
)
1
0
0
(
.
0
1
6
7
.
)
9
8
9
1
(
.
8
8
4
.
0
0
8
5
.
)
4
9
6
(
.
-
-
-
-
1
0
0
.
)
7
0
0
(
.
)
1
0
0
(
.
1
2
5
.
)
5
1
0
(
.
-
9
6
2
7
.
7
8
0
1
.
8
6
1
4
.
-
-
8
9
1
.
8
7
3
3
.
)
1
0
0
(
.
)
1
0
0
(
.
-
-
)
3
9
0
1
(
.
0
0
0
.
-
-
)
7
9
8
(
.
8
9
4
.
9
3
0
.
.
7
9
3
1
)
9
3
3
6
(
.
1
8
7
2
.
)
7
4
5
(
.
.
7
6
6
0
4
6
8
4
6
.
)
1
0
0
(
.
.
8
7
7
1
1
)
9
8
9
1
(
.
6
8
6
.
.
7
7
1
9
)
4
9
6
(
.
)
2
9
0
1
(
.
)
1
0
0
(
.
)
1
0
0
(
.
-
.
5
9
8
4
2
-
-
8
2
4
.
7
4
3
9
.
.
1
2
6
5
6
4
,
.
7
8
6
4
0
2
,
.
0
4
9
0
1
1
,
.
7
0
4
4
1
0
3
,
-
.
6
8
8
2
6
.
2
9
0
8
2
4
,
-
.
0
7
5
1
1
.
0
1
1
1
6
2
,
6
6
3
4
.
2
5
6
4
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
0
0
.
0
0
0
.
3
9
4
2
.
6
9
6
9
.
7
0
2
.
6
0
0
.
-
-
-
-
-
-
4
1
0
.
.
5
5
7
2
4
.
4
8
1
9
0
1
,
.
9
1
2
0
2
.
3
0
4
5
1
.
6
4
5
5
7
.
2
9
1
2
4
.
6
0
5
8
0
6
2
,
.
1
7
3
1
5
8
2
,
.
2
2
9
4
9
7
,
.
5
5
0
3
1
8
,
4
0
0
.
2
0
0
.
.
5
2
1
3
8
.
4
2
0
3
5
6
3
3
3
.
.
3
2
5
6
4
4
2
1
1
.
5
7
1
1
.
0
0
0
.
0
0
0
.
.
8
6
2
1
5
1
,
3
0
2
6
.
8
3
7
8
.
.
3
3
6
7
1
1
,
5
9
2
1
.
7
6
4
2
.
0
0
0
.
0
0
0
.
.
3
9
6
3
3
3
,
.
0
9
9
7
1
1
,
.
6
1
4
7
0
1
,
.
)
6
4
0
2
9
(
.
2
9
1
7
1
.
4
7
1
4
2
.
2
7
9
3
7
1
,
9
5
2
-
.
.
3
3
1
8
1
.
8
1
3
1
6
.
7
4
8
7
4
-
6
2
3
5
.
.
1
3
6
0
6
1
7
0
.
.
2
2
5
3
8
1
,
.
3
5
8
0
0
1
,
.
6
3
1
8
3
5
1
6
2
.
.
3
9
8
8
6
0
0
0
.
7
5
2
.
5
2
8
6
.
6
2
0
1
.
5
7
0
.
0
0
1
.
.
0
8
4
0
1
)
8
0
9
1
(
.
0
0
2
3
.
)
1
0
0
(
.
)
1
0
0
(
.
1
0
0
.
1
0
0
.
-
-
-
6
2
6
.
-
-
)
1
5
8
(
.
6
2
6
.
-
-
1
5
8
.
0
0
0
.
4
9
5
.
7
7
0
.
4
0
5
.
6
6
7
7
.
5
7
9
3
.
3
0
1
5
.
6
8
8
1
.
6
6
7
7
.
6
6
7
7
.
0
0
1
.
6
6
7
7
.
2
5
0
9
.
6
6
7
7
.
6
6
7
7
.
5
1
9
6
.
.
9
1
0
8
1
6
1
9
4
.
5
1
9
6
.
5
1
9
6
.
5
1
9
6
.
7
7
4
.
7
7
4
.
2
1
0
.
5
1
9
6
.
5
1
9
6
.
3
8
8
.
8
1
2
.
8
1
2
.
2
3
0
1
.
8
1
2
.
8
1
2
.
8
1
2
.
8
1
2
.
5
1
9
6
.
2
5
0
9
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
R
U
E
V
E
L
D
G
S
D
E
A
R
U
E
R
U
E
R
N
I
R
U
E
P
B
G
R
U
E
R
U
E
D
S
U
R
M
O
D
U
A
D
S
U
D
S
U
D
S
U
R
A
Z
R
A
Z
A
F
C
F
D
S
U
D
S
U
D
K
H
B
H
T
B
H
T
Y
N
C
B
H
T
B
H
T
B
H
T
B
H
T
D
S
U
P
B
G
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
6
0
0
2
,
2
1
r
e
b
o
t
c
O
h
b
M
t
f
a
h
c
s
l
l
e
s
e
g
s
g
n
u
t
l
a
w
r
e
V
i
i
m
u
n
m
u
A
s
u
r
o
C
l
8
0
0
2
,
9
1
e
n
u
J
D
A
a
i
r
a
g
u
B
s
l
m
e
t
s
y
S
g
n
d
i
l
i
u
B
s
u
r
o
C
6
0
0
2
,
2
1
r
e
b
o
t
c
O
2
1
0
2
,
1
r
e
b
m
e
v
o
N
6
0
0
2
,
2
1
r
e
b
o
t
c
O
6
0
0
2
,
2
1
r
e
b
o
t
c
O
6
0
0
2
,
2
1
r
e
b
o
t
c
O
6
0
0
2
,
2
1
r
e
b
o
t
c
O
0
1
0
2
,
1
1
e
n
u
J
8
0
0
2
,
5
2
y
r
a
u
r
b
e
F
8
0
0
2
,
1
t
s
u
g
u
A
d
e
t
i
i
m
L
e
t
P
a
i
s
A
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
E
Z
F
p
i
z
l
a
K
d
e
t
i
i
m
L
e
t
a
v
i
r
P
a
d
n
i
I
p
i
z
l
a
K
L
R
S
y
l
a
t
I
p
i
z
l
a
K
d
e
t
i
i
m
L
p
i
z
l
a
K
.
.
.
i
U
L
S
n
a
p
S
p
i
z
l
a
K
.
i
d
t
L
e
t
P
s
g
n
d
o
H
s
l
a
r
e
n
M
l
i
l
l
a
b
o
G
S
T
A
S
s
a
l
l
e
H
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
C
L
L
g
n
n
M
i
i
l
a
m
R
i
l
A
0
1
0
2
,
3
2
r
e
b
m
e
t
p
e
S
2
1
0
2
,
1
3
r
e
b
m
e
c
e
D
0
1
0
2
,
1
3
r
e
b
m
e
c
e
D
d
e
t
i
i
m
L
a
d
a
n
a
C
s
l
a
r
e
n
M
i
l
e
e
t
S
a
t
a
T
d
t
L
l
a
t
i
p
a
C
a
d
a
n
a
C
S
T
d
e
t
i
i
m
L
K
U
M
S
T
9
0
0
2
,
1
t
s
u
g
u
A
.
d
t
L
.
y
t
P
y
n
a
p
m
o
C
l
a
o
C
i
t
a
m
i
l
a
K
1
1
0
2
,
4
2
y
r
a
u
r
b
e
F
8
0
0
2
,
6
h
c
r
a
M
2
1
0
2
,
5
1
y
a
M
8
0
0
2
,
5
2
y
r
a
u
n
a
J
8
0
0
2
,
5
2
y
r
a
u
n
a
J
8
0
0
2
,
5
2
y
r
a
u
n
a
J
.
d
t
L
)
e
r
o
p
a
g
n
S
(
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
d
t
L
.
y
t
P
e
r
O
n
o
r
I
g
n
e
b
d
e
S
i
.
A
S
e
r
i
o
v
I
’
D
e
t
o
C
l
e
e
t
S
a
t
a
T
d
t
L
)
y
r
a
t
e
i
r
p
o
r
P
(
1
6
4
r
e
g
n
G
k
c
a
B
l
i
.
e
t
P
)
e
r
o
p
a
g
n
S
(
i
d
e
t
i
i
m
L
)
a
i
s
A
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
8
0
0
2
,
5
2
y
r
a
u
n
a
J
.
d
t
L
)
i
a
h
g
n
a
h
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
6
0
0
2
,
4
l
i
r
p
A
.
d
t
L
y
n
a
p
m
o
C
c
i
l
b
u
P
)
d
n
a
l
i
a
h
T
(
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
i
l
s
g
n
d
o
H
A
S
T
I
6
0
0
2
,
4
l
i
r
p
A
.
c
l
P
p
u
o
r
G
l
e
e
t
S
S
T
N
.
.
0
1
0
2
,
8
r
e
b
m
e
t
p
e
S
2
1
0
2
,
2
2
e
n
u
J
8
0
0
2
,
1
r
e
b
m
e
c
e
D
5
8
9
1
,
8
1
y
a
M
1
1
0
2
,
1
l
i
r
p
A
6
1
0
2
,
6
1
t
s
u
g
u
A
9
0
0
2
,
4
1
y
l
u
J
8
1
0
2
,
6
1
y
r
a
u
n
a
J
8
1
0
2
,
8
1
y
r
a
u
n
a
J
7
1
0
2
,
7
y
l
u
J
d
e
t
i
i
m
L
a
h
s
i
d
O
l
e
e
t
S
a
t
a
T
d
n
a
g
n
i
s
s
e
c
o
r
P
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
n
o
i
t
u
b
i
r
t
s
i
D
.
d
t
L
.
e
t
P
r
e
u
s
s
I
o
C
o
r
P
d
e
t
i
i
m
L
s
l
l
o
R
o
y
a
T
d
e
t
i
i
m
L
s
t
n
e
m
g
P
a
t
a
T
e
h
T
i
d
t
L
a
d
n
i
I
f
o
y
n
a
p
m
o
C
e
t
a
p
n
T
e
h
T
l
i
d
n
a
l
l
a
b
t
o
o
F
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
m
L
e
t
a
v
i
r
P
g
n
i
t
r
o
p
S
n
o
i
t
a
d
n
u
o
F
l
e
e
t
S
a
t
a
T
d
e
t
i
m
L
i
l
e
e
t
S
i
h
c
k
a
S
d
e
t
i
m
L
i
l
e
e
t
S
i
l
a
a
s
g
u
J
6
0
0
2
,
4
l
i
r
p
A
.
d
t
L
.
o
C
l
e
e
t
S
n
o
i
t
c
u
r
t
s
n
o
C
m
a
S
e
h
T
i
6
0
0
2
,
4
l
i
r
p
A
.
d
t
L
.
o
C
)
1
0
0
2
(
l
e
e
t
S
d
n
A
n
o
r
I
i
m
a
S
e
h
T
0
1
0
2
,
3
2
l
i
r
p
A
.
d
t
L
.
e
t
P
y
n
a
p
m
o
C
t
n
e
m
e
r
u
c
o
r
P
l
l
a
b
o
G
S
T
.
l
S
.
o
N
8
9
1
9
9
1
0
0
2
1
0
2
2
0
2
3
0
2
4
0
2
5
0
2
6
0
2
7
0
2
8
0
2
9
0
2
0
1
2
1
1
2
2
1
2
3
1
2
4
1
2
5
1
2
6
1
2
7
1
2
8
1
2
9
1
2
0
2
2
1
2
2
2
2
2
3
2
2
4
2
2
5
2
2
6
2
2
7
2
2
8
2
2
9
2
2
0
3
2
1
3
2
2
3
2
3
3
2
4
3
2
5
3
2
6
3
2
7
3
2
8
3
2
157
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
5
6
2
7
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
7
9
0
9
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
0
1
5
.
0
4
0
5
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
7
6
9
5
.
)
6
6
5
1
(
.
.
)
3
8
9
7
8
(
)
1
0
0
(
.
)
6
7
0
(
.
)
1
0
0
(
.
)
4
2
0
(
.
)
3
2
0
(
.
-
-
)
6
0
0
(
.
)
1
1
0
(
.
-
-
-
-
-
6
3
4
.
-
-
-
-
-
-
-
-
-
0
0
0
.
)
4
1
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
3
0
4
6
.
)
6
6
5
1
(
.
.
)
3
8
9
7
8
(
)
1
0
0
(
.
)
6
7
0
(
.
)
1
0
0
(
.
)
4
2
0
(
.
)
3
2
0
(
.
-
-
)
6
0
0
(
.
)
4
2
0
(
.
)
%
(
i
p
h
s
r
e
n
w
O
d
e
s
o
p
o
r
P
d
n
e
d
i
v
i
D
)
e
r
o
r
c
`
(
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
t
f
a
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
r
o
f
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
t
fi
o
r
P
e
r
o
f
e
b
n
o
i
t
a
x
a
T
)
e
r
o
r
c
`
(
r
e
v
o
n
r
u
T
)
e
r
o
r
c
`
(
l
a
t
o
T
l
a
t
o
T
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
s
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
l
a
t
o
T
s
t
e
s
s
A
)
e
r
o
r
c
`
(
s
e
v
r
e
s
e
R
l
s
u
p
r
u
S
&
)
e
r
o
r
c
`
(
)
e
r
o
r
c
`
(
*
l
a
t
i
p
a
C
e
r
a
h
S
@
e
t
a
r
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
d
e
r
i
u
q
c
a
s
a
w
y
r
a
i
d
i
s
b
u
s
n
e
h
w
e
c
n
i
s
e
t
a
D
-
-
-
-
-
-
.
3
6
0
4
5
-
-
-
-
-
-
.
4
1
0
7
1
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
.
1
9
5
4
7
.
2
6
0
6
1
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
.
5
8
3
0
4
.
0
5
4
2
0
1
,
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
4
3
5
2
.
)
6
6
5
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
0
0
.
1
0
1
.
0
0
0
.
6
1
6
.
7
0
3
2
.
-
-
8
1
5
2
.
5
6
0
2
.
3
0
0
.
0
0
0
.
3
0
0
.
5
8
2
1
.
7
1
0
.
0
0
0
.
0
0
0
.
7
3
4
2
.
2
4
1
6
.
)
2
0
0
(
.
)
6
0
1
(
.
)
2
0
0
(
.
.
)
8
7
2
6
2
(
.
)
0
9
1
1
1
(
0
0
0
.
0
0
0
.
)
6
0
1
(
.
6
7
4
3
.
.
2
3
1
6
2
8
1
,
.
6
7
5
9
5
1
,
.
6
8
4
7
2
1
2
,
.
3
1
9
0
6
9
3
,
.
8
5
5
1
1
8
1
,
1
0
0
.
1
0
0
.
1
0
0
.
1
0
0
.
1
0
0
.
.
5
2
3
5
2
.
0
9
8
5
2
.
9
6
8
1
2
5
0
0
.
5
0
0
.
5
0
0
.
.
7
4
9
6
2
0
0
9
8
.
0
0
0
.
0
0
0
.
5
2
0
.
0
0
6
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
6
1
9
4
.
6
1
9
4
.
6
1
9
4
.
6
1
9
4
.
0
0
1
.
0
0
1
.
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
D
U
A
D
U
A
D
U
A
D
U
A
R
N
I
R
N
I
8
1
0
2
,
8
1
y
r
a
u
n
a
J
8
1
0
2
,
5
1
y
r
a
u
n
a
J
8
1
0
2
,
8
1
y
r
a
u
n
a
J
8
1
0
2
,
9
1
y
r
a
u
n
a
J
8
1
0
2
,
4
2
y
r
a
u
n
a
J
y
n
a
p
m
o
C
e
h
t
f
o
e
m
a
N
d
e
t
i
m
L
i
l
e
e
t
S
e
l
i
M
i
t
h
g
a
r
t
S
d
e
t
i
m
L
i
l
e
e
t
S
i
d
n
u
m
a
o
N
d
e
t
i
m
L
i
l
e
e
t
S
a
b
o
d
a
m
a
J
d
e
t
i
m
L
i
l
e
e
t
S
r
u
p
u
t
s
i
B
d
e
t
i
m
L
i
l
e
e
t
S
a
n
m
D
i
8
1
0
2
,
9
1
y
r
a
u
n
a
J
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
r
e
b
m
e
t
p
e
S
d
e
t
i
d
e
t
i
i
m
L
t
a
r
a
h
B
a
y
h
d
a
M
l
e
e
t
S
n
a
h
s
u
h
B
.
d
t
L
Y
T
P
)
a
i
l
a
r
t
s
u
A
(
l
e
e
t
S
n
a
h
s
u
h
B
.
d
t
L
Y
T
P
d
e
t
a
d
i
l
o
s
n
o
C
n
e
w
o
B
.
d
t
L
Y
T
P
y
g
r
e
n
E
n
e
w
o
B
.
d
t
L
Y
T
P
l
a
o
C
n
e
w
o
B
i
m
L
e
t
a
v
i
r
P
t
n
e
m
p
o
e
v
e
D
l
t
r
o
P
e
v
i
t
a
e
r
C
d
e
t
i
i
m
L
)
a
s
s
i
r
O
(
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
i
m
L
)
h
t
u
o
S
(
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
m
L
i
l
e
e
t
S
l
i
a
p
n
m
a
B
d
e
t
i
i
m
L
L
S
B
l
e
e
t
S
a
t
a
T
8
1
0
2
,
8
1
r
e
b
m
e
t
p
e
S
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
r
o
P
a
h
k
e
r
a
n
r
a
b
u
S
8
0
0
2
,
6
t
s
u
g
u
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
r
e
w
o
P
r
a
w
h
s
e
n
a
b
u
h
B
.
l
S
.
o
N
9
3
2
0
4
2
1
4
2
2
4
2
3
4
2
4
4
2
5
4
2
6
4
2
7
4
2
8
4
2
9
4
2
0
5
2
1
5
2
2
5
2
3
5
2
4
5
2
5
5
2
158
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
r
e
b
m
e
c
e
D
s
i
9
9
1
,
9
7
,
0
7
,
6
5
,
6
4
.
l
i
S
t
a
s
e
n
a
p
m
o
c
y
r
a
d
i
s
b
u
s
i
r
o
f
d
o
i
r
e
p
g
n
i
t
r
o
p
e
R
l
n
o
i
t
a
u
c
l
a
c
r
o
f
d
e
r
e
d
i
s
n
o
c
n
e
e
b
s
a
h
9
1
0
2
,
1
3
h
c
r
a
M
n
o
s
a
e
t
a
r
e
g
n
a
h
c
x
e
g
n
i
s
o
C
l
l
e
b
a
l
i
a
v
a
t
o
n
s
i
n
o
i
t
a
m
r
o
f
n
i
l
a
i
c
n
a
n
fi
s
a
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
d
e
r
e
d
i
s
n
o
c
t
o
N
y
e
n
o
m
n
o
i
t
a
c
i
l
p
p
a
e
r
a
h
s
s
e
d
u
l
c
n
I
*
#
@
$
:
s
e
t
o
N
r
a
e
y
e
h
t
g
n
i
r
u
d
d
o
s
r
o
d
e
t
a
d
u
q
l
i
i
l
n
e
e
b
e
v
a
h
h
c
i
h
w
s
e
i
r
a
i
d
i
s
b
u
s
e
h
t
f
o
e
m
a
N
.
d
t
L
y
n
a
p
m
o
C
)
i
a
h
g
n
a
h
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
e
d
a
r
T
l
e
e
t
S
t
a
N
H
b
m
G
e
c
i
v
r
e
s
l
h
a
t
S
e
m
u
B
l
h
b
M
t
f
a
h
c
s
l
l
e
s
e
g
s
g
n
u
t
l
a
w
r
e
V
m
u
n
m
u
A
s
u
r
o
C
l
i
i
D
A
a
i
r
a
g
u
B
s
l
m
e
t
s
y
S
g
n
d
i
l
i
u
B
s
u
r
o
C
d
e
t
i
i
m
L
e
t
a
v
i
r
P
a
d
n
i
I
p
i
z
l
a
K
d
e
t
i
i
m
L
e
t
P
a
i
s
A
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
E
Z
F
p
i
z
l
a
K
L
R
S
y
l
a
t
I
p
i
z
l
a
K
d
e
t
i
i
m
L
p
i
z
l
a
K
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
d
t
L
.
y
t
P
e
r
O
n
o
r
I
g
n
e
b
d
e
S
i
.
A
S
e
r
i
o
v
I
’
D
e
t
o
C
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
i
l
s
g
n
d
o
H
A
S
T
I
A
S
s
a
l
l
e
H
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
t
L
)
y
r
a
t
e
i
r
p
o
r
P
(
1
6
4
r
e
g
n
G
k
c
a
B
l
i
.
.
.
i
U
L
S
n
a
p
S
p
i
z
l
a
K
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
s
n
o
i
t
a
r
e
p
o
e
c
n
e
m
m
o
c
o
t
t
e
y
e
r
a
h
c
i
h
w
s
e
i
r
a
i
d
i
s
b
u
s
e
h
t
f
o
e
m
a
N
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
r
o
P
a
h
k
e
r
a
n
r
a
b
u
S
d
e
t
i
i
m
L
)
a
s
s
i
r
O
(
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
i
m
L
)
h
t
u
o
S
(
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
i
m
L
y
g
r
e
n
E
L
I
S
T
d
e
t
i
i
m
L
t
a
r
a
h
B
a
y
h
d
a
M
l
e
e
t
S
n
a
h
s
u
h
B
.
d
t
L
Y
T
P
)
a
i
l
a
r
t
s
u
A
(
l
e
e
t
S
n
a
h
s
u
h
B
.
d
t
L
Y
T
P
d
e
t
a
d
i
l
o
s
n
o
C
n
e
w
o
B
.
d
t
L
Y
T
P
y
g
r
e
n
E
n
e
w
o
B
.
d
t
L
Y
T
P
l
a
o
C
n
e
w
o
B
1
2
3
4
5
6
7
8
9
8
2
3
.
4
8
0
2
.
)
9
6
2
(
.
7
2
0
8
.
-
4
0
0
.
8
7
4
1
.
9
5
6
1
.
-
8
9
8
1
.
8
6
3
.
3
1
0
.
1
5
1
.
2
7
1
.
3
2
2
8
.
8
2
4
1
.
-
-
)
1
0
0
(
.
6
9
0
.
2
8
2
.
)
0
3
7
(
.
5
5
5
2
.
5
2
8
.
6
6
4
.
7
3
1
.
)
9
3
3
8
(
.
-
-
-
-
5
1
1
.
4
8
0
2
.
)
3
0
0
(
.
1
7
0
8
.
4
0
0
.
8
7
4
1
.
6
2
7
1
.
-
6
7
9
1
.
3
8
3
.
4
1
0
.
7
5
1
.
9
7
1
.
3
4
9
.
9
8
8
2
.
-
-
-
3
7
2
.
2
8
2
.
)
5
6
3
(
.
5
5
4
2
.
5
2
8
.
6
6
4
.
7
3
1
.
)
0
9
4
4
(
.
-
-
-
)
4
4
2
(
.
)
4
4
2
(
.
-
-
-
-
-
)
6
5
9
6
(
.
1
1
3
1
.
7
2
9
2
.
9
2
7
.
9
1
0
.
)
5
7
0
(
.
5
2
3
.
-
7
8
0
.
)
9
0
1
(
.
)
1
1
0
(
.
)
0
6
0
(
.
)
5
0
0
(
.
)
0
0
0
(
.
2
0
0
.
)
8
4
1
(
.
)
5
0
0
(
.
-
-
-
3
3
0
.
-
-
-
-
-
)
1
0
6
3
(
.
9
7
6
.
5
1
5
1
.
8
7
3
.
0
1
0
.
)
3
2
0
(
.
8
6
1
.
-
5
4
0
.
)
6
5
0
(
.
)
6
0
0
(
.
)
1
3
0
(
.
)
2
0
0
(
.
)
0
0
0
(
.
1
0
0
.
)
7
7
0
(
.
)
3
0
0
(
.
-
-
-
-
d
e
r
e
d
i
s
n
o
c
t
o
N
n
o
i
t
a
d
i
l
o
s
n
o
c
n
i
n
i
d
e
r
e
d
i
s
n
o
C
n
o
i
t
a
d
i
l
o
s
n
o
c
i
l
g
n
d
o
h
e
r
a
h
s
5
1
4
.
.
2
6
9
3
1
)
1
6
4
(
.
.
2
5
0
0
4
4
5
8
.
7
6
5
8
.
4
7
1
.
.
7
3
1
7
3
-
.
2
7
8
9
1
.
2
6
2
3
2
4
8
3
.
.
7
7
2
8
1
2
7
7
2
.
.
3
3
9
9
1
8
0
4
6
.
-
-
)
4
0
0
(
.
2
0
7
.
9
8
6
1
.
)
4
2
9
4
(
.
.
8
7
9
5
1
2
3
6
1
.
0
4
2
1
.
4
7
7
1
.
t
s
e
t
a
l
r
e
p
s
a
t
e
e
h
s
e
c
n
a
l
a
b
.
)
6
7
5
6
1
1
(
,
-
-
-
-
-
-
-
-
-
)
9
8
2
2
(
.
3
9
4
4
.
0
0
0
.
1
1
8
.
1
6
1
.
-
3
2
0
.
2
3
5
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
r
a
e
y
e
h
t
r
o
f
s
s
o
l
/
t
fi
o
r
p
f
o
e
r
a
h
S
h
t
r
o
w
t
e
N
)
e
r
o
r
c
`
(
l
o
t
e
b
a
t
u
b
i
r
t
t
a
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
*
*
*
*
*
*
*
*
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
@
#
*
*
d
e
r
i
a
p
m
i
s
i
s
a
,
d
e
t
a
d
i
l
o
s
n
o
c
t
o
N
l
e
u
a
v
t
n
e
m
t
s
e
v
n
i
e
h
t
1
1
1
1
5
1
5
4
4
4
5
5
5
5
1
1
1
1
5
5
2
2
2
2
2
2
2
1
2
1
2
1
1
1
1
1
1
5
5
5
5
1
5
5
5
5
5
5
5
5
5
5
5
5
1
3
2
d
e
t
a
d
i
l
o
s
n
o
c
t
o
n
s
i
e
c
n
e
u
fl
n
i
e
r
u
t
n
e
v
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
e
h
t
y
h
w
n
o
s
a
e
R
n
o
i
t
p
i
r
c
s
e
D
e
r
e
h
t
w
o
h
f
o
i
t
n
a
c
fi
n
g
i
s
s
i
s
e
t
a
i
c
o
s
s
A
d
n
a
s
e
r
u
t
n
e
V
t
n
o
J
-
’
B
i
‘
T
R
A
P
f
o
d
n
e
t
x
E
)
%
i
(
g
n
d
o
h
l
e
r
u
t
n
e
v
)
e
r
o
r
c
`
(
f
o
t
n
u
o
m
A
n
i
t
n
e
m
t
s
e
v
n
I
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
d
n
e
r
a
e
y
l
d
e
h
s
e
r
a
h
s
f
o
.
o
N
y
n
a
p
m
o
c
e
h
t
y
b
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
n
i
e
h
t
n
o
e
r
u
t
n
e
v
g
n
i
t
r
o
p
e
R
*
y
c
n
e
r
r
u
c
d
e
t
a
i
c
o
s
s
a
s
a
w
e
r
u
t
n
e
V
e
h
t
h
c
i
h
w
n
o
e
t
a
D
i
t
n
o
J
r
o
e
t
a
i
c
o
s
s
A
d
e
r
i
u
q
c
a
r
o
d
e
t
i
d
u
a
t
s
e
t
a
L
t
e
e
h
s
e
c
n
a
l
a
b
e
t
a
d
y
t
i
t
n
E
e
h
t
f
o
e
m
a
N
.
o
N
.
l
S
e
r
u
t
n
e
V
t
n
o
J
i
.
A
0
0
6
2
.
0
0
0
5
.
0
0
0
5
.
0
0
0
5
.
.
0
0
0
0
1
0
0
0
5
.
.
0
0
0
0
1
0
0
1
5
.
0
0
4
7
.
0
0
1
5
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
0
6
2
.
8
7
9
3
.
1
3
5
2
.
0
0
6
2
.
0
0
1
5
.
0
0
4
7
.
0
0
0
5
.
0
0
9
4
.
3
3
3
3
.
0
0
0
5
.
0
0
0
5
.
0
0
0
5
.
0
0
5
3
.
9
8
3
3
.
-
-
-
0
0
0
3
.
8
7
7
2
.
1
3
9
4
.
0
0
5
2
.
9
1
7
2
.
1
1
4
3
.
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
.
0
0
0
0
1
0
0
0
7
.
.
0
0
0
0
1
.
0
0
0
0
1
-
-
-
-
-
-
-
-
-
-
3
2
3
3
.
0
0
0
2
.
0
0
0
3
.
2
6
3
.
0
0
4
.
4
9
2
1
.
.
0
0
3
3
4
9
1
4
.
.
4
1
0
5
3
3
1
0
.
.
2
3
8
2
6
3
2
0
.
8
1
9
.
4
2
1
.
9
3
4
.
1
1
1
.
6
1
5
.
8
1
9
.
.
6
1
3
7
1
-
6
2
0
.
3
0
0
.
.
5
6
3
1
5
4
0
.
7
6
9
.
0
0
0
.
0
1
0
.
5
0
9
.
5
4
0
1
.
.
5
0
9
3
4
2
,
-
-
-
-
-
-
6
4
1
.
.
1
6
5
2
-
9
7
5
.
1
8
1
9
.
0
0
0
.
.
5
2
3
2
1
0
6
0
.
5
4
1
.
3
8
7
2
.
7
5
7
5
.
-
-
-
-
-
-
-
-
-
-
0
0
0
.
9
1
1
.
1
7
0
.
,
5
4
9
9
1
6
3
,
,
0
0
0
0
0
0
4
,
,
0
0
4
1
4
9
2
1
,
,
,
0
0
0
0
0
0
3
3
4
,
,
,
0
0
0
5
3
6
0
1
,
,
,
0
0
5
7
6
1
5
6
,
,
,
0
0
0
0
5
2
1
,
,
0
0
0
0
2
3
8
2
6
,
,
1
1
0
0
1
,
6
1
1
9
2
2
,
,
0
0
0
0
8
1
9
,
,
0
0
0
0
0
6
3
,
,
0
0
0
5
7
4
4
,
,
0
0
0
0
6
1
3
7
1
,
,
,
0
0
0
0
4
3
,
4
4
7
2
,
0
0
0
0
5
,
0
0
1
0
0
0
0
8
,
7
9
4
5
2
,
,
0
0
0
0
6
2
,
,
0
0
0
3
5
6
3
1
,
,
,
0
0
0
0
0
0
1
,
-
-
-
,
0
0
0
0
3
3
,
,
0
2
9
9
4
0
1
,
,
1
0
0
0
5
1
,
,
0
0
0
0
7
0
1
,
-
,
8
5
5
3
4
3
1
7
2
,
,
,
0
0
5
4
1
6
5
2
,
,
,
9
9
6
7
9
1
1
,
,
5
7
2
3
5
7
3
,
1
,
1
8
4
3
8
9
5
2
,
,
,
0
5
1
6
0
3
2
5
1
,
,
,
0
0
0
0
5
1
1
,
,
0
0
0
5
0
1
,
0
0
2
0
0
0
2
,
-
-
-
-
-
-
-
-
-
-
2
5
3
3
,
0
0
8
1
,
,
0
0
0
0
0
7
,
R
N
I
R
N
I
R
N
I
R
N
I
R
K
L
D
S
U
R
N
I
R
N
I
R
N
I
R
N
I
D
S
U
Y
N
C
R
U
E
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
P
B
G
R
U
E
P
B
G
Y
R
T
P
B
G
R
U
E
D
S
U
R
N
I
P
B
G
R
U
E
D
K
H
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
D
G
S
D
S
U
D
S
U
R
K
L
R
M
O
P
B
G
P
B
G
R
N
I
D
S
U
D
U
A
B
H
T
R
A
Z
D
S
U
D
S
U
Y
N
C
Y
N
C
D
S
U
R
N
I
R
Y
M
R
U
E
0
1
0
2
,
5
1
r
e
b
m
e
t
p
e
S
1
0
0
2
,
1
y
r
a
u
r
b
e
F
8
0
0
2
,
8
1
r
e
b
m
e
t
p
e
S
5
0
0
2
,
9
y
r
a
u
r
b
e
F
7
0
0
2
,
9
1
h
c
r
a
M
5
1
0
2
,
1
l
i
r
p
A
5
1
0
2
,
1
l
i
r
p
A
2
1
0
2
,
7
1
t
s
u
g
u
A
0
1
0
2
,
2
2
r
e
b
m
e
c
e
D
2
0
0
2
,
8
1
y
r
a
u
n
a
J
4
0
0
2
,
1
y
r
a
u
r
b
e
F
8
0
0
2
,
5
2
e
n
u
J
5
0
0
2
,
1
h
c
r
a
M
2
0
0
2
,
8
1
y
r
a
u
n
a
J
6
0
0
2
,
0
3
r
e
b
o
t
c
O
8
0
0
2
,
9
y
r
a
u
n
a
J
4
1
0
2
,
5
t
s
u
g
u
A
5
9
9
1
,
4
2
l
i
r
p
A
1
0
0
2
,
y
a
M
-
7
0
0
2
7
0
0
2
7
0
0
2
7
0
0
2
7
0
0
2
7
0
0
2
,
2
,
2
,
2
,
2
,
2
,
2
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
7
0
0
2
,
0
3
r
e
b
m
e
v
o
N
8
1
0
2
,
8
1
y
a
M
7
0
0
2
7
0
0
2
,
2
,
2
l
i
r
p
A
l
i
r
p
A
4
1
0
2
,
0
3
y
a
M
3
6
9
1
,
6
1
r
e
b
o
t
c
O
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
,
1
,
1
,
1
,
1
,
1
,
1
,
1
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
5
1
0
2
,
1
l
i
r
p
A
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
5
1
0
2
,
1
,
1
,
1
,
1
,
1
,
1
,
1
,
1
,
1
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
l
i
r
p
A
-
-
-
-
-
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
-
-
-
,
0
3
r
e
b
m
e
t
p
e
S
,
1
3
r
e
b
m
e
c
e
D
,
1
3
r
e
b
m
e
c
e
D
,
1
3
r
e
b
m
e
c
e
D
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
-
-
-
-
-
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
-
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
8
0
0
2
,
5
2
y
r
a
u
n
a
J
4
1
0
2
,
5
t
s
u
g
u
A
-
,
1
3
r
e
b
m
e
c
e
D
,
1
3
r
e
b
m
e
c
e
D
-
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
c
i
v
r
e
S
l
l
i
M
l
e
e
t
S
a
y
a
a
m
H
l
i
d
e
t
i
m
i
l
s
e
c
i
v
r
e
s
n
o
i
t
c
n
u
m
j
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
g
n
n
M
T
&
S
i
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
l
e
e
t
S
e
p
o
c
S
e
u
B
a
t
a
T
l
d
t
L
)
t
v
P
(
a
k
n
a
L
t
h
g
a
s
y
L
e
p
o
c
S
e
u
B
l
.
i
d
t
L
e
t
P
g
n
p
p
h
S
K
Y
N
a
t
a
T
i
g
n
i
s
s
e
c
o
r
P
&
g
n
i
l
a
e
n
n
A
s
u
o
u
n
i
t
n
o
C
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
E
Z
F
s
c
i
t
s
i
g
o
L
d
n
a
g
n
p
p
h
S
i
i
l
a
n
o
i
t
a
n
r
e
t
n
I
d
e
t
i
i
m
L
s
c
i
t
s
i
g
o
L
l
a
n
o
i
t
a
n
r
e
t
n
I
M
T
.
d
t
L
a
n
h
C
i
l
l
a
b
o
G
M
K
T
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
r
e
t
a
W
a
t
n
a
g
D
a
b
a
N
i
d
e
t
i
i
m
L
n
r
e
w
n
a
l
L
s
t
c
u
d
o
r
P
r
i
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
l
a
t
i
p
s
o
H
S
T
a
c
i
d
e
M
d
e
t
i
i
m
L
k
r
a
P
e
e
l
i
b
u
J
o
c
c
i
N
.
d
e
t
i
i
m
L
r
u
p
a
y
t
i
d
A
Z
E
S
d
e
t
i
i
m
L
s
c
i
t
s
i
g
o
L
l
l
a
b
o
G
M
K
T
d
e
t
i
i
m
L
y
g
r
e
n
E
l
a
i
r
t
s
u
d
n
I
H
b
m
G
l
l
a
b
o
G
M
K
T
d
e
t
i
i
m
L
l
i
o
p
m
a
J
d
e
t
i
i
m
L
y
n
a
p
m
o
C
g
n
n
M
M
T
i
i
d
e
t
i
i
i
m
L
e
t
a
v
i
r
P
)
a
d
n
I
(
g
n
p
p
h
S
K
Y
N
a
t
a
T
i
i
.
.
V
B
g
n
d
o
H
l
i
l
a
a
t
e
M
a
r
u
a
L
i
l
F
O
V
s
e
g
o
o
n
h
c
e
T
e
c
i
v
r
e
S
l
l
o
R
t
r
u
o
C
s
n
e
v
o
g
o
o
H
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
l
a
o
C
t
s
a
E
l
a
d
n
A
d
e
t
i
i
m
L
)
s
u
i
t
i
r
u
a
M
(
a
g
n
e
B
e
D
s
a
n
M
i
d
e
t
i
i
l
m
L
y
g
o
o
n
h
c
e
T
g
n
i
r
u
t
x
e
T
S
A
t
e
r
a
c
i
T
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
n
o
i
t
u
o
S
l
l
e
e
t
S
n
o
i
t
c
u
r
t
s
n
o
C
C
S
V
T
d
t
L
c
i
t
a
u
q
A
a
g
n
i
l
a
K
e
t
a
i
c
o
s
s
A
d
t
L
s
k
r
o
W
a
c
i
l
i
S
&
y
a
l
c
e
r
i
F
i
b
u
h
d
r
a
m
u
K
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
e
n
i
l
i
e
p
P
r
s
B
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
t
a
p
n
T
n
o
f
A
l
i
d
e
t
i
i
i
m
L
g
n
i
r
e
e
n
g
n
E
d
n
a
g
n
i
t
s
a
C
l
a
t
e
M
i
b
u
h
d
r
a
m
u
K
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
l
m
e
t
s
y
S
y
g
o
o
n
h
c
e
T
y
g
r
e
n
E
c
i
g
e
t
a
r
t
S
.
j
d
t
L
s
t
c
e
o
r
P
&
n
o
i
t
c
u
r
t
s
n
o
C
a
t
a
T
.
d
e
t
i
i
m
L
F
R
T
d
e
t
i
i
m
L
s
r
e
r
u
t
c
a
f
u
n
a
M
r
e
l
i
a
r
T
a
k
n
a
L
h
c
t
u
D
d
e
t
i
i
m
L
e
t
P
s
g
n
d
o
H
F
R
T
l
i
d
e
t
i
i
m
L
e
t
P
e
r
o
p
a
g
n
S
F
R
T
i
d
e
t
i
i
m
L
)
e
t
a
v
i
r
P
(
g
n
i
r
e
e
n
g
n
E
a
k
n
a
L
h
c
t
u
D
i
d
t
L
l
a
n
o
i
t
a
n
r
e
t
n
I
i
s
n
b
o
R
t
t
i
w
e
H
C
L
L
r
e
l
i
a
r
T
a
k
n
a
L
h
c
t
u
D
d
e
t
i
i
m
L
e
t
a
v
i
r
P
)
a
d
n
I
(
i
d
t
L
s
g
n
d
o
H
l
i
l
a
n
o
i
t
a
n
r
e
t
n
I
i
s
n
b
o
R
t
t
i
w
e
H
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
e
t
P
)
a
i
s
A
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
)
y
t
P
(
)
A
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
i
d
t
L
y
t
P
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
.
o
C
)
d
n
a
l
i
a
h
T
(
l
s
e
a
S
K
R
O
Y
.
d
t
L
e
t
P
t
e
n
d
e
R
d
t
L
.
o
C
)
i
a
h
g
n
a
h
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
.
o
C
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
o
a
d
g
n
Q
i
d
t
L
e
t
P
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
.
d
h
B
.
n
d
S
)
M
(
l
s
e
fi
o
r
P
n
a
e
p
o
r
u
E
L
R
S
s
l
fi
o
r
P
i
l
b
A
d
t
L
t
v
P
s
l
e
v
a
r
T
a
h
s
u
a
M
l
i
g
n
i
r
e
e
n
g
n
E
k
r
o
Y
T
P
d
e
t
i
i
i
m
L
g
a
r
c
s
n
e
v
a
R
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
.
B
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
159
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES | INFORMATION ON SUBSIDIARIES, ETC.
-
-
-
2
9
4
3
.
)
4
5
0
1
(
.
-
-
-
-
-
-
-
7
9
4
1
.
)
4
7
3
(
.
-
-
-
-
7
1
5
3
.
6
7
2
1
.
)
2
4
2
1
(
.
)
2
4
2
1
(
.
d
e
r
e
d
i
s
n
o
c
t
o
N
n
o
i
t
a
d
i
l
o
s
n
o
c
n
i
n
i
d
e
r
e
d
i
s
n
o
C
n
o
i
t
a
d
i
l
o
s
n
o
c
i
l
g
n
d
o
h
e
r
a
h
s
-
-
-
0
1
5
3
.
.
8
4
6
2
1
-
-
-
-
-
9
6
9
1
.
t
s
e
t
a
l
r
e
p
s
a
t
e
e
h
s
e
c
n
a
l
a
b
r
a
e
y
e
h
t
r
o
f
s
s
o
l
/
t
fi
o
r
p
f
o
e
r
a
h
S
h
t
r
o
w
t
e
N
)
e
r
o
r
c
`
(
l
o
t
e
b
a
t
u
b
i
r
t
t
a
-
#
#
-
#
-
$
&
-
-
-
2
2
2
2
2
1
1
5
5
5
1
0
0
0
5
.
0
0
0
5
.
0
0
0
5
.
0
0
0
3
.
0
0
5
2
.
8
1
6
2
.
3
3
3
3
.
1
7
7
4
.
8
5
2
4
.
5
6
9
3
.
-
d
e
t
a
d
i
l
o
s
n
o
c
t
o
n
s
i
e
c
n
e
u
fl
n
i
e
r
u
t
n
e
v
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
e
h
t
y
h
w
n
o
s
a
e
R
n
o
i
t
p
i
r
c
s
e
D
e
r
e
h
t
w
o
h
f
o
i
t
n
a
c
fi
n
g
i
s
s
i
f
o
d
n
e
t
x
E
)
%
i
(
g
n
d
o
h
l
.
4
2
0
1
e
r
u
t
n
e
v
)
e
r
o
r
c
`
(
f
o
t
n
u
o
m
A
n
i
t
n
e
m
t
s
e
v
n
I
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
0
5
d
n
e
r
a
e
y
l
d
e
h
s
e
r
a
h
s
f
o
.
o
N
y
n
a
p
m
o
c
e
h
t
y
b
i
t
n
o
j
/
e
t
a
i
c
o
s
s
a
n
i
e
h
t
n
o
e
r
u
t
n
e
v
e
h
t
f
o
s
e
r
a
h
s
0
0
0
5
5
4
,
0
0
0
5
2
,
;
t
r
a
p
e
b
a
i
r
a
v
l
g
n
i
t
r
o
p
e
R
*
y
c
n
e
r
r
u
c
d
e
t
a
i
c
o
s
s
a
s
a
w
e
r
u
t
n
e
V
e
h
t
h
c
i
h
w
n
o
e
t
a
D
i
t
n
o
J
r
o
e
t
a
i
c
o
s
s
A
d
e
r
i
u
q
c
a
r
o
d
e
t
i
d
u
a
t
s
e
t
a
L
t
e
e
h
s
e
c
n
a
l
a
b
e
t
a
d
R
U
E
7
0
0
2
,
2
l
i
r
p
A
,
1
3
r
e
b
m
e
c
e
D
1
0
0
.
0
0
0
.
7
2
6
6
.
0
0
0
.
.
8
0
0
4
3
-
.
0
0
0
5
3
-
0
4
9
.
0
4
9
.
,
8
0
9
2
0
4
7
4
,
,
1
,
2
4
7
3
4
6
8
,
-
,
2
4
7
3
4
6
8
,
,
0
0
0
0
0
0
5
6
,
,
0
0
5
k
c
o
t
s
0
0
4
2
,
0
5
2
l
a
t
i
p
a
c
e
h
t
f
o
t
r
a
p
d
e
x
fi
m
u
m
n
m
e
h
t
i
i
f
o
N
X
M
7
0
0
2
,
2
l
i
r
p
A
n
w
o
n
k
n
U
P
B
G
R
U
E
P
B
G
D
A
C
D
A
C
R
N
I
R
N
I
R
N
I
R
N
I
7
0
0
2
,
2
l
i
r
p
A
7
0
0
2
2
l
i
r
p
A
1
0
0
2
8
1
y
a
M
-
7
1
0
2
,
0
3
h
c
r
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
8
1
0
2
,
8
1
y
a
M
1
1
0
2
,
1
3
y
a
M
,
1
3
r
e
b
m
e
c
e
D
,
1
3
r
e
b
m
e
c
e
D
,
1
3
h
c
r
a
M
,
0
3
e
n
u
J
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
-
-
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
c
i
v
r
e
S
t
i
d
e
r
C
&
l
a
t
i
p
a
C
n
a
h
s
u
h
B
.
p
r
o
C
n
o
r
I
i
m
u
n
n
e
l
l
i
M
w
e
N
d
e
t
i
i
m
L
y
g
r
e
n
E
n
a
h
s
u
h
B
c
n
I
c
e
b
é
u
Q
4
3
6
0
-
6
3
3
9
d
e
t
i
i
i
l
m
L
e
t
a
v
i
r
P
s
g
n
d
o
H
&
t
i
d
e
r
C
r
a
h
a
w
a
J
d
e
t
i
i
m
L
s
e
i
r
o
t
c
a
r
f
e
R
i
k
a
s
o
r
K
L
R
T
.
.
V
B
d
n
a
l
r
e
d
e
N
l
a
a
t
S
n
a
m
r
e
p
p
u
W
d
e
t
i
i
m
L
c
e
s
b
a
F
d
e
t
i
i
m
L
B
S
S
I
.
.
i
V
B
e
i
t
a
n
b
m
o
C
d
u
o
h
r
e
d
n
O
s
l
a
W
t
e
G
i
7
2
y
t
i
t
n
E
e
h
t
f
o
e
m
a
N
.
o
N
.
l
S
.
.
V
C
e
D
.
.
A
S
a
d
e
m
i
i
t
l
u
M
n
a
G
s
n
e
v
o
g
o
o
H
8
2
a
t
h
e
M
n
a
m
A
4
6
3
9
0
0
0
0
:
I
N
D
r
o
t
c
e
r
i
D
-
/
d
s
r
o
o
p
a
K
k
a
p
e
e
D
7
5
9
2
6
1
0
0
:
I
N
D
r
o
t
c
e
r
i
D
-
/
d
s
l
i
a
g
e
L
f
e
h
C
&
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
)
e
c
n
a
i
l
p
m
o
C
&
e
t
a
r
o
p
r
o
C
(
r
e
c
ffi
O
.
K
m
a
s
e
e
h
t
a
v
r
a
P
-
/
d
s
d
e
t
a
i
t
i
n
i
s
a
w
6
1
0
2
1
2
9
5
1
:
S
C
A
9
8
9
4
0
0
0
0
:
I
N
D
ff
o
h
w
u
a
l
B
r
e
t
e
P
2
7
8
8
2
7
7
0
:
I
N
D
r
o
t
c
e
r
i
D
-
/
d
s
e
e
j
r
e
t
t
a
h
C
k
i
h
s
u
o
K
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
-
/
d
s
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
&
i
r
a
e
y
e
h
t
g
n
i
r
u
d
d
o
s
r
o
d
e
t
a
d
u
q
l
i
i
l
n
e
e
b
e
v
a
h
h
c
i
h
w
s
e
r
u
t
n
e
v
t
n
o
j
i
r
o
s
e
t
a
i
c
o
s
s
a
f
o
s
e
m
a
N
d
t
L
e
t
P
)
a
i
s
A
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
d
t
L
t
v
P
)
a
d
n
I
(
i
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
d
e
t
i
m
L
i
y
n
a
p
m
o
C
)
d
n
a
l
i
a
h
T
(
l
s
e
a
S
k
r
o
Y
d
t
L
)
y
t
P
(
)
A
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
i
d
t
L
y
t
P
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
d
e
t
i
i
m
L
s
e
i
r
o
t
c
a
r
f
e
R
i
k
a
s
o
r
K
L
R
T
i
g
n
i
r
e
e
n
g
n
E
k
r
o
Y
T
P
d
t
L
e
t
P
t
e
n
d
e
R
d
t
L
.
o
C
)
i
a
h
g
n
a
h
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
k
r
o
Y
d
e
t
i
m
L
i
.
o
C
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
o
a
d
g
n
Q
i
d
e
t
i
m
L
i
.
e
t
P
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
d
e
t
i
i
m
L
s
n
o
i
t
u
o
S
l
l
e
e
t
S
n
o
i
t
c
u
r
t
s
n
o
C
C
S
V
T
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
e
n
i
l
i
e
p
P
R
S
B
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
t
a
p
n
T
n
o
f
A
l
i
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
i
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
&
5
0
6
3
8
0
3
0
:
I
N
D
n
a
r
d
n
e
r
a
N
-
/
d
s
.
V
.
T
1
9
0
8
4
5
0
0
:
I
N
D
r
o
t
c
e
r
i
D
t
t
a
h
B
P.
.
O
-
/
d
s
n
a
s
a
v
i
n
i
r
S
a
k
i
l
l
a
M
n
a
r
a
k
e
s
a
r
d
n
a
h
C
.
N
-
/
d
s
-
/
d
s
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
l
a
w
a
r
g
A
h
b
a
r
u
a
S
8
5
5
4
4
1
2
0
:
I
N
D
r
o
t
c
e
r
i
D
-
/
d
s
2
2
0
7
3
0
0
0
:
I
N
D
r
o
t
c
e
r
i
D
9
1
0
2
,
5
2
l
i
r
p
A
,
i
a
b
m
u
M
3
6
8
1
2
1
0
0
:
I
N
D
n
a
m
r
i
a
h
C
a
m
r
a
h
S
.
K
.
V
r
o
t
c
e
r
i
D
8
8
0
9
4
4
2
0
:
I
N
D
-
/
d
s
/
e
t
a
i
c
o
s
s
a
t
c
e
r
i
d
n
i
n
a
o
s
l
a
s
i
i
i
e
r
u
t
n
e
v
t
n
o
j
/
e
t
a
i
c
o
s
s
a
n
a
f
o
y
r
a
d
i
s
b
u
s
&
e
r
u
t
n
e
v
t
n
o
j
/
e
t
a
i
c
o
s
s
a
t
c
e
r
i
d
n
i
i
n
a
o
s
l
a
s
i
i
y
r
a
d
i
s
b
u
s
a
f
o
e
r
u
t
n
e
v
t
n
o
j
/
e
t
a
i
c
o
s
s
a
i
,
i
e
m
g
e
r
S
A
d
n
I
e
h
t
r
e
d
n
U
y
t
i
t
n
e
e
h
t
f
o
l
o
r
t
n
o
c
e
h
t
r
e
v
o
e
c
n
e
u
fl
n
i
t
n
a
c
fi
n
g
i
s
i
s
s
e
l
s
i
e
r
e
h
t
s
a
e
r
u
t
n
e
v
t
n
o
i
j
s
a
d
e
r
e
d
i
s
n
o
c
d
a
e
t
s
n
i
,
e
k
a
t
s
%
0
5
n
a
h
t
e
r
o
M
i
g
n
k
a
m
n
o
i
s
i
c
e
d
l
a
i
c
n
a
n
fi
d
n
a
l
a
n
o
i
t
a
r
e
p
o
r
e
v
o
e
c
n
e
u
fl
n
i
t
n
a
c
fi
n
g
i
s
i
s
a
h
d
n
a
l
a
t
i
p
a
c
e
r
a
h
s
l
a
t
o
t
e
h
t
f
o
%
0
2
n
a
h
t
e
r
o
m
s
l
o
r
t
n
o
C
l
a
t
i
p
a
c
e
r
a
h
s
l
a
t
o
t
e
h
t
f
o
%
0
2
n
a
h
t
e
r
o
m
s
l
o
r
t
n
o
C
s
n
o
i
s
i
c
e
d
y
c
i
l
o
p
g
n
i
t
a
r
e
p
o
d
n
a
l
a
i
c
n
a
n
fi
e
h
t
n
o
e
c
n
e
u
fl
n
i
t
n
a
c
fi
n
g
i
s
n
i
I
,
e
d
o
C
y
c
t
p
u
r
k
n
a
B
d
n
a
y
c
n
e
v
o
s
n
l
I
e
h
t
r
e
d
n
u
)
P
R
C
I
(
l
s
s
e
c
o
r
p
n
o
i
t
u
o
s
e
r
y
c
n
e
v
o
s
n
l
i
e
t
a
r
o
p
r
o
c
s
a
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
d
e
r
e
d
i
s
n
o
c
t
o
N
l
e
b
a
l
i
a
v
a
t
o
n
s
i
n
o
i
t
a
m
r
o
f
n
i
l
a
i
c
n
a
n
fi
s
a
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
d
e
r
e
d
i
s
n
o
c
t
o
N
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
l
a
i
r
e
t
a
m
m
i
e
r
a
e
c
n
e
h
d
n
a
t
n
a
c
fi
n
g
i
s
i
i
t
o
n
e
r
a
s
e
n
a
p
m
o
c
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
T
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
d
e
r
e
d
i
s
n
o
c
t
o
n
e
c
n
e
h
d
n
a
s
e
i
c
i
l
o
p
g
n
i
t
a
r
e
p
o
d
n
a
l
a
i
c
n
a
n
fi
r
e
v
o
l
o
r
t
n
o
c
o
N
l
n
o
i
t
a
u
c
l
a
c
r
o
f
d
e
r
e
d
i
s
n
o
c
n
e
e
b
s
a
h
9
1
0
2
,
1
3
h
c
r
a
M
n
o
s
a
e
t
a
r
g
n
i
s
o
C
l
l
a
t
i
p
a
c
e
r
a
h
s
t
u
o
h
t
i
i
w
p
h
s
r
e
n
t
r
a
P
e
r
u
t
n
e
v
t
n
o
i
j
n
o
i
t
a
d
u
q
i
i
l
n
i
i
e
r
a
s
e
n
a
p
m
o
C
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
s
e
t
o
N
1
2
3
4
5
@
#
#
#
*
*
*
&
$
160
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
ANNEXURE 7
Companies that have become/ceased to be Company’s Subsidiaries
or Associate Companies (including Joint Venture Companies)
The names of companies which have become Subsidiaries or Associate Companies (including Joint Venture Companies) during the year:
Tata Steel BSL Limited*
Bhushan Steel (Orissa) Limited
Bhushan Steel (South) Limited
Bhushan Steel Madhya Bharat Limited
Bhushan Steel (Australia) PTY Ltd.
Bowen Energy PTY Ltd.
Bowen Coal PTY Ltd.
Bowen Consolidated PTY Ltd.
Creative Port Development Private Limited
Subarnarekha Port Private Limited
British Steel Trading Limited
Sl. No. Name of the Company
Subsidiary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Associate
1.
2.
3.
Joint Venture
1.
Bhushan Energy Limited**
Bhushan Capital & Credit Services Private Limited
Jawahar Credit & Holdings Private Limited
Andal East Coal Company Private Limited ***
* Earlier known as Bhushan Steel Limited. The name change was effective November 27, 2018
** Under CIRP Process of IBC
*** Under liquidation
The names of companies which have ceased to become Subsidiaries or Associate Companies (including Joint Venture Companies) during the year:
Sl. No. Name of the Company
Subsidiary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Tata Steel International (Thailand) Limited
Kalzip GmbH
Blume Stahlservice GmbH
Corus Building Systems Bulgaria AD
TSIA Holdings (Thailand) Limited
Kalzip India Private Limited
Tata Steel Cote D’ Ivoire S.A
Kalzip Asia Pte Limited
Kalzip FZE
Kalzip GmbH
Kalzip Italy SRL
Kalzip Limited
Kalzip Spain S.L.U.
Tata Steel International Hellas SA
Corus Aluminium Verwaltungsgesellschaft Mbh
Black Ginger 461 (Proprietary) Ltd
Sedibeng Iron Ore Pty. Ltd.
NatSteel Trade International (Shanghai) Company Ltd.
161
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 INFORMATION ON SUBSIDIARIES, ETC. | SECRETARIAL AUDIT REPORT
York Transport Equipment (Asia) Pte Ltd
York Transport Equipment (India) Private Limited
York Transport Equipment Pty Ltd
York Sales (Thailand) Company Limited
York Transport Equipment (SA) (Pty) Ltd
Rednet Pte Ltd
PT York Engineering
YTE Special Products Pte. Limited
Qingdao YTE Special Products Co. Limited
York Transport Equipment (Shanghai) Co. Ltd
TRL Krosaki Refractories Limited
Sl. No. Name of the Company
Associate
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Joint Venture
1.
2.
3.
TVSC Construction Steel Solutions Limited
Afon Tinplate Company Limited
BSR Pipelines Services Limited
Mumbai
April 25, 2019
On behalf of the Board of Directors
sd/-
N. CHANDRASEKARAN
Chairman
DIN: 00121863
162
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
ANNEXURE 8
Form No. MR-3
Secretarial Audit Report for the Financial Year Ended March 31, 2019
Pursuant to section 204 (1) of the Companies Act, 2013
[Read with rule no. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members
Tata Steel Limited
We have conducted the secretarial audit of the compliance of
applicable statutory provisions and the adherence to good corporate
practices by Tata Steel Limited (hereinafter called the Company).
Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts/statutory
compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute
books, forms and returns filed and other records maintained by the
Company, the information provided by the Company, its officers,
agents and authorised representatives during the conduct of
secretarial audit, the explanations and clarifications given to us and
the representations made by the Management, we hereby report that
in our opinion, the Company has, during the audit period covering
the financial year ended on March 31, 2019, generally complied
with the statutory provisions listed hereunder and also that the
Company has proper Board processes and compliance mechanism
in place to the extent, in the manner and subject to the reporting
made hereinafter:
We have examined the books, papers, minute books, forms and
returns filed and other records made available to us and maintained
by the Company for the financial year ended on March 31, 2019
according to the provisions of:
(i)
(ii)
The Companies Act, 2013
made thereunder;
(‘the Act’) and
the
rules
The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the
rules made thereunder;
(iii)
The Depositories Act, 1996 and the Regulations and Bye-laws
framed thereunder;
(iv)
Foreign Exchange Management Act, 1999 and the rules
and regulations made thereunder to the extent of Foreign
Direct Investment, Overseas Direct Investment and External
Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed under the
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’)
(a)
The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011;
(b)
(c)
(d)
(e)
(f )
(g)
(h)
The Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015;
The Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2009 and The
Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018 and
amendments from time to time;
The Securities and Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014; (Not applicable to
the Company during the audit period)
The Securities and Exchange Board of India (Issue and
Listing of Debt Securities) Regulations, 2008;
The Securities and Exchange Board of India (Registrars
to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;
(Not applicable to the Company during the audit period)
The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009; (Not applicable to the
Company during the audit period) and
The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998; The Securities and Exchange
Board of India (Buyback of Securities) Regulations, 2018;
(Not applicable to the Company during the audit period)
(vi) Other laws applicable specifically to the Company namely:
1.
2.
3.
4.
5.
The Mines Act, 1952 and
made thereunder.
the
rules,
regulations
Mines and Minerals (Development & Regulation) Act, 1957
and the rules made thereunder.
Air (Prevention and Control of Pollution) Act, 1981 and the
rules and standards made thereunder.
Water (Prevention and Control of Pollution) Act, 1974 and
Water (Prevention and Control of Pollution) Rules, 1975
Environment Protection Act, 1986 and
notifications issued thereunder.
the
rules,
6.
Factories Act, 1948 and allied State Laws.
163
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
We have also examined compliance with the applicable clauses
of the following:
(i)
(j)
Secretarial Standards issued by The Institute of Company
Secretaries of India with respect to board and general meetings.
The Listing Agreements entered into by the Company with
BSE Limited and National Stock Exchange of India Limited
read with the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review, the Company has complied with the
provisions of the Act, Rules, Regulations, Guidelines, standards, etc.
mentioned above.
the
year
During
respect of
appointment/cessation of Directors could not be filed due to
technical error at MCA.
forms DIR-12
certain
in
We further report that:
The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. The changes in the composition of the Board
of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.
4.
Adequate notice was given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance for meetings other than those held at
shorter notice, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the
meeting and for meaningful participation at the meeting.
Decisions at the Board Meetings were taken unanimously.
We further report that there are adequate systems and processes
in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
We further report that during the audit period the Company had
following events which had bearing on the Company’s affairs in
pursuance of the above referred laws, rules, regulations, guidelines,
standards, etc.
1.
2.
3.
The Committee of Directors of the Company by circular
resolution-CR No. 32, dated March 1, 2019, approved the
allotment of 43,150 – 9.8359% Unsecured, Redeemable, Rated,
Listed, Non-Convertible Debentures of face value of `10,00,000
each, aggregating `4,315 crore (‘NCDs’) with ISIN INE081A08223.
These NCDs are listed and traded on BSE Limited.
The Company has redeemed 9.15% NCDs of Series
I
(ISIN INE081A08199) aggregating `500 crore on the due date,
January 24, 2019.
The following shares, earlier kept in abeyance were allotted to
the Shareholders during Fiscal 2019:
• 4,164 Fully Paid Ordinary Shares of face value `10 each were
allotted to the shareholders whose shares were kept in
164
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
5.
6.
7.
SECRETARIAL AUDIT REPORT
abeyance in the Rights Issue of 2018. The details for the same
are as follows:
− 324 Fully Paid Ordinary Shares allotted on July 27, 2018
− 3,840
Fully Paid Ordinary
allotted on
Shares
December 18, 2018
• 2,080 Partly Paid Ordinary Shares of `10 each (`2.504 paid-up)
were allotted to the shareholders whose shares were kept in
abeyance in the Rights Issue of 2018. The details for the same
are as follows:
− 162 Partly Paid Ordinary Shares allotted on July 27,2018
− 1,918 Partly Paid Ordinary
allotted on
Shares
December 18, 2018
• 701 Ordinary Shares of `10 each were allotted to the
shareholders whose shares were kept in abeyance in the
Rights Issue of 2007. The details for the same are as follows:
− 26 Ordinary Shares allotted on December 18, 2018
− 675 Ordinary Shares allotted on March 27, 2019
The Company through its wholly-owned subsidiary, Bamnipal
Steel Limited completed the acquisition of controlling stake of
72.65% in Tata Steel BSL Limited (formerly known as Bhushan
Steel Limited), pursuant to the Resolution Plan as approved
by National Company Law Tribunal vide its Order dated
May 15, 2018, under Corporate Insolvency and Resolution
Process of the Insolvency and Bankruptcy Code, 2016.
Further, during the year, the Company acquired 1070,00,00,000 –
11.09% Non-Convertible Redeemable Preference Shares of face
value `10 each, aggregating to `10,700 crore, in two tranches
and 900,00,00,000 – 8.89% Optionally Convertible Redeemable
Preference Shares of face value `10 each, aggregating to `9,000
crore, in two tranches, of Tata Steel BSL Limited.
On March 22, 2019, the Company acquired 25,00,00,000, 12.5%
Non-Convertible Redeemable Preference Shares of TRF Limited
on private placement basis aggregating to `250 crore.
On March 28, 2019, the Company acquired 27,97,000 Equity
Shares of Tata Metaliks Limited at a price of `642 per Equity
Share aggregating to `179,56,74,000 and 34,92,500 Warrants
at a price of `642 per Warrant, with a right exercisable by the
Warrant holder to subscribe for one equity share per Warrant of
face value of `10 each, aggregating to `224,21,85,000 (25% paid
on application).
On January 28, 2019, T S Global Holdings Pte. Ltd. (TSGH), an
indirect wholly-owned subsidiary of the Company, executed
definitive agreements to divest its entire equity stake held in
NatSteel Holdings Pte. Ltd (100%) and Tata Steel (Thailand)
Public Company Ltd (67.9%) to a company in which 70% equity
shares will be held by an entity controlled by HBIS Group Co., Ltd
(HBIS) and the balance 30% will be held by TSGH.
8.
On September 22, 2018, the Company, as a part of strategy
to grow in long products, executed definitive agreements for
acquisition of steel business of Usha Martin Limited (‘UML’),
a special steel and wire rope manufacturer, through a slump
sale on a going concern basis. Tata Sponge Iron Limited (TSIL)
is an indirect subsidiary of the Company (54% shareholding).
On October 24, 2018, the Company extended support for
TSIL’s entry into steel business and identified it as the strategic
vehicle for acquisition of steel business of UML. On April 9, 2019,
TSIL completed the acquisition of steel business undertaking
including captive power plants, for a cash consideration payable
to UML of `4,094 crore, which is subject to further hold backs
of `640 crore, pending transfer of some of the assets including
mines and certain land parcels.
9.
On September 18, 2018, the Company completed the
acquisition of 51% equity stake in Creative Port Development
Private Limited.
10.
On June 30, 2018, the Company and thyssenkrupp AG signed
definitive agreements to combine the European Steel Business
in a 50:50 joint venture. This follows the signing of Memorandum
of Understanding in September 2017. Only after completion
of the JV process, thyssenkrupp Steel Europe and Tata Steel in
Europe will be integrated as one company.
For Parikh & Associates
Company Secretaries
sd/-
P. N. PARIKH
Partner
FCS No.: 327 CP No.: 1228
Place: Mumbai
Date: April 25, 2019
This Report is to be read with our letter of even date which is annexed
as Annexure A and Forms an integral part of this report.
ANNEXURE A
To,
The Members
Tata Steel Limited
Our report of even date is to be read along with this letter.
1.
2.
3.
4.
5.
6.
Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on
these secretarial records based on our audit.
We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records.
We believe that the process and practices, we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
Where ever required, we have obtained the Management Representation about the Compliance of laws, rules and regulations and
happening of events, etc.
The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management.
Our examination was limited to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which
the management has conducted the affairs of the Company.
Place: Mumbai
Date: April 25, 2019
For Parikh & Associates
Company Secretaries
sd/-
P. N. PARIKH
Partner
FCS No.: 327 CP No.: 1228
165
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 EXTRACT OF ANNUAL RETURN
ANNEXURE 9
Form No. MGT 9
Extract of Annual Return as on March 31, 2019
Pursuant to Section 92(3) of the Companies Act, 2013
[Read with Rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. Registration and other details
CIN
Registration Date
Name
Category/Sub-category of the Company
Registered office address
Contact details
Whether listed company – Yes/No
Registrars and Transfer Agent
Name
Address
Contact details
L27100MH1907PLC000260
August 26, 1907
Tata Steel Limited
Public listed company having share capital
Bombay House, 24 Homi Mody Street, Fort, Mumbai - 400 001
Phone No. +91 22 6665 8282, Fax No. +91 22 6665 7724
Yes
TSR Darashaw Limited
6-10, Haji Moosa Patrawala Industrial Estate, 20,
Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011
Phone No. +91 22 6656 8484, Fax No. +91 22 6656 8494
II. Principal Business Activities of the Company
All the business activities contributing 10% or more of the total turnover of the Company shall be stated.
Sl. No. Name and Description of main products
1
Manufacture of basic iron and steel
NIC Code of the Products
241
% to total turnover of the Company
89.64%
III. Particulars of Holding, Subsidiary and Associate Companies
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
1.
2.
3.
4.
5.
6.
7.
8.
9.
ABJA Investment Co. Pte Ltd.
22 Tanjong Kling Road, Singapore 628048
Adityapur Toll Bridge Company Limited
Aiada Vikash Bhawan, Adityapur, Jamshedpur - 831 013
CIN: U45201JH1996PLC007124
Tata Steel Special Economic Zone Limited
5th Floor, Zone C/2, Fortune Towers, Chandrasekharpur, Bhubaneswar - 751 023
CIN: U45201OR2006PLC008971
The Indian Steel & Wire Products Ltd
Flat 7 D & E, 7th Floor, Everest House, 46 C Chowringhee Road, Kolkata - 700 071
CIN: U27106WB1935PLC008447
Jamshedpur Utilities & Services Company Limited
Sakchi Boulevard Road, Northerntown, Bistupur, Jamshedpur - 831 001
CIN: U45200JH2003PLC010315
Haldia Water Management Limited
Shakti Palace, Plot No 492 (Old) & 784 (New), 2nd Floor, Mouza, Khanjanchak Haldia - 721 602, West Bengal
CIN: U74140WB2008PLC126534
Kalimati Global Shared Services Limited
1st Floor, Tata Centre, 43 Jawaharlal Nehru Road, Kolkata - 700 071
CIN: U74999WB2018PLC224208
Mohar Export Services Pvt Ltd
Bank of Baroda Bldg, Bombay Samachar Marg, Mumbai- 400 001,
CIN: U51900MH1988PTC049518
NatSteel Asia Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
Holding (%)
100.00
88.50
100.00
95.01
100.00
60.00
100.00
66.46
100.00
166
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
TS Asia (Hong Kong) Ltd.
Room 807, 8/F, Tower 1, Enterprise Square 1, No. 9 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong
Rujuvalika Investments Limited
Bombay House 3rd Flr, 24 Homi Mody Street, Mumbai - 400 001
CIN: U67120MH1988PLC049872
T S Alloys Limited
N-3/24, IRC Village, Nayapalli, Bhubaneswar - 751 015 (Odisha)
CIN: U27109OR2004PLC009683
Tata Korf Engineering Services Ltd
Tandem Apartment, 3rd Floor, Flat No.14, 52E, Ballygunge, Circular Road, Kolkata - 700 019
CIN: U74210WB1985PLC039675
Tata Metaliks Ltd.
Tata Centre, 10th Floor, 43, J L Nehru Road, Kolkata - 700 071
CIN: L27310WB1990PLC050000
Tata Sponge Iron Limited
P.O. Joda, Dist- Keonjhar, Odisha - 758 034
CIN: L27102OR1982PLC001091
TSIL Energy Limited
Tata Sponge Administrative Building, Bileipada, P.O. Baneikala, Odisha - 758 038
CIN: U40109OR2012PLC016232
Tata Steel (KZN) (Pty) Ltd.
22 Bronze Bar Road, Alton North, Richards Bay-3900, South Africa
T Steel Holdings Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
T S Global Holdings Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
Orchid Netherlands (No.1) B.V.
Wenckebachstraat 1, 1951 Jz, Velsen-Noord, Netherlands
NatSteel Holdings Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
Easteel Services (M) Sdn. Bhd.
Suite 6.1A, Level 6, Menara Pelangi, Jalan Kuning, Taman Pelangi, 80400 Johor Bahru, Johor, Malaysia
Eastern Steel Fabricators Philippines, Inc.
212 Barrio Bagbaguin, Meycauayan, Bulacan, Philippines
NatSteel (Xiamen) Ltd.
No. 19, Jiangang Road, Haicang South Industrial District, Xiamen, Fujian Province, People’s Republic of China,
Postcode 361026
NatSteel Recycling Pte Ltd.
22 Tanjong Kling Road, Singapore 628048
NatSteel Trade International Pte. Ltd.
22, Tanjong Kling Road, Singapore 628048
NatSteel Vina Co. Ltd.
Luu Xa, Cam Gia Ward, Thai Nguyen City, Thai Nguyen Province, Vietnam
The Siam Industrial Wire Company Ltd.
14th Floor, Rasa Tower, 555 Phaholyothin Road, Kwaeng Chatuchak, Khet Chatuchak, Bangkok 10900 Thailand
TSN Wires Co. Ltd.
14th Floor, Rasa Tower, 555 Phaholyothin Road, Kwaeng Chatuchak, Khet Chatuchak, Bangkok 10900 Thailand
Tata Steel Europe Limited
30 Millbank, London, SW1P 4WY
Apollo Metals Limited
1001, 14th Avenue, Bethlehem, PA 18018-0045, USA
Automotive Laser Technologies Limited
30 Millbank, London, SW1P 4WY
Beheermaatschappij Industriele Produkten B.V.
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Bell & Harwood Limited
30 Millbank, London, SW1P 4WY
100.00
100.00
100.00
100.00
55.06
54.50
100.00
90.00
100.00
100.00
100.00
100.00
100.00
67.00
100.00
100.00
100.00
56.50
100.00
60.00
100.00
100.00
100.00
100.00
100.00
167
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
EXTRACT OF ANNUAL RETURN
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
Blastmega Limited
30 Millbank, London, SW1P 4WY
Bore Samson Group Limited
30 Millbank, London, SW1P 4WY
Bore Steel Limited
30 Millbank, London, SW1P 4WY
British Guide Rails Limited
30 Millbank, London, SW1P 4WY
British Steel Corporation Limited
30 Millbank, London, SW1P 4WY
British Steel Directors (Nominees) Limited
30 Millbank, London, SW1P 4WY
British Steel Engineering Steels (Exports) Limited
30 Millbank, London, SW1P 4WY
British Steel Nederland International B.V.
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
British Steel Service Centres Limited
30 Millbank, London, SW1P 4WY
British Tubes Stockholding Limited
30 Millbank, London, SW1P 4WY
C V Benine
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
C Walker & Sons Limited
30 Millbank, London, SW1P 4WY
Catnic GmbH
Am Leitzenbach 16, 74889 Sinsheim, Germany
Catnic Limited
30 Millbank, London, SW1P 4WY
CBS Investissements SAS
Rue Geo Lufbery, Chauny 02301, France
Cogent Power Inc.
845 Laurentian Drive, Burlington, Ontario, Canada L7N 3W7
Tata Steel Mexico SA de CV
Avenida Ing. Armando Birlain Shaffler No 2001 Corporatiave Central Park, Torre 1, 16 Pso C, Col Centro Sur,
Querenturo, Cp 76090 Mexico
Cogent Power Inc.
250 Bishop Avenue, Bridgeport, CT06610, USA
Cogent Power Limited
Orb Works, Stephenson Street, Newport, Gwent, NP19 0RB
Color Steels Limited
30 Millbank, London, SW1P 4WY
Corbeil Les Rives SCI
Rue Decauville, Corbeil Essonnes 91100, France
Corby (Northants) & District Water Company Limited
C/o TSUK, PO Box 101, Weldon Road, Corby, Northamptonshire, NN17 5UA
Cordor (C& B) Limited
30 Millbank, London, SW1P 4WY
Corus CNBV Investments
30 Millbank, London, SW1P 4WY
Corus Cold drawn Tubes Limited
30 Millbank, London, SW1P 4WY
Corus Engineering Steels (UK) Limited
30 Millbank, London, SW1P 4WY
Corus Engineering Steels Holdings Limited
30 Millbank, London, SW1P 4WY
Corus Engineering Steels Limited
30 Millbank, London, SW1P 4WY
168
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
76.92
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
67.30
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
Corus Engineering Steels Overseas Holdings Limited
30 Millbank, London, SW1P 4WY
Corus Engineering Steels Pension Scheme Trustee Limited
17th Floor, 125, Old Broad Street, London EC2N 1AR
Corus Group Limited
30 Millbank, London, SW1P 4WY
Corus Holdings Limited
15 Atholl Crescent, Edinburgh, EH3 8HA
Corus International (Overseas Holdings) Limited
30 Millbank, London, SW1P 4WY
Corus International Limited
30 Millbank, London, SW1P 4WY
Corus International Romania SRL.
Bucaresti, Sector 1, Calea Floreasca, Nr. 169A, Corp A, Campus 10, Etaj 4, Birou 2039-2044, Romania
Corus Investments Limited
30 Millbank, London, SW1P 4WY
Corus Ireland Limited
70 Sir John Rogerson’s Quay, Dublin 2, Ireland
Corus Large Diameter Pipes Limited
30 Millbank, London, SW1P 4WY
Corus Liaison Services (India) Limited
30 Millbank, London, SW1P 4WY
Corus Management Limited
30 Millbank, London, SW1P 4WY
Corus Primary Aluminium B.V.
Wenckebachstraat 1, 1951 j2 Velsen-Noord, Netherlands
Corus Property
30 Millbank, London, SW1P 4WY
Corus Service Centre Limited
30 Millbank, London, SW1P 4WY
Corus Steel Service STP LLC
34, Letter A, 9-th line, V.O., Saint Petersburg, 199004, Business centre ‘Magnus’, Saint Petersburg
Corus Tubes Poland Spolka Z.O.O
Ul. Grabiszynska, Wroclaw 43-234, Poland
Corus UK Healthcare Trustee Limited
30 Millbank, London, SW1P 4WY
Corus Ukraine Limited Liability Company
Office 16, Building 11/23B, Chekhivskiy Provulok/Vorovskogo Street, 01054 Kiev, Ukraine
CPN (85) Limited
30 Millbank, London, SW1P 4WY
Crucible Insurance Company Limited
35/37, Athol Street, Douglas, Isle of Man
Degels GmbH
Königsberger Strasse 25, 41460 Neuss, Germany
Demka B.V.
Wenckebachstraat 1, 1951 J2 Velsen-Noord, Netherlands
DSRM Group Plc.
30 Millbank, London, SW1P 4WY
Esmil B.V.
Wenckebachstraat 1, 1951 J2 Velsen-Noord, Netherlands
Europressings Limited
30 Millbank, London, SW1P 4WY
Firsteel Group Limited
30 Millbank, London, SW1P 4WY
Firsteel Holdings Limited
30 Millbank, London, SW1P 4WY
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
169
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
EXTRACT OF ANNUAL RETURN
91.
92.
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
Fischer Profil GmbH
Waldstrasse 67, 57250 Netphen, Germany
Gamble Simms Metals Limited
Tata Steel Service Centre, Steel House, Bluebell Industrial Estate, Bluebell Avenue, Dublin 12
Grant Lyon Eagre Limited
30 Millbank, London, SW1P 4WY
H E Samson Limited
30 Millbank, London, SW1P 4WY
Hadfields Holdings Limited
30 Millbank, London, SW1P 4WY
Halmstad Steel Service Centre AB
Turbingatan 1, Halmstad, Sweden
Hammermega Limited
30 Millbank, London, SW1P 4WY
Harrowmills Properties Limited
30 Millbank, London, SW1P 4WY
Hille & Muller GmbH
Am Trippelsberg 48, Dusseldorf 40589, Germany
Hille & Muller USA Inc.
Delaware Avenue N.W., Warren, 44485 Ohio, USA
Hoogovens USA Inc.
475 N. Martingale road, Suite 400 Schaumburg, IL 60173 USA
Huizenbezit ‘Breesaap’ B.V.
Wenckebachstraat 1, 1951 J2 Velsen-Noord, Netherlands
Inter Metal Distribution SAS
3 Allee des Barbanniers, 92632 Gennevilliers Cedex, France
Layde Steel S.L.
Eguzkitza, 11, E-48200 Durango, Bizkaia, Spain
Lister Tubes Limited
Tata Steel Service Centre, Steel House, Bluebell Industrial Estate, Bluebell Avenue, Dublin 12
London Works Steel Company Limited
30 Millbank, London, SW1P 4WY
Midland Steel Supplies Limited
30 Millbank, London, SW1P 4WY
Montana Bausysteme AG
Durisolstrasse 11, Villmergen 5612, Switzerland
Naantali Steel Service Centre OY
Rautakatu 5, Naantali 21110, Finland
Nationwide Steelstock Limited
30 Millbank, London, SW1P 4WY
Norsk Stal Tynnplater AS
Habornveien 60, 1630 Gamle Fredrikstad, 0106 Fredrikstad, Norway
Norsk Stal Tynnplater AB
P.O.B. 17544 S-20010 Malmo, Sweden
Orb Electrical Steels Limited
Orb Works, Stephenson Street, Newport, NP19 0RB
Ore Carriers Limited
30 Millbank, London, SW1P 4WY
Oremco Inc.
60 E42 Street, New York 10165, USA
Plated Strip (International) Limited
30 Millbank, London, SW1P 4WY
Precoat International Limited
30 Millbank, London, SW1P 4WY
Precoat Limited
30 Millbank, London, SW1P 4WY
170
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
100.00
100.00
100.00
100.00
62.50
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
119.
120.
121.
122.
123.
124.
125.
126.
127.
128.
129.
130.
131.
132.
133.
134.
135.
136.
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
Rafferty-Brown Steel Co Inc Of Conn.
2711 Centerville Road, Ste 400 Wilmington, 19808 USA
Round Oak Steelworks Limited
30 Millbank, London, SW1P 4WY
Runblast Limited
30 Millbank, London, SW1P 4WY
Runmega Limited
30 Millbank, London, SW1P 4WY
S A B Profiel B.V.
Produktieweg 2, 3401 MG IJsselstein, Netherlands
S A B Profil GmbH
Industriestrasse 13, Niederaula, 36272 Germany
Seamless Tubes Limited
30 Millbank, London, SW1P 4WY
Service Center Gelsenkirchen GmbH
Am Trippelsberg 48, Duesseldorf 40589, Germany
Service Center Maastricht B.V.
P O BOX 3040, 6202 NA Maastricht, Netherlands
Societe Europeenne De Galvanisation (Segal) Sa
Chassee de Ramioul 50, Ivoz Ramet, 4400 Belgium
Staalverwerking en Handel B.V.
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Steel StockHoldings Limited
30 Millbank, London, SW1P 4WY
Steelstock Limited
30 Millbank, London, SW1P 4WY
Stewarts & Lloyds Of Ireland Limited
1 Stokes Place, St Stephen’s Green, Dublin 2, Ireland
Stewarts And Lloyds (Overseas) Limited
30 Millbank, London, SW1P 4WY
Surahammar Bruks AB
Box 201, 735 00, Surahammar, Sweden
Swinden Housing Association Limited
Swinden House, Moorgate, Rotherham, S60 3AR, UK
Tata Steel Belgium Packaging Steels N.V.
Walemstraat 38, Duffel 2570, Belgium
Tata Steel Belgium Services N.V.
Coremansstraat 34, Berchem 2600, Belgium
Tata Steel Denmark Byggesystemer A/S
Kaarsbergs VEJ2, 8400 Ebeltoft, Denmark
Tata Steel Europe Distribution BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Europe Metals Trading BV
Wenckebachstraat 1, 1951 52 Velsen-Noord, Netherlands
Tata Steel France Batiment et Systemes SAS
Rue Geo Lufbery, Chauny 02300, France
Tata Steel France Holdings SAS
3, Allee des Barbanniers, 92632 Gennevilliers Cedex, France
Tata Steel Germany GmbH
Am Trippelsberg 48, Duesseldorf 40589, Germany
Tata Steel IJmuiden BV
Wenckebachstraat 1, Velsen-Noord 1951, JZ Netherlands
Tata Steel International (Americas) Holdings Inc
Wilmington Trust SP Services Inc. 1105 North Market Place, Wilmington, DE 19899, USA
Tata Steel International (Americas) Inc
475 N, Martingale Road, Suite 400, Schaumburg, IL 60173 USA
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
171
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
EXTRACT OF ANNUAL RETURN
147.
148.
149.
150.
151.
152.
153.
154.
155.
156.
157.
158.
159.
160.
161.
162.
163.
164.
165.
166.
167.
168.
169.
170.
171.
172.
173.
Tata Steel International (Canada) Holdings Inc
Dentons Canada LLP, 1 Place Villa Marie, Suite 3900, Montreal, Quebec Canada H3B 4M7
Tata Steel International (Czech Republic) S.R.O
Mala Stepanska 9, 120 Praha 2, Czech Republic
Tata Steel International (Denmark) A/S
Frederiksborgvej 23, 3520 Farum, Denmark
Tata Steel International (Finland) OY
Hitsaajankatu 22, 00810 Helsinki, Finland
Tata Steel International (France) SAS
3, Allee des Barbanniers, 92632 Gennevilliers Cedex, France
Tata Steel International (Germany) GmbH
Am Trippelsberg 48, 40589 Duesseldorf, Germany
Tata Steel International (South America) Representações LTDA
Santiago & Amboulos Advogados, AV. Rio Branco, 45-10 Andar, Grupo 1013 Centro – Rio De Janiero –
RJ CEP 20090-003
Tata Steel International (Italia) SRL
Via G.G. Winckelman 2, Milano 20146, Italy
Tata Steel International (Middle East) FZE
Plot Number B035R02, PO Box 18294, Jebel Ali, Dubai, UAE
Tata Steel International (Nigeria) Limited
Block 69 A. Plot 8, Admiralty Way, Lekki, Phase 1, Lagos, Nigeria
Tata Steel International (Poland) sp Zoo
Ul. Piastowska 7, 40-005 Katowice, Poland
Tata Steel International (Schweiz) AG
Basilea Treuhand AG, Henric-Petri Strasse 6, 4051 Basel, Switzerland
Tata Steel International (Sweden) AB
Barlastgatan 2, 41463 Goteborg, Sweden
Tata Steel International (India) Limited
3rd Floor, One Forbes, Dr, V B Gandhi Marg, Fort, Mumbai 400001
CIN: U74900MH2005PLC151710
Tata Steel International Iberica SA
CL Rosario Pino 14-16 Torre Rioja 28020 Madrid, Spain
Tata Steel Istanbul Metal Sanayi ve Ticaret AS
El Madag Harbiye Mahallesi Cumhuriyet Caddesi, 48 Pegasus Evi kat: 7 Sisli, Istanbul, Turkey 34367
Tata Steel Maubeuge SAS
22, Avenue Abbe Jean de Beco, Louvroil 5970, France
Tata Steel Nederland BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Nederland Consulting & Technical Services BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Nederland Services BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Nederland Star-Frame BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Nederland Technology BV
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Netherlands
Tata Steel Nederland Tubes BV
Souvereinstraat 35, 4903 RH Oosterhout, Netherlands
Tata Steel Netherlands Holdings B.V.
Wenckebachstraat 1, 1951 JZ Velsen-Noord, Ijmuiden Netherlands
Tata Steel Norway Byggsystemer A/S
Roraskogen 2, 3739 Skien, Norway
Tata Steel Sweden Byggsystem AB
Haldelsvagen, 4 30230 Halmstad, Sweden
Tata Steel UK Consulting Limited
30 Millbank, London, SW1P 4WY
172
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
174.
175.
176.
177.
178.
179.
180.
181.
182.
183.
184.
185.
186.
187.
188.
189.
190.
191.
192.
193.
194.
195.
196.
197.
198.
199.
200.
201.
Tata Steel UK Holdings Limited
30 Millbank, London, SW1P 4WY
Tata Steel UK Limited
30 Millbank, London, SW1P 4WY
Tata Steel USA Inc.
475 N Martingale Road, Suite 400, Schaumburg IL 60173, USA
The Newport And South Wales Tube Company Limited
30 Millbank, London, SW1P 4WY
The Stanton Housing Company Limited
30 Millbank, London, SW1P 4WY
The Templeborough Rolling Mills Limited
30 Millbank, London, SW1P 4WY
Thomas Processing Company
Delaware Avenue N.W., Warren, 44485-2699 Ohio, USA
Thomas Steel Strip Corp.
Delaware Avenue N.W., Warren, 44485 2699 Ohio, USA
Toronto Industrial Fabrications Limited
30 Millbank, London, SW1P 4WY
TS South Africa Sales Office Proprietary Limited
Komogelo Suite A1 & B1 Lakefield Avenue, Lakefield, Benoni South Africa
Tulip UK Holdings (No. 2) Limited
30 Millbank, London, SW1P 4WY
Tulip UK Holdings (No. 3) Limited
30 Millbank, London, SW1P 4WY
U.E.S. Bright Bar Limited
30 Millbank, London, SW1P 4WY
UK Steel Enterprise Limited
The Innovation Centre 217 Portobello, Sheffield S1 4DP
UKSE Fund Managers Limited
The Innovation Centre 217 Portobello, Sheffield S1 4DP
Unitol SAS
1 Rue Fernand Raynaud, Corbeil Essonnes 91814, France
Walker Manufacturing And Investments Limited
30 Millbank, London, SW1P 4WY
Walkersteelstock Ireland Limited
Tata Steel Service Centre, Steel House, Bluebell Industrial Estate, Bluebell Avenue, Dublin 12
Walkersteelstock Limited
30 Millbank, London, SW1P 4WY
Westwood Steel Services Limited
30 Millbank, London, SW1P 4WY
Whitehead (Narrow Strip) Limited
30 Millbank, London, SW1P 4WY
British Steel Trading Limited
30 Millbank, London, SW1P 4WY
T S Global Minerals Holdings Pte Ltd.
22 Tanjong Kling Road Singapore 628048
Al Rimal Mining LLC
P O Box 54, Muscat, Sultanate of Oman, Postal Code 100
Kalimati Coal Company Pty. Ltd.
Level 2, 400 Queen Street, Brisbane QLD 4000 I GPO Box 2778, Brisbane QLD 4001
TSMUK Limited
18 Grosvenor Place, London.SW1X 7HS
Tata Steel Minerals Canada Ltd
Park Place, 666 Burrard Street, Suite 1700, Vancouver, BC V6C 2X8
T S Canada Capital Limited
Park Place, 666 Burrard Street, Suite 1700, Vancouver, BC V6C 2X8
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
77.68
100.00
173
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
EXTRACT OF ANNUAL RETURN
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
214.
215.
216.
217.
218.
219.
220.
221.
222.
223.
Tata Steel International (Singapore) Holdings Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
Tata Steel International (Shanghai) Ltd.
Room 2006, No. 568 Hengfeng Road, Zhabei District, 200070, Shanghai, China
Tata Steel International (Singapore) Pte. Ltd.
22 Tanjong Kling Road, Singapore 628048
Tata Steel International (Asia) Limited
Unit 2313-15, 23/F., Bea Tower, Millennium City 5, 418 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong
Tata Steel (Thailand) Public Company Ltd.
555 Rasa Tower 2, 20th Floor, Phaholyothin Road, Chatuchak, Bangkok 10900, Thailand
N.T.S Steel Group Plc.
No. 351, Moo 6, 331 Highway, Hemaraj Chonburi Industrial Estate, Bowin, Sriracha, Chonburi 20230, Thailand
The Siam Construction Steel Co. Ltd.
Plot 1-23, Map Ta Phut Industrial Estate, Amphur Muang, Rayong 21150, Thailand
The Siam Iron And Steel (2001) Co. Ltd.
No. 49 Moo 11, Tambon Bang Khamode, Ampher Ban Mor, Saraburi 18270, Thailand
T S Global Procurement Company Pte. Ltd.
22 Tanjong Kling Road Singapore 628048
ProCo Issuer Pte. Ltd.
22 Tanjong Kling Road Singapore 628048
Tata Steel Odisha Limited
Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001
CIN: U27310MH2012PLC232512
Tata Steel Processing and Distribution Limited
Tata Centre, 43 Chowringhee Road, Kolkata - 700 071
CIN: U27109WB1997PLC084005
Tayo Rolls Limited
3 Circuit House Area (North-East), Road No. 11 PO & PS - Bistupur, Jamshedpur - 831 001
CIN: L27105JH1968PLC000818
The Tata Pigments Limited
Sakchi Boulevard, Jamshedpur - 831 002
CIN: U24100JH1983PLC001836
The Tinplate Company of India Ltd
4, Bankshall Street, Kolkata-700 001
CIN: L2811WB1920PLC003606
Tata Steel Foundation
6th Floor, One Forbes, No. 1, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400 001
CIN: U85300MH2016NPL284815
Jamshedpur Football and Sporting PrivateLimited
6th Floor, One Forbes, No. 1, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400 001
CIN: U92490MH2017PTC297047
Sakchi Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27310MH2018PLC304205
Jugsalai Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27109MH2018PLC304352
Noamundi Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27320MH2018PLC304346
Straight Mile Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27300MH2018PLC304187
Bamnipal Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27310MH2018PLC304494
100.00
100.00
100.00
100.00
67.90
99.76
99.99
99.99
100.00
100.00
100.00
100.00
54.91
100.00
74.96
100.00
100.00
100.00
100.00
100.00
100.00
100.00
174
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Sl. No. Name and address of the Company
Subsidiary Companies (Pursuant to Section 2(87)(ii) of Companies Act, 2013
Holding (%)
224.
225.
226.
227.
228.
229.
230.
231.
232.
233.
234.
235.
236.
237.
Tata Steel BSL Limited
Ground Floor, Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi 110 065
CIN: L74899DL1983PLC014942
Bhushan Steel (Orissa) Limited
Ground Floor, Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi 110 065
CIN: U27100DL2010PLC202028
Bhushan Steel (South) Limited
Ground Floor, Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi 110 065
CIN: U27100DL2010PLC202027
Bhushan Steel Madhya Bharat Limited
Ground Floor, Mira Corporate Suites, Plot No. 1 & 2, Ishwar Nagar, Mathura Road, New Delhi 110 065
CIN: U27100DL2010PLC202026
Bhushan Steel (Australia) PTY Ltd.
Mitchell & Partners, Suite 3 Level 2, 66 Clarence Street, Sydney NSW 2000
Bowen Energy PTY Ltd.
Mitchell & Partners, Suite 3 Level 2, 66 Clarence Street, Sydney NSW 2000
Bowen Coal PTY Ltd.
Mitchell & Partners, Suite 3 Level 2, 66 Clarence Street, Sydney NSW 2000
Bowen Consolidated PTY Ltd.
Mitchell & Partners, Suite 3 Level 2, 66 Clarence Street, Sydney NSW 2000
Bistupur Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27310MH2018PLC304376
Jamadoba Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27109MH2018PLC304486
Dimna Steel Limited
Tarapur Complex, Plot No. F8, MIDC, Tarapur Industrial Area, Palghar, 401 506
CIN: U27209MH2018PLC304623
Bhubaneshwar Power Private Limited
Golden Edifice, 1st Floor, Opp: Visweswaraya Statue, Khairatabad Circle, Hyderabad - 500 004
CIN: U40109TG2006PTC050759
Creative Port Development Private Limited
Tarapur Complex, Plot No. F8, Midc, Tarapur Industrial Area, Palghar, Thane - 401506, Maharashtra
CIN: U63032MH2006PTC234335
Subarnarekha Port Private Limited
MIG-93, Ananthvihar, Phase - 1, Pokhariput, Bhubaneswar, Puri - 751020, Odisha
CIN: U45203OR2008PTC010351
72.65
100.00
100.00
100.00
90.97
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.00
50.4
175
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Sl. No. Name and address of the Company
Associate Companies (Pursuant to Section 2(6) of Companies Act, 2013)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Kalinga Aquatic Ltd
259, Sipasurubali, Puri, Odisha
CIN: U05004OR1989PLC002356
Kumardhubi Fireclay & Silica Works Ltd
Chartered Bank Building, 4, Netaji Subhash Road, Kolkata, West Bengal - 700 001
CIN: U45209WB1915PLC002601
Kumardhubi Metal Casting and Engineering Limited
Xlri Campus, Circuit House, Area, Jamshedpur, Jharkhand - 831 001
CIN: U27100JH1983PLC001890
Strategic Energy Technology Systems Private Limited
24, Bombay House, First Floor, Homi Mody Street, Mumbai - 400 001
CIN: U72900MH2006PTC163193
Tata Construction & Projects Ltd.
6 A Middleton Street, Kolkata - 700 071
TRF Limited.
11, Station Road, Burmamines, Jamshedpur-831 007, Jharkhand
CIN: L74210JH1962PLC000700
TRF Singapore Pte Limited
6 Battery Road, #10-01, Singapore - 049906
TRF Holdings Pte Limited
6 Battery Road, #10-01, Singapore - 049906
Dutch Lanka Trailer Manufactures Limited
Nattandiya Road, Dankotuwa, Sri Lanka
Dutch Lanka Engineering (Private) Limited
No. 575, 1st Floor, Orumix Building, Nawala Road, Rajagiriya, Sri Lanka
Dutch Lanka Trailer LLC
PO Box 453, PC 217, Salalah, Al-Awqdain, Sultanate of Oman
Hewitt Robins International Ltd
Huntingdon Court, Huntingdon Way, Measham, Derbyshire, DE127NQ,U.K
Hewitt Robins International Holdings Ltd
Huntingdon Court, Huntingdon Way, Measham, Derbyshire, DE127NQ,U.K
Malusha Travels Pvt Ltd
Bank of Baroda Bldg, Bombay Samachar Marg, Mumbai - 400 001, Maharashtra
CIN: U63040MH1988PTC049514
European Profiles (M) Sdn. Bhd.
Lot 51, Rawang Industrial Park, Selangor Darul Ehsan, Kualalumpur, Malaysia
Albi Profils SRL
Zone Industrielle D’albi-Jarlard, Rue Lebon, 81000 Albi, France
GietWalsOnderhoudCombinatie B.V.
PO Box 159, 1940, AD Beverwijk
Hoogovens Gan Multimedia S.A. De C.V.
Zaragoza 1300, Sur 6400, Monterrey, 82235, Mexico
ISSB Limited
Corinthian House, 17 Lansdowne Road, Croydon, Greater London, England, CR0 2BX
Wupperman Staal Nederland B.V.
Vlasweg 19, 4782 PW Moerdijk, Netherlands
Fabsec Limited
Cellbeam Ltd., Unit 516, Avenue East, Thorp Arch Estate, Wetherby, West Yorkshire, England, LS237DB
New Millennium Iron Corp.
1000 - 250 2nd Street SW, Calgary AB, Canada
9336-0634 Québec Inc
720-900 BOUL. René-Lévesque Est, Québec, G1R2B5, Canada
Bhushan Energy Limited
Regus, Level S 2, American Plaza, Nehru Place, New Delhi - 110 019
CIN: U40105DL2005PLC140748
Bhushan Capital & Credit Services Private Limited
Cabin No. 1, 1205, 89 Hemkunth Chamber, Nehru Place, New Delhi - 110 019
CIN: U74899DL1993PTC054636
176
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
EXTRACT OF ANNUAL RETURN
Holding (%)
30.00
27.78
49.31
25.00
27.19
34.11
100.00
100.00
100.00
100.00
70.00
100.00
100.00
33.23
20.00
30.00
50.00
50.00
50.00
30.00
25.00
26.18
33.33
47.71
42.58
Sl. No. Name and address of the Company
Associate Companies (Pursuant to Section 2(6) of Companies Act, 2013)
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
Jawahar Credit & Holdings Private Limited
Cabin No. 1, 1205, 89 Hemkunth Chamber, Nehru Place, New Delhi - 110 019
CIN: U74899DL1993PTC054635
Himalaya Steel Mill Services Private Limited
Ground Floor, Rings & Agrico Building Armoury Road Northern Town, Jamshedpur, Jharkhand, 831001
CIN: U74900JH2009PTC000689
mjunction services limited
Tata Centre,43 J L Nehru Road, Kolkata - 700 071
CIN: U00000WB2001PLC115841
S & T Mining Company Private Limited
Tata Centre, 1st Floor, 43, J. L. Nehru Road, Kolkata - 700 071 (W.B.)
CIN: U13100WB2008PTC129436
Tata BlueScope Steel Private Limited
Metrolpolitan, Survey No. 21, Final Plot No. 27, Wakdewadi, Shivaji Nagar, Pune - 411 005
CIN: U45209PN2005PTC020270
BlueScope Lysaght Lanka (Pvt) Ltd
No. 26 & 27, Sapugaskanda Industrial Estate, Pattiwila Road, Sapugaskanda
Tata NYK Shipping Pte Ltd.
11 Keppel Road, #10-03, Abi Plaza, Singapore – 089057
Tata NYK Shipping (India) Private Limited
1401, PS Srijan Corporate Park, 14th Floor, Tower-1, Block-GP, Sector-V, Saltlake, Kolkata - 700 091 (India)
CIN: U61100WB2007PTC118354
Jamshedpur Continuous Annealing & Processing Company Private Limited
Tata Centre, 43, Jawaharlal Nehru Road, Kolkata - 700 071
CIN: U27310WB2011PTC160845
T M Mining Company Limited
Tata Centre, 43 Jawaharlal Nehru Road, Kolkata - 700 071
CIN: U13100WB2010PLC156401
TM International Logistics Limited
43 J L Nehru Road, Tata Centre, Kolkata - 700 071
CIN: U63090WB2002PLC094134
International Shipping and Logistics FZE
Office No. TPOFCA0140, P O Box 18490, Jebel Ali, Dubai United Arab Emirates
TKM Global China Ltd.
Unit G, Floor 11, Hengji Mansion, No. 99 Huai Hai East Road, Shanghai - 200021, P.R. China
TKM Global GmbH
Spladingstrasse 210, 20097 Hamburg, Germany
TKM Global Logistics Limited
Tata Centre, 43, Jawaharlal Nehru Road, Kolkata - 700 071
CIN: U51109WB1991PLC051941
Industrial Energy Limited
C/O - The Tata Power Company Limited, Corporate Center B, 34 Sant Tukaram Road, Carnac Bunder,
Mumbai - 400 009, Maharashtra, India
CIN: U74999MH2007PLC167623
Jamipol Limited
Namdih Road, Burmamines, Jamshedpur - 831007
CIN: U24111JH1995PLC009020
Nicco Jubilee Park Limited
Jheel Meel, Sector-IV, Salt Lake City, Kolkata, West Bengal - 700 106
CIN: U45201WB2001PLC092842
Medica TS Hospital Private Limited
S-125, Maitri Vihar, P. O. - Rail Vihar, P. S. – Chandrasekharpur, Bhubaneswar - 751 023, Odisha
CIN: U85110OR2014PTC018162
SEZ Adityapur Limited.
Sakchi Boulevard Road, Northern Town, Jamshedpur - 831 005
CIN: U45200JH2006PLC012633
Naba Diganta Water Management Limited
Gn 11-19, Sector-V, Salt Lake, Kolkata - 700 091
CIN: U93010WB2008PLC121573
Holding (%)
39.65
26.00
50.00
50.00
50.00
100.00
50.00
100.00
51.00
74.00
51.00
100.00
100.00
100.00
100.00
26.00
39.78
25.31
26.00
51.00
74.00
177
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 EXTRACT OF ANNUAL RETURN
Sl. No. Name and address of the Company
Associate Companies (Pursuant to Section 2(6) of Companies Act, 2013)
47.
48.
49.
50.
51.
52
53.
54.
Air Products Llanwern Limited
Hersham Place Technology Park, Molesey Road, Walton on Thames Surrey, KT12 4RZ
Laura Metaal Holding B.V.
Rimurgerweg 40, 6471 XX Eygelshoven, Netherlands
Ravenscraig Limited
15 Atholl Crescent, Edinburgh, EH3 8HK, Scotland
Tata Steel Ticaret AS
Cumhuriyet Caddesi No:48 Pegasus Evi Kat:7 Harbiye 34367 Istanbul, Turkey
Texturing Technology Limited
PO Box 22, Texturing Technology Ltd Central Road, Tata Steel Site Margam, Port Talbot, West Glamorgan,
Wales, SA13 2YJ
Hoogovens Court Roll Service Technologies VOF
Wenckebachstraat 1, 1951 Jz Velsen-Noord, Netherlands
Minas De Benga (Mauritius) Limited
C/o Ocorian Corporate Services Ltd, 6th Floor, Tower A, 1 Cybercity, Ebene, Mauritius
Andal East Coal Company Private Limited
37, Shakespeare Sarani, 4th Floor, Kolkata - 700 017
CIN: U10300WB2009PTC138558
Note: Companies listed from Sl. No. 27 to 54 are joint venture companies
Holding (%)
50.00
49.00
33.33
50.00
50.00
50.00
35.00
33.89
IV Share Holding Pattern (Equity Share Capital Breakup as Percentage of Total Equity)
A Fully Paid-Up Equity Shares
i) Category-wise Share Holding
Category of
Shareholders
Sl
No.
(A) Promoters (including Promoter Group)
(1)
(a)
(b)
(c)
(d)
(e)
(f)
Sub-Total (A) (1)
(2)
Indian
Individuals/Hindu Undivided Family
Central Government
State Government(s)
Bodies Corporate
Financial Institutions/Banks
Any Other (Trust)
(a)
Foreign
Individuals
Non-Resident Individuals
Other Individuals
Bodies Corporate
Banks/FI
Qualified Foreign Investor
Any Other (specify)
(b)
(c)
(d)
(e)
(f)
Sub-Total (A) (2)
Total Shareholding of Promoter and
Promoter Group (A) = (A)(1)+(A)(2)
Public Shareholding
(B)
Institutions
(1)
Mutual Funds
(a)
Financial Institutions/Banks
(b)
Central Government
(c)
State Governments(s)
(d)
Venture Capital Funds
(e)
Insurance Companies
(f)
Foreign Institutional Investors
(g)
Foreign Venture Capital Investors
(h)
Any Other (specify)
(i)
Number of shares held (April 1, 2018)
Number of shares held (March 31, 2019)
Electronic
Physical
Total
%
Electronic
Physical
Total
%
% Change
-
-
-
35,98,80,277
-
10,31,460
36,09,11,737
-
-
-
-
-
-
-
36,09,11,737
14,75,65,586
18,95,090
6,83,823
500
-
15,21,05,744
21,61,08,805
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35,98,80,277
-
10,31,460
36,09,11,737
-
-
-
31.95
-
0.09
32.04
-
-
-
35,98,80,601
-
-
35,98,80,601
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36,09,11,737
32.04
35,98,80,601
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35,98,80,601
-
-
35,98,80,601
-
-
-
-
-
-
-
-
-
-
31.95
-
-
31.95
-
-
-
-
-
-
-
-
-
-
-
-
(0.09)
(0.09)
-
-
-
-
-
-
-
35,98,80,601
31.95
(0.09)
26,658
1,60,202
-
1,11,277
-
1,380
16,945
-
14,75,92,244
20,55,292
6,83,823
1,11,777
-
15,21,07,124
21,61,25,750
-
13.10
0.18
0.06
0.01
-
13.50
19.19
-
16,46,08,291
43,13,216
12,17,242
500
-
16,98,31,669
17,18,86,794
-
26,357
1,59,322
-
1,11,277
-
1,230
15,070
-
16,46,34,648
44,72,538
12,17,242
1,11,777
-
16,98,32,899
17,19,01,864
-
14.61
0.40
0.11
0.01
-
15.08
15.26
-
1.51
0.21
0.05
-
-
1.57
(3.93)
-
178
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Number of shares held (April 1, 2018)
Number of shares held (March 31, 2019)
Category of
Sl
No.
Shareholders
(i - 1) Qualified Foreign Investor
(i - 2)
(i - 3)
Foreign Institutional Investors - DR
Foreign Bodies – DR
Foreign Portfolio
Investments – Individual
(i - 5)
Foreign National- DR
(i - 6) Alternate Investment Funds
(i - 7)
Foreign National
(i - 4)
Electronic
-
-
5,66,956
Physical
-
-
-
892
164
1,000
762
-
-
-
-
(i – 8) UTI
15,191
16,387
Total
-
-
5,66,956
892
164
1,000
762
31,578
%
-
-
0.05
-
-
-
-
-
Electronic
-
-
3,23,635
892
164
34,095
2,105
260
Physical
-
-
-
-
-
-
-
16,197
Total
-
-
3,23,635
892
164
34,095
2,105
16,457
%
-
-
0.03
-
-
-
-
-
% Change
-
-
(0.02)
-
-
-
-
-
i
ii
Sub-Total (B) (1)
(2)
(a)
i
ii
(b)
Non-Institutions
Bodies Corporate
Indian
Overseas
Individuals -
Individual shareholders holding
nominal share capital up to `1 lakh
Individual shareholders holding
nominal share capital in
excess of `1 lakh
Any Other
Trusts
IEPF Account
HUF
Clearing Member
LLP/LLP-DR
Qualified Foreign Investor
(c)
i
ii
Iii
Iv
v
(d)
Sub-total (B) (2)
Total Public Shareholding (B) =
(B)(1)+(B)(2)
51,89,44,513
3,32,849
51,92,77,362
46.10
51,22,18,863
3,29,453
51,25,48,316
45.50
(0.60)
1,48,89,046
4,500
2,42,642
-
1,51,31,688
4,500
1.34
-
1,50,18,429
4,500
2,26,070
-
1,52,44,499
4,500
1.35
-
13,41,07,082
1,84,82,698
15,25,89,780
13.55
14,38,58,160
1,54,73,274
15,93,31,434
14.14
0.01
-
0.60
3,23,54,125
18,43,873
3,41,97,998
3.04
2,85,38,493
15,23,841
3,00,62,334
2.67
(0.37)
70,93,589
28,71,968
51,47,726
1,12,34,497
1,52,155
-
20,78,54,688
51,28,424
-
2,740
-
-
-
2,57,00,377
1,22,22,013
28,71,968
51,50,466
1,12,34,497
1,52,155
-
23,35,55,065
1.08
0.25
0.46
1.00
0.01
-
20.73
1,09,08,766
32,58,266
54,84,862
99,38,585
29,49,037
-
21,99,59,098
34,02,549
-
1,973
-
-
-
2,06,27,707
1,43,11,315
32,58,266
54,86,835
99,38,585
29,49,037
-
24,05,86,805
72,67,99,201
2,60,33,226
75,28,32,427
66.83
73,21,77,961
2,09,57,160
75,31,35,121
1.27
0.29
0.49
0.88
0.26
-
21.35
66.85
0.19
0.03
0.03
(0.12)
0.25
-
0.62
0.02
(C)
Shares held by Custodians and
against which Depository Receipts
have been issued*
GRAND TOTAL (A)+(B)+(C)
1,27,40,651
-
1,27,40,651
1.13
1,34,73,958
-
1,34,73,958
1.20
0.06
1,10,04,51,589
2,60,33,226
1,12,64,84,815
100.00
1,10,55,32,520
2,09,57,160
1,12,64,89,680
100.00
Note:
*This represents public non-institutional shareholding.
ii) Shareholding of Promoter (including Promoter Group)
Shareholding (April 1, 2018)
Shareholding (March 31, 2019)
Sl.
no
Shareholder’s Name
No. of
Shares
% of total
Shares
% of Shares
Pledged/
encumbered
No. of
Shares
% of total
Shares
1
2
3
4
5
6
7
8
9
10 Sir Ratan Tata Trust
11 Titan Company Limited
12 Tata Capital Limited
Total
Tata Sons Private Limited – Promoter 34,31,42,275
51,41,696
Tata Motors Limited
28,90,693
Tata Chemicals Ltd
39,27,625
Tata Investment Corporation Limited
20,82,364
Ewart Investments Limited
Rujuvalika Investments Limited (2)
11,68,393
8,42,460
Sir Dorabji Tata Trust
5,70,188
Tata Motors Finance Limited
9,39,358
Tata Industries Limited
1,89,000
2,025
15,660
36,09,11,737
30.46
0.46
0.26
0.35
0.18
0.10
0.07
0.05
0.08
0.02
-
-
32.04
1.24 34,31,42,275
51,41,696
28,90,693
39,27,625
20,82,364
11,68,393
-
5,70,188
9,39,358
-
2,349
15,660
1.24 35,98,80,601
-
-
-
-
-
-
-
-
-
-
-
30.46
0.46
0.26
0.35
0.18
0.10
-
0.05
0.08
-
-
-
31.95
% of Shares
Pledged/
encumbered
1.24
-
-
-
-
-
-
-
-
-
-
-
1.24
% change in
shareholding
-
-
-
-
-
-
(0.07)
-
-
(0.02)
-
-
(0.09)
Notes:
(1) Entities listed from Sl. No. 2 to 12 above form part of the Promoter Group.
(2)
11,68,393 Ordinary Shares held by Rujuvalika Investments Limited (a wholly-owned subsidiary of the Company effective May 8, 2015), do not carry
any voting rights
179
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
EXTRACT OF ANNUAL RETURN
iii) Change in Promoter’s (including Promoter Group) Shareholding
Particulars
Date
Titan Company Limited
At the beginning of the year
Increase during the year
(Allotment of shares kept in abeyance
during Rights Issue of 2018)
At the end of the year
Sir Dorabji Tata Trust
At the beginning of the year
Change during the year
(Decrease due to sale of Shares)
At the end of the year
Sir Ratan Tata Trust
At the beginning of the year
Change during the year
(Decrease due to sale of Shares)
At the end of the year
April 1, 2018
August 17, 2018
March 31, 2019
April 1, 2018
May 25, 2018
March 31, 2019
April 1, 2018
May 25, 2018
March 31, 2019
Shareholding
Cumulative Shareholding
during the year
No. of Shares
% of total Shares
of the Company
No. of Shares
% of total Shares
of the Company
2,025
324
2349
8,42,460
(8,42,460)
-
1,89,000
(1,89,000)
-
-
-
-
0.07
(0.07)
-
0.02
(0.02)
-
2,025
2,349
2349
8,42,460
-
-
1,89,000
-
-
-
-
-
0.07
-
-
0.02
-
-
iv) Shareholding Pattern of Top Ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs):
Sl.
No
1
2
3
4
5
6
Name of shareholders
Life Insurance Corporation of India
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
HDFC Trustee Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Reliance Capital Trustee Co. Ltd.
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Aditya Birla Sun Life Trustee Private Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
ICICI Prudential Mutual Fund
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
ICICI Prudential Life Insurance Company Ltd.
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Shareholding
Cumulative Shareholding during the year
No. of shares
% of total shares
of the Company
No. of shares
% of total shares of
the Company
10,83,88,660
-
-
10,83,88,660
3,73,29,326
1,15,10,783
(54,47,012)
4,33,93,097
9.62
-
-
9.62
3.31
1.02
(0.48)
3.85
10,83,88,660
10,83,88,660
10,83,88,660
10,83,88,660
3,73,29,326
4,88,40,109
4,33,93,097
4,33,93,097
9.62
9.62
9.62
9.62
3.31
4.34
3.85
3.85
3,60,62,228
1,63,98,731
(1,50,13,679)
3,74,47,280
3.20
1.46
(1.33)
3.32
3,60,62,228
5,24,60,959
3,74,47,280
3,74,47,280
3.20
4.66
3.32
3.32
1,62,03,057
1,86,51,356
(1,51,23,141)
1,97,31,272
1,18,41,996
1,29,46,144
(78,19,446)
1,69,68,694
15,14,260
1,55,29,496
(16,74,061)
1,53,69,695
1.44
1.66
(1.34)
1.75
1.05
1.15
(0.69)
1.51
0.13
1.38
(0.15)
1.36
1,62,03,057
3,48,54,413
1,97,31,272
1,97,31,272
1,18,41,996
2,47,88,140
1,69,68,694
1,69,68,694
15,14,260
1,70,43,756
1,53,69,695
1,53,69,695
1.44
3.09
1.75
1.75
1.05
2.20
1.51
1.51
0.13
1.51
1.36
1.36
180
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Sl.
No
7
Name of shareholders
SBI - Various Mutual Funds
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
8 Mirae Asset - Various Mutual Funds
9
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
NPS Trust - Various Funds
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
10 Government Pension Fund Global
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
11 The New India Assurance Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
12 Abu Dhabi Investment Authority
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
13 SBI Life Insurance Co. Ltd.
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
14 DSP Blackrock - Various Mutual Funds
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
15 HDFC Life Insurance Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Shareholding
Cumulative Shareholding during the year
No. of shares
% of total shares
of the Company
No. of shares
% of total shares of
the Company
65,43,098
1,12,39,413
(47,69,829)
1,30,12,682
54,89,866
68,72,991
(26,73,225)
96,89,632
68,82,407
20,98,117
(42,857)
89,37,667
1,11,13,963
32,72,495
(61,87,012)
81,99,446
89,82,922
0
(7,87,618)
81,95,304
79,78,333
32,85,920
(46,23,288)
66,40,965
45,05,961
40,16,460
(21,65,934)
63,56,487
1,30,30,114
64,27,756
(1,31,50,503)
63,07,367
57,41,745
16,60,692
(18,93,587)
55,08,850
0.58
1.00
(0.42)
1.16
0.49
0.61
(0.24)
0.86
0.61
0.19
(0.00)
0.79
0.99
0.29
(0.55)
0.73
0.80
0.00
(0.07)
0.73
0.71
0.29
(0.41)
0.59
0.40
0.36
(0.19)
0.56
1.16
0.57
(1.17)
0.56
0.51
0.15
(0.17)
0.49
65,43,098
1,77,82,511
1,30,12,682
1,30,12,682
54,89,866
1,23,62,857
96,89,632
96,89,632
68,82,407
89,80,524
89,37,667
89,37,667
1,11,13,963
1,43,86,458
81,99,446
81,99,446
89,82,922
89,82,922
81,95,304
81,95,304
79,78,333
1,12,64,253
66,40,965
66,40,965
45,05,961
85,22,421
63,56,487
63,56,487
1,30,30,114
1,94,57,870
63,07,367
63,07,367
57,41,745
74,02,437
55,08,850
55,08,850
0.58
1.58
1.16
1.16
0.49
1.10
0.86
0.86
0.61
0.80
0.79
0.79
0.99
1.28
0.73
0.73
0.80
0.80
0.73
0.73
0.71
1.00
0.59
0.59
0.40
0.76
0.56
0.56
1.16
1.73
0.56
0.56
0.51
0.66
0.49
0.49
Notes:
(1) The above information is based on the weekly beneficiary position received from Depositories.
(2) The date wise increase or decrease in shareholding of the top ten shareholders is available on the website of the Company at www.tatasteel.com
(3)
The % of total shares of the Company in respect of shares bought and sold during the year is calculated on the total share capital of the Company as
on March 31, 2019.
181
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
EXTRACT OF ANNUAL RETURN
v) Shareholding of Directors and Key Managerial Personnel
Sl.
No.
Name of the Shareholder
Directors
1 Mr. T. V. Narendran
2 Mr. Koushik Chatterjee
Key Managerial Personnel
3 Mr. Parvatheesam K
Shareholding (April 1, 2018)
Shareholding (March 31, 2019)
No. of Shares
% of Total Shares of
the Company
No. of Shares
% of Total Shares of
the Company
2,032
1,531
100
-
-
-
2,032
1,531
100
-
-
-
Notes:
(1)
Mr. N. Chandrasekaran, Ms. Mallika Srinivasan, Mr. O. P. Bhatt, Dr. Peter Blauwhoff, Mr. Aman Mehta, Mr. Deepak Kapoor and Mr. Saurabh Agrawal does
not hold any fully paid-up ordinary shares in the Company during the year.
(2) Mr. V. K. Sharma through his relative holds 250 fully paid-up ordinary shares of the Company as on March 31, 2019
B Partly Paid-Up Equity Shares
i) Category-wise Share Holding
Sl.
No.
Category of Shareholders
Number of shares held (April 1, 2018)
Number of shares held (March 31, 2019)
Electronic
Physical
Total
% of Total
Shares
Electronic
Physical
Total
% of Total
Shares
% Change
Foreign
Individuals Non-Resident Individuals
Other Individuals
Bodies Corporate
Banks/FI
Qualified Foreign Investor
Any Other (specify)
Promoters (Including Promoter Group)
Indian
Individuals/Hindu Undivided Family
Central Government
State Governments(s)
Bodies Corporate
Financial Institutions/Banks
Any Other (Trust)
(A)
(1)
(a)
(b)
(c)
(d)
(e)
(f)
Sub-Total (A) (1)
(2)
(a)
(b)
(c)
(d)
(e)
(f)
Sub-Total (A) (2)
Total Shareholding of Promoter and Promoter
Group (A) = (A)(1)+(A)(2)
Public Shareholding
(B)
Institutions
(1)
Mutual Funds
(a)
Financial Institutions/Banks
(b)
Central Government
(c)
State Governments(s)
(d)
Venture Capital Funds
(e)
Insurance Companies
(f)
Foreign Institutional Investors
(g)
Foreign Venture Capital Investors
(h)
(i)
Any Other (specify)
(i - 1) Qualified Foreign Investor
(i - 2) Foreign Institutional Investors - DR
(i - 3) Foreign Bodies – DR
(i - 4) Foreign Portfolio Investments – Individual
(i - 5) Foreign National- DR
(i - 6) Alternate Investment Funds
(i - 7) Foreign National
(i – 8) UTI
Sub-Total (B) (1)
-
-
-
3,89,42,837
-
-
3,89,42,837
-
-
-
-
-
-
-
-
-
-
3,89,42,837
-
-
3,89,42,837
-
-
-
50.16
-
-
50.16
-
-
-
3,89,42,999
-
-
3,89,42,999
-
-
-
-
-
-
-
-
-
-
3,89,42,999
-
-
3,89,42,999
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50.16
-
-
50.16
-
-
-
-
-
-
-
3,89,42,837
-
3,89,42,837
50.16
3,89,42,999
-
3,89,42,999
50.16
1,69,99,158
13,986
-
-
-
21,89,357
66,81,422
-
-
-
53,633
-
-
-
84
-
2,59,37,640
-
-
-
-
-
-
194
-
-
-
-
-
-
-
-
-
194
1,69,99,158
13,986
-
-
-
21,89,357
66,81,616
-
-
-
53,633
-
-
-
84
-
2,59,37,834
21.89
0.02
-
-
-
2.82
8.61
-
-
-
0.07
-
-
-
-
-
33.41
92,43,395
245
-
-
-
15,98,437
35,79,665
-
-
-
17,133
-
-
-
161
-
1,44,39,036
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
92,43,395
245
-
-
-
15,98,437
35,79,665
-
-
-
17,133
-
-
-
161
-
1,44,39,036
11.91
-
-
-
-
2.06
4.61
-
-
-
0.02
-
-
-
-
-
18.60
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(9.98)
(0.02)
-
-
-
(0.76)
(4.00)
-
-
-
(0.05)
-
-
-
-
-
(14.81)
182
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Category of Shareholders
Number of shares held (April 1, 2018)
Number of shares held (March 31, 2019)
Electronic
Physical
Total
% of Total
Shares
Electronic
Physical
Total
% of Total
Shares
% Change
Sl.
No.
(2)
(a)
i
ii
(b)
i
ii
Non-Institutions
Bodies Corporate
Indian
Overseas
Individuals -
Individual shareholders holding nominal
share capital up to `1 lakh
Individual shareholders holding nominal
share capital in excess of `1 lakh
Any Other
Trusts
IEPF Account
HUF
Clearing Member
LLP/LLP-DR
Qualified Foreign Investor
(c)
i
ii
iii
iv
v
(d)
Sub-total (B) (2)
Total Public Shareholding (B) = (B)(1)+(B)(2)
Shares held by Custodians and
against which Depository Receipts
have been issued
(C)
10,75,316
-
1,800
-
10,77,116
-
1.39
-
12,12,265
-
1,662
-
12,13,927
-
1.56
-
0.18
-
76,79,326
2,75,030
79,54,356
10.24
1,48,23,765
2,05,279
1,50,29,044
20,53,660
8
20,53,668
2.64
20,49,177
-
20,49,177
3,92,562
-
5,10,495
3,46,741
4,18,480
-
1,24,76,580
3,84,14,220
48
-
488
-
-
-
2,77,374
2,77,568
3,92,610
-
5,10,983
3,46,741
418480
-
1,27,53,954
3,86,91,788
-
-
-
2,23,908
-
12,24,366
40,71,561
4,42,340
-
2,40,47,382
3,84,86,418
-
-
-
347
-
-
-
2,07,288
2,07,288
2,23,908
-
12,24,713
40,71,561
4,42,340
-
2,42,54,670
3,86,93,706
-
-
-
0.51
-
0.66
0.45
0.54
-
16.43
49.84
-
19.36
2.64
0.29
-
1.58
5.24
0.57
-
31.24
49.84
-
19.36
(0.01)
(0.22)
-
0.92
4.80
0.03
-
14.81
-
-
GRAND TOTAL (A)+(B)+(C)
7,73,57,057
2,77,568
7,76,34,625
100.00
7,74,29,417
2,07,288
7,76,36,705
100.00
ii) Shareholding of Promoter (including Promoter Group)
Shareholding (April 1, 2018)
Shareholding (March 31, 2019)
Sl.
No
Shareholder’s Name
No. of Shares
% of total
Shares
% of Shares
Pledged/
encumbered
No. of Shares
% of total
Shares
- 3,78,30,810
3,54,599
-
1,99,358
-
2,70,869
-
1,43,611
-
39,323
-
1,03,187
-
162
-
1,080
-
- 3,89,42,999
48.73
0.46
0.26
0.35
0.18
0.05
0.13
-
-
50.16
% of Shares
Pledged/
encumbered
-
-
-
-
-
-
-
-
-
-
% change in
shareholding
-
-
-
-
-
-
-
-
-
-
1. Tata Sons Private Limited – Promoter 3,78,30,810
3,54,599
2. Tata Motors Limited
1,99,358
3. Tata Chemicals Limited
2,70,869
4. Tata Investment Corporation Limited
1,43,611
5. Ewart Investments Limited
39,323
6. Tata Motors Finance Limited
1,03,187
7. Tata Industries Limited
8. Titan Company Limited
-
1,080
9. Tata Capital Limited
3,89,42,837
48.73
0.46
0.26
0.35
0.18
0.05
0.13
-
-
50.16
Note:
Entities listed from Sl. No. 2 to 9 above form part of the Promoter Group.
iii) Change in Promoter’s (including Promoter Group) Shareholding
Shareholder’s Name
Date
Shareholding
Cumulative Shareholding
during the year
No. of
Shares
% of total Shares
of the Company
No. of
Shares
% of total Shares
of the Company
Titan Company Limited
At the beginning of the year
Increase during the year
(Allotment of shares kept in abeyance
during Rights Issue 2018)
At the end of the year
April 1, 2018
August 17, 2018
March 31, 2019
-
162
162
-
-
-
-
162
162
-
-
-
183
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
iv) Shareholding Pattern of Top Ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs):
EXTRACT OF ANNUAL RETURN
Sl.
No.
1
2
3
4
5
6
7
8
9
Name of shareholders
Reliance Capital Trustee Co. Ltd.
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
HDFC Trustee Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
The New India Assurance Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Edelcap Securities Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Jhunjhunwala Rekha Rakesh
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Government Pension Fund Global
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
SBI Arbitrage Opportunities Fund
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Government Of Singapore
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
HDFC Life Insurance Company Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
10 Franklin Templeton Investment Funds
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Shareholding
Cumulative Shareholding
during the year
No. of shares
% of total shares
of the Company
No. of shares
% of total shares of
the Company
78,27,234
22,54,608
(45,12,233)
55,69,609
25,21,807
-
(74,319)
24,47,488
7,76,084
-
-
7,76,084
2,160
5,89,254
(2,160)
5,89,254
5,00,000
40,000
-
5,40,000
7,18,974
-
(2,05,566)
5,13,408
5,63,819
44,260
(1,16,453)
4,91,626
6,32,026
-
(1,41,077)
4,90,949
4,84,893
-
-
4,84,893
3,32,388
-
-
3,32,388
10.08
2.90
(5.81)
7.17
3.25
-
(0.10)
3.15
1.00
-
-
1.00
-
0.76
-
0.76
0.64
0.05
-
0.70
0.93
-
(0.27)
0.66
0.73
0.05
(0.15)
0.63
0.81
-
(0.18)
0.63
0.62
-
-
0.62
0.43
-
-
0.43
78,27,234
1,00,81,842
55,69,609
55,69,609
25,21,807
25,21,807
24,47,488
24,47,488
7,76,084
7,76,084
7,76,084
7,76,084
2,160
5,91,414
5,89,254
5,89,254
5,00,000
5,40,000
5,40,000
5,40,000
7,18,974
7,18,974
5,13,408
5,13,408
5,63,819
6,08,079
4,91,626
4,91,626
6,32,026
6,32,026
4,90,949
4,90,949
4,84,893
4,84,893
4,84,893
4,84,893
3,32,388
3,32,388
3,32,388
3,32,388
10.08
12.98
7.17
7.17
3.25
3.25
3.15
3.15
1.00
1.00
1.00
1.00
-
0.76
0.76
0.76
0.64
0.70
0.70
0.70
0.93
0.93
0.66
0.66
0.73
0.78
0.63
0.63
0.81
0.81
0.63
0.63
0.62
0.62
0.62
0.62
0.43
0.43
0.43
0.43
184
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Sl.
No.
Name of shareholders
11 Aditya Birla Sun Life Trustee Private Limited
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
12 DSP Blackrock Various Mutual Funds
At the beginning of the year
Bought during the year
Sold during the year
At the end of the year
Shareholding
Cumulative Shareholding
during the year
No. of shares
% of total shares
of the Company
No. of shares
% of total shares of
the Company
7,00,462
-
(4,79,291)
2,21,171
9,63,002
-
(8,30,378)
1,32,624
0.90
-
(0.62)
0.28
1.24
-
(1.07)
0.17
7,00,462
7,00,462
2,21,171
2,21,171
9,63,002
9,63,002
1,32,624
1,32,624
0.90
0.90
0.28
0.28
1.24
1.24
0.17
0.17
Notes:
(1) The above information is based on the weekly beneficiary position received from Depositories.
(2) The date wise increase or decrease in shareholding of the top ten shareholders is available on the website of the Company at www.tatasteel.com
(3)
The % of total shares of the Company in respect of shares bought and sold during the year is calculated on the total share capital of the Company as
on March 31, 2019.
v) Shareholding of Directors and Key Managerial Personnel
Sl.
No.
Name of the Shareholder
Directors
1 Mr. T. V. Narendran
2 Mr. Koushik Chatterjee
Shareholding (April 1, 2018)
Shareholding (March 31, 2019)
No. of Shares
% of total Shares
of the Company
No. of Shares
% of total Shares
of the Company
139
105
-
-
139
105
-
-
Note:
Mr. N. Chandrasekaran, Ms. Mallika Srinivasan, Mr. O. P. Bhatt, Dr. Peter Blauwhoff, Mr. Aman Mehta, Mr. Deepak Kapoor, Mr. Saurabh Agrawal and
Mr. V. K. Sharma does not hold any partly paid-up ordinary shares in the Company during the year.
V.
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment.
Indebtedness at the beginning of the financial year
(i) Principal Amount
(ii) Interest due but not paid
(iii) Interest accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
• Addition
• Reduction
Net Change
Indebtedness at the end of the financial year
(i) Principal Amount
(ii) Interest due but not paid
(iii) Interest accrued but not due
Total (i+ii+iii)
Secured Loans
excluding deposits
Unsecured
Loans
Deposits
*2,528.86
-
-
2,528.86
69.68
26.35
43.33
*2,572.19
-
-
2,572.19
25,596.94
-
556.01
26,152.95
**6,310.17
#4,764.48
1,545.69
27,129.28
-
569.36
27,698.64
-
-
-
-
-
-
-
-
-
-
-
(` crore)
Total
Indebtedness
28,125.80
-
556.01
28,681.81
6,379.85
4,790.83
1,589.02
29,701.47
-
569.36
30,270.83
*includes funded interest on SDF loan of `924.77 crore (31.03.2018: `855.09 crore)
**includes revaluation loss (net) of `59.12 crore on forex loans and amortisation of loan issue and premium and discount expenses aggregating
`204.23 crore under effective interest rate method.
#includes realised exchange loss (net) of `0.69 crore on repayment of forex loans.
185
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
EXTRACT OF ANNUAL RETURN
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration of Managing Director, Whole-time Directors and/or Manager
Sl.
No.
1
2
3
4
5
Particulars of Remuneration
Gross salary
(a) Salary as per provisions contained in Section 17(1) of the
Income Tax, Act 1961
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961
(c)
Profits in lieu of salary under Section 17(3) of the
Income Tax Act, 1961
Stock Option
Sweat Equity
Commission
Others (retirement benefits)
Total
Ceiling as per the Companies Act, 2013
B. Remuneration to other Directors
Name of MD/WTD/Manager
Mr. T. V. Narendran Mr. Koushik Chatterjee
ED & CFO
CEO & MD
201.53
103.76
-
-
-
800.00
17.34
1,122.63
187.24
153.64
-
-
-
725.00
16.26
1,082.14
Name
Non-Executive Directors
Sl.
No
I
1 Mr. Natarajan Chandrasekaran - Chairman (1)
2 Mr. D. K. Mehrotra (2)
3 Mr. Saurabh Agrawal (3)
4 Mr. Vijay Kumar Sharma (4)
Total (I)
Independent Directors
II
1 Ms. Mallika Srinivasan
2 Mr. O. P. Bhatt
3
4 Mr. Aman Mehta
5 Mr. Deepak Kapoor
Dr. Peter Blauwhoff
Total (II)
Grand Total (I + II)
Overall Ceiling as per the Companies Act, 2013
Commission
Sitting Fees
-
38.00
-
36.00
74.00
125.00
181.00
111.00
90.00
106.00
613.00
687.00
4.80
2.40
6.40
1.20
14.80
4.00
9.60
6.80
4.80
8.00
33.20
48.00
(` lakh)
Total Amount
388.77
257.40
-
-
-
1,525.00
33.60
2,204.77
1,52,517
(` lakh)
Total
Compensation
4.80
40.40
6.40
37.20
88.80
129.00
190.60
117.80
94.80
114.00
646.20
735.00
15,252
Notes:
(1)
(2)
(3)
(4)
As a Policy, Mr. N. Chandrasekaran, Chairman, has abstained from receiving commission from the Company.
Mr. D. K. Mehrotra stepped down as a Member of the Board effective May 16, 2018. The commission of Mr. D. K. Mehrotra was paid to Life Insurance
Corporation of India.
In line with the internal guidelines of the Company, no payment is made towards commission to the Non-Executive Directors of the Company, who are
in full time employment with any other Tata Company.
Mr. Vijay Kumar Sharma was appointed as an Additional (Non-Executive) Director effective August 24, 2018. The commission of Mr. Sharma is paid to
Life Insurance Corporation of India.
186
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
C. Remuneration to KMP other than MD/Manager/WTD
Sl.
No.
1
2
3
4
5
Particulars of Remuneration
Gross salary
(a) Salary as per provisions contained in Section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961
(c) Profit in lieu of salary under Section 17(3) of Income-tax Act, 1961
Stock Option
Sweat Equity
Bonus/Commission
Others (retirement benefits)
Total
(` lakh)
Mr. Parvatheesam K.
Company Secretary &
Chief Legal Officer (Corporate & Compliance)
145.80
20.79
-
-
-
-
3.33
169.92
Note:
Mr. Parvatheesam K was on leave between August 28, 2017 and July 11, 2018. Accordingly, his remuneration for the previous year includes salary drawn by
him as Company Secretary and Compliance Officer for the period April 1, 2017 through August 27, 2017 and salary received by him up to March 31, 2018
towards his earned leave. His remuneration for the current year includes salary drawn by him for the period July 12, 2018 through March 31, 2019.
VII. PENALTIES/PUNISHMENTS/COMPOUNDING OF OFFENCES
During the year, there were no penalties/punishments/compounding offences under the Companies Act, 2013.
Mumbai
April 25, 2019
sd/-
T. V. Narendran
Chief Executive Officer &
Managing Director
DIN: 03083605
sd/-
Parvatheesam K
Company Secretary &
Chief Legal Officer (Corporate & Compliance)
ACS: 15921
187
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS | PARTICULARS OF ENERGY CONSERVATION, ETC.
ANNEXURE 10
Particulars of Loans, Guarantees or Investments
[Pursuant to Section 186 of the Companies Act, 2013]
Amount outstanding as on March 31, 2019
Particulars
Loans given
Guarantees given
Investments made
Loans, Guarantees given or Investments made during the Financial Year 2018-19
Name of the Entity
Relation
Bamnipal Steel Limited
Subarnarekha Port Private Limited
Tata Steel Special Economic Zone Limited
TRF Limited.
S & T Mining Company Private Limited
T M Mining Company Limited
Creative Port Development Private Limited
Tata Steel Special Economic Zone Limited
Jamshedpur Football and Sporting PrivateLimited
Bhubaneshwar Power Private Limited
Jamshedpur Utilities & Services Company Limited
Bamnipal Steel Limited
Tata Metaliks Ltd.
Subarnarekha Port Private Limited
Jamshedpur Continuous Annealing and Processing
Company Private Limited
T M Mining Company Limited
Tata Metaliks Ltd.
Tata Steel Holdings Pte Ltd.
Tata Steel BSL Limited
Creative Port Development Private Limited
Tayo Rolls Limited
TRF Limited.
Subsidiary
Associate
Joint Venture
Subsidiary
Joint Venture
Subsidiary
Associate
Amount
18,631.65*
20.00
13.00
242.00*
0.47
0.05#
91.88
30.50
12.00
23.00
4.00
258.88
179.57
10.01
153.00
0.01
56.05
8,707.98
19,700.00
25.11
3.00
250.00
(` crore)
Amount
65.01
12,096.24
38,929.25
(` crore)
Particulars of Loan,
Guarantees given or
Investments made
Purpose for which the loans,
guarantees and investments are
proposed to be utilised
Loan
Investments
in Equity Shares
Business purpose
Investments
in Warrants
Investments
in Preference
Shares
* Represents loans given and repaid during the year ended March 31, 2019
# Inter-corporate deposits has subsequently been converted into investment in equity shares during the Financial Year 2018-19
Advance against equity as on March 31, 2019
Name of the Entity
Tata Steel Special Economic Zone Limited
Relation
Subsidiary
(` crore)
Amount
275.19
As on March 31, 2019, Company’s loan in Tayo Rolls Limited, Tata Steel (KZN) (Pty) Ltd., S & T Mining Company Private Limited and Sanderson
Industries Ltd. along with investment in Tayo Rolls Limited, Adityapur Toll Bridge Company Limited, Tata Steel Odisha Limited, Jamshedpur
Football and Sporting Private Limited, Strategic Energy Technology Systems Private Limited, T M Mining Company Limited and S & T Mining
Company Private Limited has been fully impaired.
On behalf of the Board of Directors
Mumbai
April 25, 2019
188
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
sd/-
N. CHANDRASEKARAN
Chairman
DIN: 00121863
Particulars of Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo
[Pursuant to Companies (Accounts) Rules, 2014]
ANNEXURE 11
(A) Conservation of Energy
(i) Steps taken or impact on conservation of energy
Jamshedpur
• Green Power initiative – successfully commissioned Coke
Dry Quenching Power Plant of 40MW Capacity
• New by-product gas
capacity commissioned
fired
Boiler
of
136
tph
• Coal firing has permanently stopped at the Works, maximising
the by-product gas utilisation
• Best by-product gas utilisation of 98.18% achieved
• Highest ever by-product gas-based power generation
achieved
• 1.3 Lakh LED lights installed in the Works
• Lowest ever blast furnace gas flaring - 1.9% against the
previous best of 3.16%
• Four Variable Frequency Drives installed for high power
consuming equipment
• Lowest ever specific water consumption of 3.28 m3/tcs, 11%
reduction over Financial Year 2017-18
• Coal blend optimisation to The Tata Power Company Limited
Jojobera units from captive mines
• Energy & Electrode consumption optimised in Laddle Furnace
arcing process at LD shops through digital initiative
• Energy Performance Improvement Team (‘EPIT’) formed
to drive Energy Efficiency Campaign across the Indian
operations, exploiting cross learning and synergy
• Mandatory Energy Audit carried out through an accredited
Audit team as per Energy Conservation Act
Kalinganagar
Blast Furnace
• Increase
in Pulverised Coal
Injection
from 119kg/tHM
coke consumption
to 150 kg/tHM,
thereby
(‘PCI’)
rate
reducing
• Reduced specific water consumption from 0.56 m3/tHM to
0.50 m3/tHM by utilising waste water in slag granulation
• Reduced
specific
power
consumption
from
141 KWH/tHM to 115 KWH/tHM
• Substituted
river
trough preparation
sand
by
granulated
slag
for
• Increase in share of dumped hot metal in granshot from 56%
to 72% thereby reducing hot metal pooling
Hot Strip Mill
• Reduced mill specific power consumption from 122 KWH to
118 KWH through:
– planned stoppages for longer duration in place of multiple
shorter durations; and
– higher pacing during rolling durations
• Reduced fuel consumption from 0.300 Gcal/t to 0.294
Gcal/t through air fuel ratio optimisation, Level 2 usage for
combustion control and cutting fuel load during delays
Sinter Plant
• Reduced Water Consumption in Sinter Making in FY 2018-19
to 0.053 m3/ton of Net Sinter (FY 2017-18: 0.08 m3/ton)
• Reduced Solid Fuel requirement
in
FY 2018-19 to 78 kg/ton of Net Sinter (FY 2017-18: 83 kg/ton)
in Sinter Making
Utilities
• Electrical power demand met from by-product gases
utilisation - 56.46%
• By-product gas Utilisation - 93.98%
• Gas recovery - 45.11% of heats recovered
• TRT - Top Pressure Recovery Turbine average power
generation 15MW
• Utilisation of LD gas in Coke Oven under firing to improve
energy and combustion efficiency
• Centralised utility management established for efficient
management of all utilities across plant
• Predictive controller model being used for ASU-Air Separation
Unit to optimise power and subsequently reduction in
oxygen venting
(ii)
Steps taken by the Company for utilising alternate
sources of energy
Jamshedpur
• Initiated projects on power generation from solar and
non-conventional energy source. Pilot project on low grade
energy recovery on progress.
Kalinganagar
• Increased solid waste consumption in sinter making
189
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
PARTICULARS OF ENERGY CONSERVATION, ETC.
(iii) Capital investment on energy conservation equipments
Particulars
Jamshedpur
Recovery of sensible heat of Coke by installation of Coke Dry Quenching System in Battery # 10 & 11 at Coke Plant
Replacement of Boiler # 3 at Power House # 4
Installation of Variable Frequency Drive in HT motors with variable load
Provision for Light Diesel Oil firing facility in boilers of Power House # 4 (PH-4)
New LD Gas Holder
Capacity enhancement from 25 MW to 30 MW in PH-4
Kalinganagar
CDQ- Coke Dry Quenching
TRT- Top Pressure Recovery Turbine
` crore
62
4
1
4
69
2
65
4
(B) Technology Absorption
1. Efforts made towards technology absorption
(i) Projects under Research and Development
Project title
Jamshedpur
Calcium Ferrite addition trials in Basic Oxygen
Furnace (‘BOF’) to improve dephosphorisation
to level < 0.01%.
Utilisation of Ferro chrome furnace off gas
Development of flotation reagent for reverse
flotation of sub grade iron ore
Extraction of spinel and metal from Ferro
chrome slag
Reduction roasting and magnetic separation of
low grade Manganese ores
Nitrogen purging at Sinter plant
Metallic Glass coatings on bearings
Development of Advanced High Strength Steel
1000 steel for Automotive application
Development of steel for Lifting & Excavation
application (>700 MPa YS)
Development of ferritic-bainitic780 MPa steel
VAVE and Early Vendor Involvement with
Major Auto Customers
Micro-pillar forming
Third generation technology for full length
profiling of copper staves
To establish solid state joining of Aluminium to
Steel for a motorbike handle application
Benefits
Plant trials with calcium ferrite in BOF helped to tap steel below 0.01%
phosphorous with more than 60% confidence from hot metal containing higher
phosphorus of 0.18% than the world average of 0.10%.
The project was targeted to demonstrate production of bio-ethanol from ferro
chrome furnace off gas using Lanzatech Technology.
Chemical regents have been developed for selective separation of alumina/
silica from iron ore slime by froth flotation process. The reagents have been
conceptualised using first principle molecular modeling studies followed by lab
scale synthesis and experimentation. These novel reagents show up to 10% yield
improvement over commercial reagents.
Ferro chrome slag can be used for extraction of spinel and silico-chrome containing
metal. Based on the laboratory results, plant trials were carried out.
Low grade ferruginous manganese ores can be upgraded to high grade ores by
reduction roasting and magnetic separation process. Based on the laboratory
results, plant trials were carried out.
Plant trial helped to improve the strength of sinter and to reduce that cost of fuel.
There was also a reduction in fuel consumption @2.5 kg/tonne of sinter, resulting
in cost savings along with reduction of CO2 emission.
Nickel & Phosoporous containing hard metallic glass coating was deposited
uniformly on bearing surface with at least double life warranty against high fatigue
and electrochemical corrosion which also led to reduction in noise level.
The steel is targeted to reduce weight of vehicle and fuel consumption
The developed steel will help in weight reduction of equipment and cost saving.
The steel is targeted to reduce weight in Automotive wheel application.
Value Analysis Value Engineering (‘VAVE’) workshops were carried out for several
models in FY 2018-19. These workshops are carried out to create value through
cost and weight reduction ideas on the vehicle by means of use of newer steel
grades, blank optimisation and engineering design changes. These activities result
in improved Customer Service Index and opportunity to present Tata Steel new
grades’ material supply in newer models.
An innovative sheet metal forming technology has been developed and validated
at lab scale mainly for automotive industry. This technology enables to increase the
fatigue life of components significantly.
This technology gives reliable thickness profile along the length of the copper
stave for the safe operation of blast furnaces.
Solid state fitting of Aluminium to Steel using magnetic pulse technique helped
to achieve minimum load requirement without any post or pre-weld conditioning
190
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
Project title
Improving blast furnace tuyere life
Kalinganagar
Development of FB780 for WheelDisc Application
HS1000
Development of Dual Phase Grade DP600 through
CT Control in ROT
Benefits
Tuyere is a copper casted component equipped with inherent cooling circuit to
sustain in severe thermal environment while supplying hot blast, Pulverised coal
inside the blast furnace. Based on detailed numerical analysis, modification of
inherent cooling passageway of copper tuyere has been done. Modified design has
yielded better cooling efficiency, lower copper temperature, lower thermal stress
and reduction of incipient water boiling which will extent the tuyere life.
The development of FB780 for WheelDisc Application will help to reduce weight
reduction and improve the fatigue life in vehicles. Tata Steel is the first manufacturer
to produce FB780 Grade in India.
Commercial Vehicle manufacturers currently use HS800 grade produced by Tata
Steel (only domestic supplier). Development of HS1000 will help to reduce vehicle
weight and increase the load bearing capacity of the vehicles. Tata Steel is the first
manufacturer to produce such high tensile material for commercial vehicles.
Development of Dual Phase Grade DP600 through CT Control in ROT will help
to cater to growing requirements of Dual Phase Grade for various automotive
applications such as WheelDiscs and other structural components for improving
fatigue life and crash resistance.
(ii) Process Improvement:
Jamshedpur
Mining:
• Establishing application of GPS based advanced portable tool
to measure haul road parameters (gradient, curve radius, super
elevation & rolling resistance) at Quarry - AB, West Bokaro.
This will help to identify haul road problems, determine
severity and allocate maintenance resources accordingly to
improve haul road conditions thereby reducing haul truck
fuel consumption and increasing the tyre life.
• Augmenting coal extraction ratio by increasing the backfilling
rate at Bhelatand Colliery. Backfilling rate increased by ~24%
by installing fish tale arrangement for homogenous mixing of
water and sand.
• Site selection & prefeasibility study for underground coal
gasification at Jamadoba for unlocking value from remaining
coal resource (~200MT) which is unviable through current
method of mining. All related baseline information/data
is collated, Test bore hole drilling has been completed,
hydro-geological & rock mechanics study is in progress.
Ore Beneficiation Technology
Recovery of Iron value from Slime using High Gradient Magnetic
Separation (‘HGMS’) Technique:
In absence of adequate
beneficiation facility at Noamundi, ~16% of wet Run of Mine is
discarded as slime having ~8% Al2O3 and ~55% Fe. HGMS trials
on pilot scale indicated a potential to recover ~50% iron value
from slime having ~3.3% Al2O3 and ~63% Fe.
Coal Beneficiation Technology
• Enhancing visibility of critical unit operations (Flotation,
Vacuum Belt Filter, Reflux Classifier & Thickeners) at West
Bokaro washery#3 by installation of flow meter (6 nos),
density meter(6 nos) & turbidity meter (2 nos) to improve
process efficiency. 5 flow meters & 3 density meters installed
till March 2019. Remaining measurement systems to be
installed & commissioned by May 2019.
• Reducing misplacement of clean coal in Dense Media Cyclones
(‘DMCs’) by installation of real time monitoring system: An
order has been placed on Commonwealth Scientific and
Industrial Research Organisation (Australia) through minor
capital scheme for procurement & installation of Electrical
Impedance Spectrometer in 1 stream of DMCs (out of 4).
Installation to be completed by August 2019. Based on the
results, a decision for replication in the remaining streams
would be taken.
• Integration of Intermediate size beneficiation circuit at
Washery#3: Through detailed lab & pilot scale studies, it has
been established that introduction of an intermediate circuit
– Reflux Classifier for beneficiation of 0.5-0.15mm would
result in clean coal yield gain by ~3-4%. A detailed project
report consisting of preliminary engineering for the modified
circuit, piping and instrumentation, equipment selection,
specifications and general arrangement, project execution
cost & duration prepared for approval & implementation.
• New generation mixing mechanism in Washery#3 Flotation
cells: ~0.4% improvement in clean coal yield by replacement
of conventional rotor-stator in the flotation cells with a new
generation mixing mechanism.
• Hydrophobic Hydrophilic Separation – A non-conventional
fine coal beneficiation technology to achieve higher clean
coal yields at lower ash & moisture simultaneously: Lab
scale results indicate a potential to enhance fine clean
coal yield by ~4% at lower ash (<9%) and moisture (<2%).
Based on the encouraging results, pilot scale studies to be
carried out for establishing parameters such as specific
reagent consumption, losses and power consumption, etc.
191
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
Coal coke:
• Plastic trial at CP1 has established that 0.1% plastic in the
blend can be used without affecting coke quality
• Establishing
a
new
low-cost
Indonesian
coal
(‘SMM’) for TSJ blend
• Resolving the coke dumping issue at I Blast Furnace
• Evaluation of four different Bharat Coking Coal Limited coals
to support domestic coal buying team
Agglomeration:
• Usage of coke dust (generated during screening of dry
quenched coke) at the rate of 10 kg/tonne started in pellet
plant. This helped in the replacement of costlier conventional
fuels such as coke breeze and anthracite in pelletising
• Successful trial of carbon composite briquettes produced
from plant reverts was carried out at C Blast Furnace resulting
in reduction in coke rate by 25 kg/tHM
Blast Furnaces:
• Using extruded carbon-composite briquettes in the BF
burden to reduce coke rate
• Curbing of raw flux additions in blast furnaces by using a
predictive model
Ferro Alloys:
• Successfully established new way of Silicon reduction in
ferrochrome at Bamnipal by addition of Chrome ore mines
through a series of plant trials. The concept is going to be
operationalised in Financial Year 2019-20.
• Metallurgical know-how for making Carbon composite
chrome ore briquette at Ferro Alloy Plant, Gopalpur to lower
production cost & utilisation of plant waste is established and
plant trial is on
Process Visualisation & Diagnostics:
• Online Pile Visibility Model developed to facilitate reduction
in sinter chemistry variation at TSJ - RMBB2
• Development of anomaly detection-based tool to facilitate
quick process diagnosis
• Coke Oven Wall Health Monitoring System Development and
Deployment at TSJ and TSK using Push Force Profile
Process Energy & Emission:
• Intermittent disposal of last of Electrostatic Precipitator
in all sinter plants
implemented
dust
which resulted in reduction of 10-15 mg/nm3 Suspended
Particulate Matter level
in sinter plants
192
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
PARTICULARS OF ENERGY CONSERVATION, ETC.
• Predictive control for Total Dissolved Solid and Chemical
Oxygen Demand of By-Product Plant waste water which helped
in better control of Biological Oxygen Treatment process.
Characterisation & Specialty support:
• Identification and development of Coal tar distillation Product:
In a collaborative project with National Physical Laboratory
(‘NPL’), Delhi all the coal tar samples generated in Tata steel
coke ovens have been characterised and its feasibility for
manufacturing high end distillation carbon product such as
needle coke and carbon fibre has been assessed. The suitable
collaboration agencies for carrying out the test work for
producing high end carbon product like needle coke/carbon
fibre is identified.
• Establishing LD slag for one of the component in Portland slag
cement: We have significantly progressed in the endeavour of
establishing LD slag as raw mix component in Portland slag
cement. In a collaborative project with National Council of
cement and building material Faridabad (‘NCCBM’), LD slag
samples have been characterised and subsequent study is
in progress. We are in constant interaction with BIS and have
managed to incorporate LD slag samples from other major
steel plants in India like Sail and JSW in the existing study with
NCCBM. Successful completion of this project will help to get
acceptance from Bureau of Indian Standards which will lead
to complete evacuation of 0-6mm fraction of LD slag.
Kalinganagar
Raw Material Holding System
• Reduction in rail idle freight in Outbound logistics from 20.6%
in Financial Year 2017-18 to 16.6% in Financial Year 2018-19
• Improvement in Pulverised Coal Injection rate at Blast Furnace
from 150kg/tHM to 175 kg/tHM in Financial Year 2018-19 by
debottlenecking PCI circuit.
• Reduction of water consumption in coke plant
from
1.32 M3/TGC in Financial Year 2017-18 to 1.05 M3/TGC in
Financial Year 2018-19
Blast Furnace
• Improvement in fuel rate at Blast furnace from 555 kg/tHM to
540 kg/tHM using advance analytics
• Improvement in Blast Furnace coke yield from 65% in
Financial Year 2017-18 to 71% in Financial Year 2018-19.
Steel Melting Shop (‘SMS’)
• Improvement in casting speed of SMS Caster from 1.20
in
in Financial Year 2017-18 to 1.24 Mtr/Min
Mtr/Min
Financial Year 2018-19
• Reduction of Hot Metal and Scrap in SMS from 1,118
in
in Financial Year 2017-18 to 1,111.8 kg/tcs
kg/tcs
Financial Year 2018-19
• Reduction of lime consumption in SMS from 75.36 kg/tcs in
Financial Year 2017-18 to 70.7 kg/tcs in Financial Year 2018-19
Hot Strip Mill
• Roughing Mill speed optimised through benchmarking with
• Bake hardening steel development through Jamshedpur
• Continuous Annealing & Processing Company Private Limited
for automotive Commercial Vehicle segment
• Development of Eco-friendly passivation for Galvano to
Jamshedpur and Tata Steel BSL Limited (‘TSBSL’)
eliminate pre-treatment process at Customer end
• Achieved better product properties through usage of lesser
number of Finishing Mill stands (Use of 5 stands instead of 7
stands) for thicker sections
• Installed Laminar water header before Finishing Mill to avoid
rescaling and hence Rolled in Scale defect
• Extra-to-order tonnage reduced by 80% because of width
deviation by set up optimisation using advance analytics.
• Slab and Coil
image
identification mechanism
for
avoiding Rank-A defect
• Improve product yield by avoiding discarding prime material
through usage of High resolution movable camera for
detecting defects at offline inspection station
(iii) Product Development
Jamshedpur
• Tata Shakti, Tata Kosh and Tata Steelium launched and now, it
will be commercialised through TSBSL
• Ford Global Approval for Galvanised automotive application.
2. Benefits derived from key projects:
• HC 80A with
improved
torsion properties
to meet
Customer demand
• Gr 3[Staple] for high speed wire drawing were to supply
to niche Customer
• WR3M
for high
productivity by 30%
speed wire drawing
increased
• HC82BCr[LR] for single Low Relaxation Prestressed Concrete
wire – Entry into new segment
• Fe 550D rebars with higher ductility
• Fe 600 rebars with higher strength and ductility
Kalinganagar
• Volume Ramp up of all Automotive grades including critical
grades such as HS800 @4kt/month, TPI Grades @ 8kt
• Development of Automotive Grades such as IF, FB780,
JSH590BN, DP780, DP980, SPFH590 & HS1000 to improve Tata
Steel’s share of business in growing Automotive markets
Benefits derived
Improvement of productivity of New Bar Mill (‘NBM’) by
optimising water-box cooling using first principle-based model
Project title
Jamshedpur
Roughing mill window expansion for Skin panel rolling in HSM 8000 tonnes extra skin panel volume. Saving potential ~ 41 crore/annum
Increase in rolling speed of 10, 12 and 16 mm rebar. One of the enabler
to pave a way to cross the ABP target of NBM and reach the milestone
of 1.037 MT in Financial Year 2018-19.
Reduction in customer complaints and increase in productivity
at customer end.
>1 crore/annum (potential)
Improvement in quality of galvanised automotive products from
Continuous Galvanizing Line #2
Improve the consistency in microstructure in high end High
Carbon wire rods
Successful Trial of HPPI grate bars
Aluminum control prediction model (‘ACPM’) for bath chemistry
based on mill signal
Kalinganagar
Reduction in rail idle freight in Outbound logistics
Reduction of HM+Scrap in SMS
Improvement in casting speed of SMS Caster
Improvement in PCI rate at BF TSK from 150kg/tHM to
175 kg/tHM inFinancial Year 2018-19 by
debottlenecking PCI circuit.
Reduction of fuel rate at Blast furnace from 555kg/tHM to
540 kg/tHM using advance analytics
Development of customised wagon builder led to 24% reduction in rail
idle weight through optimised loading of coils in wagons
Implementation of slag detection system in convertor and caster led to
reduction in HM+Scrap by 6 kg/tcs
Increase
in maximum casting speed of peritectic grades with
development of high speed casting powder led to increase in
throughput of SMS
PCI mill availability increased to 92% in Financial Year 2018-19 as
compared to baseline of 85%. Due to this, PCI injection level increased
Fuel rate improved from the baseline level of 555 kg/tHM in H1
Financial Year 2018-19 to 540 kg/tHM
193
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
3.
Information regarding imported technology (last three years)
Slab Deburring & Slab Marking Machine in Caster# 1 & 3
Installation of Torch Cutting Machine in Caster# 1 & 3
Installation of Tension Leveller at CGL#1
Coil Box revamp at HSM
Installation & Commissioning of Twin RH Facility
Installation of 4th Grinder
Installation of Surface Inspection System for TSCR
Installation of new Slab Scarfing machine
Power augmentation at BFRS
Fire fighting system at LD gas holder
Hot Rolled Skin Pass & Oiled (‘HRSPO’) coils at CRM Bara (Ph-II)
Barrel reclaimer
Conveyors for pre-screening plant at Noamundi
E BF Re-lining
H BF - Augmentation of electrics
SP#2 Dedusting system
Coke Oven Flare Stack
Upgradation of RCL1 at CRM
Dust extraction system at H BF Stockhouse
LD Slag processing plant
LD#2 Secondary emission Project-ESP-3 system
HSM Furnace skid revamping
Torch cutting at IBMD
Replacement of Boiler # 3 at PH#4
Sl. No. Technology imported
Jamshedpur
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25. Modification of Induration Burner at Pellet Plant
26.
Kalinganagar
27.
28.
29.
Dynamic Soft Reduction facility in Slab Caster
Installation of Slab tilter facility at Steel Melt Shop
Installation of RH Degasser facility at Steel Melt Shop
CDQ#10 and Power Plant
4. Expenditure on Research & Development (R&D)
(a) Capital
(b) Recurring
(c) Total
(d) Total R&D expenditure as a % of Total Turnover
(C) Foreign Exchange Earnings and Outgo
Foreign exchange earnings
Value of direct imports (C.I.F. Value)
Expenditure in foreign currency
Mumbai
April 25, 2019
194
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEAR
PARTICULARS OF ENERGY CONSERVATION, ETC.
Year
Status
2017
2018
2019
2017
2018
FY 2018-19
6,497.94
14,519.26
450.04
Commissioned
Commissioned
(` crore)
2.82
212.97
215.79
0.31
(` crore)
FY 2017-18
5,898.19
13,355.43
334.94
On behalf of the Board of Directors
sd/-
N. CHANDRASEKARAN
Chairman
DIN: 00121863
FINANCIAL HIGHLIGHTS
Revenue from operations
Profit/(loss) before tax
Profit/(loss) after tax (including discontinued operations)
Dividends
Retained earnings
Capital employed
Net worth
Borrowings
Net debt: Equity
Net worth per share as at year end
Earnings per share:
Basic
Diluted
Dividend declared per Ordinary Share
Employees (Numbers)
Shareholders (Numbers)
Tata Steel Standalone
Tata Steel Group
(` crore)
2018-19
70,610.92
16,227.25
10,533.19
1,145.92
27,694.90
1,10,238.18
72,729.71
29,701.47
Ratio
0.42
`
634.68
90.41
90.40
13.00
32,984
8,09,578
2017-18
60,519.37
6,638.25
4,169.55
971.22
18,700.25
98,174.73
63,789.84
28,125.80
0.15
556.67
38.57
38.56
10.00
34,072
7,81,392
2018-19
1,57,668.99
15,905.72
9,098.33
1,144.76
14,056.43
1,84,565.65
71,289.54
1,00,816.22
Ratio
1.43
`
622.75
87.75
87.74
13.00
75,294
2017-18
1,24,109.69
20,956.09
17,762.81
970.05
7,801.99
1,64,524.06
61,807.14
92,147.05
1.37
539.92
128.12
128.10
10.00
65,144
195
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 FINANCIAL RATIOS
Inventory turnover (in days)
EBITDA/Turnover
PBET/Turnover
Return on average capital employed
Return on average net worth
1.
2.
3.
4.
5. Asset turnover
6.
7. Debtors turnover (in days)
8. Gross block to net block
9. Net debt to equity
10. Current ratio
11.
12. Net worth per share (`)
13. Basic earnings per share - continuing operations (`)
Interest service coverage ratio
Basic earnings per share - continuing and discontinued (`)
14. Dividend payout
15. P/E ratio
1.
EBITDA/Turnover
(EBITDA: PBT +/(-) Exceptional Items + Net Finance Charges
+ Depreciation and amortisation - Share of results of equity
accounted investments )
(Net Finance Charges: Finance costs - Interest income - Dividend
income from current investments - Net gain/(loss) on sale of
current investments)
(Turnover: Revenue from Operations)
2.
PBET/Turnover
Profit before exceptional items and tax/Turnover
3.
Return on Average Capital
Capital Employed
Employed:
EBIT/Average
Total
(Capital
Borrowings
borrowings
Current Borrowings + Deferred tax liabilities)
Equity
Current maturities
Employed:
+
and
Finance
+
of
Non-current
Non-current
+
Lease Obligations
(EBIT: PBT +/(-) Exceptional Items + Net Finance Charges)
4.
Return on Average Net worth: PAT (including discontinued
operations)/Average Net worth
(Net worth: Total equity + Preference Shares issued by subsidiary
companies + Warrants issued by a subsidiary company + Hybrid
Perpetual Securities)
5.
Asset Turnover: Turnover/(Total Assets - Investments - Advance
Against Equity)
6.
Inventory Turnover: Average Inventory/Sale of Products in days
196
Tata Steel Standalone
Tata Steel Group
2018-19
29.38%
23.14%
16.26%
15.43%
72.19%
60
8
1.22
0.42
0.73
9.57
634.68
90.41
90.41
17%
5.76
2017-18
26.11%
16.53%
13.09%
7.21%
60.02%
67
12
1.17
0.15
0.91
7.03
556.67
38.57
38.57
33%
14.80
2018-19
18.88%
10.16%
12.98%
13.67%
69.20%
72
28
1.40
1.43
1.39
4.38
622.75
88.32
87.75
20%
5.90
2017-18
17.22%
9.15%
10.87%
35.09%
64.69%
80
35
1.47
1.37
1.46
4.13
539.92
126.39
128.12
8%
4.52
7. Debtors Turnover: Average Debtors/Turnover in days
8. Gross Block to Net Block: Gross Block/Net Block
(Gross Block: Cost of tangible assets + Capital work in progress +
Cost of intangible assets + Intangible assets under development)
(Net Block: Gross Block - Accumulated depreciation and
amortisation - Accumulated impairment)
9. Net Debt to Equity: Net Debt/Average Net Worth
(Net Debt: Non-current borrowings + Current maturities
of Non-current borrowings and Finance Lease Obligations
+ Current borrowings - Current Investments - Non-current
balances with banks - Cash and Bank Balances)
10.
Current Ratio: Current Assets including assets held for sale
(excluding current investments)/Current Liabilities including
liabilities held for sale
(Current liabilities: Trade Payables + Other current liabilities
+ Short-term provisions - Current maturities of Non-current
borrowings and Finance Lease Obligations)
11.
Interest Service Coverage Ratio: EBIT/Net Finance Charges
(excluding interest on short term debts)
12.
Net worth per share: Net Worth/Number of Equity Shares
13.
Basic Earnings per share: Profit attributable to Ordinary
Shareholders/Weighted average number of Ordinary Shares
14.
15.
Dividend Payout: Proposed dividend for the year (includes tax
on dividend)/Profit after tax
P/E Ratio: Market Price per share/Basic Earnings per
share-continuing operations
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
PRODUCTION STATISTICS
Iron
Ore
Coal
Iron
Crude
steel
Rolled/
Forged Bars
and
Structurals
Plates
Sheets
3,726
3,509
3,996
4,126
4,201
4,796
5,181
5,766
5,984
6,056
6,456
6,989
7,335
7,985
8,445
9,803
10,834
9,776
10,022
10,417
12,044
13,087
13,189
15,005
17,364
13,694
16,431
21,284
23,043
23,374
3,754
3,725
3,848
3,739
3,922
4,156
4,897
5,294
5,226
5,137
5,155
5,282
5,636
5,915
5,842
6,375
6,521
7,041
7,209
7,282
7,210
7,024
7,460
7,295
6,972
6,044
6,227
6,315
6,224
6,546
2,268
2,320
2,400
2,435
2,598
2,925
3,241
3,440
3,513
3,626
3,888
3,929
4,041
4,437
4,466
4,347
5,177
5,552
5,507
6,254
7,231
7,503
7,750
8,858
9,899
10,163
10,655
13,051
13,855
14,237
2,323
2,294
2,415
2,477
2,487
2,788
3,019
3,106
3,226
3,264
3,434
3,566
3,749
4,098
4,224
4,104
4,731
5,046
5,014
5,646
6,564
6,855
7,132
8,130
9,155
9,331
9,960
11,683
12,482
13,228
553
558
599
575
561
620
629
666
634
622
615
569
680
705
694
706
821
1,230
1,241
1,350
1,432
1,486
1,577
1,638
1,676
1,778
1,823
1,882
1,882
1,959
91
88
92
78
-
-
-
-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
117
118
123
122
124
137
133
114
60
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Hot
Rolled
Coils/
Strips
155
153
170
163
281
613
1,070
1,228
1,210
1,653
2,057
1,858
1,656
1,563
1,578
1,354
1,556
1,670
1,697
1,745
2,023
2,127
2,327
3,341
4,271
4,259
4,742
6,295
7,093
7,801
Cold
Rolled
Coils
Railway
Materials
’000 Tonnes
Semi-
Finished
for Sale
Total
Saleable
Steel
-
-
-
-
-
-
-
-
0
0
0
356
734
1,110
1,262
1,445
1,495
1,523
1,534
1,447
1,564
1,544
1,550
1,445
1,638
1,836
1,689
1,837
1,853
1,858
17
14
9
7
6
2
-
-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,033
1,013
1,045
1,179
1,182
1,074
869
811
1,105
835
615
647
566
563
555
604
679
506
386
833
1,421
1,534
1,514
1,518
1,346
1,200
1,443
1,481
1,481
1,386
1,913
1,901
1,978
2,084
2,117
2,391
2,660
2,783
2,971
3,051
3,262
3,413
3,596
3,975
4,076
4,074
4,551
4,929
4,858
5,375
6,439
6,691
6,970
7,941
8,931
9,073
9,698
11,351
12,237
12,980
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
FINANCIAL STATISTICS
Capital
3,246.42
Reserves
and
Surplus
48,687.59
Borrow-
ings
Gross
Block
Net
Block
Invest-
ments
28,284.63 87,987.34 78,731.11
13,665.71
Total
Income
Total
Expen-
diture c
53,675.42 44,776.94
Depre-
ciation
Profit
before
Tax
3,541.55 5,356.93
Tax
Profit
after
Tax
1,912.38 3,444.55
(` crore)
Dividend#
924.71
3,421.14
60,368.70
28,125.80 90,354.85
77,402.35 24,276.93
61,283.03 50,917.32
3,727.46
6,638.25 2,468.70 4,169.55
1,159.63
3,421.12 69,308.59 29,701.47 93,762.15 77,018.31 39,406.72 73,016.00 52,985.79 3,802.96 16,227.25 5,694.06 10,533.19
1,370.78
Year
2016-17
2017-18
2018-19
c
#
Expenditure includes excise duty recovered on sales.
Includes tax on dividend.
197
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 DIVIDEND STATISTICS
Year
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
First Preference
(`150)
Second Preference
(`100)
Rate
`
Dividend
` lakh
Rate
`
Dividend @
` lakh
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
9.25
–
8.42
–
–
–
–
–
0.4i
2.00
2.00
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
860.80
1,496.58 g,h
228.33
–
–
–
–
–
2,596.11
12,805.48
5,367.78
–
–
–
–
–
–
–
–
–
Ordinary
(`100 upto 1988-89
and `10 from 1989-90)c
Rate*
`
Dividend @
` lakh
3.00 a,b
3.10
3.50
2.50
c
d
e
f
3.00
3.50
4.50
4.50
4.00
4.00
4.00
5.00
4.00
8.00
10.00
13.00
13.00
15.50
16.00
16.00
8.00
12.00
12.00
8.00
10.00
8.00
8.00
10.00
10.00j
13.00
5,059.30
7,134.23
8,054.78
6,482.21
9,655.44
11,823.94
15,697.11
18,222.25
16,198.05
16,329.05
16,329.07
20,264.09
14,710.88
33,299.88
41,625.77
82,137.22
82,042.66
1,10,432.51
1,36,759.54
1,36,443.72
82,477.15
1,30,777.35
1,34,703.22
90,569.91
1,03,740.40
92,627.74
92,471.69
1,16,893.21
1,38,147.27
1,79,587.42
Total
`lakh
5,059.30
7,134.23
8,054.78
6,482.21
9,655.44
11,823.94
15,697.11
18,222.25
16,198.05
16,329.05
17,189.87
21,760.67
14,939.21
33,299.88
Tax on
dividend
` lakh
–
–
–
–
–
–
–
1,656.57
1,472.55
1,618.19
1,618.20
1,875.50
–
3,781.33
41,625.77
4,727.58
82,137.22
10,185.74
10,092.00
82,042.66
16,041.72 1,10,432.51
19,866.05 1,39,355.65
19,549.31 1,49,249.20
11,500.02
87,844.93
15,671.62 1,30,777.35
18,157.49 1,34,703.22
90,569.91
12,872.69
6,618.86 1,03,740.40
92,627.74
14,930.51
14,774.46
92,471.69
19,771.66 1,16,893.21
23,554.82 1,38,147.27
30,620.57 1,79,587.42
Tax on
dividend
` lakh
–
–
–
–
–
–
–
–
–
–
85.30
275.88
21.13
–
–
–
–
377.12
1,860.16
779.74
–
–
–
–
–
–
–
–
–
a
The Ordinary Shares of `100 each have been sub-divided into Ordinary Shares of `10 each during 1989-90 and the rate of Dividend is per Ordinary Share of
`10 each.
b On the Capital as increased by shares allotted on Conversion of Convertible Debentures.
c On the Capital as increased by Rights Issue of Ordinary Shares during 1992-93.
d On the Capital as increased by Ordinary Shares issued during 1993-94 against Detachable Warrants.
e On the Capital as increased by Ordinary Shares issued during 1994-95 against Detachable Warrants and Foreign Currency Convertible Bonds.
f
g
h
i
j
On the Capital as increased by Ordinary Shares issued during 1995-96 against Detachable Warrants, Foreign Currency Convertible Bonds and Naked Warrants.
Includes Dividend of `22.30 lakhs on 9.25% Cumulative Redeemable Preference Shares for the period April 1, 2000 to June 27, 2000.
Includes Dividend of `1,198.40 lakhs on 8.42% Cumulative Redeemable Preference Shares for the period June 1, 2000 to March 31, 2001.
Dividend paid for 74 days.
On the Capital as increased by Rights Issue of Ordinary Shares during 2017-18.
*
@
Dividend proposed for the year
Includes tax on dividend.
198
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF TATA STEEL LIMITED
Report on the Audit of the Standalone Financial Statements
Basis for Opinion
Opinion
3.
1.
2.
We have audited the accompanying Standalone Financial
Statements of Tata Steel Limited (“the Company”), which
comprise the Balance Sheet as at March 31, 2019, the Statement
of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows
for the year then ended, and Notes to the Standalone Financial
Statements, including a summary of significant accounting
policies and other explanatory information (hereinafter referred
to as “the Standalone Financial Statements”).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2019, its total comprehensive
income (comprising of profit and other comprehensive income),
its changes in equity and its cash flows for the year then ended.
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the
Standalone Financial Statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis
for our opinion.
199
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Key Audit Matters
4.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Standalone Financial
Statements of the current year. These matters were addressed in the context of our audit of the Standalone Financial Statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Our audit procedures included the following:
• We understood, assessed and tested the design and operating
effectiveness of key controls surrounding assessment of
litigations relating to the relevant laws and regulations;
• We discussed with management the recent developments and
the status of the material litigations which were reviewed and
noted by the audit committee;
• We performed our assessment on a test basis on the underlying
liabilities/other
the
Standalone
supporting
litigations made
contingent
in
the
calculations
significant
Financial Statements;
• We used auditor’s experts to gain an understanding and to
evaluate the disputed tax matters;
• We considered external
obtained by management;
legal opinions, where relevant,
• We met with the Company’s external
legal counsel to
understand the interpretation of laws/regulations considered
in their assessment relating to a
by the management
material litigation;
• We evaluated management’s assessments by understanding
precedents set in similar cases and assessed the reliability of the
management’s past estimates/judgements;
• We evaluated management’s assessment around those matters
that are not disclosed or not considered as contingent liability, as
the probability of material outflow is considered to be remote by
the management; and
• We assessed the adequacy of the Company’s disclosures.
Based on the above work performed, management’s assessment in
respect of litigations and related disclosures relating to contingent
liabilities/other significant litigations in the Standalone Financial
Statements are considered to be reasonable.
Assessment of
contingent liabilities
litigations and
related disclosure of
[Refer to Note 2 (c) to the Standalone Financial Statements– “Use
of estimates and critical accounting judgements – Provisions and
contingent liabilities”, Note 36 (A) to the Standalone Financial
Statements – “Contingencies” and Note 37 to the Standalone
Financial Statements – “Other significant litigations”]
As at March 31, 2019, the Company has exposures towards
litigations relating to various matters as set out
in the
aforesaid Notes.
Significant management judgement is required to assess such
matters to determine the probability of occurrence of material
outflow of economic resources and whether a provision should
be recognised, or a disclosure should be made. The management
judgement is also supported with legal advice in certain cases as
considered appropriate.
As the ultimate outcome of the matters are uncertain and the
positions taken by the management are based on the application
of their best judgement, related legal advice including those
relating to interpretation of laws/regulations, it is considered to be
a Key Audit Matter.
200
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE Key Audit Matter
How our audit addressed the Key Audit Matter
Assessment of carrying value of equity investments in
subsidiaries, associates and joint ventures and fair value of
other investments
[Refer to Note 2 (c) to the Standalone Financial Statements – “Use
of estimates and critical accounting judgements – Impairment
and fair value measurements of financial instruments”, Note 2
(m) to the Standalone Financial Statements – “Investments in
subsidiaries, associates and joint ventures”, Note 2(n)(I) to the
Standalone Financial Statements – “Financial assets”, Note 6 to the
Standalone Financial Statements – “Investments in subsidiaries,
associates and joint ventures”, Note 7 to the Standalone Financial
Statements – “Investments” and Note 39 (b) to the Standalone
Financial Statements – “Fair value hierarchy”]
The Company has equity investments in various subsidiaries,
associates, joint ventures and other companies. It also has made
investments in preference shares in certain subsidiaries/associates
and debentures in a joint venture.
The Company accounts for equity investments in subsidiaries,
associates and joint ventures at cost (subject to impairment
assessment) and other investments at fair value.
For investments carried at cost where an indication of impairment
exists, the carrying value of investment is assessed for impairment
and where applicable an impairment provision is recognised, if
required, to its recoverable amount.
For investments carried at fair values, a fair valuation is done at the
year-end as required by Ind AS 109. In case of certain investments,
cost is considered as an appropriate estimate of fair value since
there is a wide range of possible fair value measurements and
cost represents the best estimate of fair value within that range as
permitted under Ind AS 109.
The accounting for investments is a Key Audit Matter as the
determination of recoverable value for impairment assessment/fair
valuation involves significant management judgement.
impairment assessment and
The
for such
investments have been done by the management in accordance
with Ind AS 36 and Ind AS 113 respectively.
fair valuation
The key inputs and judgements involved in the impairment/fair
valuation assessment of unquoted investments include:
• Forecast cash flows including assumptions on growth rates
• Discount rates
• Terminal growth rate
Economic and entity specific factors are incorporated in valuation
used in the impairment assessment.
Our audit procedures included the following:
• We obtained an understanding from the management, assessed
and tested the design and operating effectiveness of the
Company’s key controls over the impairment assessment and
fair valuation of material investments.
• We evaluated the Company’s process regarding impairment
assessment and fair valuation by involving auditor’s valuation
experts to assist in assessing the appropriateness of the valuation
model including the independent assessment of the underlying
assumptions relating to discount rate, terminal value etc.
• We assessed the carrying value/fair value calculations of
all individually material investments, where applicable, to
determine whether the valuations performed by the Company
were within an acceptable range determined by us and the
auditor’s valuation experts.
• We evaluated the cash flow forecasts (with underlying economic
growth rate) by comparing them to the approved budgets and
our understanding of the internal and external factors.
• We checked the mathematical accuracy of the impairment
model and agreed relevant data back to the latest budgets,
actual past results and other supporting documents.
• We assessed the Company’s sensitivity analysis and evaluated
whether any reasonably foreseeable change in assumptions
could lead to impairment or material change in fair valuation.
• We discussed with the component auditors of certain entities
to develop an understanding of the operating performance
and outlook used in their own valuation model and to assess
consistency with the assumptions used in the model.
• We had discussions with management
to obtain an
understanding of the relevant factors in respect of certain
investments carried at fair value where a wide range of fair
values were possible due to various factors such as absence
of recent observable transactions, restrictions on transfer of
shares, existence of multiple valuation techniques, investee’s
varied nature of portfolio of investments for which significant
estimates/judgements are required to arrive at fair value.
• We evaluated the adequacy of the disclosures made in the
Standalone Financial Statements.
Based on the above procedures performed, we did not identify
any significant exceptions in the management’s assessment in
relation to the carrying value of equity investments in subsidiaries,
associates and joint ventures and fair value of other investments.
201
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Other Information
5.
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
in the Integrated Report, Board’s Report alongwith its Annexures
and Financial Highlights included in the Company’s Annual
Report (titled as ‘Tata Steel Integrated Report & Annual Accounts
2018-19’), but does not include the financial statements and our
auditor’s report thereon.
Our opinion on the Standalone Financial Statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is
materially inconsistent with the Standalone Financial Statements
or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
6.
The Company’s Board of Directors is responsible for the matters
stated in Section 134(5) of the Act with respect to the preparation
of these Standalone Financial Statements that give a true and fair
view of the financial position, financial performance, changes in
equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including
the Accounting Standards specified under Section 133 of the
Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making
judgements and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the Standalone
Financial Statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
7.
In preparing the Standalone Financial Statements, management
is responsible for assessing the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
202
The Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements
8.
9.
Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole are
free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
in the aggregate, they could
material
reasonably be expected to influence the economic decisions
of users
these Standalone
Financial Statements.
the basis of
individually or
taken on
if,
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
Standalone Financial Statements, whether due to fraud or
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under Section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with
reference to Standalone Financial Statements in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the
related disclosures in the Standalone Financial Statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
10.
11.
12.
to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the
Standalone Financial Statements, including the disclosures,
and whether the Standalone Financial Statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Standalone Financial Statements
of the current year and are therefore the Key Audit Matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
13.
As required by the Companies (Auditor’s Report) Order, 2016
(“the Order”), issued by the Central Government of India in
terms of sub-section (11) of Section 143 of the Act, we give in the
Annexure B a statement on the matters specified in paragraphs
3 and 4 of the Order, to the extent applicable.
14. As required by Section 143(3) of the Act, we report that:
(a)
(b)
(c)
We have sought and obtained all the information and
explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
In our opinion, proper books of account as required by law
have been kept by the Company so far as it appears from
our examination of those books.
The Balance Sheet, the Statement of Profit and Loss
(including Other Comprehensive Income), the Statement
of Changes in Equity and the Statement of Cash Flows
dealt with by this Report are in agreement with the
books of account.
(d)
(e)
(f )
(g)
i.
ii.
iii.
In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
specified under Section 133 of the Act.
On the basis of the written representations received from
the directors taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2019
from being appointed as a director in terms of Section 164
(2) of the Act.
With respect to the adequacy of the internal financial
controls with reference to Standalone Financial Statements
of the Company and the operating effectiveness of such
controls, refer to our separate Report in Annexure A.
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the
explanations given to us:
The Company has disclosed the
impact of pending
litigations as on March 31, 2019 on its financial position in
its Standalone Financial Statements – Refer Notes 36 (A)
and 37 to the Standalone Financial Statements.
The Company has long-term contracts including derivative
contracts as on March 31, 2019 for which there were no
material foreseeable losses.
in transferring amounts,
There has been no delay
required to be transferred, to the Investor Education and
Protection Fund by the Company during the year ended
March 31, 2019 except for amounts aggregating to `5.21
crore, which according to the information and explanations
provided by the management is held in abeyance due to
dispute/pending legal cases.
iv.
The reporting on disclosures relating to Specified Bank
Notes is not applicable to the Company for the year ended
March 31, 2019.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
Place: Mumbai
Russell I Parera
Partner
Date: April 25, 2019
Membership Number 042190
203
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT
Referred to in paragraph 14(f) of the Independent Auditor’s
Report of even date to the members of Tata Steel Limited on
the Standalone Financial Statements as of and for the year
ended March 31, 2019
Report on the Internal Financial Controls with reference to
Standalone Financial Statements under Clause (i) of Sub-section
3 of Section 143 of the Companies Act, 2013 (“the Act”)
1.
We have audited the internal financial controls with reference
to Standalone Financial Statements of Tata Steel Limited (“the
Company”) as of March 31, 2019 in conjunction with our audit
of the Standalone Financial Statements of the Company for the
year ended on that date.
Management’s Responsibility for Internal Financial Controls
2.
The Company’s management is responsible for establishing
and maintaining internal financial controls based on the
internal control over financial reporting criteria established
by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (ICAI).
These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to company’s
policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable
financial information, as required under the Act.
Auditor’s Responsibility
3.
Our responsibility is to express an opinion on the Company’s
internal financial controls with reference to Standalone
Financial Statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance
Note”) and the Standards on Auditing deemed to be prescribed
under Section 143(10) of the Act to the extent applicable to
an audit of internal financial controls, both applicable to an
audit of internal financial controls and both issued by the ICAI.
Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal
financial controls with reference to Standalone Financial
Statements was established and maintained and if such controls
operated effectively in all material respects.
4.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
204
system with reference to Standalone Financial Statements and
their operating effectiveness. Our audit of internal financial
controls with reference to Standalone Financial Statements
included obtaining an understanding of internal financial
controls with reference to Standalone Financial Statements,
assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the Standalone Financial
Statements, whether due to fraud or error.
5.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls system with reference to
Standalone Financial Statements.
Meaning of Internal Financial Controls with reference to
financial statements
6.
A company’s internal financial controls with reference to
financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles.
A company’s internal financial controls with reference to financial
statements includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of
the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use or disposition
of the company’s assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls with
reference to financial statements
7.
Because of the inherent limitations of internal financial controls
with reference to financial statements, including the possibility
of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal
financial controls with reference to financial statements to
future periods are subject to the risk that the internal financial
controls with reference to financial statements may become
inadequate because of changes in conditions or that the degree
of compliance with the policies or procedures may deteriorate.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE Opinion
8.
In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to Standalone
Financial Statements and such internal financial controls with reference to Standalone Financial Statements were operating effectively
as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
Place: Mumbai
Date: April 25, 2019
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
Russell I Parera
Partner
Membership Number 042190
205
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT
Referred to in paragraph 13 of the Independent Auditor’s
Report of even date to the members of Tata Steel Limited on
the Standalone Financial Statements as of and for the year
ended March 31, 2019
Management has a verification programme designed to cover
the items over a period of three years. The discrepancies noticed
on physical verification of inventory as compared to book
records were not material.
i.
(a)
The Company is maintaining proper records showing full
particulars, including quantitative details and situation,
of fixed assets.
iii.
(b)
(c)
The fixed assets are physically verified by the Management
according to a phased programme designed to cover all the
items over a period of three years, which, in our opinion,
is reasonable having regard to the size of the Company
and the nature of its assets. Pursuant to the programme,
a portion of the fixed assets has been physically verified
by the Management during the year and no material
discrepancies have been noticed on such verification.
According to the information and explanations given
to us and the records examined by us, the title deeds
of immovable properties, as disclosed in Note 3 on
property, plant and equipment to the Standalone Financial
Statements, are held in the name of the Company, except
for the following:
(i)
(ii)
title deeds of freehold land with gross and net carrying
amount of `60.44 crore and title deeds of buildings
with gross carrying amount and net carrying amount
of `83.48 crore and `74.49 crore respectively, which are
held in the name of erstwhile companies which have
subsequently been amalgamated with the Company;
title deeds of freehold land with gross and net carrying
amount of `202.67 crore and title deeds of buildings
with gross carrying amount and net carrying amount
of `95.62 crore and `76.91 crore respectively, which
are not readily available.
The Company has granted unsecured loans, to eleven companies
covered in the register maintained under Section 189 of the Act.
The Company has not granted any loans, secured or unsecured,
to firms, Limited Liability Partnerships or other parties covered
in the register maintained under Section 189 of the Act.
(a)
(b)
(c)
In respect of the aforesaid loans, the terms and conditions
under which such loans were granted are not prejudicial
to the Company’s interest except for two inter corporate
loans aggregating `0.52 crore granted to two joint venture
companies during the year ended March 31, 2019, with
a maximum amount of `1.12 crore from the aforesaid
joint venture companies outstanding during the year.
These companies are under liquidation, and are therefore
in our opinion prejudicial to the Company’s interests.
In respect of the aforesaid loans, the schedule of repayment
of principal and payment of interest has been stipulated
by the Company. Except for amounts aggregating `670.10
crore outstanding as at March 31, 2019 towards principal
and interest from four subsidiary companies and two joint
venture companies, the parties are repaying the principal
amounts, as stipulated, and are also regular in payment of
interest as applicable.
In respect of the aforesaid loans, the total amount overdue
for more than ninety days as at March 31, 2019 is `640.58
from three subsidiary companies
crore outstanding
and a joint venture company. In such instances, in our
opinion, reasonable steps, as applicable, have been
taken by the Company for the recovery of the principal
amounts and interest.
ii.
The physical verification of inventory (excluding stocks with
third parties) have been conducted at reasonable intervals by
the Management during the year. In respect of inventory lying
with third parties, these have substantially been confirmed
by them. In respect of inventories of stores and spares, the
iv.
In our opinion, and according to the
information and
explanations given to us, the Company has complied with the
provisions of Section 185 and 186 of the Act in respect of the
loans and investments made, and guarantees and security
provided by it, as applicable.
206
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
v.
vi.
The Company has not accepted any deposits from the public
within the meaning of Sections 73, 74, 75 and 76 of the Act
and the Rules framed there under to the extent notified. In our
opinion, and according to the information and explanations
given to us, the Company has complied with the provisions of
Sections 73, 74, 75 and 76 or any other relevant provisions of the
Act and the Rules framed thereunder to the extent notified, with
regard to the unclaimed deposits accepted from the public, as
applicable. According to the information and explanations given
to us, no order has been passed by the Company Law Board or
National Company Law Tribunal or Reserve Bank of India or any
Court or any other Tribunal on the Company in respect of the
aforesaid deposits.
Pursuant to the rules made by the Central Government of India,
the Company is required to maintain cost records as specified
under Section 148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the opinion that,
prima facie, the prescribed accounts and records have been
made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether
they are accurate or complete.
vii.
(a) According to the information and explanations given to
us and the records of the Company examined by us, in our
opinion, the Company is generally regular in depositing
undisputed statutory dues in respect of provident fund,
income tax, goods and service tax, though there has been
a slight delay in a few cases, and is regular in depositing
undisputed statutory dues,
including employees’ state
insurance, sales tax, service tax, duty of customs, duty of
excise, value added tax, cess, and other material statutory
dues, as applicable, with the appropriate authorities, other
than arrear dues outstanding for a period of more than six
months as at March 31, 2019 in respect of pension set out
below. We are informed that the Company has applied for
exemption from operations of Employees’ State Insurance
Act at some locations. We are also informed that actions
taken by the authorities at some locations to bring the
employees of the Company under the Employees’ State
Insurance Scheme has been contested by the Company and
payment has not been made of the contributions demanded.
The extent of the arrears of statutory dues outstanding as at
March 31, 2019, for a period of more than six months from
the date they became payable are as follows:
Name of the
statute
Nature of
dues
Amount
(` crore)
Period to which the
amount relates
Date of
payment
Coal Mines
Pension
Scheme, 1998
Pension
29.43 Oct’17 to Sept’18 April 23,
2019*
*Writ petition filed with High Court of Jharkhand subsequent to the balance
sheet date on April 24, 2019.
Also refer Note 42 to the Standalone Financial Statements
regarding management’s assessment on certain matters relating to
provident fund.
207
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 (b)
According to the information and explanations given to us and the records of the Company examined by us, there are no dues of goods
and service tax as at March 31, 2019 which have not been deposited on account of any dispute. The particulars of dues of income tax, sales
tax, service tax, duty of customs, duty of excise and value added tax as at March 31, 2019, which have not been deposited on account of a
dispute, are as follows:
Amount paid
(` crore)
Period to which the
amount relates
Forum where the
dispute is pending
Name of the Statute
Nature of dues
Income- tax Act, 1961
Income Tax
Amount
(net of payments)
(` crore)
1,427.24*
Customs Act,1962
Customs Duty
Central Excise Act,1944
Excise Duty
Sales Tax Laws
Sales Tax
235.82
3.95
79.67
33.23
1,132.71
170.30
0.03
0.18
0.85
33.90
71.78
965.00*
100.00
0.07
50.00
0.10
57.85
111.63
0.01
-
-
19.22
6.19
Value Added Tax Laws
Value Added Tax
247.17
7.06
1.91
28.18
63.97
61.77
252.84
19.06
273.75
72.89
2.61
165.39
1.63
-
2.47
3.01
3.40
1.07
1.72
0.89
8.10
0.47
3.72
0.06
1998-1999, 2006-2008,
2009-2012, 2013-2014
2010-2011, 2014-2015
2002-2003
2005-2008
1988-1990, 2003-2009
1990-1991, 1992-1997,
1998-2017
1988-1990, 1994-2002,
2003-2004, 2005-2017
1998-1999
1985-1987, 1998-1999
1983-1985
1983-1984, 1991-1997,
2000-2004, 2008-2009
1977-1978, 1980-1981,
1983-1985, 1987-1988,
1989-1999, 2000-2002,
2003-2005, 2009-2011,
2013-2017
1988-1990, 1991-1992,
1993-1994, 2001-2004,
2006-2007, 2008-2009,
2010-2012, 2013-2015
2011-12
2002-2003, 2006-2010,
2012-2015
1975-1976, 1983-1988,
1994-1995, 1997-2009,
2013-2016
1973-1974, 1980-1997,
2004-2005, 2008-2009,
2012-2013, 2015-2016
1994-1996, 2007-2008,
2012-2016
2005-2011, 2012-2016
2006-2015, 2016-2017
2010-2017
2005-2006, 2012-2015
2005-2011, 2012-2016
1997-1998, 2005-2006,
2015-2017
Tribunal
Commissioner (Appeals)
High Court
Commissioner
High Court
Tribunal
Commissioner
Joint Commissioner
Deputy Commissioner
Assistant Commissioner
High Court
Tribunal
Commissioner
Joint Commissioner
Additional Commissioner
Deputy Commissioner
Assistant Commissioner
High Court
Tribunal
Commissioner
Joint Commissioner
Additional Commissioner
Deputy Commissioner
Assistant Commissioner
*excluding net excess payments/adjustments for the year 2008-2009 aggregating `123.21 crore.
208
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE Name of the Statute
Nature of dues
Finance Act,1994
Service Tax
Amount
(net of payments)
(` crore)
1,286.52
5.98
0.97
Amount paid
(`crore)
Period to which the
amount relates
Forum where the
dispute is pending
23.34
0.13
-
2004-2016
2005-2013, 2014-2017
2009-2010
Tribunal
Commissioner
Deputy Commissioner
The following matters have been decided in favour of the Company although the department has preferred appeal at higher levels:
Name of the Statute
Nature of dues
Central Excise Act,1944
Excise Duty
Amount
(net of payments)
(` crore)
235.48
16.98
Period to which the
amount relates
Forum where the
dispute is pending
2004-2005
2009-2010, 2013-2014
Supreme Court
Tribunal
viii. According to the records of the Company examined by us and
the information and explanations given to us, the Company
has not defaulted in repayment of loans or borrowings to
any financial institution or bank or Government or dues to
debenture holders, as applicable, as at the balance sheet date.
The Company has not raised any moneys by way of initial public
offer. In our opinion, and according to the information and
explanations given to us, the moneys raised by way of further
public offer (including debt instruments) and term loans have
been applied for the purposes for which they were obtained.
During the course of our examination of the books and records
of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the
information and explanations given to us, we have neither come
across any instance of material fraud by the Company or on
the Company by its officers or employees, noticed or reported
during the year, nor have we been informed of any such case by
the Management.
The Company has paid/ provided for managerial remuneration
in accordance with the requisite approvals mandated by the
provisions of Section 197 read with Schedule V to the Act.
ix.
x.
xi.
xii.
disclosed in the Standalone Financial Statements as required
under Indian Accounting Standard 24, Related Party Disclosures
specified under Section 133 of the Act.
xiv.
xv.
The Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures
during the year under review. Accordingly, the provisions of
Clause 3(xiv) of the Order are not applicable to the Company.
The Company has not entered into any non-cash transactions
with
its directors or persons connected with him.
Accordingly, the provisions of Clause 3(xv) of the Order are not
applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA
of the Reserve Bank of India Act, 1934. Accordingly, the provisions
of Clause 3(xvi) of the Order are not applicable to the Company.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
As the Company is not a Nidhi Company and the Nidhi Rules,
2014 are not applicable to it, the provisions of Clause 3(xii) of the
Order are not applicable to the Company.
Place: Mumbai
Russell I Parera
Partner
xiii. The Company has entered into transactions with related parties
in compliance with the provisions of Sections 177 and 188 of
the Act. The details of related party transactions have been
Date: April 25, 2019
Membership Number 042190
209
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 BALANCE SHEET
as at March 31, 2019
Assets
I
Non-current assets
(a) Property, plant and equipment
(b) Capital work-in-progress
(c)
(d)
(e)
(f ) Financial assets
Intangible assets
Intangible assets under development
Investments in subsidiaries, associates and joint ventures
Investments
(i)
(ii) Loans
(iii) Derivative assets
(iv) Other financial assets
(g) Non-current tax assets (net)
(h) Other assets
Total non-current assets
Current assets
Inventories
(a)
(b) Financial assets
II
(i)
Investments
(ii) Trade receivables
(iii) Cash and cash equivalents
(iv) Other balances with banks
(v) Loans
(vi) Derivative assets
(vii) Other financial assets
(c) Other assets
Total current assets
Total assets
Equity and liabilities
III Equity
(a) Equity share capital
(b) Hybrid perpetual securities
(c) Other equity
Total equity
IV Non-current liabilities
(a) Financial liabilities
(i) Borrowings
(ii) Derivative liabilities
(iii) Other financial liabilities
(b) Provisions
(c) Retirement benefit obligations
(d) Deferred income
(e) Deferred tax liabilities (net)
(f ) Other liabilities
Total non-current liabilities
Current liabilities
(a) Financial liabilities
(i) Borrowings
(ii) Trade payables
V
(a) Total outstanding dues of micro and small enterprises
(b) Total outstanding dues of creditors other than micro and small enterprises
Note
Page
As at
March 31, 2019
As at
March 31, 2018
(` crore)
3
5
6
7
8
9
11
12
7
13
14
15
8
9
11
16
17
18
19
20
21
22
23
10
24
19
25
20
21
22
24
227
231
232
235
240
242
246
248
235
248
250
250
240
242
246
251
254
254
258
261
261
262
263
243
263
258
264
261
261
262
263
70,416.82
5,686.02
805.20
110.27
4,437.76
34,491.49
231.16
9.05
310.65
1,428.38
2,535.98
1,20,462.78
11,255.34
477.47
1,363.04
544.85
173.26
55.92
14.96
940.76
2,209.98
17,035.58
1,37,498.36
1,146.12
2,275.00
69,308.59
72,729.71
26,651.19
59.82
125.07
1,918.18
1,430.35
747.23
7,807.00
436.16
39,175.00
70,942.90
5,641.50
786.18
31.77
3,666.24
5,970.32
213.50
12.13
21.21
1,043.84
2,140.84
90,470.43
11,023.41
14,640.37
1,875.63
4,588.89
107.85
74.13
30.07
491.51
1,812.05
34,643.91
1,25,114.34
1,146.12
2,275.00
60,368.72
63,789.84
24,568.95
70.08
19.78
1,961.21
1,247.73
1,365.61
6,259.09
224.71
35,717.16
8.09
669.88
149.49
10,820.07
139.57
6,872.35
778.23
102.12
358.14
6,365.59
25,593.65
1,37,498.36
25.48
11,217.27
16.41
6,541.40
735.28
90.50
454.06
5,857.06
25,607.34
1,25,114.34
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
(iii) Derivative liabilities
(iv) Other financial liabilities
(b) Provisions
(c) Retirement benefit obligations
(d) Current tax liabilities (net)
(e) Other liabilities
Total current liabilities
Total equity and liabilities
Notes forming part of the financial statements
In terms of our report attached
For Price Waterhouse & Co Chartered Accountants LLP
For and on behalf of the Board of Directors
1-46
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
210
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
STATEMENT OF PROFIT AND LOSS
for the year ended March 31, 2019
Revenue from operations
I
II Other income
III Total income
IV Expenses:
Changes in inventories of finished and semi-finished goods, stock-in-trade and work-in-progress
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c)
(d) Employee benefits expense
(e) Finance costs
(f ) Depreciation and amortisation expense
(g) Other expenses
Less: Expenditure (other than interest) transferred to capital and other accounts
Total expenses
Profit before exceptional items and tax (III-IV)
V
VI Exceptional items:
(a) Profit/(loss) on sale of non-current investments
(b) Provision for impairment of investments/doubtful advances
(c) Provision for demands and claims
(d) Employee separation compensation
Total exceptional items
VII Profit before tax (V+VI)
VIII Tax expense:
(a) Current tax
(b) Deferred tax
Total tax expense
IX Profit for the year (VII-VIII)
X Other comprehensive income/(loss)
A
(i)
B
(ii)
(i)
(ii)
Remeasurement gain/(loss) on post-employment defined benefit plans
Fair value changes of investments in equity shares
Items that will not be reclassified subsequently to profit and loss
(a)
(b)
Income tax on items that will not be reclassified subsequently to profit and loss
Items that will be reclassified subsequently to profit and loss
(a) Fair value changes of cash flow hedges
Income tax on items that will be reclassified subsequently to profit and loss
Total other comprehensive income/(loss) for the year
XI Total comprehensive income/(loss) for the year (IX+X)
XII Earnings per share
Basic (`)
Diluted (`)
XIII Notes forming part of the financial statements
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
70,610.92
2,405.08
73,016.00
19,840.29
1,807.85
(554.33)
5,131.06
2,823.58
3,802.96
24,622.81
57,474.22
799.70
56,674.52
16,341.48
262.28
(12.53)
(328.64)
(35.34)
(114.23)
16,227.25
6,297.11
(603.05)
5,694.06
10,533.19
5.95
(46.63)
(2.63)
(10.62)
3.71
(50.22)
10,482.97
90.41
90.40
60,519.37
763.66
61,283.03
16,877.63
647.21
545.36
4,828.85
2,810.62
3,727.46
22,178.02
51,615.15
336.66
51,278.49
10,004.54
-
(62.92)
(3,213.68)
(89.69)
(3,366.29)
6,638.25
1,586.78
881.92
2,468.70
4,169.55
237.63
(223.00)
(82.24)
9.96
(3.47)
(61.12)
4,108.43
38.57
38.56
Note
Page
26
27
264
265
28
29
30
31
32
266
266
267
267
267
33
268
34
269
1 - 46
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
211
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
STATEMENT OF CHANGES IN EQUITY
for the year ended March 31, 2019
A. Equity share capital
Balance as at
April 1, 2018
1,146.12
Balance as at
April 1, 2017
971.41
* represents value less than `0.01 crore.
B. Hybrid perpetual securities
Balance as at
April 1, 2018
2,275.00
Balance as at
April 1, 2017
2,275.00
C. Other equity
Changes
during the year
0.00*
Changes
during the year
174.71
Changes
during the year
-
Changes
during the year
-
Retained
earnings
(refer note 18A,
page 254)
Items of other
comprehensive
income
(refer note 18B,
page 254)
Other reserves
(refer note 18C,
page 256)
Share application
money pending
allotment
(refer note 18D,
page 257)
Balance as at April 1, 2018
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Issue of Ordinary Shares
Equity issue expenses written (off )/back
Dividend(i)
Tax on dividend
Distribution on hybrid perpetual securities
Tax on distribution on hybrid perpetual securities
Transfers within equity
Application money received
Balance as at March 31, 2019
18,700.25
10,533.19
3.88
10,537.07
-
-
(1,145.92)
(224.86)
(266.12)
92.99
1.49
-
27,694.90
108.86
-
(54.10)
(54.10)
-
-
-
-
-
-
(1.49)
-
53.27
41,559.59
-
-
-
0.26
0.57
-
-
-
-
-
-
41,560.42
0.02
-
-
-
(0.26)
-
-
-
-
-
-
0.24
-
212
(` crore)
Balance as at
March 31, 2019
1,146.12
(` crore)
Balance as at
March 31, 2018
1,146.12
(` crore)
Balance as at
March 31, 2019
2,275.00
(` crore)
Balance as at
March 31, 2018
2,275.00
(` crore)
Total
60,368.72
10,533.19
(50.22)
10,482.97
-
0.57
(1,145.92)
(224.86)
(266.12)
92.99
-
0.24
69,308.59
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE STATEMENT OF CHANGES IN EQUITY (CONTD.)
for the year ended March 31, 2019
Retained
earnings
(refer note
18A,
page 254)
12,280.91
4,169.55
155.39
4,324.94
-
-
(971.22)
(188.41)
(266.13)
92.70
3,427.46
-
18,700.25
Items of other
comprehensive
income
(refer note 18B,
page 254)
Other reserves
(refer note 18C,
page 256
Share application
money pending
allotment
(refer note 18D,
page 257)
3,752.83
-
(216.51)
(216.51)
-
-
-
-
-
-
(3,427.46)
-
108.86
32,653.85
-
-
-
8,939.59
(33.85)
-
-
-
-
-
-
41,559.59
0.01
-
-
-
(0.01)
-
-
-
-
-
-
0.02
0.02
(` crore)
Total
48,687.60
4,169.55
(61.12)
4,108.43
8,939.58
(33.85)
(971.22)
(188.41)
(266.13)
92.70
-
0.02
60,368.72
Balance as at April 1, 2017
Profit for the year
Other comprehensive income for the year
Total comprehensive income for the year
Issue of Ordinary Shares(ii)
Equity issue expenses written (off )/back(ii)
Dividend(i)
Tax on dividend
Distribution on hybrid perpetual securities
Tax on distribution on hybrid perpetual securities
Transfers within equity
Application money received
Balance as at March 31, 2018
(i)
Dividend paid during the year ended March 31, 2019 is `10.00 per Ordinary Share (face value `10 each, fully paid up) and `2.504 per
Ordinary Share (face value `10, partly paid up `2.504 per share) (March 31, 2018: `10.00 per Ordinary Share of face value `10 each, fully paid up).
(ii) Represents premium received and issue expenses on rights issue of shares during the year ended March 31, 2018.
D. Notes forming part of the financial statements
Note 1-46
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
213
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
STATEMENT OF CASH FLOWS
for the year ended March 31, 2019
A. Cash flows from operating activities:
Profit before tax
Adjustments for:
Depreciation and amortisation expense
Dividend income
(Gain)/loss on sale of property, plant and equipment including intangible assets
(net of loss on assets sold/scrapped/written off )
Exceptional (income)/expenses
(Gain)/loss on cancellation of forwards, swaps and options
Interest income and income from current investments and guarantees
Finance costs
Exchange (gain)/loss on revaluation of foreign currency loans and swaps
Other non-cash items
Operating profit before changes in non-current/current assets and liabilities
Adjustments for:
Non-current/current financial and other assets
Inventories
Non-current/current financial and other liabilities/provisions
Cash generated from operations
Income taxes paid
Net cash from/(used in) operating activities
B. Cash flows from investing activities:
Purchase of capital assets
Sale of capital assets
Purchase of investments in subsidiaries(i)
Purchase of other non-current investments
Sale of other non-current investments
(Purchase)/sale of current investments (net)
Loans given
Repayment of loans given
Fixed/restricted deposits with banks (placed)/realised
Interest and guarantee commission received
Dividend received from subsidiaries
Dividend received from associates and joint ventures
Dividend received from others
Net cash from/(used in) investing activities
Year ended
March 31, 2019
(` crore)
Year ended
March 31, 2018
16,227.25
6,638.25
3,802.96
(96.25)
1.42
114.23
(36.95)
(2,273.30)
2,823.58
(1.27)
(612.79)
(611.22)
(214.60)
602.59
(3,676.86)
18.94
(29,076.49)
(403.02)
306.63
14,759.69
(18,908.41)
18,914.72
(78.29)
1,696.86
39.38
38.62
18.25
3,727.46
(88.57)
40.48
3,366.29
79.33
(788.38)
2,810.62
(88.17)
(588.33)
3,721.63
19,948.88
8,470.73
15,108.98
456.70
(784.63)
(487.09)
(223.23)
19,725.65
(4,532.54)
15,193.11
(815.02)
14,293.96
(2,502.51)
11,791.45
(2,527.46)
13.28
(5,018.88)
-
3,877.78
(8,650.92)
(622.68)
487.61
(13.32)
92.67
30.31
41.06
17.20
(16,349.98)
(12,273.35)
214
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
STATEMENT OF CASH FLOWS (CONTD.)
for the year ended March 31, 2019
C. Cash flows from financing activities:
Proceeds from issue of equity shares (net of issue expenses (ii))
Proceeds from borrowings
Repayment of borrowings
Repayment of finance lease obligations
Amount received/(paid) on utilisation/cancellation of derivatives
Distribution on hybrid perpetual securities
Interest paid
Dividend paid
Tax on dividend paid
Net cash from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Opening cash and cash equivalents (refer note 14, page 250)
Closing cash and cash equivalents (refer note 14, page 250)
Year ended
March 31, 2019
(` crore)
Year ended
March 31, 2018
(6.03)
5,884.67
(4,448.06)
(89.25)
15.55
(265.39)
(2,607.88)
(1,145.92)
(224.86)
9,087.23
2,343.84
(2,850.24)
(108.14)
(110.72)
(267.10)
(2,769.66)
(971.22)
(188.41)
(2,887.17)
(4,044.04)
4,588.89
544.85
4,165.58
3,683.68
905.21
4,588.89
(i)
Includes investments in preference shares `28,686.09 crore (2017-18: `4,646.55 crore).
(ii)
During the year ended March 31, 2018, expenses incurred in connection with Rights Issue, 2018 was partly paid by the Company and was
pending adjustment against actual utilisation from the issue proceeds. The same has been fully utilised during the year.
(iii) Significant non-cash movements in borrowings during the year include:
(a) amortisation/effective interest rate adjustments of upfront fees `204.23 crore (2017-18: `206.88 crore).
(b) exchange loss `59.12 crore (2017-18: loss `149.90 crore).
(c) adjustments to finance leases obligations, decrease `34.35 crore (2017-18: increase `110.37 crore).
D. Notes forming part of the financial statements
Note 1-46
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
215
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
1. Company information
Tata Steel Limited (“the Company”) is a public limited Company
incorporated in India with its registered office in Mumbai,
Maharashtra, India. The Company is listed on the BSE Limited
(BSE) and the National Stock Exchange of India Limited (NSE).
The Company has presence across the entire value chain of steel
manufacturing from mining and processing iron ore and coal
to producing and distributing finished products. The Company
offers a broad range of steel products including a portfolio of
high value added downstream products such as hot rolled, cold
rolled, coated steel, rebars, wire rods, tubes and wires.
The functional and presentation currency of the Company is
Indian Rupee (“`”) which is the currency of the primary economic
environment in which the Company operates.
As on March 31, 2019, Tata Sons Private Limited owns 31.64 %
of the Ordinary Shares of the Company, and has the ability to
influence the Company’s operations.
The financial statements for the year ended March 31, 2019 were
approved by the Board of Directors and authorised for issue on
April 25, 2019.
2. Significant accounting policies
The significant accounting policies applied by the Company
in the preparation of its financial statements are listed below.
Such accounting policies have been applied consistently to
all the periods presented in these financial statements, unless
otherwise indicated.
(a) Statement of compliance
The financial statements have been prepared in accordance
with the Indian Accounting Standards (referred to as “Ind
AS”) prescribed under Section 133 of the Companies Act,
2013 read with Companies (Indian Accounting Standards)
Rules, as amended from time to time and other relevant
provisions of the Act.
(b) Basis of preparation
The financial statements have been prepared under the historical
cost convention with the exception of certain assets and
liabilities that are required to be carried at fair value by Ind AS.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
(c) Use of estimates and critical accounting judgements
In the preparation of the financial statements, the Company
makes judgements, estimates and assumptions about the
216
carrying value of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and future
periods affected.
Key source of estimation of uncertainty at the date of the
financial statements, which may cause material adjustment
to the carrying amounts of assets and liabilities within the
next financial year, is in respect of impairment, useful lives of
property, plant and equipment and intangible assets, valuation
of deferred tax assets, provisions and contingent liabilities, fair
value measurements of financial instruments and retirement
benefit obligations as discussed below.
Impairment
The Company estimates the value in use of the cash generating
unit (CGU) based on future cash flows after considering current
economic conditions and trends, estimated future operating
results and growth rates and anticipated future economic and
regulatory conditions. The estimated cash flows are developed
using internal forecasts. The cash flows are discounted using a
suitable discount rate in order to calculate the present value.
Further details of the Company’s impairment review and key
assumptions are set out in note 3, page 227, note 5, page 231and
note 6, page 232.
Useful lives of property, plant and equipment and
intangible assets
The Company reviews the useful life of property, plant and
equipment and intangible assets at the end of each reporting
period. This reassessment may result in change in depreciation
and amortisation expense in future periods. The policy has been
detailed in note 2(i), page 218.
Valuation of deferred tax assets
The Company reviews the carrying amount of deferred
tax assets at
reporting period.
The policy has been detailed
in note 2 (u), page 224
and its further information are set out in note 10, page 243.
the end of each
Provisions and contingent liabilities
A provision is recognised when the Company has a present
obligation as result of a past event and
is probable
that the outflow of resources will be required to settle
in respect of which a reliable estimate
the obligation,
it
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
2. Significant accounting policies (Contd.)
can be made. These are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
in the financial
Contingent
statements. Further details are set out in note 21, page 261 and
note 36A, page 276.
liabilities are not recognised
Fair value measurements of financial instruments
When the fair value of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured
using valuation techniques including Discounted Cash Flow
Model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair value.
Judgements include considerations of inputs such as liquidity
risks, credit risks and volatility. Changes in assumptions about
these factors could affect the reported fair value of financial
instruments. Further details are set out in note 39, page 281.
Retirement benefit obligations
The Company’s retirement benefit obligations are subject to
number of judgements including discount rates, inflation and
salary growth. Significant judgements are required when setting
these criteria and a change in these assumptions would have a
significant impact on the amount recorded in the Company’s
balance sheet and the statement of profit and loss. The Company
sets these judgements based on previous experience and
third party actuarial advice. Further details on the Company’s
retirement benefit obligations, including key judgements are
set out in note 35, page 269.
(d) Property, plant and equipment
An item of property, plant and equipment is recognised as an asset
if it is probable that future economic benefits associated with
the item will flow to the Company and its cost can be measured
reliably. This recognition principle is applied to costs incurred
initially to acquire an item of property, plant and equipment and
also to costs incurred subsequently to add to, replace part of,
or service it. All other repair and maintenance costs, including
regular servicing, are recognised in the statement of profit and
loss as incurred. When a replacement occurs, the carrying value
of the replaced part is de-recognised. Where an item of property,
plant and equipment comprises major components having
different useful lives, these components are accounted for as
separate items.
Property, plant and equipment is stated at cost or deemed cost
applied on transition to Ind AS, less accumulated depreciation
and impairment. Cost includes all direct costs and expenditures
incurred to bring the asset to its working condition and location
for its intended use. Trial run expenses (net of revenue) are
capitalised. Borrowing costs incurred during the period of
construction is capitalised as part of cost of qualifying asset.
The gain or loss arising on disposal of an item of property, plant
and equipment is determined as the difference between sale
proceeds and carrying value of such item, and is recognised in
the statement of profit and loss.
(e) Exploration for and evaluation of mineral resources
Expenditures associated with search for specific mineral
resources are recognised as exploration and evaluation assets.
The following expenditure comprises cost of exploration and
evaluation assets:
• obtaining of the rights to explore and evaluate mineral
reserves and resources including costs directly related to
this acquisition
• researching and analysing existing exploration data
• conducting
geological
studies,
exploratory
drilling and sampling
• examining and testing extraction and treatment methods
• compiling pre-feasibility and feasibility studies
• activities in relation to evaluating the technical feasibility and
commercial viability of extracting a mineral resource
Administration and other overhead costs are charged to the cost
of exploration and evaluation assets only if directly related to an
exploration and evaluation project.
If a project does not prove viable, all irrecoverable exploration
and evaluation expenditure associated with the project net
of any related impairment allowances is written off to the
statement of profit and loss.
The Company measures its exploration and evaluation assets
at cost and classifies as property, plant and equipment or
intangible assets according to the nature of the assets acquired
and applies the classification consistently. To the extent that a
tangible asset is consumed in developing an intangible asset,
the amount reflecting that consumption is capitalised as a part
of the cost of the intangible asset.
As the asset is not available for use, it is not depreciated.
All exploration and evaluation assets are monitored for
indications of impairment. An exploration and evaluation asset
is no longer classified as such when the technical feasibility
and commercial viability of extracting a mineral resource are
demonstrable and the development of the deposit is sanctioned
217
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
by the management. The carrying value of such exploration and
evaluation asset is reclassified to mining assets.
(f) Development expenditure for mineral reserves
and
other
is the establishment of access to mineral
Development
reserves
commercial
production. Development activities often continue during
production and include:
• sinking shafts and underground drifts
(often called
preparations
for
mine development)
• making permanent excavations
• developing passageways and rooms or galleries
• building roads and tunnels and
• advance removal of overburden and waste rock
Development (or construction) also includes the installation
of infrastructure (e.g., roads, utilities and housing), machinery,
equipment and facilities.
Development expenditure is capitalised and presented as part of
mining assets. No depreciation is charged on the development
expenditure before the start of commercial production.
(g) Provision for restoration and environmental costs
Company. In this case they are measured initially at purchase
cost and then amortised on a straight-line basis over their
estimated useful lives. All other costs on patents, trademarks
and software are expensed in the statement of profit and loss as
and when incurred.
Expenditure on research activities is recognised as an expense
in the period in which it is incurred. Costs incurred on individual
development projects are recognised as intangible assets from
the date when all of the following conditions are met:
(i)
completion of the development is technically feasible.
(ii)
it is the intention to complete the intangible asset and
use or sell it.
(iii) ability to use or sell the intangible asset.
(iv) it is clear that the intangible asset will generate probable
future economic benefits.
(v)
adequate technical, financial and other resources to
complete the development and to use or sell the intangible
asset are available.
(vi) it
is possible to reliably measure the expenditure
attributable to the intangible asset during its development.
Recognition of costs as an asset is ceased when the project is
complete and available for its intended use, or if these criteria
are no longer applicable.
The Company has liabilities related to restoration of soil and
other related works, which are due upon the closure of certain
of its mining sites.
Where development activities do not meet the conditions for
recognition as an asset, any associated expenditure is treated as
an expense in the period in which it is incurred.
local
taking
into account applicable
Such liabilities are estimated case-by-case based on available
information,
legal
requirements. The estimation is made using existing technology,
at current prices, and discounted using an appropriate discount
rate where the effect of time value of money is material.
Future restoration and environmental costs, discounted to
net present value, are capitalised and the corresponding
restoration liability is raised as soon as the obligation to incur
such costs arises. Future restoration and environmental costs are
capitalised in property, plant and equipment or mining assets
as appropriate and are depreciated over the life of the related
asset. The effect of time value of money on the restoration and
environmental costs liability is recognised in the statement of
profit and loss.
(h) Intangible assets
Patents, trademarks and software costs are included in the
balance sheet as intangible assets when it is probable that
associated future economic benefits would flow to the
218
initial recognition,
Subsequent to
intangible assets with
definite useful lives are reported at cost or deemed cost applied
on transition to Ind AS, less accumulated amortisation and
accumulated impairment losses.
(i)
Depreciation and amortisation of property, plant and
equipment and intangible assets
Depreciation or amortisation is provided so as to write off, on
a straight-line basis, the cost/deemed cost of property, plant
and equipment and intangible assets, including those held
under finance leases to their residual value. These charges
are commenced from the dates the assets are available for
their intended use and are spread over their estimated useful
economic lives or, in the case of leased assets, over the lease
period, if shorter. The estimated useful lives of assets, residual
values and depreciation method are reviewed regularly and,
when necessary, revised.
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
2. Significant accounting policies (Contd.)
Depreciation on assets under construction commences only
when the assets are ready for their intended use.
The estimated useful lives for main categories of property, plant
and equipment and intangible assets are:
Buildings
Roads
Plant and machinery
Railway sidings
Vehicles and aircraft
Furniture, fixtures and office equipments
Computer software
Assets covered under Electricity Act (life as
prescribed under the Electricity Act)
Estimated useful
life (years)
upto 60 years*
5 years
upto 40 years*
upto 35 years*
5 to 20 years
4 to 6 years
5 years
3 to 34 years
Mining assets are amortised over the useful life of the mine or
lease period whichever is lower.
Major furnace relining expenses are depreciated over a period of
10 years (average expected life).
Freehold land is not depreciated.
Assets value upto `25,000 are fully depreciated in the year
of acquisition.
*For these class of assets, based on internal assessment and
independent technical evaluation carried out by chartered
engineers, the Company believes that the useful lives as given
above best represents the period over which the Company
expects to use these assets. Hence the useful lives for these
assets are different from the useful lives as prescribed under Part
C of Schedule II of the Companies Act, 2013.
(j)
Impairment
At each balance sheet date, the Company reviews the carrying
value of its property, plant and equipment and intangible
assets to determine whether there is any indication that the
carrying value of those assets may not be recoverable through
continuing use. If any such indication exists, the recoverable
amount of the asset is reviewed in order to determine the extent
of impairment loss, if any. Where the asset does not generate
cash flows that are independent from other assets, the Company
estimates the recoverable amount of the cash generating unit to
which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell
and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
An impairment loss is recognised in the statement of profit
and loss as and when the carrying value of an asset exceeds its
recoverable amount.
Where an impairment loss subsequently reverses, the carrying
value of the asset (or cash generating unit) is increased to the
revised estimate of its recoverable amount so that the increased
carrying value does not exceed the carrying value that would
have been determined had no impairment loss been recognised
for the asset (or cash generating unit) in prior years. A reversal of
an impairment loss is recognised in the statement of profit and
loss immediately.
(k) Leases
The Company determines whether an arrangement contains
a lease by assessing whether the fulfilment of a transaction
is dependent on the use of a specific asset and whether the
transaction conveys the right to use that asset to the Company
in return for payment. Where this occurs, the arrangement is
deemed to include a lease and is accounted for either as finance
or an operating lease.
Leases are classified as finance leases where the terms of the
lease transfer substantially all the risks and rewards of ownership
to the lessee. All other leases are classified as operating leases.
The Company as lessee
(i)
Operating lease – Rentals payable under operating leases are
charged to the statement of profit and loss on a straight-line
basis over the term of the relevant lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
Contingent rentals arising under operating leases are recognised
as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into
operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction
of rental expense on a straight-line basis, except where another
systematic basis is more representative of the time pattern in
which economic benefits from the leased asset are consumed.
(ii)
lease – Finance
Finance
leases are capitalised at the
commencement of lease, at the lower of fair value of the
asset or the present value of the minimum lease payments.
The corresponding liability to the lessor is included in the
balance sheet as a finance lease obligation. Lease payments
are apportioned between finance charges and reduction of
the lease obligation so as to achieve a constant rate of interest
219
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
on the remaining balance of the liability. Finance charges
are recognised in the statement of profit and loss over the
period of the lease.
The Company as lessor
(i)
(ii)
Operating lease – Rental income from operating leases is
recognised in the statement of profit and loss on a straight-line
basis over the term of the relevant lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased asset is diminished.
Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying value of the leased
asset and recognised on a straight-line basis over the lease term.
Finance lease –When assets are leased out under a finance lease,
the present value of minimum lease payments is recognised as a
receivable. The difference between the gross receivable and the
present value of receivable is recognised as unearned finance
income. Lease income is recognised over the term of the lease
using the net investment method before tax, which reflects a
constant periodic rate of return.
(l) Stripping costs
The Company separates two different types of stripping costs
that are incurred in surface mining activity:
• developmental stripping costs and
• production stripping costs
Developmental stripping costs which are incurred in order
to obtain access to quantities of mineral reserves that will be
mined in future periods are capitalised as part of mining assets.
Capitalisation of developmental stripping costs ends when the
commercial production of the mineral reserves begins.
A mine can operate several open pits that are regarded
as separate operations for the purpose of mine planning
and production. In this case, stripping costs are accounted
for separately, by reference to the ore extracted from each
separate pit. If, however, the pits are highly integrated for the
purpose of mine planning and production, stripping costs are
aggregated too.
The determination of whether multiple pit mines are considered
separate or integrated operations depends on each mine’s
specific circumstances. The following factors normally point
towards the stripping costs for the individual pits being
accounted for separately:
220
• mining of the second and subsequent pits is conducted
consecutively with that of the first pit, rather than concurrently
• separate
investment decisions are made
to develop
each pit, rather than a single investment decision being
made at the outset
• the pits are operated as separate units in terms of mine
planning and the sequencing of overburden and ore mining,
rather than as an integrated unit
• expenditures for additional infrastructure to support the
second and subsequent pits are relatively large
• the pits extract ore from separate and distinct ore bodies,
rather than from a single ore body.
The relative importance of each factor is considered by the
management to determine whether, the stripping costs should
be attributed to the individual pit or to the combined output
from the several pits.
Production stripping costs are incurred to extract the ore in the
form of inventories and/or to improve access to an additional
component of an ore body or deeper levels of material.
Production stripping costs are accounted for as inventories
to the extent the benefit from production stripping activity is
realised in the form of inventories.
The Company recognises a stripping activity asset in the
production phase if, and only if, all of the following are met:
• it is probable that the future economic benefit (improved
access to the ore body) associated with the stripping activity
will flow to the Company
• the entity can identify the component of the ore body for
which access has been improved and
• the costs relating to the improved access to that component
can be measured reliably.
are
costs
presented within mining
Such
assets.
After initial recognition, stripping activity assets are carried
less accumulated amortisation and
at cost/deemed cost
identified
impairment. The expected useful
component of the ore body is used to depreciate or amortise
the stripping asset.
life of the
(m) Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint ventures are
carried at cost/deemed cost applied on transition to Ind AS,
less accumulated impairment losses, if any. Where an indication
of impairment exists, the carrying amount of investment is
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
2. Significant accounting policies (Contd.)
assessed and an impairment provision is recognised, if required
immediately to its recoverable amount. On disposal of such
investments, difference between the net disposal proceeds and
carrying amount is recognised in the statement of profit and loss.
(n) Financial instruments
Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the
instrument. Financial assets and liabilities are initially measured
at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value
through profit and loss) are added to or deducted from the
fair value measured on initial recognition of financial asset or
financial liability. The transaction costs directly attributable to
the acquisition of financial assets and financial liabilities at fair
value through profit and loss are immediately recognised in the
statement of profit and loss.
Effective interest method
The effective interest method is a method of calculating the
amortised cost of a financial instrument and of allocating interest
income or expense over the relevant period. The effective
interest rate is the rate that exactly discounts future cash
receipts or payments through the expected life of the financial
instrument, or where appropriate, a shorter period.
(I) Financial assets
Cash and bank balances
Cash and bank balances consist of:
(i)
Cash and cash equivalents - which include cash on hand,
deposits held at call with banks and other short-term
into known
deposits which are readily convertible
amounts of cash, are subject to an insignificant risk of
change in value and have original maturities of less than
one year. These balances with banks are unrestricted for
withdrawal and usage.
(ii)
Other bank balances - which include balances and deposits
with banks that are restricted for withdrawal and usage.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if
these financial assets are held within a business model whose
objective is to hold these assets in order to collect contractual
cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets measured at fair value
Financial assets are measured at fair value through other
comprehensive income if such financial assets are held within
a business model whose objective is to hold these assets in
order to collect contractual cash flows or to sell such financial
assets and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
The Company in respect of equity investments (other than in
subsidiaries, associates and joint ventures) which are not held
for trading has made an irrevocable election to present in other
comprehensive income subsequent changes in the fair value
of such equity instruments. Such an election is made by the
Company on an instrument by instrument basis at the time of
initial recognition of such equity investments. These investments
are held
long-term strategic purpose.
The Company has chosen to designate these investments in
equity instruments as fair value through other comprehensive
income as the management believes this provides a more
meaningful presentation for medium or long-term strategic
investments, than reflecting changes in fair value immediately
in the statement of profit and loss.
for medium or
Financial assets not measured at amortised cost or at fair value
through other comprehensive income are carried at fair value
through profit and loss.
Interest income
Interest income is accrued on a time proportion basis, by
reference to the principal outstanding and effective interest
rate applicable.
Dividend income
Dividend income from investments is recognised when the right
to receive payment has been established.
Impairment of financial assets
Loss allowance for expected credit losses is recognised for
financial assets measured at amortised cost and fair value
through other comprehensive income.
The Company recognises lifetime expected credit losses for all
trade receivables that do not constitute a financing transaction.
For financial assets (apart from trade receivables that do not
constitute of financing transaction) whose credit risk has not
significantly increased since initial recognition, loss allowance
equal to twelve months expected credit losses is recognised.
221
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
De-recognition of financial liabilities
Loss allowance equal to the lifetime expected credit losses is
recognised if the credit risk of the financial asset has significantly
increased since initial recognition.
De-recognition of financial assets
The Company de-recognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or
it transfers the financial asset and substantially all risks and
rewards of ownership of the asset to another entity.
If the Company neither transfers nor retains substantially all
the risks and rewards of ownership and continues to control
the transferred asset, the Company recognises its retained
interest in the assets and an associated liability for amounts it
may have to pay.
If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company
continues to recognise the financial asset and also recognises a
borrowing for the proceeds received.
(II) Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the
Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a
financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of its
liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Financial liabilities
Trade and other payables are initially measured at fair value,
net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method where
the time value of money is significant.
Interest bearing bank loans, overdrafts and issued debt are
initially measured at fair value and are subsequently measured
at amortised cost using the effective interest rate method.
Any difference between the proceeds (net of transaction
costs) and the settlement or redemption of borrowings is
recognised over the term of the borrowings in the statement of
profit and loss.
222
The Company de-recognises financial liabilities when, and only
when, the Company’s obligations are discharged, cancelled
or they expire.
Derivative financial instruments and hedge accounting
In the ordinary course of business, the Company uses certain
derivative financial instruments to reduce business risks which
arise from its exposure to foreign exchange and interest rate
fluctuations. The instruments are confined principally to forward
foreign exchange contracts, cross currency swaps, interest rate
swaps and collars. The instruments are employed as hedges of
transactions included in the financial statements or for highly
probable forecast transactions/firm contractual commitments.
These derivatives contracts do not generally extend beyond
six months, except for certain currency swaps and interest
rate derivatives.
Derivatives are initially accounted for and measured at fair
value on the date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end of each
reporting period.
The Company adopts hedge accounting for forward foreign
exchange and
interest rate contracts wherever possible.
At inception of each hedge, there is a formal, documented
designation of the hedging relationship. This documentation
includes, inter alia, items such as identification of the hedged
item and transaction and nature of the risk being hedged.
At inception, each hedge is expected to be highly effective
in achieving an offset of changes in fair value or cash flows
attributable to the hedged risk. The effectiveness of hedge
instruments to reduce the risk associated with the exposure
being hedged is assessed and measured at the inception and on
an ongoing basis. The ineffective portion of designated hedges
is recognised immediately in the statement of profit and loss.
When hedge accounting is applied:
• for fair value hedges of recognised assets and liabilities,
changes in fair value of the hedged assets and liabilities
attributable to the risk being hedged, are recognised in
the statement of profit and loss and compensate for the
effective portion of symmetrical changes in the fair value of
the derivatives.
• for cash flow hedges, the effective portion of the change
in the fair value of the derivative is recognised directly in
other comprehensive income and the ineffective portion is
recognised in the statement of profit and loss. If the cash flow
hedge of a firm commitment or forecasted transaction results
in the recognition of a non-financial asset or liability, then,
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
2. Significant accounting policies (Contd.)
at the time the asset or liability is recognised, the associated
gains or losses on the derivative that had previously been
recognised in equity are included in the initial measurement
of the asset or liability. For hedges that do not result in the
recognition of a non-financial asset or a liability, amounts
deferred in equity are recognised in the statement of profit
and loss in the same period in which the hedged item affects
the statement of profit and loss.
In cases where hedge accounting is not applied, changes in the
fair value of derivatives are recognised in the statement of profit
and loss as and when they arise.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated, or exercised, or no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss
on the hedging instrument recognised in equity is retained
in equity until the forecasted transaction occurs. If a hedged
transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to the statement
of profit and loss for the period.
(o) Employee benefits
Defined contribution plans
Contributions under defined contribution plans are recognised
as expense for the period in which the employee has rendered
the service. Payments made to state managed retirement benefit
schemes are dealt with as payments to defined contribution
schemes where the Company’s obligations under the schemes
are equivalent to those arising in a defined contribution
retirement benefit scheme.
Defined benefit plans
For defined benefit retirement schemes, the cost of providing
benefits is determined using the Projected Unit Credit Method,
with actuarial valuation being carried out at each year-end
balance sheet date. Remeasurement gains and losses of the net
defined benefit liability/(asset) are recognised immediately in
other comprehensive income. The service cost and net interest
on the net defined benefit liability/(asset) are recognised as an
expense within employee costs.
Past service cost is recognised as an expense when the plan
amendment or curtailment occurs or when any related
restructuring costs or termination benefits are recognised,
whichever is earlier.
The retirement benefit obligations recognised in the balance
sheet represents the present value of the defined benefit
obligations as reduced by the fair value of plan assets.
Compensated absences
Compensated absences which are not expected to occur
within twelve months after the end of the period in which the
employee renders the related service are recognised based on
actuarial valuation at the present value of the obligation as on
the reporting date.
(p) Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost
is ascertained on a weighted average basis.
Costs comprise direct materials and, where applicable, direct
labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition.
Net realisable value is the price at which the inventories can
be realised in the normal course of business after allowing for
the cost of conversion from their existing state to a finished
condition and for the cost of marketing, selling and distribution.
Provisions are made to cover slow-moving and obsolete items
based on historical experience of utilisation on a product
category basis, which involves individual businesses considering
their product lines and market conditions.
(q) Provisions
Provisions are recognised in the balance sheet when the
Company has a present obligation (legal or constructive) as a
result of a past event, which is expected to result in an outflow of
resources embodying economic benefits which can be reliably
estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the
balance sheet date. Where the time value of money is material,
provisions are measured on a discounted basis.
Constructive obligation is an obligation that derives from an
entity’s actions where:
(a)
by an established pattern of past practice, published
policies or a sufficiently specific current statement, the
entity has indicated to other parties that it will accept
certain responsibilities and;
(b)
as a result, the entity has created a valid expectation on
the part of those other parties that it will discharge such
responsibilities.
223
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
(r) Onerous contracts
A provision for onerous contracts is recognised when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting its
obligations under the contract. The provision is measured at the
present value of the lower of the expected cost of terminating
the contract and the expected net cost of continuing with
the contract. Before a provision is established, the Company
recognises any impairment loss on the assets associated
with that contract.
(s) Government grants
Government grants are recognised at its fair value, where
there is a reasonable assurance that such grants will be
received and compliance with the conditions attached
therewith have been met.
Government grants related to expenditure on property, plant
and equipment are credited to the statement of profit and loss
over the useful lives of qualifying assets or other systematic
basis representative of the pattern of fulfilment of obligations
associated with the grant received. Grants received less amounts
credited to the statement of profit and loss at the reporting date
are included in the balance sheet as deferred income.
(t)
Non-current assets held for sale and discontinued
operations
Non-current assets and disposal groups classified as held for
sale are measured at the lower of their carrying value and fair
value less costs to sell.
Assets and disposal groups are classified as held for sale if their
carrying value will be recovered through a sale transaction
rather than through continuing use. This condition is only met
when the sale is highly probable and the asset, or disposal
group, is available for immediate sale in its present condition
and is marketed for sale at a price that is reasonable in relation to
its current fair value. The Company must also be committed to
the sale, which should be expected to qualify for recognition as
a completed sale within one year from the date of classification.
Where a disposal group represents a separate major line of
business or geographical area of operations, or is part of a
single co-ordinated plan to dispose of a separate major line of
business or geographical area of operations, then it is treated
as a discontinued operation. The post-tax profit or loss of
the discontinued operation together with the gain or loss
recognised on its disposal are disclosed as a single amount in
224
the statement of profit and loss, with all prior periods being
presented on this basis.
(u) Income taxes
Tax expense for the period comprises current and deferred
tax. The tax currently payable is based on taxable profit for the
period. Taxable profit differs from net profit as reported in the
statement of profit and loss because it excludes items of income
or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible.
The Company’s liability for current tax is calculated using tax
rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying value of assets and liabilities
in the financial statements and the corresponding tax bases
used in the computation of taxable profit and is accounted for
using the balance sheet liability method. Deferred tax liabilities
are generally recognised for all taxable temporary differences.
In contrast, deferred tax assets are only recognised to the extent
that it is probable that future taxable profits will be available
against which the temporary differences can be utilised.
The carrying value of deferred tax assets is reviewed at the end
of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised based on the tax rates and tax laws that have been
enacted or substantially enacted by the end of the reporting
period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying value of its
assets and liabilities.
Deferred tax assets and liabilities are offset to the extent that
they relate to taxes levied by the same tax authority and there
are legally enforceable rights to set off current tax assets and
current tax liabilities within that jurisdiction.
Current and deferred tax are recognised as an expense or income
in the statement of profit and loss, except when they relate to
items credited or debited either in other comprehensive income
or directly in equity, in which case the tax is also recognised in
other comprehensive income or directly in equity.
Deferred tax assets include Minimum Alternate Tax (MAT) paid
in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
2. Significant accounting policies (Contd.)
against future income tax liability. MAT is recognised as deferred
tax assets in the balance sheet when the asset can be measured
reliably and it is probable that the future economic benefit
associated with the asset will be realised.
(v) Revenue
The Company manufactures and sells a range of steel and
other products.
Effective April 1, 2018, the Company has applied Ind AS 115
which establishes a comprehensive framework for determining
whether, how much and when revenue is to be recognised.
Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11
Construction Contracts. The Company has adopted Ind AS 115
using the retrospective effect method. The adoption of the new
standard did not have a material impact on the Company.
Sale of products
Revenue from sale of products is recognised when control of the
products has transferred, being when the products are delivered
to the customer. Delivery occurs when the products have been
shipped or delivered to the specific location as the case may be,
the risks of loss has been transferred, and either the customer
has accepted the products in accordance with the sales contract,
or the Company has objective evidence that all criteria for
acceptance have been satisfied. Sale of products include related
ancillary services, if any.
Goods are often sold with volume discounts based on aggregate
sales over a 12 months period. Revenue from these sales is
recognised based on the price specified in the contract, net of
the estimated volume discounts. Accumulated experience is
used to estimate and provide for the discounts, using the most
likely method, and revenue is only recognised to the extent that
it is highly probable that a significant reversal will not occur.
A liability is recognised for expected volume discounts payable
to customers in relation to sales made until the end of the
reporting period. No element of financing is deemed present
as the sales are generally made with a credit term of 30-90
days, which is consistent with market practice. Any obligation
to provide a refund is recognised as a provision. A receivable is
recognised when the goods are delivered as this is the point in
time that the consideration is unconditional because only the
passage of time is required before the payment is due.
The Company does not have any contracts where the period
between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year.
As a consequence, the Company does not adjust any of the
transaction prices for the time value of money.
Sale of power
Revenue from sale of power is recognised when the services
are provided to the customer based on approved tariff
rates established by the respective regulatory authorities.
The Company doesn’t recognise revenue and an asset for cost
incurred in the past that will be recovered.
(w) Foreign currency transactions and translations
The financial statements of the Company are presented in Indian
Rupees (‘`’), which is the functional currency of the Company
and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies
other than the Company’s functional currency are recorded at the
rates of exchange prevailing on the date of the transaction. At the
end of each reporting period, monetary items denominated in
foreign currencies are re-translated at the rates prevailing at
the end of the reporting period. Non-monetary items carried
at fair value that are denominated in foreign currencies are
re-translated at the rates prevailing on the date when the fair
value was determined. Non-monetary items that are measured
in terms of historical cost in a foreign currency are not translated.
Exchange differences arising on translation of
long-term
foreign currency monetary items recognised in the financial
statements before the beginning of the first Ind AS financial
reporting period in respect of which the Company has elected
to recognise such exchange differences in equity or as part of
cost of assets as allowed under Ind AS 101-“First-time adoption
of Indian Accounting Standards” are added/deducted to/ from
the cost of assets as the case may be. Such exchange differences
recognised in equity or as part of cost of assets is recognised in
the statement of profit and loss on a systematic basis.
Exchange differences arising on the re-translation or settlement
of other monetary items are included in the statement of profit
and loss for the period.
(x) Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for
the intended use or sale.
Investment income earned on temporary investment of specific
borrowings pending their expenditure on qualifying assets is
recognised in the statement of profit and loss.
225
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
Ind AS 116 – “Leases”
Discounts or premiums and expenses on the issue of debt
securities are amortised over the term of the related securities
and included within borrowing costs. Premiums payable on
early redemptions of debt securities, in lieu of future finance
costs, are recognised as borrowing costs.
All other borrowing costs are recognised as expenses in the
period in which it is incurred.
(y) Earnings per share
Basic earnings per share is computed by dividing profit or loss for
the year attributable to equity holders by the weighted average
number of shares outstanding during the year. Partly paid up
shares are included as fully paid equivalents according to the
fraction paid up.
Diluted earnings per share is computed using the weighted
average number of shares and dilutive potential shares except
where the result would be anti-dilutive.
(z) Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) has notified the following
new amendments to Ind AS which the Company has not
applied as they are effective for annual periods beginning on or
after April 1, 2019.
Ind AS 116 ‘Leases’ eliminates the classification of leases as either
finance leases or operating leases. All leases are required to be
reported on an entity’s balance sheet as assets and liabilities.
Leases are capitalised by recognising the present value of the
lease payments and showing them either as right of use of the
leased assets or together with property, plant and equipment.
If lease payments are made over time a financial liability
representing the future obligation would be recognised.
Appendix C, ‘Uncertainty over Income Tax Treatments’,
to Ind AS 12, ‘Income Taxes’
This Appendix clarifies how the recognition and measurement
requirements of Ind AS 12 ‘Income Taxes’, are applied while
performing the determination of taxable profit or loss, tax bases,
unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12.
According to the Appendix, companies need to determine the
probability of the relevant tax authority accepting each tax
treatment, or group of tax treatments, that the companies have
used or plan to use in their income tax filing which has to be
considered to compute the most likely amount or the expected
value of the tax treatment when determining taxable profit or
loss, tax bases, unused tax losses, unused tax credits and tax rates.
The Company is in the process of evaluating the impact
its
of adoption of
financial statements.
the above pronouncements on
226
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
3. Property, plant and equipment
[Item No. I(a), Page 210]
Cost/deemed cost as at April 1, 2018
Additions
Disposals
Other re-classifications
Cost/deemed cost as at March 31, 2019
Impairment as at April 1, 2018
Accumulated impairment as at March 31, 2019
Accumulated depreciation as at April 1, 2018
Charge for the year
Disposals
Other re-classifications
Accumulated depreciation as at March 31, 2019
Total accumulated depreciation and
impairment as at March 31, 2019
Net carrying value as at April 1, 2018
Net carrying value as at March 31, 2019
Cost/deemed cost as at April 1, 2017
Additions
Disposals
Cost/deemed cost as at March 31, 2018
Impairment as at April 1, 2017
Accumulated impairment as at March 31, 2018
Accumulated depreciation as at April 1, 2017
Charge for the period
Disposals
Accumulated depreciation as at March 31, 2018
Total accumulated depreciation and
impairment as at March 31, 2018
Net carrying value as at April 1, 2017
Net carrying value as at March 31, 2018
Land
including
roads
Buildings
Plant and
machinery
Furniture,
fixtures
and office
equipments
Vehicles
Railway
sidings
(` crore)
Total
14,117.17
75.79
-
-
14,192.96
0.15
0.15
493.55
115.61
-
-
609.16
609.31
5,902.00
221.14
(13.80)
-
6,109.34
1.32
1.32
690.56
233.32
(2.06)
-
921.82
923.14
60,846.29
2,613.71
(0.37)
9.05
63,468.68
0.09
0.09
9,980.12
3,162.19
(0.29)
6.00
13,148.02
13,148.11
431.26
118.90
(1.26)
-
548.90
-
-
291.37
73.19
(1.19)
-
363.37
363.37
304.62
86.83
(12.48)
(9.05)
369.92
-
-
164.42
30.51
(11.14)
(6.00)
177.79
177.79
1,056.94
23.45
-
-
82,658.28
3,139.82
(27.91)
-
1,080.39 85,770.19
1.56
1.56
11,713.82
3,652.67
(14.68)
-
131.65 15,351.81
131.65 15,353.37
-
-
93.80
37.85
-
-
13,623.47
13,583.65
5,210.12
5,186.20
50,866.08
50,320.57
139.89
185.53
140.20
192.13
963.14
70,942.90
948.74 70,416.82
Land
including
roads
Buildings
Plant and
machinery
14,058.74
58.43
-
14,117.17
0.15
0.15
390.40
103.15
-
493.55
493.70
5,722.77
179.23
-
5,902.00
1.32
1.32
461.43
229.13
-
690.56
691.88
58,458.26
2,414.33
(26.30)
60,846.29
0.09
0.09
6,844.56
3,140.58
(5.02)
9,980.12
9,980.21
Furniture,
fixtures
and office
equipments
352.18
82.96
(3.88)
431.26
-
-
246.46
48.72
(3.81)
291.37
291.37
Vehicles
Railway
sidings
(` crore)
Total
324.15
17.44
(36.97)
304.62
-
-
159.14
27.64
(22.36)
164.42
164.42
1,024.00
32.94
-
79,940.10
2,785.33
(67.15)
1,056.94 82,658.28
1.56
1.56
8,159.57
3,585.44
(31.19)
93.80 11,713.82
93.80 11,715.38
-
-
57.58
36.22
-
13,668.19
13,623.47
5,260.02
5,210.12
51,613.61
50,866.08
105.72
139.89
165.01
140.20
966.42
71,778.97
963.14 70,942.90
(i)
Buildings include `2.32 crore (March 31, 2018: `2.32 crore) being cost of shares in co-operative housing societies and limited companies.
227
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
3. Property, plant and equipment (Contd.)
[Item No. I(a), Page 210]
(ii) Net carrying value of plant and machinery comprises of:
Assets held under finance leases
Cost/deemed cost
Accumulated depreciation and impairment
Owned assets
(iii)
Net carrying value of furniture, fixtures and office equipments comprises of:
Furniture and fixtures
Cost/deemed cost
Accumulated depreciation and impairment
Office equipments
Cost/deemed cost
Accumulated depreciation and impairment
(` crore)
As at
March 31, 2019
As at
March 31, 2018
3,851.65
1,700.33
2,151.32
3,632.46
1,590.98
2,041.48
48,169.25
48,824.60
50,320.57
50,866.08
(` crore)
As at
March 31, 2019
As at
March 31, 2018
118.24
94.67
23.57
430.66
268.70
161.96
185.53
104.02
80.04
23.98
327.24
211.33
115.91
139.89
(iv)
`88.68 crore (2017-18: `75.96 crore) of borrowing costs has been capitalised during the year on qualifying assets under construction
using a capitalisation rate of 9.00% (2017-18: 9.00%).
Rupee liability has increased by `106.56 crore (March 31, 2018: `44.33 crore) arising out of re-translation of the value of long-term foreign
currency loans and liabilities for procurement of property, plant and equipment, generally plant and machinery. This increase is adjusted
against the carrying cost of assets and depreciated over their remaining useful life. The depreciation for the current year is higher by
`3.50 crore (2017-18: `1.39 crore) on account of this adjustment.
Property, plant and equipment (including capital work-in-progress) were tested for impairment during the year where indicators of
impairment existed. During the year ended March 31, 2019, the Company has recognised an impairment charge of `8.54 crore (2017-18:
`33.99 crore) in respect of expenditure incurred (included within capital work-in-progress) at one of its mining sites. The impairment
recognised is included within other expenses in the statement of profit and loss.
(v)
(vi)
228
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
3. Property, plant and equipment (Contd.)
[Item No. I(a), Page 210]
(vii) Property, plant and equipment includes capital cost of in-house research facilities as below:
Cost/deemed cost as at April 1, 2018
Additions
Cost/deemed cost as at March 31, 2019
Capital work-in-progress
Buildings
Plant and
machinery
Furniture,
fixtures and office
equipments
Vehicles
(` crore)
Total
6.35
6.04
-
0.31
6.35
6.35
72.72
66.56
20.21
6.16
92.93
72.72
7.01
6.08
1.23
0.93
8.24
7.01
0.09
0.09
-
-
0.09
0.09
86.17
78.77
21.44
7.40
107.61
86.17
1.12
19.75
Figures in italics represent comparative figures for previous years.
(viii) Details of property, plant and equipment pledged against borrowings is presented in note 19, page 258.
4. Leases
The Company has taken certain land, buildings, plant and machinery under operating and/or finance leases. The following is a summary of the
future minimum lease rental payments under non-cancellable operating leases and finance leases entered into by the Company.
A. Operating leases:
Significant leasing arrangements include lease of land for periods ranging between 12 to 99 years renewable on mutual consent, lease of office
space and assets dedicated for use under long-term arrangements. Payments under long-term arrangements involving use of dedicated assets
are allocated between those relating to the right to use of assets, executory services and for output based on the underlying contractual terms
and conditions. Any change in the allocation assumptions may have an impact on lease assessment and/or lease classification. Payments linked
to changes in inflation index under the lease arrangements have been considered as contingent rent and recognised in the statement of profit
and loss as and when incurred.
Future minimum lease payments under non-cancellable operating leases is as below:
Not later than one year
Later than one year but not later than five years
Later than five years
(` crore)
Minimum lease payments
As at
March 31, 2019
As at
March 31, 2018
120.57
436.38
954.28
1,511.23
111.60
352.18
992.63
1,456.41
During the year ended March 31, 2019, total operating lease rental expense recognised in the statement of profit and loss was `222.76 crore,
(2017-18: `252.12 crore) including contingent rent of `49.27 crore (2017-18: `31.20 crore).
229
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
4. Leases (Contd.)
B. Finance leases:
Significant leasing arrangements include assets dedicated for use under long-term arrangements. The arrangements cover a substantial part
of the economic life of the underlying assets and generally contain a renewal option on expiry. Payments under long-term arrangements
involving use of dedicated assets are allocated between those relating to the right to use of assets, executory services and for output based
on underlying contractual terms and conditions. Any change in the allocation assumptions may have an impact on lease assessment and/or
lease classification.
The minimum lease payments and such payments excluding future finance charges in respect of arrangements classified as finance
leases is as below:
Not later than one year
Later than one year but not later than five years
Later than five years
Total future minimum lease commitments
Less: Future finance charges
Present value of minimum lease payments
Disclosed as:
Borrowings - Non-current (refer note 19, page 258)
Other financial liabilities - Current (refer note 20, page 261)
As at March 31, 2019
As at March 31, 2018
(` crore)
Minimum lease
payments
469.27
1,335.16
2,885.77
4,690.20
2,560.34
2,129.86
1,934.37
195.49
2,129.86
Minimum lease
payments less
future finance
charges
195.49
499.50
1,434.87
2,129.86
Minimum lease
payments less
future finance
charges
119.81
432.02
1,701.63
2,253.46
Minimum lease
payments
463.76
1,523.48
4,013.01
6,000.25
3,746.79
2,253.46
2,133.65
119.81
2,253.46
230
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
5.
Intangible assets
[Item No. I(c), Page 210]
Cost/deemed cost as at April 1, 2018
Additions
Cost/deemed cost as at March 31, 2019
Accumulated impairment as at April 1, 2018
Charge for the year
Accumulated impairment as at March 31, 2019
Accumulated amortisation as at April 1, 2018
Charge for the year
Accumulated amortisation as at March 31, 2019
Total accumulated amortisation and impairment as at March 31, 2019
Net carrying value as at April 1, 2018
Net carrying value as at March 31, 2019
Cost/deemed cost as at April 1, 2017
Additions
Cost/deemed cost as at March 31, 2018
Accumulated impairment as at April 1, 2017
Accumulated impairment as at March 31, 2018
Accumulated amortisation as at April 1, 2017
Charge for the year
Accumulated amortisation as at March 31, 2018
Total accumulated amortisation and impairment as at March 31, 2018
Net carrying value as at April 1, 2017
Net carrying value as at March 31, 2018
Software
costs
240.89
25.77
266.66
-
-
-
167.74
28.01
195.75
195.75
73.15
70.91
Software
costs
198.72
42.17
240.89
-
-
146.35
21.39
167.74
167.74
52.37
73.15
Mining
assets
1,782.41
146.60
1,929.01
37.05
3.06
40.11
1,032.33
122.28
1,154.61
1,194.72
713.03
734.29
Mining
assets
1,684.56
97.85
1,782.41
37.05
37.05
911.70
120.63
1,032.33
1,069.38
735.81
713.03
(` crore)
Total
2,023.30
172.37
2,195.67
37.05
3.06
40.11
1,200.07
150.29
1,350.36
1,390.47
786.18
805.20
(` crore)
Total
1,883.28
140.02
2,023.30
37.05
37.05
1,058.05
142.02
1,200.07
1,237.12
788.18
786.18
(i)
(ii)
Mining assets represent expenditure incurred in relation to acquisition of mines, mine development expenditure post establishment of
technical and commercial feasibility and restoration obligations as per applicable regulations.
The Company has recognised an impairment charge of `5.17 crore (including intangible under development) (2017-18 Nil) for expenditure
incurred in respect of certain mines which are not in operation.
(iii) Software costs related to in-house development included within software costs is `0.28 crore (2017-18: `0.27 crore).
231
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
6.
Investments in subsidiaries, associates and joint ventures
[Item No. I(e), Page 210]
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
As at
March 31, 2019
(` crore)
As at
March 31, 2018
1,54,64,590
205.87
26.30
83,93,554
55,87,372
7,84,57,640
2,00,000
4,14,00,000
25,88,95,798
86.54
-
395.02
687.43
1.08
26.40
258.89
86.54
-
395.02
507.86
1.08
26.40
0.01
23,69,86,703
321.73
298.72
10,000
1,27,500
10,000
56,92,651
10,000
3,20,00,000
2,43,50,000
10,000
3,352
28,14,37,128
10,000
13,28,800
10,000
10,000
4,24,183
3,99,986
75,000
10,00,000
5,93,17,67,688
12,96,00,000
0.01
91.88
0.01
3.08
0.01
32.00
24.35
0.01
-
773.86
0.01
60.40
0.01
0.01
17.01
-
0.70
1.00
-
-
0.01
-
0.01
3.08
0.01
20.00
20.35
0.01
-
773.86
0.01
60.40
0.01
0.01
-
-
0.70
1.00
-
-
Investments carried at cost/deemed cost
A.
(a) Equity investment in subsidiary companies
(i) Quoted
(1) Tata Metaliks Ltd.
(27,97,000 shares purchased during the year)
(2) Tata Sponge Iron Limited
(3) Tayo Rolls Limited
(4) The Tinplate Company of India Ltd
(ii) Unquoted
(1) ABJA Investment Co. Pte Ltd. (Face value of USD 1 each)
(2) Adityapur Toll Bridge Company Limited
(3) Bamnipal Steel Limited
(25,88,85,798 shares purchased during the year)
(4) Bhubaneshwar Power Private Limited
(2,30,00,000 shares purchased during the year)
(5) Bistupur Steel Limited
(6) Creative Port Development Private Limited
(1,27,500 shares purchased during the year)
Jamadoba Steel Limited
(7) Dimna Steel Limited
(8) The Indian Steel & Wire Products Ltd
(9)
(10) Jamshedpur Football and Sporting Private Limited
(1,20,00,000 shares purchased during the year)
(11) Jamshedpur Utilities & Services Company Limited
(40,00,000 shares purchased during the year)
(12) Jugsalai Steel Limited
(13) Mohar Exports Services Pvt Ltd*
(14) NatSteel Asia Pte. Ltd. (Face value of SGD 1 each)
(15) Noamundi Steel Limited
(16) Rujuvalika Investments Limited
(17) Sakchi Steel Limited
(18) Straight Mile Steel Limited
(19) Subarnarekha Port Private Limited
(2,51,666 shares purchased during the year)
(20) Tata Korf Engineering Services Ltd*
(21) The Tata Pigments Limited (Face value of `100 each)
(22) Tata Steel Foundation
(23) T Steel Holdings Pte. Ltd.* (Face value of GBP 1 each)
(24) Tata Steel (KZN) (Pty) Ltd.* (Face value of ZAR 1 each)
232
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
6.
Investments in subsidiaries, associates and joint ventures (Contd.)
[Item No. I(e), Page 210]
(25) Tata Steel Odisha Limited
(26) Tata Steel Processing and Distribution Limited
(27) Tata Steel Special Economic Zone Limited
(3,05,00,000 shares purchased during the year)
(28) T S Alloys Limited
Aggregate provision for impairment in value of investments
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
25,67,000
6,82,50,000
18,52,42,631
6,57,07,544
(b)
Investment in equity share warrants of subsidiary companies
(i) Unquoted
(1) Tata Metaliks Ltd.
34,92,500
(34,92,500 equity share warrants purchased during the year)
(c) Equity investment in associate companies
(i) Quoted
(1)
TRF Limited.
(ii) Unquoted
(1) Kalinga Aquatic Ltd*
(2) Malusha Travels Pvt Ltd, `33,520
(March 31, 2018: `33,520)
(3) Nicco Jubilee Park Limited*
(4) Strategic Energy Technology Systems Private Limited
(5) TRL Krosaki Refractories Limited
(55,63,864 shares sold during the year)
Aggregate provision for impairment in value of investments
(d) Equity investment in joint ventures
(i) Unquoted
Industrial Energy Limited
(1) Himalaya Steel Mill Services Private Limited
(2)
(3) Jamipol Limited
(4) Jamshedpur Continuous Annealing & Processing Company
Private Limited
(15,30,00,000 shares purchased during the year)
(5) Medica TS Hospital Private Limited
(6) mjunction services limited
(7) S & T Mining Company Private Limited
37,53,275
10,49,920
3,352
3,40,000
2,56,14,500
-
36,19,945
17,31,60,000
36,75,000
62,83,20,000
2,60,000
40,00,000
1,29,41,400
As at
March 31, 2019
(` crore)
As at
March 31, 2018
2.57
274.45
160.32
78.64
2,128.43
(50.00)
2,078.43
2,765.86
56.05
56.05
5.79
5.79
-
-
-
0.91
-
0.91
(0.91)
-
5.79
3.62
173.16
8.38
628.32
0.26
4.00
12.94
2.57
274.45
129.82
78.64
1,691.15
(38.00)
1,653.15
2,161.01
-
-
5.79
5.79
-
-
-
0.91
42.38
43.29
(0.91)
42.38
48.17
3.62
173.16
8.38
475.32
0.26
4.00
12.94
233
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
6.
Investments in subsidiaries, associates and joint ventures (Contd.)
[Item No. I(e), Page 210]
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
As at
March 31, 2019
(` crore)
As at
March 31, 2018
(8) Tata BlueScope Steel Private Limited (formerly Tata BlueScope
43,30,00,000
Steel Limited)
(9) Tata NYK Shipping Pte Ltd.
(Face value of USD 1 each)
(10) TM International Logistics Limited
(11) T M Mining Company Limited
(Inter-corporate deposits converted to 66,316 shares during
the year)
Aggregate provision for impairment in value of investments
6,51,67,500
91,80,000
2,29,116
Total investments in subsidiaries, associates and joint ventures
* These investments are carried at a book value of `1.00
433.00
350.14
9.18
0.23
433.00
350.14
9.18
0.16
1,623.23
(13.17)
1,610.06
4,437.76
1,470.16
(13.10)
1,457.06
3,666.24
(i)
The Company holds 51% of the equity share capital in TM International Logistics Limited, Jamshedpur Continuous Annealing & Processing
Company Private Limited and T M Mining Company Limited. However, decisions in respect of activities which significantly affect the risks
and rewards of these businesses, require unanimous consent of all the shareholders. These entities have therefore been considered as
joint ventures.
(ii) Carrying value and market value of quoted and unquoted investments are as below:
Investment in subsidiary companies:
Aggregate carrying value of quoted investments
Aggregate market value of quoted investments
Aggregate carrying value of unquoted investments
Investment in associate companies:
Aggregate carrying value of quoted investments
Aggregate market value of quoted investments
Aggregate carrying value of unquoted investments
Investment in joint ventures:
Aggregate carrying value of unquoted investments
(` crore)
As at
March 31, 2019
As at
March 31, 2018
687.43
2,876.68
2,134.48
5.79
44.87
-
507.86
3,211.31
1,653.15
5.79
83.66
42.38
1,610.06
1,457.06
During the year ended March 31, 2019, the Company acquired 51% stake in Creative Port Development Private Limited (CPDPL) a proposed
greenfield port project. Consequent to the acquisition, Subarnarekha Port Private Limited became a subsidiary of the Company.
During the year ended March 31, 2019, the Company through its wholly owned subsidiary Bamnipal Steel Limited, completed the
acquisition of Tata Steel BSL Limited (formerly Bhushan Steel Limited) pursuant to a corporate insolvency resolution process implemented
under the Insolvency and Bankruptcy Code, 2018.
(a)
(b)
(c)
(iii)
(iv)
(v)
The Hon’ble National Company Law Tribunal (NCLT), Kolkata vide order dated April 5, 2019 has admitted the initiation of Corporate
Insolvency Resolution Process (CIRP) in respect of Tayo Rolls Limited, a subsidiary of the Company.
234
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
7.
Investments
[Item No. I(f )(i) and II(b)(i), Page 210]
A. Non-current
(I)
Investments carried at fair value through other comprehensive income:
Investment in equity shares
(i) Quoted
(1) Credit Analysis & Research Limited
(2) Housing Development Finance Corporation Ltd.
(Face value of `2 each)
(3) Tata Consultancy Services Limited
(Face Value of `1 each)
(23,804 bonus shares in 1:1 was received and 810 shares were
bought back during the year)
(4) Tata Investment Corporation Limited
(18,003 shares were bought back during the year)
(5) Tata Motors Ltd.
(Face value of `2 each)
(6) The Tata Power Company Ltd.
(Face value of `1 each)
(7) Timken India Ltd. `587.25 (March 31, 2018: `704.00)
(8) Steel Strips Wheels Limited
(ii) Unquoted#
IFCI Venture Capital Funds Ltd.
(1)
(2) Panatone Finvest Ltd.
(3) Steelscape Consultancy Pvt. Ltd.
(4) Subarnarekha Port Private Limited
(5) Taj Air Limited
(6) Tarapur Environment Protection Society
(7) Tata Industries Ltd.
(Face value of `100 each)
(8) Tata International Ltd.
(Face value of `1,000 each)
(9) Tata Services Ltd.
(Face value of `1,000 each)
(10) Tata Sons Private Limited
(Face value of `1,000 each)
(11) Tata Teleservices Ltd.
(12) Others(iii)
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
3,54,000
7,900
46,798
2,28,015
1,00,000
35.03
1.55
9.37
19.00
1.74
42.79
1.44
6.78
18.10
3.27
3,91,22,725
288.73
309.07
1
10,86,972
1,00,000
45,000
50,000
42,00,000
82,776
99,80,436
28,616
1,621
12,375
8,74,27,533
-
93.19
448.61
0.10
0.05
-
-
-
0.89
202.19
31.19
0.16
68.75
-
0.01
303.34
751.95
-
115.76
497.21
0.10
0.05
-
7.00
-
0.89
202.19
31.19
0.16
68.75
-
0.01
310.34
807.55
235
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
7.
Investments (Contd.)
[Item No. I(f )(i) and II(b)(i), Page 210]
(II)
Investments carried at fair value through profit and loss:
Investment in preference shares
(a) Subsidiary companies
(i) Unquoted
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
T Steel Holdings Pte. Ltd.
5.00% non-cumulative redeemable preference shares
(Face value of GBP 1 each)
T Steel Holdings Pte. Ltd.
5.60% non-cumulative redeemable preference shares
(Face value of USD 1 each)
(1,25,80,00,000 shares acquired during the year)
Tayo Rolls Limited
7.00% non-cumulative redeemable preference shares
(Face value of `100 each)
(2,00,000 shares acquired during the year)
Tayo Rolls Limited
7.17% non-cumulative redeemable preference shares
(Face value of `100 each)
Tayo Rolls Limited
8% non-cumulative redeemable preference shares
(Face value of `100 each)
(3,00,000 shares acquired during the year)
Tayo Rolls Limited
8.50% non-cumulative redeemable preference shares
(Face value of `100 each)
Creative Port Development Private Limited
0.01% non-cumulative optionally convertible
redeemable preference shares
(Face value of `100 each)
(25,10,830 shares acquired during the year)
Tata Steel BSL Limited (formerly Bhushan Steel Limited)
11.09 % non-cumulative redeemable preference shares
(10,70,00,00,000 shares acquired during the year)
Tata Steel BSL Limited (formerly Bhushan Steel Limited)
8.89 % non-cumulative optionally convertible redeemable
preference shares
(9,00,00,00,000 shares acquired during the year)
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
55,41,31,297
5,016.25
5,113.03
1,25,80,00,000
8,698.44
43,30,000
64,00,000
3,00,000
2,31,00,000
-
-
-
-
25,10,830
25.11
10,70,00,00,000
10,700.00
9,00,00,00,000
9,000.00
-
-
-
-
-
-
-
-
33,439.80
5,113.03
236
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
7.
Investments (Contd.)
[Item No. I(f )(i) and II(b)(i), Page 210]
No. of shares as at March
31, 2019 (face value of `10
each fully paid-up unless
otherwise specified)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
25,00,00,000
250.00
-
250.00
33,689.80
-
5,113.03
(b) Associate companies
(i) Unquoted
(1)
TRF Limited.
12.50 % non-cumulative redeemable preference shares
(25,00,00,000 shares acquired during the year)
Investments in debentures and bonds
Investment in joint ventures
(a)
(i) Unquoted
(1) Medica TS Hospital Private Limited
4,97,400
49.74
49.74
Secured optionally convertible redeemable debentures
(Face value of `1,000 each)
B. Current
Investments carried at fair value through profit and loss:
Investment in mutual funds – Unquoted
(1) Aditya Birla Sun Life Cash Plus - Growth
(2) Axis Liquid Fund - Growth
(3) Baroda Pioneer Liquid Fund - Growth
(4) DSP BlackRock Liquidity Fund - Growth
(5) HDFC Cash Management Fund - Saving Plan - Growth
(6)
(7)
(8)
(9)
(10) Kotak Liquid Scheme - Growth
(11) LIC MF Liquid Fund - Growth
(12) Reliance Liquidity Fund - Growth
(13) Reliance MF ETF Liquid
(14) SBI Premier Liquid Fund - Growth
(15) Tata Liquid Fund - Growth
(16) Tata Money Market Fund - Growth
ICICI Prudential Money Market Fund - Growth
IDBI Liquid Fund - Growth
IDFC Cash Fund - Growth
Invesco India Liquid Fund - Growth
49.74
34,491.49
49.74
5,970.32
(` crore)
As at
March 31, 2019
As at
March 31, 2018
-
-
-
-
-
-
-
-
-
-
-
-
-
-
477.47
-
477.47
1,191.57
1,477.02
882.72
1,250.63
1,044.26
1,440.59
741.08
952.69
1,246.89
616.07
738.43
1,329.38
0.09
878.38
-
850.57
14,640.37
237
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
7.
Investments (Contd.)
[Item No. I(f )(i) and II(b)(i), Page 210]
(i) Carrying value and market value of quoted and unquoted investments are as below:
(a) Investments in quoted instruments:
Aggregate carrying value
Aggregate market value
(b) Investments in unquoted instruments:
Aggregate carrying value
(` crore)
As at
March 31, 2019
As at
March 31, 2018
448.61
448.61
497.21
497.21
34,520.35
20,113.48
(ii)
Cumulative gain on de-recognition of investments during the year which were carried at fair value through other comprehensive income
amounted to `1.49 crore (2017-18: `3,427.46 crore). Fair value of such investments as on the date of de-recognition was `1.97 crore
(2017-18: `3,782.76 crore).
# Cost of unquoted equity instruments has been considered as an appropriate estimate of fair value because of a wide range of possible fair
value measurements and cost represents the best estimate of fair value within that range.
238
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
7.
Investments (Contd.)
[Item No. I(f )(i) and II(b)(i), Page 210]
(iii) Details of other unquoted investments carried at fair value through other comprehensive income is as below:
(a) Barajamda Iron Ore Mine Workers’ Central Co-operative Stores Ltd.
200
5,000.00
5,000.00
No. of shares as at March
31, 2019 (face value of `10
each fully paid -up unless
otherwise specified)
As at
March 31, 2019
(`)
As at
March 31, 2018
(`)
(Face value of `25 each)
(b) Bokaro and Ramgarh Ltd.
(c) Eastern Synpacks Limited (Face value of `25 each)
(d) Ferro Manganese Plant Employees’ Consumer Co-operative Society Ltd.
(Face value of `25 each)
(e) Investech Advisory Services (India) Limited(Face value of `100 each)
(f ) Jamshedpur Co-operative House Building Society Ltd.
(Face value of `100 each)
(g) Jamshedpur Co-operative Stores Ltd. (Face value of `5 each)
(h) Jamshedpur Educational and Culture Co-operative Society Ltd.
(Face value of `100 each)
(i) Joda East Iron Mine Employees’ Consumer Co-operative Society Ltd.
(Face value of `25 each)
(j) Kumardhubi Fireclay and Silica Works Ltd.
(k) Kumardhubi Metal Casting and Engineering Ltd.
(l) Namtech Electronic Devices Limited
(m) Reliance Firebrick and Pottery Company Ltd. (Partly paid-up)
(n) Reliance Firebrick and Pottery Company Ltd.
(o) Sanderson Industries Ltd.
(p) Standard Chrome Ltd.
(q) Sijua (Jherriah) Electric Supply Co. Ltd.
Tata Construction and Projects Ltd.
(r)
(s)
TBW Publishing and Media Pvt. Limited
(t) Wellman Incandescent India Ltd.
(u) Woodland Multispeciality Hospital Ltd.
(v) Unit Trust of India - Mastershares
100
1,50,000
100
1,680
10
50
50
100
1,50,001
10,70,000
48,026
16,800
2,400
3,33,876
11,16,000
4,144
11,97,699
100
15,21,234
1,25,000
2,229
16,225.00
1.00
2,500.00
1.00
1,000.00
250.00
5,000.00
16,225.00
1.00
2,500.00
1.00
1,000.00
250.00
5,000.00
2,500.00
2,500.00
1.00
1.00
1.00
1.00
1.00
2.00
2.00
40,260.00
1.00
1.00
2.00
1.00
47,477.00
1,20,228.00
1.00
1.00
1.00
1.00
1.00
2.00
2.00
40,260.00
1.00
1.00
2.00
1.00
47,477.00
1,20,228.00
239
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
8. Loans
[Item No. I(f )(ii) and II(b)(v), Page 210]
A. Non-current
(a) Security deposits
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Loans to related parties
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(c) Other loans
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
B. Current
(a) Loans to related parties
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Other loans
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(` crore)
As at
March 31, 2019
As at
March 31, 2018
200.13
2.02
2.02
200.13
13.00
558.95
558.95
13.00
18.03
0.53
0.53
18.03
231.16
193.84
2.12
2.12
193.84
-
558.95
558.95
-
19.66
0.87
0.87
19.66
213.50
(` crore)
As at
March 31, 2019
As at
March 31, 2018
52.01
68.72
68.72
52.01
3.91
2.00
2.00
3.91
55.92
69.26
68.25
68.25
69.26
4.87
2.00
2.00
4.87
74.13
(i)
(ii)
(iii)
Security deposits are primarily in relation to public utility services and rental agreements. It includes deposit with a subsidiary
`14.00 crore (March 31, 2018: `14.00 crore) and deposit with Tata Sons Private Limited `1.25 crore (March 31, 2018: `1.25 crore).
Non-current loans to related parties represent loans given to subsidiaries `571.95 crore (March 31, 2018: `558.95 crore), out of which
`558.95 crore (March 31, 2018: `558.95 crore) is impaired.
Current loans to related parties represent loans/advances given to subsidiaries `92.06 crore (March 31, 2018: `90.69 crore) and joint ventures
`28.67 crore (March 31, 2018: `46.82 crore) out of which `67.65 crore (2017-18: `67.65 crore) and `1.07 crore (2017-18: `0.60 crore)
respectively is impaired.
(iv) Other loans primarily represent loans given to employees.
240
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
8. Loans (Contd.)
[Item No. I(f )(ii) and II(b)(v), Page 210]
(v)
Disclosure as per Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 and Section 186(4) of the Companies Act, 2013.
(a)
Loans/advances in the nature of loan outstanding from subsidiaries, associates and joint ventures for the year ended March 31, 2019:
Name of the Company
Subsidiaries
(1) Bamnipal Steel Limited
(interest rate 10.00 %)
(2) Jamshedpur Football and Sporting Private Limited
(interest rate 12.25%)
(3) Jamshedpur Utilities & Services Company Limited
(interest rate 10.50 % to 12.50%)
(4) Subarnarekha Port Private Limited
(interest rate 10.50%)
(5) Tata Steel (KZN) (Pty) Ltd.(ii)
(6) Tata Steel Special Economic Zone Limited
(interest rate 10.00 % to 11.00 %)
(7) Tayo Rolls Limited(ii)
(interest rate 7.00 % to 13.07 %)
Associate
(1) TRF Limited.
(interest rate 10.00 % to 10.51 %)
Joint ventures
(1) Industrial Energy Limited
(interest rate 10.00 %)
(2) S & T Mining Company Private Limited(ii)
(interest rate 12.00 % to 14.00 %)
(3) T M Mining Company Limited
(interest rate 12.40%)
Figures in italics represents comparative figures of previous year.
(i) The above loans have been given for business purpose.
(` crore)
Debts
outstanding as at
March 31, 2019
Maximum balance
outstanding during
the year
-
-
-
15.00
-
7.50
20.00
-
558.95
558.95
13.00
-
67.00
67.00
-
-
27.60
46.22
1.07
0.60
-
-
18,631.65
-
15.00
15.00
7.50
11.50
20.00
-
558.95
558.95
13.00
80.00
67.00
67.00
242.00
-
46.22
46.22
1.07
0.60
0.05
-
241
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
8. Loans (Contd.)
[Item No. I(f )(ii) and II(b)(v), Page 210]
(ii) As at March 31, 2019, loans given to Tayo Rolls Limited, Tata Steel (KZN) (Pty) Ltd. and S & T Mining Company Private Limited were
fully impaired.
(b) Details of investments made and guarantees provided are given in note 6, page 232, note 7, page 235 and note 36B, page 278.
(vi) There are no outstanding debts from directors or other officers of the Company.
9. Other financial assets
[Item No. I(f )(iv) and II(b)(vii), Page 210]
A. Non-current
(a) Interest accrued on deposits and loans
Considered good - Unsecured
(b) Earmarked balances with banks
(c) Others
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
B. Current
(a) Interest accrued on deposits and loans
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Others
Considered good - Unsecured
242
(` crore)
As at
March 31, 2019
As at
March 31, 2018
0.50
34.96
275.19
-
-
275.19
310.65
0.67
19.96
0.58
2.00
2.00
0.58
21.21
(` crore)
As at
March 31, 2019
As at
March 31, 2018
6.30
14.32
14.32
6.30
934.46
940.76
27.54
14.32
14.32
27.54
463.97
491.51
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
9. Other financial assets (Contd.)
[Item No. I(f )(iv) and II(b)(vii), Page 210]
(i)
Non-current earmarked balances with banks represent deposits and balances in escrow account not due for realisation within 12
months from the balance sheet date. These are primarily placed as security with government bodies, margin money against issue of
bank guarantees.
(ii)
Non-current other financial assets include advance against purchase of equity shares in subsidiaries `275.19 crore (of which `258.69 crore
has been contributed by way of transfer of assets) (March 31, 2018: `2.00 crore) out of which Nil (March 31, 2018: `2.00 crore) is impaired.
(iii)
Current other financial assets include amount receivable from post-employment benefit funds `755.95 crore (March 31, 2018: `296.38
crore) on account of retirement benefit obligations paid by the Company directly.
10. Income tax
[Item No. IV(e), Page 210]
A.
Income tax expense/(benefit)
The Company is subject to income tax in India on the basis of its standalone financial statements. The Company can claim tax
exemptions/deductions under specific sections of the Income-tax Act, 1961 subject to fulfilment of prescribed conditions, as may be applicable.
As per the Income-tax Act, 1961, the Company is liable to pay income tax based on higher of regular income tax payable or the amount payable
based on the provisions applicable for Minimum Alternate Tax (MAT). MAT paid in excess of regular income tax during a year can be carried
forward for a period of fifteen years and can be offset against future tax liabilities arising from regular income tax.
Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which
the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.
The reconciliation of estimated income tax to income tax expense is as below:
Profit before tax
Expected income tax expense at statutory income tax rate of 34.944 % (2017-18: 34.608 %)
(a) Income exempt from tax/Items not deductible
(b) Additional tax benefit for capital investment including research and development expenditures
(c) Impact of change in tax rate(i)
Tax expense as reported
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
16,227.25
5,670.45
48.98
(25.37)
-
5,694.06
6,638.25
2,297.36
116.62
(26.79)
81.51
2,468.70
(i)
During the year ended March 31, 2018, the Company re-measured deferred tax balances expected to reverse in future periods based on
changes in statutory tax rate made by the Finance Act, 2018.
243
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
10. Income tax (Contd.)
[Item No. IV(e), Page 210]
B. Deferred tax assets/(liabilities)
(i) Components of deferred tax assets and liabilities as at March 31, 2019 is as below:
Balance
as at
April 1, 2018
Recognised/
(reversed)
in profit and
loss during the
year
Recognised
in other
comprehensive
income during
the year
3,040.80
186.00
1,838.05
-
-
1,173.75
2,158.92
7,223.77
-
1,173.75
13,391.83
313.21
-
-
-
-
-
-
91.03
13,482.86
(6,259.09)
(6,259.09)
257.49
570.70
603.05
(3.15)
(3.15)
3.15
Recognised
in equity during
the year
Other
movements
during the year
Balance
as at
March 31, 2019
(` crore)
-
-
-
-
-
(4.81)
-
(4.81)
4.81
-
-
-
3,040.80
186.00
3,011.80
(2,158.92)
(2,158.92)
-
6,238.60
-
13,700.23
-
-
(2,158.92)
345.37
14,045.60
(7,807.00)
(7,807.00)
Deferred tax assets:
Investments
Retirement benefit obligations
Expenses allowable for tax purposes when
paid/written off
MAT credit entitlement/(utilisation)
Deferred tax liabilities:
Property, plant and equipment and
intangible assets
Others
Net deferred tax assets/(liabilities)
Disclosed as:
Deferred tax liabilities (net)
244
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
10. Income tax (Contd.)
[Item No. IV(e), Page 210]
Components of deferred tax assets and liabilities as at March 31, 2018 is as below:
Balance
as at
April 1, 2017
Recognised/
(reversed)
in profit and
loss during the
year
Recognised
in other
comprehensive
income during the
year
107.43
3,011.56
184.21
1,821.46
1,513.30
76.52
6,714.48
(107.43)
29.24
1.79
16.59
(85.75)
(123.55)
(269.11)
-
-
-
-
731.37
(3.47)
727.90
Recognised
in equity during
the year
(` crore)
Balance
as at
March 31, 2018
-
-
-
-
-
-
-
-
3,040.80
186.00
1,838.05
2,158.92
(50.50)
7,173.27
12,781.58
616.45
-
(6.20)
13,391.83
44.17
12,825.75
(6,111.27)
(6,111.27)
(3.64)
612.81
(881.92)
-
-
727.90
-
(6.20)
6.20
40.53
13,432.36
(6,259.09)
(6,259.09)
Deferred tax assets/(liabilities):
Tax-loss carry forwards
Investments
Retirement benefit obligations
Expenses allowable for tax purposes when
paid/written off
MAT credit entitlement
Others
Deferred tax liabilities:
Property, plant and equipment and
intangible assets
Others
Net deferred tax assets/(liabilities)
Disclosed as:
Deferred tax liabilities (net)
(ii)
Deferred tax assets amounting to `8,112.23 crore as at March 31, 2019 (March 31, 2018: `8,112.23 crore) on fair value adjustment
recognised in respect of investments held in a subsidiary on transition to Ind AS has not been recognised due to uncertainty surrounding
availability of future taxable income against which such loss can be offset.
245
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
(` crore)
As at
March 31, 2019
As at
March 31, 2018
706.50
83.86
83.86
706.50
919.44
12.21
12.21
919.44
821.25
299.65
90.76
90.76
299.65
831.39
12.68
12.68
831.39
917.96
40.89
91.84
47.90
-
2,535.98
2,140.84
11. Other assets
[Item No. I(h) and II(c), Page 210]
A. Non-current
(a) Capital advances
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(b) Advances with public bodies
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(c) Prepaid lease payments for operating leases
(d) Capital advances to related parties
Considered good - Unsecured
(e) Others
Considered good - Unsecured
246
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
11. Other assets (Contd.)
[Item No. I(h) and II(c), Page 210]
B. Current
(a) Advances with public bodies
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(b) Advances to related parties
Considered good - Unsecured
(c) Prepaid lease payments for operating leases
(d) Others
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,575.77
2.43
2.43
1,575.77
140.03
140.03
11.67
482.51
66.10
66.10
482.51
2,209.98
1,440.57
2.35
2.35
1,440.57
171.29
171.29
12.97
187.22
60.77
60.77
187.22
1,812.05
(i)
(ii)
Advances with public bodies primarily relate to input credit entitlements and amounts paid under protest in respect of demands and
claims from regulatory authorities.
Prepaid lease payments for operating leases relate to land leases classified as operating as the title is not expected to transfer at the end
of the lease term and considering that the land has an indefinite economic life.
(iii) Others include advances against supply of goods/services and advances paid to employees.
247
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
12. Inventories
[Item No. II(a), Page 210]
(a) Raw materials
(b) Work-in-progress
(c)
(d) Stock-in-trade
(e) Stores and spares
Finished and semi-finished goods
Raw materials
Included above, goods-in-transit:
(i)
(ii) Finished and semi-finished goods
(iii) Stock-in-trade
(iv) Stores and spares
(` crore)
As at
March 31, 2019
As at
March 31, 2018
4,496.38
14.54
4,129.28
75.54
2,539.60
11,255.34
671.23
0.71
66.22
163.35
901.51
4,953.20
6.77
3,602.13
56.13
2,405.18
11,023.41
1,152.80
-
31.99
132.30
1,317.09
Value of inventories above is stated after provisions (net of reversal) `93.07 crore (March 31, 2018: `51.51 crore) for write-downs to net realisable
value and provision for slow-moving and obsolete items.
13. Trade receivables
[Item No. II(b)(ii), Page 210]
(a)
(b)
Considered good - Unsecured
Credit impaired
Less: Allowance for credit losses
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,363.04
34.74
1,397.78
34.74
1,363.04
1,875.63
30.97
1,906.60
30.97
1,875.63
In determining allowance for credit losses of trade receivables, the Company has used the practical expedient by computing the expected
credit loss allowance based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for
forward looking information. The expected credit loss allowance is based on ageing of the receivables and rates used in the provision matrix.
(i) Movements in allowance for credit losses of receivables is as below:
Balance at the beginning of the year
Charge/(release) during the year
Utilised during the year
Balance at the end of the year
248
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
30.97
3.77
-
34.74
18.10
13.86
(0.99)
30.97
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
13. Trade receivables (Contd.)
[Item No. II(b)(ii), Page 210]
(ii) Ageing of trade receivables and credit risk arising therefrom is as below:
Amounts not yet due
One month overdue
Two months overdue
Three months overdue
Between three to six months overdue
Greater than six months overdue
Amounts not yet due
One month overdue
Two months overdue
Three months overdue
Between three to six months overdue
Greater than six months overdue
Gross
credit risk
1,243.54
65.51
17.34
9.65
16.69
45.05
1,397.78
Gross
credit risk
1,785.18
44.25
12.84
6.60
18.12
39.61
1,906.60
As at March 31, 2019
Allowance for
credit losses
2.34
1.66
1.19
2.69
2.63
24.23
34.74
As at March 31, 2018
Allowance for
credit losses
0.65
0.40
0.39
0.67
1.81
27.05
30.97
(` crore)
Net
credit risk
1,241.20
63.85
16.15
6.96
14.06
20.82
1,363.04
(` crore)
Net
credit risk
1,784.53
43.85
12.45
5.93
16.31
12.56
1,875.63
(iii)
The Company considers its maximum exposure to credit risk with respect to customers as at March 31, 2019 to be `1,363.04 crore
(March 31, 2018: `1,875.63 crore), which is the carrying value of trade receivables after allowance for credit losses.
The Company’s exposure to customers is diversified and no single customer contributes more than 10% of the outstanding receivables as
at March 31, 2019 and March 31, 2018.
(iv) There are no outstanding receivables due from directors or other officers of the Company.
249
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
14. Cash and cash equivalents
[Item No. II(b)(iii), Page 210]
(a) Cash on hand
(b) Cheques, drafts on hand
(c) Remittances-in-transit
(d) Unrestricted balances with banks
(i) Cash and bank balances are denominated and held in Indian Rupees.
15. Other balances with banks
[Item No. II(b)(iv), Page 210]
Earmarked balances with banks
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1.35
7.74
8.97
526.79
544.85
0.93
8.85
1.73
4,577.38
4,588.89
As at
March 31, 2019
173.26
(` crore)
As at
March 31, 2018
107.85
(i)
Earmarked balances with banks include balances held for: unpaid dividends `64.88 crore (March 31, 2018: `55.00 crore), bank guarantees
and margin money `66.11 crore (March 31, 2018: `36.89 crore).
(ii)
Earmarked balances with banks are denominated and held in Indian Rupees.
250
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
16. Equity share capital
[Item No. III(a), Page 210]
Authorised:
1,75,00,00,000
35,00,00,000
2,50,00,000
60,00,00,000
Issued:
1,12,75,20,570
7,76,97,280
Ordinary Shares of `10 each
(March 31, 2018: 1,75,00,00,000 Ordinary Shares of `10 each)
‘A’ Ordinary Shares of `10 each*
(March 31, 2018: 35,00,00,000 ‘A’ Ordinary Shares of `10 each)
Cumulative Redeemable Preference Shares of `100 each*
(March 31, 2018: 2,50,00,000 Shares of `100 each)
Cumulative Convertible Preference Shares of `100 each*
(March 31, 2018: 60,00,00,000 Shares of `100 each)
Ordinary Shares of `10 each
(March 31, 2018: 1,12,75,20,570 Ordinary Shares of `10 each)
Ordinary Shares of `10 each (partly paid up, `2.504 each paid up)
(March 31, 2018: 7,76,97,280 Ordinary Shares of `10 each,
`2.504 each paid up)
Subscribed and paid up:
1,12,64,89,680
7,76,36,705
Ordinary Shares of `10 each fully paid up
(March 31, 2018: 1,12,64,84,815 Ordinary Shares of `10 each)
Ordinary Shares of `10 each (partly paid up, `2.504 each paid up)
(March 31, 2018: 7,76,34,625 Ordinary Shares of `10 each,
`2.504 each paid up)
Amount paid up on 3,89,516 Ordinary Shares of `10 each forfeited
(March 31, 2018: 3,89,516 Shares of `10 each)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,750.00
1,750.00
350.00
250.00
350.00
250.00
6,000.00
6,000.00
8,350.00
8,350.00
1,127.52
1,127.52
77.70
77.70
1,205.22
1,205.22
1,126.48
1,126.48
19.44
19.44
0.20
1,146.12
0.20
1,146.12
* ‘A’ class Ordinary Shares and Preference Shares included within the authorised share capital are for disclosures purposes and have not
yet been issued.
(i)
Subscribed and paid up share capital includes 11,81,893 (March 31, 2018: 11,68,393) Ordinary Shares of face value `10 each fully paid up
held by subsidiaries of the Company.
(ii) Details of movement in subscribed and paid up share capital is as below:
Ordinary Shares of `10 each
Balance at the beginning of the year
Fully paid shares allotted during the year(a),(b),(c)
Partly paid shares allotted during the year(d)
Balance at the end of the year
* represents value less than `0.01 crore.
As at
March 31, 2019
As at
March 31, 2018
No. of shares
` crore
No. of shares
` crore
1,20,41,19,440
4,865
2,080
1,20,41,26,385
1,145.92
0.00*
0.00*
1,145.92
97,12,15,439
15,52,69,376
7,76,34,625
1,20,41,19,440
971.21
155.27
19.44
1,145.92
251
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
16. Equity share capital (Contd.)
[Item No. III(a), Page 210]
(a)
(b)
(c)
(d)
690 Ordinary Shares of face value `10 each were allotted at a premium of `290 per share to the shareholders whose shares were kept
in abeyance in the Rights Issue of 2007.
11 Ordinary Shares of face value `10 each were allotted at a premium of `590 per share in lieu of Cumulative Convertible Preference
Shares of `100 each to the shareholders whose shares were kept in abeyance in the Rights Issue of 2007.
4,164 fully paid Ordinary Shares of face value `10 each were allotted at a premium of `500 per share to the shareholders whose
shares were kept in abeyance in the Rights Issue of 2018.
2,080 partly paid Ordinary Shares of face value `10 each (`2.504 paid up) were allotted at a premium of `605 (`151.496 paid up) per
share to the shareholders whose shares were kept in abeyance in the Rights Issue of 2018.
(iii) The balance proceeds which remained unutilised as at March 31, 2018 from the Rights Issue, 2018 have been fully utilised during the
year as below:
Particulars
Repayments of loan
Expenses towards general corporate purpose
Issue expense
Total
Utilised till March
31, 2018
Utilised during the
year ended
March 31, 2019
5,000.00
1,500.00
-
6,500.00
1,950.00
630.44
33.85
2,614.29
(` crore)
Total
6,950.00
2,130.44
33.85
9,114.29
(iv)
As at March 31, 2019, 2,99,188 Ordinary Shares of face value `10 each (March 31, 2018: 3,00,395 Ordinary Shares) are kept in abeyance in
respect of Rights Issue of 2007.
As at March 31, 2019, 1,21,460 fully paid Ordinary Shares of face value `10 each (March 31, 2018: 1,25,624 fully paid Ordinary Shares) and
60,575 partly paid Ordinary Shares of face value `10 each, `2.504 paid up (March 31, 2018: 62,655 partly paid Ordinary Shares, `2.504 paid
up) are kept in abeyance in respect of Rights Issue of 2018.
(v) Details of shareholders holding more than 5 percent shares in the Company is as below:
Name of shareholders
(a) Tata Sons Private Limited
(b) Life Insurance Corporation of India
As at
March 31, 2019
As at
March 31, 2018
No. of Ordinary
Shares
% held
No. of Ordinary
Shares
% held
38,09,73,085
10,83,88,660
31.64
9.00
38,09,73,085
10,83,88,660
31.64
9.00
252
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
16. Equity share capital (Contd.)
[Item No. III(a), Page 210]
(vi)
1,34,73,958 shares (March 31, 2018: 1,27,40,651 shares) of face
value of `10 per share represent the shares underlying GDRs
which were issued during 1994 and 2009. Each GDR represents
one underlying Ordinary Share.
(vii) The rights, powers and preferences relating to each class of
share capital and the qualifications, limitations and restrictions
thereof are contained in the Memorandum and Articles of
Association of the Company. The principal rights are as below:
A. Ordinary Shares of `10 each
(i)
(ii)
(iii)
In respect of every Ordinary Share (whether fully paid or partly
paid), voting right and dividend shall be in the same proportion
as the capital paid up on such Ordinary Share bears to the total
paid up Ordinary Capital of the Company.
The dividend proposed by the Board of Directors is subject to
the approval of the Shareholders in the ensuing Annual General
Meeting, except in case of interim dividend.
In the event of liquidation, the Shareholders of Ordinary Shares
are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to
their shareholding.
B.
‘A’ Ordinary Shares of `10 each
(i)
(a)
The holders of ‘A’ Ordinary Shares shall be entitled to such
rights of voting and/or dividend and such other rights as per
the terms of the issue of such shares, provided always that:
-
-
in the case where a resolution is put to vote on a
poll, such differential voting entitlement (excluding
fractions, if any) will be applicable to holders of ‘A’
Ordinary Shares.
in the case where a resolution is put to vote in the
meeting and is to be decided on a show of hands,
the holders of ‘A’ Ordinary Shares shall be entitled to
the same number of votes as available to holders of
Ordinary Shares.
(b)
The holders of Ordinary Shares and the holders of ‘A’
Ordinary Shares shall vote as a single class with respect
to all matters submitted for voting by shareholders of
the Company and shall exercise such votes in proportion
to the voting rights attached to such shares including in
relation to any scheme under Sections 391 to 394 of the
Companies Act, 1956.
(ii)
The holders of ‘A’ Ordinary Shares shall be entitled to dividend
on each ‘A’ Ordinary Share which may be equal to or higher
than the amount per Ordinary Share declared by the Board
for each Ordinary Share, and as may be specified at the time
of the issue. Different series of ‘A’ Ordinary Shares may carry
different entitlements to dividend to the extent permitted
under applicable law and as prescribed under the terms
applicable to such issue.
C. Preference Shares
The Company has two classes of Preference Shares
i.e.
Cumulative Redeemable Preference Shares (CRPS) of `100 per
share and Cumulative Convertible Preference Shares (CCPS) of
`100 per share.
(i)
(ii)
Such shares shall confer on the holders thereof, the right to a
fixed preferential dividend from the date of allotment, at a rate as
may be determined by the Board at the time of the issue, on the
capital for the time being paid up or credited as paid up thereon.
Such shares shall rank for capital and dividend (including all
dividend undeclared upto the commencement of winding up)
and for repayment of capital in a winding up, pari passu inter
se and in priority to the Ordinary Shares of the Company, but
shall not confer any further or other right to participate either
in profits or assets. However, in case of CCPS, such preferential
rights shall automatically cease on conversion of these shares
into Ordinary Shares.
(iii)
The holders of such shares shall have the right to receive all
notices of general meetings of the Company but shall not confer
on the holders thereof the right to vote at any meetings of the
Company save to the extent and in the manner provided in the
Companies Act, 1956, or any re-enactment thereof.
(iv)
CCPS shall be converted into Ordinary Shares as per the terms,
determined by the Board at the time of issue; as and when
converted, such Ordinary Shares shall rank pari passu with the
then existing Ordinary Shares of the Company in all respects.
253
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
17. Hybrid perpetual securities
[Item No. III(b), Page 210]
The detail of movement in hybrid perpetual securities is as below:
Balance at the beginning of the year
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,275.00
2,275.00
2,275.00
2,275.00
The Company had issued hybrid perpetual securities of `775.00 crore and `1,500.00 crore in May 2011 and March 2011 respectively.
These securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. The distribution on
these securities are 11.50% p.a. and 11.80% p.a. respectively, with a step up provision if the securities are not called after 10 years. The distribution
on the securities may be deferred at the option of the Company if in the six months preceding the relevant distribution payment date, the
Company has not made payment on, or repurchased or redeemed, any securities ranking pari passu with, or junior to the instrument. As these
securities are perpetual in nature and the Company does not have any redemption obligation, these have been classified as equity.
18. Other equity
[Item No. III(c), Page 210]
A. Retained earnings
The details of movement in retained earnings is as below:
Balance at the beginning of the year
Profit for the year
Remeasurement of post-employment defined benefit plans
Tax on remeasurement of post-employment defined benefit plans
Dividend
Tax on dividend
Distribution on hybrid perpetual securities
Tax on distribution on hybrid perpetual securities
Transfers within equity(i)
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
18,700.25
10,533.19
5.95
(2.07)
(1,145.92)
(224.86)
(266.12)
92.99
1.49
27,694.90
12,280.91
4,169.55
237.63
(82.24)
(971.22)
(188.41)
(266.13)
92.70
3,427.46
18,700.25
(i)
Represents profit on sale of investments carried at fair value through other comprehensive income reclassified from investment
revaluation reserve.
B.
Items of other comprehensive income
(a) Cash flow hedge reserve
The cumulative effective portion of gains or losses arising from changes in fair value of hedging instruments designated as cash flow hedges
are recognised in cash flow hedge reserve. Such changes recognised are reclassified to the statement of profit and loss when the hedged item
affects the profit or loss or are included as an adjustment to the cost of the related non-financial hedged item.
254
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
18. Other equity (Contd.)
[Item No. III(c), Page 210]
The Company has designated certain foreign currency forward contracts and interest rate swaps as cash flow hedges in respect of foreign
exchange and interest rate risks.
The details of movement in cash flow hedge reserve is as below:
Balance at the beginning of the year
Other comprehensive income recognised during the year
Balance at the end of the year
(i) The details of other comprehensive income recognised during the year is as below:
Fair value changes recognised during the year
Fair value changes reclassified to profit and loss/cost of hedged items
Tax impact on above
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
5.14
(6.91)
(1.77)
(1.35)
6.49
5.14
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
(27.94)
17.32
3.71
(6.91)
8.02
1.94
(3.47)
6.49
During the year, ineffective portion of cash flow hedges recognised in the statement of profit and loss amounted to Nil (2017-18: Nil)
(ii) The amount recognised in cash flow hedge reserve (net of tax) is expected to impact the statement of profit and loss as below:
-
-
within the next one year: loss `2.17 crore (2017-18: gain `1.39 crore)
later than one year: gain `0.40 crore (2017-18: gain `3.75 crore)
(b) Investment revaluation reserve
The cumulative gains and losses arising from fair value changes of equity investments measured at fair value through other comprehensive
income are recognised in investment revaluation reserve. The balance of the reserve represents such changes recognised net of amounts
reclassified to retained earnings on disposal of such investments.
The details of movement in investment revaluation reserve is as below:
Balance at the beginning of the year
Other comprehensive income recognised during the year
Tax impact on above
Transfers within equity
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
103.72
(46.63)
(0.56)
(1.49)
55.04
3,754.18
(223.00)
-
(3,427.46)
103.72
255
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
18. Other equity (Contd.)
[Item No. III(c), Page 210]
C. Other reserves
(a) Securities premium
Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.
The details of movement in securities premium is as below:
Balance at the beginning of the year
Received/transfer on issue of Ordinary Shares during the year
Equity issue expenses written (off )/back during the year
Balance at the end of the year
(b) Debenture redemption reserve
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
27,779.42
0.26
0.57
27,780.25
18,873.68
8,939.59
(33.85)
27,779.42
The Companies Act, 2013 requires that a company which has issued debentures, shall create a debenture redemption reserve out of profits of
the company available for payment of dividend. The company is required to maintain a debenture redemption reserve of 25% of the value of
debentures issued, either by a public issue or on a private placement basis. The amounts credited to the debenture redemption reserve cannot
be utilised by the company except to redeem debentures.
The details of movement in debenture redemption reserve during the year is as below:
Balance at the beginning of the year
Balance at the end of the year
(c) General reserve
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,046.00
2,046.00
2,046.00
2,046.00
Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in
accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a
specified percentage of net profit to general reserve has been withdrawn.
The details of movement in general reserve during the year is as below:
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
11,596.35
11,596.35
11,596.35
11,596.35
Balance at the beginning of the year
Balance at the end of the year
256
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
18. Other equity (Contd.)
[Item No. III(c), Page 210]
(d) Capital redemption reserve
The Companies Act, 2013 requires that when a company purchases its own shares out of free reserves or securities premium account, a sum
equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and details of such transfer
shall be disclosed in the balance sheet. The capital redemption reserve account may be applied by the Company, in paying up unissued shares
of the Company to be issued to shareholders of the Company as fully paid bonus shares. The Company established this reserve pursuant to the
redemption of preference shares issued in earlier years.
The details of movement in capital redemption reserve during the year is as below:
Balance at the beginning of the year
Balance at the end of the year
(e) Others
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
20.78
20.78
20.78
20.78
Others primarily represent amount appropriated out of the statement of profit and loss for unforeseen contingencies. Such appropriations are
free in nature.
The details of movement in others during the year is as below:
Balance at the beginning of the year
Balance at the end of the year
D. Share application money pending allotment
The details of movement in share application money pending allotment during the year is as below:
Balance at the beginning of the year
Application money received during the year
Allotment of Ordinary Shares during the year
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
117.04
117.04
117.04
117.04
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
0.02
0.24
(0.26)
-
0.01
0.02
(0.01)
0.02
257
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
19. Borrowings
[Item No. IV(a)(i) and V(a)(i), Page 210]
A. Non-current
(a) Secured
(i)
Loans from Joint Plant Committee - Steel Development Fund
(b) Unsecured
(i) Non-convertible debentures
(ii) Term loans from banks/financial institutions
(iii) Finance lease obligations
B. Current
(a) Secured
(i)
Repayable on demand from banks/financial institutions
(b) Unsecured
(i)
Loans from banks/financial institutions
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,564.10
2,494.42
12,195.74
9,956.98
1,934.37
26,651.19
9,846.00
10,094.88
2,133.65
24,568.95
(` crore)
As at
March 31, 2019
As at
March 31, 2018
8.09
-
8.09
34.44
635.44
669.88
(i)
As at March 31, 2019, `2,572.19 crore (March 31, 2018: `2,528.86
crore) of the total outstanding borrowings were secured
by a charge on property, plant and equipment, inventories
and receivables.
and charges created and/or to be created on specific items of
machinery and equipment procured/to be procured under
deferred payment schemes/bill re-discounting schemes/asset
credit schemes.
(ii)
The security details of major borrowings as at March 31,
2019 is as below:
The loan is repayable in 16 equal semi-annual instalments after
completion of four years from the date of the tranche.
(a) Loans from Joint Plant Committee-Steel Development Fund
It is secured by mortgages on, all present and future immovable
properties wherever situated and hypothecation of movable
assets, excluding land and building mortgaged in favour
of Government of India under the deed of mortgage dated
April 13, 1967 and in favour of Government of Bihar under two
deeds of mortgage dated May 11, 1963, immovable properties
and movable assets of the Tube Division, Bearing Division, Ferro
Alloys Division and Cold Rolling Complex (West) at Tarapur
and all investments and book debts of the Company subject
to the prior charges created and/or to be created in favour of
bankers for securing borrowing for working capital requirement
The Company has filed a writ petition before the High Court at
Kolkata in February 2006 claiming waiver of the outstanding
loan and interest and refund of the balance lying with Steel
Development Fund and the matter is subjudice.
The loan includes funded interest `924.77 crore (March 31,
2018: `855.09 crore).
It includes `1,639.33 crore (March 31, 2018: `1,639.33 crore)
representing repayments and interest on earlier loans for which
applications of funding are awaiting sanction and is not secured
by charge on movable assets of the Company.
258
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
19. Borrowings (Contd.)
[Item No. IV(a)(i) and V(a)(i), Page 210]
(iii)
The details of major unsecured borrowings as at March 31,
2019 is as below:
(a) Non-convertible debentures
(i)
(ii)
9.84% p.a. interest bearing 43,150 debentures of face value
`10,00,000 each are redeemable at par in 4 equal annual
instalments commencing from February 28, 2031.
10.25% p.a. interest bearing 25,000 debentures of face
value `10,00,000 each are redeemable at par in 3 equal
annual instalments commencing from January 6, 2029.
(iii)
10.25% p.a. interest bearing 5,000 debentures of face value
`10,00,000 each are redeemable at par in 3 equal annual
instalments commencing from December 22, 2028.
(iv)
8.15% p.a. interest bearing 10,000 debentures of face value
`10,00,000 each are redeemable at par on October 1, 2026.
(v)
2.00% p.a. interest bearing 15,000 debentures of face value
`10,00,000 each are redeemable at a premium of 85.03% of
the face value on April 23, 2022.
(vi)
9.15% p.a. interest bearing 5,000 debentures of face value
`10,00,000 each are redeemable at par on January 24, 2021.
(vii) 11.00% p.a. interest bearing 15,000 debentures of face value
`10,00,000 each are redeemable at par on May 19, 2019.
(viii) 10.40% p.a. interest bearing 6,509 debentures of face value
`10,00,000 each are redeemable at par on May 15, 2019.
(b) Term loans from banks/financial institutions
(i)
(ii)
Rupee loan amounting `2,500.00 crore (March 31, 2018:
`4,450.00 crore) is repayable in 9 quarterly instalments
commencing from March 31, 2023.
Rupee loan amounting `1,047.50 crore (March 31, 2018:
`1,485.00 crore) is repayable in 10 semi-annual instalments,
the next instalment is due on November 29, 2022.
(iii)
Rupee loan amounting `584.58 crore (March 31, 2018:
`823.84 crore) is repayable in 8 semi-annual instalments,
the next instalment is due on June 15, 2021.
(iv)
(v)
(vi)
Rupee loan amounting `750.00 crore (March 31, 2018:
`750.00 crore) is repayable in 3 equal annual instalments
commencing from May 21, 2021.
USD 7.86 million equivalent to `54.38 crore (March 31, 2018:
USD 7.86 million equivalent to `51.24 crore) is repayable
on March 1, 2021.
Rupee loan amounting `1,600.00 crore (March 31, 2018:
`2,000.00 crore) is repayable in 8 semi-annual instalments,
the next instalment is due on April 30, 2020.
(vii) USD 200.00 million equivalent to `1,383.55 crore
(March 31, 2018: USD 200.00 million equivalent to `1,303.65
crore) loan is repayable in 3 equal annual instalments
commencing from February 18, 2020.
(viii) Rupee loan amounting `640.42 crore (March 31, 2018:
`646.16 crore) is repayable in 16 semi-annual instalments,
the next instalment is due on August 14, 2019.
(ix)
(x)
Euro 16.21 million equivalent to `125.96 crore (March 31,
2018: Euro 21.62 million equivalent to `174.68 crore) loan
is repayable in 6 equal semi-annual instalments, the next
instalment is due on July 8, 2019.
Euro 66.87 million equivalent to `519.58 crore (March 31,
2018: Euro 85.98 million equivalent to `694.80 crore) loan
is repayable in 7 equal semi-annual instalments, the next
instalment is due on April 30, 2019.
(xi)
Rupee loan amounting `1,485.00 crore (March 31, 2018:
Nil) is repayable in 19 semi-annual instalments, the next
instalment is due on April 16, 2019.
(c) Finance lease obligations
The Company has taken certain plant and machinery on lease
for business purpose. In addition, the Company has entered into
long-term arrangements whose fulfilment is dependent on the
use of dedicated assets. Some of the arrangements have been
assessed as being in the nature of lease and have been classified
as finance lease.
Finance lease obligations represent the present value of
lease term.
lease payments payable over the
minimum
The arrangements have been classified as secured or unsecured
based on the legal form.
259
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
19. Borrowings (Contd.)
[Item No. IV(a)(i) and V(a)(i), Page 210]
(iii) Currency and interest exposure of borrowings including current maturities at the end of the reporting period is as below:
As at March 31, 2019
As at March 31, 2018
Fixed
rate
16,476.27
425.00
-
16,901.27
Floating
rate
11,162.42
212.29
1,425.49
12,800.20
Total
27,638.69
637.29
1,425.49
29,701.47
Fixed
rate
13,234.70
565.37
-
13,800.07
Floating
rate
12,663.12
326.13
1,336.48
14,325.73
(` crore)
Total
25,897.82
891.50
1,336.48
28,125.80
INR
EURO
USD
Total
INR-Indian Rupees, USD-United States Dollars.
(iv)
Majority of floating rate borrowings are bank borrowings bearing interest rates based on LIBOR and EURIBOR. Of the total floating rate
borrowings as at March 31, 2019, `1,037.66 crore (March 31, 2018: `977.74 crore) has been hedged using interest rate swaps and collars,
with contracts covering period of more than one year.
(v) Maturity profile of borrowings including current maturities is as below:
Not later than one year or on demand
Later than one year but not two years
Later than two years but not three years
Later than three years but not four years
Later than four years but not five years
More than five years
Less: Future finance charges on finance leases
Less: Capitalisation of transaction costs
(` crore)
As at
March 31, 2019
As at
March 31, 2018
3,325.08
2,033.20
1,912.66
4,206.95
2,611.95
18,625.16
32,715.00
2,560.34
453.19
29,701.47
3,902.13
3,693.68
2,228.26
1,966.48
4,227.71
16,510.22
32,528.48
3,746.79
655.89
28,125.80
(vi)
Some of the Company’s major financing arrangements include financial covenants, which require compliance to certain debt-equity
and debt coverage ratios. Additionally, certain negative covenants may limit the Company’s ability to borrow additional funds or to incur
additional liens, and/or provide for increased costs in case of breach.
260
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
20. Other financial liabilities
[Item No. IV(a)(iii) and V(a)(iv), Page 210]
A. Non-current
Creditors for other liabilities
B. Current
(a) Current maturities of long-term borrowings
(b) Current maturities of finance lease obligations
(c)
(d) Unclaimed dividends
(e) Creditors for other liabilities
Interest accrued but not due
(i)
Non-current and current creditors for other liabilities include:
(a)
(b)
creditors for capital supplies and services `1,582.88 crore (March 31, 2018: `1,725.31 crore).
liability for employee family benefit scheme `189.87 crore (March 31, 2018: `184.39 crore).
21. Provisions
[Item No. IV(b) and V(b), Page 210]
A. Non-current
(a) Employee benefits
(b) Others
B. Current
(a) Employee benefits
(b) Others
As at
March 31, 2019
125.07
(` crore)
As at
March 31, 2018
19.78
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,846.70
195.49
569.36
64.88
3,195.92
6,872.35
2,767.16
119.81
556.01
55.00
3,043.42
6,541.40
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,556.66
361.52
1,918.18
1,663.88
297.33
1,961.21
(` crore)
As at
March 31, 2019
As at
March 31, 2018
300.80
477.43
778.23
356.27
379.01
735.28
(i)
Non-current and current provision for employee benefits include provision for leave salaries `999.39 crore (March 31, 2018: `984.33 crore)
and provision for early separation scheme `843.14 crore (March 31, 2018: `1,019.98 crore).
261
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
21. Provisions (Contd.)
[Item No. IV(b) and V(b), Page 210]
(ii)
As per the leave policy of the Company, an employee is entitled to be paid the accumulated leave balance on separation. The Company
presents provision for leave salaries as current and non-current based on actuarial valuation considering estimates of availment of leave,
separation of employee etc.
(iii) Non-current and current other provisions include:
(a)
(b)
provision for compensatory afforestation, mine closure and rehabilitation obligations `791.62 crore (March 31, 2018: `626.01 crore).
These amounts become payable upon closure of the mines and are expected to be incurred over a period of 1 to 33 years.
provision for legal and constructive commitments provided by the Company in respect of a loss making subsidiary `47.33 crore
(March 31, 2018: `50.33 crore). The same is expected to be settled within one year from the reporting date.
(iv) The details of movement in other provisions is as below:
Balance at the beginning of the year
Recognised/(released) during the year (i)
Utilised during the year
Balance at the end of the year
(i) includes provisions capitalised during the year in respect of restoration obligations.
22. Retirement benefit obligations
[Item No. IV(c) and V(c), Page 210]
A. Non-current
(a) Retiring gratuities
(b) Post-retirement medical benefits
(c) Other defined benefits
B. Current
(a) Post-retirement medical benefits
(b) Other defined benefits
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
676.34
190.91
(28.30)
838.95
664.71
96.88
(85.25)
676.34
(` crore)
As at
March 31, 2019
As at
March 31, 2018
80.21
1,182.12
168.02
1,430.35
60.97
1,119.32
67.44
1,247.73
(` crore)
As at
March 31, 2019
As at
March 31, 2018
88.89
13.23
102.12
85.38
5.12
90.50
(i) Detailed disclosure in respect post-retirement defined benefit schemes is provided in note 35, page 269.
(ii) Other defined benefits include post-retirement lumpsum benefits, long service awards, packing and transportation, farewell gifts etc.
262
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
23. Deferred income
[Item No. IV(d), Page 210]
Grants relating to property, plant and equipment
As at
March 31, 2019
747.23
(` crore)
As at
March 31, 2018
1,365.61
(i)
Grants relating to property, plant and equipment relate to duty saved on import of capital goods and spares under the EPCG scheme.
Under the scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period
of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory
authorities. Such grants recognised are released to the statement of profit and loss based on fulfilment of related export obligations.
During the year, an amount of `618.38 crore (2017-18: `519.31 crore) was released from deferred income to the statement of profit and
loss on fulfilment of export obligations.
24. Other liabilities
[Item No. IV(f ) and V(e), Page 210]
A. Non-current
(a) Statutory dues
(b) Other credit balances
B. Current
(a) Advances received from customers
(b) Employee recoveries and employer contributions
(c) Statutory dues
(` crore)
As at
March 31, 2019
As at
March 31, 2018
19.77
416.39
436.16
35.47
189.24
224.71
(` crore)
As at
March 31, 2019
As at
March 31, 2018
484.99
70.22
5,810.38
6,365.59
363.82
59.54
5,433.70
5,857.06
(i)
Statutory dues primarily relate to payables in respect of GST, excise duty, service tax, sales tax, VAT, tax deducted at source and royalties.
263
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
25. Trade payables
[Item No. V(a)(ii), Page 210]
A. Total outstanding dues of micro and small enterprises
Dues of micro and small enterprises
B. Total outstanding dues of creditors other than micro and small enterprises
(a) Creditors for supplies and services
(b) Creditors for accrued wages and salaries
(` crore)
As at
March 31, 2019
As at
March 31, 2018
149.49
149.49
25.48
25.48
(` crore)
As at
March 31, 2019
As at
March 31, 2018
8,995.84
1,824.23
10,820.07
9,724.05
1,493.22
11,217.27
(i)
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 is as below:
Principal amount remaining unpaid to supplier at the end of the year
Interest due thereon remaining unpaid to supplier at the end of the year
(i)
(ii)
(iii) 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
(` crore)
As at
March 31, 2019
As at
March 31, 2018
149.49
3.55
8.09
25.48
1.24
5.58
(iv) Amount of interest accrued during the year and remaining unpaid at the end of the year
11.64
6.82
26. Revenue from operations
[Item No. I, Page 211]
(a)
(b)
(c)
Sale of products
Sale of power and water
Other operating revenues (ii)
264
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
67,213.85
1,709.51
1,687.56
70,610.92
57,614.48
1,690.60
1,214.29
60,519.37
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
26. Revenue from operations (Contd.)
[Item No. I, Page 211]
(i) Revenue from contracts with customers disaggregated on the basis of geographical region and major businesses is as below:
(a)
(b)
(c)
Steel
Power and water
Others
(a)
(b)
(c)
Steel
Power and water
Others
Year ended March 31, 2019
India
58,777.12
1,709.51
1,801.94
62,288.57
Outside India
4,342.26
-
2,292.53
6,634.79
Year ended March 31, 2018
India
49,715.06
1,690.60
1,818.22
53,223.88
Outside India
4,026.72
-
2,054.48
6,081.20
(` crore)
Total
63,119.38
1,709.51
4,094.47
68,923.36
(` crore)
Total
53,741.78
1,690.60
3,872.70
59,305.08
(ii)
Other operating revenues include export incentives and deferred income released to the statement of profit and loss on fulfilment of
export obligations under the EPCG scheme.
27. Other income
[Item No. II, Page 211]
Interest income
(a) Dividend income
(b)
(c) Net gain/(loss) on sale/fair value changes of mutual funds
(d) Gain/(loss) on sale of property, plant and equipment including intangible assets (net of loss on
assets sold/scrapped/written off )
(e) Gain/(loss) on cancellation of forwards, swaps and options
(f ) Other miscellaneous income
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
96.25
1,627.24
596.79
(1.42)
36.95
49.27
2,405.08
88.57
69.56
679.64
(40.48)
(79.33)
45.70
763.66
(i)
Dividend income includes income from investments carried at fair value through other comprehensive income `18.25 crore
(2017-18: `17.20 crore).
(ii)
Interest income includes:
(a)
income on financial assets carried at amortised cost `874.36 crore (2017-18: `61.06 crore).
(b)
income on financial assets carried at fair value through profit and loss `752.88 crore (2017-18: `8.50 crore).
265
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
28. Changes in inventories of finished and semi-finished goods, stock-in-trade and work-in-progress
[Item No. IV(c), Page 211]
Inventories at the end of the year
(a) Work-in-progress
(b) Finished and semi-finished goods
(c) Stock-in-trade
Inventories at the beginning of the year
(a) Work-in-progress
(b) Finished and semi-finished goods
(c) Stock-in-trade
Increase/(decrease)
29. Employee benefits expense
[Item No. IV(d), Page 211]
(a) Salaries and wages
(b) Contribution to provident and other funds
(c) Staff welfare expenses
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
14.54
4,129.28
75.54
4,219.36
6.77
3,602.13
56.13
3,665.03
554.33
6.77
3,602.13
56.13
3,665.03
5.88
4,096.56
107.95
4,210.39
(545.36)
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
4,306.68
473.94
350.44
5,131.06
4,130.68
446.75
251.42
4,828.85
(i)
During the year ended March 31, 2019, the Company has recognised an amount of `27.06 crore (2017-18: `19.04 crore) as remuneration
to key managerial personnel. The details of such remuneration is as below:
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
22.05
4.88
0.13
27.06
19.03
(0.02)
0.03
19.04
(a) Short-term employee benefits
(b) Post-employment benefits
(c) Other long-term employee benefits
266
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
30. Finance costs
[Item No. IV(e), Page 211]
Interest expense on:
(a) Bonds, debentures, bank borrowings and others
(b) Finance leases
Less: Interest capitalised
(i) Other interest expense include interest on income tax Nil (2017-18: `5.85 crore).
31. Depreciation and amortisation expense
[Item No. IV(f ), Page 211]
(a) Depreciation on property, plant and equipment
(b) Amortisation of intangible assets
32. Other expenses
[Item No. IV(g), Page 211]
(a) Consumption of stores and spares
(b) Repairs to buildings
(c) Repairs to machinery
(d) Relining expenses
(e) Fuel oil consumed
(f ) Purchase of power
(g) Conversion charges
(h) Freight and handling charges
(i)
(j)
(k) Rates and taxes
(l)
(m) Commission, discounts and rebates
(n) Allowance for credit losses/provision for advances
(o) Excise duty (including recovered on sales)
(p) Others
Insurance charges
Rent
Royalty
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,644.94
267.32
2,912.26
88.68
2,823.58
2,547.68
338.90
2,886.58
75.96
2,810.62
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
3,652.67
150.29
3,802.96
3,585.44
142.02
3,727.46
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
4,040.28
61.34
2,950.18
87.58
210.87
2,822.47
2,722.06
4,319.64
72.09
2,002.89
1,201.05
133.10
188.63
1.42
0.21
3,809.00
24,622.81
3,306.45
71.79
2,602.61
51.79
154.21
2,770.99
2,838.13
4,102.23
75.43
1,572.69
966.02
111.22
193.87
54.48
902.55
2,403.56
22,178.02
267
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
32. Other expenses (Contd.)
[Item No. IV(g), Page 211]
(i)
Others include: net foreign exchange loss `134.41 crore (2017-18: gain `122.31 crore), loss on fair value changes of financial assets
carried at fair value through profit and loss `111.31 crore (2017-18: gain of `387.93 crore) and donations to electoral trusts `175.00 crore
(2017-18: Nil).
(ii) Details of auditors’ remuneration and out-of-pocket expenses is as below:
(a)
(b)
Auditors remuneration and out-of-pocket expenses
(i) Statutory audit fees
(ii) Tax audit fees
(iii) For other services#
(iv) Out-of-pocket expenses
Cost audit fees [including out of pocket expenses `6,936 (2017-18: `32,206)]
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
6.18
0.40
0.74
0.12
0.18
4.75
0.40
0.60
0.25
0.18
# Other services includes Nil (2017-18: `0.45 crore) in respect of rights issue which has been charged to securities premium.
(iii)
As per the Companies Act, 2013, amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during
the year was `82.40 crore (2017-18: `85.62 crore).
During the year ended March 31, 2019, in respect of CSR activities the Company incurred revenue expenditure which was recognised in the
statement of profit and loss amounting to `271.62 crore (`270.12 crore has been paid in cash and `1.50 crore is yet to be paid). During the
year ended March 31, 2018, similar expense incurred was `189.96 crore (`188.96 crore was paid in cash and `1.00 crore was unpaid).
During the year ended March 31, 2019, capital expenditure incurred on construction of capital assets under CSR projects is `43.32 crore
(`30.92 crore paid in cash and `12.40 crore is yet to be paid). During the year ended March 31, 2018, similar expense incurred was `41.66
crore (`24.25 crore was paid in cash and `17.41 crore was unpaid).
(iv)
During the year ended March 31, 2019, revenue expenditure charged to the statement of profit and loss in respect of research and
development activities undertaken was `212.97 crore (2017-18: `159.22 crore) including depreciation of `7.80 crore (2017-18: `7.67 crore).
Capital expenditure incurred in respect of research and development activities during the year was `21.45 crore (2017-18: `22.42 crore).
33. Exceptional items
[Item No. VI, Page 211]
Exceptional items are those which are considered for separate disclosure in the financial statements considering their size, nature or
incidence. Such items included within the statement of profit and loss are detailed below:
Profit/(loss) on sale of non-current investments `262.28 crore (2017-18: Nil) relates to profit recognised on sale of investment in TRL
Krosaki Refractories Limited, an associate of the Company.
Provision for impairment of investments/doubtful advances `12.53 crore (2017-18: `36.27 crore) relates to provision recognised
for impairment of investments in subsidiaries and joint ventures. During the year ended March 31, 2018 the Company recognised
provision in respect of advances paid for repurchase of equity shares in Tata Teleservices Limited from NTT Docomo Inc `26.65 crore.
Provision for demands and claims `328.64 crore (2017-18: `3,213.68 crore) relates to provision recognised in respect of certain
statutory demands and claims relating to environment and mining matters.
Employee separation compensation `35.34 crore (2017-18: `89.69 crore) relates to provisions recognised in respect of employee
separation scheme of employees.
(a)
(b)
(c)
(d)
268
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
34. Earnings per share
[Item No. XII, Page 211]
The following table reflects the profit and shares data used in the computation of basic and diluted earnings per share (EPS).
(a) Profit after tax
Less: Distribution on hybrid perpetual securities (net of tax)
Profit attributable to ordinary shareholders- for basic and diluted EPS
(b) Weighted average number of Ordinary Shares for basic EPS
Add: Adjustment for shares held in abeyance
Weighted average number of Ordinary Shares and potential Ordinary Shares for diluted EPS
(c) Nominal value of Ordinary Share (`)
(d) Basic earnings per Ordinary Share (`)
(e) Diluted earnings per Ordinary Share (`)
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
10,533.19
173.13
10,360.06
Nos.
1,14,59,26,020
1,37,496
1,14,60,63,516
10.00
4,169.55
173.43
3,996.12
Nos.
1,03,61,99,628
1,55,646
1,03,63,55,274
10.00
90.41
90.40
38.57
38.56
(i)
As at March 31, 2019, 5,81,95,359 options (March 31, 2018: 28,69,886) in respect of partly paid shares were excluded from weighted
average number of Ordinary Shares for the computation of diluted earnings per share as these were anti-dilutive.
35. Employee benefits
A. Defined contribution plans
The Company participates in a number of defined contribution plans
on behalf of relevant personnel. Any expense recognised in relation
to these schemes represents the value of contributions payable
during the period by the Company at rates specified by the rules
of those plans. The only amounts included in the balance sheet are
those relating to the prior months contributions that were not due to
be paid until after the end of the reporting period.
The major defined contribution plans operated by
Company are as below:
the
(a) Provident fund and pension
The Company provides provident fund benefits for eligible
employees as per applicable regulations wherein both
employees and the Company make monthly contributions
at a specified percentage of the eligible employee’s salary.
Contributions under such schemes are made either to a
provident fund set up as an irrevocable trust by the Company to
manage the investments and distribute the amounts entitled to
employees or to state managed funds.
Benefits provided under plans wherein contributions are made
to state managed funds and the Company does not have a future
obligation to make good shortfall if any, is treated as a defined
contribution plan.
(b) Superannuation fund
The Company has a superannuation plan for the benefit of its
employees. Employees who are members of the superannuation
plan are entitled to benefits depending on the years of service
and salary drawn.
Separate irrevocable trusts are maintained for employees
covered and entitled to benefits. The Company contributes up to
15% of the eligible employees’ salary or `1,50,000, whichever is
lower, to the trust every year. Such contributions are recognised
as an expense as and when incurred. The Company does not
have any further obligation beyond this contribution.
The contributions recognised as an expense in the statement of
profit and loss during the year on account of the above defined
contribution plans amounted to `191.18 crore (2017-18:
`145.40 crore).
269
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
35. Employee benefits (Contd.)
(c) Post-retirement medical benefits
B. Defined benefit plans
The defined benefit plans operated by the Company are
as below:
(a) Provident fund and pension
fund benefits provided under plans wherein
Provident
contributions are made to an irrevocable trust set up by the
Company to manage the investments and distribute the
amounts entitled to employees are treated as a defined benefit
plan as the Company is obligated to provide the members a rate
of return which should, at the minimum, meet the interest rate
declared by Government administered provident fund. A part
of the Company’s contribution is transferred to Government
administered pension fund. The contributions made by the
Company and the shortfall of interest, if any, are recognised as
an expense in profit and loss under employee benefits expense.
In accordance with an actuarial valuation of provident fund
liabilities based on guidance issued by Actuarial Society of
India and based on the assumptions as mentioned below,
there is no deficiency in the interest cost as the present
value of the expected future earnings of the fund is greater
than the expected amount to be credited to the individual
members based on the expected guaranteed rate of interest of
Government administered provident fund.
Key assumptions used for actuarial valuation are as below:
Under this unfunded scheme, employees of the Company
receive medical benefits subject to certain limits on amounts
of benefits, periods after retirement and types of benefits,
depending on their grade and location at the time of retirement.
Employees separated from the Company under an early
separation scheme, on medical grounds or due to permanent
disablement are also covered under the scheme. The Company
accounts for the liability for post-retirement medical scheme
based on an year-end actuarial valuation.
(d) Other defined benefits
lumpsum benefits, pension payable
Other benefits provided under unfunded schemes include
post-retirement
to
directors of the Company on their retirement, farewell gifts and
reimbursement of packing and transportation charges to the
employees based on their last drawn salary.
The defined benefit plans expose the Company to a number of
actuarial risks as below:
(i)
Investment risk: The present value of the defined benefit
plan liability is calculated using a discount rate determined
by reference to government bond yields. If the return on
plan asset is below this rate, it will create a plan deficit.
(ii)
Interest risk: A decrease in the bond interest rate will
increase the plan liability. However, this will be partially
offset by an increase in the value of plan’s debt investments.
(iii) Salary
risk: The present value of
is
liability
benefit plan
future
the
to
such, an
increase
will increase the plan’s liability.
the defined
reference
calculated by
salaries of plan participants. As
in salary of the plan participants
(iv) Longevity risk: The present value of the defined benefit
plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after
their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.
As at
March 31, 2019
As at
March 31, 2018
7.50%
8.65%
8.60%
7.50%
8.55%
8.75%
Discount rate
Guaranteed rate of return
Expected rate of return on
investment
(b) Retiring gratuity
The Company has an obligation towards gratuity, a defined
benefit retirement plan covering eligible employees. The plan
provides for a lump-sum payment to vested employees at
retirement, death while in employment or on termination of
employment of an amount equivalent to 15 to 30 days salary
payable for each completed year of service. Vesting occurs
upon completion of five years of service. The Company makes
annual contributions to gratuity funds established as trusts or
insurance companies. The Company accounts for the liability
for gratuity benefits payable in the future based on an year-end
actuarial valuation.
270
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
35. Employee benefits (Contd.)
C.
Details of defined benefit obligations and plan assets:
(a) Retiring gratuity:
(i) The following table sets out the amounts recognised in the financial statements in respect of retiring gratuity plan:
Change in defined benefit obligations:
Obligation at the beginning of the year
Current service cost
Interest cost
Remeasurement (gain)/loss
Adjustment for arrear wage settlement
Benefits paid
Obligation at the end of the year
Change in plan assets:
Fair value of plan assets at the beginning of the year
Interest income
Remeasurement gain/(loss) excluding amount included within employee benefits expense
Employers' contribution
Benefits paid
Fair value of plan assets at the end of the year
Amounts recognised in the balance sheet consist of:
Fair value of plan assets
Present value of obligations
Recognised as:
Retirement benefit obligations - Non-current
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,767.69
124.76
186.50
(3.93)
-
(235.36)
2,839.66
2,779.95
129.90
185.47
(154.45)
87.55
(260.73)
2,767.69
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,706.72
196.53
28.94
62.63
(235.37)
2,759.45
2,562.92
177.82
11.33
215.38
(260.73)
2,706.72
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,759.45
(2,839.66)
(80.21)
2,706.72
(2,767.69)
(60.97)
(80.21)
(60.97)
271
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 35. Employee benefits (Contd.)
Expense/(gain) recognised in the statement of profit and loss consists of:
Employee benefits expense:
Current service cost
Net interest expense
Other comprehensive income:
Return on plan assets excluding amount included in employee benefits expense
Actuarial (gain)/loss arising from changes in demographic assumption
Actuarial (gain)/loss arising from changes in financial assumption
Actuarial (gain)/loss arising from changes in experience adjustments
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
124.76
(10.03)
114.73
(28.94)
-
-
(3.93)
(32.87)
129.90
7.65
137.55
(11.33)
(35.02)
(97.18)
(22.25)
(165.78)
Expense/(gain) recognised in the statement of profit and loss
81.86
(28.23)
(ii)
Fair value of plan assets by category of investment is as below:
Assets category (%)
Equity instruments (quoted)
Debt instruments (quoted)
Insurance products (unquoted)
As at
March 31, 2019
As at
March 31, 2018
(%)
0.05
18.93
81.02
100.00
-
21.26
78.74
100.00
The Company’s investment policy is driven by considerations of maximising returns while ensuring credit quality of debt instruments. The asset
allocation for plan assets is determined based on prescribed investment criteria and is also subject to other exposure limitations. The Company
evaluates the risks, transaction costs and liquidity for potential investments. To measure plan assets performance, the Company compares
actual returns for each asset category with published benchmarks.
(iii) Key assumptions used in the measurement of retiring gratuity is as below:
Discount rate
Rate of escalation in salary
(iv) Weighted average duration of the retiring gratuity obligation is 9 years (March 31, 2018: 9 years).
(v) The Company expects to contribute `80.21 crore to the plan during the financial year 2019-20.
As at
March 31, 2019
As at
March 31, 2018
7.50%
7.50% to 10.00% 7.50% to 10.00%
7.50%
272
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 35. Employee benefits (Contd.)
(vi) The table below outlines the effect on retiring gratuity obligation in the event of a decrease/increase of 1% in the assumptions used.
As at March 31, 2019
Assumption
Discount rate
Rate of escalation in salary
As at March 31, 2018
Assumption
Discount rate
Rate of escalation in salary
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `178.90 crore, increase by `204.46 crore
Increase by `201.62 crore, decrease by `178.90 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `177.13 crore, increase by `202.04 crore
Increase by `199.27 crore, decrease by `177.13 crore
The above sensitivities may not be representative of the actual change as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
(b) Post-retirement medical benefits and other defined benefits:
(i)
The following table sets out the amounts recognised in the financial statements in respect of post-retirement medical benefits and other
defined benefit plans.
Year ended March 31, 2019
Year ended March 31, 2018
Medical
Others
Medical
Others
(` crore)
Change in defined benefit obligation:
Obligation at the beginning of the year
Current service cost
Interest cost
Remeasurement (gain)/loss
(a) Actuarial (gains)/losses arising from changes in
demographic assumptions
(b) Actuarial (gains)/losses arising from changes in financial
assumptions
1,204.70
17.46
87.96
-
-
72.56
108.99
5.16
-
-
(c) Actuarial (gains)/losses arising from changes in experience
24.74
2.18
adjustments
Benefits paid
Past service cost
Obligation at the end of the year
(63.85)
-
1,271.01
(7.64)
-
181.25
1,221.18
21.41
83.36
(18.29)
(53.19)
10.62
(60.39)
-
1,204.70
102.58
7.06
6.94
(2.09)
(3.79)
(5.11)
(6.95)
(26.08)
72.56
273
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 35. Employee benefits (Contd.)
Amounts recognised in the balance sheet consist of:
Present value of obligations
Recognised as:
Retirement benefit obligations - Current
Retirement benefit obligations - Non-current
Expense/(gain) recognised in the statement of profit and loss consists of:
Employee benefits expense:
Current service cost
Past service cost
Net interest expense
Other comprehensive income:
Actuarial (gains)/losses arising from changes in demographic assumptions
Actuarial (gains)/losses arising from changes in financial assumption
Actuarial (gains)/losses arising from changes in experience adjustments
As at March 31, 2019
As at March 31, 2018
(` crore)
Medical
(1,271.01)
Others
(181.25)
Medical
(1,204.70)
(88.89)
(1,182.12)
(13.23)
(168.02)
(85.38)
(1,119.32)
Others
(72.56)
(5.12)
(67.44)
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
Medical
Others
Medical
Others
17.46
-
87.96
105.42
108.99
-
5.16
114.15
21.41
-
83.36
104.77
-
-
24.74
24.74
-
-
2.18
2.18
(18.29)
(53.19)
10.62
(60.86)
7.06
(26.08)
6.94
(12.08)
(2.09)
(3.79)
(5.11)
(10.99)
Expense recognised in the statement of profit and loss
130.16
116.33
43.91
(23.07)
(ii) Key assumptions used in the measurement of post-retirement medical benefits and other defined benefit plans is as below:
As at March 31, 2019
As at March 31, 2018
Discount rate
Rate of escalation in salary
Inflation rate
Medical
7.50%
Others
7.50%
N.A 10.00% - 15.00%
4.00%
8.00%
Medical
7.50%
Others
7.50%
N.A 10.00% - 15.00%
4.00%
8.00%
(iii)
Weighted average duration of post-retirement medical benefit obligation is 8 years (March 31, 2018: 8 years). Weighted average duration
of other defined benefit obligation ranges from 3.6 to 12 years (March 31, 2018: 8 to 10 years)
274
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 35. Employee benefits (Contd.)
(iv)
The table below outlines the effect on post-retirement medical benefit obligation in the event of a decrease/increase of 1% in the
assumptions used:
As at March 31, 2019
Assumption
Discount rate
Medical cost inflation rate
As at March 31, 2018
Assumption
Discount rate
Medical cost inflation rate
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `160.15 crore, increase by `203.36 crore
Increase by `189.38 crore, decrease by `152.52 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `151.79 crore, increase by `191.55 crore
Increase by `179.50 crore, decrease by `144.56 crore
(v)
The table below outlines the effect on other defined benefit obligations in the event of a decrease/increase of 1 % in the assumptions used.
As at March 31, 2019
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
As at March 31, 2018
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `10.83 crore, increase by `12.47 crore
Increase by `2.37 crore, decrease by `2.12 crore
Increase by `5.03 crore, decrease by `4.49 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `6.75 crore, increase by `8.15 crore
Increase by `2.05 crore, decrease by `1.82 crore
Increase by `4.66 crore, decrease by `4.15 crore
The above sensitivities may not be representative of the actual change as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
275
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 36. Contingencies and commitments
A. Contingencies
In the ordinary course of business, the Company faces claims
and assertions by various parties. The Company assesses such
claims and assertions and monitors the legal environment on
an on-going basis with the assistance of external legal counsel,
wherever necessary. The Company records a liability for any
claims where a potential loss is probable and capable of being
estimated and discloses such matters in its financial statements,
if material. For potential losses that are considered possible, but
not probable, the Company provides disclosure in the financial
statements but does not record a liability in its accounts unless
the loss becomes probable.
The following is a description of claims and assertions where
a potential loss is possible, but not probable. The Company
believes that none of the contingencies described below would
have a material adverse effect on the Company’s financial
condition, results of operations or cash flows.
It is not practicable for the Company to estimate the timings of
the cash outflows, if any, pending resolution of the respective
proceedings. The Company does not expect any reimbursements
in respect of the same.
(a)
Litigations
The Company is involved in legal proceedings, both as plaintiff
and as defendant. There are claims which the Company
does not believe to be of a material nature, other than those
described below.
Income tax
The Company has ongoing disputes with income tax authorities
relating to tax treatment of certain
items. These mainly
include disallowance of expenses, tax treatment of certain
expenses claimed by the Company as deduction and the
computation of or eligibility of the Company’s use of certain tax
incentives or allowances.
Most of these disputes and/or disallowances, being repetitive
in nature, have been raised by the income tax authorities
consistently in most of the years.
(b)
As at March 31, 2019, there are matters and/or disputes pending
in appeals amounting to `3,160.64 crore (March 31, 2018:
`1,443.29 crore).
The details of demands for more than `100 crore is as below:
(a)
Interest expenditure on loans taken by the Company
for acquisition of a subsidiary has been disallowed in
assessments with tax demand raised for `1,791.29 crore
(inclusive of interest) (March 31, 2018: `1,250.16 crore).
(b)
Interest expenditure on “Hybrid perpetual securities” has
been disallowed in assessments with tax demand raised for
`459.13 crore (inclusive of interest) (March 31, 2018: Nil)
In respect of above demands, the Company has deposited an
amount of `1,065.00 crore (March 31, 2018: `665.00 crore) as a
precondition for obtaining stay. The Company expects to sustain
its position on ultimate resolution of the said appeals.
Customs, excise duty and service tax
As at March 31, 2019, there were pending litigations for
various matters relating to customs, excise duty and service
taxes involving demands of `682.53 crore (March 31, 2018:
`669.48 crore).
Sales tax/VAT
The total sales tax demands that are being contested by
the Company amounted to `717.02 crore (March 31, 2018:
`567.85 crore).
The details of demands for more than `100 crore is as below:
The Company stock transfers
its goods manufactured at
Jamshedpur works plant to its various depots/branches located
outside the state of Jharkhand across the country without
payment of Central Sales Tax as per the provisions of the Act
and submits F-Form in lieu of the stock-transfers made during
the period of assessment. These goods are then sold to various
customers outside the states from depots/branches and the
value of these sales are disclosed in the periodical returns
filed as per the Jharkhand Vat Act 2005. The Commercial Tax
Department has raised demand of Central Sales tax by levying
tax on the differences between value of sales outside the states
and value of F-Form submitted for stock transfers. The amount
involved for various assessment years beginning 2011-12
to 2015-16 is amounting to `127.00 crore (March 31, 2018:
`125.00 crore).
The Commercial Tax Department of Jharkhand has rejected
certain Input tax credit claimed by the Company on goods
purchased from the suppliers within the State of Jharkhand.
The Department has alleged that the goods have not been
used in accordance with the provisions of Jharkhand VAT Act,
2005. The potential exposure on account of disputed tax and
interest for the period beginning 2012-2013 to 2015-2016 as on
March 31, 2019 is `104.00 crore (March 31,2018: `93.00 crore).
276
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
36. Contingencies and commitments (Contd.)
(a)
(b)
Other taxes, dues and claims
Other amounts for which the Company may contingently
be liable aggregate to `11,639.19 crore (March 31, 2018:
`9,925.20 crore).
The details of demands for more than `100 crore are as below:
Claim by a party arising out of conversion arrangement `195.79
crore (March 31, 2018: `195.79 crore). The Company has not
acknowledged this claim and has instead filed a claim of `141.23
crore (March 31, 2018: `141.23 crore) on the party. The matter is
pending before the Calcutta High Court.
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 Orissa challenging the validity of the Act.
Orissa High Court held in December 2005 that the State does not
have authority to levy tax on minerals. The State of Odisha filed
an appeal in the Supreme Court against the order of Orissa High
Court and the case is pending in Supreme Court. The potential
liability, as at March 31, 2019 is `7,573.53 crore (March 31, 2018:
`6,521.05 crore).
(c)
The Company pays royalty on iron ore on the basis of quantity
removed from the leased area at the rates based on notification
issued by the Ministry of Mines, Government of India and
the price published by Indian Bureau of Mines (IBM) on
a monthly basis.
Demand of `411.08 crore has been raised by Deputy Director of
Mines, Joda, claiming royalty at sized ore rates on despatches
of ore fines. The Company has filed a revision petition on
November 14, 2013 before the Mines Tribunal, Government of
India, Ministry of Mines, New Delhi, challenging the legality and
validity of the demand raised and to grant refund of royalty paid
in excess by the Company. Mines Tribunal has granted stay on
the total demand with directive to Government of Odisha not
to take any coercive action for realisation of this demanded
amount. Likely demand of royalty on fines at sized ore rates
as on March 31, 2019 is `1,630.16 crore (March 31, 2018:
`1,036.53 crore).
(d)
Demand notices were originally issued by the Deputy Director
of Mines, Odisha amounting to `3,827.29 crore for excess
production over the quantity permitted under the mining
plan, environment clearance or consent to operate, pertaining
to 2000-01 to 2009-10. The demand notices have been raised
under Section 21(5) of the Mines and Minerals (Development
and Regulations) Act (MMDR). The Company filed revision
petitions before the Mines Tribunal against all such demand
notices. Initially, a stay of demands was granted, later by order
dated October 12, 2017, the issue has been remanded to the
state for reconsideration of the demand in the light of Supreme
Court judgement passed on August 2, 2017.
The Hon’ble Supreme Court pronounced its judgement in the
Common Cause case on August 2, 2017 wherein it directed that
compensation equivalent to the price of mineral extracted in
excess of environment clearance or without forest clearance
from the forest land be paid.
In pursuance to the Judgement of Hon’ble Supreme Court,
demand/show cause notices amounting to `3,873.35 crore have
been issued during 2017-18 by the Deputy Director of Mines,
Odisha and the District Mining Office, Jharkhand.
In respect of the above demands:
• as directed by the Hon’ble Supreme Court, the Company
has provided and paid for iron ore and manganese ore an
amount of `614.41 crore during 2017-18 for production in
excess of environment clearance to the Deputy Director
of Mines, Odisha.
• the Company has provided and paid under protest an
amount of `56.97 crore during 2017-18 for production in
excess of environment clearance to the District Mining
Office, Jharkhand.
• the Company has challenged the demands amounting to
`132.91 crore during 2017-18 for production in excess of
lower of mining plan and consent to operate limits raised
by the Deputy Director of Mines, Odisha before the Mines
Tribunal and obtained a stay on the matter. Mines Tribunal,
Delhi vide order dated November 26, 2018 disposed of all
the revision applications with a direction to remand it to
the State Government to hear all such cases afresh and pass
detailed order. The demand amount of `132.91 crore is
considered contingent.
• the Company has made a comprehensive submission before
the Deputy Director of Mines, Odisha against show cause
notices amounting to `694.02 crore received during 2017-18
for production in violation of mining plan, Environment
Protection Act, 1986 and Water (Prevention and Control of
Pollution) Act, 1981. A demand amounting to `234.74 crore
has been received in April 2018 from the Deputy Director of
Mines, Odisha for production in excess of the Environmental
Clearance. The Company has challenged the demand
and obtained a stay on the matter from the Revisionary
277
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
36. Contingencies and commitments (Contd.)
Authority, Mines Tribunal, New Delhi. The demand of
`234.74 crore has been provided and `694.02 crore is
considered contingent.
• The Company based on its internal assessment has provided
an amount of `1,412.89 crore against demand notices
amounting to `2,140.30 crore received from the District
Mining Office, Jharkhand during 2017-18 for production in
excess of environment clearance. The balance amount of
`727.41 crore is considered contingent. The Company has
however been granted a stay by the Revisional Authority,
India against such
Ministry of Coal, Government of
demand notices.
(e)
An agreement was executed between the Government
of Odisha (GoO) and the Company in December, 1992 for
drawal of water from Kundra Nalla for industrial consumption.
In December 1993, the Tahsildar, Barbil issued a show-cause
notice alleging that the Company has lifted more quantity of
water than the sanctioned limit under the agreement.
minimal stake required to be able to provide a corporate
guarantee towards long-term debt)
(iv)
ICICI Bank Limited to directly or indirectly continue to
hold atleast 51 % shareholding in Jamshedpur Continuous
Annealing & Processing Company Private Limited.
(c)
(d)
(e)
The Company and BlueScope Steel Limited have given
undertaking to State Bank of India not to reduce collective
shareholding in Tata BlueScope Steel Private Limited (TBSPL)
(formerly Tata BlueScope Steel Limited), below 51% without
prior consent of the lender. Further, the Company has given
an undertaking to State Bank of India to intimate them before
diluting its shareholding in TBSPL below 50%.
The Company, as a promoter, has pledged 4,41,55,800 (March 31,
2018: 4,41,55,800) equity shares of Industrial Energy Limited
with Infrastructure Development Finance Corporation Limited.
The Company has agreed, if requested by Tata Steel UK Holdings
Limited (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.
While the proceedings in this regard were in progress, the
Company had applied for allocation of fresh limits.
(f )
The Company has given guarantees aggregating `12,096.24
crore (2018: `11,478.00 crore) details of which are as below:
Over the years, there has also been a steep increase in the water
charges against which the Company filed writ petitions before
the Hon’ble High Court of Odisha. In this regard, the Company
has received demands of `118.70 crore for the period beginning
January 1996 to December 2018. The potential exposure as on
March 31, 2019 is `125.98 crore (March 31, 2018: `99.34 crore)
is considered contingent.
B. Commitments
(a)
The Company has entered into various contracts with suppliers
and contractors for the acquisition of plant and machinery,
equipment and various civil contracts of capital nature
amounting to `7,265.82 crore (March 31, 2018: `4,275.79 crore).
Other commitments as at March 31, 2019 amount to `0.01 crore
(March 31, 2018: `0.01 crore).
(b)
The Company has given undertakings to:
(i)
(ii)
(iii)
IDBI not to dispose of
Incandescent India Ltd.
its
investment
in Wellman
IDBI and ICICI Bank Ltd. (formerly ICICI) not to dispose of its
investment in Standard Chrome Ltd.
Mizuho Corporate Bank Limited and Japan Bank
for International Co-operation, not to dispose of its
investments in Tata NYK Shipping Pte Limited (to retain
278
(i)
(ii)
(iii)
(iv)
in favour of Commissioner of Customs `1.07 crore
(March 31, 2018: `1.07 crore) given on behalf of Timken
India Limited in respect of goods imported.
in favour of Mizuho Corporate Bank Ltd., Japan for `9.60
crore (March 31, 2018: `27.33 crore) against the loan
granted to a joint venture Tata NYK Shipping Pte. Limited.
in favour of The President of India for `177.18 crore
(March 31, 2018: `177.18 crore) against performance
of export obligation under the various bonds executed
by a joint venture Jamshedpur Continuous Annealing &
Processing Company Private Limited.
in favour of the note holders against due and punctual
repayment of the 100% amounts outstanding as on
March 31, 2019 towards issued Guaranteed Notes by a
subsidiary, ABJA Investment Co. Pte Ltd. for `10,376.63
crore (March 31, 2018: `9,777.37 crore) and `1,531.61 crore
(March 31, 2018: `1,494.90 crore). The guarantee is capped
at an amount equal to 125% of the outstanding principal
amount of the Notes as detailed in “Terms and Conditions”
of the Offering Memorandum.
(v)
In favour of President of India for `0.15 crore (March 31,
2018: `0.15 crore) against advance license.
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
37. Other significant litigations
(a)
Odisha Legislative Assembly issued an amendment to Indian
Stamp Act, 1889, on May 9, 2013 and inserted a new provision
(Section 3A) in respect of stamp duty payable on grant/renewal
of mining leases. As per the amended provision, stamp duty is
levied equal to 15% of the average royalty that would accrue
out of the highest annual extraction of minerals under the
approved mining plan multiplied by the period of such mining
lease. The Company had filed a writ petition challenging the
constitutionality of the Act on July 5, 2013. The Hon’ble High
Court, Cuttack passed an order on July 9, 2013 granting interim
stay on the operation of the Amendment Act, 2013. Because of
the stay, as on date, the Act is not enforceable and any demand
received by the Company is not liable to be proceeded with.
Meanwhile, the Company received demand notices for the
various mines at Odisha totalling to `5,579.00 crore (March 31,
2018: `5,579.00 crore). The Company has concluded that it is
remote that the claim will sustain on ultimate resolution of the
legal case by the court.
In April 2015, the Company has received an intimation from
Government of Odisha, granting extension of validity period
for leases under the MMDR Amendment Act, 2015 up to
March 31, 2030 in respect of eight mines and up to March 31,
2020 for two mines subject to execution of supplementary lease
deed. Liability has been provided in the books of accounts as
on March 31, 2019 as per the existing provisions of the Stamp
Act 1899 and the Company had paid the stamp duty and
registration charges totalling `413.72 crore for supplementary
deed execution in respect of eight mines out of the above mines.
(b)
Noamundi Iron Ore Mine of TSL was due for its third renewal
with effect from January 1, 2012. The application for renewal
was submitted by the Company within the stipulated time, but it
remained pending consideration with the State and the mining
operations were continued in terms of the prevailing law.
By a judgement of April 2014 in the case of Goa mines, the
Supreme Court took a view that second and subsequent renewal
of mining lease can be effected once the State considers the
application and decides to renew the mining lease by issuing
an express order. State of Jharkhand issued renewal order to
the Company on December 31, 2014. The State, however, took
a view on interpretation of Goa judgement that the mining
carried out after expiry of the period of second renewal was
‘illegal’ and hence, issued a demand notice of `3,568.31 crore
being the price of iron ore extracted. The said demand has been
challenged by the Company before the Jharkhand High Court.
The mining operations were suspended from August 1, 2014.
Upon issuance of an express order, the Company paid `152.00
crore under protest, so that mining can be resumed.
The Mines and Minerals Development and Regulation (MMDR)
Amendment Ordinance 2015 promulgated on January 12, 2015
provides for extension of such mining leases whose applications
for renewal have remained pending with the State(s). Based on
the new Ordinance, Jharkhand Government revised the Express
Order on February 12, 2015 for extending the period of lease up
to March 31, 2030 with the following terms and conditions:
• value of iron ore produced by alleged unlawful mining during
the period January 1, 2012 to April 20, 2014 for `2,994.49 crore
to be decided on the basis of disposal of our writ petition
before Hon’ble High Court of Jharkhand.
• value of
iron ore produced
from April 21, 2014 to
July 17, 2014 amounting to `421.83 crore to be paid in
maximum 3 instalments.
• value of iron ore produced from July 18, 2014 to August 31,
2014 i.e. `152.00 crore to be paid immediately.
District Mining Officer Chaibasa on March 16, 2015 issued a demand
notice for payment of `421.83 crore, in three monthly instalments.
The Company on March 20, 2015 replied that since the lease has been
extended by application of law till March 31, 2030, the above demand
is not tenable. The Company, however, paid `50.00 crore under
protest on July 27, 2015, because the State had stopped issuance of
transit permits.
The Company filed another writ petition before the Hon’ble High
Court of Jharkhand which was heard on September 9, 2015.
An interim order was given by the Hon’ble High Court of Jharkhand
on September 2015 wherein the Court has directed the Company
to pay the amount of `371.83 crore in 3 equal instalments, first
instalment by October 15, 2015, second instalment by November 15,
2015 and third instalment by December 15, 2015.
In view of the interim order of the Hon’ble High Court of Jharkhand
`124.00 crore was paid on September 28, 2015, `124.00 crore
on November 12, 2015 and `123.83 crore on December 14,
2015 under protest.
The case is pending at Hon’ble High court for disposal. The State
issued similar terms and conditions to other mining lessees in
the State rendering the mining as illegal. Based on the Company’s
assessment of the Goa mines judgement read with the Ordinance
issued in the year 2015, the Company believes that it is remote that
the demand of the State would sustain.
279
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
38. Capital management
The Company’s capital management is intended to create value for shareholders by facilitating the achievement of long-term and short-term
goals of the Company.
The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short-term strategic
investment and expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank
borrowings and issue of non-convertible debt securities.
The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio
of the Company.
Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current and earmarked
balances) and current investments.
The table below summarises the capital, net debt and net debt to equity ratio of the Company.
Equity share capital
Hybrid perpetual securities
Other equity
Total equity (A)
Non-current borrowings
Current borrowings
Current maturities of long-term borrowings and finance lease obligations
Gross debt (B)
Total capital (A+B)
Gross debt as above
Less: Current investments
Less: Cash and cash equivalents
Less: Other balances with banks (including non-current earmarked balances)
Net debt (C)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,146.12
2,275.00
69,308.59
72,729.71
26,651.19
8.09
3,042.19
29,701.47
1,02,431.18
29,701.47
477.47
544.85
208.22
28,470.93
1,146.12
2,275.00
60,368.72
63,789.84
24,568.95
669.88
2,886.97
28,125.80
91,915.64
28,125.80
14,640.37
4,588.89
127.81
8,768.73
Net debt to equity ratio(i)
0.42
0.15
(i) Net debt to equity ratio as at March 31, 2019 and March 31, 2018 has been computed based on average of opening and closing equity.
280
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 39. Disclosures on financial instruments
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance
sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, basis of measurement and the basis on which income and
expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2(n), page 221
to the financial statements.
(a) Financial assets and liabilities
The following tables present the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2019 and
March 31, 2018.
As at March 31, 2019
Amortised
cost
Fair value
through other
comprehensive
income
Derivative
instruments
in hedging
relationship
Derivative
instruments
not in hedging
relationship
Fair value
through profit
and loss
Total
carrying
value
(` crore)
Total fair
value
Financial assets:
Cash and bank balances
Trade receivables
Investments
Derivatives
Loans
Other financial assets
Financial liabilities:
Trade payables
Borrowings
Derivatives
Other financial liabilities
753.07
1,363.04
-
-
287.08
1,216.45
3,619.64
10,969.56
29,701.47
-
3,955.23
44,626.26
-
-
751.95
-
-
-
751.95
-
-
-
-
-
-
-
-
1.27
-
-
1.27
-
-
3.83
-
3.83
-
-
-
22.74
-
-
22.74
-
-
195.56
-
195.56
-
-
34,217.01
-
-
-
753.07
753.07
1,363.04
1,363.04
34,968.96
34,968.96
24.01
24.01
287.08
287.08
1,216.45
1,216.45
34,217.01 38,612.61 38,612.61
10,969.56
29,701.47
199.39
3,955.23
10,969.56
-
29,543.97
-
199.39
-
-
3,955.23
- 44,825.65 44,668.15
281
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 39. Disclosures on financial instruments (Contd.)
As at March 31, 2018
Financial assets:
Cash and bank balances
Trade receivables
Investments
Derivatives
Loans
Other financial assets
Financial liabilities:
Trade payables
Borrowings
Derivatives
Other financial liabilities
Amortised
cost
4,716.70
1,875.63
-
-
287.63
492.76
7,372.72
11,242.75
28,125.80
-
3,674.21
43,042.76
Fair value
through other
comprehensive
income
Derivative
instruments
in hedging
relationship
Derivative
instruments
not in hedging
relationship
Fair value
through profit
and loss
Total
carrying
value
(` crore)
Total fair
value
-
-
807.55
-
-
-
807.55
-
-
-
-
-
-
-
-
7.90
-
-
7.90
-
-
-
-
-
-
-
-
34.30
-
-
34.30
-
-
86.49
-
86.49
-
-
19,803.14
-
-
-
19,803.14
4,716.70
1,875.63
20,610.69
42.20
287.63
492.76
4,716.70
1,875.63
20,610.69
42.20
287.63
492.76
28,025.61 28,025.61
-
-
-
-
-
11,242.75
28,125.80
86.49
3,674.21
11,242.75
28,258.84
86.49
3,674.21
43,129.25 43,262.29
(i)
Investments in mutual funds and derivative instruments (other than those designated in a hedging relationship) are mandatorily classified
as fair value through profit and loss.
(b)
Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped
into Level 1 to Level 3, as described below:
Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that are measured by reference to quoted
prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares
and mutual funds.
Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices). This level of hierarchy includes the Company’s over-the-counter (OTC) derivative contracts.
Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities
measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in
part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data. This level includes investment in unquoted equity shares and
preference shares.
282
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
39. Disclosures on financial instruments (Contd.)
As at March 31, 2019
Financial assets:
Investment in mutual funds
Investment in equity shares
Investment in debentures
Investment in preference shares
Derivative financial assets
Financial liabilities:
Derivative financial liabilities
Financial assets:
Investment in mutual funds
Investment in equity shares
Investment in debentures
Investment in preference shares
Derivative financial assets
Financial liabilities:
Derivative financial liabilities
(` crore)
Level 3
Total
Level 1
477.47
448.61
-
-
-
926.08
Level 2
-
-
49.74
-
24.01
73.75
-
303.34
-
33,689.80
-
33,993.14
-
-
199.39
199.39
-
-
As at March 31, 2018
477.47
751.95
49.74
33,689.80
24.01
34,992.97
199.39
199.39
(` crore)
Level 1
14,640.37
497.21
-
-
-
15,137.58
-
-
Level 2
-
-
49.74
-
42.20
91.94
86.49
86.49
Level 3
Total
-
310.34
-
5,113.03
-
5,423.37
14,640.37
807.55
49.74
5,113.03
42.20
20,652.89
-
-
86.49
86.49
(i) Current financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii)
Derivatives are fair valued using market observable rates and published prices together with forecasted cash flow information
where applicable.
(iii)
(iv)
(v)
Investments carried at fair value are generally based on market price quotations. Investments included in Level 3 of the fair value hierarchy
have been valued using the cost approach to arrive at their fair value. Cost of unquoted equity instruments has been considered as an
appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of
fair value within that range. Fair value of investment in preference shares is estimated by discounting the expected future cash flows using
a discount rate equivalent to the expected rate of return for a similar instrument and maturity as on the reporting date.
Fair value of borrowings which have a quoted market price in an active market is based on its market price which is categorised as
Level 1. Fair value of borrowings which do not have an active market or are unquoted is estimated by discounting expected future cash
flows using a discount rate equivalent to the risk-free rate of return adjusted for credit spread considered by lenders for instruments of
similar maturities which is categorised as Level 2 in the fair value hierarchy.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in
any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily
indicative of the amounts that the Company could have realised or paid in sale transactions as of respective dates. As such, fair value of
financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
(vi) There have been no transfers between Level 1 and Level 2 for the years ended March 31, 2019 and March 31, 2018.
283
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
39. Disclosures on financial instruments (Contd.)
(vii) Reconciliation of Level 3 fair value measurement is as below:
Balance at the beginning of the year
Additions during the year
Sales/redemptions during the year
Reclassification within investments*
Fair value changes during the year
Balance at the end of the year
(` crore)
As at
March 31, 2019
As at
March 31, 2018
5,423.37
28,698.08
-
(17.00)
(111.31)
33,993.14
486.16
4,725.10
(100.00)
-
312.11
5,423.37
* represents investment held in Subarnarekha Port Private Limited which became a subsidiary during the year.
(c) Derivative financial instruments
Derivative instruments used by the Company include forward exchange contracts, interest rate swaps, currency swaps, options and interest
rate caps and collars. These financial instruments are utilised to hedge future transactions and cash flows and are subject to hedge accounting
under Ind AS 109 “Financial Instruments” wherever possible. The Company does not hold or issue derivative financial instruments for trading
purposes. All transactions in derivative financial instruments are undertaken to manage risks arising from underlying business activities.
The following table sets out the fair value of derivatives held by the Company as at the end of each reporting period:
(i)
(ii)
Foreign currency forwards, swaps and options
Interest rate swaps and collars
Classified as:
Non-current
Current
As at March 31, 2019
As at March 31, 2018
Assets
19.93
4.08
24.01
9.05
14.96
Liabilities
199.32
0.07
199.39
59.82
139.57
Assets
34.44
7.76
42.20
12.13
30.07
(` crore)
Liabilities
86.49
-
86.49
70.08
16.41
As at the end of the reporting period total notional amount of outstanding foreign currency contracts, interest rate swaps and collars that the
Company has committed to is as below:
(i) Foreign currency forwards, swaps and options
(ii) Interest rate swaps and collars
As at
March 31, 2019
1,148.92
150.00
1,298.92
(US$ million)
As at
March 31, 2018
1,322.86
150.00
1,472.86
284
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 39. Disclosures on financial instruments (Contd.)
(d) Transfer of financial assets
The Company transfers certain trade receivables under discounting arrangements with banks/ financial institutions. Some of such arrangements
do not qualify for de-recognition due to recourse arrangements being in place. Consequently, the proceeds received from transfer are recorded
as short-term borrowings from banks and financial institutions.
The carrying value of trade receivables not de-recognised along with the associated liabilities is as below:
As at March 31, 2019
As at March 31, 2018
Carrying value of
asset transferred
-
Carrying value of
associated liabilities
-
Carrying value of
asset transferred
547.56
Carrying value of
associated liabilities
547.56
(` crore)
Trade receivables
(e) Financial risk management
In the course of its business, the Company is exposed primarily
to fluctuations in foreign currency exchange rates, interest rates,
equity prices, liquidity and credit risk, which may adversely
impact the fair value of its financial instruments.
The Company has a risk management policy which not only
covers the foreign exchange risks but also other risks associated
with the financial assets and liabilities such as interest rate risks
and credit risks. The risk management policy is approved by the
Board of Directors. The risk management framework aims to:
(i)
create a stable business planning environment by reducing
the impact of currency and interest rate fluctuations on the
Company’s business plan.
(ii)
achieve greater predictability to earnings by determining
the financial value of the expected earnings in advance.
(i) Market risk:
Market risk is the risk of any loss in future earnings, in realisable
fair values or in future cash flows that may result from a
change in the price of a financial instrument. The value of a
financial instrument may change as a result of changes in
interest rates, foreign currency exchange rates, equity price
fluctuations, liquidity and other market changes. Future specific
market movements cannot be normally predicted with
reasonable accuracy.
(a) Market risk - Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have a
potential impact on the statement of profit and loss and equity,
where any transaction references more than one currency or
where assets/liabilities are denominated in a currency other
than the functional currency of the Company.
functional currency may
The Company, as per its risk management policy, uses foreign
exchange and other derivative instruments primarily to hedge
foreign exchange and interest rate exposure. Any weakening
of the
impact the Company’s
cost of imports and cost of borrowings and consequently
may increase the cost of financing the Company’s capital
expenditures. Such movements may also impact the fair value
of preference shares investments held by the Company in its
foreign subsidiaries.
A 10% appreciation/depreciation of foreign currencies with
respect to functional currency of the Company would result in
an increase/decrease in the Company’s net profit/equity before
considering tax impacts by approximately `1,352.48 crore for
the year ended March 31, 2019 (March 31, 2018: `514.89 crore)
and an increase/decrease in carrying value of property, plant
and equipment (before considering depreciation impact) by
approximately `31.87 crore as at March 31, 2019 (2017-18:
`148.81 crore).
The foreign exchange rate sensitivity is calculated by assuming
foreign exchange rates shift of
a simultaneous parallel
all the currencies by 10% against the functional currency
of the Company.
The sensitivity analysis has been based on the composition of
the Company’s financial assets and liabilities as at March 31, 2019
and March 31, 2018 excluding trade payables, trade receivables,
other derivative and non-derivative financial
instruments
(except investment in preference shares) not forming part of
debt and which do not present a material exposure. The period
end balances are not necessarily representative of the average
debt outstanding during the period.
285
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
39. Disclosures on financial instruments (Contd.)
(b) Market risk - Interest rate risk:
Interest rate risk is measured by using the cash flow sensitivity
for changes in variable interest rates. Any movement in the
reference rates could have an impact on the Company’s cash
flows as well as costs.
The Company is subject to variable interest rates on some of its
interest bearing liabilities. The Company’s interest rate exposure
is mainly related to debt obligations.
Based on the composition of debt as at March 31, 2019 and
March 31, 2018 a 100 basis points increase in interest rates
would increase the Company’s finance costs (before considering
interest eligible for capitalisation) and thereby consequently
reduce net profit/equity before considering tax impacts by
approximately `128.33 crore for the year ended March 31, 2019
(2017-18: `143.71 crore).
The risk estimates provided assume a parallel shift of 100 basis
points interest rate across all yield curves. This calculation also
assumes that the change occurs at the balance sheet date and has
been calculated based on risk exposures outstanding as at that
date. The period end balances are not necessarily representative
of the average debt outstanding during the period.
(c) Market risk - Equity price risk:
Equity price risk is related to change in market reference price of
investments in equity securities held by the Company.
The fair value of quoted investments held by the Company
exposes the Company to equity price risks. In general, these
investments are not held for trading purposes.
The fair value of quoted investments in equity, classified
as fair value through other comprehensive income as at
March 31, 2019 and March 31, 2018 was `448.61 crore and
`497.21 crore, respectively.
A 10% change in equity prices of such securities held as at
March 31, 2019 and March 31, 2018, would result in an impact
of `44.86 crore and `49.72 crore respectively on equity before
considering tax impact.
(ii) Credit risk:
Credit risk is the risk of financial loss arising from counter-party
failure to repay or service debt according to the contractual
terms or obligations. Credit risk encompasses both the direct
risk of default and the risk of deterioration of credit worthiness
as well as concentration risks.
286
The Company has a policy of dealing only with credit worthy
counter parties and obtaining sufficient collateral, where
appropriate as a means of mitigating the risk of financial
loss from defaults.
Financial instruments that are subject to credit risk and
concentration thereof principally consist of trade receivables,
loans receivables, investments in debt securities and mutual
funds, balances with banks, bank deposits, derivatives
and financial guarantees provided by
the Company.
None of the financial instruments of the Company result in
material concentration of credit risk except preference shares
investments, the Company made in its subsidiary companies.
The carrying value of financial assets represents the maximum
credit risk. The maximum exposure to credit risk was
`37,584.12 crore and `27,217.13 crore, as at March 31, 2019
and March 31, 2018 respectively, being the total carrying
value of trade receivables, balances with bank, bank deposits,
investments in debt securities, mutual funds, loans, derivative
assets and other financial assets.
The risk relating to trade receivables
note 13, page 248.
is presented
in
The Company’s exposure to customers is diversified and no
single customer contributes to more than 10% of outstanding
trade receivables as at March 31, 2019 and March 31, 2018.
In respect of financial guarantees provided by the Company
to banks/financial institutions, the maximum exposure which
the Company is exposed to is the maximum amount which the
Company would have to pay if the guarantee is called upon.
Based on the expectation at the end of the reporting period, the
Company considers that it is more likely than not that such an
amount will not be payable under the guarantees provided.
(iii) Liquidity risk:
Liquidity risk refers to the risk that the Company cannot meet its
financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are
available for use as per requirements.
The Company has obtained fund and non-fund based working
capital lines from various banks. Furthermore, the Company
has access to funds from debt markets through commercial
paper programs, non-convertible debentures and other debt
instruments. The Company invests its surplus funds in bank fixed
deposits and in mutual funds, which carry no or low market risk.
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
39. Disclosures on financial instruments (Contd.)
The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s derivative and
non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value. Floating rate
interest is estimated using the prevailing interest rate at the end of the reporting period. Cash flows in foreign currencies are translated using
the period end spot rates.
Non-derivative financial liabilities:
Borrowings including interest obligations
Trade payables
Other financial liabilities
As at March 31, 2019
(` crore)
Carrying
value
Contractual
cash flows
less than
one year
between one to five
years
More than
five years
30,270.83
10,969.56
3,385.87
44,626.26
48,006.81
10,969.56
3,385.88
62,362.25
5,388.10
10,969.56
3,260.81
19,618.47
18,284.95
-
15.47
18,300.42
24,333.76
-
109.60
24,443.36
Derivative financial liabilities
199.39
199.39
139.57
59.82
-
Non-derivative financial liabilities:
Borrowings including interest obligations
Trade payables
Other financial liabilities
As at March 31, 2018
(` crore)
Carrying
value
Contractual
cash flows
less than
one year
between one to
five years
More than
five years
28,681.81
11,242.75
3,118.20
43,042.76
42,886.90
11,242.75
3,118.21
57,247.86
5,574.30
11,242.75
3,098.43
19,915.48
17,766.50
-
5.00
17,771.50
19,546.10
-
14.78
19,560.88
Derivative financial liabilities
86.49
86.49
16.41
70.08
-
40. Segment reporting
The Company is primarily engaged in the business of manufacture and distribution of steel products and is operated out of India. In accordance
with Ind AS 108 “Operating Segments”, the Company has presented segment information on the basis of its consolidated financial statements
which forms part of this report.
287
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 41. Related party transactions
The Company’s related parties primarily consist of its subsidiaries, associates, joint ventures and Tata Sons Private Limited including its
subsidiaries and joint ventures. The Company routinely enters into transactions with these related parties in the ordinary course of business at
market rates and terms.
The following table summarises related party transactions and balances included in the financial statements of the Company for the year
ended as at March 31, 2019 and March 31, 2018:
Subsidiaries
Associates
Joint
ventures
Tata Sons Private
Limited, its
subsidiaries
and joint ventures
(` crore)
Total
11,805.15
10,961.18
268.35
291.74
133.63
109.55
153.37 12,360.50
11,549.55
187.08
8,958.58
6,793.81
1,867.90
1,531.07
478.74
372.60
1,576.03
23.63
-
-
1.18
1.17
39.38
30.31
15.33
31.36
53.34
10.55
-
-
13.71
22.32
2,500.24
1,978.07
138.36 11,610.89
8,969.53
175.33
39.66
9.80
909.62
1,251.58
237.69
55.61
3,054.87
2,848.06
5.82
5.87
7.81
-
-
-
-
-
3.67
3.51
(0.01)
-
16.61
3.08
-
-
135.94
95.85
4.13
4.62
-
-
-
-
34.95
37.55
(1.03)
5.35
2.50
3.57
-
-
1.13
1.31
621.63
475.63
-
-
1,587.97
28.25
19.23
19.23
19.23
19.23
361.45
295.61
362.63
296.78
10.88
10.46
0.02
-
88.88
81.83
14.31
36.71
100.00
100.00
172.45
117.20
1.97
3,782.76
1.97
3,782.76
Purchase of goods
Sale of goods
Services received
Services rendered
Interest income recognised
Interest expenses recognised
Dividend paid
Dividend received
Provision/(reversal) recognised for receivables
during the year
Management contracts
Sale of investments
288
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 41. Related party transactions (Contd.)
Subsidiaries
Associates
Joint
ventures
Tata Sons Private
Limited, its
subsidiaries
and joint ventures
(` crore)
Total
Finance provided during the year (net of repayments)
29,349.55
4,772.42
250.00
-
134.91
46.82
Outstanding loans and receivables
Provision for outstanding loans and receivables
Outstanding payables
Guarantees provided outstanding
Subscription to rights issue
1,489.08
1,210.66
651.00
668.78
4,764.18
5,787.08
11,908.24
11,272.27
-
-
10.06
32.36
0.03
0.03
16.54
27.74
-
-
-
-
57.09
202.61
7.46
5.49
213.13
233.95
186.78
204.51
- 29,734.46
4,819.24
-
9.22
13.60
1,565.45
1,459.23
0.02
-
658.51
674.30
132.86
119.22
5,126.71
6,167.99
- 12,095.02
11,476.78
-
-
-
-
3,420.56
-
3,420.56
Figures in italics represent comparative figures of previous year.
(i) The details of remuneration paid to key managerial personnel is provided in note 29, page 266.
During the year ended March 31, 2019, value of shares subscribed by key managerial personnel and their relatives under rights issue is Nil
(2017-18: `2,87,476.00)
The Company has paid dividend of `32,345.87 (2017-18: `27,420.00) to key managerial personnel and `3,895.10 (2017-18: `3,310.00) to
relatives of key managerial personnel during the year ended March 31, 2019.
(ii)
During the year ended March 31, 2019, the Company has contributed `281.57 crore (2017-18: `431.35 crore) to post-employment
benefit plans.
As at March 31, 2019, amount receivable from post-employment benefit fund is `755.95 crore (March 31, 2018: `296.38 crore) on account
of retirement benefit obligations paid by the Company directly.
(iii)
Details of investments made by the Company in preference shares of its subsidiaries, associates and joint ventures is disclosed in
note 7, page 235.
(iv) Commitment with respect to subsidiaries, associates and joint ventures is disclosed in note 36B, page 278.
(v) Transaction with joint ventures have been disclosed at full value and not at their proportionate share.
289
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
42. The Company is in the process of evaluating the impact of the recent Supreme Court Judgement in case of “Vivekananda Vidyamandir and
Others Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. CI/ 1(33)2019/Vivekananda
Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of certain
allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to provident fund
under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. In the assessment of the management which is supported
by legal opinion, the aforesaid matter is not likely to have a significant impact and accordingly no provision has been considered in the
financial statements.
43. The Board of Directors of the Company have considered and approved a merger of Bamnipal Steel Limited and Tata Steel BSL Limited
(formerly Bhushan Steel Limited) into the Company by way of a composite scheme of amalgamation and have recommended a merger
ratio of 1 equity share of `10/-each fully paid up of the Company for every 15 equity shares of `2/- each fully paid up held by the public
shareholders of Tata Steel BSL Limited. As part of the scheme, the equity shares held by Bamnipal Steel Limited and the preference shares
held by the Company in Tata Steel BSL Limited shall stand cancelled. The equity shares held by the Company in Bamnipal Steel Limited
shall also stand cancelled. The merger is subject to shareholders and other regulatory approvals.
44. Details of significant investments in subsidiaries, associates and joint ventures
Country of
incorporation
As at
March 31, 2019
As at
March 31, 2018
(% direct holding)
(a) Subsidiary companies
(1) Tata Metaliks Ltd.
(2) Tata Sponge Iron Limited
(3) Tayo Rolls Limited
(4) The Tinplate Company of India Ltd
(5) ABJA Investment Co. Pte Ltd.
(6) Adityapur Toll Bridge Company Limited
(7) Bamnipal Steel Limited
(8) Bhubaneshwar Power Private Limited
(9) Bistupur Steel Limited
(10) Creative Port Development Private Limited
(11) Dimna Steel Limited
(12) The Indian Steel & Wire Products Ltd
(13) Jamadoba Steel Limited
(14) Jamshedpur Football and Sporting Private Limited
(15) Jamshedpur Utilities & Services Company Limited
(16) Jugsalai Steel Limited
(17) Mohar Exports Services Pvt Ltd
(18) NatSteel Asia Pte. Ltd.
(19) Noamundi Steel Limited
(20) Rujuvalika Investments Limited
(21) Sakchi Steel Limited
(22) Straight Mile Steel Limited
(23) Subarnarekha Port Private Limited
290
India
India
India
India
Singapore
India
India
India
India
India
India
India
India
India
India
India
India
Singapore
India
India
India
India
India
55.06
54.50
54.91
74.96
100.00
88.50
100.00
93.58
100.00
51.00
100.00
95.01
100.00
100.00
100.00
100.00
33.23
100.00
100.00
100.00
100.00
100.00
7.07
50.09
54.50
54.91
74.96
100.00
88.50
100.00
93.58
100.00
-
100.00
95.01
100.00
100.00
100.00
100.00
33.23
100.00
100.00
100.00
100.00
100.00
-
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE 44. Details of significant investments in subsidiaries, associates and joint ventures (Contd.)
(24) Tata Korf Engineering Services Ltd
(25) The Tata Pigments Limited
(26) Tata Steel Foundation
(27) T Steel Holdings Pte. Ltd.
(28) Tata Steel (KZN) (Pty) Ltd.
(29) Tata Steel Odisha Limited
(30) Tata Steel Processing and Distribution Limited
(31) Tata Steel Special Economic Zone Limited
(32) T S Alloys Limited
(b) Associate companies
(1) TRF Limited.
(2) Kalinga Aquatic Ltd
(3) Malusha Travels Pvt Ltd
(4) Nicco Jubilee Park Limited
(5) Strategic Energy Technology Systems Private Limited
(6) TRL Krosaki Refractories Limited
Industrial Energy Limited
Jamipol Limited
Jamshedpur Continuous Annealing & Processing Company Private Limited
(c) Joint ventures
(1) Himalaya Steel Mill Services Private Limited
(2)
(3)
(4)
(5) Medica TS Hospital Private Limited
(6) mjunction services limited
(7) S & T Mining Company Private Limited
(8) Tata BlueScope Steel Private Limited (formerly Tata BlueScope Steel Limited)
(9) Tata NYK Shipping Pte Ltd.
(10) TM International Logistics Limited
(11) T M Mining Company Limited
Country of
incorporation
India
India
India
Singapore
South Africa
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Singapore
India
India
(% direct holding)
As at
March 31, 2019
As at
March 31, 2018
100.00
100.00
100.00
100.00
90.00
100.00
100.00
100.00
100.00
34.11
30.00
33.23
20.99
25.00
-
26.00
26.00
32.67
51.00
26.00
50.00
50.00
50.00
50.00
51.00
74.00
100.00
100.00
100.00
100.00
90.00
100.00
100.00
100.00
100.00
34.11
30.00
33.23
20.99
25.00
26.62
26.00
26.00
32.67
51.00
26.00
50.00
50.00
50.00
50.00
51.00
74.00
291
NOTESforming part of the financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 45. Dividend
The dividend declared by the Company is based on profits available for distribution as reported in the standalone financial statements of
the Company. On April 25, 2019, the Board of Directors of the Company have proposed a dividend of `13.00 per Ordinary Share of `10
each and `3.25 per partly paid Ordinary Share of `10 each (paid up `2.504 per share) in respect of the year ended March 31, 2019 subject
to the approval of shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of `1,795.87 crore
inclusive of dividend distribution tax of `306.21 crore.
46. Previous year figures have been recasted/restated wherever necessary.
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
292
NOTESforming part of the financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARSTANDALONE
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF TATA STEEL LIMITED
Report on the Audit of the Consolidated Financial
Statements
Opinion
1.
2.
We have audited the accompanying Consolidated Financial
Statements of Tata Steel Limited (hereinafter referred to as the
“Holding Company”) and its subsidiaries (Holding Company
and its subsidiaries together referred to as “the Group”), its
associates and jointly controlled entities (refer Note 1 to the
attached Consolidated Financial Statements), which comprise
the Consolidated Balance Sheet as at March 31, 2019, the
Consolidated Statement of Profit and Loss (including Other
Comprehensive
Income), the Consolidated Statement of
Changes in Equity and the Consolidated Statement of Cash
Flows for the year then ended, and Notes to the Consolidated
including a summary of significant
Financial Statements,
accounting policies and other explanatory information prepared
based on the relevant records (hereinafter referred to as “the
Consolidated Financial Statements”).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Consolidated
Financial Statements give the information required by the
Companies Act, 2013 (“the Act”) in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the consolidated state
of affairs of the Group, its associates and jointly controlled entities
as at March 31, 2019, its consolidated total comprehensive
income (comprising of profit and other comprehensive income),
its consolidated changes in equity and its consolidated cash
flows for the year then ended.
Basis for Opinion
3.
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those Standards are further described
in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent
of the Group, its associates and jointly controlled entities in
accordance with the ethical requirements that are relevant to
our audit of the Consolidated Financial Statements in India in
terms of the Code of Ethics issued by the Institute of Chartered
Accountants of India and the relevant provisions of the Act, and
we have fulfilled our other ethical responsibilities in accordance
with these requirements. We believe that the audit evidence we
have obtained and the audit evidence obtained by the other
auditors in terms of their reports referred to in sub-paragraph 20
of the Other Matters paragraph below, other than the unaudited
financial statements/financial information as certified by the
management and referred to in sub-paragraph 21 of the Other
Matters paragraph below, is sufficient and appropriate to
provide a basis for our opinion.
Emphasis of Matter
4.
We draw your attention to the following paragraph included in
the audit report on the consolidated special purpose financial
information of Tata Steel BSL Limited (formerly Bhushan Steel
Limited), a subsidiary of the Holding Company, issued by an
independent firm of chartered accountants vide its report dated
April 18, 2019:
“We draw attention to Note 3 to the Consolidated Special Purpose
Financial Information which describes the implementation of
Resolution Plan pursuant to its approval by National Company
Law Tribunal and the resultant impact of the same, as recorded in
the Consolidated Special Purpose Financial Information as at 17
May 2018. Our opinion is not modified in respect of this matter.”
Note 3 as described above corresponds to Note 41(A) to the
Consolidated Financial Statements. Our opinion is not modified
in respect of this matter.
293
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
Key Audit Matters
5.
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Consolidated
Financial Statements of the current year. These matters were addressed in the context of our audit of the Consolidated Financial Statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Our procedures included the following:
• We understood, assessed and tested the design and operating
effectiveness of
the Holding Company’s key controls
surrounding assessment of litigations relating to the relevant
laws and regulations;
• We discussed with management the recent developments and
the status of the material litigations which were reviewed and
noted by the Holding Company’s audit committee;
• We performed our assessment on a test basis on the underlying
liabilities/other
the
calculations
significant litigations made in relation to the Holding Company’s
Standalone Financial Statements;
supporting
contingent
• We used auditor’s experts to gain an understanding and to
evaluate the disputed tax matters;
• We considered external
obtained by management;
legal opinions, where relevant,
• We met with the Holding Company’s external legal counsel to
understand the interpretation of laws/regulations considered
by the management
in their assessment relating to a
material litigation;
• We evaluated management’s assessments by understanding
precedents set in similar cases and assessed the reliability of the
management’s past estimates/judgements;
• We evaluated management’s assessment around those matters
that are not disclosed or not considered as contingent liability,
as the probability of material outflow is considered to be remote
by the management; and
• We assessed the adequacy of the disclosures.
Based on the above work performed, management’s assessment
in respect of Holding Company’s litigations and related disclosures
relating to contingent liabilities/other significant litigations in the
Consolidated Financial Statements are considered to be reasonable.
Assessment of Holding Company’s litigations and related
disclosure of contingent liabilities
[Refer to Note 2 (c) to the Consolidated Financial Statements – “Use
of estimates and critical accounting judgements – Provisions and
contingent liabilities”, Note 39 (A) to the Consolidated Financial
Statements – “Contingencies” and Note 40 to the Consolidated
Financial Statements – “Other significant litigations”]
As at March 31, 2019, the Holding Company has exposures
towards litigations relating to various matters as included in the
aforesaid Notes.
Significant management judgement is required to assess such
matters to determine the probability of occurrence of material
outflow of economic resources and whether a provision should
be recognised or a disclosure should be made. The management
judgement is also supported with legal advice in certain cases as
considered appropriate.
As the ultimate outcome of the matters are uncertain and the
positions taken by the management are based on the application
of their best judgement, related legal advice including those
relating to interpretation of laws/regulations, it is considered to be
a Key Audit Matter.
294
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED Key Audit Matter
Business combination- Purchase Price Allocation for
acquisition of Tata Steel BSL Limited (formerly Bhushan
Steel Limited)
[Refer to Note 2(e) to the Consolidated Financial Statements –
“Business Combinations” and Note 41(A) to the Consolidated
Financial Statements]
On May 18, 2018, the Group completed the acquisition of business
of Tata Steel BSL Limited (formerly Bhushan Steel Limited)
(“TSBSL”), pursuant to the approved resolution plan under the
Insolvency and Bankruptcy Code, 2016.
The Group determined the acquisition to be business combination
in accordance with Ind AS 103. Ind AS 103 requires the identified
assets and liabilities be recognised at fair value at the date of
acquisition with the excess of identified fair value of recognised
assets and liabilities over the acquisition cost as capital reserve.
The Group engaged with the auditors of TSBSL (“other auditor”)
to perform an audit of the financial information of TSBSL as at the
acquisition date who have provided an unmodified opinion vide
their audit report dated April 18, 2019.
The Management determined that the fair values of the net
identifiable assets acquired was `1,918.88 crore. The valuation was
performed as part of the Purchase Price Allocation (PPA).
independent professional valuers to
The Group appointed
perform valuation of certain assets for the purpose of PPA.
The purchase price allocation exercise was completed resulting in
the Group recognising capital reserve of `1,236.34 crore directly in
“Other Equity”.
Significant assumptions and estimates were used
in the
determination of the fair values of the identified assets acquired
and liabilities assumed in the transaction and thus we consider this
area to be a Key Audit Matter.
How our audit addressed the Key Audit Matter
Our procedures included the following:
• We assessed and tested the design and operating effectiveness
of the Holding Company's key controls over the accounting of
business combination.
• We have evaluated the competence, capabilities and objectivity
of the management’s expert, obtained an understanding of the
work of the expert, and evaluated the appropriateness of the
expert’s work as audit evidence.
• We have traced the value of the consideration transferred with
reference to the resolution plan.
• We have obtained the audited financial information of TSBSL as at
the acquisition date as audited by the other auditor. We engaged
with the other auditor to ensure completeness, accuracy and
valuation of the PPA adjustments including engagement of an
independent valuation expert by the other auditor and to agree
the accounting done as per the resolution plan.
• We have further involved our valuation expert (“auditor’s
expert”) to review the PPA reports including the work done
by management experts and by the other auditor to assess
reasonableness of the underlying key assumptions used in
determining the fair value of assets and liabilities as at the
acquisition date.
• We have evaluated the competence, capabilities and objectivity
of the auditor’s expert, and the adequacy of the work performed
by the auditor’s expert.
• We have also assessed the Group’s determination of the fair
value of the remaining assets and liabilities having regard
to the completeness of assets and liabilities identified and
the reasonableness of any underlying assumptions in their
respective valuations.
• We have also verified the management’s computation of
capital reserve.
Based on the above work performed, we noted that the PPA
adjustments have been performed in accordance with Ind AS
103. We have also assessed and corroborated the adequacy and
appropriateness of the disclosures made in the Consolidated
Financial Statements and found it reasonable.
295
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 6.
The following Key Audit Matter was included in the audit report dated April 18, 2019, containing an unmodified audit opinion on the
consolidated special purpose financial information of Tata Steel BSL Limited (formerly Bhushan Steel Limited), a subsidiary of the Holding
Company issued by an independent firm of chartered accountants reproduced by us as under:
Key Audit Matter
How our audit addressed the Key Audit Matter
We have performed the following procedures to test the
recoverability of payments made by the Holding Company in
relation to litigations instituted against it prior to the approval of
the Resolution Plan:
• Verified the underlying documents related to litigations and
other correspondences with the statutory authorities.
• Involved direct and indirect tax specialists to review the process
used by the management to determine estimates and to test
the judgements applied by management in developing the
accounting estimates.
• Assessed management’s estimate of recoverability, supported
by an opinion obtained by the management from a legal expert,
by determining whether:
- The method of measurement used is appropriate in the
circumstances; and
-
The assumptions used by management are reasonable in light
of the measurement principles of Ind AS.
• Determined whether the methods for making estimates have
been applied consistently.
• Evaluated whether the accounting principles applied by the
management fairly present the amounts recoverable from
relevant authorities in Consolidated Special Purpose Financial
Information in accordance with the principles of Ind AS.”
Accounting treatment for the effects of the Resolution Plan
Refer Note 4
to
Financial Information.
the Consolidated
Special Purpose
to
the approval of
Prior
the Resolution Plan on 15
May 2018, the Holding Company was a party to certain litigations.
Pursuant to the approval of the Resolution Plan, it was determined
that no amounts are payable in respect of those litigations as they
stand extinguished.
The Holding Company had also made certain payments to
the relevant authorities in respect of those litigations which
recoverable under “Other non-financial
are presented as
the Consolidated Special Purpose
in
assets-non-current”
Financial Information.
The estimates related to expected outcome of litigations and
recoverability of payments made in respect thereof have high
judicial
degree of
precedents in India in respect of disposal of litigations involving
companies admitted to Corporate Insolvency Resolution Process.
inherent uncertainty due to
insufficient
The application of significant judgement in the aforementioned
matter required substantial involvement of senior personnel on
the audit engagement including individuals with expertise in
accounting of financial instruments.
296
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 7.
The following key audit matters and related audit procedures (as reproduced) were communicated to us by the auditors of Tata Steel
Europe Limited, a subsidiary of the Holding Company:
Key Audit Matter
How our audit addressed the Key Audit Matter
Accounting for Tata Steel Europe’s Pension Plan
Our procedures included the following:
Tata Steel UK Ltd (‘TSUK’) sponsors a defined benefit pension plan
with net post-retirement assets as at March 31, 2019 of £10.6bn
(Equivalent `96,807.02 crore) and net post-retirement liabilities as
at March 31, 2019 of £8.4bn (Equivalent `77,973.85 crore), which are
significant in the context of the overall consolidated balance sheet
of the Tata Steel UK Limited and Tata Steel Limited. The scheme is
now closed to all participants and there is no future accrual.
The valuation of the pension liabilities requires some judgement
and technical expertise in choosing appropriate assumptions.
A number of the key assumptions (including inflation, discount
rates and mortality) have a material impact on the calculation
of the liability.
The pension assets include significant investments and the fair
value measurement of which includes judgement. The recognition
of post-retirement plan net assets for accounting purposes is
dependent on the rights of the employers to recover the surplus
at the end of the life of the scheme.
• Evaluating the Directors’ assessment of the assumptions
made in relation to the valuations of the liabilities and assets
in the pension plans by comparing them to national and
industry averages.
• Focussing on the valuation of pension plan liabilities and the
pension assets by considering the experience and qualifications
of management’s actuaries in applying their methodology to the
pension liability and asset valuation.
• Agreeing the discount, inflation rates and mortality assumptions
used in the valuation of the pension liability to our internally
developed benchmarks.
• Obtaining independent third party confirmations on ownership
and valuation of pension assets.
• Testing a sample of pension assets to independent market
data where the asset was readily tradeable and engaging our
specialist valuations team to audit those assets that were not
freely transferrable on the open market, such as property assets.
• Validating a sample of the census data held by the Trustee
with that used by the actuary for the purpose of the pension
liability valuation.
• Testing the basis of recognition of the UK pension surplus
through the reading of scheme rules.
We did not identify any material exceptions from our audit work.
297
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Key Audit Matter
How our audit addressed the Key Audit Matter
Our procedures included the following:
• Reviewing the Deed of Undertaking, Contribution Agreement
the
Agreement
regarding
and
Shareholders
proposed joint venture.
• Reviewing the board minutes and other documents of relevance
prepared by Tata Steel Europe and its subsidiaries in relation to
the proposed joint venture.
• Reviewing communications made by key stakeholders
in
relation to the joint venture, including statements from the
European Commission.
• Considering the proposed accounting by the directors by
assessing the requirements of ‘Non-current Assets Held for Sale
and Discontinued Operations’.
We did not identify any material exceptions from our audit work.
Accounting for proposed JV with Thyssenkrupp
On June 30, 2018, Tata Steel Limited (TSL) signed a deed of
undertaking and contribution agreement with Thyssenkrupp AG
(tk) to form a joint venture between the European steel operations
of both companies called thyssenkrupp Tata Steel BV (tkTS).
TSL have agreed to contribute the entire issued share capital
of Tata Steel Netherlands Holdings BV (TSNH) for a 50% share in
the enlarged tkTS.
The joint venture remains subject to review and approval by the
European Commission. Their findings and the announcement
of any potential remedial actions are expected in June 2019.
TSL’s shareholders will also be required to provide their consent
via a shareholder vote prior to the contribution by TSL of share
capital of TSNH.
The directors are not presenting the TSNH group as an asset held
for sale on the basis that the proposed transaction as at March 31,
2019 was not highly probable in its current form, primarily because
it still required the consent of TSL shareholders, approval of
European Commission and the structure of the disposal group has
not been clarified.
In our view, this matter was of particular importance for our audit
due to the significant judgement involved in assessing the criteria
for held for sale and the potential material effects on the Group's
assets, liabilities, financial position and financial performance.
298
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 8.
The following key audit matter and related audit procedures (as reproduced) were communicated to us by the auditors of Tata Steel
Minerals Canada Limited, a subsidiary of the Holding Company:
Key Audit Matter
How our audit addressed the Key Audit Matter
Impairment of Long lived assets
Property plant and equipment (PP&E) in annexure 100 the
financial information as of March 31, 2019 amount to $979
million (Equivalent `6,577.49 crore). The Company continues to
wrap-up the processing plant and expects to enter commercial
production in the coming months. In accordance with IAS 36,
Management has performed an impairment indicator assessment
and concluded that there was an impairment indicator due to the
change of the production plan. Where an indication of impairment
exists, the carrying amount of the project is assessed and an
impairment provision is recognised, if required, immediately to
its recoverable amount. Management prepared a discounted cash
flow using the value in use (VIU) model to estimate the recoverable
amount as at March 31, 2019. The accounting for mining project in
development phase is a key audit matter as the determination of
VIU for impairment assessment involves significant management
judgement. The impairment assessment has been done by the
management in accordance with IAS 36.
The key inputs and judgements involved in the impairment/fair
valuation assessment include:
• Forecasted cash flows including assumptions on growth rates
and production cost
• Timing and ramp-up – The model was adjusted for the
completion of the Wet plant (in FY20) and extension of the life
of mine as a result of reduction of the quantity, which will be
processed by the plant.
• CFR China Fe 65% Sinter –the premium for 65% Fe over the
62% Fe
• Total ore reserve
• Discount rates
• Exchange rate between US and Canadian dollar
Economic and entity specific factors are incorporated in the
valuation used in the impairment assessment.
Our audit procedures included the following:
• We updated our understanding and evaluating the controls
around this risk.
• We tested the status of ownership of mineral titles.
• We evaluated the Company’s assessment whether objective
evidence of impairment exists for the project.
• We evaluated the Company’s process regarding impairment
assessment using value in use calculations by involving our
valuation experts to assist in assessing the appropriateness of
the impairment model including key inputs into the model.
• We assessed the VIU calculations performed by the Company
were within a predefined tolerable differences range.
• We assessed the historical accuracy of the Company’s forecasts
by comparing the forecasts used in the prior year model with
the actual performance in the current year.
• We checked the mathematical accuracy of the impairment
model and agreed relevant data back to the latest actual past
results and other supporting documents.
• We performed sensitivity analysis and evaluated whether any
reasonably foreseeable change in assumptions could lead to
impairment or material change in the VIU.
The impairment assessment remains sensitive to a range of
assumptions, in particular to changes in the pre-tax discount rate
and the achievement of the forecasted growth rates.
Based on the above procedures performed, we noted the results
of management’s impairment assessment to be reasonable and
consistent with the outcome of our procedures.”
299
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Other Information
9.
10.
11.
The Holding Company’s Board of Directors is responsible for
the other information. The other information comprises the
information in the Integrated Report, Board's Report alongwith
its Annexures and Financial Highlights included in the Holding
Company’s Annual Report (titled as ‘Tata Steel Integrated Report
& Annual Accounts 2018-19'), but does not include the financial
statements and our auditor’s report thereon.
Our opinion on the Consolidated Financial Statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Consolidated Financial
Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information
is materially
inconsistent with the Consolidated Financial
Statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have
performed and the reports of the other auditors as furnished
to us (Refer paragraph 20 below), we conclude that there is a
material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with
Governance for the Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible for the
preparation and presentation of these Consolidated Financial
Statements in terms of the requirements of the Act that give
a true and fair view of the consolidated financial position,
consolidated financial performance, consolidated changes in
equity and consolidated cash flows of the Group including its
associates and jointly controlled entities in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act.
The respective Board of Directors of the companies included in
the Group and of its associates and jointly controlled entities are
responsible for maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding
the assets of the Group and its associates and jointly controlled
entities respectively and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
accounting policies; making judgements and estimates that are
reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether
12.
300
due to fraud or error, which have been used for the purpose of
preparation of the Consolidated Financial Statements by the
Directors of the Holding Company, as aforesaid.
13.
In preparing the Consolidated Financial Statements, the
respective Board of Directors of the companies included in
the Group and of its associates and jointly controlled entities
are responsible for assessing the ability of the Group and of its
associates and jointly controlled entities to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
14.
The respective Board of Directors of the companies included in
the Group and of its associates and jointly controlled entities are
responsible for overseeing the financial reporting process of the
Group and of its associates and jointly controlled entities.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
15.
16.
Our objectives are to obtain reasonable assurance about
whether the Consolidated Financial Statements as a whole
are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken
on the basis of these Consolidated Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional scepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
Consolidated Financial Statements, whether due to fraud or
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under Section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED the Holding Company has adequate internal financial controls
with reference to Consolidated Financial Statements in place
and the operating effectiveness of such controls.
18.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the ability of the Group and its associates and
jointly controlled entities to continue as a going concern.
If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the Consolidated Financial Statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or
conditions may cause the Group and its associates and jointly
controlled entities to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
Consolidated Financial Statements, including the disclosures,
and whether the Consolidated Financial Statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the Group and its associates and jointly controlled
entities to express an opinion on the Consolidated Financial
Statements. We are responsible for the direction, supervision
and performance of the audit of the financial statements
of such entities included in the Consolidated Financial
Statements of which we are the independent auditors.
For the other entities included in the Consolidated Financial
Statements, which have been audited by other auditors,
such other auditors remain responsible for the direction,
supervision and performance of the audits carried out by
them. We remain solely responsible for our audit opinion.
17.
We communicate with those charged with governance of
the Holding Company and such other entities included in
the Consolidated Financial Statements of which we are the
independent auditors regarding, among other matters, the
planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control
that we identify during our audit.
19.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Consolidated Financial
Statements of the current year and are therefore the Key Audit
Matters. We describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.
Other Matters
20.
We did not audit the financial statements/financial information
of seventeen subsidiaries whose financial statements/financial
information reflect total assets of `132,537.70 crore and net
assets of `1,058.37 crore as at March 31, 2019, total revenue of
`88,748.77 crore, total comprehensive income [comprising of
profit/(loss) and other comprehensive income] of `(2,690.43)
crore and net cash flows amounting to `38.83 crore for the
year ended on that date, as considered in the Consolidated
Financial Statements, which also include their step down jointly
controlled entities and associates constituting `37.18 crore
of the Group’s share of total comprehensive income for the
year ended on that date. These financial statements/financial
information have been audited by other auditors whose reports
have been furnished to us by the other auditors/Management,
and our opinion on the Consolidated Financial Statements
insofar as it relates to the amounts and disclosures included in
respect of these subsidiaries, their step down jointly controlled
entities and associates and our report in terms of sub-section (3)
of Section 143 of the Act including report on Other Information
insofar as it relates to the aforesaid subsidiaries and their step
down jointly controlled entities and associates, is based solely
on the reports of the other auditors.
21.
We did not audit the financial statements/financial information
of twelve subsidiaries whose financial statements/financial
information reflect total assets of `8,280.96 crore and net assets
of `3,692.07 crore as at March 31, 2019, total revenue of `881.94
crore, total comprehensive income [comprising of profit/(loss)
and other comprehensive income] of `391.33 crore and net cash
301
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 flows amounting to `(64.54) crore for the year ended on that
date, as considered in the Consolidated Financial Statements.
The Consolidated Financial Statements also include the Group’s
share of total comprehensive income [comprising of profit/(loss)
and other comprehensive income] of `15.83 crore and `37.30
crore for the year ended March 31, 2019 as considered in the
Consolidated Financial Statements, in respect of four associates
and six jointly controlled entities respectively, whose financial
statements/financial information have not been audited by us.
These financial statements/financial information are unaudited
and have been furnished to us by the Management, and our
opinion on the Consolidated Financial Statements insofar as
it relates to the amounts and disclosures included in respect
of these subsidiaries, jointly controlled entities and associate
companies and our report in terms of sub-section (3) of Section
143 of the Act including report on Other Information insofar as
it relates to the aforesaid subsidiaries, jointly controlled entities
and associate companies, is based solely on such unaudited
financial statements/financial information. In our opinion and
according to the information and explanations given to us by the
Management, these financial statements/financial information
are not material to the Group.
Our opinion on the Consolidated Financial Statements and our
report on Other Legal and Regulatory Requirements below, is
not modified in respect of the above matters with respect to our
reliance on the work done and the reports of the other auditors
and the financial statements/financial information certified by
the Management.
In the case of one subsidiary, one jointly controlled entity and
two associates, the financial information for the year ended
March 31, 2019 is not available. The investments in these
companies are carried at Re. 1 as at March 31, 2019. In absence
of the aforementioned financial information, the financial
information in respect of the aforesaid subsidiary and the
Group's share of total comprehensive income of these jointly
controlled entities and associate companies for the year ended
March 31, 2019 have not been included in the Consolidated
Financial Statements. Our opinion is not modified in respect
of this matter.
22.
Report on Other Legal and Regulatory Requirements
23.
We draw attention to the following paragraph included in the
audit report on the consolidated special purpose financial
information of Tata Steel BSL Limited (formerly Bhushan Steel
Limited), a subsidiary of the Holding Company, issued by an
independent firm of chartered accountants vide its report dated
April 18, 2019 reproduced by us as under:
“As required by section 197(16) of the Act, based on our audit,
we report that the Holding Company paid remuneration to
its directors during the period 18 May 2018 to 31 March 2019
in accordance with the provisions of and limits laid down
under section 197 read with Schedule V to the Act. On the
consideration of the reports of the other auditors, referred to
in paragraph 12, on separate financial statements of certain
subsidiaries, we report that three subsidiary companies covered
under the Act have not paid or provided for any managerial
remuneration during the period 18 May 2018 to 31 March 2019.
Further, as stated in paragraph 13, financial statements of two
associate companies covered under the Act are unaudited and
have been furnished to us by the management, and as certified
by the management, such companies have not paid or provided
for any managerial remuneration during the period 18 May 2018
to 31 March 2019.”
24.
As required by Section 143(3) of the Act, we report, to the extent
applicable, that:
(a)
(b)
(c)
(d)
(e)
We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of the
aforesaid Consolidated Financial Statements.
In our opinion, proper books of account as required by
law relating to preparation of the aforesaid Consolidated
Financial Statements have been kept so far as it appears
from our examination of those books and the reports of
the other auditors.
the Consolidated
The Consolidated Balance Sheet,
(including Other
Statement of Profit and Loss
Comprehensive
Income), the Consolidated Statement
of Changes in Equity and the Consolidated Statement of
Cash Flows dealt with by this Report are in agreement with
the relevant books of account and records maintained
for the purpose of preparation of the Consolidated
Financial Statements.
In our opinion, the aforesaid Consolidated Financial
Statements comply with the Accounting Standards
specified under Section 133 of the Act.
On the basis of the written representations received from
the directors of the Holding Company taken on record
by the Board of Directors of the Holding Company and
the reports of the statutory auditors of its subsidiary
companies, associate companies and jointly controlled
companies incorporated in India, none of the directors of
the Group companies, its associate companies and jointly
controlled companies incorporated in India is disqualified
302
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
as on March 31, 2019 from being appointed as a director in
terms of Section 164(2) of the Act.
iii.
(f )
(g)
i.
ii.
With respect to the adequacy of internal financial controls
with reference to Consolidated Financial Statements of the
Group and the operating effectiveness of such controls,
refer to our separate report in Annexure A.
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditor’s) Rules, 2014, in our opinion
and to the best of our information and according to the
explanations given to us:
The Consolidated Financial Statements disclose the
impact of pending litigations as on March 31, 2019 on the
consolidated financial position of the Group, its associates
and jointly controlled entities– Refer Notes 39 (A) and 40 to
the Consolidated Financial Statements.
The Group, its associates and jointly controlled entities
had long-term contracts including derivative contracts
as on March 31, 2019 for which there were no material
foreseeable losses.
There has been no delay in transferring amounts, required
to be transferred, to the Investor Education and Protection
Fund by the Holding Company and
its subsidiary
companies, associate companies and jointly controlled
companies incorporated in India during the year ended
March 31, 2019 except for amounts aggregating to `5.25
crore, which according to the information and explanations
provided by the management is held in abeyance due to
dispute/pending legal cases.
iv.
The reporting on disclosures relating to Specified Bank
Notes is not applicable to the Group for the year ended
March 31, 2019.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
Place: Mumbai
Russell I Parera
Partner
Date: April 25, 2019
Membership Number 042190
303
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT
Referred to in paragraph 24(f) of the Independent Auditor’s
Report of even date to the members of Tata Steel Limited on
the Consolidated Financial Statements as of and for the year
ended March 31, 2019
Report on the Internal Financial Controls with reference to
Consolidated Financial Statements under Clause (i) of Sub-
section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
1.
In conjunction with our audit of the Consolidated Financial
Statements of the Tata Steel Limited (hereinafter referred
to as “the Holding Company”) as of and for the year ended
March 31, 2019, we have audited the internal financial controls
with reference to Consolidated Financial Statements of the
Holding Company and its subsidiary companies, its associate
companies and
jointly controlled companies, which are
companies incorporated in India, as of that date. Reporting under
clause (i) of sub-section 3 of Section 143 of the Act in respect of
the adequacy of the internal financial controls with reference to
financial statements is not applicable to two jointly controlled
companies incorporated in India namely S & T Mining Company
Private Limited and Tata NYK Shipping (India) Private Limited,
pursuant to MCA notification GSR 583(E) dated June 13, 2017.
Management’s Responsibility for Internal Financial Controls
2.
The respective Board of Directors of the Holding Company,
its subsidiary companies, its associate companies and jointly
controlled companies, to whom reporting under clause (i) of
sub-section 3 of Section 143 of the Act in respect of the adequacy
of the internal financial controls with reference to financial
statements is applicable, which are companies incorporated in
India, are responsible for establishing and maintaining internal
financial controls based on the internal control over financial
reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants
of
include the design,
implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence
to the respective company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as
required under the Act.
India (ICAI). These responsibilities
Auditor’s Responsibility
3.
Our responsibility is to express an opinion on the Company's
internal financial controls with reference to Consolidated
Financial Statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance
Note”) and the Standards on Auditing deemed to be prescribed
under Section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both
applicable to an audit of internal financial controls and both
issued by the ICAI. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference
to Consolidated Financial Statements was established and
maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
system with reference to Consolidated Financial Statements
and their operating effectiveness. Our audit of internal financial
controls with reference to Consolidated Financial Statements
included obtaining an understanding of internal financial
controls with reference to Consolidated Financial Statements,
assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the Consolidated Financial
Statements, whether due to fraud or error.
4.
5.
We believe that the audit evidence we have obtained and
the audit evidence obtained by the other auditors in terms of
their reports referred to in the Other Matter paragraph below,
is sufficient and appropriate to provide a basis for our audit
opinion on the Company’s internal financial controls system
with reference to Consolidated Financial Statements.
Meaning of Internal Financial Controls with reference to
financial statements
6.
A company's internal financial control with reference to financial
statements
is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles.
A company's internal financial controls with reference to financial
statements includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of
the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
304
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or disposition
of the company's assets that could have a material effect on the
financial statements.
2019, based on the internal control over financial reporting
criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting
issued by the Institute of Chartered Accountants of India.
Inherent Limitations of Internal Financial Controls with
reference to financial statements
7.
Because of the inherent limitations of internal financial controls
with reference to financial statements, including the possibility
of collusion or improper management override of controls,
material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal
financial controls with reference to financial statements to
future periods are subject to the risk that the internal financial
controls with reference to financial statements may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
8.
In our opinion, the Holding Company, its subsidiary companies,
its associate companies and jointly controlled companies,
which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls system with
reference to Consolidated Financial Statements and such
internal financial controls with reference to Consolidated
Financial Statements were operating effectively as at March 31,
Other Matter
9.
Our aforesaid report under Section 143(3)(i) of the Act on the
adequacy and operating effectiveness of the internal financial
controls with reference to Consolidated Financial Statements
insofar as it relates to ten subsidiary companies, which are
companies incorporated in India, is based on the corresponding
report of the auditors of such companies incorporated in India.
Our opinion is not qualified in respect of this matter.
For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/ E-300009
Chartered Accountants
Place: Mumbai
Russell I Parera
Partner
Date: April 25, 2019
Membership Number 042190
305
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 Note
Page
As at
March 31, 2019
As at
March 31, 2018
(` crore)
3
5
6
7
8
9
10
11
12
13
327
332
333
335
337
338
340
341
342
346
1,18,450.97
17,956.51
3,996.62
1,994.32
684.70
1,922.95
1,290.36
613.34
108.74
570.06
19,964.19
1,574.78
808.95
4,654.92
1,74,591.41
90,322.78
16,159.80
4,099.45
1,682.66
454.61
1,781.22
1,209.28
717.34
29.16
87.91
20,570.87
1,152.76
1,035.80
2,577.14
1,41,880.78
14
348
31,656.10
28,331.04
8
15
16
17
9
10
11
337
348
350
350
338
340
341
13
346
18
351
2,524.86
11,811.00
2,975.53
365.84
239.70
359.11
1,248.56
4.38
133.94
3,529.70
54,848.72
4,142.26
2,33,582.39
14,908.97
12,415.52
7,783.50
154.35
256.48
150.95
610.60
2.91
62.28
3,098.09
67,774.69
102.47
2,09,757.94
CONSOLIDATED BALANCE SHEET
as at March 31, 2019
Assets
I
Intangible assets under development
Property, plant and equipment
Capital work-in-progress
Goodwill on consolidation
Non-current assets
(a)
(b)
(c)
(d) Other intangible assets
(e)
(f ) Equity accounted investments
(g) Financial assets
(i) Investments
(ii) Loans
(iii) Derivative assets
(iv) Other financial assets
(h) Retirement benefit assets
(i) Non-current tax assets
(j) Deferred tax assets
(k) Other assets
Total non-current assets
Current assets
(a)
(b)
Investments
Trade receivables
Inventories
Financial assets
(i)
(ii)
(iii) Cash and cash equivalents
(iv) Other balances with banks
(v)
(vi) Derivative assets
(vii) Other financial assets
Retirement benefit assets
Current tax assets
Loans
(c)
(d)
(e) Other assets
Total current assets
III Assets held for sale
Total assets
II
306
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED CONSOLIDATED BALANCE SHEET (CONTD.)
as at March 31, 2019
Equity and liabilities
IV Equity
(a)
Equity share capital
(b) Hybrid perpetual securities
(c) Other equity
Equity attributable to owners of the Company
Non-controlling interests
Total equity
(a)
V Non-current liabilities
Financial liabilities
(i)
Borrowings
(ii) Derivative liabilities
(iii) Other financial liabilities
Provisions
Retirement benefit obligations
(b)
(c)
(d) Deferred income
(e) Deferred tax liabilities
(f ) Other liabilities
Total non-current liabilities
VI Current liabilities
(a)
Financial liabilities
Borrowings
(i)
Trade payables
(ii)
(a) Total outstanding dues of micro and small enterprises
(b) Total outstanding dues of creditors other than micro and
small enterprises
(iii) Derivative liabilities
(iv) Other financial liabilities
Provisions
Retirement benefit obligations
Current tax liabilities
(b)
(c)
(d) Deferred income
(e)
(f ) Other liabilities
Total current liabilities
VII Liabilities held for sale
Total equity and liabilities
Notes forming part of the consolidated financial statements
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
Note
Page
As at
March 31, 2019
As at
March 31, 2018
(` crore)
19
20
21
353
356
357
23
363
24
25
11
26
12
27
368
369
341
370
342
371
23
28
363
372
24
25
11
26
368
369
341
370
27
371
18
351
1-53
1,144.94
2,275.00
65,505.14
68,925.08
2,364.46
71,289.54
80,342.73
59.82
270.58
4,046.21
2,653.46
906.80
12,459.89
519.23
1,01,258.72
1,144.95
2,275.00
57,450.67
60,870.62
936.52
61,807.14
72,789.10
85.04
105.83
4,338.24
2,516.56
1,526.58
10,569.88
358.16
92,289.39
10,802.08
15,884.98
169.74
21,547.22
32.21
20,381.60
416.59
16,737.83
1,248.72
120.69
16.51
636.42
7,912.21
59,608.01
1,426.12
2,33,582.39
468.79
9,791.78
1,269.64
110.36
6.21
783.47
6,932.26
55,661.30
0.11
2,09,757.94
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
307
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 CONSOLIDATED STATEMENT OF PROFIT AND LOSS
for the year ended March 31, 2019
I
II
III
IV
Revenue from operations
Other income
Total income
Expenses:
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c) Changes in inventories of finished and semi-finished goods, stock-in-trade and
work-in-progress
(d) Employee benefits expense
(e) Finance costs
(f ) Depreciation and amortisation expense
(g) Other expenses
V
VI
VII
(h) Less: Expenditure (other than interest) transferred to capital and other accounts
Total expenses
Share of profit/(loss) of joint ventures and associates
Profit/(loss) before exceptional items and tax (III-IV+V)
Exceptional items:
(a) Profit on sale of subsidiaries and non-current investments
(b) Provision for impairment of investments/doubtful advances
(c) Provision for impairment of non-current assets
(d) Provision for demands and claims
(e) Employee separation compensation
(f ) Restructuring and other provisions
Total exceptional items
VIII Profit/(loss) before tax (VI+VII)
IX
Tax expense:
(a) Current tax
(b) Deferred tax
Total tax expense
Profit/(loss) after tax from continuing operations
Profit/(loss) after tax from discontinued operations
(a) Profit/(loss) after tax from discontinued operations
(b) Profit/(loss) on disposal of discontinued operations
Profit/(loss) after tax from discontinued operations
Profit/(loss) for the year (X+XI)
X
XI
XII
308
Note
Page
29
30
372
373
31
32
33
34
373
374
374
374
35
375
36
375
Year ended
March 31, 2019
1,57,668.99
1,420.58
1,59,089.57
54,309.07
6,567.98
(96.71)
18,758.87
7,660.10
7,341.83
50,410.72
1,44,951.86
1,664.28
1,43,287.58
224.70
16,026.69
180.13
(172.12)
(9.57)
(328.64)
(35.33)
244.56
(120.97)
15,905.72
6,728.14
(9.71)
6,718.43
9,187.29
(88.96)
-
(88.96)
9,098.33
(` crore)
Year ended
March 31, 2018
1,24,109.69
881.10
1,24,990.79
40,762.41
5,374.60
99.31
16,969.91
5,454.74
5,741.70
40,471.13
1,14,873.80
1,000.86
1,13,872.94
239.12
11,356.97
-
(27.25)
(903.01)
(3,213.68)
(107.60)
13,850.66
9,599.12
20,956.09
1,980.24
1,412.09
3,392.33
17,563.76
193.90
5.15
199.05
17,762.81
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED CONSOLIDATED STATEMENT OF PROFIT AND LOSS (CONTD.)
for the year ended March 31, 2019
Note
Page
Year ended
March 31, 2019
Year ended
March 31, 2018
(` crore)
XIII Other comprehensive income/(loss)
A.
(i)
Items that will not be reclassified subsequently to profit and loss:
(a) Remeasurement gain/(loss) on post-employment defined benefit plans
(b) Fair value changes of investments in equity shares
(c) Share of equity accounted investees
(ii) Income tax on items that will not be reclassified subsequently to
B.
(i)
profit and loss
Items that will be reclassified subsequently to profit and loss:
(a) Foreign currency translation differences
(b) Fair value changes of cash flow hedges
(c) Share of equity accounted investees
(ii) Income tax on items that will be reclassified subsequently to
profit and loss
Total other comprehensive income/(loss) for the year
XIV Total comprehensive income/(loss) for the year (XII+XIII)
XV
Profit/(loss) from continuing operations for the year attributable to:
Owners of the Company
Non-controlling interests
XVI Profit/(loss) from discontinued operations for the year attributable to:
Owners of the Company
Non-controlling interests
XVII Total comprehensive income for the year attributable to:
Owners of the Company
Non-controlling interests
XVIII Earnings per share (for continuing operations)
37
377
Basic (`)
Diluted (`)
XIX Earnings per share (for discontinued operations)
XX
Basic (`)
Diluted (`)
Earnings per share (for continuing and discontinued operations)
Basic (`)
Diluted (`)
37
377
37
377
XXI Notes forming part of the consolidated financial statements
1-53
In terms of our report attached
For and on behalf of the Board of Directors
(683.60)
(36.65)
(0.14)
94.83
508.47
161.80
4.53
(41.45)
(1,489.18)
(204.55)
(0.24)
212.98
(1,544.04)
(97.76)
16.20
28.58
7.79
9,106.12
(3,078.01)
14,684.80
10,283.45
(1,096.16)
9,187.29
(65.12)
(23.84)
(88.96)
10,362.88
(1,256.76)
9,106.12
88.32
88.31
(0.57)
(0.57)
87.75
87.74
13,255.26
4,308.50
17,563.76
179.07
19.98
199.05
8,802.54
5,882.26
14,684.80
126.39
126.37
1.73
1.73
128.12
128.10
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
309
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended March 31, 2019
A. Equity share capital
Balance as at
April 1, 2018
1,144.95
Balance as at
April 1, 2017
970.24
B. Hybrid perpetual securities
Balance as at
April 1, 2018
2,275.00
Balance as at
April 1, 2017
2,275.00
C. Other equity
Changes
during the year
(0.01)
Changes
during the year
174.71
Changes
during the year
-
Changes
during the year
-
(` crore)
Balance as at
March 31, 2019
1,144.94
(` crore)
Balance as at
March 31, 2018
1,144.95
(` crore)
Balance as at
March 31, 2019
2,275.00
(` crore)
Balance as at
March 31, 2018
2,275.00
Retained
earnings
[refer note
21A, page 357]
Items of other
comprehensive
income
[refer note 21B,
page 357]
Other
consolidated
reserves
[refer note 21C,
page 359]
7,801.99
10,218.33
(425.92)
7,149.50
-
570.47
42,499.16
-
-
Share
application
money pending
allotment
[refer note 21D,
page 361]
0.02
-
-
(` crore)
Total
Other equity
attributable to
the owners of
the Company
Non-
controlling
interests
57,450.67
10,218.33
144.55
936.52 58,387.19
9,098.33
7.79
(1,120.00)
(136.76)
9,792.41
570.47
-
0.26
0.43
-
-
-
-
-
-
-
-
-
-
(31.06)
-
-
-
-
-
(76.76)
7,612.15
1.11
1,336.41
-
-
-
(0.81)
-
43,836.56
-
10,362.88 (1,256.76) 9,106.12
(0.26)
-
-
0.43
-
-
-
0.43
-
-
-
-
-
-
-
-
(1,144.76)
(224.61)
(266.12)
(41.44)
-
-
(1,186.20)
(224.61)
(266.12)
92.99
-
92.99
-
1,336.41
-
(2,025.42)
-
729.33
(67.10)
2,025.42
-
2,065.74
(67.10)
-
0.24
-
-
-
0.24
(0.81)
(76.76)
65,505.14
-
-
38.49
0.24
(0.81)
(38.27)
2,364.46 67,869.60
Balance as at April 1, 2018
Profit/(loss) for the year
Other comprehensive income
for the year
Total comprehensive income for
the year
Issue of Ordinary Shares
Equity issue expenses
written (off )/back
Dividend(i)
Tax on dividend
Distribution on hybrid
perpetual securities
Tax on distribution on hybrid
perpetual securities
Transfers within equity
Addition relating to acquisitions
Disposal of group undertakings
Adjustment for changes in
ownership interests
Application money received
Adjustment for cross holdings
Other movements
Balance as at March 31, 2019
310
-
-
(1,144.76)
(224.61)
(266.12)
92.99
29.95
-
-
(2,025.42)
-
-
-
14,056.43
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTD.)
for the year ended March 31, 2019
C. Other equity (Contd.)
Balance as at April 1, 2017
Profit/(loss) for the year
Other comprehensive income
for the year
Total comprehensive income for
the year
Issue of Ordinary Shares(ii)
Equity issue expenses written off(ii)
Dividend(i)
Tax on dividend
Distribution on hybrid
perpetual securities
Tax on distribution on hybrid
perpetual securities
Transfers within equity
Adjustment for changes in
ownership interests
Application money received
Other movements
Balance as at March 31, 2018
Retained
earnings
[refer note
21A,
page 357]
Items of other
comprehensive
income
[refer note 21B,
page 357]
Other
consolidated
reserves
[refer note 21C,
page 359]
(11,447.01)
13,434.33
(2,780.05)
12,428.86
-
(1,851.74)
33,592.22
-
-
Share
application
money pending
allotment
[refer note 21D,
page361]
0.01
-
-
(` crore)
Total
Other equity
attributable to
the owners of
the Company
Non-
controlling
interests
34,574.08
13,434.33
(4,631.79)
1,601.70 36,175.78
17,762.81
4,328.48
(3,078.01)
1,553.78
10,654.28
(1,851.74)
-
-
8,802.54
5,882.26 14,684.80
-
-
(970.05)
(188.17)
(266.13)
92.70
3,426.26
6,500.11
-
-
7,801.99
-
-
-
-
-
-
(3,427.62)
-
-
-
7,149.50
8,939.59
(33.85)
-
-
-
-
1.20
-
(0.01)
-
-
-
-
-
-
-
8,939.58
(33.85)
(970.05)
(188.17)
(266.13)
-
-
(15.07)
-
-
8,939.58
(33.85)
(985.12)
(188.17)
(266.13)
92.70
-
92.70
(0.16)
6,500.11
0.16
(6,500.11)
-
-
-
-
42,499.16
0.02
-
0.02
0.02
-
57,450.67
-
0.02
(32.42)
(32.42)
936.52 58,387.19
(i)
Dividend paid during the year ended March 31, 2019 is `10.00 per Ordinary Share (face value `10 each, fully paid up) and `2.504 per
Ordinary Share (face value `10, partly paid up `2.504 per share) (March 31, 2018: `10.00 per Ordinary Share of face value `10 each,
fully paid up).
(ii) Represents premium received and issue expenses on right issue of shares during the year ended March 31, 2018.
D. Notes forming part of the consolidated financial statements Note 1-53
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
311
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended March 31, 2019
A. Cash flows from operating activities:
Profit before taxes
Adjustments for:
Depreciation and amortisation expense
Dividend income
(Gain)/loss on sale of property, plant and equipment including intangible
assets (net of loss on assets sold/scrapped/written off )
Exceptional (income)/expenses
(Gain)/loss on cancellation of forwards, swaps and options
Interest income and income from current investments
Finance costs
Exchange (gain)/loss on revaluation of foreign currency loans and swaps
Share of profit or loss of joint ventures and associates
(Profit)/loss on disposal of discontinued operation
Other non-cash items
Operating profit before changes in non-current/current assets
and liabilities
Adjustments for:
Non-current/current financial and other assets
Inventories
Non-current/current financial and other liabilities/provisions
Cash generated from operations
Income taxes paid
Net cash from/(used in) operating activities
B.
Cash flows from investing activities:
Purchase of capital assets
Sale of capital assets
Purchase of non-current investments
Sale of non-current investments
(Purchase)/sale of current investments (net)
Loans given
Repayment of loans given
Fixed/restricted deposits with banks (placed)/realised
Interest received
Dividend received from associates and joint ventures
Dividend received from others
Acquisition of subsidiaries/undertakings
Sale of subsidiaries/undertakings(i)
Year ended
March 31, 2019
(` crore)
Year ended
March 31, 2018
15,807.12
21,168.20
7,579.32
(26.19)
(266.40)
136.26
(36.95)
(1,037.89)
7,741.88
(1,150.77)
(222.27)
-
(684.45)
(114.54)
(1,068.71)
3,773.76
(9,091.00)
466.69
(489.96)
462.50
13,093.07
(242.47)
260.86
418.32
175.43
114.15
34.19
(35,282.46)
178.86
5,961.66
(68.25)
49.29
(9,599.12)
79.33
(929.15)
5,501.79
(1,376.77)
(174.10)
(5.15)
(420.59)
12,032.54
27,839.66
(981.06)
20,187.14
2,590.51
30,430.17
(5,094.22)
25,335.95
(9,275.53)
10,911.61
(2,888.22)
8,023.39
(208.94)
(1,595.43)
(7,471.16)
(7,478.50)
179.05
(85.67)
3,898.74
(8,555.08)
(46.22)
2.56
(85.33)
254.50
69.17
41.93
(255.00)
34.22
Net cash from/(used in) investing activities
(29,901.82)
(12,025.63)
312
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTD.)
for the year ended March 31, 2019
C. Cash flows from financing activities:
Proceeds from issue of equity shares (net of issue expenses(ii))
Proceeds from borrowings
Repayment of borrowings
Repayment of finance lease obligations
Amount received/(paid) on utilisation/cancellation of derivatives
Distribution on hybrid perpetual securities
Interest paid
Dividend paid
Tax on dividend paid
Net cash from/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents
Opening cash and cash equivalents (refer note16, page 350) (iii)
Effect of exchange rate on translation of foreign currency cash and
cash equivalents
Closing cash and cash equivalents (refer note16, page 350)
Year ended
March 31, 2019
(` crore)
Year ended
March 31, 2018
(6.03)
42,763.90
(34,246.39)
(276.33)
(66.64)
(265.39)
(7,151.93)
(1,186.20)
(237.69)
9,087.23
24,161.36
(19,724.98)
(211.15)
(79.86)
(267.10)
(5,145.57)
(982.35)
(197.64)
(672.70)
(5,238.57)
8,179.62
34.48
2,975.53
6,639.94
2,637.70
4,850.48
295.32
7,783.50
(i)
(ii)
Includes `91.62 crore (2017-18: Nil) received in respect of deferred consideration on disposal of a subsidiary during the year ended
March 31, 2018.
During the year ended March 31, 2018, expenses incurred in connection with Rights Issue, 2018 was partly paid by the Company and was
pending adjustment against actual utilisation from the issue proceeds. The same has been fully utilised during the year.
(iii)
Includes `713.59 crore (2017-18: `18.19 crore) in respect of a subsidiary acquired during the year and excludes `317.47 crore
(2017-18: Nil) in respect of subsidiaries disposed off/classified as held for sale.
(iv)
Significant non-cash movements in borrowings during the year include:
(a)
addition on account of subsidiaries acquired during the year `986.65 crore (2017-18: `719.37 crore) and reduction on account of
subsidiaries disposed off/classified as held for sale `758.50 crore (2017-18: Nil).
(b) exchange gain (including translation) `344.86 crore (2017-18: loss `3,571.86 crore).
(c) amortisation/effective interest rate adjustments of upfront fees `626.30 crore (2017-18: `456.16 crore)
(d) adjustment to finance lease obligations, decrease `26.35 crore (2017-18: increase `167.65 crore).
D. Notes forming part of the consolidated financial statements
Note 1-53
In terms of our report attached
For and on behalf of the Board of Directors
For Price Waterhouse & Co Chartered Accountants LLP
sd/-
N. Chandrasekaran Mallika Srinivasan O. P. Bhatt
sd/-
sd/-
Firm Registration Number: 304026E/E-300009
Chartered Accountants
Chairman
DIN: 00121863
Director
DIN: 00037022
Director
DIN: 00548091
sd/-
Peter Blauwhoff
Director
DIN: 07728872
sd/-
Deepak Kapoor
Director
DIN: 00162957
sd/-
Aman Mehta
Director
DIN: 00009364
sd/-
Russell I Parera
Partner
Membership Number 042190
Mumbai, April 25, 2019
sd/-
V. K. Sharma
Director
DIN: 02449088
sd/-
Saurabh Agrawal
Director
DIN: 02144558
sd/-
T. V. Narendran
Managing Director &
Chief Executive Officer
DIN: 03083605
sd/-
Koushik Chatterjee
Executive Director &
Chief Financial Officer
DIN: 00004989
sd/-
Parvatheesam K.
Company Secretary &
Chief Legal Officer
(Corporate & Compliance)
ACS: 15921
313
STRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
1. Company information
Tata Steel Limited (“the Company”) is a public limited Company
incorporated in India with its registered office in Mumbai,
Maharashtra, India. The Company is listed on the BSE Limited
(BSE) and the National Stock Exchange of India Limited (NSE).
The Company and its subsidiaries (collectively referred to as
‘the Group’) have presence across the entire value chain of steel
manufacturing from mining and processing iron ore and coal
to producing and distributing finished products. The Group
offers a broad range of steel products including a portfolio of
high value- added downstream products such as hot rolled, cold
rolled & coated steel, rebars, wire rods, tubes and wires.
The consolidated financial statements as at March 31, 2019
present the financial position of the Group as well as its interests
in associate companies and joint arrangements. The list of
entities consolidated is provided in note 53, page 410.
The functional and presentation currency of the Company and
the presentation currency of the Group is Indian Rupee (“`”).
As on March 31, 2019, Tata Sons Private Limited owns 31.64%
of the Ordinary Shares of the Company, and has the ability to
influence the Group’s operations.
The consolidated financial statements for the year ended
March 31, 2019 were approved by the Board of Directors and
authorised for issue on April 25, 2019.
2. Significant accounting policies
The significant accounting policies applied by the Group in the
preparation of its consolidated financial statements are listed
below. Such accounting policies have been applied consistently
to all the periods presented in these consolidated financial
statements, unless otherwise indicated.
(a) Statement of compliance
The consolidated financial statements have been prepared in
accordance with the Indian Accounting Standards (referred to
as “Ind AS”) prescribed under Section 133 of the Companies
Act, 2013 read with Companies (Indian Accounting Standards)
Rules, as amended from time to time and other relevant
provisions of the Act.
(b) Basis of preparation
The consolidated financial statements have been prepared
under the historical cost convention with the exception of
certain assets and liabilities that are required to be carried at fair
values by Ind AS.
Fair value is the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
(c) Use of estimates and critical accounting judgements
In the preparation of the consolidated financial statements, the
Group makes judgements, estimates and assumptions about
the carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and future
periods affected.
Key source of estimation of uncertainty at the date of the
consolidated financial statements, which may cause material
adjustment to the carrying amounts of assets and liabilities
within the next financial year, is in respect of impairment, useful
lives of property, plant and equipment and intangible assets,
valuation of deferred tax assets, provisions and contingent
liabilities, fair value measurements of financial instruments,
retirement benefit obligations and non-current assets classified
as held for sale as discussed below.
Impairment
The Group estimates the value in use of the cash generating
unit (CGU) based on future cash flows after considering current
economic conditions and trends, estimated future operating
results and growth rates and anticipated future economic and
regulatory conditions. The estimated cash flows are developed
using internal forecasts. The cash flows are discounted using a
suitable discount rate in order to calculate the present value.
Further details of the Group’s impairment review and key
assumptions are set out in note 3, page 327, note 5, page 332
and note 6, page 333.
Useful lives of property, plant and equipment and
intangible assets
The Group reviews the useful life of property, plant and
equipment and intangible assets at the end of each reporting
period. This reassessment may result in change in depreciation
and amortisation expense in future periods. The policy has been
detailed in note 2(n), page 318.
314
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
to assess whether the sale of the assets (or disposal group) is
highly probable.
Valuation of deferred tax assets
The Group reviews the carrying amount of deferred tax assets at
the end of each reporting period. The policy has been detailed
in note 2 (y), page 324 and its further information are set out in
note 12, page 342.
Provisions and contingent liabilities
A provision is recognised when the Group has a present
obligation as result of a past event and it is probable that the
outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made. These are
reviewed at each balance sheet date and adjusted to reflect the
current best estimates. Contingent liabilities are not recognised
in the financial statements. Further details are set out in note 25,
page 369 and note 39(A), page 389.
Fair value measurements of financial instruments
When the fair value of financial assets and financial liabilities
recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured
using valuation techniques including Discounted Cash Flow
Model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a
degree of judgement is required in establishing fair value.
Judgements include considerations of inputs such as liquidity
risks, credit risks and volatility. Changes in assumptions about
these factors could affect the reported fair value of financial
instruments. Further details are set out in note 44, page 398.
Retirement benefit obligations
The Group’s retirement benefit obligations are subject to a
number of judgements including discount rates, inflation
and salary growth. Significant judgements are required when
setting these criteria and a change in these assumptions would
have a significant impact on the amount recorded in the Group’s
balance sheet and the consolidated statement of profit and loss.
The Group sets these judgements based on previous experience
and third party actuarial advice. Further details on the Group’s
retirement benefit obligations, including key judgements are
set out in note 38, page 378.
Non-current assets held for sale
The recognition of non-current assets (or disposal groups) as
held for sale is dependent upon whether its carrying amount
will be recovered principally through a sale transaction rather
than through continuing use. Significant judgement is required
(d) Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and entities controlled by the
Company i.e. its subsidiaries. It also includes the Group’s share of
profits, net assets and retained post acquisition reserves of joint
arrangements and associates that are consolidated using the
equity or proportionate method of consolidation, as applicable.
Control is achieved when the Company is exposed to, or has
rights to the variable returns of the entity and the ability to affect
those returns through its power to direct the relevant activities
of the entity.
The results of subsidiaries, joint arrangements and associates
acquired or disposed off during the year are included in the
consolidated statement of profit and loss from the effective
date of acquisition or up to the effective date of disposal,
as appropriate.
Wherever necessary, adjustments are made to the financial
statements of subsidiaries, joint arrangements and associates to
bring their accounting policies in line with those used by other
members of the Group.
Intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the Group’s equity.
The interest of non-controlling shareholders may be initially
measured either at fair value or at the non-controlling interests’
proportionate share of the fair value of the acquiree’s identifiable
net assets. The choice of measurement basis is made on an
acquisition-by-acquisition basis. Subsequent to acquisition, the
carrying value of non-controlling interests is the amount of those
interests at initial recognition plus the non-controlling interests’
share of subsequent changes in equity. Total comprehensive
income is attributed to non-controlling interests even if it results
in the non-controlling interests having a deficit balance.
(e) Business combinations
Acquisition of subsidiaries and businesses are accounted for
using the acquisition method. The consideration transferred
in each business combination is measured at the aggregate
of the acquisition date fair values of assets given, liabilities
incurred by the Group to the former owners of the acquiree and
equity interests issued by the Group in exchange for control
of the acquiree.
315
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
(g) Investment in associates
Acquisition related costs are recognised in the consolidated
statement of profit and loss.
Goodwill arising on acquisition is recognised as an asset
and measured at cost, being the excess of the consideration
transferred in the business combination over the Group’s interest
in the net fair value of the identifiable assets acquired, liabilities
assumed and contingent liabilities recognised. Where the fair
value of the identifiable assets and liabilities exceed the cost of
acquisition, after re-assessing the fair values of the net assets
and contingent liabilities, the excess is recognised as capital
reserve on consolidation.
Once control has been achieved, any subsequent acquisitions
where the Group does not originally hold hundred percent
interest in a subsidiary are treated as an acquisition of shares from
non-controlling shareholders. The identifiable net assets are not
subject to further fair value adjustments and the difference
between the cost of acquisition of the non-controlling interest
and the net book value of the additional interest acquired is
adjusted in equity.
Business combinations arising from transfer of interests in
entities that are under common control are accounted for
using the pooling of interest method. The difference between
any consideration transferred and the aggregate historical
carrying values of assets and liabilities of the acquired entity are
recognised in shareholders' equity.
(f) Goodwill
is
Goodwill
is subsequently measured at cost
impairment losses.
initially recognised as an asset at cost and
less any accumulated
For the purpose of impairment testing, goodwill is allocated
to each of the Group’s cash-generating units or groups of cash
generating units that are expected to benefit from the synergies
of the combination. Cash-generating units to which goodwill
has been allocated are tested for impairment annually, or more
frequently when there is an indication that the unit’s value may
be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying value of the unit, the impairment
loss is allocated first to reduce the carrying value of any goodwill
allocated to the unit and then to the other assets of the unit in
proportion to the carrying value of each asset in the unit.
An impairment loss recognised for goodwill is not reversed in a
subsequent period. On disposal of a subsidiary, the attributable
amount of goodwill is included in the determination of profit or
loss on disposal.
316
Associates are those enterprises over which the Group has
significant influence, but does not have control or joint control.
Investments in associates are accounted for using the equity
method and are initially recognised at cost from the date
significant influence commences until the date that significant
influence ceases. Subsequent changes in the carrying value
reflect the post-acquisition changes in the Group’s share of net
assets of the associate and impairment charges, if any.
When the Group’s share of losses exceeds the carrying value of
the associate, the carrying value is reduced to nil and recognition
of further losses is discontinued, except to the extent that the
Group has incurred obligations in respect of the associate.
Unrealised gains on transactions between the Group and its
associates are eliminated to the extent of the Group’s interest
in the associates, unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset
transferred and where material, the results of associates are
modified to conform to the Group’s accounting policies.
(h) Interest in joint arrangements
A joint arrangement is a contractual arrangement whereby the
Group and other parties undertake an economic activity where
the strategic financial and operating policy decisions relating to
the activities of the joint arrangement require the unanimous
consent of the parties sharing control.
Where Group entity undertakes
its activities under joint
arrangements as joint operations, the Group’s share of jointly
controlled assets and any liabilities incurred jointly with other
parties are recognised in its financial statements and classified
according to their nature. Liabilities and expenses incurred
directly in respect of interests in joint operations are accounted
for on the accrual basis. Income from the sale or use of the
Group’s share of the output of joint operations, and its share of
joint arrangements expenses, are recognised when it is probable
that the economic benefits associated with the transactions will
flow to the Group and their amount can be measured reliably.
Joint arrangements that involve the establishment of a separate
entity in which each venturer has an interest are referred to as
joint ventures. The Group reports its interests in joint ventures
using the equity method of accounting whereby an interest in
joint venture is initially recorded at cost and adjusted thereafter
for post-acquisition changes in the Group’s share of net assets
of the joint venture. The consolidated statement of profit and
loss reflects the Group’s share of the results of operations of
the joint venture.
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
When the Group’s share of losses exceeds the carrying value
of the joint venture, the carrying value is reduced to nil and
recognition of further losses is discontinued, except to the
extent that the Group has incurred obligations in respect of
the joint venture.
Unrealised gains on transactions between the Group and its
joint ventures are eliminated to the extent of the Group’s interest
in the joint venture, unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the asset
transferred and where material, the results of joint ventures are
modified to confirm to the Group’s accounting policies.
(i) Property, plant and equipment
An item of property, plant and equipment is recognised as an
asset if it is probable that future economic benefits associated
with the item will flow to the Group and its cost can be
measured reliably. This recognition principle is applied to costs
incurred initially to acquire an item of property, plant and
equipment and also to costs incurred subsequently to add to,
replace part of, or service it. All other repair and maintenance
costs,
in the
including regular servicing, are recognised
consolidated statement of profit and loss as incurred. When a
replacement occurs, the carrying value of the replaced part is
de-recognised. Where an item of property, plant and equipment
comprises major components having different useful lives,
these components are accounted for as separate items.
Property, plant and equipment is stated at cost or deemed cost
applied on transition to Ind AS, less accumulated depreciation
and impairment. Cost includes all direct costs and expenditures
incurred to bring the asset to its working condition and location
for its intended use. Trial run expenses (net of revenue) are
capitalised. Borrowing costs incurred during the period of
construction is capitalised as part of cost of qualifying asset.
The gain or loss arising on disposal of an item of property, plant
and equipment is determined as the difference between sale
proceeds and carrying value of such item, and is recognised in
the consolidated statement of profit and loss.
(j) Exploration for and evaluation of mineral resources
Expenditures associated with search for specific mineral
resources are recognised as exploration and evaluation assets.
The following expenditure comprises the cost of exploration
and evaluation assets:
• obtaining of the rights to explore and evaluate mineral
reserves and resources including costs directly related to
this acquisition
• researching and analysing existing exploration data
• conducting
geological
studies,
exploratory
drilling and sampling
• examining and testing extraction and treatment methods
• compiling pre-feasibility and feasibility studies
• activities in relation to evaluating the technical feasibility and
commercial viability of extracting a mineral resource.
Administration and other overhead costs are charged to the cost
of exploration and evaluation assets only if directly related to an
exploration and evaluation project.
If a project does not prove viable, all irrecoverable exploration
and evaluation expenditure associated with the project net
of any related impairment allowances is written off to the
consolidated statement of profit and loss.
The Group measures its exploration and evaluation assets at cost
and classifies as property, plant and equipment or intangible
assets according to the nature of the assets acquired and applies
the classification consistently. To the extent that a tangible asset
is consumed in developing an intangible asset, the amount
reflecting that consumption is capitalised as a part of the cost of
the intangible asset.
As the asset is not available for use, it is not depreciated.
All exploration and evaluation assets are monitored for
indications of impairment. An exploration and evaluation asset
is no longer classified as such when the technical feasibility
and commercial viability of extracting a mineral resource are
demonstrable and the development of the deposit is sanctioned
by the management. The carrying value of such exploration and
evaluation asset is reclassified to mining assets.
(k) Development expenditure for mineral reserves
and
other
is the establishment of access to mineral
Development
reserves
commercial
production. Development activities often continue during
production and include:
• sinking shafts and underground drifts
(often called
preparations
for
mine development)
• making permanent excavations
• developing passageways and rooms or galleries
• building roads and tunnels and
• advance removal of overburden and waste rock.
317
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
Development (or construction) also includes the installation
of infrastructure (e.g., roads, utilities and housing), machinery,
equipment and facilities.
Development expenditure is capitalised and presented as part of
mining assets. No depreciation is charged on the development
expenditure before the start of commercial production.
(l) Provision for restoration and environmental costs
The Group has liabilities related to restoration of soil and other
related works, which are due upon the closure of certain of
its mining sites.
local
taking
into account applicable
Such liabilities are estimated case-by-case based on available
information,
legal
requirements. The estimation is made using existing technology,
at current prices, and discounted using an appropriate discount
rate where the effect of time value of money is material.
Future restoration and environmental costs, discounted to
net present value, are capitalised and the corresponding
restoration liability is raised as soon as the obligation to incur
such costs arises. Future restoration and environmental costs are
capitalised in property, plant and equipment or mining assets
as appropriate and are depreciated over the life of the related
asset. The effect of time value of money on the restoration and
environmental costs liability is recognised in the consolidated
statement of profit and loss.
(m) Intangible assets
Patents, trademarks and software costs are included in the
consolidated balance sheet as intangible assets when it is
probable that associated future economic benefits would flow
to the Group. In this case they are measured initially at purchase
cost and then amortised on a straight-line basis over their
estimated useful lives. All other costs on patents, trademarks
and software are expensed in the consolidated statement of
profit and loss as and when incurred.
Expenditure on research activities is recognised as an expense
in the period in which it is incurred. Costs incurred on individual
development projects are recognised as intangible assets from
the date when all of the following conditions are met:
(i)
completion of the development is technically feasible.
(ii)
it is the intention to complete the intangible asset and
use or sell it.
(iii) ability to use or sell the intangible asset.
(iv)
it is clear that the intangible asset will generate probable
future economic benefits.
318
(v)
adequate technical, semi-financial and other resources to
complete the development and to use or sell the intangible
asset are available.
(vi)
is possible to reliably measure the expenditure
it
attributable to the intangible asset during its development.
Recognition of costs as an asset is ceased when the project is
complete and available for its intended use, or if these criteria
are no longer applicable.
Where development activities do not meet the conditions for
recognition as an asset, any associated expenditure is treated as
an expense in the period in which it is incurred.
Intangible assets acquired in a business combination are
identified and recognised separately from goodwill where they
satisfy the definition of an intangible asset and their fair values
can be measured reliably. The cost of such intangible assets is
their fair value at the acquisition date.
Subsequent to initial recognition, intangible assets with definite
useful lives acquired in a business combination are reported
at cost or deemed cost applied on transition to Ind AS, less
accumulated amortisation and accumulated impairment losses.
(n)
Depreciation and amortisation of property, plant and
equipment and intangible assets
Depreciation or amortisation is provided so as to write off, on
a straight-line basis, the cost/deemed cost of property, plant
and equipment and intangible assets, including those held
under finance leases to their residual value. These charges
are commenced from the dates the assets are available for
their intended use and are spread over their estimated useful
economic lives or, in the case of leased assets, over the lease
period, if shorter. The estimated useful lives of assets, residual
values and depreciation method are reviewed regularly and,
when necessary, revised.
Depreciation on assets under construction commences only
when the assets are ready for their intended use.
The estimated useful lives for the main categories of property,
plant and equipment and other intangible assets are:
Freehold and long leasehold buildings
Roads
Plant and machinery
Furniture, fixture and office equipments
Vehicles and aircraft
Railway sidings
Estimated useful
life (years)
upto 60 years*
5 years
upto 40 years*
3 to 25 years
4 to 20 years
upto 35 years*
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
Assets covered under the Electricity Act (life
as prescribed under the Electricity Act)
Patents and trademarks
Product and process development costs
Computer software
Other assets
Estimated useful
life (years)
3 to 34 years
4 years
5 years
upto 8 years
1 to 15 years
Mining assets are amortised over the useful life of the mine or
lease period whichever is lower.
Major furnace relining expenses are depreciated over a period of
10 years (average expected life).
Freehold land is not depreciated.
* For these class of assets, based on internal assessment and
independent technical evaluation carried out by chartered
engineers, the Company and some of its subsidiaries believe
that the useful lives as given above best represent the period
over which such Company expects to use these assets.
Hence the useful lives for these assets are different from the
useful lives as prescribed under Part C of Schedule II of the
Companies Act, 2013.
(o) Impairment
At each balance sheet date, the Group reviews the carrying
value of its property, plant and equipment and intangible
assets to determine whether there is any indication that the
carrying value of those assets may not be recoverable through
continuing use. If any such indication exists, the recoverable
amount of the asset is reviewed in order to determine the extent
of impairment loss, if any. Where the asset does not generate
cash flows that are independent from other assets, the Group
estimates the recoverable amount of the cash generating unit
to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell
and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
An impairment loss is recognised in the consolidated statement
of profit and loss as and when the carrying value of an asset
exceeds its recoverable amount.
carrying value does not exceed the carrying value that would
have been determined had no impairment loss been recognised
for the asset (or cash generating unit) in prior years. A reversal of
an impairment loss is recognised in the consolidated statement
of profit and loss immediately.
(p) Leases
The Group determines whether an arrangement contains a
lease by assessing whether the fulfilment of a transaction is
dependent on the use of a specific asset and whether the
transaction conveys the right to use that asset to the Group
in return for payment. Where this occurs, the arrangement
is deemed to include a lease and is accounted for either as a
finance or an operating lease.
Leases are classified as finance leases where the terms of the
lease transfer substantially all the risks and rewards of ownership
to the lessee. All other leases are classified as operating leases.
The Group as lessee
(i)
Operating lease – Rentals payable under operating leases are
charged to the consolidated statement of profit and loss on
a straight-line basis over the term of the relevant lease unless
another systematic basis is more representative of the time
pattern in which economic benefits from the leased assets
are consumed. Contingent rentals arising under operating
leases are recognised as an expense in the period in which
they are incurred.
In the event that lease incentives are received to enter into
operating leases, such incentives are recognised as a liability.
The aggregate benefit of incentives is recognised as a reduction
of rental expense on a straight-line basis, except where another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
(ii)
lease – Finance
leases are capitalised at the
Finance
commencement of lease, at the lower of the fair value of the
assets or the present value of the minimum lease payments.
The corresponding liability to the lessor is included in the
consolidated balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and
reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability.
Finance charges are recognised in the consolidated statement
of profit and loss over the period of the lease.
The Group as lessor
Where an impairment loss subsequently reverses, the carrying
value of the asset (or cash generating unit) is increased to the
revised estimate of its recoverable amount, so that the increased
(i)
Operating lease – Rental income from operating leases is
recognised in the consolidated statement of profit and loss on
a straight-line basis over the term of the relevant lease unless
319
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
another systematic basis is more representative of the time
pattern in which economic benefits from the leased asset is
diminished. Initial direct costs incurred in negotiating and
arranging an operating lease are added to the carrying value
of the leased asset and recognised on a straight-line basis over
the lease term.
(ii)
Finance lease – When assets are leased out under a finance lease,
the present value of minimum lease payments is recognised as a
receivable. The difference between the gross receivable and the
present value of receivable is recognised as unearned finance
income. Lease income is recognised over the term of the lease
using the net investment method before tax, which reflects a
constant periodic rate of return.
(q) Stripping costs
The Group separates two different types of stripping costs that
are incurred in surface mining activity:
• developmental stripping costs and
• production stripping costs
Developmental stripping costs which are incurred in order
to obtain access to quantities of mineral reserves that will be
mined in future periods are capitalised as part of mining assets.
Capitalisation of developmental stripping costs ends when the
commercial production of the mineral reserves begins.
A mine can operate several open pits that are regarded
as separate operations for the purpose of mine planning
and production. In this case, stripping costs are accounted
for separately, by reference to the ore extracted from each
separate pit. If, however, the pits are highly integrated for the
purpose of mine planning and production, stripping costs are
aggregated too.
The determination of whether multiple pit mines are considered
separate or integrated operations depends on each mines
specific circumstances. The following factors normally point
towards the stripping costs for the individual pits being
accounted for separately:
• mining of the second and subsequent pits is conducted
consecutively with that of the first pit, rather than concurrently
• separate
investment decisions are made
to develop
each pit, rather than a single investment decision being
made at the outset
• the pits are operated as separate units in terms of mine
planning and the sequencing of overburden and ore mining,
rather than as an integrated unit
• expenditure for additional infrastructure to support the
second and subsequent pits are relatively large
• the pits extract ore from separate and distinct ore bodies,
rather than from a single ore body.
The relative importance of each factor is considered by the
management to determine whether, the stripping costs should
be attributed to the individual pit or to the combined output
from the several pits.
Production stripping costs are incurred to extract the ore in the
form of inventories and/or to improve access to an additional
component of an ore body or deeper levels of material.
Production stripping costs are accounted for as inventories
to the extent the benefit from production stripping activity is
realised in the form of inventories.
The Group recognises a stripping activity asset in the production
phase if, and only if, all of the following are met:
• it is probable that the future economic benefit (improved
access to the ore body) associated with the stripping activity
will flow to the Group
• the Group can identify the component of the ore body for
which access has been improved and
• the costs relating to the improved access to that component
can be measured reliably.
Such costs are presented within mining assets. After initial
recognition, stripping activity assets are carried at cost/deemed
cost applied on transition to
less accumulated
amortisation and impairment. The expected useful life of the
identified component of the ore body is used to depreciate or
amortise the stripping asset.
Ind AS,
(r) Financial instruments
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions of the
instrument. Financial assets and liabilities are initially measured
at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the
fair value measured on initial recognition of financial asset or
financial liability. The transaction costs directly attributable to
the acquisition of financial assets and financial liabilities at fair
320
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
value through profit and loss are immediately recognised in the
consolidated statement of profit and loss.
Effective interest method
The effective interest method is a method of calculating the
amortised cost of a financial instrument and of allocating interest
income or expense over the relevant period. The effective
interest rate is the rate that exactly discounts future cash
receipts or payments through the expected life of the financial
instrument, or where appropriate, a shorter period.
(I) Financial assets
Cash and bank balances
Cash and bank balances consist of:
(i)
Cash and cash equivalents - which include cash on hand,
deposits held at call with banks and other short-term
deposits which are readily convertible
into known
amounts of cash, are subject to an insignificant risk of
change in value and have original maturities of less than
one year. These balances with banks are unrestricted for
withdrawal and usage.
(ii)
Other bank balances - which include balances and deposits
with banks that are restricted for withdrawal and usage.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if
these financial assets are held within a business model whose
objective is to hold these assets in order to collect contractual
cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets measured at fair value
Financial assets are measured at fair value through other
comprehensive income if these financial assets are held within
a business model whose objective is to hold these assets in
order to collect contractual cash flows or to sell these financial
assets and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
The Group in respect of certain equity investments (other than in
associates and joint ventures) which are not held for trading has
made an irrevocable election to present in other comprehensive
income subsequent changes in the fair value of such equity
instruments. Such an election is made by the Group on an
instrument by instrument basis at the time of initial recognition
of such equity investments. These investments are held for
medium or long-term strategic purpose. The Group has chosen
to designate these investments in equity instruments as fair
value through other comprehensive income as the management
believes this provides a more meaningful presentation for
medium or long-term strategic investments, than reflecting
changes in fair value immediately in the consolidated statement
of profit and loss.
Financial assets not measured at amortised cost or at fair value
through other comprehensive income are carried at fair value
through profit and loss.
Interest income
Interest income is accrued on a time proportion basis, by
reference to the principal outstanding and effective interest
rate applicable.
Dividend income
Dividend income from investments is recognised when the right
to receive payment has been established.
Impairment of financial assets
Loss allowance for expected credit losses is recognised for
financial assets measured at amortised cost and fair value
through other comprehensive income.
The Group recognises lifetime expected credit losses for all trade
receivables that do not constitute a financing transaction.
For financial assets (apart from trade receivables that do not
constitute a financing transaction) whose credit risk has not
significantly increased since initial recognition, loss allowance
equal to twelve months expected credit losses is recognised.
Loss allowance equal to the lifetime expected credit losses is
recognised if the credit risk on the financial asset has significantly
increased since initial recognition.
De-recognition of financial assets
The Group de-recognises a financial asset only when the
contractual rights to the cash flows from the asset expire, or
it transfers the financial asset and substantially all risks and
rewards of ownership of the asset to another entity.
If the Group neither transfers nor retains substantially all the
risks and rewards of ownership and continues to control the
transferred asset, the Group recognises its retained interest in the
assets and an associated liability for amounts it may have to pay.
If the Group retains substantially all the risks and rewards of
ownership of a transferred financial asset, the Group continues
321
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
to recognise the financial asset and also recognises a borrowing
for the proceeds received.
(II) Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group
are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial
liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual
interest in the assets of the Group after deducting all of its
liabilities. Equity instruments are recorded at the proceeds
received, net of direct issue costs.
Financial liabilities
Trade and other payables are initially measured at fair value,
net of transaction costs, and are subsequently measured at
amortised cost, using the effective interest rate method where
the time value of money is significant.
Interest bearing bank loans, overdrafts and issued debt are
initially measured at fair value and are subsequently measured
at amortised cost using the effective interest rate method.
Any difference between the proceeds (net of transaction costs)
and the settlement or redemption of borrowings is recognised
over the term of the borrowings in the consolidated statement
of profit and loss.
De-recognition of financial liabilities
The Group derecognises financial liabilities when, and only when,
the Group’s obligations are discharged, cancelled or they expire.
Derivative financial instruments and hedge accounting
In the ordinary course of business, the Group uses certain
derivative financial instruments to reduce business risks which
arise from its exposure to foreign exchange, base metal prices
and interest rate fluctuations. The instruments are confined
principally to forward foreign exchange contracts, forward rate
agreements, cross currency swaps, interest rate swaps and collar.
The instruments are employed as hedges of transactions included
in the financial statements or for highly probable forecast
transactions/firm contractual commitments. These derivatives
contracts do not generally extend beyond six months, except for
certain currency swaps and interest rate derivatives.
322
Derivatives are initially accounted for and measured at fair value
from the date the derivative contract is entered into and are
subsequently re-measured to their fair value at the end of each
reporting period.
The Group adopts hedge accounting for forward, interest rate
and commodity contracts wherever possible. At the inception
of each hedge, there is a formal, documented designation of
the hedging relationship. This documentation includes, inter
alia, items such as identification of the hedged item transaction
and nature of the risk being hedged. At inception, each hedge
is expected to be highly effective in achieving an offset of
changes in fair value or cash flows attributable to the hedged
risk. The effectiveness of hedge instruments to reduce the
risk associated with the exposure being hedged is assessed
and measured at the inception and on an ongoing basis.
The ineffective portion of designated hedges is recognised
immediately in the consolidated statement of profit and loss.
When hedge accounting is applied:
• for fair value hedges of recognised assets and liabilities,
changes in fair value of the hedged assets and liabilities
attributable to the risk being hedged, are recognised in the
consolidated statement of profit and loss and compensate for
the effective portion of symmetrical changes in the fair value
of the derivatives.
• for cash flow hedges, the effective portion of the change
in the fair value of the derivative is recognised directly in
other comprehensive income and the ineffective portion is
recognised in the consolidated statement of profit and loss.
If the cash flow hedge of a firm commitment or forecasted
transaction results in the recognition of a non-financial asset
or liability, then, at the time the asset or liability is recognised,
the associated gains or losses on the derivative that had
previously been recognised in equity are included in the
initial measurement of the asset or liability. For hedges that
do not result in the recognition of a non-financial asset or
a liability, amounts deferred in equity are recognised in the
consolidated statement of profit and loss in the same period
in which the hedged item affects the consolidated statement
of profit and loss.
In cases where hedge accounting is not applied, changes in
the fair value of derivatives are recognised in the consolidated
statement of profit and loss as and when they arise.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated, or exercised, or no longer
qualifies for hedge accounting. At that time, any cumulative
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
gain or loss on the hedging instrument recognised in equity
is retained in equity until the forecasted transaction occurs.
If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in equity is transferred to the
consolidated statement of profit and loss for the period.
(s) Employee benefits
Defined contribution plans
Contributions under defined contribution plans are recognised
as an expense for the period in which the employee has
rendered the service. Payments made to state managed
retirement benefit schemes are dealt with as payments to
defined contribution schemes where the Group’s obligations
under the schemes are equivalent to those arising in a defined
contribution retirement benefit scheme.
Defined benefit plans
For defined benefit retirement schemes, the cost of providing
benefits is determined using the Projected Unit Credit Method,
with actuarial valuation being carried out at each year-end
balance sheet date. Re-measurement gains and losses of the net
defined benefit liability/(asset) are recognised immediately in
other comprehensive income. The service cost and net interest
on the net defined benefit liability/(asset) are recognised as an
expense within employee costs.
Past service cost is recognised as an expense when the plan
amendment or curtailment occurs or when any related
restructuring costs or termination benefits are recognised,
whichever is earlier.
retirement benefit obligations
The
the
consolidated balance sheet represents the present value of
the defined benefit obligations as reduced by the fair value
of plan assets.
recognised
in
Compensated absences
Compensated absences which are not expected to occur
within twelve months after the end of the period in which the
employee renders the related service are recognised based on
actuarial valuation at the present value of the obligations as on
the reporting date.
(t)
Inventories
Inventories are stated at the lower of cost and net realisable
value. Cost is ascertained on a weighted average basis.
Costs comprise direct materials and, where applicable, direct
labour costs and those overheads that have been incurred in
bringing the inventories to their present location and condition.
Net realisable value is the price at which the inventories can
be realised in the normal course of business after allowing for
the cost of conversion from their existing state to a finished
condition and for the cost of marketing, selling and distribution.
Provisions are made to cover slow-moving and obsolete items
based on historical experience of utilisation on a product
category basis, which involves individual businesses considering
their product lines and market conditions.
(u) Provisions
Provisions are recognised in the consolidated balance sheet when
the Group has a present obligation (legal or constructive) as a
result of a past event, which is expected to result in an outflow of
resources embodying economic benefits which can be reliably
estimated. Each provision is based on the best estimate of the
expenditure required to settle the present obligation at the
balance sheet date. Where the time value of money is material,
provisions are measured on a discounted basis.
Constructive obligation is an obligation that derives from an
entity’s actions where:
(i)
by an established pattern of past practice, published
policies or a sufficiently specific current statement, the
entity has indicated to other parties that it will accept
certain responsibilities and
(ii)
as a result, the entity has created a valid expectation on
the part of those other parties that it will discharge those
responsibilities.
(v) Onerous contracts
A provision for onerous contracts is recognised when the
expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under
the contract. The provision is measured at the present value of
the lower of the expected cost of terminating the contract and
the expected net cost of continuing with the contract. Before a
provision is established, the Group recognises any impairment
loss on the assets associated with that contract.
(w) Government grants
Government grants are recognised at its fair value, where
there is a reasonable assurance that such grants will be
the conditions attached
received and compliance with
therewith have been met.
Government grants related to expenditure on property, plant
and equipment are credited to the consolidated statement of
profit and loss over the useful lives of qualifying assets or other
323
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
systematic basis representative of the pattern of fulfilment of
obligations associated with the grant received. Grants received
less amounts credited to the consolidated statement of profit
and loss at the reporting date are included in the consolidated
balance sheet as deferred income.
(x)
Non-current assets held for sale and discontinued
operations
Non-current assets and disposal groups classified as held for sale
are measured at the lower of their carrying value and fair value
less costs to sell.
Assets and disposal groups are classified as held for sale if their
carrying value will be recovered through a sale transaction
rather than through continuing use. This condition is only met
when the sale is highly probable and the asset, or disposal
group, is available for immediate sale in its present condition
and is marketed for sale at a price that is reasonable in relation
to its current fair value. The Group must also be committed to
the sale, which should be expected to qualify for recognition as
a completed sale within one year from the date of classification.
Where a disposal group represents a separate major line of
business or geographical area of operations, or is part of a
single coordinated plan to dispose of a separate major line of
business or geographical area of operations, then it is treated
as a discontinued operation. The post-tax profit or loss of
the discontinued operation together with the gain or loss
recognised on its disposal are disclosed as a single amount in the
consolidated statement of profit and loss, with all prior periods
being presented on this basis.
(y) Income taxes
Tax expense for the year comprises of current and deferred
tax. The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
consolidated statement of profit and loss because it excludes
items of income or expense that are taxable or deductible in
other years and it further excludes items that are never taxable
or deductible. The Group’s liability for current tax is calculated
using tax rates and tax laws that have been enacted or
substantively enacted in countries where the Company and its
subsidiaries operate by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying value of assets and liabilities
in the financial statements and the corresponding tax bases
324
used in the computation of taxable profit, and is accounted for
using the balance sheet liability method. Deferred tax liabilities
are generally recognised for all taxable temporary differences.
In contrast, deferred tax assets are only recognised to the extent
that it is probable that future taxable profits will be available
against which the temporary differences can be utilised.
Deferred tax liabilities are recognised on taxable temporary
differences arising on investments in subsidiaries, joint ventures
and associates, except where the Group is able to control the
reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying value of deferred tax assets is reviewed at the end
of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available
to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised based on the tax rates and tax laws that have been
enacted or substantially enacted by the end of the reporting
period. The measurement of deferred tax liabilities and assets
reflects the tax consequences that would follow from the
manner in which the Group expects, at the end of the reporting
period, to recover or settle the carrying value of its assets
and liabilities.
Deferred tax assets and liabilities are offset to the extent that
they relate to taxes levied by the same tax authority and they
are in the same taxable entity, or a Group of taxable entities
where the tax losses of one entity are used to offset the taxable
profits of another and there are legally enforceable rights
to set off current tax assets and current tax liabilities within
that jurisdiction.
Current and deferred tax are recognised as an expense or
income in the consolidated statement of profit and loss, except
when they relate to items credited or debited either in other
comprehensive income or directly in equity, in which case
the tax is also recognised in other comprehensive income or
directly in equity.
Deferred tax assets include Minimum Alternate Tax (MAT) paid
in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off
against future income tax liability. MAT is recognised as deferred
tax assets in the consolidated balance sheet when the asset can
be measured reliably and it is probable that the future economic
benefit associated with the asset will be realised.
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
2. Significant accounting policies (Contd.)
(z) Revenue
The Group manufactures and sells a range of steel and
other products.
framework
Effective April 1, 2018, the Group has applied Ind AS 115 which
establishes a comprehensive
for determining
whether, how much and when revenue is to be recognised.
Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11
Construction Contracts. The Group has adopted Ind AS 115
using the retrospective effect method. The adoption of the new
standard did not have a material impact on the Group.
Sale of products
Revenue from sale of products is recognised when control of the
products has transferred, being when the products are delivered
to the customer. Delivery occurs when the products have been
shipped or delivered to the specific location as the case may be,
the risk of loss has been transferred, and either the customer has
accepted the products in accordance with the sales contract, or
the Group has objective evidence that all criteria for acceptance
have been satisfied. Sale of products include related ancillary
services, if any.
Goods are often sold with volume discounts based on aggregate
sales over a 12 months period. Revenue from these sales is
recognised based on the price specified in the contract, net of
the estimated volume discounts. Accumulated experience is
used to estimate and provide for the discounts, using the most
likely method, and revenue is only recognised to the extent that
it is highly probable that a significant reversal will not occur.
A liability is recognised for expected volume discounts payable
to customers in relation to sales made until the end of the
reporting period. No element of financing is deemed present
as the sales are generally made with a credit term of 30-90
days, which is consistent with market practice. Any obligation
to provide a refund is recognised as a provision. A receivable is
recognised when the goods are delivered as this is the point in
time that the consideration is unconditional because only the
passage of time is required before the payment is due.
The Group does not have any contracts where the period
between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. As a
consequence, the Group does not adjust any of the transaction
prices for the time value of money.
Sale of power
Revenue from sale of power is recognised when the services
are provided to the customer based on approved tariff rates
established by the respective regulatory authorities. The Group
doesn’t recognise revenue and an asset for cost incurred in the
past that will be recovered.
(aa) Foreign currency transactions and translation
The consolidated financial statements of the Group are
presented in (‘`'), which is the functional currency of the
Company and the presentation currency for the consolidated
financial statements.
In preparing the consolidated financial statements, transactions
in currencies other than the entity’s functional currency are
recorded at the rates of exchange prevailing on the date of
the transaction. At the end of each reporting period, monetary
items denominated in foreign currencies are re-translated
at the rates prevailing at the end of the reporting period.
Non-monetary items carried at fair value that are denominated in
foreign currencies are re-translated at the rates prevailing on the
date when the fair value was determined. Non-monetary items
that are measured in terms of historical cost in a foreign currency
are not translated.
Exchange differences arising on translation of long-term foreign
currency monetary items recognised in the consolidated financial
statements before the beginning of the first Ind AS financial
reporting period in respect of which the Group has elected to
recognise such exchange differences in equity or as part of cost
of assets as allowed under Ind As 101-“First-time adoption of
Indian Accounting Standards” are recognised directly in equity
or added/deducted to/from the cost of assets as the case may
be. Such exchange differences recognised in equity or as part
of cost of assets is recognised in the consolidated statement of
profit and loss on a systematic basis.
Exchange differences arising on the re-translation or settlement
of other monetary items are included in the consolidated
statement of profit and loss for the period.
For the purpose of presenting the consolidated financial
statements, the assets and liabilities of the Company’s foreign
subsidiaries, associates and joint ventures are expressed in
` using exchange rates prevailing at the end of the reporting
period. Income and expense items are translated at the
average exchange rates for the period. Exchange differences
arising, if any, are recognised in other comprehensive income
and accumulated in a separate component of equity. On the
disposal of a foreign operation, all of the accumulated exchange
differences in respect of that operation attributable to the
Company are reclassified to the consolidated statement of
profit and loss.
325
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
2. Significant accounting policies (Contd.)
(ad) Recent accounting pronouncements
Goodwill and fair value adjustments arising on the acquisition
of a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
(ab) Borrowing costs
Borrowings costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets
that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for
the intended use or sale.
Investment income earned on temporary investment of specific
borrowings pending their expenditure on qualifying assets is
recognised in the consolidated statement of profit and loss.
Discounts or premiums and expenses on the issue of debt
securities are amortised over the term of the related securities
and included within borrowing costs. Premiums payable on
early redemptions of debt securities, in lieu of future finance
costs, are recognised as borrowing costs.
All other borrowing costs are recognised as expenses in the
period in which it is incurred.
(ac) Earnings per share
Basic earnings per share
is computed by dividing the
consolidated profit or loss for the year attributable to equity
holders by the weighted average number of shares outstanding
during the year. Partly paid up shares are included as fully paid
equivalents according to the fraction paid up.
Diluted earnings per share is computed using the weighted
average number of shares and dilutive potential shares except
where the result would be anti-dilutive.
Ministry of Corporate Affairs (“MCA”) has notified the following
new amendments to Ind AS which the Group has not applied
as they are effective for annual periods beginning on or
after April 1, 2019.
Ind AS 116 – “Leases”
Ind AS 116 ‘Leases’ eliminates the classification of leases as either
finance leases or operating leases. All leases are required to be
reported on an entity’s balance sheet as assets and liabilities.
Leases are capitalised by recognising the present value of the
lease payments and showing them either as right of use of the
leased assets or together with property, plant and equipment.
If lease payments are made over time a financial liability
representing the future obligation would be recognised.
Appendix C, ‘Uncertainty over Income Tax Treatments’, to
Ind AS 12, ‘Income Taxes’
This Appendix clarifies how the recognition and measurement
requirements of Ind AS 12 'Income Taxes', are applied while
performing the determination of taxable profit or loss, tax bases,
unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12.
According to the Appendix, companies need to determine the
probability of the relevant tax authority accepting each tax
treatment, or group of tax treatments, that the companies have
used or plan to use in their income tax filing which has to be
considered to compute the most likely amount or the expected
value of the tax treatment when determining taxable profit or
loss, tax bases, unused tax losses, unused tax credits and tax rates.
The Group is in the process of evaluating the impact of
adoption of above pronouncements on
its consolidated
financial statements.
326
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
3. Property, plant and equipment
[Item No. I(a), Page 306]
Cost/deemed cost as at April 1, 2018
Addition relating to acquisitions
Additions
Disposals
Disposal of group undertakings
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Cost/deemed cost as at March 31, 2019
Accumulated impairment as at April 1, 2018
Charge for the year
Disposals
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Accumulated impairment as at March 31, 2019
Accumulated depreciation as at April 1, 2018
Charge for the year
Disposals
Disposal of group undertakings
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Accumulated depreciation as at March 31, 2019
Total accumulated depreciation and
impairment as at March 31, 2019
Net carrying value as at April 1, 2018
Net carrying value as at March 31, 2019
Land
including
roads
Buildings
Plant and
machinery
Vehicles
Leased
FFOE and
vehicles
Railway
sidings
Furniture,
fixtures
and office
equipments
(FFOE)
(` crore)
Total
9,350.84
882.99
(115.15)
-
(329.39)
(29.50)
(155.01)
16,955.23
411.09
156.89
(54.42)
-
(261.75)
(9.78)
(70.91)
12,147.82 1,04,889.43
19,608.03
6,839.39
(760.65)
(124.17)
(1,322.04)
(446.10)
(1,248.77)
17,126.35 21,752.60 1,27,435.12
2,302.85
126.84
(20.92)
153.84
(291.28)
(40.08)
2,231.25
37,222.31
6,205.14
(641.19)
(28.06)
(575.92)
(177.61)
(814.38)
5,040.20 41,190.29
5,262.04 43,421.54
322.29
-
(7.56)
-
(9.64)
(9.12)
295.97
505.09
118.49
-
-
(14.95)
(1.73)
3.41
610.31
906.28
283.11
0.55
(33.58)
-
(17.81)
(10.43)
221.84
4,607.35
735.67
(53.86)
-
(139.88)
(7.55)
(101.53)
667.95
35.70
153.45
(22.34)
(3.58)
(137.61)
31.51
14.38
739.46
4.81
19.97
(1.14)
(2.99)
(0.17)
0.12
20.60
419.27
114.50
(22.46)
(2.31)
(97.54)
31.61
12.88
455.95
476.55
342.70
8.84
93.50
(21.89)
(4.35)
(17.18)
(3.52)
0.28
398.38
0.48
-
0.93
(1.23)
(0.07)
(0.04)
0.07
181.42
37.35
(20.04)
(2.25)
(10.74)
(0.36)
0.20
185.58
185.65
97.44
63.62
(20.06)
-
-
-
10.74
1,397.23 1,36,401.14
0.78
29,511.94
-
8,193.31
3.47
(994.51)
-
(132.10)
-
(2,071.69)
(3.72)
(456.95)
0.44
0.05
(1,449.24)
1.02 1,548.97 1,69,001.90
2,931.12
147.36
(62.27)
149.62
(318.97)
(59.88)
2,786.98
43,147.24
7,280.08
(737.55)
(32.62)
(839.14)
(155.20)
(898.86)
280.90 47,763.95
298.15 50,550.93
17.58
-
-
-
-
(0.33)
17.25
211.44
68.91
-
-
-
-
0.55
-
-
-
-
-
-
-
0.36
0.02
-
-
(0.11)
0.44
0.01
0.72
0.72
65,364.27
7,257.36
16,127.85
16,220.07 16,490.56 84,013.58
243.87
262.91
160.80
212.73
1,168.21
90,322.78
0.42
0.30 1,250.82 1,18,450.97
327
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
3. Property, plant and equipment (Contd.)
[Item No. I(a), Page 306]
Land
including
roads
Buildings
Plant and
machinery
Vehicles
Leased
FFOE and
vehicles
Railway
sidings
Furniture,
fixtures
and office
equipments
(FFOE)
(` crore)
Total
Cost/deemed cost as at April 1, 2017
Addition relating to acquisitions
Additions
Disposals
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Cost/deemed cost as at March 31, 2018
Accumulated impairment as at April 1, 2017
Charge for the year
Disposals
Other re-classifications
Exchange differences on consolidation
Accumulated impairment as at March 31, 2018
Accumulated depreciation as at April 1, 2017
Charge for the year
Disposals
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Accumulated depreciation as at March 31, 2018
Total accumulated depreciation and
impairment as at March 31, 2018
7.90
65.67
(33.48)
-
-
369.71
93,461.77
16,545.43 11,141.07
882.70
15.53
5,917.97
334.24
(555.88)
(60.58)
(0.67)
-
44.16
-
5,139.38
717.56
16,955.23 12,147.82 1,04,889.43
1,980.46
249.73
91.36
23.99
(66.53)
(30.10)
27.34
-
39.49
270.22
2,302.85
283.11
29,245.93
3,698.14
4,983.82
444.28
(392.05)
(12.84)
(0.10)
-
(2.95)
2.86
3,387.66
474.91
505.09 4,607.35 37,222.31
827.38 4,890.46 39,525.16
273.45
7.06
-
-
41.78
322.29
397.54
106.13
(0.02)
-
-
1.44
543.43
0.91
110.46
(10.52)
-
-
23.67
667.95
3.67
0.57
(0.03)
-
0.60
4.81
332.58
88.70
(10.30)
-
0.09
8.20
419.27
424.08
351.68
0.41
28.07
(39.35)
-
-
1.89
342.70
0.26
0.12
-
-
0.10
0.48
170.85
32.35
(23.38)
-
0.82
0.78
181.42
181.90
0.69 1,349.53 1,23,393.60
907.45
-
-
6,489.35
32.94
-
(699.81)
-
-
(0.67)
-
-
44.16
-
-
0.09
6,267.06
14.76
0.78 1,397.23 1,36,401.14
2,523.00
123.10
(96.66)
27.34
354.34
2,931.12
33,990.01
5,712.90
(438.59)
(0.10)
0.82
3,882.20
43,147.24
46,078.36
15.43
-
-
-
2.15
17.58
144.68
57.60
-
-
-
9.16
211.44
229.02
-
-
-
-
-
-
0.29
0.02
-
-
-
0.05
0.36
0.36
Net carrying value as at April 1, 2017
Net carrying value as at March 31, 2018
15,874.44
62,235.38
7,193.20
16,127.85 7,257.36 65,364.27
207.18
243.87
180.57
160.80
0.40 1,189.42
86,880.59
0.42 1,168.21 90,322.78
(i) Net carrying value of land including roads comprises of:
Leasehold land
Cost/deemed cost
Accumulated depreciation and impairment
Freehold land including roads
328
(` crore)
As at
March 31, 2019
As at
March 31, 2018
25.16
0.53
24.63
30.78
1.39
29.39
16,195.44
16,098.46
16,220.07
16,127.85
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
3. Property, plant and equipment (Contd.)
[Item No. I(a), Page 306]
(ii) Net carrying value of buildings comprises of:
Leasehold buildings
Cost/deemed cost
Accumulated depreciation and impairment
Freehold buildings
(iii) Net carrying value of plant and machinery comprises of:
Assets held under finance leases
Cost/deemed cost
Accumulated depreciation and impairment
Owned assets
(iv)
Net carrying value of furniture, fixtures and office equipments comprises of:
Furniture and fixtures
Cost/deemed cost
Accumulated depreciation and impairment
Office equipments
Cost/deemed cost
Accumulated depreciation and impairment
(` crore)
As at
March 31, 2019
As at
March 31, 2018
558.88
198.58
360.30
457.70
223.65
234.05
16,130.26
7,023.31
16,490.56
7,257.36
(` crore)
As at
March 31, 2019
As at
March 31, 2018
5,416.13
2,505.72
2,910.41
4,565.81
2,300.73
2,265.08
81,103.17
63,099.19
84,013.58
65,364.27
(` crore)
As at
March 31, 2019
As at
March 31, 2018
216.87
147.65
69.22
522.62
328.93
193.69
262.91
173.14
118.17
54.97
494.81
305.91
188.90
243.87
(v)
`206.01 crore (2017-18: `115.35 crore) of borrowing costs has been capitalised during the year on qualifying assets under construction.
The capitalisation rate ranges between 7.00% to 9.80% (2017-18: 0.20% to 9.00%).
329
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
3. Property, plant and equipment (Contd.)
[Item No. I(a), Page 306]
(vi)
Rupee liability has increased by `108.32 crore (2017-18: `44.16 crore) arising out of retranslation of the value of long-term foreign currency
loans and liabilities for procurement of property, plant and equipment, generally plant and machinery. This increase is adjusted against
the carrying cost of assets and depreciated over their remaining useful life. The depreciation for the current year is higher by `3.57 crore
(2017-18: `1.40 crore) on account of this adjustment.
(vii) During the year, the Group recognised a net impairment charge of `118.08 crore (2017-18: `1,161.93 crore) for property, plant and
equipment including capital work-in-progress. The impairment charge was primarily contained in the Indian and European Operations.
Within the Indian operations, the Group has recognised an impairment charge of `8.54 crore (2017-18: `33.99 crore) in respect
of expenditure incurred at one of its mining sites. The impairment recognised is included within other expenses in the consolidated
statement of profit and loss.
Within the European business, consistent with annual test for impairment of goodwill as at March 31, 2019, property, plant and equipment
(including capital work-in-progress) were also tested for impairment as at that date where indicators of impairment existed. The outcome of
the test indicated that the value in use of certain downstream and distribution businesses against which the property, plant and equipment
(including capital work-in-progress) is included, using a discount rate of 8.20% p.a. (2017-18: 8.20% p.a.) was lower than its carrying value
due to losses generated during the year in those CGU’s and/or forecasting losses in the annual plan. Accordingly, an impairment charge
of `106.68 crore (2017-18: `223.25 crore) was recognised. The impairment recognised is included within other expenses in the
consolidated statement of profit and loss.
During the year ended March 31, 2018, within the overseas mining businesses, volatility in commodity prices triggered an impairment
assessment for mining operations carried out by the Group in Canada. This resulted in an impairment charge of `903.01 crore being
recognised during the year ended March 31, 2018. The recoverable value was based on value in use using cash flow projections for 16
years and a discount rate of 8.00% p.a. The impairment recognised is included within exceptional items in the consolidated statement of
profit and loss.
The balance impairment charge recognised during the year ended March 31, 2019 amounting to `2.86 crore (2017-18: `1.68 crore) relates
to other businesses within the Group.
The Group has conducted sensitivity analysis on the impairment tests of the carrying value in respect of Group’s CGUs and property,
plant and equipment. The management believes that no reasonably possible change in any of the key assumptions used in the value
in use calculations would cause the carrying value of property, plant and equipment in any CGU to materially exceed its value in use,
other than in respect of the remaining property, plant and equipment at the Strip Products UK business which had a carrying value as at
March 31, 2019 of `3,358.46 crore (2017-18: `2,343.69 crore) and at the overseas Canadian mining business which had a carrying value
as at March 31, 2019 of `6,175.14 crore (2017-18: `5,282.61 crore). At the Strips product UK business site, the value in use is dependent
on sustaining the improvement to UK Steel market margins and the implementation of a business transformation plan. For the Canadian
mining operations, the value in use is dependent on improvement in commodity prices and realisation of cost savings in operation.
A reasonably possible change in any of these key assumptions would increase the likelihood of impairment losses in the future.
(viii) The details of property, plant and equipment pledged against borrowings is presented in note 23, page 363.
4. Leases
The Group has taken certain land, buildings, plant and machinery under operating and/or finance leases. The following is a summary of
the future minimum lease rental payments under non-cancellable operating leases and finance leases entered into by the Group.
A. Operating leases:
Significant leasing arrangements include lease of land for periods ranging between 12 to 99 years renewable on mutual consent, lease
of office spaces, assets dedicated for use under long-term arrangements and time charter hire vessels with lease period varying from
2 to 7 years. Payments under long-term arrangements involving use of dedicated assets are allocated between those relating to the
330
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
4. Leases (Contd.)
right to use of assets, executory services and for output based on the underlying contractual terms and conditions. Any change in the
allocation assumptions may have an impact on lease assessment and/or lease classification. Payments linked to changes in inflation index
under lease arrangements have been considered as contingent rent and recognised in the consolidated statement of profit and loss as
and when incurred.
Future minimum lease payments under non-cancellable operating leases are as below:
Not later than one year
Later than one year but not later than five years
Later than five years
(` crore)
As at
March 31, 2019
As at
March 31, 2018
930.01
1,858.83
1,521.88
4,310.72
737.29
1,504.98
1,508.37
3,750.64
During the year ended March 31, 2019, total operating lease rental expense recognised in the consolidated statement of profit and loss was
`1,713.86 crore (2017-18: `790.41 crore) including contingent rent of `49.27 crore (2017-18 `31.20 crore).
B. Finance leases:
Significant leasing arrangements include assets dedicated for use under long-term arrangements. The arrangements cover a substantial part
of the economic life of the underlying asset and generally contain a renewal option on expiry. Payments under long-term arrangements
involving use of dedicated assets are allocated between those relating to the right to use of assets, executory services and for output based on
the underlying contractual terms and conditions. Any change in the allocation assumptions may have an impact on lease assessment and/or
lease classification.
The minimum lease payments and such payments excluding future finance charges in respect of arrangements classified as finance
leases is as below:
Not later than one year
Later than one year but not later than five years
Later than five years
Total future minimum lease commitments
Less: Future finance charges
Present value of minimum lease commitments
Disclosed as:
Borrowings-non-current (refer note 23, page 363)
Other financial liabilities - Current (refer note 24, page 368)
As at March 31, 2019
As at March 31, 2018
(` crore)
Minimum lease
payments
856.43
2,730.94
3,654.66
7,242.03
3,388.73
3,853.30
3,458.84
394.46
3,853.30
Minimum lease
payments less
future finance
charges
394.46
1,436.64
2,022.20
3,853.30
Minimum lease
payments less
future finance
charges
252.31
832.86
2,035.94
3,121.11
Minimum lease
payments
652.42
2,076.10
4,481.29
7,209.81
4,088.70
3,121.11
2,868.80
252.31
3,121.11
331
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
5. Goodwill on consolidation
[Item No. I(c), Page 306]
Cost as at beginning of the year
Addition relating to acquisitions
Disposal of group undertakings
Exchange differences on consolidation
Cost as at end of the year
Impairment as at beginning of the year
Exchange differences on consolidation
Impairment as at end of the year
Net book value as at beginning of the year
Net book value as at end of the year
(` crore)
As at
March 31, 2019
As at
March 31, 2018
5,517.55
-
(28.47)
(100.95)
5,388.13
1,418.10
(26.59)
1,391.51
4,099.45
3,996.62
4,740.30
142.43
-
634.82
5,517.55
1,245.57
172.53
1,418.10
3,494.73
4,099.45
(i)
Disposal of group undertakings relates to Black Ginger 461 (Proprietary) Ltd, a subsidiary of the Group disposed off during the year ended
March 31, 2019. Detailed disclosure in respect of the disposal is provided in note 42, page 395.
Addition to goodwill during the year ended March 31, 2018 relates to the acquisition of the remaining 74% equity stake by the Group in
one of its joint venture “Bhubaneshwar Power Private Limited “. The goodwill relates to synergies from combining the acquiree activities
with those of the Group to meet the growing demand for power.
The carrying value of goodwill predominantly relates to the goodwill that arose on the acquisition of erstwhile Corus Group Plc. and has
been tested against the recoverable amount of Strip Products Mainland Europe cash generating unit (CGU) by the Group. This goodwill
relates to expected synergies from combining Corus’ activities with those of the Group and to assets, which could not be recognised as
separately identifiable intangible assets. The goodwill is tested annually and for impairment more frequently if there are any indications
that the goodwill may be impaired. The recoverable amount of Strip Products Mainland Europe CGU has been determined from a value
in use calculation. The calculation uses cash flow forecasts based on the most recently approved financial budgets and strategic forecasts
which cover a period of three years and future projections taking the analysis out to 15 years. Key assumptions for the value in use
calculation are those regarding expected changes to selling prices and raw material costs, steel demand in European Union, exchange
rates and a discount rate of 8.20% p.a. (March 31, 2018: 8.20% p.a.). Changes in selling prices, raw material costs, exchange rates and EU
steel demand are based on expectations of future changes in the steel market based on external market sources. A Nil (March 31, 2018: Nil)
growth rate is used to extrapolate the cash flow projections beyond the three-year period of the financial budgets to 15 years. The pre-tax
discount rate is derived from the Tata Steel Europe (TSE) weighted average cost of capital (WACC) and the WACCs of its main European
steel competitors. The outcome of the Group’s goodwill impairment test as at March 31, 2019 for the Strip Products Mainland Europe CGU
resulted in no impairment of goodwill (March 31, 2018: Nil).
The management believes that no reasonably possible change in any of the key assumptions used in the value in use calculation would
cause the carrying value of the CGU to materially exceed its value in use.
(ii)
.
332
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
6. Other intangible assets
[Item No. I(d), Page 306]
Cost/deemed cost as at April 1, 2018
Addition relating to acquisitions
Additions
Disposals
Disposal of group undertakings
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Cost/deemed cost as at March 31, 2019
Accumulated impairment as at April 1, 2018
Charge for the year
Exchange differences on consolidation
Accumulated impairment as at March 31, 2019
Accumulated amortisation as at April 1, 2018
Charge for the year
Disposals
Disposal of group undertakings
Classified as held for sale
Other re-classifications
Exchange differences on consolidation
Accumulated amortisation as at March 31, 2019
Total accumulated amortisation and impairment
as at March 31, 2019
Net carrying value as at April 1, 2018
Net carrying value as at March 31, 2019
13.99
-
16.00
(1.19)
-
-
-
(0.36)
28.44
-
11.36
(0.13)
11.23
9.34
0.53
(0.63)
-
-
-
(0.07)
9.17
20.40
4.65
8.04
Patents
and
trademarks
Development
costs
Software
costs
Mining
assets
Other
intangible
assets
278.81
-
-
-
-
-
-
(10.53)
268.28
-
-
-
-
224.34
29.44
-
-
-
-
(9.60)
244.18
244.18
530.68
0.10
90.16
(24.23)
(0.45)
(24.86)
3.03
(4.88)
569.55
0.47
21.70
(0.46)
21.71
310.79
92.51
(24.23)
(0.31)
(18.75)
(1.00)
(0.56)
358.45
380.16
2,517.52
-
185.47
-
(236.09)
-
-
7.07
2,473.97
125.61
3.06
6.77
135.44
1,103.91
148.98
-
(93.08)
-
-
(5.21)
1,154.60
1,290.04
184.17
512.80
0.84
-
-
-
-
-
697.81
30.65
-
-
30.65
37.40
40.90
-
-
-
-
-
78.30
108.95
(` crore)
Total
3,525.17
512.90
292.47
(25.42)
(236.54)
(24.86)
3.03
(8.70)
4,038.05
156.73
36.12
6.18
199.03
1,685.78
312.36
(24.86)
(93.39)
(18.75)
(1.00)
(15.44)
1,844.70
2,043.73
54.47
24.10
219.42
189.39
1,288.00
1,183.93
116.12
588.86
1,682.66
1,994.32
333
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
6. Other intangible assets (Contd.)
[Item No. I(d), Page 306]
Patents
and
trademarks
Development
costs
Software
costs
Mining
assets
Other
intangible
assets
Cost/deemed cost as at April 1, 2017
Addition relating to acquisitions
Additions
Disposals
Exchange differences on consolidation
Cost/deemed cost as at March 31, 2018
Accumulated impairment as at April 1, 2017
Exchange differences on consolidation
Accumulated impairment as at March 31, 2018
Accumulated amortisation as at April 1, 2017
Charge for the year
Disposals
Exchange differences on consolidation
Accumulated amortisation as at March 31, 2018
Total accumulated amortisation and impairment
as at March 31, 2018
Net carrying value as at April 1, 2017
Net carrying value as at March 31, 2018
10.16
-
2.31
-
1.52
13.99
-
-
-
7.71
0.64
-
0.99
9.34
9.34
2.45
4.65
239.22
-
-
-
39.59
278.81
-
-
-
159.29
36.14
-
28.91
224.34
224.34
425.29
0.02
83.99
(5.61)
26.99
530.68
0.42
0.05
0.47
241.36
66.39
(5.54)
8.58
310.79
311.26
2,399.45
-
82.61
-
35.46
2,517.52
122.57
3.04
125.61
948.12
147.80
-
7.99
1,103.91
1,229.52
93.94
90.20
0.03
-
-
184.17
30.65
-
30.65
26.71
10.69
-
-
37.40
68.05
(` crore)
Total
3,168.06
90.22
168.94
(5.61)
103.56
3,525.17
153.64
3.09
156.73
1,383.19
261.66
(5.54)
46.47
1,685.78
1,842.51
79.93
54.47
183.51
219.42
1,328.76
1,288.00
36.58
116.12
1,631.23
1,682.66
Mining assets represent expenditure incurred in relation to acquisition of mines, mine development expenditure post establishment of
technical and commercial feasibility and restoration obligations as per applicable regulations.
During the year ended March 31, 2019, the Group recognised an impairment charge of `68.39 crore (2017-18: Nil) in respect of intangible
assets including intangible assets under development. The impairment is split as: Indian operations `5.24 crore (2017-18: Nil) and
European operations `63.15 crore (2017-18: Nil). The impairment recognised is included within other expenses in consolidated statement
of profit and loss.
(i)
(ii)
334
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
7. Equity accounted investments
[Item No. I(f ), Page 306]
(a) Investment in associates:
(i)
The Group has no material associates as at March 31, 2019. The aggregate summarised financial information in respect of the Group’s
immaterial associates accounted for using the equity method is as below:
Carrying value of the Group’s interest in associates*
Group's share in profit/(loss) for the year of associates*
Group's share in other comprehensive income for the year of associates
Group's share in total comprehensive income for the year of associates
As at
March 31, 2019
155.86
Year ended
March 31, 2019
19.40
1.63
21.03
(` crore)
As at
March 31, 2018
301.23
(` crore)
Year ended
March 31, 2018
62.43
(0.31)
62.12
(ii)
(iii)
Fair value of investments in equity accounted associates for which published price quotation is available, which is a Level 1 input as at
March 31, 2019 is `62.07 crore (March 31, 2018: `102.76 crore). The carrying value of such investments is Nil (March 31, 2018: Nil) as the
Group’s share of losses in such associates exceeds the cost of investments made.
Share of unrecognised loss in respect of equity accounted associates amounted to `9.41 crore for the year ended March 31, 2019 (2017-18:
`40.85 crore). Cumulative share of unrecognised losses in respect of equity accounted associates as at March 31, 2019 amounted to
`77.95 crore. (March 31, 2018: `68.54 crore)
(iv) The Group did not recognise any impairment in respect of its equity accounted associates during the year (2017-18: Nil).
(b) Investment in joint ventures:
(i)
The Group holds 51% of the equity share capital in T M International Logistics Limited, Jamshedpur Continuous Annealing & Processing
Company Private Limited and T M Mining Company Limited. However, decisions in respect of activities which significantly affect the risks
and rewards of these businesses, require an unanimous consent of all the shareholders. These entities have therefore been considered as
joint ventures.
335
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
7. Equity accounted investments (Contd.)
[Item No. I(f ), Page 306]
(ii)
The Group has no material joint ventures as at March 31, 2019. The aggregate summarised financial information in respect of the Group’s
immaterial joint ventures accounted for using the equity method is as below:
Carrying value of Group’s interest in joint ventures*
Group's share in profit/(loss) for the year of joint ventures*
Group's share in other comprehensive income for the year of joint ventures
Group's share in total comprehensive income for the year of joint ventures
As at
March 31, 2019
1,767.09
(` crore)
As at
March 31, 2018
1,479.99
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
205.30
2.76
208.06
176.69
16.27
192.96
(iii)
Share of unrecognised losses in respect of equity accounted joint ventures amounted to `57.24 crore for the year ended March 31, 2019
(2017-18: `35.78 crore). Cumulative share of unrecognised losses in respect of equity accounted joint ventures as at March 31, 2019
amounted to `1,293.30 crore. (March 31, 2018: `1,187.58 crore).
(iv)
During the year ended March 31, 2019, the Group has recognised an impairment of `0.06 crore (2017-18: Nil) in respect of its equity
accounted joint ventures.
(c) Summary of carrying value of Group’s interest in equity accounted investees:
Carrying value of immaterial associates
Carrying value of immaterial joint ventures
(d) Summary of Group’s share in profit/(loss) for the year of equity accounted investees:
Share of profit/(loss) in immaterial associates
Share of profit/(loss) in immaterial joint ventures
(` crore)
As at
March 31, 2019
As at
March 31, 2018
155.86
1,767.09
1,922.95
301.23
1,479.99
1,781.22
Year ended
March 31, 2019
19.40
205.30
224.70
(` crore)
Year ended
March 31, 20018
62.43
176.69
239.12
336
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
7. Equity accounted investments (Contd.)
[Item No. I(f ), Page 306]
(e) Summary of Group’s share in other comprehensive income for the year of equity accounted investees:
Share of other comprehensive income of immaterial associates
Share of other comprehensive income of immaterial joint ventures
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
1.63
2.76
4.39
(0.31)
16.27
15.96
*Group’s share in net assets and profit/(loss) of equity accounted investees has been determined after giving effect for subsequent
amortisation/depreciation and other adjustments arising on account of fair value adjustments made to the identifiable net assets of the equity
accounted investees as at the date of acquisition and other adjustment e.g. unrealised profits on inventories etc., arising under the equity
method of accounting.
8.
Investments
[Item No. I(g)(i) and II(b)(i), Page 306]
A. Non-current
(a)
Investments carried at amortised cost:
Investment in government or trust securities
Investment in bonds and debentures
Investment in preference shares
(b)
Investments carried at fair value through other comprehensive income:
Investment in equity shares#
(c)
Investments carried at fair value through profit and loss:
Investment in bonds and debentures
Investment in preference shares
Investment in equity shares
Investment in mutual funds
B. Current
Investments carried at fair value through profit and loss:
Investment in mutual funds
(` crore)
As at
March 31, 2019
As at
March 31, 2018
0.02
0.20
64.99
65.21
756.39
756.39
49.74
250.00
60.75
108.27
468.76
1,290.36
0.02
0.20
-
0.22
876.65
876.65
141.04
-
120.45
70.92
332.41
1,209.28
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,524.86
2,524.86
14,908.97
14,908.97
337
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
8.
Investments (Contd.)
[Item No. I(g)(i) and II(b)(i), Page 306]
(i)
Carrying value and market value of quoted and unquoted investments is as below:
(a)
Investments in quoted instruments:
Aggregate carrying value
Aggregate market value
(` crore)
As at
March 31, 2019
As at
March 31, 2018
454.53
454.53
699.46
699.46
3,360.69
15,418.79
Investments in unquoted instruments:
Aggregate carrying value
(b)
(ii)
Cumulative gain on de-recognition of investments during the year which were carried at fair value through other comprehensive
income amounted to `31.06 crore (2017-18: `3,427.46 crore). Fair value of such investments as on the date of de-recognition was
`40.78 crore (2017-18: `3,782.76 crore).
# includes unquoted equity instruments for which cost has been considered as an appropriate estimate of fair value because of a wide range
of possible fair value measurements and cost represents the best estimate of fair value within that range.
9. Loans
[Item No. I(g)(ii) and II(b)(v), Page 306]
A. Non-current
(a) Security deposits
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Loans to related parties
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(c) Other loans
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
338
(` crore)
As at
March 31, 2019
As at
March 31, 2018
254.98
2.07
2.07
254.98
7.37
188.67
188.67
7.37
350.99
1,382.53
1,382.53
350.99
613.34
197.71
2.18
2.18
197.71
7.52
192.31
192.31
7.52
512.11
1,313.60
1,313.60
512.11
717.34
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
9. Loans (Contd.)
[Item No. I(g)(ii) and II(b)(v), Page 306]
B. Current
(a) Security deposits
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Loans to related parties
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(c) Other loans
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(` crore)
As at
March 31, 2019
As at
March 31, 2018
91.16
151.75
151.75
91.16
27.60
831.55
831.55
27.60
120.94
2.08
2.08
120.94
239.70
43.69
0.23
0.23
43.69
46.22
783.36
783.36
46.22
166.57
2.08
2.08
166.57
256.48
(i)
(ii)
Security deposits are primarily in relation to public utility services and rental agreements. It includes deposit with Tata Sons Private Limited
`1.25 crore (March 31, 2018: `1.25 crore).
Non-current loans to related parties represent loans given to joint ventures `185.37 crore (March 31, 2018: `188.95 crore) and associates
`10.67 crore (March 31, 2018: `10.88 crore) out of which `185.37 crore (March 31, 2018: `188.95 crore) and `3.30 crore (March 31, 2018:
`3.36 crore) respectively is impaired.
(iii)
Current loans/advances to related parties represent loans given to joint ventures `859.15 crore (March 31, 2018: `829.58 crore) out of which
`831.55 crore (March 31, 2018: `783.36 crore) is impaired.
(iv) There are no outstanding debts from directors or other officers of the Company.
339
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
10. Other financial assets
[Item No. I(g)(iv) and II(b)(vii), Page 306]
A. Non-current
(a)
Interest accrued on deposits, loans and advances
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(b)
Earmarked balances with banks
(c) Other balances with banks
(d) Others
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
B. Current
(a)
Interest accrued on deposits and loans
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(b) Others
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(` crore)
As at
March 31, 2019
As at
March 31, 2018
84.41
0.27
0.27
84.41
70.80
0.19
414.66
148.34
148.34
414.66
570.06
2.25
0.27
0.27
2.25
21.25
63.77
0.64
-
-
0.64
87.91
(` crore)
As at
March 31, 2019
As at
March 31, 2018
42.10
216.08
216.08
42.10
1,206.46
5.17
5.17
1,206.46
1,248.56
43.28
149.54
149.54
43.28
567.32
-
-
567.32
610.60
(i)
Non-current earmarked balances with banks represent deposits and balances in escrow account not due for realisation within 12 months
from the balance sheet date. These are primarily placed as security with government bodies, margin money against issue of bank
guarantees and deposits made against contract performance.
(ii) Other non-current balances with banks represent bank deposits not due for realisation within 12 months from the balance sheet date.
(iii)
Current other financial assets include amount receivable from post-employment benefit funds `769.20 crore (March 31, 2018: `302.14
crore) on account of retirement benefit obligations paid by the Group directly.
340
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
11. Retirement benefit assets and obligations
[Item No. I(h), II(c), V(c) and VI(c) Pages 306 and 307]
(I) Retirement benefit assets
A. Non-current
(a)
(b)
Pension
Retiring gratuities
B. Current
(a)
Retiring gratuities
(II) Retirement benefit obligations
A. Non-current
Pension
Retiring gratuities
Post-retirement medical benefits
(a)
(b)
(c)
(d) Other defined benefits
B. Current
Pension
Retiring gratuities
Post-retirement medical benefits
(a)
(b)
(c)
(d) Other defined benefits
As at
March 31, 2019
19,963.75
0.44
19,964.19
(` crore)
As at
March 31, 2018
20,570.52
0.35
20,570.87
As at
March 31, 2019
4.38
(` crore)
As at
March 31, 2018
2.91
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,072.64
120.36
1,214.83
245.63
2,653.46
1,096.53
67.70
1,150.39
201.94
2,516.56
As at
March 31, 2019
7.37
4.51
92.66
16.15
120.69
(` crore)
As at
March 31, 2018
9.23
3.69
89.53
7.91
110.36
(i) Detailed disclosure in respect of post-retirement defined benefit schemes is provided in note 38, page 378.
(ii) Other defined benefits include post-retirement lumpsum benefits, long service awards, packing and transportation, farewell gifts etc.
341
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
12. Income taxes
[Item No. I(j) and V(e), Pages 306 and 307]
A.
Income tax expenses/(benefit)
Indian companies are subject to income tax in India on the basis of their standalone financial statements. Indian companies can claim tax
exemptions/deductions under specific sections of the Income-tax Act, 1961 subject to fulfilment of prescribed conditions as may be applicable.
As per the Income-tax Act, 1961, companies are liable to pay income tax based on the higher of regular income tax payable or the amount
payable based on the provisions applicable for Minimum Alternate Tax (MAT). MAT paid in excess of regular income tax during a year can be
carried forward for a period of fifteen years and can be offset against future tax liabilities arising from regular income tax.
Indian companies can carry forward business loss for a maximum period of eight assessment years immediately succeeding the assessment
year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.
Apart from India, major tax jurisdictions for the Group include Singapore, United Kingdom and Netherlands. The number of years that are
subject to tax assessments varies depending on the tax jurisdiction.
The reconciliation of estimated income tax to income tax expense is as below:
Profit/(loss) before tax
Income tax expense at tax rates applicable to individual entities
(a) Tax on income at different rates
(b) Additional tax benefit for capital investment including research and development expenditures
(c) Income exempt from tax/items not deductible
(d) Deferred tax assets not recognised because realisation is not probable
(e) Adjustments to taxes in respect of prior periods
(f ) Utilisation/credit of unrecognised tax losses, unabsorbed depreciation and other tax benefits
(g) Impact of changes in tax rates(i)
Tax expense as reported
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
15,905.72
20,956.09
5,576.07
(24.22)
(25.37)
646.06
3,197.18
(287.69)
(2,406.93)
43.33
6,718.43
4,960.95
(0.04)
(26.79)
247.61
780.11
16.67
(2,713.62)
127.44
3,392.33
(i)
Impact of changes in tax rates during the year ended March 31, 2019 represents re-measurement of deferred tax assets following a
reduction in corporate income tax rate within European operations.
During the year ended March 31, 2018, the Company and its Indian subsidiaries re-measured deferred tax balances expected to reverse in
future periods based on changes in statutory tax rate made by the Finance Act, 2018.
342
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
12. Income taxes (Contd.)
[Item No. I(j) and V(e), Pages 306 and 307]
B. Deferred tax assets/(liabilities)
(i) Components of deferred tax assets and liabilities as at March 31, 2019 is as below:
Balance
as at
April 1, 2018
Recognised/
(reversed) in
profit and loss
during the year
Recognised
in other
comprehensive
income during
the year
Recognised
in equity
during the
year
Addition
relating to
acquisitions
during the
year
Disposal
of group
undertakings
during the
year
Reclassified
as held for
sale
during the
year
Other
movements
during the
year
Exchange
differences on
consolidation
during the
year
(` crore)
Balance
as at
March 31, 2019
Deferred tax assets:
Tax-loss carry forwards
2,991.55
Expenses allowable
for tax purposes when
paid/written off
MAT credit entitlement/
(utilisation)
Others
1,984.22
2,160.66
321.64
7,458.07
1,573.56
(791.63)
-
62.48
844.41
-
-
-
(44.10)
(44.10)
-
-
-
-
-
2,208.20
2,009.01
-
424.08
4,641.29
-
(9.85)
(9.52)
(16.81)
15.83
(2.26)
(60.48)
(3.55)
6,719.14
3,169.13
-
-
-
(2,160.66)
-
-
13.09
8.50
(5.01)
780.68
(9.85)
(13.24)
(2,138.59)
(69.04)
10,668.95
Deferred tax
liabilities:
Property, plant and
equipment and
Intangible assets
Retirement benefit
assets/obligations
Others
Net deferred tax
assets/(liabilities):
Disclosed as:
13,454.92
247.64
-
(4.81)
4,834.29
(58.18)
(57.09)
23.93
0.82
18,441.52
2,668.18
250.65
(100.47)
869.05
16,992.15
(9,534.08)
314.58
812.87
31.54
-
(100.47)
56.37
-
-
(4.81)
4.81
-
-
(59.61)
4,774.68
(133.39)
0.71
(57.47)
47.62
8.28
0.16
(48.65)
-
(56.69)
2,769.95
(0.24)
23.69
(16.23)
(72.10)
1,108.42
22,319.89
35.41
(2,162.28)
3.06
(11,650.94)
Deferred tax assets
1,035.80
Deferred tax liabilities
10,569.88
(9,534.08)
808.95
12,459.89
(11,650.94)
343
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
12. Income taxes (Contd.)
[Item No. I(j) and V(e), Pages 306 and 307]
Components of deferred tax assets and liabilities as at March 31, 2018 is as below:
Balance
as at
April 1, 2017
Recognised/
(reversed) in
profit and loss
during the year
Recognised
in other
comprehensive
Income during
the year
1,009.20
2,151.80
1,716.86
(177.93)
-
-
1,513.30
(84.02)
731.38
104.10
4,778.40
164.79
1,619.70
33.58
764.96
Recognised in
equity during
the year
Addition relating
to acquisitions
during the year
Other
movements
during the year
(` crore)
Balance
as at
April 1, 2018
Exchange
differences on
consolidation
during the year
-
-
-
-
-
-
-
-
-
-
(21.76)
(22.00)
287.25
32.35
2,991.55
1,984.22
-
-
2,160.66
0.15
(43.61)
19.02
338.62
321.64
7,458.07
13,248.51
172.12
-
(6.21)
36.09
0.23
4.18
13,454.92
90.40
2,655.29
(296.47)
-
-
-
218.96
2,668.18
Deferred tax assets:
Tax-loss carry forwards
Expenses allowable
for tax purposes when
paid/written off
MAT credit entitlement/
(utilisation)
Others
Deferred tax liabilities:
Property, plant and
equipment and
Intangible assets
Retirement benefit
assets/obligations
Others
583.70
13,922.61
(9,144.21)
Net deferred tax
assets/(liabilities):
Disclosed as:
Deferred tax assets
885.87
Deferred tax liabilities 10,030.08
(9,144.21)
194.91
3,022.32
(1,402.62)
-
(296.47)
1,061.43
-
(6.21)
6.21
-
36.09
(36.09)
-
0.23
(43.84)
90.44
869.05
313.58 16,992.15
(9,534.08)
25.04
1,035.80
10,569.88
(9,534.08)
(ii)
Deferred tax assets, have been recognised based on an evaluation of whether it is probable that taxable profits will be earned in
future accounting periods considering all the available evidences, including approved budgets and forecasts by the Board of the
respective entities.
(iii)
Deferred tax assets have not been recognised in respect of tax losses of `45,310.97 crore (March 31, 2018: `39,499.52 crore) as its recovery
is not considered probable in the foreseeable future. Such losses primarily relate to the Group’s European operations.
344
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
12. Income taxes (Contd.)
[Item No. I(j) and V(e), Pages 306 and 307]
(iv)
Unrecognised tax losses in respect of which deferred tax asset has not been recognised, expire unutilised based on the year of
origination as below:
Within five years
Later than five years but less than ten years
Later than ten years but less than twenty years
No expiry
(` crore)
As at
March 31, 2019
3,081.35
7,245.63
253.92
34,730.07
45,310.97
(v)
Unused tax credits and other deductible temporary differences in respect of which deferred tax asset has not been recognised, expire
unutilised based on the year of origination as below:
Within five years
No expiry
(` crore)
As at
March 31, 2019
2,019.28
1,005.88
3,025.16
(vi)
At the end of the reporting period, aggregate amount of temporary difference associated with undistributed earnings of subsidiaries for
which deferred tax liability has not been recognised is `6,642.93 crore (March 31, 2018: `6,210.92 crore). No liability has been recognised
in respect of such difference because the Group is in a position to control the timing of reversal of the temporary difference and it is
probable that such difference will not reverse in the foreseeable future.
345
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,068.83
93.05
93.05
1,068.83
1,473.31
345.42
345.42
1,473.31
1,888.22
502.36
93.22
93.22
502.36
880.48
24.01
24.01
880.48
947.54
5.38
32.02
219.18
-
-
219.18
4,654.92
214.74
10.09
10.09
214.74
2,577.14
13. Other assets
[Item No. I(k) and II(e), Page 306]
A. Non-current
(a) Capital advances
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(b) Advances with public bodies
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(c) Prepaid lease payments for operating leases
(d) Capital advances to related parties
Considered good - Unsecured
(e) Others
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
346
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
13. Other assets (Contd.)
[Item No. I(k) and II(e), Page 306]
B. Current
(a) Advances with public bodies
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(b) Prepaid lease payments for operating leases
(c) Advances to related parties
Considered good- Unsecured
(d) Others
Considered good - Unsecured
Considered doubtful - Unsecured
Less: Provision for doubtful advances
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,095.99
2.71
2.71
2,095.99
2,120.06
2.83
2.83
2,120.06
15.18
13.66
21.88
82.55
1,396.65
46.58
46.58
1,396.65
3,529.70
881.82
102.87
102.87
881.82
3,098.09
(i)
(ii)
Advances with public bodies primarily relate to input credit entitlements and amounts paid under protest in respect of demands and
claims from regulatory authorities.
Prepaid lease payments for operating leases relate to land leases classified as operating since land has an indefinite economic life and title
is not expected to transfer at the end of the lease term.
(iii) Others include advances against supply of goods/services and advances paid to employees.
347
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
14. Inventories
[Item No. II(a), Page 306]
(a)
Raw materials
(b) Work-in-progress
(c)
(d)
(e)
Finished and semi-finished goods
Stock-in-trade
Stores and spares
Included above, goods-in-transit:
(i)
(ii)
(iii)
(iv)
Raw materials
Finished and semi-finished goods
Stock-in-trade
Stores and spares
(` crore)
As at
March 31, 2019
As at
March 31, 2018
11,424.47
4,591.81
11,055.76
96.65
4,487.41
31,656.10
1,942.16
314.93
66.22
190.74
2,514.05
9,551.29
5,145.30
9,787.47
66.94
3,780.04
28,331.04
1,939.01
123.02
31.99
155.60
2,249.62
Value of inventories above is stated after provisions (net of reversal) of `482.25 crore (March 31, 2018: `526.77 crore) for write-down to net
realisable value and provision for slow-moving and obsolete items.
15. Trade receivables
[Item No. II(b)(ii), Page 306]
Considered good- Unsecured
Credit impaired
Less: Allowance for credit losses
(` crore)
As at
March 31, 2019
As at
March 31, 2018
11,811.00
392.92
12,203.92
392.92
11,811.00
12,415.52
250.26
12,665.78
250.26
12,415.52
In determining allowance for credit losses of trade receivables, the Group has used the practical expedient by computing the expected credit
loss allowance based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward
looking information. The expected credit loss allowance is based on ageing of the receivables that are due and rates used in the provision matrix.
348
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
15. Trade receivables (Contd.)
[Item No. II(b)(ii), Page 306]
(i) Movement in allowance for credit losses of receivables is as below:
Balance at the beginning of the year
Charge during the year
Utilised during the year
Addition relating to acquisitions
Disposal of group undertakings
Classified as held for sale
Exchange differences on consolidation
Balance at the end of the year
(ii) Ageing of trade receivables and credit risk arising therefrom is as below:
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
250.26
33.16
(19.94)
172.36
(9.75)
(32.15)
(1.02)
392.92
226.86
55.67
(24.36)
-
(28.18)
-
20.27
250.26
(` crore)
Net
credit risk
2,741.58
282.45
123.33
42.48
96.44
196.63
3,482.91
(` crore)
Net
credit risk
4,014.69
323.04
42.82
76.76
57.75
100.00
4,615.06
Amounts not yet due
One month overdue
Two months overdue
Three months overdue
Between three to six months overdue
Greater than six months overdue
Amounts not yet due
One month overdue
Two months overdue
Three months overdue
Between three to six months overdue
Greater than six months overdue
As at March 31, 2019
Gross
credit risk
Subject to credit
insurance cover
Allowance for
credit losses
10,469.72
715.71
191.42
76.60
157.49
592.98
12,203.92
7,687.00
423.61
59.70
29.41
50.18
78.19
8,328.09
41.14
9.65
8.39
4.71
10.87
318.16
392.92
As at March 31, 2018
Gross
credit risk
Subject to credit
insurance cover
Allowance for
credit losses
11,124.82
621.91
161.60
219.77
146.18
391.50
12,665.78
7,102.01
298.09
115.51
142.03
72.38
70.44
7,800.46
8.12
0.78
3.27
0.98
16.05
221.06
250.26
(iii)
The Group considers its maximum exposure to credit risk with respect to customers as at March 31, 2019 to be `3,482.91 crore (March 31,
2018: `4,615.06 crore), which is the carrying value of trade receivables after allowance for credit losses and considering insurance cover.
The Group’s exposure to customers is diversified and there is no concentration of credit risk with respect to any particular customer.
(iv) There are no outstanding receivables due from directors or officers of the Company.
349
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
16. Cash and cash equivalents
[Item No. II(b)(iii), Page 306]
Cash on hand
Cheques, drafts on hand
Remittances-in-transit
(a)
(b)
(c)
(d) Unrestricted balances with banks
(i) Currency profile of cash and cash equivalents is as below:
INR
GBP
EURO
USD
Others
Total
INR-Indian Rupees, GBP- Great Britain Pound, USD-United States Dollars.
Others primarily include SGD-Singapore Dollars, CAD-Canadian Dollars and THB-Thai Baht.
17. Other balances with banks
[Item No. II(b)(iv), Page 306]
Earmarked balances with banks
(i) Currency profile of earmarked balances with banks is as below:
INR
USD
Total
INR-Indian Rupees, USD-United States Dollars.
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1.67
9.32
9.27
2,955.27
2,975.53
1.50
30.46
53.20
7,698.34
7,783.50
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,328.22
1,565.50
(131.98)
30.35
183.44
2,975.53
5,132.75
1,449.48
528.09
190.76
482.42
7,783.50
As at
March 31, 2019
365.84
(` crore)
As at
March 31, 2018
154.35
(` crore)
As at
March 31, 2019
As at
March 31, 2018
350.21
15.63
365.84
139.65
14.70
154.35
(ii)
Earmarked balances with banks represent balances held for unpaid dividends, margin money/fixed deposits against issue of bank
guarantees and deposits made against contract performance.
350
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
18. Assets and liabilities held for sale
[Item No. III and VII, Pages 306 and 307]
(i)
On January 28, 2019, the Group entered into definitive agreements with HBIS Group Co. Ltd. (“HBIS”) to divest its entire equity stake in
NatSteel Holdings Pte. Ltd. (“NSH”) and Tata Steel (Thailand) Public Company Ltd. (“TSTH”). As per the agreement, the divestment will be
made to a company in which 70% equity shares will be held by an entity controlled by HBIS and 30% will be held by the Group.
In accordance with Ind AS 105, “Non-current Assets Held for Sale and Discontinued Operations”, the assets and liabilities of businesses forming
part of the disposal group have been classified as held for sale.
As on March 31, 2018, the Group had classified certain assets within these businesses as held for sale.
The major classes of assets and liabilities classified as held for sale as on reporting date are set out below:
(` crore)
As at
March 31, 2019
As at
March 31, 2018
Non-current assets
Property, plant and equipment
Capital work-in-progress
Other intangible assets
Intangible assets under development
Other investments
Other financial assets
Other non-financial assets
Non-current tax assets
Deferred tax assets
Current assets
Inventories
Trade receivables
Cash and bank balances
Other current financial assets
Derivative assets
Other current non-financial assets
Current tax assets
Total assets held for sale
1,484.91
40.27
6.17
0.54
38.70
1.50
1.83
19.29
16.43
1,609.64
1,491.32
608.51
294.77
78.25
2.82
51.26
2.88
2,529.81
4,139.45
95.93
-
-
-
-
-
-
-
-
95.93
-
-
-
-
-
-
-
-
95.93
351
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
18. Assets and liabilities held for sale (Contd.)
[Item No. III and VII, Pages 306 and 307]
Non-current liabilities
Borrowings
Other financial liabilities
Provisions
Retirement benefit obligations
Deferred tax liabilities
Current liabilities
Borrowings
Derivative liabilities
Trade payables
Other financial liabilities
Retirement benefit obligations
Provisions
Other non-financial liabilities
Current tax liabilities
Total liabilities held for sale
(` crore)
As at
March 31, 2019
As at
March 31, 2018
11.14
0.37
0.23
61.89
51.68
125.31
670.97
3.62
501.19
90.92
0.61
2.76
17.91
12.75
1,300.73
1,426.04
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(ii)
As at March 31, 2019, the Group has classified certain assets and liabilities held within a disposal group with net carrying value of `2.73
crores (March 31, 2018: `6.43 crore) in respect of one of its Indian subsidiary as held for sale. These assets and liabilities continue to be
classified as held for sale as the Group expects to recover the carrying value principally through sale.
As at
March 31, 2019
0.06
1.92
0.79
0.04
2.81
0.08
0.08
(` crore)
As at
March 31, 2018
0.06
5.08
1.25
0.15
6.54
0.11
0.11
Property, plant and equipment
Inventories
Trade receivables
Other non-financial assets
Total assets held for sale
Trade payables
Total liabilities held for sale
352
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
19. Equity share capital
[Item No. IV(a), Page 307]
Authorised:
1,75,00,00,000
35,00,00,000
2,50,00,000
60,00,00,000
Issued:
1,12,75,20,570
7,76,97,280
Ordinary Shares of `10 each
(March 31, 2018: 1,75,00,00,000 Ordinary Shares of `10 each)
'A' Ordinary Shares of `10 each *
(March 31, 2018: 35,00,00,000 'A' Ordinary Shares of `10 each)
Cumulative Redeemable Preference Shares of `100 each *
(March 31, 2018: 2,50,00,000 Shares of `100 each)
Cumulative Convertible Preference Shares of `100 each *
(March 31, 2018: 60,00,00,000 Shares of `100 each)
Ordinary Shares of `10 each
(March 31, 2018: 1,12,75,20,570 Ordinary Shares of `10 each)
Ordinary Shares of `10 each (partly paid up, `2.504 each paid up)
(March 31, 2018: 7,76,97,280 Ordinary Shares of `10 each,
`2.504 each paid up)
Subscribed and paid up:
1,12,53,07,787
7,76,36,705
Ordinary Shares of `10 each fully paid up
(March 31, 2018: 1,12,53,16,422 Ordinary Shares of `10 each)
Ordinary Shares of `10 each (partly paid up, `2.504 each paid up)
(March 31, 2018:7,76,34,625 Ordinary Shares of `10 each,
`2.504 each paid up)
Amount paid up on 3,89,516 Ordinary Shares of `10 each forfeited
(March 31, 2018: 3,89,516 Shares of `10 each)
(` crore)
As at
March 31, 2019
As at
March 31, 2018
1,750.00
1,750.00
350.00
250.00
350.00
250.00
6,000.00
6,000.00
8,350.00
8,350.00
1,127.52
1,127.52
77.70
77.70
1,205.22
1,205.22
1,125.30
1,125.31
19.44
19.44
0.20
0.20
1,144.94
1,144.95
* 'A' class Ordinary Shares and Preference Shares included within authorised share capital are for disclosures purposes and have not
yet been issued.
(i)
Subscribed and paid up share capital excludes 11,81,893 (March 31, 2018: 11,68,393) Ordinary Shares of face value `10 each fully paid
up held by subsidiaries of the Company.
353
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
19. Equity share capital (Contd.)
[Item No. IV(a), Page 307]
(ii) Details of movement in subscribed and paid up share capital is as below:
Ordinary Shares of `10 each
Balance at the beginning of the year
Fully paid shares allotted during the year(a),(b),(c)
Partly paid shares allotted during the year(d)
Adjustment for cross holdings
Balance at the end of the year
* represents value less than `0.01 crore.
As at
March 31, 2019
As at
March 31, 2018
No. of shares
` crore
No. of shares
` crore
1,20,29,51,047
4,865
2,080
(13,500)
1,20,29,44,492
1,144.75
0.00*
0.00*
(0.01)
1,144.74
97,00,47,046
15,52,69,376
7,76,34,625
-
1,20,29,51,047
970.04
155.27
19.44
-
1,144.75
(a)
(b)
(c)
(d)
690 Ordinary Shares of face value `10 each were allotted at a premium of `290 per share to the shareholders whose shares were kept
in abeyance in the Rights Issue of 2007.
11 Ordinary Shares of face value `10 each were allotted at a premium of `590 per share in lieu of Cumulative Convertible Preference
Shares of `100 each to the shareholders whose shares were kept in abeyance in the Rights Issue of 2007.
4,164 fully paid Ordinary Shares of face value `10 each were allotted at a premium of `500 per share to the shareholders whose
shares were kept in abeyance in the Rights Issue of 2018.
2,080 partly paid Ordinary Shares of face value `10 each (`2.504 paid up) were allotted at a premium of `605 (`151.496 paid up) per
share to the shareholders whose shares were kept in abeyance in the Rights Issue of 2018.
(iii) The balance proceeds which remained unutilised as at March 31, 2018 from the Rights Issue, 2018 have been fully utilised during the
year as below:
Particulars
Repayments of loan
Expenses towards general corporate purpose
Issue expense
Total
Utilised till
March 31, 2018
Utilised during the year
ended March 31, 2019
5,000.00
1,500.00
-
6,500.00
1,950.00
630.44
33.85
2,614.29
(` crore)
Total
6,950.00
2,130.44
33.85
9,114.29
(iv)
As at March 31, 2019, 2,99,188 Ordinary Shares of face value `10 each (March 31, 2018: 3,00,395 Ordinary Shares) are kept in abeyance in
respect of Rights Issue of 2007.
As at March 31, 2019, 1,21,460 fully paid Ordinary Shares of face value `10 each (March 31, 2018: 1,25,624 fully paid Ordinary Shares) and
60,575 partly paid Ordinary Shares of face value `10 each, `2.504 paid up (March 31, 2018: 62,655 partly paid Ordinary Shares, `2.504 paid
up) are kept in abeyance in respect of Rights Issue of 2018.
354
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
19. Equity share capital (Contd.)
[Item No. IV(a), Page 307]
(v) Details of shareholders holding more than 5 percent shares in the Company is as below:
Name of shareholders
(a) Tata Sons Private Limited
(b) Life Insurance Corporation of India
(vi)
1,34,73,958 shares (March 31, 2018: 1,27,40,651 shares) of face
value of `10 per share represent the shares underlying GDRs
which were issued during 1994 and 2009. Each GDR represents
one underlying Ordinary Share.
(vii) The rights, powers and preferences relating to each class of share
capital and the qualifications, limitations and restrictions thereof
are contained in the Memorandum and Articles of Association of
the Company. The principal rights are as below:
A. Ordinary Shares of `10 each
(i)
(ii)
(iii)
B.
(i)
In respect of every Ordinary Share (whether fully paid or partly
paid), voting right and dividend shall be in the same proportion
as the capital paid up on such Ordinary Share bears to the total
paid up Ordinary Capital of the Company.
(ii)
The dividend proposed by the Board of Directors is subject to
the approval of the Shareholders in the ensuing Annual General
Meeting, except in case of interim dividend.
In the event of liquidation, the Shareholders of Ordinary Shares
are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to
their shareholding.
‘A’ Ordinary Shares of `10 each
(a)
The holders of ‘A’ Ordinary Shares shall be entitled to such
rights of voting and/or dividend and such other rights as per
the terms of the issue of such shares, provided always that:
(i)
-
in the case where a resolution is put to vote on a
poll, such differential voting entitlement (excluding
fractions, if any) will be applicable to holders of ‘A’
Ordinary Shares.
As at
March 31, 2019
As at
March 31, 2018
No. of Ordinary
Shares
% held
No. of Ordinary
Shares
38,09,73,085
10,83,88,660
31.64
9.00
38,09,73,085
10,83,88,660
% held
31.64
9.00
-
in the case where a resolution is put to vote in the
meeting and is to be decided on a show of hands,
the holders of ‘A’ Ordinary Shares shall be entitled to
the same number of votes as available to holders of
Ordinary Shares.
(b)
The holders of Ordinary Shares and the holders of ‘A’ Ordinary
Shares shall vote as a single class with respect to all matters
submitted for voting by shareholders of the Company and
shall exercise such votes in proportion to the voting rights
attached to such shares including in relation to any scheme
under Sections 391 to 394 of the Companies Act, 1956.
The holders of ‘A’ Ordinary Shares shall be entitled to dividend
on each ‘A’ Ordinary Share which may be equal to or higher
than the amount per Ordinary Share declared by the Board for
each Ordinary Share, and as may be specified at the time of the
issue. Different series of ‘A’ Ordinary Shares may carry different
entitlements to dividend to the extent permitted under applicable
law and as prescribed under the terms applicable to such issue.
C. Preference Shares
The Company has two classes of Preference Shares
i.e.
Cumulative Redeemable Preference Shares (CRPS) of `100 per
share and Cumulative Convertible Preference Shares (CCPS) of
`100 per share.
Such shares shall confer on the holders thereof, the right to a fixed
preferential dividend from the date of allotment, at a rate as may
be determined by the Board at the time of the issue, on the capital
for the time being paid up or credited as paid up thereon.
(ii)
Such shares shall rank for capital and dividend (including all
dividend undeclared upto the commencement of winding up)
355
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
19. Equity share capital (Contd.)
[Item No. IV(a), Page 307]
and for repayment of capital in a winding up, pari passu inter
se and in priority to the Ordinary Shares of the Company, but
shall not confer any further or other right to participate either
in profits or assets. However, in case of CCPS, such preferential
rights shall automatically cease on conversion of these shares into
Ordinary Shares.
(iii)
The holders of such shares shall have the right to receive all notices
of general meetings of the Company but shall not confer on the
holders thereof the right to vote at any meetings of the Company
save to the extent and in the manner provided in the Companies
Act, 1956, or any re-enactment thereof.
(iv)
CCPS shall be converted into Ordinary Shares as per the terms,
determined by the Board at the time of issue; as and when
converted, such Ordinary Shares shall rank pari passu with the
then existing Ordinary Shares of the Company in all respects.
20. Hybrid perpetual securities
[Item No. IV(b), Page 307]
The details of movement in hybrid perpetual securities is as below:
Balance at the beginning of the year
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,275.00
2,275.00
2,275.00
2,275.00
The Company had issued hybrid perpetual securities of `775.00 crore and `1,500.00 crore in May 2011 and March 2011 respectively.
These securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. The distribution on
these securities are 11.50% p.a. and 11.80% p.a. respectively, with a step up provision if the securities are not called after 10 years. The distribution
on the securities may be deferred at the option of the Company if in the six months preceding the relevant distribution payment date, the
Company has not made payment on, or repurchased or redeemed, any securities ranking pari passu with, or junior to the instrument. As these
securities are perpetual in nature and the Company does not have any redemption obligation, these have been classified as equity.
356
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
21. Other equity
[Item No. IV(c), Page 307]
A. Retained earnings
The details of movement in retained earnings is as below:
Balance at the beginning of the year
Profit/(loss) for the year
Remeasurement of post-employment defined benefit plans
Tax on remeasurement of post-employment defined benefit plans
Dividend
Tax on dividend
Distribution on hybrid perpetual securities
Tax on distribution on hybrid perpetual securities
Transfers within equity(i)
Adjustment for change in ownership interests
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
7,801.99
10,218.33
(523.40)
97.48
(1,144.76)
(224.61)
(266.12)
92.99
29.95
(2,025.42)
14,056.43
(11,447.01)
13,434.33
(2,993.66)
213.61
(970.05)
(188.17)
(266.13)
92.70
3,426.26
6,500.11
7,801.99
(i)
Primarily relates to cumulative gain on sale of investments carried at fair value through other comprehensive income transfered from
investment revaluation reserve.
B.
Items of other comprehensive income
(a) Cash flow hedge reserve
The cumulative effective portion of gain or losses arising from changes in fair value of hedging instruments designated as cash flow hedges
are recognised in cash flow hedge reserve. Such changes recognised are reclassified to the consolidated statement of profit and loss when the
hedged item affects the profit or loss or are included as an adjustment to the cost of the related non-financial hedged item.
The Group has designated certain foreign currency forward contracts, commodity contracts, interest rate swaps and collar as cash flow hedges
in respect of foreign exchange, commodity price and interest rate risks.
The details of movement in cash flow hedge reserve is as below:
Balance at the beginning of the year
Other comprehensive income recognised during the year
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
9.99
109.64
119.63
105.99
(96.00)
9.99
357
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
21. Other equity (Contd.)
[Item No. IV(c), Page 307]
(i) The details of other comprehensive income recognised during the year is as below:
Fair value changes recognised during the year
Fair value changes reclassified to the consolidated statement of profit and loss/cost of hedged items
Tax impact on above
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
349.67
(198.58)
(41.45)
109.64
(579.05)
454.47
28.58
(96.00)
During the year, ineffective portion of cash flow hedges recognised in the consolidated statement of profit and loss amounted to Nil
(2017-18: Nil).
(ii) The amount recognised in cash flow hedge reserve (net of tax) is expected to impact the consolidated statement of profit and loss as below:
-
-
within the next one year: gain of `120.03 crore (2017-18: gain of `6.24 crore)
later than one year: loss of `0.40 crore (2017-18: gain of `3.75 crore)
(b) Investment revaluation reserve
The cumulative gains and losses arising on fair value changes of equity investments measured at fair value through other comprehensive
income are recognised in investment revaluation reserve. The balance of the reserve represents such changes recognised net of amounts
reclassified to retained earnings on disposal of such investments.
The details of movement in investment revaluation reserve is as below:
Balance at the beginning of the year
Other comprehensive income recognised during the year
Tax impact on above
Transfers within equity
Other movements
Balance at the end of the year
(c) Foreign currency translation reserve
Year ended
March 31, 2019
155.23
(44.30)
(2.65)
(31.06)
3.06
80.28
(` crore)
Year ended
March 31, 2018
3,788.40
(204.92)
(0.63)
(3,427.62)
-
155.23
Exchange differences arising on translation of assets, liabilities, income and expenses of the Group’s foreign subsidiaries, associates and joint
ventures are recognised in other comprehensive income and accumulated separately in foreign currency translation reserve. The amounts
recognised are transferred to the consolidated statement of profit and loss on disposal of the related foreign subsidiaries, associates and
joint ventures.
358
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
21. Other equity (Contd.)
[Item No. IV(c), Page 307]
The details of movement in foreign currency translation reserve is as below:
Balance at the beginning of the year
Other comprehensive income recognised during the year
Other movements
Balance at the end of the year
C. Other reserves
(a) Securities premium
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
6,984.28
507.78
(79.82)
7,412.24
8,534.47
(1,550.19)
-
6,984.28
Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.
The details of movement in securities premium is as below:
Balance at the beginning of the year
Received/transfer on issue of Ordinary Shares during the year
Equity issue expenses written (off )/back during the year
Balance at the end of the year
(b) Debenture redemption reserve
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
27,777.40
0.26
0.43
27,778.09
18,871.66
8,939.59
(33.85)
27,777.40
The Companies Act, 2013 requires that a company which has issued debentures, shall create a debenture redemption reserve out of profits of
the company available for payment of dividend. The company is required to maintain a debenture redemption reserve of 25% of the value of
debentures issued, either by a public issue or on a private placement basis. The amounts credited to the debenture redemption reserve cannot
be utilised by the company except to redeem debentures.
The details of movement in debenture redemption reserve is as below:
Balance at the beginning of the year
Balance at the end of the year
Year ended
March 31, 2019
2,046.00
2,046.00
(` crore)
Year ended
March 31, 2018
2,046.00
2,046.00
359
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
21. Other equity (Contd.)
[Item No. IV(c), Page 307]
(c) General reserve
Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in
accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013 the requirement to mandatorily transfer
a specified percentage of net profit to general reserve has been withdrawn.
The details of movement in general reserve is as below:
Balance at the beginning of the year
Adjustment for cross holdings
Balance at the end of the year
(d) Capital redemption reserve
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
12,181.97
(0.81)
12,181.16
12,181.97
-
12,181.97
The Companies Act, 2013 requires that when a company purchases its own shares out of free reserves or securities premium account, a sum
equal to the nominal value of the shares so purchased shall be transferred to a capital redemption reserve account and details of such transfer
shall be disclosed in the balance sheet. The capital redemption reserve may be applied by the company, in paying up unissued shares of
the company to be issued to shareholders of the company as fully paid bonus shares. The Group established this reserve pursuant to the
redemption of preference shares issued in earlier years.
The details of movement in capital redemption reserve is as below:
Balance at the beginning of the year
Balance at the end of the year
(e) Special reserve
Year ended
March 31, 2019
133.11
133.11
(` crore)
Year ended
March 31, 2018
133.11
133.11
Special reserve represents reserve created by certain Indian subsidiaries of the Company pursuant to the Reserve Bank of India Act, 1934 (the
“RBI Act”) and other related applicable regulations. Under the RBI Act, a non-banking finance company is required to transfer an amount not
less than 20% of its net profit to a reserve fund before declaring any dividend. Appropriation from this reserve fund is permitted only for the
purposes specified by the RBI.
The details of movement in special reserve is as below:
Year ended
March 31, 2019
7.58
0.56
8.14
(` crore)
Year ended
March 31, 2018
6.66
0.92
7.58
Balance at the beginning of the year
Transfers within equity
Balance at the end of the year
360
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
21. Other equity (Contd.)
[Item No. IV(c), Page 307]
(f) Capital reserve on consolidation
The excess of fair value of net assets acquired over consideration paid in a business combination is recognised as capital reserve on consolidation.
The reserve is not available for distribution.
The details of movement in capital reserve on consolidation is as below:
Balance at the beginning of the year
Addition relating to acquisitions
Balance at the end of the year
(g) Others
Year ended
March 31, 2019
100.53
1,336.41
1,436.94
(` crore)
Year ended
March 31, 2018
100.53
-
100.53
Others primarily represent amounts appropriated out of the statement of profit and loss for unforeseen contingencies. Such appropriations
are free in nature.
The details of movement in others is as below:
Balance at the beginning of the year
Transfers within equity
Balance at the end of the year
D. Share application money pending allotment
The details of movement in share application money pending allotment is as below:
Balance at the beginning of the year
Application money received during the year
Allotment of Ordinary Shares during the year
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
252.57
0.55
253.12
252.29
0.28
252.57
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
0.02
0.24
(0.26)
-
0.01
0.02
(0.01)
0.02
361
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
22. Non-controlling interests
Non-controlling interests represent proportionate share held by minority shareholders in the net assets of subsidiaries which are not wholly
owned by the Company.
The balance of non-controlling interests as at the end of the year is as below:
Non-controlling interests
As at
March 31, 2019
2,364.46
(` crore)
As at
March 31, 2018
936.52
In September 2017, the UK Pensions Regulator (tPR) had approved a Regulated Apportionment Arrangement (RAA) in respect of the British Steel
Pension Scheme (BSPS) which separated the scheme from Tata Steel UK (TSUK), a wholly owned indirect subsidiary of the Company. This was
accompanied by a one-time settlement payment and a transfer of a 33% minority stake in TSUK to the BSPS trustees. During the year ended
March 31, 2019 the non-controlling interest was diluted from 33% to 0.33% due to an equity issuance made by TSUK.
The Company, through its wholly owned subsidiary, T S Global Minerals Holdings Pte. Ltd via TSMUK holds 77.68 % equity stake in Tata Steel
Minerals Canada Limited.
On May 18, 2018, Bamnipal Steel Limited, a wholly owned subsidiary of the Company, completed the acquisition of 72.65% stake in Tata Steel
BSL Limited (formerly “Bhushan Steel Limited”) pursuant to a Corporate Insolvency Resolution Process implemented under the Insolvency and
Bankruptcy Code 2016.
The table below provides information in respect of these subsidiaries which include material non-controlling interests as at March 31, 2019:
Name of subsidiary
Country of
incorporation and
operation
% of non-
controlling
interests as at
March 31, 2019
% of non-
controlling
interests as at
March 31, 2018
(` crore)
Non-controlling
interests as at
March 31, 2019
Non-controlling
interests as at
March 31, 2018
Profit/(loss)
attributable to
non-controlling
interests for
the year ended
March 31, 2019
Profit/(loss)
attributable to
non-controlling
interests for
the year ended
March 31, 2018
Tata Steel UK Limited
Tata Steel Minerals
Canada Limited
Tata Steel BSL Limited
United Kingdom
Canada
0.33%
22.32%
33.33%
22.32%
(1,091.61)
(10.91)
4,389.78
(225.13)
(14.35)
624.98
(623.46)
599.30
India
27.35%
-
(240.93)
-
286.43
-
The tables below provide summarised information in respect of consolidated balance sheet as at March 31, 2019, consolidated statement of
profit and loss and consolidated statement of cash flows for the year ended March 31, 2019, in respect of the above mentioned entities:
Summarised balance sheet information
Particulars
Non-current assets
Current assets
Total assets (A)
Non-current liabilities
Current liabilities
Total liabilities (B)
Net assets (A-B)(i)
Tata Steel UK Limited
Tata Steel Minerals Canada Limited
Tata Steel BSL Limited
As at
March 31, 2019
As at
March 31, 2018
As at
March 31, 2019
As at
March 31, 2018
As at
March 31, 2019
As at
March 31, 2018
(` crore)
32,122.20
7,019.72
39,141.92
19,412.41
24,049.55
43,461.96
(4,320.04)
31,672.43
7,208.45
38,880.88
18,458.11
22,293.33
40,751.44
(1,870.56)
6,943.13
82.43
7,025.56
3,514.19
711.27
4,225.46
2,800.10
6,034.10
130.95
6,165.05
2,869.43
610.57
3,480.00
2,685.05
31,628.26
7,981.01
39,609.27
17,089.27
4,178.26
21,267.53
18,341.74
-
-
-
-
-
-
-
(i) Net assets of Tata Steel BSL Limited as at March 31, 2019, includes equity portion of preference shares of `17,295.82 issued by Tata Steel BSL
Limited to the Company.
362
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 22. Non-controlling interests (Contd.)
Summarised profit and loss information
Particulars
Revenue
Profit/(loss) for the year
Total comprehensive
income for the year
Summarised cash flow information
Particulars
Net cash from/(used in)
operating activities
Net cash from/(used in)
investing activities
Net cash from/(used in)
financing activities
Effect of exchange rate on cash and
cash equivalents
Cash and cash equivalents at the
beginning of the year
Cash and cash equivalents at the
end of the year
Tata Steel UK Limited
Tata Steel Minerals Canada Limited
Tata Steel BSL Limited
Year ended
March 31, 2019
Year ended
March 31, 2018
Year ended
March 31, 2019
Year ended
March 31, 2018
Year ended
March 31, 2019
Year ended
March 31, 2018
(` crore)
22,049.17
(3,274.83)
(3,749.25)
20,632.85
12,064.97
10,607.87
1.67
(48.88)
(48.88)
-
(1,008.64)
(1,008.64)
18,493.07
(881.07)
(872.96)
-
-
-
(` crore)
Tata Steel UK Limited
Tata Steel Minerals Canada Limited
Tata Steel BSL Limited
Year ended
March 31, 2019
Year ended
March 31, 2018
Year ended
March 31, 2019
Year ended
March 31, 2018
Year ended
March 31, 2019
Year ended
March 31, 2018
(1,200.22)
(3,304.20)
(51.27)
225.34
5,458.42
(1,438.44)
(957.39)
(394.77)
(597.16)
(1,315.43)
3,014.30
3,991.68
410.74
218.77
(4,577.49)
(5.17)
46.92
258.76
481.75
629.23
258.76
3.13
48.12
15.95
(0.58)
-
201.75
712.15
48.12
277.65
-
-
-
-
-
-
23. Borrowings
[Item No. V(a)(i) and VI(a)(i), Page 307]
A. Non-current
(a)
Secured
(i)
(ii)
(iii)
Loan from Joint Plant Committee - Steel Development Fund
Term loans from banks/financial institutions
Finance lease obligations
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,564.10
23,458.91
1,324.76
27,347.77
2,494.42
17,825.17
471.29
20,790.88
363
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
23. Borrowings (Contd.)
[Item No. V(a)(i) and VI(a)(i), Page 307]
(b) Unsecured
Bonds and debentures
(i)
(ii) Non-convertible preference shares
(iii)
(iv)
(v) Deferred payment liabilities
(vi) Other loans
Term loans from banks/financial institutions
Finance lease obligations
B. Current
(a)
Secured
(i)
(ii)
(iii) Other Loans
Loans from banks/financial institutions
Repayable on demand from banks/financial institutions
(b) Unsecured
(i)
(ii)
(iii)
(iv)
Preference shares
Loans from banks/financial institutions
Commercial papers
Other loans
(` crore)
As at
March 31, 2019
As at
March 31, 2018
29,509.49
13.31
21,047.72
2,134.08
6.40
283.96
52,994.96
80,342.73
29,456.43
19.97
19,942.61
2,397.51
6.11
175.59
51,998.22
72,789.10
(` crore)
As at
March 31, 2019
As at
March 31, 2018
5,437.52
45.88
-
5,483.40
1.00
5,129.65
171.97
16.06
5,318.68
10,802.08
5,541.48
139.62
37.69
5,718.79
-
9,893.26
73.65
199.28
10,166.19
15,884.98
(i)
As at March 31, 2019, `35,931.48 crore (March 31, 2018: `26,819.90 crore) of the total outstanding borrowings (including current
maturities) were secured by a charge on property, plant and equipment, inventories and receivables.
(ii) The security details of major borrowings as at March 31, 2019 is as below:
(a) Loans from Joint Plant Committee-Steel Development Fund
It is secured by mortgages on, all present and future immovable properties wherever situated and hypothecation of movable assets,
excluding land and building mortgaged in favour of Government of India under the deed of mortgage dated April 13, 1967 and in
favour of Government of Bihar under two deeds of mortgage dated May 11, 1963, immovable properties and movable assets of the Tube
Division, Bearing Division, Ferro Alloys Division and Cold Rolling Complex (West) at Tarapur and all investments and book debts of the
Company subject to the prior charges created and/or to be created in favour of the bankers for securing borrowing for the working capital
requirement and charges created and/or to be created on specific items of machinery and equipment procured/to be procured under
deferred payment schemes/bill re-discounting schemes/asset credit schemes.
364
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
23. Borrowings (Contd.)
[Item No. V(a)(i) and VI(a)(i), Page 307]
The loan is repayable in 16 equal semi-annual instalments after completion of four years from the date of the tranche.
The Company has filed a writ petition before the High Court at Kolkata in February 2006 claiming waiver of the outstanding loan and
interest and refund of the balance lying with Steel Development Fund and the matter is subjudice.
The loan includes funded interest `924.77 crore (March 31, 2018: `855.09 crore).
It includes `1,639.33 crore (March 31, 2018: `1,639.33 crore) representing repayments and interest on earlier loans for which applications
of funding are awaiting sanction and is not secured by charge on movable assets of the Company.
(b) Loans from banks/financial institutions
Majority of the secured borrowings from banks/financial institutions relate to subsidiaries of the Company namely Tata Steel BSL Limited
(formerly Bhushan Steel Limited) and Tata Steel Europe.
The borrowings in Tata Steel BSL Limited are secured by a charge on all its immovable and movable properties both present and future
including movable plant and machinery, spares, tools and accessories, ranking pari passu inter-se. The loan is payable in 18 semi-annual
instalments starting from March 2022.
The borrowings in Tata Steel Europe relate to the senior facility arrangement and are secured by guarantees and debentures granted by
material subsidiaries of Tata Steel Europe (other than Tata Steel Nederland B.V. and its subsidiaries) and by a pledge over the shares in Tata
Steel Nederland B.V.
(iii) The details of major unsecured borrowings as at March 31, 2019 is as below:
(a)
Commercial papers
Commercial papers raised by the Group are short-term in nature ranging between one to three months.
(b) Bonds and debentures
(I) Non-convertible debentures:
The details of debentures issued by the Company is as below:
(i)
(ii)
9.84% p.a. interest bearing 43,150 debentures of face value `10,00,000 each are redeemable at par in 4 equal annual instalments
commencing from February 28, 2031.
10.25% p.a. interest bearing 25,000 debentures of face value `10,00,000 each are redeemable at par in 3 equal annual instalments
commencing from January 6, 2029.
(iii)
10.25% p.a. interest bearing 5,000 debentures of face value `10,00,000 each are redeemable at par in 3 equal annual instalments
commencing from December 22, 2028.
(iv) 8.15% p.a. interest bearing 10,000 debentures of face value `10,00,000 each are redeemable at par on October 1, 2026.
(v)
2.00% p.a. interest bearing 15,000 debentures of face value `10,00,000 each are redeemable at a premium of 85.03% of the face value
on April 23, 2022.
(vi) 9.15% p.a. interest bearing 5,000 debentures of face value `10,00,000 each are redeemable at par on January 24, 2021.
(vii) 11.00% p.a. interest bearing 15,000 debentures of face value `10,00,000 each are redeemable at par on May 19, 2019.
(viii) 10.40% p.a. interest bearing 6,509 debentures of face value `10,00,000 each are redeemable at par on May 15, 2019.
365
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
23. Borrowings (Contd.)
[Item No. V(a)(i) and VI(a)(i), Page 307]
(II) Bonds
ABJA Investment Co. Pte. Ltd. a wholly owned subsidiary of the Company has issued non-convertible bonds that are listed on the Singapore
Stock Exchange and Frankfurt Stock Exchange. Details of the bonds outstanding at the end of the reporting period is as below:
Sl. No. Issued on
Currency
Initial principal due
(in millions)
Outstanding principal (in millions)
Interest rate
Redeemable on
January 2018
July 2014
January 2018
1
2
3
4 May 2013
July 2014
5
USD
USD
USD
SGD
USD
1,000
1,000
300
300
500
1,000
1,000
300
300
500
1,000
1,000
300
300
500
5.45%
5.95%
4.45%
4.95%
4.85%
January 2028
July 2024
July 2023
May 2023
January 2020
As at
March 31, 2019
As at
March 31, 2018
(c) Loans from banks/financial institutions
(I) Details of loans from banks/financial institutions availed by the Company is as below:
(i)
(ii)
Rupee loan amounting `2,500.00 crore (March 31, 2018: `4,450.00 crore) is repayable in 9 quarterly instalments commencing from
March 31, 2023.
Rupee loan amounting `1,047.50 crore (March 31, 2018: `1,485.00 crore) is repayable in 10 semi-annual instalments, the next
instalment is due on November 29, 2022.
(iii)
Rupee loan amounting `584.58 crore (March 31, 2018: `823.84 crore) is repayable in 8 semi-annual instalments, the next instalment
is due on June 15, 2021.
(iv)
Rupee loan amounting `750.00 crore (March 31, 2018: `750.00 crore) is repayable in 3 equal annual instalments commencing
from May 21, 2021.
(v)
USD 7.86 million equivalent to `54.38 crore (March 31, 2018: USD 7.86 million equivalent to `51.24 crore) is repayable on
March 1, 2021.
(vi)
Rupee loan amounting `1,600.00 crore (March 31, 2018: `2,000.00 crore) is repayable in 8 semi-annual instalments, the next
instalment is due on April 30, 2020.
(vii) USD 200.00 million equivalent to `1,383.55 crore (March 31, 2018: USD 200.00 million equivalent to `1,303.65 crore) loan is repayable
in 3 equal annual instalments commencing from February 18, 2020.
(viii) Rupee loan amounting `640.42 crore (March 31, 2018: `646.16 crore) is repayable in 16 semi-annual instalments, the next instalment
is due on August 14, 2019.
(ix)
Euro 16.21 million equivalent to `125.96 crore (March 31, 2018: Euro 21.62 million equivalent to `174.68 crore) loan is repayable in
6 equal semi-annual instalments, the next instalment is due on July 8, 2019.
(x)
Euro 66.87 million equivalent to `519.58 crore (March 31, 2018: Euro 85.98 million equivalent to `694.80 crore) loan is repayable in
7 equal semi-annual instalments, the next instalment is due on April 30, 2019.
(xi)
Rupee loan amounting `1,485.00 crore (March 31, 2018: Nil) is repayable in 19 semi-annual instalments, the next instalment is due
on April 16, 2019.
366
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
23. Borrowings (Contd.)
[Item No. V(a)(i) and VI(a)(i), Page 307]
(II) Details of loans from banks/financial institutions availed by NatSteel Asia Pte Limited a subsidiary of the Company is as below:
(i)
(ii)
USD 1,151.16 million equivalent to `7,963.16 crore (March 31, 2018: Nil) loan is repayable in 3 annual instalments, the next instalment
is due on April 19, 2022.
EUR 418.27 million equivalent to `3,248.41 crore (March 31, 2018: Nil) loan is repayable in 3 annual instalments, the next instalment
is due on April 19, 2022
(d) Finance lease obligations
The Group has taken certain items of plant and machinery on lease for business purpose. In addition, the Group has entered into long-term
arrangements whose fulfilment is dependent on the use of dedicated assets. Some of these arrangements have been assessed as being in
the nature of lease and have been classified as a finance lease.
Finance lease obligations represent the present value of minimum lease payments payable over the lease term. The arrangements have
been classified as secured or unsecured based on the legal form.
(iv) Currency and interest exposure of borrowings including current maturities at the end of the reporting period is as below:
As at March 31, 2019
As at March 31, 2018
Fixed
rate
19,350.08
147.48
972.92
23,094.51
2,005.37
45,570.36
Floating
rate
25,201.05
3,514.88
15,523.15
10,980.10
26.68
55,245.86
Total
44,551.13
3,662.36
16,496.07
34,074.61
2,032.05
1,00,816.22
Fixed
rate
13,635.17
196.48
1,136.68
22,184.41
1,823.48
38,976.22
Floating
rate
13,925.16
3,756.56
16,761.01
17,783.20
944.90
53,170.83
(` crore)
Total
27,560.33
3,953.04
17,897.69
39,967.61
2,768.38
92,147.05
INR
GBP
EURO
USD
Others
Total
INR-Indian Rupees, GBP- Great Britain Pound, USD-United States Dollars.
(a) Others primarily include SGD-Singapore Dollars, CAD-Canadian Dollars and THB-Thai Baht.
(b)
Majority of floating rate borrowings are bank borrowings bearing interest rates based LIBOR, EURIBOR or local official rates. Of the total
floating rate borrowings as at March 31, 2019, `1,037.66 crore (March 31, 2018: `10,083.55 crore) has been hedged using interest rate
swaps and collars, with contracts covering a period of more than one year.
367
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
23. Borrowings (Contd.)
[Item No. V(a)(i) and VI(a)(i), Page 307]
(v) Maturity profile of borrowings including current maturities is as below:
Not later than one year or on demand
Later than one year but not two years
Later than two years but not three years
Later than three years but not four years
Later than four years but not five years
More than five years
Less: Future finance charges
Less: Capitalisation of transaction costs
As at
March 31, 2019
20,877.47
6,756.98
8,335.28
8,093.70
12,011.55
49,261.03
1,05,336.01
3,388.73
1,131.06
1,00,816.22
(` crore)
As at
March 31, 2018
19,681.09
8,853.85
17,995.05
12,589.58
4,412.46
34,260.93
97,792.96
4,088.70
1,557.21
92,147.05
(vi)
Some of the Group’s major financing arrangements include financial covenants, which require compliance to certain debt-equity ratios
and debt coverage ratios by entities within the Group who have availed such borrowings. Additionally, certain negative covenants may
limit the ability of entities within the Group to borrow additional funds or to incur additional liens, and/or provide for increased costs in
case of breach.
24. Other financial liabilities
[Item No. V(a)(iii) and VI(a)(iv), Page 307]
A. Non-current
(a)
(b)
Interest accrued but not due
Creditors for other liabilities
B. Current
Current maturities of long-term borrowings
Current maturities of finance lease obligations
Interest accrued but not due
(a)
(b)
(c)
(d) Unclaimed dividends
(e)
Creditors for other liabilities
(i) Non-current and current creditors for other liabilities include:
(a) creditors for capital supplies and services of `3,717.51 crore (March 31, 2018: `3,219.87 crore).
(b)
liability for employee family benefit scheme `189.87 crore (March 31, 2018: `184.39 crore).
368
(` crore)
As at
March 31, 2019
As at
March 31, 2018
9.57
261.01
270.58
18.17
87.66
105.83
(` crore)
As at
March 31, 2019
As at
March 31, 2018
9,276.95
394.46
848.96
99.11
6,118.35
16,737.83
3,220.66
252.31
817.35
68.81
5,432.65
9,791.78
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
25. Provisions
[Item No. V(b) and VI(b), Page 307]
A. Non-current
Employee benefits
Insurance provisions
(a)
(b)
(c) Others
B. Current
Employee benefits
(a)
(b) Others
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,396.20
661.77
988.24
4,046.21
2,479.01
858.44
1,000.79
4,338.24
As at
March 31, 2019
395.97
852.75
1,248.72
(` crore)
As at
March 31, 2018
442.33
827.31
1,269.64
(i)
(ii)
(iii)
Non-current and current provision for employee benefits include provision for leave salaries `1,127.69 crore (March 31, 2018: `1,082.50
crore) and provision for early separation and disability `1,591.55 crore (March 31, 2018: `1,763.11 crore).
As per the leave policy of the Company and its Indian subsidiaries, an employee is entitled to be paid the accumulated leave balance on
separation. The Company and its Indian subsidiaries present provision for leave salaries as current and non-current based on actuarial
valuation considering estimates of availment of leave, separation of employee, etc.
Insurance provisions relate to Crucible Insurance Company which underwrites marine cargo, public liability and retrospective hearing
impairment policies of Tata Steel Europe, a wholly owned indirect subsidiary of the Company. These provisions represent losses incurred
but not yet reported in respect of risks retained by the Group rather then passed to third party insurers and include amounts in relation to
certain disease insurance claims. Such provisions are subject to regular review and are adjusted as appropriate. The value of final insurance
settlements is uncertain and so is the timing of the expenditure.
(iv) Non-current and current other provisions primarily include:
(a)
provision for compensatory afforestation, mine closure and rehabilitation obligations and other environmental remediation obligations
`1,046.50 crore (March 31, 2018: `906.92 crore). These amounts become payable upon closure of the mines/sites and are expected
to be incurred over a period of 1 to 33 years.
(b)
provision in respect of onerous leases amounting to `249.65 crore (March 31, 2018: `273.80 crore). The outstanding term of these
leases ranges between 1 to 14 years.
369
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
25. Provisions (Contd.)
[Item No. V(b) and VI(b), Page 307]
(v) The details of movement in provision balances is as below:
Year ended March 31, 2019
Balance at the beginning of the year
Recognised/(released) during the year (i)
Disposal of group undertakings
Utilised during the year
Classified as held for sale
Exchange differences on consolidation
Balance at the end of the year
(i) Includes provisions capitalised during the year in respect of restoration obligations.
Year ended March 31, 2018
Balance at the beginning of the year
Recognised/(released) during the year
Disposal of group undertakings
Utilised during the year
Exchange differences on consolidation
Balance at the end of the year
26. Deferred income
[Item No. V(d) and VI(d), Page 307]
A. Non-current
(a) Grants relating to property, plant and equipment
(b)
(c) Others
Revenue grants
370
Insurance
Provisions
858.44
(131.98)
-
(50.83)
-
(13.86)
661.77
Insurance
Provisions
882.46
(81.41)
-
(54.95)
112.34
858.44
Others
1,828.10
290.48
(12.26)
(233.47)
(0.23)
(31.63)
1,840.99
Others
1,402.44
396.35
(2.79)
(87.89)
119.99
1,828.10
(` crore)
Total
2,686.54
158.50
(12.26)
(284.30)
(0.23)
(45.49)
2,502.76
(` crore)
Total
2,284.90
314.94
(2.79)
(142.84)
232.33
2,686.54
As at
March 31, 2019
804.37
32.14
70.29
906.80
(` crore)
As at
March 31, 2018
1,452.30
10.61
63.67
1,526.58
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
26. Deferred income (Contd.)
[Item No. V(d) and VI(d), Page 307]
B. Current
(a) Grants relating to property, plant and equipment
(b) Others
As at
March 31, 2019
10.48
6.03
16.51
(` crore)
As at
March 31, 2018
0.83
5.38
6.21
Grants relating to property, plant and equipment relates to duty saved on import of capital goods and spares under the EPCG scheme.
Under the scheme, certain entities within the Group are committed to export prescribed times of the duty saved on import of capital goods
over a specified period of time. In case such commitments are not met, the entities would be required to pay the duty saved along with interest
to the regulatory authorities. Such grants recognised are released to the consolidated statement of profit and loss based on fulfilment of
related export obligations.
During the year, an amount of `635.76 crore (2017-18: `528.20 crore) was released from deferred income to the consolidated statement of
profit and loss on fulfilment of export obligations.
27. Other liabilities
[Item No. V(f ) and VI(f ), Page 307]
A. Non-current
(a)
Statutory dues
(b) Other credit balances
B. Current
Advances received from customers
(a)
Employee recoveries and employer contributions
(b)
(c)
Statutory dues
(d) Other credit balances
(` crore)
As at
March 31, 2019
As at
March 31, 2018
19.77
499.46
519.23
35.47
322.69
358.16
As at
March 31, 2019
769.60
161.08
6,931.75
49.78
7,912.21
(` crore)
As at
March 31, 2018
583.70
100.35
6,215.59
32.62
6,932.26
(i)
Statutory dues primarily relate to payables in respect of GST, excise duties, service tax, sales tax, VAT, tax deducted at source and royalties.
371
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
28. Trade payables
[Item No. VI(a)(ii), Page 307]
A. Total outstanding dues of micro and small enterprises
Dues of micro and small enterprises
B. Total outstanding dues of creditors other than micro and small enterprises
(a)
(b)
Creditors for supplies and services
Creditors for accrued wages and salaries
29. Revenue from operations
[Item No. I, Page 308]
(a)
Sale of products
(b)
Sale of power and water
Income from services
(c)
(d) Other operating revenues(ii)
As at
March 31, 2019
169.74
169.74
As at
March 31, 2019
17,100.42
4,446.80
21,547.22
(` crore)
As at
March 31, 2018
32.21
32.21
(` crore)
As at
March 31, 2018
15,968.40
4,413.20
20,381.60
Year ended
March 31, 2019
1,52,843.66
1,727.58
120.60
2,977.15
1,57,668.99
(` crore)
Year ended
March 31, 2018
1,21,008.92
1,698.35
23.47
1,378.95
1,24,109.69
(i) Revenue from contracts with customers disaggregated on the basis of geographical regions and major businesses is as below:
India
(a)
(b) Outside India
Steel
Power and water
(a)
(b)
(c) Others
Year ended
March 31, 2019
79,605.15
75,086.69
1,54,691.84
Year ended
March 31, 2019
142,483.73
1,727.58
10,480.53
1,54,691.84
(` crore)
Year ended
March 31, 2018
55,647.26
67,083.48
1,22,730.74
(` crore)
Year ended
March 31, 2018
112,666.22
1,698.35
8,366.17
1,22,730.74
Revenue outside India includes Asia excluding India `8,895.30 crore (2017-18: `6,844.47 crore), UK `14,767.65 crore (2017-18: `13,583.51
crore) and other European countries `41,123.35 crore (2017-18: `38,904.30 crore).
(ii)
Other operating revenues include export incentives and deferred income released to consolidated statement of profit and loss on
fulfilment of export obligations under the EPCG scheme.
372
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
30. Other income
[Item No. II, Page 308]
(a) Dividend income
(b)
(c)
(d) Gain/(loss) on sale of property, plant and equipment including intangible assets (net of loss on
Interest income
Net gain/(loss) on sale/fair value changes of mutual funds
assets sold/scrapped/written off )
(e) Gain/(loss) on cancellation of forwards, swaps and options
(f ) Other miscellaneous income
Year ended
March 31, 2019
34.19
316.64
708.96
266.50
36.95
57.34
1,420.58
(` crore)
Year ended
March 31, 2018
39.47
249.76
680.76
(50.23)
(79.33)
40.67
881.10
(i)
Dividend income includes income from investments carried at fair value through other comprehensive income of `19.58 crore
(2017-18: `18.59 crore).
(ii)
Interest income includes:
(a)
income from financial assets carried at amortised cost of `315.24 crore (2017-18: `239.41crore).
(b)
income from financial assets carried at fair value through profit and loss `1.40 crore (2017-18: `10.35 crore).
31. Employee benefits expense
[Item No. IV(d), Page 308]
(a)
(b)
(c)
Salaries and wages
Contribution to provident and other funds
Staff welfare expenses
Year ended
March 31, 2019
15,382.93
2,719.49
656.45
18,758.87
(` crore)
Year ended
March 31, 2018
13,751.40
2,741.36
477.15
16,969.91
During the year ended March 31, 2019, the Company has recognised an amount of `27.06 crore (2017-18: `19.04 crore) as remuneration to key
managerial personnel. The details of such remuneration is as below:
(a) Short-term employee benefits
(b) Post-employment benefits
(c) Other long-term employee benefits
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
22.05
4.88
0.13
27.06
19.03
(0.02)
0.03
19.04
373
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
32. Finance costs
[Item No. IV(e), Page 308]
Interest expense on:
(a) Bonds, debentures, bank borrowings and others
(b) Finance leases
Less: Interest capitalised
33. Depreciation and amortisation expense
[Item No. IV(f ), Page 308]
Depreciation of tangible assets and amortisation of intangible assets
Less: Reclassified to discontinued operations
Less: Amount released from grants received
34. Other expenses
[Item No. IV(g), Page 308]
Consumption of stores and spares
Repairs to buildings
Repairs to machinery
Relining expenses
Fuel oil consumed
Purchase of power
Conversion charges
Freight and handling charges
Rent
Royalty
Rates and taxes
Insurance charges
(a)
(b)
(c)
(d)
(e)
(f )
(g)
(h)
(i)
(j)
(k)
(l)
(m) Commission, discounts and rebates
(n) Allowance for credit losses/provision for advances
(o)
(p) Others
Excise duty (including recovered on sales)
374
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
7,537.44
328.67
7,866.11
206.01
7,660.10
5,166.49
403.58
5,570.07
115.33
5,454.74
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
7,592.44
237.49
13.12
7,341.83
5,974.54
219.96
12.88
5,741.70
Year ended
March 31, 2019
11,160.14
133.23
6,672.15
87.90
451.20
4,865.36
2,680.86
8,388.65
3,454.91
2,191.26
1,485.19
272.24
259.88
173.90
0.21
8,133.64
50,410.72
(` crore)
Year ended
March 31, 2018
8,439.89
98.97
5,707.77
52.29
350.81
4,089.62
2,656.87
7,950.18
2,378.54
1,650.45
1,234.83
282.37
255.22
93.88
860.62
4,368.82
40,471.13
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
34. Other expenses (Contd.)
[Item No. IV(g), Page 308]
(i) Others include:
(a) net foreign exchange loss `785.89 crore (2017-18: gain `1,839.41 crore)
(b) donations to electoral trusts `175.00 crore (2017-18: Nil)
(ii)
Revenue expenditure charged to the consolidated statement of profit and loss in respect of research and development activities
undertaken during the year is `857.21 crore (2017-18: `672.28 crore)
35. Exceptional items
[Item No. VII, Page 308]
Exceptional items are those which are considered for separate disclosure in the financial statements considering their size, nature or
incidence. Such items included within the consolidated statement of profit and loss are detailed below:
(a)
(b)
(c)
(d)
(e)
(f )
Profit on sale of subsidiaries and non-current investments `180.13 crore (2017-18: Nil) primarily includes profit on sale of investment
in TRL Krosaki Refractories Ltd, an associate of the Company.
Provision for impairment of investments/doubtful advances `172.12 crore is primarily in respect of amounts paid to public bodies
paid under protest. Provision recognised for the year ended March 31, 2018 primarily relates to provision in respect of advances paid
for repurchase of equity shares in Tata Teleservices Limited from NTT Docomo Inc.
Provision for impairment of non-current assets relate to impairment recognised in respect of property, plant and equipment
(including capital work-in-progress and capital advances) and intangible assets `9.57 crore (2017-18: `903.01 crore). The impairment
recognised is contained within Bamnipal Steel (including Tata Steel BSL) segment (2017-18: Rest of the World). The impairment
recognised is shown as an exceptional item in segment reporting and does not form part of the segment result.
Provision for demands and claims `328.64 crore (2017-18: `3,213.68 crore) is in respect of certain statutory demands and claims
relating to environment and mining matters.
Employee separation compensation `35.33 crore (2017-18: `107.60 crore) relates to provisions recognised in respect of early
separation of employee within Indian operations.
Restructuring and other provisions `244.56 crore primarily include write back of liabilities no longer required (2017-18: `13,850.66
crore primarily represents gain arising on modification of benefit structure for members of the new pension scheme versus their
benefits under Tata Steel Europe’s British Steel Pension Scheme).
36. Discontinued operations
[Item No. XI, Page 308]
On January 28, 2019, the Group entered into definitive agreements with HBIS Group Co. Ltd. (“HBIS”) to divest its entire equity stake in Nat
Steel Holdings Pte. Ltd. (“NSH”) and Tata Steel (Thailand) Public Company Ltd. (“TSTH”). As per the agreement, the divestment will be made
to a company in which 70% equity shares will be held by an entity controlled by HBIS and 30% will be held by the Group.
In accordance with Ind AS 105, “Non-current Assets Held for Sale and Discontinued Operations”, the businesses have been classified as
discontinued operations for the year ended March 31, 2019. Results for the year ended March 31, 2018 has been restated accordingly.
On February 9, 2017, Tata Steel UK Limited, an indirect subsidiary of the Company announced a definitive sales agreement to dispose off
the trade and other assets of its Speciality Steels business. The disposal was completed on May 1, 2017. The results of this business was
classified as discontinued operations till the date of sale during the year ended March 31, 2018.
375
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
36. Discontinued operations (Contd.)
[Item No. XI, Page 308]
The results of discontinued operations in each of the periods is set out below:
Revenue from operations
I
II Other income
III Total income
IV Expenses:
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c)
Changes in inventories of finished and semi-finished goods, stock-in-trade and
work-in-progress
(d) Employee benefits expense
(e) Finance costs
(f ) Depreciation and amortisation expense
(g) Other expenses
Total expenses
V Share of profit/(loss) of joint ventures and associates
VI Profit/(loss) before exceptional items and tax (III-IV+V)
VII Exceptional items
VIII Profit/(loss) before tax (VI+VII)
IX Tax expense:
(a) Current tax
(b) Deferred tax
Total tax expense
X Profit/(loss) after tax
XI Profit/(loss) on disposal of discontinued operations
XII Profit/(loss) after tax from discontinued operations (X+XI)
XIII Other comprehensive income/(loss)
(A) (i) Items that will not be reclassified subsequently to profit and loss:
(a) Remeasurement gain/(loss) on post-employment defined benefit plans
(b) Fair value changes of investments in equity shares
(ii) Income tax on items that will not be reclassified subsequently to profit and loss
(B) (i) Items that will be reclassified subsequently to profit and loss:
(a) Foreign currency translation differences
(b) Fair value changes of cash flow hedges
(c) Share of equity accounted investees
(ii) Income tax on items that will be reclassified subsequently to profit and loss
Total other comprehensive income/(loss)
XIV Total comprehensive income/(loss) from discontinued operations (XII + XIII)
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
9,632.74
2.67
9,635.41
396.07
5,935.93
329.57
597.11
81.78
237.49
2,138.34
9,716.29
(2.43)
(83.31)
(15.29)
(98.60)
12.19
(21.83)
(9.64)
(88.96)
-
(88.96)
(0.22)
10.94
(2.03)
22.48
2.72
-
-
33.89
(55.07)
9,065.83
(13.45)
9,052.38
529.05
5,628.22
(164.65)
687.50
47.17
219.96
1,874.95
8,822.20
(23.21)
206.97
-
206.97
22.54
(9.47)
13.07
193.90
5.15
199.05
1.81
13.90
(0.93)
28.57
1.15
0.47
-
44.97
244.02
Profit/(loss) from discontinued operations for the year ended March 31, 2018, includes reversal of provision amounting to `49.28 crore held in
respect of Long Products business in the UK classified as held for sale in the earlier years.
During the year ended March 31, 2019, discontinued operations resulted in an inflow of `550.43 crore (March 31, 2018: inflow of `244.96 crore)
to the Group’s net operating cash flows, an outflow of `76.78 crore (March 31, 2018: outflow of `56.68 crore) in respect of investing activities
and an outflow of `422.45 crore (March 31, 2018: outflow of `388.37 crore) in respect of financing activities.
376
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
37. Earnings per share
[Item No. XVIII, XIX and XX, Page 309]
The following table reflects the profit and shares data used in the computation of basic and diluted earnings per share (EPS).
(a)
Profit/(loss) after tax from continuing operations
Less: Distribution on hybrid perpetual securities (net of tax)
Profit/(loss) after tax from continuing operations attributable to ordinary shareholders- for basic
and diluted EPS (A)
Profit/(loss) after tax from discontinued operations attributable to ordinary shareholders- for
basic and diluted EPS (B)
Profit/(loss) after tax from continuing and discontinued operations attributable to ordinary
shareholders - for basic and diluted EPS (A+B)
(b)
Weighted average number of Ordinary Shares for basic EPS
Add: Adjustment for shares held in abeyance
Weighted average number of Ordinary Shares and potential Ordinary Shares for diluted EPS
(c)
Nominal value of Ordinary Share (`)
(d)
Basic earnings per Ordinary Share (`) - continuing operations
Diluted earnings per Ordinary Share (`) - continuing operations
Basic earnings per Ordinary Share (`) - discontinued operations
Diluted earnings per Ordinary Share (`) - discontinued operations
Basic earnings per Ordinary Share (`) - continuing and discontinued operations
Diluted earnings per Ordinary Share (`) - continuing and discontinued operations
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
10,283.45
173.13
10,110.32
13,255.26
173.43
13,081.83
(65.12)
179.07
10,045.20
13,260.90
Nos.
1,14,47,45,815
1,37,496
1,14,48,83,311
Nos.
1,03,50,31,235
1,55,646
1,03,51,86,881
10.00
88.32
88.31
(0.57)
(0.57)
87.75
87.74
10.00
126.39
126.37
1.73
1.73
128.12
128.10
(i)
(ii)
Basic and diluted earnings per share for continuing and discontinued operations for the year ended March 31, 2018 has been restated to
give effect of businesses classified as discontinued operations.
As at March 31, 2019, 5,81,95,359 options (March 31,2018: 28,69,886) in respect of partly paid shares were excluded from weighted
average number of Ordinary Shares for the computation of diluted earnings per share as these were anti-dilutive.
377
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
38. Employee benefits
A. Defined contribution plans
The Group participates in a number of defined contribution plans on
behalf of relevant personnel. Any expense recognised in relation to
these schemes represents the value of contributions payable during
the period by the Group at rates specified by the rules of those plans.
The only amounts included in the consolidated balance sheet are
those relating to the prior months contributions that were not due to
be paid until after the end of the reporting period.
The major defined contribution plans operated by
Group are as below:
the
(a) Provident fund and pension
The Company and its Indian subsidiaries provide provident fund
benefits for eligible employees as per applicable regulations
wherein both employees and the Company/Indian subsidiaries
make monthly contributions at a specified percentage of the
eligible employee’s salary. Contributions under such schemes
are made either to a provident fund set up as an irrevocable
trust by the Company/Indian subsidiaries to manage the
investments and distribute the amounts entitled to employees
or to state managed funds.
Benefits provided under plans wherein contributions are made
to state managed funds and the Company/Indian subsidiaries
do not have a future obligation to make good shortfall, if any, is
treated as a defined contribution plan.
(b) Superannuation fund
its
The Company and some of
Indian subsidiaries have
a superannuation plan for the benefit of its employees.
Employees who are members of the superannuation plan
are entitled to benefits depending on the years of service
and salary drawn.
irrevocable trusts are generally maintained for
Separate
employees covered and entitled to benefits. The Company
and its Indian subsidiaries contribute up to 15% of the eligible
employees’ salary or `1,50,000, whichever is lower, to the trust
every year. Such contributions are recognised as an expense as
and when incurred. The Company and its Indian subsidiaries
does not have any further obligations beyond this contribution.
The contributions recognised as an expense in the consolidated
statement of profit and loss during the year on account of the
above defined contribution plans amounted to `1,369.81 crore
(2017-18: `1,185.05 crore).
B. Defined benefit plans
The defined benefit plans operated by the Group are as below:
(a) Provident fund and pension
Provident
fund benefits provided under plans wherein
contributions are made to an irrevocable trust set up by the
Company/Indian subsidiaries to manage the investments and
distribute the amounts entitled to employees are treated as
a defined benefit plan as the Company/Indian subsidiaries
are obligated to provide the members a rate of return which
should, at the minimum, meet the interest rate declared
by Government administered provident fund. A part of the
Company’s/Indian subsidiaries’ contribution is transferred to
Government administered pension fund. The contributions
made by the Company/Indian subsidiaries and the shortfall of
interest, if any, are recognised as an expense in the consolidated
statement of profit and loss under employee benefits expense.
In accordance with an actuarial valuation of provident fund
liabilities of Company and its Indian subsidiaries based on
guidance issued by Actuarial Society of India and based on the
assumptions as mentioned below, there is no deficiency in the
interest cost as the present value of the expected future earnings
of the fund is greater than the expected amount to be credited
to the individual members based on the expected guaranteed
rate of interest of Government administered provident fund.
Key assumptions used for actuarial valuation are as below:
As at
March 31, 2019
7.50%
8.60% - 8.65%
8.60% - 8.75%
As at
March 31, 2018
7.50%
8.55%
8.55% - 8.75%
Discount rate
Guaranteed rate of return
Expected rate of
return on investment
(b) Retiring gratuity
The Company and its Indian subsidiaries have an obligation
towards gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides for a lump-sum payment
to vested employees at retirement, death while in employment
or on termination of employment of an amount equivalent
to 15 to 30 days salary payable for each completed year
of service. Vesting occurs upon completion of five years of
service. The Company and its Indian subsidiaries make annual
contributions to gratuity funds established as trusts or insurance
companies. The Company and its Indian subsidiaries accounts
for the liability for gratuity benefits payable in the future based
on an year-end actuarial valuation.
378
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
38. Employee benefits (Contd.)
(c) Post-retirement medical benefits
Under this unfunded scheme, employees of the Company and
some of its subsidiaries receive medical benefits subject to
certain limits on amounts of benefits, periods after retirement
and types of benefits, depending on their grade and location at
the time of retirement. Employees separated from the Company
and its subsidiaries under an early separation scheme, on
medical grounds or due to permanent disablement are also
covered under the scheme. The Company and such subsidiaries
account for the liability for post-retirement medical scheme
based on an year-end actuarial valuation.
(d) Tata Steel Europe’s pension plan
Tata Steel Europe, a wholly owned indirect subsidiary of the
Company, operates a number of defined benefit pension
and post-retirement schemes. The benefits offered by these
schemes are largely based on pensionable pay and years of
service at retirement. With the exception of certain unfunded
arrangements, the assets of these schemes are held
in
administered funds that are legally separated from Tata Steel
Europe. For those pension schemes set up under a trust, the
trustees are required by law to act in the best interests of the
schemes beneficiaries in accordance with the scheme rules
and relevant pension legislation. The trustees are generally
responsible for the investment policy with regard to the assets
of the fund, after consulting with the sponsoring employer.
Tata Steel Europe accounts for all pension and post-retirement
defined benefit arrangements using Ind AS 19 ‘Employee
Benefits’, with independent actuaries being used to calculate the
costs, assets and liabilities to be recognised in relation to these
schemes. The present value of the defined benefit obligation,
the current service cost and past service costs are calculated
by these actuaries using the projected unit credit method.
However, the ongoing funding arrangements of each scheme, in
place to meet their long-term pension liabilities, are governed by
the individual scheme documentation and national legislation.
The principal defined benefit pension scheme of Tata Steel
Europe as at March 31, 2019 is the BSPS, which is the main
scheme for historic and present employees based in the UK.
In line with the conditions agreed as part of a Regulated
Apportionment Arrangement (‘RAA’) on September 11, 2017,
assets and liabilities in respect of approximately 80,000 electing
members of the BSPS were transferred from the old scheme
on March 28, 2018 ahead of that scheme entering a Pension
Protection Fund (‘PPF’) assessment period the following day.
The new scheme (which retains the title ‘British Steel Pension
Scheme’) is sponsored by Tata Steel UK Limited (‘TSUK’).
Although TSUK has a legal obligation to fund any future deficit,
a key condition of the new BSPS going forward was that it was
sufficiently well funded to meet the scheme’s modified liabilities
on a self-sufficiency basis with a buffer to cover residual risks.
With the assets that were transferred, the new scheme is well
positioned to pay benefits securely on a low risk basis without
recourse to TSUK. This risk includes economic risks (such as
interest rate risk and inflation risk), demographic risks (for
example members living longer than expected), and legal risks
(for example changes in legislation that may increase liabilities).
TSUK has worked with the Trustee to develop and implement
an Integrated Risk Management (‘IRM’) framework to manage
these risks. The framework provides ongoing monitoring of the
key investment, funding and covenant risks facing the scheme
and tracks progress against the scheme’s journey plan and
target. Measures taken by the Trustee to manage risk include the
use of asset-liability matching techniques to reduce interest rate
risk, and investment in assets that are expected to be correlated
to future inflation in the longer term to mitigate inflation risk.
In particular, the scheme’s investment policy has regard for
the maturity and nature of the scheme’s liabilities and seeks to
match a large part of the scheme’s liabilities with secure bonds,
whilst achieving a higher long-term return on a small proportion
of equity and other investments. The BSPS and Open Trustee
Limited (‘OTL’), acting on behalf of the members who transferred
to the PPF, hold an anti-embarrassment non-controlling interest
in TSUK agreed as part of the RAA. The total non-controlling
interest in TSUK reduced from 33.33% as at March 31, 2018 (split
BSPS 27.70%; OTL 5.63%) to 0.33% as at March 31, 2019 (split
BSPS 0.27%; OTL 0.06%) due to an equity issuance made by
TSUK on March 20, 2019 to strengthen TSUK’s financial position.
No value has been included in the BSPS’s assets at March 31,
2019 (2018: nil) for its interest in TSUK as the estimated equity
value of TSUK is zero (March 31,2018: zero).
379
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
38. Employee benefits (Contd.)
(e) Other defined benefits
Other benefits provided under unfunded schemes include
pension payable to directors on their retirement, farewell
gifts, post-retirement lumpsum benefit and reimbursement of
packing and transportation charges to the employees based on
their last drawn salary.
The defined benefit plans expose the Group to a number of
actuarial risks as below:
(i)
Investment risk: The present value of the defined benefit
plan liability is calculated using a discount rate determined
by reference to government/high quality bond yields.
If the return on plan asset is below this rate, it will create
a plan deficit.
(ii)
Interest risk: A decrease in the bond interest rate will
increase the plan liability. However, this will be partially
offset by an increase in the value of plan’s debt investments.
(iii) Salary risk: The present value of the defined benefit plan
liability is calculated by reference to the future salaries of
plan participants. As such, an increase in salary of the plan
participants will increase the plan’s liability.
(iv) Longevity risk: The present value of the defined benefit
plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after
their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.
(v)
Inflation risk: Some of the Group’s Pension obligations
are linked to inflation, and higher inflation will lead to
higher liabilities although, in most cases, caps on the level
of inflationary increases are in place to protect the plan
against extreme inflation.
380
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
38. Employee benefits (Contd.)
C. Details of defined benefit obligations and plan assets:
(a) Retiring gratuity:
(i) The following table sets out the amounts recognised in the consolidated financial statements in respect of retiring gratuity:
Change in defined benefit obligations:
Obligation at the beginning of the year
Addition relating to acquisitions
Current service cost
Interest cost
Benefits paid
Remeasurement (gain)/loss
Adjustment for arrear wage settlement
Obligation at the end of the year
Change in plan assets:
Fair value of plan assets at the beginning of the year
Addition relating to acquisitions
Interest income
Remeasurement gain/(loss) excluding amount included within employee benefits expense
Employers' contribution
Benefits paid
Fair value of plan assets at the end of the year
Amounts recognised in the consolidated balance sheet consist of:
Fair value of plan assets
Present value of obligations
Recognised as:
Retirement benefit assets - Non-current
Retirement benefit assets - Current
Retirement benefit obligations - Non-current
Retirement benefit obligations - Current
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,966.47
56.67
143.63
205.38
(257.31)
(17.85)
-
3,096.99
2,981.18
0.31
144.26
198.80
(282.60)
(163.03)
87.55
2,966.47
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
2,898.34
22.55
211.58
29.73
72.05
(257.31)
2,976.94
2,745.34
0.27
190.40
8.21
236.72
(282.60)
2,898.34
(` crore)
As at
March 31, 2019
As at
March 31, 2018
2,976.94
3,096.99
(120.05)
0.44
4.38
(120.36)
(4.51)
(120.05)
2,898.34
2,966.47
(68.13)
0.35
2.91
(67.70)
(3.69)
(68.13)
381
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
38. Employee benefits (Contd.)
Expense/(gain) recognised in the consolidated statement of profit and loss consist of:
Employee benefits expense:
Current service cost
Net interest expense
Other comprehensive income:
Return on plan assets excluding amount included in employee benefits expense
Actuarial (gain)/loss arising from changes in demographic assumptions
Actuarial (gain)/loss arising from changes in financial assumptions
Actuarial (gain)/loss arising from changes in experience adjustments
Expense/(gain) recognised in the consolidated statement of profit and loss
(ii) Fair value of plan assets by category of investments is as below:
Asset category (%)
Quoted
Equity instruments
Debt instruments
Unquoted
Debt instruments
Insurance products
Others
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
143.63
(6.20)
137.43
(29.73)
(8.62)
(7.32)
(1.91)
(47.58)
89.85
144.26
8.40
152.66
(8.21)
(37.89)
(100.93)
(24.21)
(171.24)
(18.58)
As at
March 31, 2019
As at
March 31, 2018
(%)
0.05
18.43
18.48
0.96
77.12
3.44
81.52
100.00
0.01
20.89
20.90
1.02
68.69
9.39
79.10
100.00
The Group’s investment policy is driven by considerations of maximising returns while ensuring credit quality of debt instruments. The asset
allocation for plan assets is determined based on prescribed investment criteria and is also subject to other exposure limitations. The Group
evaluates the risks, transaction costs and liquidity for potential investments. To measure plan assets performance, the Group compares actual
returns for each asset category with published benchmarks.
382
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 38. Employee benefits (Contd.)
(iii) Key assumptions used in the measurement of retiring gratuity is as below:
Discount rate
Rate of escalation in salary
As at
March 31, 2019
7.50 - 7.71 %
4.00 - 10.00 %
(%)
As at
March 31, 2018
7.50 - 8.00 %
4.00 - 10.00 %
(iv) Weighted average duration of the retiring gratuity obligation ranges between 6 to 16 years (March 31, 2018: 6 to 23 years).
(v) The Group expects to contribute `86.49 crore to the plan during the financial year 2019-20.
(vi) The table below outlines the effect on retiring gratuity obligation in the event of a decrease/increase of 1% in the assumptions used.
As at March 31, 2019
Assumption
Discount rate
Rate of escalation in salary
As at March 31, 2018
Assumption
Discount rate
Rate of escalation in salary
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `194.58 crore, increase by `221.91 crore
Increase by `218.74 crore, decrease by `194.53 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `191.44 crore, increase by `216.40 crore
Increase by `214.20 crore, decrease by `190.33 crore
The above sensitivities may not be representative of the actual change as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
(b) Tata Steel Europe’s Pension Plan
(i)
The following table sets out the amounts recognised in the consolidated financial statements in respect of Tata Steel Europe’s pension plans.
Change in defined benefit obligations:
Obligation at the beginning of the year
Current service cost
Costs relating to scheme change
Interest cost
Past service cost
Remeasurement (gain)/loss
Employers' contribution
Settlements
Benefits paid
Obligations of companies disposed off
Exchange differences on consolidation
Obligation at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
84,834.48
183.24
18.32
2,125.59
-
3,085.94
-
-
(10,673.74)
(127.66)
(1,472.32)
77,973.85
121,946.21
128.76
180.26
3,021.56
(15,708.68)
1.76
(8.58)
(14,240.82)
(23,588.78)
-
13,102.79
84,834.48
383
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 38. Employee benefits (Contd.)
Change in plan assets:
Fair value of plan assets at the beginning of the year
Interest income
Remeasurement gain/(loss)
Employers' contribution
Settlements
Benefits paid
Exchange differences on consolidation
Fair value of plan assets at end of the year
Amounts recognised in the consolidated balance sheet consist of:
Fair value of plan assets
Present value of obligations
Recognised as:
Retirement benefit assets - Non-current
Retirement benefit obligations - Current
Retirement benefit obligations - Non-current
Expense/(gain) recognised in the consolidated statement of profit and loss consist of:
Employee benefits expense:
Current service cost
Past service costs
Net interest expense/(income)
Costs relating to scheme changes
Exceptional items:
Past service costs
Settlements
Costs relating to scheme changes
Other comprehensive income:
Return on plan assets excluding amount included in employee benefits expense
Actuarial (gain)/loss arising from changes in demographic assumptions
Actuarial (gain)/loss arising from changes in financial assumptions
Actuarial (gain)/loss arising from changes in experience adjustments
Expense/(gain) recognised in the consolidated statement of profit and loss
384
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
1,04,248.01
2,629.50
2,382.12
45.81
-
(10,655.41)
(1,843.01)
96,807.02
1,22,611.14
3,098.82
(1,733.96)
4,910.04
(15,597.09)
(23,563.03)
14,522.09
1,04,248.01
(` crore)
As at
March 31, 2019
As at
March 31, 2018
96,807.02
77,973.85
18,833.17
19,963.75
(7.90)
(1,122.68)
18,833.17
1,04,248.01
84,834.48
19,413.53
20,570.52
(9.41)
(1,147.58)
19,413.53
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
183.24
-
(503.91)
18.32
-
-
-
(302.35)
(2,382.12)
(1,179.06)
3,818.84
446.16
703.82
401.47
128.76
(17.17)
(77.26)
-
(15,691.51)
1,356.27
180.26
(14,120.65)
1,733.96
-
(4,068.81)
4,070.57
1,735.72
(12,384.93)
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 38. Employee benefits (Contd.)
(ii) Fair value of plan assets by category of investments is as below:
Assets category (%)
Quoted
(a)
(b)
(c)
(d)
(e) Others
Equity - UK Entities
Equity - Non-UK Entities
Bonds - Fixed rate
Bonds - Indexed linked
Unquoted
(a)
(b) Others
Property
(iii) Key assumptions used in the measurement of pension benefits is as below:
Discount rate
Rate of escalation in salary
Inflation rate
As at
March 31, 2019
As at
March 31, 2018
(%)
0.59
7.41
49.86
28.05
0.04
85.95
12.75
1.30
14.05
100.00
0.69
7.64
45.55
31.74
0.21
85.83
11.46
2.71
14.17
100.00
As at
March 31, 2019
0.80 - 3.95%
0.00 - 2.00%
1.00 - 3.20%
As at
March 31, 2018
1.37 - 4.10%
0.00 - 2.00%
1.00 - 3.10%
Demographic assumptions are set having regard to the latest trends in life expectancy, plan experience and other relevant data, including
externally published actuarial information within each national jurisdiction. The assumptions are reviewed and updated as necessary as part
of the periodic actuarial funding valuations of the individual pension and post-retirement plans. For the BSPS, the liability calculations as at
March 31, 2019 use the Self-Administered Pension Schemes 2 (SAPS 2) base tables, S2NMA/S2DFA with the 2015 CMI projections with a 1.50%
p.a. (2017-18: 1.50% p.a.) long-term trend applied from 2007 to 2016 [(adjusted by a multiplier of 1.15 p.a. (2017-18: 1.15 p.a.) for males and
1.21 p.a. (2017-18: 1.21 p.a.) for females)]. In addition, future mortality improvements are allowed for in line with the 2018 CMI Projections with
a long-term improvement trend of 1% per annum, a smoothing parameter of 7.0 and an initial addition parameter of 0%. This indicates that
today's 65 year old male member is expected to live on average to approximately 86 years (2017-18: 86.2 years) of age and a male member
reaching age 65 in 15 years time is then expected to live on average to 86 years (2017-18: 87) of age.
(iv) Weighted average duration of the pension obligations is 14.5 years (March 31, 2018: 14.5 years).
(v) The Group expects to contribute Nil to the plan during the financial year 2019-20.
(vi) The table below outlines the effect on pension obligations in the event of a decrease/increase of 10 bps in the assumptions used.
385
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 38. Employee benefits (Contd.)
As at March 31, 2019
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
Mortality rate
As at March 31, 2018
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
Mortality rate
Change in assumption
Increase by 10 bps, decrease by 10 bps
Increase by 10 bps, decrease by 10 bps
Increase by 10 bps, decrease by 10 bps
One year increase/decrease in life expectancy
Impact on obligation
Decrease by 1.4%, increase by 1.4%
Not applicable as pensionable earnings is capped
Increase by 1.0%, decrease by 1.0%
Increase by 3%, decrease by 3%
Change in assumption
Increase by 10 bps, decrease by 10 bps
Increase by 10 bps, decrease by 10 bps
Increase by 10 bps, decrease by 10 bps
One year increase/decrease in life expectancy
Impact on obligation
Decrease by 1.4%, increase by 1.4%
Not applicable as pensionable earnings is capped
Increase by 1.0%, decrease by 1.0%
Increase by 5.1%, decrease by 5.1%
The above sensitivities may not be representative of the actual change as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
(c) Post-retirement medical and other defined benefit plans
(i)
The following table sets out the amounts recognised in the consolidated financial statements in respect of post-retirement medical and
other defined benefit plans.
Change in defined benefit obligations:
Obligations at the beginning of the year
Current service cost
Past service cost
Interest costs
Remeasurement (gain)/loss:
(i)
(ii)
(iii) Actuarial (gain)/loss arising from changes in experience adjustments
Benefits paid
Classified as held for sale
Exchange differences on consolidation
Obligations at the end of the year
Actuarial (gain)/loss arising from changes in demographic assumptions
Actuarial (gain)/loss arising from changes in financial assumptions
Year ended
March 31, 2019
Year ended
March 31, 2018
Medical
Others
Medical
Others
(` crore)
1,239.92
19.12
-
90.26
-
(0.02)
24.99
(66.78)
-
-
1,307.49
158.62
115.53
-
8.96
1.26
(0.20)
1.33
(13.40)
(62.11)
1.22
211.21
1,256.63
22.01
-
85.62
(20.53)
(55.95)
15.59
(63.45)
-
-
1,239.92
181.29
13.04
(24.61)
10.40
(1.46)
(6.77)
(6.18)
(12.35)
-
5.26
158.62
386
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 38. Employee benefits (Contd.)
Amounts recognised in the consolidated balance sheet consist of:
Present value of obligations
Recognised as:
(a) Retirement benefit obligation - Current
(b) Retirement benefit obligation - Non-current
Expense/(gain) recognised in the consolidated statement of profit and loss consist of:
Employee benefits expense:
Current service costs
Past service costs
Interest costs
Other comprehensive income:
Actuarial (gain)/loss arising from changes in demographic assumptions
Actuarial (gain)/loss arising from changes in financial assumption
Actuarial (gain)/loss arising from changes in experience adjustments
Expense/(gain) recognised in the consolidated statement of profit and loss
As at March 31, 2019
As at March 31, 2018
(` crore)
Medical
1,307.49
Others
211.21
Medical
1,239.92
92.66
1,214.83
1,307.49
15.61
195.60
211.21
89.53
1,150.39
1,239.92
Others
158.62
7.73
150.89
158.62
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
Medical
Others
Medical
Others
19.12
-
90.26
109.38
-
(0.02)
24.99
24.97
134.35
115.53
-
8.96
124.49
1.26
(0.20)
1.33
2.39
126.88
22.01
-
85.62
107.63
(20.53)
(55.95)
15.59
(60.89)
46.74
13.04
(24.61)
10.40
(1.17)
(1.46)
(6.77)
(6.18)
(14.41)
(15.58)
(ii) Key assumptions used in the measurement of post-retirement medical and other defined benefits is as below:
(a) Discount rate
(b)
(c)
Rate of escalation in salary
Inflation rate
As at March 31, 2019
As at March 31, 2018
Medical
7.50%
N.A
5.00% - 8.00%
Others
7.50%
3.50% - 15.00%
4.00% - 6.00%
Medical
7.50%
N.A.
5.00% - 8.00%
Others
0.51% -7.50%
4.00% -15.00%
4.00% -7.00%
(iii)
Weighted average duration of post-retirement medical benefit obligations ranges between 7 to 9 years (March 31, 2018: 7 to 10 years).
Weighted average duration of other defined benefit obligations ranges between 6 to 12 years (March 31, 2018: 6 to 33 years).
387
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
38. Employee benefits (Contd.)
(iv)
The table below outlines the effect on post-retirement medical benefit obligations in the event of a decrease/increase of 1% in the
assumptions used:
As at March 31, 2019
Assumption
Discount rate
Medical cost inflation rate
As at March 31, 2018
Assumption
Discount rate
Medical cost inflation rate
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `163.63 crore, increase by `207.55 crore
Increase by `193.32 crore, decrease by `155.82 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `155.67 crore, increase by `195.50 crore
Increase by `183.59 crore, decrease by `147.90 crore
(v) The table below outlines the effect on other defined benefit obligations in the event of a decrease/increase of 1% in the assumptions used:
As at March 31, 2019
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
As at March 31, 2018
Assumption
Discount rate
Rate of escalation in salary
Inflation rate
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `13.41 crore, increase by `15.49 crore
Increase by `4.36 crore, decrease by `3.83 crore
Increase by `6.01 crore, decrease by `5.35 crore
Change in assumption
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Increase by 1%, decrease by 1%
Impact on obligation
Decrease by `15.15 crore, increase by `18.02 crore
Increase by `10.31 crore, decrease by `8.95 crore
Increase by `5.80 crore, decrease by `5.15 crore
The above sensitivities may not be representative of the actual change as it is unlikely that the change in assumptions would occur in isolation
of one another as some of the assumptions may be correlated.
388
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 39. Contingencies and commitments
A. Contingencies
In the ordinary course of business, the Group faces claims and
assertions by various parties. The Group assesses such claims and
assertions and monitors the legal environment on an on-going basis,
with the assistance of external legal counsel, wherever necessary.
The Group records a liability for any claims where a potential loss is
probable and capable of being estimated and discloses such matters
in its consolidated financial statements, if material. For potential
losses that are considered possible, but not probable, the Group
provides disclosure in the consolidated financial statements but does
not record a liability in its accounts unless the loss becomes probable.
The following is a description of claims and assertions where a
potential loss is possible, but not probable. The Group believes that
none of the contingencies described below would have a material
adverse effect on the Group’s financial condition, results of operations
or cash flows.
It is not practicable for the Group to estimate the timings of the cash
outflows, if any, pending resolution of the respective proceedings.
The Group does not expect any reimbursements in respect of the same.
Litigations
(b)
Interest expenditure on “Hybrid perpetual securities” issued
by the Company has been disallowed in assessments with
tax demand raised for `459.13 crore (inclusive of interest)
(March 31, 2018: Nil)
In respect of the above demands, the Company has deposited an
amount of `1,065.00 crore (March 31, 2018: `665.00 crore) as a
precondition for obtaining stay. The Company expects to sustain its
position on ultimate resolution of the said appeals.
Customs, Excise duty and Service tax
As at March 31, 2019, there were pending litigation for various
matters relating to customs, excise duty and service tax involving
demands of `911.67 crore (March 31, 2018: `1,021.16 crore), which
includes `5.91 crore (March 31, 2018: `44.96 crore) in respect of
equity accounted investees.
Sales tax/VAT
The total sales tax demands that are being contested by the Group
amounted to `903.92 crore (March 31, 2018: `667.40 crore), which
includes `93.74 crore (March 31, 2018: `27.74 crore) in respect of
equity accounted investees.
The details of significant demands is as below:
The Group is involved in legal proceedings, both as plaintiff and as
defendant. There are claims which the Group does not believe to be
of a material nature, other than those described below.
(a)
Income tax
The Group has ongoing disputes with income tax authorities relating
to tax treatment of certain items. These mainly include disallowance
of expenses, tax treatment of certain expenses claimed by the Group
as deductions and the computation of, or eligibility of the Group’s use
of certain tax incentives or allowances.
Most of these disputes and/or disallowances, being repetitive in
nature, have been raised by the income tax authorities consistently
in most of the years.
As at March 31, 2019, there are matters and/or disputes pending in
appeals amounting to `3,218.64 crore (March 31, 2018: `1,504.72
crore) which includes `17.18 crore (March 31, 2018: `9.96 crore) in
respect of equity accounted investees.
(b)
The details of significant demands is as below:
(a)
Interest expenditure on loans taken by the Company for
acquisition of a subsidiary has been disallowed in assessments
with tax demand raised for `1,791.29 crore (inclusive of interest)
(March 31, 2018: `1,250.16 crore).
The Company stock transfers its goods manufactured at
Jamshedpur works plant to its various depots/branches located
outside the state of Jharkhand across the country without
payment of Central Sales tax as per the provisions of the Act
and submits F-Form in lieu of the stock-transfers made during
the period of assessment. These goods are then sold to various
customers outside the states from depots/branches and the
value of these sales are disclosed in the periodical returns
filed as per the Jharkhand Vat Act, 2005. The Commercial Tax
Department has raised demand of Central Sales tax by levying
tax on the differences between value of sales outside the states
and value of F-Form submitted for stock transfers. The amount
involved for various assessment years beginning 2011-12
to 2015-16 is amounting to `127.00 crore (March 31, 2018:
`125.00 crore).
The Commercial Tax Department of Jharkhand has rejected
certain Input tax credit claimed by the Company on goods
purchased from the suppliers within the State of Jharkhand.
The Department has alleged that the goods have not been
used in accordance with the provisions of Jharkhand VAT Act,
2005. The potential exposure on account of disputed tax and
interest for the period beginning 2012-2013 to 2015-2016 as on
March 31, 2019 is `104.00 crore (March 31,2018: `93.00 crore).
389
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 39. Contingencies and commitments (Contd.)
Other taxes, dues and claims
Other amounts for which the Group may contingently be liable
aggregate to `12,578.82 crore (March 31, 2018: `10,782.16 crore),
which includes `75.22 crore (March 31, 2018: `77.10 crore) in respect
of equity accounted investees.
The details of significant demands is as below:
(a)
(b)
(c)
Claim by a party arising out of conversion arrangement
`195.79 crore (March 31, 2018: `195.79 crore). The Company
has not acknowledged this claim and has instead filed a claim
of `141.23 crore (March 31, 2018: `141.23 crore) on the party.
The matter is pending before the Calcutta High Court.
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 Orissa challenging the validity of the Act.
Orissa High Court held in December 2005 that the State does not
have authority to levy tax on minerals. The State of Odisha filed
an appeal in the Supreme Court against the order of Orissa High
Court and the case is pending in Supreme Court. The potential
liability, as at March 31, 2019 is `7,573.53 crore (March 31, 2018:
`6,521.05 crore).
The Company pays royalty on iron ore on the basis of quantity
removed from the leased area at the rates based on notification
issued by the Ministry of Mines, Government of India and the
price published by India Bureau of Mines (IBM) on a monthly
basis. Demand of `411.08 crore has been raised by Deputy
Director of Mines, Joda, claiming royalty at sized ore rates on
despatches of ore fines. The Company has filed a revision petition
on November 14, 2013 before the Mines Tribunal, Government
of India, Ministry of Mines, New Delhi, challenging the legality
and validity of the demand raised and to grant refund of royalty
paid in excess by the Company. Mines Tribunal has granted stay
on the total demand with directive to Government of Odisha
not to take any coercive action for realisation of this demanded
amount. Likely demand of royalty on fines at sized ore rates
as on March 31, 2019 is `1,630.16 crore (March 31, 2018:
`1,036.53 crore).
(d)
Demand notices were originally issued by the Deputy Director
of Mines, Odisha amounting to `3,827.29 crore for excess
production over the quantity permitted under the mining
plan, environment clearance or consent to operate, pertaining
to 2000-01 to 2009-10. The demand notices have been raised
under Section 21(5) of the Mines & Minerals (Development and
390
Regulations) Act (MMDR). The Company filed revision petitions
before the Mines Tribunal against all such demand notices.
Initially, a stay of demands was granted, later by order dated
October 12, 2017, the issue has been remanded to the state for
reconsideration of the demand in the light of Supreme Court
judgement passed on August 2, 2017.
The Hon’ble Supreme Court pronounced its judgement in the
Common Cause case on August 2, 2017 wherein it directed that
compensation equivalent to the price of mineral extracted in
excess of environment clearance or without forest clearance
from the forest land be paid.
In pursuance to the Judgement of Hon’ble Supreme Court,
demand/show cause notices amounting to `3,873.35 crore have
been issued during 2017-18 by the Deputy Director of Mines,
Odisha and the District Mining Office, Jharkhand.
In respect of the above demands:
• as directed by the Hon’ble Supreme Court, the Company
has provided and paid for iron ore and manganese ore an
amount of `614.41 crore during 2017-18 for production in
excess of environment clearance to the Deputy Director
of Mines, Odisha.
• the Company has provided and paid under protest an
amount of `56.97 crore during 2017-18 for production in
excess of environment clearance to the District Mining
Office, Jharkhand.
• the Company has challenged the demands amounting to
`132.91 crore during 2017-18 for production in excess of
lower of mining plan and consent to operate limits raised
by the Deputy Director of Mines, Odisha before the Mines
Tribunal and obtained a stay on the matter. Mines Tribunal,
Delhi vide order dated November 26, 2018 disposed of all
the revision applications with a direction to remand it to
the State Government to hear all such cases afresh and pass
detailed order. The demand amount of `132.91 crore is
considered contingent.
• the Company has made a comprehensive submission before
the Deputy Director of Mines, Odisha against show cause
notices amounting to `694.02 crore received during 2017-18
for production in violation of mining plan, Environment
Protection Act, 1986 and Water (Prevention & Control of
Pollution) Act, 1981. A demand amounting to `234.74 crore
has been received in April 2018 crore from the Deputy
Director of Mines, Odisha for production in excess of the
Environmental Clearance. The Company has challenged
the demand and obtained a stay on the matter from the
Revisionary Authority, Mines Tribunal, New Delhi. The demand
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
39. Contingencies and commitments (Contd.)
(iii)
of `234.74 crore has been provided in 2017-18 and `694.02
crore is considered contingent.
• the Company based on its internal assessment has provided
an amount of `1,412.89 crore against demand notices
amounting to `2,140.30 crore received from the District
Mining Office, Jharkhand during 2017-18 for production
in excess of environment clearance. The balance amount of
`727.41 crore is been considered contingent. The Company
has however been granted a stay by the Revisional
Authority, Ministry of Coal, Government of India against such
demand notices.
(e)
An agreement was executed between the Government
of Odisha (GoO) and the Company in December, 1992 for
drawal of water from Kundra Nalla for industrial consumption.
In December 1993, the Tahsildar, Barbil issued a show-cause
notice alleging that the Company has lifted excess quantity of
water than the sanctioned limit under the agreement.
Japan Bank
Mizuho Corporate Bank Limited and
for International Co-operation, not to dispose of
its
investments in Tata NYK Shipping Pte Limited (to retain
minimal stake required to be able to provide a corporate
guarantee towards long-term debt) and
(iv)
ICICI Bank Limited to directly or indirectly continue to
hold atleast 51% shareholding in Jamshedpur Continuous
Annealing & Processing Company Private Limited.
(c)
The Company and Bluescope Steel Limited have given
undertaking to State Bank of India not to reduce collective
shareholding in Tata Bluescope Steel Private Limited (TBSPL)
(formerly Tata Bluescope Steel Limited), below 51% without
prior consent of the lender. Further, the Company has given
an undertaking to State Bank of India to intimate them before
diluting its shareholding in TBSPL below 50%.
(d)
The Company, as a promoter, has pledged 4,41,55,800 equity
shares (March 31, 2018: 4,41,55,800) of Industrial Energy Limited
with Infrastructure Development Finance Corporation Limited.
While the proceedings in this regard were in progress, the
Company had applied for allocation of fresh limits.
(e)
The Group has given guarantees aggregating `188.00 crore
(March 31, 2018: `205.73 crore) details of which are as below:
Over the years, there has also been a steep increase in water
charges against which the Company filed writ petitions before
the Hon’ble High Court of Odisha. In this regard, the Company
has received demands of `118.70 crore for the period beginning
January 1996 to May 2018. The potential exposure as on
March 31, 2019 is `125.98 crore (March 31, 2018: `99.34 crore) is
considered contingent.
B. Commitments
(a)
The Group has entered into various contracts with suppliers
and contractors for the acquisition of plant and machinery,
equipment and various civil contracts of capital nature
amounting to `10,175.00 crore, which includes `30.30 crore
in respect of equity accounted investees (March 31, 2018:
`8,001.50 crore which includes `4.83 crore in respect of equity
accounted investees).
(i)
(ii)
in favour of Commissioner of Customs `1.07 crore
(March 31, 2018: `1.07 crore) given on behalf of Timken
India Limited in respect of goods imported.
in favour of Mizuho Corporate Bank Ltd., Japan for `9.60
crore (March 31, 2018: `27.33 crore) against the loan
granted to a joint venture Tata NYK Shipping Pte. Limited.
(iii) in favour of The President of India for `177.18 crore
(March 31, 2018: `177.18 crore) against performance of
export obligations under various bonds executed by a joint
venture Jamshedpur Continuous Annealing & Processing
Company Private Limited.
(iv) in favour of President of India for `0.15 crore (March 31,
2018: `0.15 crore) against advance license.
40. Other significant litigations
Other commitment as at March 31, 2018 amounts to `0.01 crore
which includes Nil in respect of equity accounted investees
(March 31, 2018: `0.01 crore which includes Nil in respect of
equity accounted investees).
(a)
(b) The Company has given undertakings to:
(i)
(ii)
IDBI not to dispose of
Incandescent India Ltd.,
its
investment
in Wellman
IDBI and ICICI Bank Ltd. (formerly ICICI) not to dispose of its
investment in Standard Chrome Ltd.,
Odisha Legislative Assembly issued an amendment to Indian
Stamp Act, 1889, on May 9, 2013 and inserted a new provision
(Section 3A) in respect of stamp duty payable on grant/renewal
of mining leases. As per the amended provision, stamp duty is
levied equal to 15% of the average royalty that would accrue
out of the highest annual extraction of minerals under the
approved mining plan multiplied by the period of such mining
lease. The Company had filed a writ petition challenging the
constitutionality of the Act on July 5, 2013. The Hon’ble High
Court, Cuttack passed an order on July 9, 2013 granting interim
391
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
40. Other significant litigations (Contd.)
stay on the operation of the Amendment Act, 2013. Because of
the stay, as on date, the Act is not enforceable and any demand
received by the Company is not liable to be proceeded with.
Meanwhile, the Company received demand notices for the
various mines at Odisha totalling to `5,579.00 crore (March 31,
2018: `5,579.00 crore). The Company has concluded that it is
remote that the claim will sustain on ultimate resolution of the
legal case by the court.
In April, 2015, the Company has received an intimation from
Government of Odisha, granting extension of validity period for
leases under the MMDR Amendment Act, 2015 up to March 31,
2030 in respect of eight mines and up to March 31, 2020 for
two mines subject to execution of supplementary lease deed.
Liability has been provided in the books of accounts as on
March 31, 2019 as per the existing provisions of the Stamp Act,
1899 and the Company had paid the stamp duty and registration
charges totalling `413.72 crore (March 31, 2018: `413.72 crore)
for supplementary deed execution in respect of eight mines out
of the above mines.
b)
Noamundi Iron Mine of TSL was due for its third renewal with
effect from January 01, 2012. The application for renewal was
submitted by the company within the stipulated time, but it
remained pending consideration with the State and the mining
operations were continued in terms of the prevailing law.
By a judgement of April 2014 in the case of Goa mines, the
Supreme Court took a view that second and subsequent renewal
of mining lease can be effected once the State considers the
application and decides to renew the mining lease by issuing
an express order. State of Jharkhand issued renewal order to
the Company on December 31, 2014. The State, however, took
a view on an interpretation of Goa judgment that the mining
carried out after expiry of the period of second renewal was
‘illegal’ and hence, issued a demand notice of `3,568.31 crore
being the price of iron ore extracted. The said demand has been
challenged by the Company before the Jharkhand High Court.
The mining operations were suspended from August 1, 2014.
Upon issuance of an express order, the Company paid `152.00
crore under protest, so that mining can be resumed.
The Mines and Minerals Development and Regulation (MMDR)
Amendment Ordinance 2015 promulgated on January 12, 2015
provides for extension of such mining leases whose applications
for renewal have remained pending with the State(s). Based on
the new Ordinance, Jharkhand Government revised the Express
Order on February 12, 2015 for extending the period of lease
upto March 31, 2030 with the following terms and conditions:
• value of iron ore produced by alleged unlawful mining during
the period January 1, 2012 to April 20, 2014 for `2,994.49 crore
to be decided on the basis of disposal of our writ petition
before Hon’ble High Court of Jharkhand.
• value of
iron ore produced from April 21, 2014 to
July 17, 2014 amounting to `421.83 crore to be paid in
maximum 3 instalments.
• value of iron ore produced from July 18, 2014 to August 31,
2014 `152.00 crore to be paid immediately.
District Mining Officer Chaibasa on March 16, 2015 issued a
demand notice for payment of `421.83 crore in three monthly
installments. The Company on March 20, 2015 replied that since
the lease has been extended by application of law till March 31,
2030, the above demand is not tenable. The Company, however
paid `50.00 crore under protest on July 27, 2015, because the
State had stopped issuance of transit permits.
The Company filed another writ petition before the Hon’ble
High Court of Jharkhand which was heard on September 9,
2015. An interim order was given by the Hon’ble High Court
of Jharkhand on September 17, 2015, wherein the Court has
directed the Company to pay the amount of `371.83 crore in 3
equal instalments, first instalment by October 15, 2015, second
instalment by November 15, 2015 and third instalment by
December 15, 2015.
In view of the interim order of the Hon’ble High Court of
Jharkhand `124.00 crore was paid on September 28, 2015,
`124.00 crore on November 12, 2015 and `123.83 crore on
December 14, 2015 under protest.
The case is pending at Hon’ble High court for disposal. The State
issued similar terms and conditions to other mining lessees
in the State rendering the mining as illegal. Based on the
Company’s assessment of the Goa mines judgement read with
the Ordinance issued in the year 2015, the Company believes
that it is remote that the demand of the State would sustain.
392
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
41. Acquisition of subsidiaries
A.
On May 18, 2018, Bamnipal Steel Limited, a wholly-owned subsidiary of the Company, completed the acquisition of 72.65% stake in Tata Steel
BSL Limited (formerly Bhushan Steel Limited) pursuant to a Corporate Insolvency Resolution process implemented under the Insolvency and
Bankruptcy Code, 2016.
Fair value of identifiable assets acquired and liabilities assumed as on the date of acquisition is as below:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Other intangible assets
Investments
Financial assets
Non-current tax assets
Other assets
Current assets
Inventories
Trade receivables
Cash and cash equivalents
Other balances with banks
Other financial assets
Other assets
Total assets [A]
Non-current liabilities
Borrowings
Other financial liabilities
Provisions
Retirement benefit obligations
Deferred income
Current liabilities
Borrowings
Trade payables
Other financial liabilities
Provisions
Other liabilities
Total liabilities [B]
Fair value of identifiable net assets [C=A-B]
(` crore)
Fair value as on
acquisition date
29,511.90
1,222.28
0.10
1.13
565.80
29.29
1,433.22
32,763.72
4,219.48
1,288.33
712.14
552.97
63.90
1,072.32
7,909.14
40,672.86
19,276.99
40.01
20.36
34.01
2.61
19,373.98
16,638.47
937.27
1,155.16
7.54
641.56
19,380.00
38,753.98
1,918.88
393
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
41. Acquisition of subsidiaries (Contd.)
Consideration paid
Non-controlling interests
Consideration paid including non-controlling interests [D]
Capital reserve [C-D]
(` crore)
158.89
523.65
682.54
1,236.34
(i)
(ii)
Pursuant to the resolution plan, Bamnipal Steel Limited, a wholly owned subsidiary of the Company paid `35,073.69 crore to the financial
lenders of Bhushan Steel Limited.
From the date of acquisition, Tata Steel BSL Limited contributed `18,375.86 crore to revenue from operations and a loss of `881.07 crore
to the consolidated profit before tax on a pre-consolidation adjustments basis.
Had these business combination been effected at April 1, 2018, the revenue of the Group from continuing operations would have been
higher by `2,515.75 crore and profit from continuing operations would have been lower by `673.98 crore on a pre-consolidation
adjustments basis.
(iii)
Acquisition-related costs amounting to `41.11 crore have been excluded from the consideration transferred and have been recognised
as an expense in the consolidated statement of profit and loss within other expenses.
B.
On September 18, 2018, the Company acquired 51% stake in Creative Port Development Private Limited (“CPDPL”), a proposed
greenfield port project.
Fair value of identifiable assets acquired and liabilities assumed as on the date of acquisition is as below:
Non-current assets
Property, plant and equipment
Capital work-in-progress
Other intangible assets
Financial assets
Current assets
Cash and cash equivalents
Other balances with banks
Other financial assets
Other assets
Total assets [A]
Non-current liabilities
Borrowings
Retirement benefit obligations
Deferred tax liabilities
Current liabilities
Borrowings
Trade payables
Other financial liabilities
Total liabilities [B]
Fair value of identifiable net assets [C=A-B]
394
(` crore)
Fair value as on
acquisition date
0.04
38.77
512.80
0.02
551.63
1.45
0.70
0.04
0.46
2.65
554.28
2.00
0.11
133.39
135.50
0.75
3.30
0.09
4.14
139.64
414.64
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
41. Acquisition of subsidiaries (Contd.)
Consideration paid
Deferred consideration
Fair-value of previously held equity interest
Non-controlling interests
Consideration paid including fair-value of previously held
equity interest and non-controlling interest [D]
Capital reserve [C-D]
(` crore)
49.88
42.00
17.01
205.68
314.57
100.07
From the date of acquisition, Creative Port Development Private Limited has contributed Nil to revenue from operations and a loss of `0.30
crore to consolidated profit before tax on a pre-consolidation adjustments basis.
42. Disposal of subsidiaries
During the year ended March 31, 2019, the Group disposed off Corus Building Systems Bulgaria AD in Bulgaria and Kalzip Business Units.
The Group also disposed Black Ginger 461 (Proprietary) Ltd. within the overseas mining business in South Africa.
A profit of `10.20 crore being the difference between the fair value of consideration received and the carrying value of net assets disposed off in
respect of these businesses was recognised in the consolidated statement of profit and loss.
During the year ended March 31, 2018, the Group disposed off the trade and other assets of Speciality Steels Limited to Liberty Steels Limited.
The Group had also disposed off Saw Pipe Mills in Hartepool to Liberty House Group. A loss of `21.90 crore was recognised on such disposal.
(i)
Details of net assets disposed off and profit/(loss) on disposal is as below:
Non-current assets
Goodwill
Property, plant and equipment
Capital work-in-progress
Other intangible assets
Current assets
Inventories
Trade receivables
Cash and bank balances
Other financial assets
Derivative assets
Current tax assets
Other non-financial assets
Non-controlling interests
Non-current liabilities
Borrowings
Provisions
Retirement benefit obligations
Other financial liabilities
Deferred income
Deferred tax liabilities
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
28.47
99.48
1.40
143.71
273.06
223.00
113.66
24.22
16.89
0.06
8.65
13.63
400.11
71.86
89.64
26.39
119.52
0.84
10.80
47.62
294.81
-
13.72
-
-
13.72
849.62
218.77
3.73
-
-
-
-
1,072.12
-
9.43
10.64
-
0.02
-
-
20.09
395
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
160.66
15.19
136.46
63.24
17.90
4.49
42.12
21.02
461.08
(154.58)
-
(191.94)
(191.94)
37.36
2.40
-
382.12
-
9.42
-
-
-
393.94
671.81
192.19
-
192.19
479.62
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
87.24
-
(39.68)
(37.36)
10.20
475.99
(18.27)
-
(479.62)
(21.90)
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
87.24
-
-
87.24
475.99
(386.75)
(55.02)
34.22
42. Disposal of subsidiaries (Contd.)
Current liabilities
Borrowings
Derivative liabilities
Trade payables
Other financial liabilities
Provisions
Retirement benefit obligations
Current tax liabilities
Other non-financial liabilities
Carrying value of net assets disposed off
Less: Adjustments in respect of:
Impairment in relation to assets
Inter-company arrangements
Adjusted carrying value of net assets disposed
Sale consideration
Transaction costs
Foreign exchange recycled to profit/(loss) on disposal
Carrying value of net assets disposed off
Profit/(loss) on disposal
(ii) Details of net cash flow arising on disposal is as below:
Consideration received in cash and cash equivalents
Deferred consideration
Consideration received in the form of preference shares
Net cash flow arising on disposal
396
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
43. Capital Management
The Group’s capital management is intended to create value for shareholders by facilitating the achievement of long-term and short-term
goals of the Group.
The Group determines the amount of capital required on the basis of annual business plan of entities within the Group coupled with long-term
and short-term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations,
long-term and short-term bank borrowings and issue of non-convertible debt securities.
The Group monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Group.
Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current and earmarked
balances) and current investments.
The table below summarises the capital, net debt and net debt to equity ratio of the Group.
Equity share capital
Hybrid perpetual securities
Other equity
Equity attributable to shareholders of the Company
Non-controlling interests
Total equity (A)
Non-current borrowings
Current borrowings
Current maturities of long-term borrowings and finance lease obligations
Gross debt (B)
Total capital (A+B)
Gross debt as above
Less: Current investments
Less: Cash and cash equivalents
Less: Other balances with banks (including non-current earmarked balances)
Net debt (C)
As at
March 31, 2019
1,144.94
2,275.00
65,505.14
68,925.08
2,364.46
71,289.54
80,342.73
10,802.08
9,671.41
1,00,816.22
1,72,105.76
1,00,816.22
2,524.86
2,975.53
436.83
94,879.00
(` crore)
As at
March 31, 2018
1,144.95
2,275.00
57,450.67
60,870.62
936.52
61,807.14
72,789.10
15,884.98
3,472.97
92,147.05
1,53,954.19
92,147.05
14,908.97
7,783.50
239.37
69,215.21
Net debt to equity ratio(i)
1.43
1.37
(i) Net debt to equity ratio as at March 31, 2019 and March 31, 2018 has been computed based on the average of opening and closing equity.
397
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418 44. Disclosures on financial instruments
This section gives an overview of the significance of financial instruments for the Group and provides additional information on balance sheet
items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income
and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2(r), page
320 to the consolidated financial statements.
(a) Financial assets and liabilities
The following tables present the carrying value and fair value of each category of financial assets and liabilities as at March 31, 2019 and
March 31, 2018.
As at March 31, 2019
Financial assets:
Cash and bank balances
Trade receivables
Investments
Derivatives
Loans
Other financial assets
Financial liabilities:
Trade payables
Borrowings
Derivatives
Other financial liabilities
Amortised
cost
Fair value
through other
comprehensive
income
Derivative
instruments
in hedging
relationship
Derivative
instruments
not in hedging
relationship
Fair value
through profit
and loss
Total
carrying
value
(` crore)
Total fair
value
3,412.36
11,811.00
65.21
-
853.04
1,747.63
17,889.24
21,716.96
1,00,816.22
-
7,337.00
1,29,870.18
-
-
756.39
-
-
-
756.39
-
-
-
-
-
-
-
-
184.44
-
-
184.44
-
-
216.35
-
216.35
-
-
-
283.41
-
-
283.41
-
-
260.06
-
260.06
-
-
2,993.62
-
-
-
2,993.62
3,412.36
11,811.00
3,815.22
467.85
853.04
1,747.63
22,107.10
3,412.36
11,811.00
3,815.22
467.85
853.04
1,747.63
22,107.10
-
-
-
-
-
21,716.96
1,00,816.22
476.41
7,337.00
1,30,346.59
21,716.96
99,893.42
476.41
7,337.00
1,29,423.79
398
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 44. Disclosures on financial instruments (Contd.)
As at March 31, 2018
Amortised
cost
Fair value
through other
comprehensive
income
Derivative
instruments in
hedging
relationship
Derivative
instruments
not in hedging
relationship
Fair value
through profit
and loss
Total
carrying
value
(` crore)
Total fair
value
Financial assets:
Cash and bank balances
Trade receivables
Investments
Derivatives
Loans
Other financial assets
Financial liabilities:
Trade payables
Borrowings
Derivatives
Other financial liabilities
8,022.87
12,415.52
0.22
-
973.82
613.49
22,025.92
20,413.81
92,147.05
-
6,424.64
1,18,985.50
-
-
876.65
-
-
-
876.65
-
-
-
-
-
-
-
-
87.89
-
-
87.89
-
-
350.37
-
350.37
-
-
-
92.22
-
-
92.22
-
-
203.46
-
203.46
-
-
15,241.38
-
-
-
15,241.38
8,022.87
12,415.52
16,118.25
180.11
973.82
613.49
38,324.06
8,022.87
12,415.52
16,118.25
180.11
973.82
613.49
38,324.06
-
-
-
-
-
20,413.81
92,147.05
553.83
6,424.64
1,19,539.33
20,413.81
91,516.09
553.83
6,424.64
1,18,908.37
(i)
Investments in mutual funds and derivative instruments (other than those designated in a hedging relationship) are mandatorily classified
as fair value through profit and loss.
(b) Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped
into Level 1 to Level 3, as described below.
Quoted prices in an active market (Level 1): This Level of hierarchy includes financial assets and liabilities, that are measured by reference
to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investments in quoted equity
shares and mutual funds.
Valuation techniques with observable inputs (Level 2): This Level of hierarchy includes financial assets and liabilities, measured using
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or
indirectly (i.e., derived from prices). This Level of hierarchy includes the Group’s over-the-counter (OTC) derivative contracts.
Valuation techniques with significant unobservable inputs (Level 3): This Level of hierarchy includes financial assets and liabilities
measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in
part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data. This Level includes investment in unquoted equity shares and
preference shares.
399
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
44. Disclosures on financial instruments (Contd.)
Financial assets:
Investments in mutual funds
Investments in equity shares
Investments in bonds and debentures
Investments in preference shares
Derivative financial assets
Financial liabilities:
Derivative financial liabilities
Financial assets:
Investments in mutual funds
Investments in equity shares
Investments in bonds and debentures
Derivative financial assets
Financial liabilities:
Derivative financial liabilities
Notes:
As at March 31, 2019
Level 1
Level 2
Level 3
Total
(` crore)
2,633.13
454.53
-
-
-
3,087.66
-
-
-
-
49.74
-
467.85
517.59
476.41
476.41
-
362.61
-
250.00
-
612.61
-
-
2,633.13
817.14
49.74
250.00
467.85
4,217.86
476.41
476.41
(` crore)
As at March 31, 2018
Level 1
Level 2
Level 3
Total
14,979.89
608.16
91.30
-
15,679.35
-
-
-
-
49.74
180.11
229.85
553.83
553.83
-
388.94
-
-
388.94
-
-
14,979.89
997.10
141.04
180.11
16,298.14
553.83
553.83
(i) Current financial assets and liabilities are stated at carrying value which is approximately equal to their fair value.
(ii)
Derivatives are fair valued using market observable rates and published prices together with forecasted cash flow information
where applicable.
(iii)
(iv)
(v)
Investments carried at fair value are generally based on market price quotations. Investments included in Level 3 of the fair value hierarchy
have been valued using the cost approach to arrive at their fair value. Cost of unquoted equity instruments has been considered as an
appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of
fair value within that range. Fair value of investment in preference shares is estimated by discounting the expected future cash flows using
a discount rate equivalent to the expected rate of return for a similar instrument and maturity as on the reporting date.
Fair value of borrowings which have a quoted market price in an active market is based on its market price which is categorised as Level 1.
Fair value of borrowings which do not have an active market or are unquoted is estimated by discounting the expected future cash flows
using a discount rate equivalent to the risk-free rate of return adjusted for credit spread considered by lenders for instruments of similar
maturities which is categorised as Level 2 in the fair value hierarchy.
Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in
any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not necessarily
indicative of the amounts that the Group could have realised or paid in sale transactions as of respective dates. As such, fair value of
financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date.
(vi) There have been no transfers between Level 1 and Level 2 for the years ended March 31, 2019 and March 31, 2018.
400
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
44. Disclosures on financial instruments (Contd.)
(vii) Reconciliation of Level 3 fair value measurement is as below:
Balance at the beginning of the year
Additions during the year
Fair value changes during the year
Classified as held for sale
Reclasification within investments *
Exchange rate differences on consolidation
Balance at the end of the year
(` crore)
Year ended
March 31, 2019
Year ended
March 31, 2018
388.94
267.92
(0.02)
(23.60)
(17.00)
(3.63)
612.61
452.60
-
(72.68)
-
-
9.02
388.94
* represents investment held in Subarnarekha Port Private Limited which became a subsidiary during the year.
(c) Derivative financial instruments
Derivative instruments used by the Group include forward exchange contracts, interest rate swaps, currency swaps, options, commodity futures
interest rate caps and collars. These financial instruments are utilised to hedge future transactions and cash flows and are subject to hedge
accounting under Ind AS 109 “Financial Instruments” wherever possible. The Group does not hold or issue derivative financial instruments for
trading purposes. All transactions in derivative financial instruments are undertaken to manage risks arising from underlying business activities.
The following table sets out the fair value of derivatives held by the Group as at the end of the reporting period.
(a)
(b)
(c)
Foreign currency forwards, futures, swaps and options
Commodity futures and options
Interest rate swaps and collars
Classified as:
Non-current
Current
As at March 31, 2019
As at March 31, 2018
Assets
360.07
90.56
17.22
467.85
108.74
359.11
Liabilities
476.34
-
0.07
476.41
59.82
416.59
Assets
133.23
32.42
14.46
180.11
29.16
150.95
(` crore)
Liabilities
532.38
18.92
2.53
553.83
85.04
468.79
As at the end of the reporting period, total notional amount of outstanding foreign currency contracts, commodity futures, options, interest
rate swaps and collars that the Group has committed to is as below:
(i) Foreign currency forwards, futures, swaps and options
(ii) Commodity futures and options
(iii) Interest rate swaps and collars
As at
March 31, 2019
7,722.00
115.40
150.00
7,987.40
(US$ million)
As at
March 31, 2018
7,072.23
150.07
1,764.39
8,986.69
401
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
44. Disclosures on financial instruments (Contd.)
(d) Transfer of financial assets
The Group transfers certain trade receivables under discounting arrangements with banks/financial institutions. Some of such arrangements
do not qualify for de-recognition due to recourse arrangements being in place. Consequently, the proceeds received from transfer are recorded
as short-term borrowings from banks/financial institutions.
The carrying value of trade receivables not de-recognised along with the associated liabilities is as below:
(` crore)
As at March 31, 2019
As at March 31, 2018
Carrying
value of
assets
transferred
6.60
Carrying value of
associated liabilities
6.60
Carrying
value of
assets
transferred
583.18
Carrying value of
associated liabilities
583.18
one currency or where assets/liabilities are denominated in a
currency other than the functional currency of the respective
consolidated entities.
Considering the countries and economic environment in which
the Group operates, its operations are subject to risks arising
from fluctuations in exchange rates in those countries. The risks
primarily relate to fluctuations in US Dollar, Great British Pound,
Euro, Singapore Dollar, and Thai Baht against the respective
functional currencies of the Company and its subsidiaries.
Entities as per their risk management policy, use foreign
exchange and other derivative instruments primarily to hedge
foreign exchange and interest rate exposure. Any weakening
of the functional currency may impact the respective entities’
cost of imports and cost of borrowings and consequently may
increase the cost of financing the Group’s capital expenditures.
A 10% appreciation/depreciation of foreign currencies with
respect to the functional currency of the entities within the
Group would result in a decrease/increase in the Group’s
net profit and equity before considering tax impacts by
approximately `1,278.28 crore for the year ended March 31,
2019 (2017-18 `680.05 crore) and increase/decrease in carrying
value of property, plant and equipment (before considering
depreciation impact) by approximately `101.04 crore as at
March 31, 2019 (March 31, 2018: `148.81 crore).
The foreign exchange rate sensitivity is calculated by assuming
a simultaneous parallel foreign exchange rates shift of all the
currencies by 10% against the functional currency of the entities
within the Group.
The sensitivity analysis has been based on the composition of the
Group’s financial assets and liabilities as at March 31, 2019 and
Trade receivables
(e) Financial risk management
In the course of its business, the Group is exposed primarily to
fluctuations in foreign currency exchange rates, commodity
prices, interest rates, equity prices, liquidity and credit risk, which
may adversely impact the fair value of its financial instruments.
Entities within the Group have a risk management policy
which not only covers the foreign exchange risks but also other
risks associated with the financial assets and liabilities such as
interest rate risks and credit risks. The risk management policy is
approved by the Board of Directors of the respective companies.
The risk management framework aims to:
(i)
create a stable business planning environment by reducing
the impact of currency, commodity prices and interest rate
fluctuations on the entity’s business plan.
(ii)
achieve greater predictability to earnings by determining
the financial value of the expected earnings in advance.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realisable
fair values or in future cash flows that may result from a change
in the price of a financial instrument. The value of a financial
instrument may change as a result of changes in interest rates,
foreign currency exchange rates, commodity prices, equity price
fluctuations, liquidity and other market changes. Future specific
market movements cannot be normally predicted with
reasonable accuracy.
(a) Market risk - Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have
potential impact on the consolidated statement of profit and
loss and equity, where any transaction references more than
402
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
44. Disclosures on financial instruments (Contd.)
(ii) Commodity risk
March 31, 2018 excluding trade payables, trade receivables, other
derivative and non-derivative financial instruments not forming
part of debt and which do not present a material exposure.
The period end balances are not necessarily representative of
the average debt outstanding during the period.
(b) Market risk - Interest rate risk:
Interest rate risk is measured by using the cash flow sensitivity
for changes in variable interest rates. Any movement in the
reference rates could have an impact on the Group’s cash flows
as well as costs.
The Group is subject to variable interest rates on some of its
interest bearing liabilities. The Group’s interest rate exposure is
mainly related to debt obligations.
Based on the composition of debt as at March 31, 2019 and
March 31, 2018 a 100 basis points increase in interest rates
would increase the Group’s finance costs (before considering
interest eligible for capitalisation) and thereby consequently
reduce net profit and equity before considering tax impacts by
approximately `555.11 crore for the year ended March 31, 2019
(2017-18: `442.84 crore).
The risk estimates provided assume a parallel shift of 100 basis
points interest rate across all yield curves. This calculation also
assumes that the change occurs at the balance sheet date and has
been calculated based on risk exposures outstanding as at that
date. The period end balances are not necessarily representative
of the average debt outstanding during the period.
(c) Market risk - Equity price risk:
Equity price risk is related to the change in market reference
price of investments in equity securities held by the Group.
The fair value of quoted investments held by the Group exposes
the Group to equity price risks. In general, these investments are
not held for trading purposes.
The fair value of quoted investments in equity classified as fair
value through other comprehensive income/profit and loss as
at March 31, 2019 and March 31, 2018 was `454.53 crore and
`608.16 crore respectively.
A 10% change in equity prices of such securities held as at
March 31, 2019 and March 31, 2018 would result in an impact
of `45.45 crore and `60.82 crore respectively on equity before
considering tax impact.
The Group makes use of commodity futures contracts and
options to manage its purchase price risk for certain commodities.
Across the Group, forward purchases are also made of zinc, tin
and nickel to cover sales contracts with fixed metal prices.
There was no significant market risk relating to the consolidated
statement of profit and loss since the majority of commodity
derivatives are treated as cash flow hedges with movements
being reflected in equity and the timing and recognition in
the consolidated statement of profit and loss would depend
on the point at which the underlying hedged transactions
are recognised.
(iii) Credit risk
Credit risk is the risk of financial loss arising from counter-party
failure to repay or service debt according to the contractual
terms or obligations. Credit risk encompasses both the direct
risk of default and the risk of deterioration of credit worthiness
as well as concentration risks.
Entities within the Group have a policy of dealing only with
credit worthy counter parties and obtaining sufficient collateral,
where appropriate as a means of mitigating the risk of financial
loss from defaults.
Financial instruments that are subject to credit risk and
concentration thereof principally consist of trade receivables,
loans receivables, investments in debt securities and mutual
funds, balances with banks, bank deposits, derivatives and
financial guarantees provided by the Group. None of the financial
instruments of the Group result in material concentration
of credit risk.
The carrying value of financial assets represents the maximum
credit risk. The maximum exposure to credit risk was
`12,960.20 crore and `29,525.00 crore as at March 31, 2019
and March 31, 2018 respectively, being the total carrying
value of trade receivables, balances with bank, bank deposits,
investments
loans,
derivative assets and other financial assets net of insurance
cover, where applicable.
in debt securities and mutual funds,
The risk relating to trade receivables
note 15, page 348.
is presented
in
The Group’s exposure to customers is diversified and there is
no concentration of credit risk with respect to any particular
customer as at March 31, 2019 and March 31, 2018.
403
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
44. Disclosures on financial instruments (Contd.)
In respect of financial guarantees provided by the Group to
banks/financial institutions, the maximum exposure which the
Group is exposed to is the maximum amount which the Group
would have to pay if the guarantee is called upon. Based on
the expectation at the end of the reporting period, the Group
considers that it is more likely than not that such an amount will
not be payable under the guarantees provided.
(iv) Liquidity risk
Liquidity risk refers to the risk that the Group cannot meet its
financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are
available for use as per requirements.
The Group has obtained fund and non-fund based working
capital lines from various banks. Furthermore, the entities
within the Group have access to undrawn lines of committed
from debt
and uncommitted borrowing/facilities,
markets through commercial paper programs, non-convertible
debentures and other debt instruments. The Group invests its
surplus funds in bank fixed deposits and mutual funds, which
carry no or low mark to market risk.
funds
The following table shows a maturity analysis of the anticipated cash flows including future interest obligations for the Group’s derivative
and non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value. Floating rate
interest is estimated using the prevailing interest rate at the end of the reporting period. Cash flows in foreign currencies are translated using
the period end spot rates.
Non-derivative financial liabilities:
Borrowings including interest obligations
Trade payables
Other financial liabilities
Carrying
value
Contractual
cash flows
less than
one year
between one to
five years
As at March 31, 2019
1,01,674.75
21,716.96
6,478.47
1,29,870.18
1,34,845.14
21,716.96
6,478.47
1,63,040.57
21,955.48
21,716.96
6,217.46
49,889.90
52,896.95
-
21.62
52,918.57
(` crore)
More than
five years
59,992.71
-
239.39
60,232.10
Derivative financial liabilities
476.41
476.41
416.59
59.82
-
Non-derivative financial liabilities:
Borrowings including interest obligations
Trade payables
Other financial liabilities
Carrying
value
Contractual
cash flows
less than
one year
between one to
five years
As at March 31, 2018
92,982.57
20,413.81
5,589.12
1,18,985.50
1,16,791.20
20,413.81
5,589.12
1,42,794.13
21,366.81
20,413.81
5,501.46
47,282.08
54,309.71
-
27.60
54,337.31
(` crore)
More than
five years
41,114.68
-
60.06
41,174.74
Derivative financial liabilities
553.83
553.83
468.79
85.04
-
404
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
45. Segment reporting
The Group is primarily engaged in the business of manufacture and distribution of steel products across the globe. Operating segments
have been identified based on how the Chief Operating Decision Maker (CODM) reviews and assesses the Group’s performance, which is
on the basis of the different geographical areas wherein major entities within the Group operate.
The Group’s reportable segments and segment information is presented below:
Segment revenue
External revenue
Intersegment revenue
Total revenue
Segment results before exceptional items,
interest, tax and depreciation:
Reconciliation to profit/(loss) for the year:
Add: Finance income
Less: Finance costs
Less: Depreciation and amortisation expense
Add: Share of profit/(loss) of joint
ventures and associates
Profit before exceptional items and tax
Add: Exceptional items (refer note 35, page 375)
Profit before tax
Less: Tax expense
Profit after tax from continuing operations
Profit after tax from
discontinued operations
Net profit/(loss) for the year
Segment assets
Assets held for sale
Total assets
Tata Steel
India
Bamnipal Steel
(including Tata
Steel BSL)
Other
Indian
operations
Tata Steel
Europe
Other trade
related
operations
Rest of the
world
Inter-segment
eliminations
(` crore)
Total
61,222.97
53,434.33
9,387.95
7,085.04
70,610.92
60,519.37
20,743.98
15,799.94
18,132.19
-
243.67
-
18,375.86
-
3,027.95
10,386.91
7,915.39
1,879.94
1,507.06
12,266.85
9,422.45
1,132.22
64,474.73
59,755.60
302.34
229.85
64,777.07
59,985.45
5,413.63
2,668.22
2,252.38
31,028.29
25,787.49
33,696.51
28,039.87
489.63
783.97
751.99
-
-
783.97
751.99
182.13
- 1,57,668.99
1,24,109.69
-
-
(42,842.19)
-
(34,609.44)
(42,842.19) 1,57,668.99
1,24,109.69
29,770.32
(34,609.44)
(1,219.22)
-
953.90
3,712.84
2,067.52
(3.69)
(1,161.48)
21,369.03
1,34,385.00
1,17,765.08
39,854.24
0.01
8,977.20
7,258.98
68,251.43
69,078.02
68,831.55
58,737.78
7,739.47
7,479.19
1,033.60
945.26
7,660.10
5,454.74
7,341.83
5,741.70
224.70
239.12
16,026.69
11,356.97
(120.97)
9,599.12
15,905.72
20,956.09
6,718.43
3,392.33
9,187.29
17,563.76
(88.96)
199.05
9,098.33
17,762.81
(98,598.76) 2,29,440.13
2,05,240.27
4,142.26
4,517.67
2,33,582.39
2,09,757.94
(55,078.79)
405
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
45. Segment reporting (Contd.)
Segment assets include:
Equity accounted investments
Segment liabilities
Liabilities held for sale
Total liabilities
Tata Steel
India
Bamnipal Steel
(including Tata
Steel BSL)
Other
Indian
operations
Tata Steel
Europe
Other trade
related
operations
Rest of the
world
Inter-segment
eliminations
(` crore)
Total
1,573.83
1,385.66
67,809.45
64,365.30
-
-
21,428.15
-
14.11
11.43
4,532.60
4,463.50
323.73
373.53
92,326.76
91,793.30
11.28
10.60
46,465.89
39,380.73
-
-
4,747.92
2,866.28
-
-
(56,900.03)
1,922.95
1,781.22
(76,444.04) 1,60,866.73
1,45,969.08
1,426.12
1,981.72
1,62,292.85
1,47,950.80
10,247.56
7,823.83
-
-
Addition to non-current assets
3,344.32
2,424.34
1,392.34
-
535.66
321.06
4,353.71
4,405.39
0.98
0.20
620.55
672.84
Figures in italics represents comparative figures of previous year.
(i) Details of revenue by nature of business is as below:
Steel
Others
Revenue from other businesses primarily relate to ferro alloys, power and water and other services.
(ii) Details of revenue based on geographical location of customers is as below:
India
Outside India
Year ended
March 31, 2019
1,45,078.78
12,590.21
1,57,668.99
(` crore)
Year ended
March 31, 2018
1,13,970.02
10,139.67
1,24,109.69
Year ended
March 31, 2019
82,528.14
75,140.85
1,57,668.99
(` crore)
Year ended
March 31, 2018
57,043.86
67,065.83
1,24,109.69
Revenue outside India includes: Asia excluding India `8,959.48 crore (2017-18: `6,522.19 crore), UK `14,810.44 crore (2017-18: `13,750.28
crore) and other European countries `41,142.74 crore (2017-18: `38,965.17 crore).
(iii) Details of non-current assets (property, plant and equipment, capital work-in-progress, intangibles and goodwill on
consolidation) based on geographical area is as below:
India
Outside India
As at
March 31, 2019
1,10,980.41
32,102.71
1,43,083.12
(` crore)
As at
March 31, 2018
80,930.93
31,788.37
1,12,719.30
Non-current assets outside India include: Asia excluding India `2.55 crore (March 31, 2018: `1,477.15 crore), UK `7,981.67 crore (March 31,
2018: `6,662.42 crore) and other European countries `17,191.20 crore (March 31, 2018: `17,292.55 crore).
406
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED 45. Segment reporting (Contd.)
Notes:
(i)
(ii)
Segment performance is reviewed by the CODM on the basis of profit or loss from continuing operations before finance income/cost,
depreciation and amortisation expenses, share of profit/(loss) of joint ventures and associates and tax expenses. Segment results reviewed
by the CODM also exclude income or expenses which are non-recurring in nature and are classified as an exceptional item. Information about
segment assets and liabilities provided to the CODM, however, include the related assets and liabilities arising on account of items
excluded in measurement of segment results. Such amounts, therefore, form part of the reported segment assets and liabilities.
The Group executed definitive agreements to divest its entire equity stake in NatSteel Holdings Pte. Ltd. and Tata Steel (Thailand) Public
Company Ltd. The assets and liabilities of these companies have been classified as held for sale as on March 31, 2019 and have been
presented separately in the Consolidated Balance Sheet. The results for the current period of these companies have been disclosed within
discontinued operations and results for the previous periods have been restated accordingly. Consequent to the re-classification, ‘South
East Asian Operations’ is no longer presented as a separate segment.
(iii) No single customer represents 10% or more of the Group’s total revenue during the year ended March 31, 2019 and March 31, 2018.
(iv) The accounting policies of the reportable segments are the same as of the Group’s accounting policies.
46. Related party transactions
The Group’s related parties primarily consists of its associates, joint ventures and Tata Sons Private Limited including its subsidiaries and
joint ventures. The Group routinely enters into transactions with these related parties in the ordinary course of business at market rates
and terms. Transactions and balances between the Company, its subsidiaries and fellow subsidiaries are eliminated on consolidation.
The following table summarises the related-party transactions and balances included in the consolidated financial statements for the year
ended/as at March 31, 2019 and March 31, 2018.
Purchase of goods
Sale of goods
Services received
Services rendered
Interest income recognised
Interest expenses recognised
Dividend paid
Associates
Joint
ventures
488.88
300.07
1,210.03
1,124.54
146.39
402.78
6.89
11.21
7.81
-
-
-
-
-
186.86
129.18
3,198.08
2,551.86
1,604.64
1,801.67
152.61
104.01
4.13
4.62
-
-
-
-
Dividend received
46.89
68.02
Tata Sons Private
Limited, its
subsidiaries and
joint ventures
710.83
455.67
505.05
482.94
819.19
451.73
1.18
1.31
-
-
19.27
19.23
361.45
295.61
10.88
(` crore)
Total
1,386.57
884.92
4,913.16
4,159.34
2,570.22
2,656.18
160.68
116.53
11.94
4.62
19.27
19.23
361.45
295.61
125.79
407
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
46. Related party transactions (Contd.)
Associates
Joint
ventures
Provision/(reversal) recognised for receivables
during the year
Management contracts
Sale of investments
Finance provided during the year (net of repayments)
Outstanding loans and receivables
Provision for outstanding loans and receivables
Outstanding payables
Guarantees provided outstanding
Subscription to rights issue
18.48
(0.01)
-
16.61
3.08
-
-
250.00
-
26.68
124.61
10.71
3.39
38.63
51.16
-
-
-
-
Tata Sons Private
Limited, its
subsidiaries and
joint ventures
10.46
0.02
-
285.72
186.54
1.97
3,782.76
-
-
43.96
20.54
0.02
-
278.54
289.25
-
-
50.69
(1.03)
5.35
3.12
3.57
-
-
134.91
46.82
1,263.64
1,267.11
1,023.31
977.80
241.47
263.32
186.78
204.51
-
-
-
3,420.56
(` crore)
Total
79.63
(1.02)
5.35
305.45
193.19
1.97
3,782.76
384.91
46.82
1,334.28
1,412.26
1,034.04
981.19
558.64
603.73
186.78
204.51
-
3,420.56
Figures in italics represent comparative figures of previous year.
(i) The details of remuneration paid to the key managerial personnel is provided in note 31, page 373.
During the year ended March 31, 2019, value of shares subscribed by key managerial personnel and their relatives under rights issue is Nil
(2017-18: `287,476.00)
The Group paid dividend of `32,345.87 (2017-18: `27,420.00) to key managerial personnel and `3,895.10 (2017-18: `3,310.00) to relatives
of key managerial personnel during the year ended March 31, 2019.
(ii)
During the year ended March 31, 2019, the Group has contributed `337.70 crore (2017-18: `493.14 crore) to post-employment benefit plans.
As at March 31, 2019, amount receivable from post-employment benefit funds is `769.20 crore (March 31, 2018: `302.14 crore) on account
of retirement benefit obligations paid by the entities within the Group directly.
(iii) Details of investments made by the Company in preference shares of its joint ventures and associates is disclosed in note 8, page 337.
(iv) Commitment with respect to joint ventures and associates is disclosed in note 39B, page 391.
(v) Transaction with joint ventures have been disclosed at full value and not at their proportionate share.
408
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
47. The Board of Directors of the Company have considered and approved a merger of Bamnipal Steel Limited and Tata Steel BSL Limited
(formerly Bhushan Steel Limited) into the Company by way of a composite scheme of amalgamation and have recommended a merger
ratio of 1 equity share of 10/-each fully paid up of the Company for every 15 equity shares of 2/- each fully paid up held by the public
shareholders of Tata Steel BSL Limited. The merger is subject to shareholders and other regulatory approvals.
48. On April 9, 2019, Tata Sponge Iron Limited, a subsidiary of the Company completed the acquisition of the steel business of Usha Martin
Limited (UML) followed by signing of definitive agreement in September 2018. The acquisition involves UML’s 1.0 MnTPA speciality steel
plant in Jamshedpur that makes alloy based long products, a functional iron ore mine, a coal mine under development and captive power
plants. The acquisition involves cash consideration after adjustment for negative working capital and debt like items payable to UML
of `4,094.07 crore, which is subject to further hold backs of `640.00 crore, pending transfer of some of the assets including mines and
certain land parcels.
49. The Company and its Indian subsidiaries is in the process of evaluating the impact of the recent Supreme Court Judgement in case of
"Vivekananda Vidyamandir and Others Vs The Regional Provident Fund Commissioner (II) West Bengal" and the related circular (Circular
No. CI/ 1(33)2019/Vivekananda Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation
to non-exclusion of certain allowances from the definition of "basic wages" of the relevant employees for the purposes of determining
contribution to provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the
management which is supported by legal opinion, the aforesaid matter is not likely to have a significant impact and accordingly no
provision has been considered in the consolidated financial statements.
50. On June 30, 2018, the Company and Thyssenkrupp AG signed definitive agreements to combine their European steel businesses in 50:50
joint venture in a new company. This follows the signing of a Memorandum of Understanding in September 2017. The proposed new
company, to be named thyssenkrupp Tata Steel BV, will be positioned as a leading pan European high quality flat steel producer with
a strong focus on performance, quality and technology leadership. The transaction is subject to merger control clearance in several
jurisdictions, including the European Union. The business proposed to be contributed to the joint venture has not been classified as held
for sale as at March 31, 2019.
51. Dividend
The dividend declared by the Company is based on profits available for distribution as reported in the standalone financial statements of
the Company. On April 25, 2019, the Board of Directors of the Company have proposed a dividend of `13.00 per Ordinary Share of `10
each and `3.25 per partly paid Ordinary Share of `10 each (paid up `2.504 per share) in respect of the year ended March 31, 2019 subject
to the approval of shareholders at the Annual General Meeting. If approved, the dividend would result in a cash outflow of `1,794.33 crore
inclusive of dividend distribution tax of `306.21 crore.
52. Previous year figures have been recasted/restated wherever necessary.
409
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
.
7
9
2
8
4
0
1
,
.
6
1
1
0
1
)
2
2
0
5
(
.
.
)
4
7
4
3
(
.
9
1
3
3
5
0
1
,
)
7
7
5
(
.
3
9
2
.
1
6
5
4
.
0
2
7
9
.
6
2
0
.
6
0
0
.
)
6
0
0
(
.
)
1
1
0
(
.
.
8
1
4
3
1
.
)
2
6
1
7
8
(
)
1
0
0
(
.
)
6
7
0
(
.
)
1
0
0
(
.
2
1
0
1
.
)
7
6
5
(
.
6
5
2
1
.
-
)
6
0
4
(
.
)
1
9
3
(
.
)
3
0
0
(
.
.
2
9
1
8
1
)
1
0
0
(
.
9
3
8
7
.
)
9
8
9
1
(
.
6
7
4
.
3
6
9
5
.
)
4
9
6
(
.
)
3
9
0
1
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
0
7
9
5
.
)
6
6
5
1
(
.
)
6
0
0
(
.
3
0
0
.
4
4
0
.
4
9
0
.
0
0
0
.
9
2
1
.
0
0
0
.
)
0
0
0
(
.
)
0
0
0
(
.
)
1
4
8
(
.
)
0
0
0
(
.
)
1
0
0
(
.
)
0
0
0
(
.
0
1
0
.
)
5
0
0
(
.
2
1
0
.
-
)
4
0
0
(
.
)
4
0
0
(
.
)
0
0
0
(
.
6
7
1
.
)
0
0
0
(
.
6
7
0
.
)
9
1
0
(
.
5
0
0
.
8
5
0
.
)
7
0
0
(
.
)
1
1
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
8
5
0
.
)
5
1
0
(
.
)
5
0
6
(
.
-
6
6
0
.
-
-
)
9
1
4
(
.
-
6
4
0
.
-
-
5
8
9
.
1
8
6
.
-
-
-
-
-
-
1
2
8
.
8
6
5
.
-
-
-
-
-
1
0
0
.
)
3
5
0
(
.
)
1
8
6
(
.
)
4
0
0
(
.
-
3
0
0
.
-
9
2
2
.
-
)
2
1
0
(
.
3
6
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
0
0
.
)
7
3
0
(
.
)
1
7
4
(
.
)
3
0
0
(
.
-
2
0
0
.
-
8
5
1
.
-
)
8
0
0
(
.
3
1
1
.
-
-
-
-
-
-
-
-
-
-
3
0
0
.
-
2
0
0
.
8
2
0
.
3
9
2
.
5
9
4
4
.
0
2
7
9
.
6
2
0
.
6
0
0
.
)
6
0
0
(
.
)
1
1
0
(
.
.
3
3
4
2
1
.
)
3
8
9
7
8
(
)
1
0
0
(
.
)
6
7
0
(
.
)
1
0
0
(
.
2
1
0
1
.
)
8
6
5
(
.
9
0
3
1
.
-
5
7
2
.
)
7
8
3
(
.
)
3
0
0
(
.
.
9
8
1
8
1
)
1
0
0
(
.
0
1
6
7
.
.
)
9
8
9
1
(
8
8
4
.
0
0
8
5
.
)
4
9
6
(
.
.
)
3
9
0
1
(
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
)
1
0
0
(
.
7
6
9
5
.
.
)
6
6
5
1
(
.
8
0
3
0
1
0
0
0
.
3
0
0
.
4
4
0
.
5
9
0
.
0
0
0
.
2
2
1
.
0
0
0
.
)
0
0
0
(
.
)
0
0
0
(
.
)
1
6
8
(
.
)
0
0
0
(
.
)
1
0
0
(
.
)
0
0
0
(
.
0
1
0
.
)
6
0
0
(
.
3
1
0
.
-
3
0
0
.
)
4
0
0
(
.
)
0
0
0
(
.
8
7
1
.
)
0
0
0
(
.
4
7
0
.
)
9
1
0
(
.
5
0
0
.
7
5
0
.
)
7
0
0
(
.
)
1
1
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
8
5
0
.
)
5
1
0
(
.
.
1
7
9
2
7
2
7
,
.
2
5
5
0
1
R
N
I
d
e
t
i
m
i
L
l
e
e
t
S
a
t
a
T
t
n
e
r
a
P
.
A
-
.
9
7
5
4
.
4
3
7
3
1
.
)
9
6
6
7
(
1
0
4
.
2
2
1
.
)
1
8
0
(
.
.
7
7
0
4
.
7
4
3
8
0
1
,
.
7
2
4
3
3
8
1
,
3
0
0
.
)
1
0
1
(
.
3
0
0
.
.
6
8
9
4
.
8
0
6
8
)
4
0
0
(
.
.
8
5
8
9
.
1
2
8
4
4
.
1
3
6
1
1
)
7
8
9
(
.
.
8
0
7
6
7
)
2
0
0
(
.
.
3
4
1
8
6
.
)
1
2
8
6
4
(
.
1
0
4
5
.
1
1
1
1
7
1
7
1
.
.
2
9
2
1
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
.
9
5
8
7
2
.
4
2
3
4
2
-
7
0
0
.
0
2
0
.
)
1
1
0
(
.
1
0
0
.
7
5
1
.
0
0
0
.
)
0
0
0
(
.
6
0
0
.
0
6
6
2
.
0
0
0
.
)
0
0
0
(
.
0
0
0
.
7
0
0
.
5
6
0
.
2
1
0
.
)
0
0
0
(
.
4
1
0
.
7
1
0
.
)
1
0
0
(
.
1
1
1
.
)
0
0
0
(
.
9
9
0
.
)
8
6
0
(
.
8
0
0
.
3
0
1
.
0
0
0
.
2
0
0
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
0
4
0
.
5
3
0
.
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
d
e
t
i
i
m
L
y
n
a
p
m
o
C
s
e
c
i
v
r
e
S
&
s
e
i
t
i
l
i
t
U
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
d
e
r
a
h
S
l
a
b
o
G
l
i
t
a
m
i
l
a
K
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
r
e
t
a
W
a
d
a
H
l
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
n
e
m
p
o
e
v
e
D
l
t
r
o
P
e
v
i
t
a
e
r
C
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
r
o
P
a
h
k
e
r
a
n
r
a
b
u
S
d
e
t
i
i
m
L
y
g
r
e
n
E
L
I
S
T
d
e
t
i
i
m
L
n
o
r
I
e
g
n
o
p
S
a
t
a
T
d
e
t
i
i
m
L
L
S
B
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
a
d
n
I
(
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
e
t
a
v
i
r
P
a
d
n
i
n
a
i
d
n
I
I
p
i
z
l
a
K
s
e
i
r
a
i
d
i
s
b
u
S
d
e
t
i
i
m
L
)
a
s
s
i
r
O
(
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
i
m
L
t
a
r
a
h
B
a
y
h
d
a
M
l
e
e
t
S
n
a
h
s
u
h
B
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
g
d
i
r
B
l
l
o
T
r
u
p
a
y
t
i
d
A
d
e
t
i
i
m
L
e
n
o
Z
c
i
m
o
n
o
c
E
l
a
i
c
e
p
S
l
e
e
t
S
a
t
a
T
d
t
L
s
t
c
u
d
o
r
P
e
r
i
W
&
l
e
e
t
S
n
a
d
n
i
I
e
h
T
d
e
t
i
i
m
L
)
h
t
u
o
S
(
l
e
e
t
S
n
a
h
s
u
h
B
d
t
L
t
v
P
s
e
c
i
v
r
e
S
t
r
o
p
x
E
r
a
h
o
M
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
a
k
i
l
a
v
u
u
R
j
d
e
t
i
i
m
L
s
y
o
l
l
A
S
T
d
t
L
s
e
c
i
v
r
e
S
g
n
i
r
e
e
n
g
n
E
f
r
o
K
a
t
a
T
i
d
e
t
i
i
m
L
a
h
s
i
d
O
l
e
e
t
S
a
t
a
T
.
d
t
L
s
k
i
l
a
t
e
M
a
t
a
T
d
e
t
i
i
m
L
n
o
i
t
u
b
i
r
t
s
i
D
d
n
a
g
n
i
s
s
e
c
o
r
P
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
l
l
o
R
o
y
a
T
d
e
t
i
i
m
L
s
t
n
e
m
g
P
a
t
a
T
e
h
T
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
g
n
i
t
r
o
p
S
d
n
a
l
l
a
b
t
o
o
F
r
u
p
d
e
h
s
m
a
J
n
o
i
t
a
d
n
u
o
F
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
l
e
e
t
S
i
h
c
k
a
S
d
t
L
a
d
n
i
I
f
o
y
n
a
p
m
o
C
e
t
a
p
n
T
e
h
T
l
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
r
e
w
o
P
r
a
w
h
s
e
n
a
b
u
h
B
d
e
t
i
i
m
L
l
e
e
t
S
l
i
a
p
n
m
a
B
d
e
t
i
i
m
L
l
e
e
t
S
a
n
m
D
i
d
e
t
i
i
m
L
l
e
e
t
S
e
l
i
M
i
t
h
g
a
r
t
S
d
e
t
i
i
m
L
l
e
e
t
S
i
d
n
u
m
a
o
N
d
e
t
i
i
m
L
l
e
e
t
S
r
u
p
u
t
s
i
B
d
e
t
i
i
m
L
l
e
e
t
S
a
b
o
d
a
m
a
J
d
e
t
i
i
m
L
l
e
e
t
S
i
l
a
a
s
g
u
J
.
B
)
a
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
410
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
n
g
i
e
r
o
F
)
b
-
-
-
-
1
6
0
3
.
)
8
5
0
(
.
.
0
1
0
9
1
.
4
8
4
4
1
2
7
2
.
-
-
-
-
0
3
0
.
)
1
0
0
(
.
-
-
-
3
8
1
.
0
4
1
.
3
0
0
.
-
-
-
-
-
-
-
4
3
9
2
.
8
2
0
.
-
-
-
-
-
-
-
-
-
-
)
0
5
5
(
.
)
0
8
3
(
.
.
0
1
0
9
1
.
4
8
4
4
1
2
7
2
.
.
1
5
1
3
1
.
0
2
0
0
1
8
8
1
.
-
-
-
-
-
-
-
-
-
-
-
-
)
1
8
4
(
.
)
5
0
0
(
.
)
1
8
4
(
.
)
3
3
3
(
.
-
-
-
1
2
1
.
6
0
0
.
)
6
0
7
(
.
)
8
8
0
(
.
)
6
0
9
(
.
-
-
)
2
0
0
(
.
4
9
2
.
-
1
6
3
3
.
-
-
-
-
-
-
-
-
-
-
1
0
0
.
0
0
0
.
)
7
0
0
(
.
)
1
0
0
(
.
)
9
0
0
(
.
-
-
)
0
0
0
(
.
3
0
0
.
-
2
3
0
.
-
-
-
-
-
-
-
.
)
7
6
9
0
7
(
)
5
8
6
(
.
-
4
0
5
7
.
-
-
4
1
0
.
-
2
7
0
.
-
0
0
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
9
2
.
1
6
3
3
.
-
3
0
2
.
5
2
3
2
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
1
6
3
.
)
8
5
0
(
.
-
5
3
0
.
)
1
0
0
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
3
9
2
.
9
2
0
.
-
-
-
-
-
-
1
2
1
.
6
0
0
.
)
6
0
7
(
.
)
8
8
0
(
.
)
6
0
9
(
.
-
-
-
-
-
-
-
-
1
0
0
.
0
0
0
.
)
7
0
0
(
.
)
1
0
0
(
.
)
9
0
0
(
.
-
-
)
2
0
0
(
.
)
0
0
0
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
)
7
6
9
0
7
(
)
5
9
6
(
.
-
4
0
5
7
.
-
-
4
1
0
.
-
3
7
0
.
-
0
0
0
.
-
0
0
0
.
.
9
7
3
6
1
.
)
5
7
4
5
(
-
.
7
9
1
4
8
-
.
6
8
5
3
1
.
4
8
4
4
1
.
8
9
3
4
.
4
1
6
7
2
-
0
0
0
.
-
.
8
7
8
7
3
.
1
5
6
9
4
0
0
0
.
.
1
8
6
1
.
8
0
7
4
1
.
3
3
1
5
)
5
5
0
(
.
8
0
2
.
)
8
8
0
(
.
.
9
3
5
4
1
.
3
7
0
1
1
.
4
0
1
4
4
5
9
.
3
5
5
.
4
9
2
.
-
-
0
0
0
.
.
)
0
6
5
1
(
.
7
6
4
1
4
.
8
0
5
3
0
4
,
0
0
9
.
0
0
0
.
.
2
9
4
0
3
4
,
.
)
1
0
2
1
2
6
(
,
3
2
5
.
.
8
0
5
9
3
4
,
6
5
0
.
.
1
3
5
0
2
.
8
6
5
4
7
2
,
4
2
0
.
0
0
0
.
)
8
0
0
(
.
-
-
2
2
1
.
0
2
0
.
1
2
0
.
6
0
0
.
0
4
0
.
0
0
0
.
-
5
5
0
.
2
7
0
.
-
0
0
0
.
2
0
0
.
1
2
0
.
7
0
0
.
)
0
0
0
(
.
0
0
0
.
1
2
0
.
)
0
0
0
(
.
6
1
0
.
6
0
0
.
1
0
0
.
1
0
0
.
0
0
0
.
-
-
0
0
0
.
)
2
0
0
(
.
0
6
0
.
5
8
5
.
5
2
6
.
1
0
0
.
0
0
0
.
)
1
0
9
(
.
1
0
0
.
8
3
6
.
8
9
3
.
0
0
0
.
0
3
0
.
D
S
U
P
B
G
R
U
E
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
R
U
E
P
B
G
R
U
E
D
A
C
D
S
U
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
R
U
E
V
E
L
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
N
O
R
P
B
G
d
e
t
i
i
m
L
)
s
t
r
o
p
x
E
(
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
i
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
)
s
e
e
n
m
o
N
i
(
s
r
o
t
c
e
r
i
D
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
p
u
o
r
G
n
o
s
m
a
S
e
r
o
B
H
b
m
G
e
c
i
v
r
e
s
l
h
a
t
S
e
m
u
B
l
d
e
t
i
i
m
L
l
e
e
t
S
e
r
o
B
d
e
t
i
i
m
L
s
l
i
i
a
R
e
d
u
G
h
s
i
t
i
r
B
d
e
t
i
i
m
L
n
o
i
t
a
r
o
p
r
o
C
l
e
e
t
S
h
s
i
t
i
r
B
.
V
B
.
l
a
n
o
i
t
a
n
r
e
t
n
I
d
n
a
l
r
e
d
e
N
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
s
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
g
n
d
a
r
T
i
l
e
e
t
S
h
s
i
t
i
r
B
d
e
t
i
i
m
L
y
n
a
p
m
o
C
r
e
t
a
W
t
c
i
r
t
s
i
D
&
)
s
t
n
a
h
t
r
o
N
(
y
b
r
o
C
d
e
t
i
i
m
L
s
n
o
S
&
r
e
k
l
a
W
C
H
b
m
G
c
i
n
t
a
C
i
e
n
n
e
B
V
C
d
e
t
i
i
m
L
c
i
n
t
a
C
S
A
S
s
t
n
e
m
e
s
s
i
t
s
e
v
n
I
s
b
C
.
c
n
I
r
e
w
o
P
t
n
e
g
o
C
.
c
n
I
r
e
w
o
P
t
n
e
g
o
C
d
e
t
i
i
m
L
r
e
w
o
P
t
n
e
g
o
C
d
e
t
i
i
m
L
s
l
e
e
t
S
r
o
o
C
l
I
i
C
S
s
e
v
R
s
e
L
l
i
e
b
r
o
C
d
e
t
i
i
i
l
m
L
g
n
d
o
h
k
c
o
t
S
s
e
b
u
T
h
s
i
t
i
r
B
d
e
t
i
i
m
L
)
B
&
C
(
r
o
d
r
o
C
d
e
t
i
i
i
l
m
L
s
g
n
d
o
H
s
a
e
s
r
e
v
O
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
i
l
m
L
s
g
n
d
o
H
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
m
L
)
K
U
(
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
m
L
s
e
b
u
T
n
w
a
r
d
d
o
C
s
u
r
o
C
l
s
t
n
e
m
t
s
e
v
n
I
V
B
N
C
s
u
r
o
C
d
e
t
i
i
m
L
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
m
L
e
e
t
s
u
r
T
e
m
e
h
c
S
n
o
i
s
n
e
P
s
l
e
e
t
S
g
n
i
r
e
e
n
g
n
E
s
u
r
o
C
i
d
e
t
i
i
i
l
m
L
)
s
g
n
d
o
H
s
a
e
s
r
e
v
O
(
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
.
i
L
R
S
a
n
a
m
o
R
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
d
e
t
i
i
m
L
l
a
n
o
i
t
a
n
r
e
t
n
I
s
u
r
o
C
d
e
t
i
i
i
m
L
s
g
n
d
o
H
s
u
r
o
C
l
d
e
t
i
i
m
L
p
u
o
r
G
s
u
r
o
C
h
b
M
t
f
a
h
c
s
l
l
e
s
e
g
s
g
n
u
t
l
a
w
r
e
V
m
u
n
m
u
A
s
u
r
o
C
l
i
i
D
A
a
i
r
a
g
u
B
s
l
m
e
t
s
y
S
g
n
d
i
l
i
u
B
s
u
r
o
C
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
s
u
r
o
C
.
.
V
B
n
e
t
k
u
d
o
r
P
e
e
i
r
t
s
u
d
n
l
I
j
i
p
p
a
h
c
s
t
a
a
m
r
e
e
h
e
B
d
e
t
i
i
i
l
m
L
s
e
g
o
o
n
h
c
e
T
r
e
s
a
L
e
v
i
t
o
m
o
t
u
A
d
e
t
i
i
m
L
s
l
a
t
e
M
o
l
l
o
p
A
d
e
t
i
i
m
L
d
o
o
w
r
a
H
&
l
l
e
B
d
e
t
i
i
m
L
a
g
e
m
t
s
a
B
l
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
3
0
4
1
4
2
4
3
4
411
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
7
8
0
.
1
0
0
.
-
-
-
-
)
4
7
2
(
.
0
5
1
3
.
)
3
3
0
(
.
-
-
-
-
2
5
6
3
.
8
3
4
3
.
)
1
0
0
(
.
-
6
0
0
.
-
-
-
-
-
-
)
3
0
0
(
.
-
0
3
0
.
)
0
0
0
(
.
-
-
-
-
5
3
0
.
3
3
0
.
)
0
0
0
(
.
-
0
0
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
0
5
1
3
9
7
1
2
.
)
5
8
1
(
.
)
8
2
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7
8
0
.
1
0
0
.
)
4
7
2
(
.
)
3
0
0
(
.
-
-
-
-
)
3
3
0
(
.
)
0
0
0
(
.
-
-
-
-
2
5
6
3
.
3
2
6
3
.
)
1
0
0
(
.
-
6
0
0
.
-
-
-
-
-
-
-
6
3
0
.
5
3
0
.
)
0
0
0
(
.
-
0
0
0
.
-
-
-
5
8
2
.
3
0
0
.
)
4
4
2
1
(
.
)
1
6
8
(
.
9
2
5
1
.
5
1
0
.
-
-
-
-
4
0
4
3
.
)
6
9
4
(
.
.
0
4
2
7
1
7
1
2
.
6
7
0
.
9
6
1
.
7
0
0
.
8
2
0
1
.
.
4
7
3
0
2
-
-
6
2
0
.
2
9
6
2
.
2
9
7
1
.
0
6
6
.
)
7
0
5
(
.
-
-
-
-
-
-
3
3
0
.
)
5
0
0
(
.
-
6
6
1
.
2
0
0
.
1
0
0
.
2
0
0
.
0
0
0
.
0
1
0
.
7
9
1
.
-
0
0
0
.
6
2
0
.
-
7
1
0
.
6
0
0
.
-
-
-
)
5
0
0
(
.
-
-
-
-
-
-
-
-
-
-
4
0
4
3
.
.
5
5
3
2
)
8
7
8
(
.
.
0
4
2
7
1
)
7
0
6
(
.
.
7
2
9
1
1
-
-
-
-
-
-
-
-
.
4
9
7
8
1
.
2
0
0
3
1
)
7
8
0
(
.
7
2
0
.
4
8
2
2
.
)
3
0
0
(
.
3
8
7
1
.
6
5
6
.
-
-
-
-
)
0
6
0
(
.
9
1
0
.
0
8
5
1
.
)
2
0
0
(
.
.
3
3
2
1
4
5
4
.
-
-
-
-
-
-
-
-
-
-
-
-
)
6
9
4
(
.
)
5
0
0
(
.
-
-
5
9
0
1
.
6
7
0
.
9
6
1
.
7
0
0
.
8
2
0
1
.
0
8
5
1
.
7
8
0
.
)
1
0
0
(
.
8
0
4
.
3
0
0
.
9
0
0
.
4
0
0
.
-
-
1
1
0
.
1
0
0
.
2
0
0
.
0
0
0
.
0
1
0
.
5
1
0
.
1
0
0
.
)
0
0
0
(
.
4
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
2
4
7
.
.
9
4
8
5
6
.
)
4
6
1
2
(
.
6
2
5
5
1
.
)
1
8
1
2
1
(
0
0
0
.
.
8
4
4
4
1
)
1
5
0
(
.
4
3
0
.
0
0
0
.
2
0
0
.
0
0
0
.
.
1
5
2
7
2
.
5
1
7
7
.
9
0
8
6
.
3
6
9
7
1
.
0
0
1
2
0
0
0
.
.
)
3
6
9
7
(
6
0
0
7
.
3
1
0
.
)
0
1
1
(
.
9
3
3
.
.
8
2
7
4
.
)
2
3
1
1
(
.
4
3
8
6
.
7
3
0
2
1
0
0
.
.
6
0
0
4
1
.
9
5
1
9
.
1
7
3
6
4
)
4
2
8
(
.
.
3
7
7
4
-
-
-
-
-
-
-
1
0
0
.
6
9
0
.
)
3
0
0
(
.
3
2
0
.
)
8
1
0
(
.
0
0
0
.
1
2
0
.
)
0
0
0
(
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
4
0
.
1
1
0
.
0
1
0
.
6
2
0
.
3
0
0
.
0
0
0
.
)
2
1
0
(
.
0
1
0
.
0
0
0
.
)
0
0
0
(
.
0
0
0
.
7
0
0
.
)
2
0
0
(
.
0
1
0
.
3
0
0
.
0
0
0
.
0
2
0
.
3
1
0
.
7
6
0
.
)
1
0
0
(
.
7
0
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
)
7
0
5
(
.
)
5
0
0
(
.
.
5
3
7
8
.
6
5
2
1
.
)
9
2
3
9
(
0
0
0
.
3
1
0
.
2
0
0
.
)
4
1
0
(
.
0
0
0
.
R
U
E
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
P
B
G
B
U
R
R
U
E
P
B
G
H
A
U
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
R
U
E
P
B
G
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
P
B
G
P
B
G
K
E
S
P
B
G
P
B
G
R
U
E
D
S
U
D
S
U
R
U
E
R
U
E
D
G
S
E
A
U
R
U
E
R
U
E
R
U
E
P
B
G
R
U
E
R
U
E
R
U
E
P
B
G
P
B
G
d
e
t
i
i
m
L
)
a
d
n
I
(
i
s
e
c
i
v
r
e
S
n
o
s
i
a
L
s
u
r
o
C
i
d
e
t
i
i
i
m
L
s
e
p
P
r
e
t
e
m
a
D
e
g
r
a
L
s
u
r
o
C
i
d
e
t
i
i
m
L
d
n
a
e
r
I
l
s
u
r
o
C
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
s
u
r
o
C
.
.
i
i
V
B
m
u
n
m
u
A
y
r
a
m
l
i
r
P
s
u
r
o
C
d
e
t
i
i
m
L
e
r
t
n
e
C
e
c
i
v
r
e
S
s
u
r
o
C
C
L
L
P
T
S
e
c
i
v
r
e
S
l
e
e
t
S
s
u
r
o
C
y
t
r
e
p
o
r
P
s
u
r
o
C
.
.
O
O
Z
a
k
l
o
p
S
d
n
a
o
P
s
e
b
u
T
s
u
r
o
C
l
y
n
a
p
m
o
C
y
t
i
l
i
i
b
a
L
d
e
t
i
i
i
m
L
e
n
a
r
k
U
s
u
r
o
C
d
e
t
i
i
m
L
e
e
t
s
u
r
T
e
r
a
c
h
t
l
a
e
H
K
U
s
u
r
o
C
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
c
n
a
r
u
s
n
I
l
e
b
i
c
u
r
C
H
b
m
G
s
l
e
g
e
D
d
e
t
i
i
m
L
)
5
8
(
N
P
C
.
c
l
P
p
u
o
r
G
m
r
s
D
.
.
V
B
a
k
m
e
D
B
A
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
d
a
t
s
l
m
a
H
d
e
t
i
i
m
L
e
r
g
a
E
n
o
y
L
t
n
a
r
G
d
e
t
i
i
m
L
n
o
s
m
a
S
E
H
d
e
t
i
i
i
l
m
L
s
g
n
d
o
H
s
d
e
fi
d
a
H
l
d
e
t
i
i
m
L
s
l
a
t
e
M
s
i
m
m
S
e
b
m
a
G
l
d
e
t
i
i
m
L
s
g
n
d
o
H
l
i
l
e
e
t
s
r
i
F
H
b
m
G
l
fi
o
r
P
r
e
h
c
s
i
F
d
e
t
i
i
m
L
s
g
n
i
s
s
e
r
p
o
r
u
E
d
e
t
i
i
m
L
p
u
o
r
G
l
e
e
t
s
r
i
F
d
e
t
i
i
m
L
s
e
i
t
r
e
p
o
r
P
s
l
l
i
m
w
o
r
r
a
H
H
b
m
G
r
e
l
l
u
M
&
e
l
l
i
H
.
c
n
I
a
s
U
r
e
l
l
u
M
&
e
l
l
i
H
.
c
n
I
a
s
U
s
n
e
v
o
g
o
o
H
d
e
t
i
i
m
L
a
g
e
m
r
e
m
m
a
H
.
V
B
.
l
i
m
s
E
d
e
t
i
i
m
L
y
n
a
p
m
o
C
l
e
e
t
S
s
k
r
o
W
n
o
d
n
o
L
d
e
t
i
i
m
L
s
e
b
u
T
r
e
t
s
i
L
.
.
L
S
l
e
e
t
S
e
d
y
a
L
d
e
t
i
i
m
L
s
e
i
l
p
p
u
S
l
e
e
t
S
d
n
a
d
M
l
i
S
A
S
n
o
i
t
u
b
i
r
t
s
i
D
l
a
t
e
M
r
e
t
n
I
d
e
t
i
i
m
L
e
t
P
a
i
s
A
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
H
b
m
G
p
i
z
l
a
K
E
Z
F
p
i
z
l
a
K
L
R
S
y
l
a
t
I
p
i
z
l
a
K
d
e
t
i
i
m
L
p
i
z
l
a
K
.
.
.
i
U
L
S
n
a
p
S
p
i
z
l
a
K
.
.
V
B
”
p
a
a
s
e
e
r
B
“
t
i
z
e
b
n
e
z
i
u
H
4
4
5
4
6
4
7
4
8
4
9
4
0
5
1
5
2
5
3
5
4
5
5
5
6
5
7
5
8
5
9
5
0
6
1
6
2
6
3
6
4
6
5
6
6
6
7
6
8
6
9
6
0
7
1
7
2
7
3
7
4
7
5
7
6
7
7
7
8
7
9
7
0
8
1
8
2
8
3
8
4
8
5
8
6
8
7
8
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
412
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
6
0
3
2
.
)
1
7
6
(
.
-
4
0
1
.
)
5
1
7
1
(
.
-
-
-
2
2
0
.
)
6
0
0
(
.
1
0
0
.
)
7
1
0
(
.
-
-
-
-
-
-
-
-
)
2
5
0
(
.
)
1
0
0
(
.
)
3
7
0
(
.
)
1
0
0
(
.
-
-
-
-
2
3
2
1
.
)
4
2
2
(
.
.
)
2
5
6
1
2
(
)
5
4
7
(
.
9
5
1
1
.
)
8
6
3
(
.
7
3
6
3
.
-
-
-
-
-
-
-
2
1
0
.
)
2
0
0
(
.
)
9
0
2
(
.
)
7
0
0
(
.
1
1
0
.
)
4
0
0
(
.
5
3
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
3
0
.
3
2
0
.
.
)
1
3
6
3
2
(
.
)
8
4
3
6
1
(
-
-
-
-
-
-
7
3
6
3
.
.
6
1
5
2
-
-
-
-
-
-
3
7
2
2
.
)
1
7
6
(
.
-
4
0
1
.
.
)
5
1
7
1
(
-
-
-
2
2
0
.
)
7
0
0
(
.
1
0
0
.
)
7
1
0
(
.
-
-
)
2
5
0
(
.
)
1
0
0
(
.
-
-
-
-
-
-
)
3
7
0
(
.
)
1
0
0
(
.
-
-
-
-
2
3
2
1
.
)
4
2
2
(
.
9
7
9
1
.
)
5
4
7
(
.
9
5
1
1
.
)
8
6
3
(
.
-
-
-
-
-
-
-
-
2
1
0
.
)
2
0
0
(
.
9
1
0
.
)
7
0
0
(
.
1
1
0
.
)
4
0
0
(
.
-
-
-
-
)
2
0
5
5
(
.
)
3
5
0
(
.
)
2
1
2
(
.
)
7
4
1
(
.
.
)
0
9
2
5
(
)
2
5
0
(
.
-
6
6
6
.
4
1
2
.
5
6
0
.
3
1
8
.
3
4
0
.
)
3
1
2
5
(
.
)
1
8
9
2
(
.
6
5
6
3
.
.
5
1
4
4
6
2
,
.
3
3
0
8
0
1
,
4
2
3
2
.
4
9
7
1
.
9
0
0
.
8
6
3
.
6
8
1
.
-
-
6
0
0
.
2
0
0
.
1
0
0
.
2
5
5
2
.
8
0
0
.
0
0
0
.
)
0
5
0
(
.
)
9
2
0
(
.
5
3
0
.
2
4
0
1
.
2
2
0
.
7
1
0
.
0
0
0
.
4
0
0
.
2
0
0
.
-
-
-
-
)
5
6
0
(
.
)
7
2
0
(
.
-
-
-
-
-
-
-
)
5
4
0
(
.
)
9
1
0
(
.
-
-
-
-
-
-
-
-
-
-
-
-
)
2
8
7
(
.
)
1
4
5
(
.
.
)
5
3
4
8
6
(
.
)
4
4
3
7
4
(
-
)
1
0
1
(
.
-
)
0
7
0
(
.
-
6
6
6
.
9
7
2
.
5
6
0
.
3
1
8
.
3
4
0
.
.
)
3
1
2
5
(
)
1
8
9
2
(
.
8
3
4
4
.
.
2
4
4
4
6
2
,
.
8
6
4
6
7
1
,
4
2
3
2
.
5
9
8
1
.
9
0
0
.
8
6
3
.
6
8
1
.
-
-
7
0
0
.
3
0
0
.
1
0
0
.
.
8
8
5
2
8
0
0
.
0
0
0
.
)
1
5
0
(
.
)
9
2
0
(
.
3
4
0
.
7
2
7
1
.
3
2
0
.
9
1
0
.
0
0
0
.
4
0
0
.
2
0
0
.
-
.
1
9
0
0
1
.
1
0
0
2
-
.
1
2
6
1
.
3
8
6
4
0
0
0
.
.
9
7
5
2
.
)
9
9
3
1
(
.
9
0
6
1
.
7
1
0
7
.
)
1
2
9
1
(
.
0
1
9
2
.
)
3
7
3
3
4
(
.
6
0
1
7
4
4
9
3
.
.
7
7
4
5
2
.
1
0
2
3
1
.
9
0
8
6
1
.
5
6
6
7
1
.
2
0
2
5
.
8
5
2
2
2
.
0
2
7
8
6
.
7
4
1
4
8
1
0
.
-
.
7
2
5
8
1
.
5
0
2
5
.
1
3
1
1
.
3
2
0
5
1
.
7
1
4
0
2
.
1
8
1
2
)
1
4
9
1
(
.
.
1
2
8
8
2
.
)
4
1
9
6
(
.
3
8
0
7
8
.
8
1
9
5
3
.
)
6
5
8
5
7
4
1
(
,
.
3
5
3
8
2
0
2
,
.
3
8
2
2
6
.
2
7
9
0
2
1
,
4
9
1
.
3
0
6
.
2
8
2
.
8
9
0
.
5
1
0
.
3
0
0
.
-
2
0
0
.
7
0
0
.
0
0
0
.
4
0
0
.
)
2
0
0
(
.
2
0
0
.
0
1
0
.
)
3
0
0
(
.
4
0
0
.
)
3
6
0
(
.
8
6
0
.
1
0
0
.
7
3
0
.
9
1
0
.
4
2
0
.
6
2
0
.
8
0
0
.
2
3
0
.
0
0
1
.
6
0
0
.
0
0
0
.
-
7
2
0
.
8
0
0
.
2
0
0
.
2
2
0
.
0
3
0
.
3
0
0
.
.
)
1
4
1
2
(
)
3
0
0
(
.
2
4
0
.
)
0
1
0
(
.
6
2
1
.
2
5
0
.
3
4
9
2
.
0
9
0
.
6
7
1
.
0
0
0
.
1
0
0
.
0
0
0
.
0
0
0
.
F
H
C
R
U
E
P
B
G
K
O
N
K
O
N
P
B
G
P
B
G
D
S
U
P
B
G
P
B
G
P
B
G
D
S
U
P
B
G
P
B
G
P
B
G
R
U
E
R
U
E
P
B
G
R
U
E
R
U
E
R
U
E
R
U
E
P
B
G
P
B
G
R
U
E
P
B
G
K
E
S
P
B
G
R
U
E
R
U
E
K
K
D
P
B
G
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
D
S
U
D
S
U
D
A
C
K
Z
C
K
K
D
R
U
E
Y
O
e
r
t
n
e
C
e
c
i
v
r
e
S
l
e
e
t
S
i
l
a
t
n
a
a
N
G
A
e
m
e
t
s
y
s
u
a
B
a
n
a
t
n
o
M
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
S
e
d
w
n
o
i
t
a
N
i
d
e
t
i
i
m
L
)
l
a
n
o
i
t
a
n
r
e
t
n
I
(
p
i
r
t
S
d
e
t
a
P
l
d
e
t
i
i
m
L
l
a
n
o
i
t
a
n
r
e
t
n
I
t
a
o
c
e
r
P
d
e
t
i
i
m
L
s
l
e
e
t
S
l
a
c
i
r
t
c
e
E
b
r
O
l
B
A
r
e
t
a
p
n
n
y
T
l
l
a
t
S
k
s
r
o
N
S
A
r
e
t
a
p
n
n
y
T
l
l
a
t
S
k
s
r
o
N
d
e
t
i
i
m
L
s
r
e
i
r
r
a
C
e
r
O
.
c
n
I
o
c
m
e
r
O
d
e
t
i
i
m
L
t
a
o
c
e
r
P
.
n
n
o
C
f
O
c
n
I
o
C
l
e
e
t
S
n
w
o
r
B
-
y
t
r
e
ff
a
R
d
e
t
i
i
l
m
L
s
k
r
o
w
e
e
t
S
k
a
O
d
n
u
o
R
d
e
t
i
i
m
L
t
s
a
b
n
u
R
l
d
e
t
i
i
m
L
a
g
e
m
n
u
R
h
b
m
G
n
e
h
c
r
i
k
n
e
s
l
e
G
r
e
t
n
e
C
e
c
i
v
r
e
S
d
e
t
i
i
m
L
s
e
b
u
T
s
s
e
m
a
e
S
l
H
b
m
G
l
fi
o
r
P
B
A
S
.
V
B
.
l
e
fi
o
r
P
B
A
S
.
.
V
B
t
h
c
i
r
t
s
a
a
M
e
r
t
n
e
C
e
c
i
v
r
e
S
l
a
S
)
l
a
g
e
S
(
n
o
i
t
a
s
i
n
a
v
a
G
e
D
e
n
n
e
e
p
o
r
u
E
e
t
e
i
c
o
S
d
e
t
i
i
m
L
)
s
a
e
s
r
e
v
O
(
d
e
t
i
i
m
L
d
n
a
e
r
I
l
f
O
s
d
y
o
l
L
&
s
t
r
a
w
e
t
S
s
d
y
o
l
L
d
n
A
s
t
r
a
w
e
t
S
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
S
d
e
t
i
i
m
L
n
o
i
t
a
i
c
o
s
s
A
g
n
i
s
u
o
H
n
e
d
n
w
S
i
B
A
s
k
u
r
B
r
a
m
m
a
h
a
r
u
S
d
e
t
i
i
i
m
L
s
g
n
d
o
h
k
c
o
t
S
l
l
e
e
t
S
.
V
B
.
l
i
e
d
n
a
H
n
E
g
n
k
r
e
w
r
e
v
a
a
t
S
l
S
A
S
s
e
m
e
t
s
y
S
t
e
t
n
e
m
i
t
a
B
e
c
n
a
r
F
l
e
e
t
S
a
t
a
T
S
/
A
r
e
m
e
t
s
y
s
g
g
y
B
k
r
a
m
n
e
D
l
e
e
t
S
a
t
a
T
i
V
B
g
n
d
a
r
T
s
l
a
t
e
M
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
V
B
n
o
i
t
u
b
i
r
t
s
i
D
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
i
l
S
A
S
s
g
n
d
o
H
e
c
n
a
r
F
l
e
e
t
S
a
t
a
T
c
n
I
i
s
g
n
d
o
H
l
)
s
a
c
i
r
e
m
A
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
H
b
m
G
y
n
a
m
r
e
G
l
e
e
t
S
a
t
a
T
V
B
n
e
d
u
m
i
j
I
l
e
e
t
S
a
t
a
T
c
n
I
)
s
a
c
i
r
e
m
A
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
c
n
I
i
s
g
n
d
o
H
l
)
a
d
a
n
a
C
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
.
i
V
N
s
l
e
e
t
S
g
n
g
a
k
c
a
P
m
u
g
e
B
l
i
.
.
V
N
s
e
c
i
v
r
e
S
m
u
g
e
B
l
i
l
e
e
t
S
a
t
a
T
l
e
e
t
S
a
t
a
T
.
.
O
R
S
)
c
i
l
b
u
p
e
R
h
c
e
z
C
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
S
/
A
)
k
r
a
m
n
e
D
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
Y
O
)
d
n
a
n
F
(
l
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
8
8
9
8
0
9
1
9
2
9
3
9
4
9
5
9
6
9
7
9
8
9
9
9
0
0
1
1
0
1
2
0
1
3
0
1
4
0
1
5
0
1
6
0
1
7
0
1
8
0
1
9
0
1
0
1
1
1
1
1
2
1
1
3
1
1
4
1
1
5
1
1
6
1
1
7
1
1
8
1
1
9
1
1
0
2
1
1
2
1
2
2
1
3
2
1
4
2
1
5
2
1
6
2
1
7
2
1
8
2
1
9
2
1
0
3
1
1
3
1
413
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
5
1
2
.
8
6
4
1
.
)
9
4
3
5
(
.
1
0
9
1
.
-
6
3
0
.
4
0
0
.
5
3
0
.
0
2
2
.
-
8
0
9
.
3
3
0
.
)
7
6
3
1
(
.
)
3
1
5
6
(
.
.
8
6
5
1
2
-
)
8
2
3
1
(
.
)
2
0
0
(
.
)
6
4
7
2
(
.
)
6
4
6
7
(
.
3
7
3
.
)
8
3
7
2
(
.
)
7
4
5
(
.
.
)
0
3
7
7
1
(
.
)
2
8
1
3
3
1
(
,
.
)
8
2
2
0
7
3
(
,
-
-
-
7
1
0
.
)
0
5
0
(
.
)
9
2
6
5
(
.
-
-
)
6
2
0
(
.
2
0
0
.
4
1
0
.
)
2
5
0
(
.
8
1
0
.
-
0
0
0
.
0
0
0
.
0
0
0
.
2
0
0
.
-
9
0
0
.
0
0
0
.
)
3
1
0
(
.
)
3
6
0
(
.
8
0
2
.
-
)
3
1
0
(
.
)
0
0
0
(
.
)
6
2
0
(
.
)
4
7
0
(
.
)
5
8
2
1
(
.
4
0
0
.
)
6
2
0
(
.
)
5
0
0
(
.
)
1
7
1
(
.
)
3
7
5
3
(
.
0
0
0
.
-
-
-
-
)
0
0
0
(
.
)
4
5
0
(
.
)
0
0
0
(
.
-
e
m
o
c
n
i
.
)
4
0
5
1
4
(
)
1
0
4
(
.
-
-
)
7
7
2
(
.
)
9
8
4
1
(
.
2
8
4
.
-
-
-
)
3
0
0
(
.
-
)
4
1
0
(
.
5
0
0
.
-
-
-
)
8
3
2
(
.
-
)
5
6
1
(
.
e
m
o
c
n
i
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
5
5
.
1
8
3
.
-
-
.
)
9
7
7
1
(
)
1
3
2
1
(
.
.
)
8
6
6
3
(
)
8
3
5
2
(
.
-
-
-
-
-
3
8
1
.
-
-
-
-
-
7
2
1
.
.
)
3
9
8
6
4
(
.
)
1
4
4
2
3
(
-
-
-
-
-
-
-
-
-
-
.
)
2
5
4
5
(
)
2
7
7
3
(
.
-
-
-
-
-
-
-
-
-
)
1
0
1
(
.
2
8
4
.
-
-
-
-
-
-
-
-
-
)
0
7
0
(
.
3
3
3
.
5
1
2
.
6
0
7
1
.
.
)
9
4
3
5
(
1
0
9
1
.
-
6
3
0
.
4
0
0
.
5
3
0
.
0
2
2
.
-
8
0
9
.
3
3
0
.
.
)
7
6
3
1
(
.
)
4
6
0
7
(
.
8
6
5
1
2
-
1
5
4
.
)
2
0
0
(
.
2
2
9
.
.
)
6
4
6
7
(
.
)
5
6
3
3
3
1
(
,
3
7
3
.
.
)
8
3
7
2
(
)
7
4
5
(
.
.
)
0
3
7
7
1
(
.
)
5
3
3
3
2
3
(
,
-
-
-
7
1
0
.
-
)
0
5
0
(
.
)
7
7
1
(
.
)
6
2
0
(
.
-
2
0
0
.
7
1
0
.
)
2
5
0
(
.
9
1
0
.
-
0
0
0
.
0
0
0
.
0
0
0
.
2
0
0
.
-
9
0
0
.
0
0
0
.
)
3
1
0
(
.
)
9
6
0
(
.
1
1
2
.
-
4
0
0
.
)
0
0
0
(
.
9
0
0
.
)
5
7
0
(
.
.
)
5
0
3
1
(
4
0
0
.
)
7
2
0
(
.
)
5
0
0
(
.
)
4
7
1
(
.
.
)
4
6
1
3
(
0
0
0
.
-
-
-
-
)
0
0
0
(
.
)
2
0
0
(
.
)
0
0
0
(
.
-
.
)
4
0
5
1
4
(
)
6
0
4
(
.
-
-
)
7
7
2
(
.
-
-
)
3
0
0
(
.
.
)
8
8
3
1
(
)
4
1
0
(
.
-
-
-
-
-
-
.
6
8
8
3
9
6
1
.
9
7
9
.
.
9
2
2
2
1
-
2
6
4
.
1
8
4
.
0
2
1
.
-
9
9
8
.
.
8
4
0
1
1
7
0
.
.
8
4
1
1
.
7
4
9
4
1
)
9
8
3
(
.
2
1
0
.
.
7
9
8
5
2
.
5
1
3
0
5
.
)
8
5
5
9
1
(
.
0
6
4
2
2
2
1
,
.
3
7
1
6
6
1
,
.
5
5
3
5
5
6
1
.
)
7
5
5
(
.
.
)
5
8
1
8
8
9
1
(
,
.
)
5
0
0
2
3
4
(
,
.
8
0
5
8
2
3
0
.
2
7
8
.
.
9
6
3
4
1
.
7
0
8
4
1
6
0
0
.
0
0
0
.
1
0
0
.
8
1
0
.
-
1
0
0
.
1
0
0
.
0
0
0
.
-
1
0
0
.
2
0
0
.
0
0
0
.
2
0
0
.
2
2
0
.
4
7
7
1
.
)
1
0
0
(
.
8
3
0
.
0
0
0
.
3
7
0
.
)
8
2
0
(
.
1
4
2
.
8
0
0
.
0
0
0
.
)
1
0
0
(
.
.
)
5
8
8
2
(
)
7
2
6
(
.
2
1
0
.
0
0
0
.
1
0
0
.
1
2
0
.
1
2
0
.
.
)
6
0
2
6
2
(
)
8
3
0
(
.
-
0
0
1
.
)
7
3
0
(
.
.
)
0
4
0
6
5
2
2
(
,
.
8
5
3
1
.
7
5
0
4
1
2
4
0
.
.
7
7
7
2
4
.
9
0
2
1
3
-
5
0
9
.
-
0
0
0
.
)
0
0
0
(
.
.
)
3
7
2
3
(
2
0
0
.
0
2
0
.
0
0
0
.
2
6
0
.
5
4
0
.
-
1
0
0
.
R
U
E
R
U
E
R
U
E
E
A
U
N
G
N
Z
L
P
F
H
C
D
S
U
K
E
S
R
U
E
R
U
E
D
S
U
D
S
U
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
R
U
E
K
O
N
K
E
S
P
B
G
P
B
G
P
B
G
D
S
U
P
B
G
P
B
G
P
B
G
D
S
U
D
S
U
P
B
G
R
A
Z
P
B
G
P
B
G
P
B
G
P
B
G
P
B
G
R
U
E
P
B
G
R
U
E
P
B
G
V
B
s
e
c
i
v
r
e
S
l
a
c
i
n
h
c
e
T
&
g
n
i
t
l
u
s
n
o
C
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
S
A
t
e
r
a
c
i
T
e
v
i
y
a
n
a
S
l
a
t
e
M
l
u
b
n
a
t
s
I
l
e
e
t
S
a
t
a
T
S
A
S
e
g
u
e
b
u
a
M
l
e
e
t
S
a
t
a
T
V
B
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
e
m
a
r
F
-
r
a
t
S
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
l
V
B
y
g
o
o
n
h
c
e
T
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
s
e
c
i
v
r
e
S
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
V
B
s
e
b
u
T
d
n
a
l
r
e
d
e
N
l
e
e
t
S
a
t
a
T
o
o
Z
p
s
)
d
n
a
o
P
(
l
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
G
A
)
z
i
e
w
h
c
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
)
a
c
i
r
e
m
A
h
t
u
o
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
A
D
T
L
s
e
õ
ç
a
t
n
e
s
e
r
p
e
R
B
A
)
n
e
d
e
w
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
A
S
s
a
l
l
e
H
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
A
S
a
c
i
r
e
b
I
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
V
C
e
d
A
S
o
c
i
x
e
M
l
e
e
t
S
a
t
a
T
H
b
m
G
)
y
n
a
m
r
e
G
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
S
A
S
)
e
c
n
a
r
F
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
L
R
S
)
a
i
l
a
t
I
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
E
Z
F
)
t
s
a
E
e
d
d
M
l
i
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
a
i
r
e
g
N
i
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
l
m
L
y
n
a
p
m
o
C
e
b
u
T
s
e
a
W
h
t
u
o
S
d
n
A
t
r
o
p
w
e
N
e
h
T
d
e
t
i
i
m
L
K
U
l
e
e
t
S
a
t
a
T
.
c
n
I
A
S
U
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
l
l
i
M
g
n
i
l
l
o
R
h
g
u
o
r
o
b
e
p
m
e
T
e
h
T
l
d
e
t
i
i
m
L
y
n
a
p
m
o
C
g
n
i
s
u
o
H
n
o
t
n
a
t
S
e
h
T
d
e
t
i
i
m
L
s
n
o
i
t
a
c
i
r
b
a
F
l
a
i
r
t
s
u
d
n
I
o
t
n
o
r
o
T
y
n
a
p
m
o
C
g
n
i
s
s
e
c
o
r
P
s
a
m
o
h
T
.
p
r
o
C
p
i
r
t
S
l
e
e
t
S
s
a
m
o
h
T
d
e
t
i
i
m
L
y
r
a
t
e
i
r
p
o
r
P
e
c
ffi
O
s
e
a
S
a
c
i
r
f
A
h
t
u
o
S
S
T
l
d
e
t
i
i
m
L
)
2
o
N
.
(
i
l
s
g
n
d
o
H
K
U
p
i
l
u
T
d
e
t
i
i
m
L
)
3
o
N
.
(
i
l
s
g
n
d
o
H
K
U
p
i
l
u
T
S
/
A
r
e
m
e
t
s
y
s
g
g
y
B
y
a
w
r
o
N
l
e
e
t
S
a
t
a
T
B
A
m
e
t
s
y
s
g
g
y
B
n
e
d
e
w
S
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
g
n
i
t
l
u
s
n
o
C
K
U
l
e
e
t
S
a
t
a
T
d
e
t
i
i
i
m
L
s
g
n
d
o
H
K
U
l
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
t
n
e
m
t
s
e
v
n
I
d
n
A
g
n
i
r
u
t
c
a
f
u
n
a
M
r
e
k
l
a
W
d
e
t
i
i
m
L
s
r
e
g
a
n
a
M
d
n
u
F
e
s
k
U
d
e
t
i
i
m
L
e
s
i
r
p
r
e
t
n
E
l
e
e
t
S
K
U
S
A
S
l
o
t
i
n
U
d
e
t
i
i
l
m
L
d
n
a
e
r
I
k
c
o
t
s
l
e
e
t
s
r
e
k
l
a
W
d
e
t
i
i
m
L
k
c
o
t
s
l
e
e
t
s
r
e
k
l
a
W
d
e
t
i
i
m
L
r
a
B
t
h
g
i
r
B
.
.
S
E
U
.
.
.
i
l
V
B
s
g
n
d
o
H
s
d
n
a
l
r
e
h
t
e
N
l
e
e
t
S
a
t
a
T
2
3
1
3
3
1
4
3
1
5
3
1
6
3
1
7
3
1
8
3
1
9
3
1
0
4
1
1
4
1
2
4
1
3
4
1
4
4
1
5
4
1
6
4
1
7
4
1
8
4
1
9
4
1
0
5
1
1
5
1
2
5
1
3
5
1
4
5
1
5
5
1
6
5
1
7
5
1
8
5
1
9
5
1
0
6
1
1
6
1
2
6
1
3
6
1
4
6
1
5
6
1
6
6
1
7
6
1
8
6
1
9
6
1
0
7
1
1
7
1
2
7
1
3
7
1
4
7
1
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
414
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
-
-
-
-
8
3
0
.
.
7
0
0
1
1
)
7
9
8
(
.
8
9
4
.
.
)
5
5
7
3
5
(
1
7
4
2
.
.
)
4
3
7
2
1
(
-
7
0
2
.
0
1
3
6
.
8
5
4
.
)
0
1
0
(
.
)
0
1
8
(
.
0
6
7
5
.
)
4
5
7
1
(
.
8
8
0
.
.
)
2
4
0
6
1
1
(
,
-
5
0
7
2
.
.
4
4
3
2
2
.
9
6
3
2
1
)
1
6
0
(
.
)
7
0
0
(
.
)
1
6
8
4
(
.
)
6
1
0
(
.
8
4
4
1
.
)
6
6
3
6
(
.
6
9
1
2
.
)
0
4
5
(
.
.
8
9
3
3
3
9
9
3
5
.
)
5
7
0
(
.
6
1
0
.
-
-
-
7
7
2
9
.
.
)
6
8
3
0
1
(
)
9
2
0
(
.
.
)
3
3
0
7
0
1
(
,
-
-
6
0
1
.
0
0
0
.
-
-
)
9
0
0
(
.
5
0
0
.
)
9
1
5
(
.
4
2
0
.
)
3
2
1
(
.
2
0
0
.
-
1
6
0
.
4
0
0
.
)
0
0
0
(
.
)
8
0
0
(
.
6
5
0
.
)
7
1
0
(
.
1
0
0
.
)
0
2
1
1
(
.
-
6
2
0
.
6
1
2
.
9
1
1
.
)
1
0
0
(
.
)
0
0
0
(
.
)
7
4
0
(
.
)
0
0
0
(
.
4
1
0
.
)
1
6
0
(
.
1
2
0
.
)
5
0
0
(
.
2
2
3
.
2
5
0
.
)
1
0
0
(
.
0
0
0
.
-
-
-
0
9
0
.
)
0
0
1
(
.
)
3
3
0
1
(
.
)
0
0
0
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
7
2
.
7
8
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
4
0
.
)
8
2
0
(
.
)
4
6
0
(
.
)
8
0
0
(
.
-
-
)
1
5
0
(
.
9
3
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
3
0
.
)
9
1
0
(
.
)
4
4
0
(
.
)
6
0
0
(
.
-
-
)
5
3
0
(
.
7
2
0
.
-
-
-
-
-
-
-
-
-
-
-
8
3
0
.
.
7
0
0
1
1
)
7
9
8
(
.
8
9
4
.
.
)
5
5
7
3
5
(
1
7
4
2
.
.
)
4
0
0
3
1
(
-
7
0
2
.
0
1
3
6
.
8
5
4
.
)
0
1
0
(
.
)
0
1
8
(
.
0
6
7
5
.
.
)
4
5
7
1
(
8
8
0
.
.
)
2
4
0
6
1
1
(
,
-
5
0
7
2
.
.
4
4
3
2
2
.
9
6
3
2
1
)
1
6
0
(
.
)
7
0
0
(
.
.
)
1
6
8
4
(
)
6
1
0
(
.
4
0
4
1
.
.
)
8
3
3
6
(
0
6
2
2
.
)
2
3
5
(
.
.
8
9
3
3
3
9
9
3
5
.
)
4
2
0
(
.
)
3
2
0
(
.
-
-
-
7
7
2
9
.
.
)
6
8
3
0
1
(
.
)
3
3
0
7
0
1
(
,
)
9
2
0
(
.
-
-
8
0
1
.
0
0
0
.
-
-
)
9
0
0
(
.
5
0
0
.
)
6
2
5
(
.
4
2
0
.
)
7
2
1
(
.
2
0
0
.
-
2
6
0
.
4
0
0
.
)
0
0
0
(
.
)
8
0
0
(
.
6
5
0
.
)
7
1
0
(
.
1
0
0
.
.
)
6
3
1
1
(
-
6
2
0
.
9
1
2
.
1
2
1
.
)
1
0
0
(
.
)
0
0
0
(
.
)
8
4
0
(
.
)
0
0
0
(
.
4
1
0
.
)
2
6
0
(
.
2
2
0
.
)
5
0
0
(
.
7
2
3
.
3
5
0
.
)
0
0
0
(
.
)
0
0
0
(
.
-
-
-
1
9
0
.
)
2
0
1
(
.
)
7
4
0
1
(
.
)
0
0
0
(
.
-
-
-
.
3
7
2
1
2
.
2
8
3
0
1
.
7
7
4
7
4
0
8
5
.
6
2
6
.
.
8
1
1
2
9
.
1
7
4
7
1
.
)
8
1
2
6
(
.
7
5
7
3
.
)
9
8
3
4
(
2
3
0
.
.
6
1
8
2
2
.
5
1
6
1
2
0
5
6
.
.
3
5
8
0
2
1
,
-
-
-
-
7
5
6
.
-
.
1
8
3
3
.
0
8
5
2
5
2
,
.
0
0
5
8
6
3
,
.
1
1
0
0
8
2
,
.
6
7
4
3
.
8
3
9
0
9
2
,
.
6
0
8
8
.
8
2
3
5
5
.
9
8
7
6
2
.
5
6
8
2
4
2
,
9
6
6
.
.
3
3
1
8
1
.
)
0
9
2
2
(
0
0
0
.
0
0
0
.
-
.
)
4
9
8
6
1
(
.
0
7
8
9
9
7
,
.
7
9
1
9
1
6
,
7
7
1
.
1
3
0
.
5
1
0
.
9
6
0
.
1
0
0
.
-
-
-
1
0
0
.
4
3
1
.
5
2
0
.
)
9
0
0
(
.
5
0
0
.
)
6
0
0
(
.
0
0
0
.
3
3
0
.
2
0
0
.
9
0
0
.
5
7
1
.
5
0
0
.
-
6
6
3
.
1
0
0
.
-
-
-
-
5
3
5
.
6
0
4
.
5
0
0
.
2
2
4
.
3
1
0
.
0
8
0
.
9
3
0
.
2
5
3
.
6
2
0
.
1
0
0
.
)
3
0
0
(
.
0
0
0
.
0
0
0
.
)
5
2
0
(
.
-
0
6
1
1
.
8
9
8
.
0
0
0
.
P
B
G
P
B
G
D
S
U
Y
N
C
B
H
T
B
H
T
D
S
U
D
K
H
D
S
U
D
S
U
D
G
S
R
Y
M
D
G
S
Y
N
C
D
G
S
D
S
U
D
N
V
B
H
T
B
H
T
Y
N
C
D
S
U
R
M
O
R
A
Z
D
U
A
R
A
Z
A
F
C
F
D
S
U
D
S
U
D
S
U
B
H
T
B
H
T
B
H
T
B
H
T
D
S
U
P
B
G
D
U
A
D
U
A
D
U
A
D
U
A
D
S
U
R
A
Z
P
B
G
P
B
G
P
B
G
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
l
e
e
t
S
d
o
o
w
t
s
e
W
d
e
t
i
i
m
L
)
p
i
r
t
S
w
o
r
r
a
N
(
d
a
e
h
e
t
i
h
W
)
e
r
o
p
a
g
n
S
(
i
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
d
t
L
)
i
a
h
g
n
a
h
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
)
d
n
a
l
i
a
h
T
(
i
l
s
g
n
d
o
H
A
S
T
I
.
d
t
L
.
e
t
P
)
e
r
o
p
a
g
n
S
(
i
d
e
t
i
i
m
L
)
a
i
s
A
(
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
l
a
n
o
i
t
a
n
r
e
t
n
I
l
e
e
t
S
a
t
a
T
.
d
t
L
.
e
t
P
a
i
s
A
l
e
e
t
S
t
a
N
.
c
n
I
,
s
e
n
p
p
i
i
l
i
h
P
s
r
o
t
a
c
i
r
b
a
F
l
e
e
t
S
n
r
e
t
s
a
E
.
d
h
B
.
n
d
S
)
M
(
s
e
c
i
v
r
e
S
l
e
e
t
s
a
E
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
e
e
t
S
t
a
N
.
d
t
L
)
g
n
o
K
g
n
o
H
(
a
i
s
A
S
T
.
d
t
L
.
e
t
P
l
a
n
o
i
t
a
n
r
e
t
n
I
e
d
a
r
T
l
e
e
t
S
t
a
N
.
d
t
L
e
t
P
g
n
i
l
c
y
c
e
R
l
e
e
t
S
t
a
N
.
d
t
L
)
n
e
m
a
X
i
(
l
e
e
t
S
t
a
N
.
d
t
L
.
o
C
a
n
V
i
l
e
e
t
S
t
a
N
.
d
t
L
y
n
a
p
m
o
C
e
r
i
l
W
a
i
r
t
s
u
d
n
I
i
m
a
S
e
h
T
.
d
t
L
y
n
a
p
m
o
C
)
i
a
h
g
n
a
h
S
(
l
a
n
o
i
t
a
n
r
e
t
n
I
e
d
a
r
T
l
e
e
t
S
t
a
N
.
d
t
L
y
n
a
p
m
o
C
c
i
l
b
u
P
)
d
n
a
l
i
a
h
T
(
l
e
e
t
S
a
t
a
T
d
t
L
l
a
t
i
p
a
C
a
d
a
n
a
C
S
T
d
e
t
i
i
m
L
a
d
a
n
a
C
s
l
a
r
e
n
M
i
l
e
e
t
S
a
t
a
T
d
t
L
)
y
r
a
t
e
i
r
p
o
r
P
(
1
6
4
r
e
g
n
G
k
c
a
B
l
i
.
d
t
L
.
y
t
P
y
n
a
p
m
o
C
l
a
o
C
i
t
a
m
i
l
a
K
.
d
t
L
.
y
t
P
e
r
O
n
o
r
I
g
n
e
b
d
e
S
i
.
A
S
e
r
i
o
v
I
’
D
e
t
o
C
l
e
e
t
S
a
t
a
T
C
L
L
g
n
n
M
i
i
l
a
m
R
i
l
A
d
e
t
i
i
m
L
K
U
M
S
T
.
i
d
t
L
e
t
P
s
g
n
d
o
H
s
l
a
r
e
n
M
l
i
l
l
a
b
o
G
S
T
.
d
t
L
.
e
t
P
y
n
a
p
m
o
C
t
n
e
m
e
r
u
c
o
r
P
l
a
b
o
G
l
l
e
e
t
S
a
t
a
T
.
d
t
L
.
o
C
)
1
0
0
2
(
l
e
e
t
S
d
n
A
n
o
r
I
i
m
a
S
e
h
T
.
d
t
L
Y
T
P
)
a
i
l
a
r
t
s
u
A
(
l
e
e
t
S
n
a
h
s
u
h
B
.
d
t
L
.
e
t
P
r
e
u
s
s
I
o
C
o
r
P
.
d
t
L
Y
T
P
d
e
t
a
d
i
l
o
s
n
o
C
n
e
w
o
B
.
d
t
L
e
t
P
.
o
C
t
n
e
m
t
s
e
v
n
I
A
J
B
A
.
d
t
L
)
y
t
P
(
)
N
Z
K
(
l
e
e
t
S
a
t
a
T
.
d
t
L
Y
T
P
y
g
r
e
n
E
n
e
w
o
B
.
d
t
L
Y
T
P
l
a
o
C
n
e
w
o
B
.
d
t
L
.
o
C
l
e
e
t
S
n
o
i
t
c
u
r
t
s
n
o
C
m
a
S
e
h
T
i
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
e
e
t
S
T
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
l
a
b
o
G
S
T
.
c
l
P
p
u
o
r
G
l
e
e
t
S
S
T
N
.
.
.
.
V
B
)
1
o
N
.
(
s
d
n
a
l
r
e
h
t
e
N
d
h
c
r
O
i
.
d
t
L
,
.
o
C
s
e
r
i
W
N
S
T
5
7
1
6
7
1
7
7
1
8
7
1
9
7
1
0
8
1
1
8
1
2
8
1
3
8
1
4
8
1
5
8
1
6
8
1
7
8
1
8
8
1
9
8
1
0
9
1
1
9
1
2
9
1
3
9
1
4
9
1
5
9
1
6
9
1
7
9
1
8
9
1
9
9
1
0
0
2
1
0
2
2
0
2
3
0
2
4
0
2
5
0
2
6
0
2
7
0
2
8
0
2
9
0
2
0
1
2
1
1
2
2
1
2
3
1
2
4
1
2
5
1
2
6
1
2
7
1
2
8
1
2
415
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
-
8
6
2
.
5
1
1
.
8
8
0
2
.
-
4
8
0
8
.
4
0
0
.
3
3
7
1
.
2
8
9
1
.
4
8
1
.
6
9
8
2
.
5
7
9
.
-
-
-
-
-
5
5
4
2
.
)
5
6
3
(
.
5
2
8
.
2
8
2
.
-
7
3
1
.
6
6
4
.
)
0
9
4
4
(
.
)
3
0
0
(
.
2
6
0
2
.
9
6
3
.
4
1
0
.
7
5
1
.
)
4
4
2
(
.
3
0
0
.
-
1
0
0
.
0
2
0
.
-
8
7
0
.
0
0
0
.
7
1
0
.
9
1
0
.
2
0
0
.
8
2
0
.
9
0
0
.
-
-
-
-
-
4
2
0
.
)
4
0
0
(
.
8
0
0
.
3
0
0
.
-
1
0
0
.
4
0
0
.
)
3
4
0
(
.
)
0
0
0
(
.
0
2
0
.
4
0
0
.
0
0
0
.
2
0
0
.
)
2
0
0
(
.
-
-
-
-
-
-
-
-
-
-
)
9
1
4
3
(
.
5
4
0
.
)
3
3
0
(
.
0
0
0
.
)
5
0
0
(
.
)
3
0
0
(
.
-
-
-
4
0
0
.
3
1
0
.
-
7
0
0
.
6
0
0
.
5
0
0
.
7
0
0
.
2
3
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
0
0
.
-
9
0
0
.
-
5
0
0
.
4
0
0
.
3
0
0
.
5
0
0
.
2
2
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4
8
5
.
)
4
1
0
(
.
-
-
-
4
0
4
.
)
0
1
0
(
.
2
8
1
.
6
2
1
.
-
-
-
-
-
-
-
-
-
-
-
-
-
3
7
2
.
5
1
1
.
4
8
0
2
.
-
1
7
0
8
.
4
0
0
.
6
2
7
1
.
6
7
9
1
.
9
7
1
.
9
8
8
2
.
3
4
9
.
-
-
-
-
-
5
5
4
2
.
)
5
6
3
(
.
5
2
8
.
2
8
2
.
-
7
3
1
.
6
6
4
.
.
)
0
9
4
4
(
)
3
0
0
(
.
8
7
4
1
.
3
8
3
.
4
1
0
.
7
5
1
.
)
4
4
2
(
.
3
0
0
.
-
1
0
0
.
0
2
0
.
-
9
7
0
.
0
0
0
.
7
1
0
.
9
1
0
.
2
0
0
.
8
2
0
.
9
0
0
.
-
-
-
-
-
4
2
0
.
)
4
0
0
(
.
8
0
0
.
3
0
0
.
-
1
0
0
.
5
0
0
.
)
4
4
0
(
.
)
0
0
0
(
.
4
1
0
.
4
0
0
.
0
0
0
.
2
0
0
.
)
2
0
0
(
.
.
9
8
6
1
)
4
0
0
(
.
5
1
4
.
)
1
6
4
(
.
.
2
6
9
3
1
.
2
5
0
0
4
4
7
1
.
.
7
3
1
7
3
.
2
7
8
9
1
.
2
7
7
2
.
3
3
9
9
1
.
8
0
4
6
-
-
-
-
-
.
8
7
9
5
1
.
)
4
2
9
4
(
.
2
3
6
1
2
0
7
.
-
.
4
7
7
1
.
0
4
2
1
4
5
8
.
.
7
6
5
8
.
2
6
2
3
2
4
8
3
.
.
7
7
2
8
1
-
.
)
6
7
5
6
1
1
(
,
2
0
0
.
)
0
0
0
(
.
1
0
0
.
0
2
0
.
)
1
0
0
(
.
8
5
0
.
0
0
0
.
4
5
0
.
9
2
0
.
4
0
0
.
9
2
0
.
9
0
0
.
-
-
-
-
-
3
2
0
.
)
7
0
0
(
.
2
0
0
.
1
0
0
.
-
3
0
0
.
2
0
0
.
)
9
6
1
(
.
1
0
0
.
2
1
0
.
4
3
0
.
1
0
0
.
7
2
0
.
-
-
-
-
-
-
-
-
-
-
-
)
1
0
6
3
(
.
5
4
0
.
)
5
3
0
(
.
0
0
0
.
-
-
-
-
-
-
-
-
-
-
-
-
.
)
9
8
2
2
(
)
3
0
0
(
.
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
P
B
G
R
U
E
P
B
G
Y
R
T
P
B
G
R
U
E
R
U
E
P
B
G
D
S
U
R
K
L
D
S
U
D
S
U
Y
N
C
R
U
E
D
K
H
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
d
e
t
i
i
m
L
t
n
e
m
e
g
a
n
a
M
r
e
t
a
W
a
t
n
a
g
D
a
b
a
N
i
.
d
e
t
i
i
m
L
r
u
p
a
y
t
i
d
A
Z
E
S
s
e
r
u
t
n
e
v
t
n
o
J
i
n
a
i
d
n
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
c
i
v
r
e
S
l
l
i
M
l
e
e
t
S
a
y
a
a
m
H
l
i
d
e
t
i
m
i
l
s
e
c
i
v
r
e
s
n
o
i
t
c
n
u
m
j
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
g
n
n
M
T
&
S
i
i
g
n
i
s
s
e
c
o
r
P
&
g
n
i
l
a
e
n
n
A
s
u
o
u
n
i
t
n
o
C
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
i
m
L
e
t
a
v
i
r
P
)
a
d
n
I
(
g
n
p
p
h
S
K
Y
N
a
t
a
T
i
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
l
e
e
t
S
e
p
o
c
S
e
u
B
a
t
a
T
l
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
l
a
o
C
t
s
a
E
l
a
d
n
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
l
a
t
i
p
s
o
H
S
T
a
c
i
d
e
M
d
e
t
i
i
m
L
s
c
i
t
s
i
g
o
L
l
a
n
o
i
t
a
n
r
e
t
n
I
M
T
d
e
t
i
i
m
L
s
c
i
t
s
i
g
o
L
l
l
a
b
o
G
M
K
T
d
e
t
i
i
m
L
y
g
r
e
n
E
l
a
i
r
t
s
u
d
n
I
d
e
t
i
i
m
L
k
r
a
P
e
e
l
i
b
u
J
o
c
c
i
N
d
e
t
i
i
m
L
l
i
o
p
m
a
J
d
e
t
i
i
m
L
y
n
a
p
m
o
C
g
n
n
M
M
T
i
i
n
g
i
e
r
o
F
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
t
a
p
n
T
n
o
f
A
l
i
.
.
V
B
g
n
d
o
H
l
i
l
a
a
t
e
M
a
r
u
a
L
i
l
f
o
V
s
e
g
o
o
n
h
c
e
T
e
c
i
v
r
e
S
l
l
o
R
t
r
u
o
C
s
n
e
v
o
g
o
o
H
d
e
t
i
i
m
L
)
s
u
i
t
i
r
u
a
M
(
a
g
n
e
B
e
d
s
a
n
M
i
d
t
L
)
t
v
P
(
a
k
n
a
L
t
h
g
a
s
y
L
e
p
o
c
S
e
u
B
l
d
e
t
i
i
l
m
L
y
g
o
o
n
h
c
e
T
g
n
i
r
u
t
x
e
T
d
e
t
i
i
m
L
n
r
e
w
n
a
l
L
s
t
c
u
d
o
r
P
r
i
A
S
A
t
e
r
a
c
i
T
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
s
e
c
i
v
r
e
S
e
n
i
l
i
e
p
P
r
s
B
E
Z
F
s
c
i
t
s
i
g
o
L
d
n
a
g
n
p
p
h
S
i
i
l
a
n
o
i
t
a
n
r
e
t
n
I
.
d
t
L
a
n
h
C
i
l
l
a
b
o
G
M
K
T
d
e
t
i
i
m
L
s
n
o
i
t
u
o
S
l
l
e
e
t
S
n
o
i
t
c
u
r
t
s
n
o
C
C
S
V
T
H
b
m
G
l
l
a
b
o
G
M
K
T
s
e
t
a
i
c
o
s
s
A
n
a
i
d
n
I
.
d
e
t
i
i
m
L
F
R
T
d
t
L
.
t
v
P
a
d
n
i
I
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
.
d
t
L
s
k
r
o
W
a
c
i
l
i
S
&
y
a
l
c
e
r
i
F
i
b
u
h
d
r
a
m
u
K
d
t
L
t
v
P
s
l
e
v
a
r
T
a
h
s
u
a
M
l
d
t
L
c
i
t
a
u
q
A
a
g
n
i
l
a
K
.
i
d
t
L
e
t
P
g
n
p
p
h
S
K
Y
N
a
t
a
T
i
d
e
t
i
i
i
m
L
g
a
r
c
s
n
e
v
a
R
d
e
t
i
i
i
m
L
g
n
i
r
e
e
n
g
n
E
d
n
a
g
n
i
t
s
a
C
l
a
t
e
M
i
b
u
h
d
r
a
m
u
K
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
l
m
e
t
s
y
S
y
g
o
o
n
h
c
e
T
y
g
r
e
n
E
c
i
g
e
t
a
r
t
S
.
C
)
a
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
)
b
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
.
D
)
a
1
2
3
4
5
6
7
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
416
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
1
2
1
.
2
1
0
.
)
1
6
0
(
.
)
2
4
0
(
.
6
7
2
1
.
2
1
0
.
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
-
-
-
-
)
2
4
2
1
(
.
)
2
1
0
(
.
-
-
-
-
7
9
4
1
.
)
4
7
3
(
.
)
8
3
1
(
.
7
5
3
.
5
1
4
1
.
)
1
1
0
(
.
)
3
2
0
(
.
2
2
1
.
-
)
5
7
1
(
.
)
6
0
0
(
.
)
1
3
0
(
.
)
2
0
0
(
.
-
1
0
0
.
)
7
7
0
(
.
)
3
0
0
(
.
-
-
-
-
4
1
0
.
)
4
0
0
(
.
-
)
1
0
0
(
.
4
1
0
.
3
0
0
.
)
0
0
0
(
.
)
0
0
0
(
.
1
0
0
.
-
)
2
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
-
0
0
0
.
)
1
0
0
(
.
)
0
0
0
(
.
-
-
-
-
-
-
-
-
-
-
)
7
1
8
(
.
)
0
0
1
(
.
)
1
2
0
(
.
)
1
2
0
(
.
-
)
6
4
0
(
.
-
)
9
1
1
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
)
5
6
5
(
.
)
9
6
0
(
.
)
5
1
0
(
.
)
5
1
0
(
.
-
)
2
3
0
(
.
-
)
2
8
0
(
.
-
-
-
-
-
-
-
-
.
8
1
8
7
5
6
,
.
0
7
4
8
7
3
,
.
8
8
2
6
3
0
1
,
8
4
3
6
.
.
)
5
3
4
9
6
(
.
)
6
3
0
8
4
(
2
5
6
3
.
.
0
0
0
0
1
.
0
9
8
3
8
.
5
5
4
4
1
.
6
3
0
8
5
.
0
0
0
0
1
-
-
-
-
.
)
2
4
2
1
(
)
2
1
0
(
.
.
9
6
9
1
3
0
0
.
-
-
-
7
9
4
1
.
)
4
7
3
(
.
-
9
7
6
.
5
1
5
1
.
8
7
3
.
0
1
0
.
-
)
3
2
0
(
.
8
6
1
.
)
6
5
0
(
.
)
6
0
0
(
.
)
1
3
0
(
.
)
2
0
0
(
.
-
1
0
0
.
)
7
7
0
(
.
)
3
0
0
(
.
-
.
3
5
2
7
2
7
,
.
0
8
5
4
9
2
,
.
3
3
8
1
2
0
1
,
-
-
-
5
1
0
.
)
4
0
0
(
.
-
7
0
0
.
5
1
0
.
4
0
0
.
0
0
0
.
-
)
0
0
0
(
.
2
0
0
.
)
1
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
)
0
0
0
(
.
-
0
0
0
.
)
1
0
0
(
.
)
0
0
0
(
.
-
.
7
1
1
7
3
8
8
2
.
.
0
0
0
0
1
-
-
-
.
0
1
5
3
.
8
4
6
2
1
-
.
3
9
4
4
-
1
1
8
.
1
6
1
.
-
3
2
0
.
.
2
3
5
1
-
-
-
-
-
-
-
-
-
.
8
9
5
6
1
5
2
1
,
,
.
)
0
9
0
4
2
6
5
(
,
.
8
0
5
2
9
8
6
,
-
-
8
1
0
.
-
5
0
0
.
-
7
0
0
.
-
1
0
0
.
0
0
0
.
-
2
0
0
.
0
0
0
.
-
-
-
-
-
-
-
-
-
.
0
6
1
8
1
)
0
6
1
8
(
.
.
0
0
0
0
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
8
3
1
.
2
6
0
.
2
0
0
9
.
6
1
1
.
9
9
3
5
.
8
8
8
3
.
)
8
8
8
(
.
)
9
0
0
(
.
1
4
0
.
)
3
0
0
(
.
2
0
0
.
-
)
3
0
0
(
.
-
-
-
5
4
3
1
.
5
6
0
.
0
0
0
9
.
6
1
1
.
2
0
4
5
.
8
8
8
3
.
)
8
8
8
(
.
)
9
0
0
(
.
.
8
0
8
7
1
9
2
4
.
.
1
5
9
1
3
3
7
5
.
.
2
3
3
9
4
.
4
3
3
2
.
)
1
1
1
1
2
(
.
8
5
5
0
2
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
U
E
P
B
G
R
U
E
N
X
M
P
B
G
R
U
E
R
Y
M
D
A
C
D
A
C
D
G
S
D
S
U
D
S
U
R
K
L
R
M
O
P
B
G
P
B
G
D
S
U
D
U
A
B
H
T
R
A
Z
D
S
U
D
S
U
Y
N
C
Y
N
C
D
S
U
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
R
N
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
c
i
v
r
e
S
t
i
d
e
r
C
&
l
a
t
i
p
a
C
n
a
h
s
u
h
B
.
j
d
t
L
s
t
c
e
o
r
P
&
n
o
i
t
c
u
r
t
s
n
o
C
a
t
a
T
d
e
t
i
i
m
L
y
g
r
e
n
E
n
a
h
s
u
h
B
d
e
t
i
i
i
l
m
L
e
t
a
v
i
r
P
s
g
n
d
o
H
&
t
i
d
e
r
C
r
a
h
a
w
a
J
d
e
t
i
i
m
L
s
e
i
r
o
t
c
a
r
f
e
R
i
k
a
s
o
r
K
L
R
T
L
R
S
s
l
fi
o
r
P
i
l
b
A
n
g
i
e
r
o
F
d
e
t
i
i
m
L
c
e
s
b
a
F
.
.
i
V
B
e
i
t
a
n
b
m
o
C
d
u
o
h
r
e
d
n
O
s
l
a
W
t
e
G
i
d
t
L
e
t
P
)
a
i
s
A
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
i
d
t
L
y
t
P
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
.
o
C
)
d
n
a
l
i
a
h
T
(
l
s
e
a
S
K
R
O
Y
d
e
t
i
i
m
L
)
y
t
P
(
)
A
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
E
T
Y
d
t
L
e
t
P
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
.
d
t
L
e
t
P
t
e
n
d
e
R
d
t
L
.
o
C
)
i
a
h
g
n
a
h
S
(
i
t
n
e
m
p
u
q
E
t
r
o
p
s
n
a
r
T
K
R
O
Y
d
t
L
.
o
C
s
t
c
u
d
o
r
P
l
a
i
c
e
p
S
E
T
Y
o
a
d
g
n
Q
i
i
g
n
i
r
e
e
n
g
n
E
k
r
o
Y
T
P
L
A
T
O
T
d
t
L
s
g
n
d
o
H
l
i
l
a
n
o
i
t
a
n
r
e
t
n
I
i
s
n
b
o
R
t
t
i
w
e
H
d
t
L
l
a
n
o
i
t
a
n
r
e
t
n
I
i
s
n
b
o
R
t
t
i
w
e
H
C
L
L
r
e
l
i
a
r
T
a
k
n
a
L
h
c
t
u
D
d
e
t
i
i
m
L
s
r
e
r
u
t
c
a
f
u
n
a
M
r
e
l
i
a
r
T
a
k
n
a
L
h
c
t
u
D
d
e
t
i
i
m
L
)
e
t
a
v
i
r
P
(
g
n
i
r
e
e
n
g
n
E
a
k
n
a
L
h
c
t
u
D
i
.
d
h
B
.
n
d
S
)
M
(
l
s
e
fi
o
r
P
n
a
e
p
o
r
u
E
.
p
r
o
C
n
o
r
I
i
m
u
n
n
e
l
l
i
M
w
e
N
c
n
I
c
e
b
é
u
Q
4
3
6
0
-
6
3
3
9
d
e
t
i
i
m
L
e
t
P
e
r
o
p
a
g
n
S
F
R
T
i
d
e
t
i
i
m
L
e
t
P
s
g
n
d
o
H
F
R
T
l
i
.
.
V
B
d
n
a
l
r
e
d
e
N
l
a
a
t
S
n
a
m
r
e
p
p
u
W
d
e
t
i
i
m
L
B
S
S
I
.
.
V
C
e
D
.
.
A
S
a
d
e
m
i
i
t
l
u
M
n
a
G
s
n
e
v
o
g
o
o
H
8
9
0
1
1
1
2
1
)
b
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
n
o
i
t
a
d
i
l
o
s
n
o
c
o
t
e
u
d
t
n
e
m
t
s
u
d
A
j
.
E
L
A
T
O
T
d
e
t
i
i
m
L
y
n
a
p
m
o
C
s
e
c
i
v
r
e
S
&
s
e
i
t
i
l
i
t
U
r
u
p
d
e
h
s
m
a
J
d
e
t
i
i
m
L
s
l
l
o
R
o
y
a
T
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
n
e
m
p
o
e
v
e
D
l
t
r
o
P
e
v
i
t
a
e
r
C
d
e
t
i
i
m
L
y
n
a
p
m
o
C
e
g
d
i
r
B
l
l
o
T
r
u
p
a
y
t
i
d
A
d
t
L
s
t
c
u
d
o
r
P
e
r
i
W
&
l
e
e
t
S
n
a
d
n
i
I
e
h
T
.
d
t
L
s
k
i
l
a
t
e
M
a
t
a
T
s
e
i
r
a
i
d
i
s
b
u
s
n
i
s
t
s
e
r
e
t
n
i
y
t
i
r
o
n
M
i
s
e
i
r
a
i
d
i
s
b
u
s
n
a
i
d
n
I
d
t
L
a
d
n
i
I
f
o
y
n
a
p
m
o
C
e
t
a
p
n
T
e
h
T
l
i
d
e
t
i
i
m
L
n
o
r
I
e
g
n
o
p
S
a
t
a
T
.
F
)
a
1
2
3
4
5
6
7
8
417
NOTES forming part of the consolidated financial statementsSTRATEGIC REPORT | 1-88STATUTORY REPORTS | 89-194FINANCIAL STATEMENTS | 195-418
-
.
)
4
7
8
3
2
(
4
8
6
.
.
)
4
3
9
3
2
1
(
,
-
)
0
8
9
(
.
2
7
4
3
.
.
)
6
7
6
5
2
1
(
,
.
2
1
6
0
1
9
,
-
3
2
2
.
-
7
6
0
.
)
4
0
2
(
.
1
2
0
2
.
.
)
0
2
8
5
1
(
.
)
6
7
6
3
1
(
9
7
7
.
-
.
)
7
9
0
4
2
(
)
7
3
3
1
(
.
.
)
4
1
1
8
0
1
(
,
-
)
7
4
0
1
(
.
6
7
6
3
.
.
)
0
0
0
2
1
1
(
,
.
3
3
8
9
0
9
,
.
4
5
9
8
2
1
7
,
.
6
4
4
6
3
2
,
)
1
0
0
(
.
.
3
9
4
8
2
-
.
0
7
9
9
3
)
0
5
5
(
.
.
2
6
1
4
.
8
9
4
2
6
R
N
I
R
N
I
B
H
T
P
B
G
D
G
S
D
S
U
R
A
Z
.
d
t
L
y
n
a
p
m
o
C
c
i
l
b
u
P
)
d
n
a
l
i
a
h
T
(
l
e
e
t
S
a
t
a
T
d
e
t
i
i
m
L
e
p
o
r
u
E
l
e
e
t
S
a
t
a
T
d
t
L
t
v
P
s
e
c
i
v
r
e
S
t
r
o
p
x
E
r
a
h
o
M
s
e
i
r
a
i
d
i
s
b
u
s
n
g
i
e
r
o
F
d
e
t
i
i
m
L
L
S
B
l
e
e
t
S
a
t
a
T
.
d
t
L
.
e
t
P
s
g
n
d
o
H
l
i
l
e
e
t
S
t
a
N
.
i
d
t
L
e
t
P
s
g
n
d
o
H
s
l
a
r
e
n
M
l
i
l
l
a
b
o
G
S
T
s
e
i
r
a
i
d
i
s
b
u
s
n
i
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
l
a
t
o
T
.
d
t
L
)
y
t
P
(
)
N
Z
K
(
l
e
e
t
S
a
t
a
T
x
a
t
r
e
t
f
a
t
fi
o
r
p
/
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
C
0
1
)
b
9
1
2
3
4
5
g
n
i
t
a
d
i
l
o
s
n
o
c
t
o
n
r
o
f
s
n
o
s
a
e
r
d
n
a
d
e
t
a
d
i
l
o
s
n
o
c
n
e
e
b
t
o
n
e
v
a
h
h
c
i
h
w
s
e
r
u
t
n
e
v
t
n
o
i
j
d
n
a
s
e
t
a
i
c
o
s
s
a
i
,
s
e
i
r
a
d
i
s
b
u
s
f
o
t
s
i
L
e
m
o
c
n
i
e
m
o
c
n
i
t
n
u
o
m
A
)
e
r
o
r
c
`
(
l
a
t
o
t
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
`
(
d
e
t
a
d
i
l
o
s
n
o
c
f
o
%
s
A
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
o
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
s
s
o
l
r
o
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
s
s
o
l
(
r
o
t
fi
o
r
p
n
i
e
r
a
h
S
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
,
s
t
e
s
s
a
t
e
N
g
n
i
t
r
o
p
e
R
y
c
n
e
r
r
u
c
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
n
d
n
a
s
r
e
n
w
o
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
l
r
o
t
fi
o
r
p
d
n
a
s
t
e
s
s
a
t
e
n
f
o
t
n
e
m
e
t
a
t
S
.
3
5
418
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
l
a
i
r
e
t
a
m
m
i
e
r
a
e
c
n
e
h
d
n
a
t
n
a
c
fi
n
g
i
s
i
i
t
o
n
e
r
a
s
e
n
a
p
m
o
c
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
T
L
R
S
s
l
fi
o
r
P
i
l
b
A
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
d
e
r
e
d
i
s
n
o
c
t
o
n
e
c
n
e
h
d
n
a
s
e
i
c
i
l
o
p
g
n
i
t
a
r
e
p
o
d
n
a
l
a
i
c
n
a
n
fi
r
e
v
o
l
o
r
t
n
o
c
o
N
.
d
h
B
.
n
d
S
)
M
(
l
s
e
fi
o
r
P
n
a
e
p
o
r
u
E
l
y
l
e
t
e
p
m
o
c
d
e
r
i
a
p
m
i
s
i
l
e
u
a
v
t
n
e
m
t
s
e
v
n
I
s
l
m
e
t
s
y
S
y
g
o
o
n
h
c
e
T
y
g
r
e
n
E
c
i
g
e
t
a
r
t
S
d
e
t
i
i
m
L
e
t
a
v
i
r
P
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
l
a
i
r
e
t
a
m
m
i
e
r
a
e
c
n
e
h
d
n
a
t
n
a
c
fi
n
g
i
s
i
i
t
o
n
e
r
a
s
e
n
a
p
m
o
c
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
T
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
l
a
i
r
e
t
a
m
m
i
e
r
a
e
c
n
e
h
d
n
a
t
n
a
c
fi
n
g
i
s
i
i
t
o
n
e
r
a
s
e
n
a
p
m
o
c
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
T
n
o
i
t
a
d
i
l
o
s
n
o
c
r
o
f
l
a
i
r
e
t
a
m
m
i
e
r
a
e
c
n
e
h
d
n
a
t
n
a
c
fi
n
g
i
s
i
i
t
o
n
e
r
a
s
e
n
a
p
m
o
c
e
h
t
f
o
s
n
o
i
t
a
r
e
p
o
e
h
T
.
.
V
C
e
D
.
.
A
S
a
d
e
m
i
i
t
l
u
M
n
a
G
s
n
e
v
o
g
o
o
H
d
e
t
i
i
m
L
c
e
s
b
a
F
d
e
t
i
i
m
L
B
S
S
I
d
e
t
a
i
t
i
n
i
s
i
6
1
0
2
,
e
d
o
C
y
c
t
p
u
r
k
n
a
B
d
n
a
y
c
n
e
v
o
s
n
l
I
r
e
d
n
u
s
s
e
c
o
r
P
n
o
i
t
u
o
s
e
R
y
c
n
e
v
o
s
n
l
l
I
e
t
a
r
o
p
r
o
C
d
e
t
i
i
m
L
y
g
r
e
n
E
n
a
h
s
u
h
B
l
e
b
a
l
i
a
v
a
t
o
n
s
i
n
o
i
t
a
m
r
o
f
n
i
l
a
i
c
n
a
n
F
i
l
e
b
a
l
i
a
v
a
t
o
n
s
i
n
o
i
t
a
m
r
o
f
n
i
l
a
i
c
n
a
n
F
i
l
e
b
a
l
i
a
v
a
t
o
n
s
i
n
o
i
t
a
m
r
o
f
n
i
l
a
i
c
n
a
n
F
i
y
n
a
p
m
o
C
e
h
t
i
t
s
n
a
g
a
d
e
t
i
i
m
L
y
n
a
p
m
o
C
g
n
n
M
M
T
i
i
.
d
t
L
)
y
t
P
(
)
N
Z
K
(
l
e
e
t
S
a
t
a
T
c
n
I
c
e
b
é
u
Q
4
3
6
0
-
6
3
3
9
-
/
d
s
-
/
d
s
-
/
d
s
-
/
d
s
-
/
d
s
-
/
d
s
a
t
h
e
M
n
a
m
A
r
o
o
p
a
K
k
a
p
e
e
D
ff
o
h
w
u
a
l
B
r
e
t
e
P
t
t
a
h
B
P.
.
O
n
a
s
a
v
i
n
i
r
S
a
k
i
l
l
a
M
n
a
r
a
k
e
s
a
r
d
n
a
h
C
.
N
P
L
L
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
o
C
&
e
s
u
o
h
r
e
t
a
W
e
c
i
r
P
r
o
F
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
d
e
h
c
a
t
t
a
t
r
o
p
e
r
r
u
o
f
o
s
m
r
e
t
n
I
4
6
3
9
0
0
0
0
:
I
N
D
r
o
t
c
e
r
i
D
7
5
9
2
6
1
0
0
:
I
N
D
r
o
t
c
e
r
i
D
2
7
8
8
2
7
7
0
:
I
N
D
1
9
0
8
4
5
0
0
:
I
N
D
2
2
0
7
3
0
0
0
:
I
N
D
3
6
8
1
2
1
0
0
:
I
N
D
r
o
t
c
e
r
i
D
r
o
t
c
e
r
i
D
r
o
t
c
e
r
i
D
n
a
m
r
i
a
h
C
9
0
0
0
0
3
-
E
/
E
6
2
0
4
0
3
:
r
e
b
m
u
N
n
o
i
t
a
r
t
s
i
g
e
R
m
r
i
F
1
2
9
5
1
:
S
C
A
)
e
c
n
a
i
l
p
m
o
C
&
e
t
a
r
o
p
r
o
C
(
9
8
9
4
0
0
0
0
:
I
N
D
5
0
6
3
8
0
3
0
:
I
N
D
&
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
&
r
o
t
c
e
r
i
D
e
v
i
t
u
c
e
x
E
&
r
o
t
c
e
r
i
i
D
g
n
g
a
n
a
M
r
o
t
c
e
r
i
D
.
K
m
a
s
e
e
h
t
a
v
r
a
P
e
e
j
r
e
t
t
a
h
C
k
i
h
s
u
o
K
n
a
r
d
n
e
r
a
N
.
V
.
T
l
a
w
a
r
g
A
h
b
a
r
u
a
S
-
/
d
s
-
/
d
s
-
/
d
s
-
/
d
s
a
m
r
a
h
S
.
K
.
V
r
o
t
c
e
r
i
D
-
/
d
s
r
e
c
ffi
O
l
a
g
e
L
f
e
h
C
i
r
e
c
ffi
O
l
i
a
i
c
n
a
n
F
f
e
h
C
i
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
i
8
5
5
4
4
1
2
0
:
I
N
D
8
8
0
9
4
4
2
0
:
I
N
D
0
9
1
2
4
0
r
e
b
m
u
N
p
h
s
r
e
b
m
e
M
i
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
a
r
e
r
a
P
I
l
l
e
s
s
u
R
r
e
n
t
r
a
P
-
/
d
s
9
1
0
2
,
5
2
l
i
r
p
A
,
i
a
b
m
u
M
n
o
i
t
a
d
u
q
i
i
l
n
o
i
t
a
d
u
q
i
i
l
n
o
i
t
a
d
u
q
i
i
l
n
o
i
t
a
d
u
q
i
i
l
n
o
i
t
a
d
u
q
i
i
l
r
e
d
n
u
s
i
y
n
a
p
m
o
C
r
e
d
n
u
s
i
y
n
a
p
m
o
C
r
e
d
n
u
s
i
y
n
a
p
m
o
C
r
e
d
n
u
s
i
y
n
a
p
m
o
C
n
o
s
a
e
R
r
e
d
n
u
s
i
y
n
a
p
m
o
C
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
l
a
o
C
t
s
a
E
l
a
d
n
A
.
d
t
L
s
k
r
o
W
a
c
i
l
i
S
&
y
a
l
c
e
r
i
F
i
b
u
h
d
r
a
m
u
K
d
n
a
g
n
i
t
s
a
C
l
a
t
e
M
i
b
u
h
d
r
a
m
u
K
d
t
L
c
i
t
a
u
q
A
a
g
n
i
l
a
K
.
j
d
t
L
s
t
c
e
o
r
P
&
n
o
i
t
c
u
r
t
s
n
o
C
a
t
a
T
d
e
t
i
i
m
L
g
n
i
r
e
e
n
g
n
E
i
e
m
a
N
.
o
N
.
l
S
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
NOTES forming part of the consolidated financial statementsINTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARCONSOLIDATED
Notice
Notice is hereby given that the 112th Annual General Meeting of the
Members of Tata Steel Limited will be held on Friday, July 19, 2019,
at 3.00 p.m. (IST) at the Birla Matushri Sabhagar, 19, Sir Vithaldas
Thackersey Marg, Mumbai 400 020, to transact the following business:
Ordinary Business:
Item No. 1 – Adoption of Audited Standalone Financial
Statements
To receive, consider and adopt the Audited Standalone Financial
Statements of
the Financial Year ended
March 31, 2019 together with the Reports of the Board of Directors
and the Auditors thereon.
the Company
for
Item No. 2 – Adoption of Audited Consolidated Financial
Statements
receive, consider and adopt
To
the Audited Consolidated
Financial Statements of the Company for the Financial Year ended
March 31, 2019 together with the Report of the Auditors thereon.
Item No. 3 – Declaration of Dividend
To declare dividend of:
• `13/- per fully paid Ordinary (equity) Share of face value `10/- each
for the Financial Year 2018-19.
• `3.25 per partly paid Ordinary (equity) Share of face value `10/-
each (paid-up `2.504 per share) for the Financial Year 2018-19.
Item No. 4 – Re-appointment of a Director
To appoint a Director in the place of Mr. Koushik Chatterjee
(DIN:00004989), who retires by rotation in terms of Section 152(6) of
the Companies Act, 2013 and, being eligible, seeks re-appointment.
Special Business:
Item No. 5 – Appointment of Mr. Vijay Kumar Sharma
as a Director
To consider and if thought fit, to pass the following resolution as an
Ordinary Resolution:
"RESOLVED THAT Mr. Vijay Kumar Sharma (DIN:02449088), who was
appointed by the Board of Directors, based on the recommendation
of the Nomination and Remuneration Committee, as an Additional
Director of the Company effective August 24, 2018 and who holds
office up to the date of this Annual General Meeting of the Company
in terms of Section 161 and any other applicable provisions, if any,
of the Companies Act, 2013 (‘Act’) (including any modification or
re-enactment thereof ) and Article 121 of the Articles of Association of
the Company and who is eligible for appointment and has consented
to act as a Director of the Company and in respect of whom the
Company has received a notice in writing from a Member under
Section 160(1) of the Act proposing his candidature for the office of
Director of the Company, be and is hereby appointed as a Director of
the Company liable to retire by rotation."
Item No. 6 – Re-appointment of Ms. Mallika Srinivasan as an
Independent Director
To consider and if thought fit, to pass the following resolution as a
Special Resolution:
"RESOLVED THAT pursuant to the provisions of Sections 149, 152
and other applicable provisions, if any, of the Companies Act, 2013
(‘Act’), the Companies (Appointment and Qualifications of Directors)
Rules, 2014, read with Schedule IV to the Act and Regulation 17
and other applicable regulations of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (‘Listing Regulations’), as amended from time
to time, Ms. Mallika Srinivasan (DIN: 00037022), who was appointed
as an Independent Director at the 107th Annual General Meeting
of the Company and who holds office up to August 13, 2019 and
who is eligible for re-appointment and who meets the criteria for
independence as provided in Section 149(6) of the Act along with the
rules framed thereunder and Regulation 16(1)(b) of Listing Regulations
and who has submitted a declaration to that effect and in respect of
whom the Company has received a Notice in writing from a Member
under Section 160(1) of the Act proposing her candidature for the
office of Director, be and is hereby re-appointed as an Independent
Director of the Company, based on the recommendations of the
Nomination and Remuneration Committee, to hold office for a
second term commencing with effect from August 14, 2019 up to
May 20, 2022, not liable to retire by rotation."
Item No. 7 – Re-appointment of Mr. O. P. Bhatt as an
Independent Director
To consider and if thought fit, to pass the following resolution as a
Special Resolution:
"RESOLVED THAT pursuant to the provisions of Sections 149, 152
and other applicable provisions, if any, of the Companies Act, 2013
(‘Act’), the Companies (Appointment and Qualifications of Directors)
Rules, 2014, read with Schedule IV to the Act and Regulation 17 and
other applicable regulations of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (‘Listing Regulations’), as amended from time to time,
Mr. O. P. Bhatt (DIN: 00548091), who was appointed as an Independent
Director at the 107th Annual General Meeting of the Company
and who holds office up to August 13, 2019 and who is eligible for
re-appointment and who meets the criteria for independence as
provided in Section 149(6) of the Act along with the rules framed
thereunder and Regulation 16(1)(b) of Listing Regulations and who
has submitted a declaration to that effect and in respect of whom
the Company has received a Notice in writing from a Member under
Section 160(1) of the Act proposing his candidature for the office of
419
Director, be and is hereby re-appointed as an Independent Director
of the Company, based on the recommendations of the Nomination
and Remuneration Committee, to hold office for a second term
commencing with effect from August 14, 2019 up to June 9, 2023, not
liable to retire by rotation."
Item No. 8 – Re-appointment of Mr. T. V. Narendran as Chief
Executive Officer and Managing Director and payment of
remuneration
To consider and if thought fit, to pass the following resolution as an
Ordinary Resolution:
"RESOLVED THAT pursuant to the provisions of Sections 196, 197,
203 and any other applicable provisions, if any, read along with
Schedule V of the Companies Act, 2013 (‘Act’) and the Companies
(Appointment and Remuneration of Managerial Personnel) Rules,
2014, as amended from time to time, the consent of the Members
be and is hereby accorded to the re-appointment and terms of
remuneration of Mr. T. V. Narendran (DIN: 03083605) as Chief Executive
Officer and Managing Director (‘CEO & MD’) of the Company for
a period of five years, with effect from September 19, 2018 to
September 18, 2023, not liable to retire by rotation, upon the terms
and conditions set out in the Statement annexed to the Notice
convening this Meeting, including the remuneration to be paid in
the event of loss or inadequacy of profits in any financial year during
his said tenure within the overall limits of Section 197 of the Act, as
recommended by the Nomination and Remuneration Committee,
with liberty to the Board of Directors to alter and vary the terms and
conditions of the said re-appointment and terms of remuneration as
it may deem fit and in such manner as may be agreed to between the
Board and CEO & MD.
RESOLVED FURTHER THAT the Board of Directors (the ‘Board’ which
term includes a duly constituted Committee of the Board) be and is
hereby authorised to take all such steps as may be necessary, proper
and expedient to give effect to this Resolution."
Item No. 9 – Ratification of Remuneration of Cost Auditors
To consider and if thought fit, to pass the following Resolution as an
Ordinary Resolution:
"RESOLVED THAT pursuant to Section 148 and other applicable
provisions, if any, of the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014,
including any amendment,
modification or variation thereof, the Company hereby ratifies the
remuneration of `20 lakh plus applicable taxes and reimbursement
of out-of-pocket expenses payable to Messrs Shome & Banerjee,
Cost Accountants (Firm Registration Number - 000001) who have
been appointed by the Board of Directors on the recommendation
of the Audit Committee, as the Cost Auditors of the Company, to
conduct the audit of the cost records maintained by the Company
as prescribed under the Companies (Cost Records and Audit) Rules,
2014, as amended, for the Financial Year ending March 31, 2020.
RESOLVED FURTHER THAT the Board of Directors (the ‘Board’ which
term includes a duly constituted Committee of the Board of Directors)
be and is hereby authorized to do all such acts, deeds, matters and
things as may be considered necessary, desirable and expedient for
420
giving effect to this Resolution and/or otherwise considered by them
to be in the best interest of the Company."
NOTES:
(a)
(b)
(c)
(d)
(e)
(f )
(g)
(h)
(i)
The Statement, pursuant to Section 102 of the Companies Act,
2013 (‘Act’) with respect to Item Nos. 5 to 9 forms part of this
Notice. Additional information, pursuant to applicable Regulations
of the SEBI (Listing Obligations and Disclosures Requirements)
Regulations, 2015, and Secretarial Standard on General Meetings
issued by The Institute of Company Secretaries of India in
respect of Directors seeking appointment/re-appointment at
this Annual General Meeting (‘Meeting’ or ‘AGM’) is furnished as
annexure to the Notice.
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL
GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO
ATTEND AND VOTE AT THE MEETING ON HIS/HER BEHALF.
SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY.
Members are requested to note that a person can act as a proxy
on behalf of Members not exceeding 50 in number and holding
in aggregate not more than 10% of the total share capital of the
Company carrying voting rights. A Member holding more than
10% of the total share capital of the Company carrying voting
rights may appoint a single person as proxy and such person
shall not act as proxy for any other person or shareholder.
The instrument of proxy, in order to be effective, must be received
at the Registered Office of the Company at Bombay House,
24 Homi Mody Street, Fort, Mumbai 400 001, not less than
48 hours before the commencement of the Meeting. A Proxy
Form is annexed to this Notice. Proxies submitted on behalf
of limited companies, societies, etc. must be supported by
appropriate resolution or authority as applicable.
Corporate members
intending to send their authorized
representatives to attend the Meeting are requested to send
a certified copy of the Board Resolution to the Company,
authorising their representative to attend and vote on their
behalf at the meeting.
In case of joint holders attending the Meeting, only such
joint holders who are higher in the order of the names will be
entitled to vote.
Members/proxies/authorized representatives are requested
to bring the duly filled Attendance Slip enclosed herewith to
attend the Meeting.
The Register of Members of the Company will be closed
from Saturday, July 6, 2019 to Friday, July 19, 2019 (both days
inclusive) for the purpose of AGM and payment of dividend for
Financial Year 2018-19.
If dividend on both, fully paid Ordinary Shares and partly
paid Ordinary Shares (collectively,
‘Ordinary Shares’), as
recommended by the Board of Directors is approved at the
Meeting, payment of such dividend will be made on and from
Tuesday, July 23, 2019, as under:
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE •
•
In respect of Ordinary Shares held in physical form, to all those
Members whose names appear on the Company’s Register
of Members as on Friday, July 5, 2019 after giving effect to
valid requests for transmission or transposition lodged with
the Company on or before the close of business hours on
Friday, July 5, 2019.
In respect of Ordinary Shares held in electronic form, to all
beneficial owners of the shares, as per details furnished by the
Depositories for this purpose, as of the close of business hours
on Friday, July 5, 2019.
Members are requested to provide Bank details to facilitate
payment of dividend etc., either in electronic mode or for
printing on the payment instruments.
Relevant documents referred to
in the Notice and the
accompanying Statement are open for inspection by the
Members at the Registered Office of the Company during
business hours on all working days, up to the date of the AGM
and will also be kept open at the venue of the AGM till the
conclusion of the AGM.
Members desiring any information as regards the Accounts
are requested to write to the Company at an earlier date
so as to enable the Management to keep the information
ready at the AGM.
As per the provisions of the Companies Act, 2013, the facility
for making nomination is available to the Members in respect
of the shares held by them. Nomination forms can be obtained
from the Company’s Registrars and Transfer Agents by Members
who hold shares in physical form. Members holding shares
in electronic form may obtain Nomination forms from their
respective Depository Participant.
(j)
(k)
(l)
(m) The attention of Members is particularly drawn to the Corporate
Governance Report forming part of the Board’s Report in
respect of unclaimed and unpaid dividends and transfer of
dividends/shares to the Investor Education and Protection Fund.
(n)
Section 20 of the Companies Act, 2013, as amended from time to
time, permits service of documents on Members by a company
in accordance with the
through electronic mode. Hence,
Companies Act, 2013 read with the Rules framed thereunder, as
amended, the Integrated Report 2018-19 is being sent through
electronic mode to those Members whose email addresses are
registered with the Company/Depository Participant unless
any Member has requested for a physical copy of the Report.
For Members who have not registered their email addresses,
physical copies of the Integrated Report 2018-19 are being sent
by the permitted modes. Members may note that Integrated
Report 2018-19 will also be available on the Company’s website
www.tatasteel.com
(o)
During Financial Year 2018-19, the Securities and Exchange Board
of India (‘SEBI’) and the Ministry of Corporate Affairs (‘MCA’) has
mandated that existing Members of the Company who hold
securities in physical form and intend to transfer their securities
after April 1, 2019, can do so only in dematerialized form.
Therefore, Members holding shares in physical form are requested
to consider converting their shareholding to dematerialised form
to eliminate all risks associated with physical shares for ease of
portfolio management as well as for ease of transfer, if required.
Shareholders can write to the Company at cosec@tatasteel.com
or contact the Registrars and Transfer Agent - TSR Darashaw
Limited at csg-unit@tsrdarashaw.com and +91 22 66568484 for
assistance in this regard.
(p)
(q)
To support the ‘Green Initiative’ the Members who have not
registered their e-mail addresses are requested to register the
same with TSR Darashaw Limited/Depository Participant.
The Company is providing facility of live webcast of the
proceedings of the AGM from 3.00 p.m. (IST) till the conclusion
of the AGM. Members can use their remote e-Voting login and
password to view the proceedings of the AGM by accessing
NSDL’s website where the EVEN number of the Company
will be displayed.
Updation of Members’ Details:
The format of the Register of Members prescribed by the MCA under
the Companies Act, 2013 requires the Company/Registrars and
Transfer Agents to record additional details of Members, including
their Permanent Accounts Number details (PAN), e-mail address, bank
details for payment of dividend, etc. Further, SEBI has mandated the
submission of PAN by every participant in the securities market.
A form for capturing the above details is appended in the Integrated
Report 2018-19. Members holding shares in physical form are
requested to submit the filled-in form to the Company at the
Registered Office or its Registrars and Transfer Agent – TSR Darashaw
Limited. Members holding shares in electronic form are requested to
submit the details to their respective Depository Participants.
Process and manner for voting through electronic means:
1.
In compliance with Section 108 of the Companies Act, 2013, Rule 20
of the Companies (Management and Administration) Rules, 2014,
and Regulation 44 of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015,
each as amended from time to time and the Secretarial Standard on
General Meetings issued by The Institute of Companies Secretaries
of India, the Company is pleased to provide to its Members the
facility to cast their votes electronically, through e-voting services
provided by National Securities Depository Limited (‘NSDL’), on
resolutions set forth in this Notice. The Members may cast their
votes using an electronic voting system from a place other than the
venue of the Annual General Meeting (‘remote e-voting’) and the
services will be provided by NSDL. Instructions for remote e-voting
(including process and manner of e-voting) are given herein below.
The Resolutions passed by remote e-voting are deemed to have
been passed as if they have been passed at the Annual General
Meeting. The Notice of the Annual General Meeting indicating
the instructions of remote e-voting process along with printed
Attendance Slip and Proxy Form can be downloaded from the
421
Step 2: Cast your vote electronically on NSDL e-Voting system
Details on Step 1 is mentioned below:
How to Log-in to NSDL e-Voting website?
1.
2.
3.
Visit the e-Voting website of NSDL. Open web browser by typing
the following URL: https://www.evoting.nsdl.com/ either on a
Personal Computer or on a mobile.
Once the home page of e-Voting system is launched, click on the
icon ‘Login’ which is available under ‘Shareholders’ section.
A new screen will open. You will have to enter your User ID, your
Password and a Verification Code as shown on the screen.
Alternatively, if you are registered for NSDL eservices i.e.
IDEAS, you can log-in at https://eservices.nsdl.com/ with your
existing IDEAS login. Once you log-in to NSDL eservices after
using your log-in credentials, click on e-Voting and you can
proceed to Step 2 i.e. Cast your vote electronically.
2.
3.
4.
NSDL’s website www.evoting.nsdl.com or the Company’s website
www.tatasteel.com
The facility for voting through electronic voting system shall be
made available at the Annual General Meeting and the Members
(including proxies) attending the meeting who have not cast
their vote by remote e-voting shall be able to exercise their right
to vote at the Annual General Meeting.
The Members who have cast their vote by remote e-voting prior
to the Annual General Meeting may also attend the meeting but
shall not be entitled to cast their vote again.
Members can opt for only one mode of voting, i.e. either by
remote e-voting or voting at the Meeting. In case Members cast
their vote through both the modes, voting done by remote
e-voting shall prevail and votes cast at the Meeting shall be
treated as invalid.
The instructions for remote e-voting are as under:
How do I vote electronically using NSDL e-Voting system?
The way to vote electronically on NSDL e-Voting system consists of
‘Two Steps’ which are mentioned below:
Step 1: Log-in to NSDL e-Voting system at
https://www.evoting.nsdl.com/
4. Your User ID details are given below:
Manner of holding shares i.e. Demat (NSDL or CDSL) or
Physical
Your User ID is:
a) For Members who hold shares in demat account with NSDL
b) For Members who hold shares in demat account with CDSL
c) For Members holding shares in Physical Form
8 Character DP ID followed by 8 Digit Client ID
For example if your DP ID is IN300*** and Client ID is 12****** then
your user ID is IN300***12******.
16 Digit Beneficiary ID
For example if your Beneficiary ID is 12************** then your user
ID is 12**************
EVEN Number followed by Folio Number registered
with the Company
For example if folio number is S1******** and EVEN is 110643 (fully
paid shares) then user ID is 110643S1******** and, If, EVEN is 110644
(partly paid shares) then user ID is 110644S1********
5. Your password details are given below:
(a)
(b)
If you are already registered for e-Voting, then you can use your
existing password to login and cast your vote.
If you are using NSDL e-Voting system for the first time, you will
need to retrieve the ‘initial password’ which was communicated
to you. Once you retrieve your ‘initial password’, you need to
enter the ‘initial password’ and the system will force you to
change your password.
(c) How to retrieve your ‘initial password’?
(i)
If your e-mail ID is registered in your demat account or with
the Company, your ‘initial password’ is communicated to
you on your email ID. Open the email sent to you by NSDL
and open the attachment i.e. a .pdf file. The password to
open the .pdf file is your 8 digit client ID for NSDL account,
last 8 digits of client ID for CDSL account or folio number for
shares held in physical form. The .pdf file contains your ‘User
ID’ and your ‘initial password’.
(ii)
If your email ID is not registered, your ‘initial password’ is
communicated to you on your postal address.
6.
(a)
If you are unable to retrieve or have not received the ‘Initial
password’ or have forgotten your password:
Click on ‘Forgot User Details/Password?’ (If you are holding shares
in your demat account with NSDL or CDSL) option available on
www.evoting.nsdl.com
(b)
Click on ‘Physical User Reset Password?’ (If you are holding shares
in physical mode) option available on www.evoting.nsdl.com
422
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE
(c)
If you are still unable to get the password by aforesaid two
options, you can send a request at evoting@nsdl.co.in mentioning
your demat account number/folio number, your PAN, your name
and your registered address.
iii.
In case of any queries, you may refer the Frequently Asked
Questions (‘FAQs’) for Shareholders and e-voting User Manual
for Shareholders, available at the
‘downloads’ section of
www.evoting.nsdl.com or call on toll free no.: 1800-222-990 or
send a request at evoting@nsdl.co.in
(d)
Members can also use the OTP (One Time Password) based login
for casting the votes on the e-Voting system of NSDL.
Other Instructions:
7.
After entering your password, tick on Agree to ‘Terms and
Conditions’ by selecting on the check box.
i.
8. Now, you will have to click on ‘Login’ button.
9.
After you click on the
e-Voting will open.
‘Login’ button, Home page of
Details on Step 2 is given below:
How to cast your vote electronically on NSDL e-Voting system?
1.
2.
After successful login at Step 1, you will be able to see the
Home page of e-Voting. Click on e-Voting. Then, click on Active
Evoting Cycles.
After clicking on Active Evoting Cycles, you will be able to see all
the companies ‘EVEN’ in which you are holding shares and whose
voting cycle is in active status.
3.
Select ‘EVEN’ of company for which you wish to cast your vote.
4. Now you are ready for e-Voting as the Voting page opens.
5.
6.
7.
8.
selecting appropriate options
i.e.
Cast your vote by
assent or dissent, verify/modify the number of shares for
which you wish to cast your vote and click on ‘Submit’ and also
‘Confirm’ when prompted.
Upon confirmation, the message
will be displayed.
‘Vote cast successfully’
You can also take the printout of the votes cast by you by clicking
on the print option on the confirmation page.
Once you confirm your vote on the resolution, you will not be
allowed to modify your vote.
General Guidelines for Shareholders:
i.
ii.
Institutional shareholders (i.e. other than individuals, HUF, NRI,
etc.) are required to send scanned copy (PDF/JPG Format) of
the relevant Board Resolution/Authority letter etc. with attested
specimen signature of the duly authorized signatory(ies)
who are authorized to vote, to the Scrutinizer by e-mail
to
to
evoting@nsdl.co.in on or before the closing of e-voting.
tsl.scrutinizer@gmail.com with a
copy marked
It is strongly recommended not to share your password with
any other person and take utmost care to keep your password
confidential. Login to the e-voting website will be disabled
upon five unsuccessful attempts to key in the correct password.
In such an event, you will need to go through the ‘Forgot User
Details/Password?’ or ‘Physical User Reset Password?’ option
available on www.evoting.nsdl.com to reset the password.
The
remote e-voting period commences on Monday,
July 15, 2019 (9.00 a.m. IST) and ends on Thursday, July 18, 2019
(5.00 p.m. IST). During this period, Members of the Company,
holding shares either in physical form or in dematerialised
form, as on the cut-off date of Friday, July 12, 2019, may cast
their vote by remote e-voting. The remote e-voting module
shall be disabled by NSDL for voting thereafter. Once the vote
on a resolution is cast by the Member, the Member shall not be
allowed to change the vote subsequently.
You can also update your mobile number and e-mail address in
the user profile details of the folio which may be used for sending
future communication(s).
The voting rights of Members shall be in proportion to their
share of the paid-up equity share capital of the Company as on
the cut-off date i.e Friday, July 12, 2019 and as per the Register of
Members of the Company.
Any person, who acquires shares of the Company and
becomes a Member of the Company after dispatch of the
Notice of Annual General Meeting and holding shares as of
the cut-off date, i.e Friday, July 12, 2019 may obtain the login
ID and password by sending a request at evoting@nsdl.co.in
or csg-unit@tsrdarashaw.com (RTA Email). However, if you are
already registered with NSDL for remote e-voting then you can
use your existing User ID and password for casting your vote.
If you have forgotten your password, you can reset your password
by using ‘Forgot User Details/Password’ or ‘Physical User Reset
Password’ option available on www.evoting.nsdl.com or contact
NSDL at the following Toll Free No.: 1800-222-990 or e-mail at
evoting@nsdl.co.in
Please note, only a person whose name is recorded in the Register
of Members or in the Register of Beneficial Owners maintained
by the depositories as on the cut-off date shall be entitled to avail
the facility of voting, either through remote e-voting or voting at
the Annual General Meeting through e-voting.
The Board of Directors has appointed Mr. P. N. Parikh (Membership
No. FCS 327 and CP No. 1228) or failing him Mr. Mitesh Dhabliwala
(Membership No. FCS 8331 and CP No. 9511) of M/s Parikh &
Associates, Practising Company Secretaries, as the Scrutinizer to
scrutinize the remote e-voting process as well as voting at the
Annual General Meeting in a fair and transparent manner.
ii.
iii.
iv.
v.
vi.
vii.
At the Annual General Meeting, at the end of the discussion
of the resolutions on which voting is to be held, the Chairman
shall, with the assistance of the Scrutinizer, allow voting for all
those Members who are present but have not cast their vote
electronically using the remote e-voting facility.
423
viii. The Scrutinizer shall immediately after the conclusion of voting
at the Annual General Meeting, first count the votes cast at
the Annual General Meeting, thereafter unblock the votes
cast through remote e-voting in the presence of at least two
witnesses not in the employment of the Company and make, not
later than 48 hours of conclusion of the Meeting, a consolidated
Scrutinizer’s Report of the total votes cast in favor or against, if
any, to the Chairman or a person authorized by him in writing
who shall countersign the same.
ix.
x.
The Chairman or a person authorized by him in writing shall
declare the result of voting forthwith.
The results declared along with the Scrutinizer’s Report shall be
placed on the website of the Company www.tatasteel.com and
on the website of NSDL www.evoting.nsdl.com immediately
after the result is declared by the Chairman or any other person
authorised by the Chairman and the same shall be communicated
to BSE Limited and National Stock Exchange of India Limited,
where the shares of the Company are listed. The results shall
also be displayed on the notice board at the Registered Office
of the Company.
xi.
In case of any grievances with respect to the facility for
voting by electronic means, Members are requested to
contact Mr. Amit Vishal, Senior Manager at amitv@nsdl.co.in
(+91 22 2499 4360) or Ms. Pallavi Mhatre, Manager at
pallavid@nsdl.co.in (+91 22 2499 4545) or at evoting@nsdl.co.in
(1800 222 990) or write to NSDL at NSDL, Trade World, ‘A’ wing,
4th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower
Parel, Mumbai – 400 013.
By Order of the Board of Directors
Sd/-
Parvatheesam K
Company Secretary &
Chief Legal Officer (Corporate & Compliance)
ACS: 15921
Mumbai
April 25, 2019
Registered Office:
Bombay House, 24, Homi Mody Street,
Fort, Mumbai - 400 001
Tel: +91 22 6665 8282 Fax: +91 22 6665 7724
CIN: L27100MH1907PLC000260
Website: www.tatasteel.com
Email: cosec@tatasteel.com
Statement pursuant to Section 102(1) of the
Companies Act, 2013, as amended (‘Act’)
The following Statement sets out all material facts relating to Item
Nos. 5 to 9 mentioned in the accompanying Notice.
Item No. 5:
Based on the recommendation of the Nomination and Remuneration
Committee, the Board of Directors (‘Board’), appointed Mr. Vijay Kumar
Sharma as an Additional (Non-Executive, Non-Independent) Director
of the Company, effective August 24, 2018. Pursuant to the provisions
of Section 161 of the Act and Article 121 of the Articles of Association
of the Company, Mr. Vijay Kumar Sharma will hold office up to the date
of the ensuing Annual General Meeting (‘AGM’) and is eligible to be
appointed as a Director of the Company. The Company has, in terms of
Section 160(1) of the Act, received a notice in writing from a Member,
proposing the candidature of Mr. Sharma for the office of Director.
Mr. Sharma, once appointed will be liable to retire by rotation and will
be subject to the Company’s Policy on Retirement of Directors.
The Company has received from Mr. Sharma (i) Consent in writing to
act as Director in Form DIR-2 pursuant to Rule 8 of the Companies
(Appointment and Qualifications of Directors) Rules, 2014;
(ii) Intimation in Form DIR-8 in terms of the Companies (Appointment
and Qualifications of Directors) Rules, 2014, to the effect that he is
not disqualified under Section 164(2) of the Act and (iii) Declaration
to BSE Circular No. LIST/COMP/14/2018-19 dated
pursuant
June 20, 2018, that he has not been debarred from holding office of
a Director by virtue of any Order passed by Securities and Exchange
Board of India or any other such authority.
The profile and specific areas of expertise of Mr. Sharma are provided
as annexure to this Notice.
None of the Directors and Key Managerial Personnel of the
Company or their respective relatives, except Mr. Sharma, to whom
the resolution relates, is concerned or interested in the Resolution
mentioned at Item No. 5 of the Notice.
The Board recommends the Resolution set forth in Item No. 5 for the
approval of the Members.
424
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE Item No. 6:
Ms. Mallika Srinivasan was appointed as a Non-Executive Director of
the Company effective May 21, 2012. On April 1, 2014, the Ministry
of Corporate Affairs notified Section 149 of the Act and related Rules.
Pursuant to the said provisions, Ms. Srinivasan was appointed as an
Independent Director of the Company by the Shareholders of the
Company at the 107th Annual General Meeting held on August 14,
2014, for a period of five years with effect from August 14, 2014 up to
August 13, 2019.
The Board on April 25, 2019, based on the recommendations of
the Nomination and Remuneration Committee and pursuant to
the performance evaluation of Ms. Mallika Srinivasan as a Member
of the Board and considering that the continued association of
Ms. Srinivasan would be beneficial to the Company, proposed
to re-appoint Ms. Srinivasan as an Independent Director of the
Company, not liable to retire by rotation, for a second term effective
August 14, 2019 up to May 20, 2022. Further, the Company has, in
terms of Section 160(1) of the Act, received a notice in writing from
a Member proposing the candidature of Ms. Srinivasan for the
office of Director.
The Company has received from Ms. Srinivasan (i) Consent in
writing to act as Director in Form DIR-2 pursuant to Rule 8 of the
Companies (Appointment and Qualifications of Directors) Rules, 2014
(ii) Intimation in Form DIR-8 in terms of the Companies (Appointment
and Qualifications of Directors) Rules, 2014, to the effect that she is
not disqualified under Section 164(2) of the Act, (iii) Declaration to
the effect that she meets the criteria of independence as provided
in Section 149(6) of the Act read with Regulation 16 and Regulation
25(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended
(‘Listing Regulations’) and
(iv) Declaration pursuant to BSE Circular No. LIST/COMP/14/2018-19
dated June 20, 2018, that she has not been debarred from holding
office of a Director by virtue of any Order passed by Securities and
Exchange Board of India or any other such authority.
In terms of Section 149, 152 and other applicable provisions of the
Act, read with Schedule IV of the Act and the Rules made thereunder,
and in terms of the applicable provisions of the Listing Regulations,
each as amended, the re-appointment of Ms. Srinivasan as an
Independent Director of the Company for a second term commencing
August 14, 2019 through May 20, 2022 is being placed before the
Shareholders for their approval by way of a special resolution.
Ms. Srinivasan, once appointed, will not be liable to retire by rotation.
In the opinion of the Board, Ms. Srinivasan is a person of integrity, fulfils
the conditions specified in the Act and the Rules made thereunder
read with the provisions of the Listing Regulations, each as amended,
and is independent of the Management of the Company. A copy of
the draft letter of appointment of Ms. Srinivasan as an Independent
Director setting out the terms and conditions is available for inspection
without any fee payable by the Members at the Registered Office of
the Company during the normal business hours on working days up
to the date of the Annual General Meeting (‘AGM’) and will also be
kept open at the venue of the AGM till the conclusion of the Meeting.
The profile and specific areas of expertise of Ms. Srinivasan are
provided as annexure to this Notice.
None of the Directors and Key Managerial Personnel of the Company
or their respective relatives, except Ms. Srinivasan, to whom the
resolution relates, is concerned or interested in the Resolution
mentioned at Item No. 6 of the Notice.
The Board recommends the Resolution set forth in Item No. 6 for the
approval of the Members.
Item No. 7:
Mr. O. P. Bhatt was appointed as a Non-Executive Director of the
Company effective June 10, 2013. On April 1, 2014, the Ministry of
Corporate Affairs notified Section 149 of the Act and related Rules.
Pursuant to this provision, Mr. Bhatt was appointed as an Independent
Director of the Company by the Shareholders of the Company at the
107th Annual General Meeting held on August 14, 2014, for a period
of five years with effect from August 14, 2014 up to August 13, 2019.
The Board on April 25, 2019, based on the recommendations of the
Nomination and Remuneration Committee and pursuant to the
performance evaluation of Mr. O. P. Bhatt as a Member of the Board
and considering that the continued association of Mr. Bhatt would be
beneficial to the Company, proposed to re-appoint Mr. Bhatt as an
Independent Director of the Company, not liable to retire by rotation,
for a second term effective August 14, 2019 up to June 9, 2023.
Further, the Company has, in terms of Section 160(1) of the Act,
received a notice in writing from a Member proposing the candidature
of Mr. Bhatt for the office of Director.
The Company has received from Mr. Bhatt (i) Consent in writing to
act as Director in Form DIR-2 pursuant to Rule 8 of the Companies
(Appointment and Qualifications of Directors) Rules, 2014
(ii) Intimation in Form DIR-8 in terms of the Companies (Appointment
and Qualifications of Directors) Rules, 2014, to the effect that he is
not disqualified under Section 164(2) of the Act (iii) Declaration to
the effect that he meets the criteria of independence as provided
in Section 149(6) of the Act read with Regulation 16 and Regulation
25(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended
(‘Listing Regulations’) and
(iv) Declaration pursuant to BSE Circular No. LIST/COMP/14/2018-19
dated June 20, 2018, that he has not been debarred from holding
office of a Director by virtue of any Order passed by Securities and
Exchange Board of India or any other such authority.
In terms of Section 149, 152 and other applicable provisions of the
Act, read with Schedule IV of the Act and the Rules made thereunder,
and in terms of the applicable provisions of the Listing Regulations,
each as amended, the re-appointment of Mr. O. P. Bhatt as an
Independent Director of the Company for a second term commencing
August 14, 2019 through June 9, 2023 is being placed before the
Shareholders for their approval by way of a special resolution.
Mr. Bhatt, once appointed, will not be liable to retire by rotation.
In the opinion of the Board, Mr. Bhatt is a person of integrity, fulfils
the conditions specified in the Act and the Rules made thereunder
425
read with the provisions of the Listing Regulations, each as amended,
and is independent of the Management of the Company. A copy
of the draft letter of appointment of Mr. Bhatt as an Independent
Director setting out the terms and conditions of his appointment is
available for inspection without any fee payable by the Members at
the Registered Office of the Company during the normal business
hours on working days up to the date of the Annual General Meeting
(‘AGM’) and will also be kept open at the venue of the AGM till the
conclusion of the Meeting.
The profile and specific areas of expertise of Mr. O. P. Bhatt are
provided as annexure to this Notice.
None of the Directors and Key Managerial Personnel of the Company
or their respective relatives, except Mr. Bhatt, to whom the resolution
relates, is concerned or interested in the Resolution mentioned at
Item No. 7 of the Notice.
The Board recommends the Resolution set forth in Item No. 7 for the
approval of the Members.
Item No. 8:
Mr. T. V. Narendran was appointed as the Managing Director of the
Company for a period of five years effective September 19, 2013
till September 18, 2018, not liable to retire by rotation, and the said
appointment was approved by the Shareholders at the 107th Annual
General Meeting held on August 14, 2014.
The Board of Directors (‘the Board’), on October 31, 2017,
re-designated Mr. Narendran as the Chief Executive Officer and
Managing Director of the Company.
Based on the recommendation of the Nomination and Remuneration
re-appointed
the Board on August 13, 2018,
Committee,
Mr. Narendran as the Chief Executive Officer and Managing Director
of the Company, not liable to retire by rotation, for a further period of
five years effective September 19, 2018 through September 18, 2023,
subject to approval of the Shareholders.
The Board, while re-appointing Mr. Narendran as the Chief Executive
Officer and Managing Director of the Company, considered his
background, experience and contributions to the Company.
Mr. Narendran joined the Company in 1988 after completing his MBA
from IIM, Calcutta. He has more than 30 years of experience in the
Mining and Metals industry.
Mr. Narendran’s career in Tata Steel spanned many areas in India and
overseas, including Marketing & Sales, International Trade, Supply
Chain & Planning, Operations and General Management and includes
stints at Jamshedpur, Kolkata, Dubai and Singapore. Before becoming
the Managing Director of Tata Steel, Mr. Narendran was the Vice
President - Safety, Flat Products & Long Products since 2010.
Mr. Narendran was actively involved in the Company’s first overseas
acquisition, NatSteel, and was seconded there as the Executive Vice
President in 2005. He took over as the President & CEO of NatSteel
from January 2008.
Mr. Narendran successfully executed and commissioned one of the
largest greenfield projects in India, the Kalinganagar Steel Plant in
Odisha, which achieved its rated capacity within a very short span of
time. It also enhanced the Company’s ability to deliver steel to higher
value segments such as the automotive and the oil & gas industries.
In May, 2018, Mr. Narendran oversaw the successful acquisition of
Bhushan Steel Limited (renamed Tata Steel BSL Limited).
the
the Nomination and
recommendations of
Further, on
Remuneration Committee, the Board at
its meeting held on
April 25, 2019 approved the revision in the terms of remuneration of
Mr. Narendran, subject to the approval of the Shareholders.
The main terms and conditions relating to the re-appointment and
terms of remuneration Mr. Narendran as CEO & MD are as follows:
(1) Period: For a period of 5 years i.e., from September 19, 2018 to
September 18, 2023.
(2) Nature of Duties: The CEO & MD shall devote his whole time
and attention to the business of the Company and perform such
duties as may be entrusted to him by the Board from time to time
and separately communicated to him and exercise such powers as
may be assigned to him, subject to superintendence, control and
directions of the Board in connection with and in the best interests
of the business of the Company and the business of one or more of
its associated companies and/or subsidiaries including performing
duties as assigned to CEO & MD from time to time by serving on the
boards of such associated companies and/or subsidiaries or any other
Executive body or any committee of such a company.
(3) A. Remuneration:
a) Basic Salary
Current basic salary of `12,50,000/- per month up to a maximum
of `18,00,000/- per month.
The annual increment which will be effective April 1, each year,
will be decided by the Board based on the recommendations
of the Nomination and Remuneration Committee (‘NRC’).
The recommendation of NRC will be based on Company
performance and individual performance.
b) Benefits, perquisites and allowances
Details of benefits, perquisites and allowances are as follows:
i.
Rent-free residential accommodation (furnished or otherwise)
the Company bearing the cost of repairs, maintenance,
and utilities (e.g. gas, electricity and water charges) for the
said accommodation.
OR
House Rent, House Maintenance and Utility Allowances
aggregating 85% of the basic salary.
ii.
Hospitalization, transport, telecommunication and other facilities:
a.
Hospitalization and major medical expenses for self,
spouse and dependent parents & children;
426
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE
b.
c.
Car, with driver provided, maintained by the Company
for official and personal use;
manner as may be agreed to between the Board and the
CEO & MD, subject to such approvals as may be required.
Telecommunication facilities
internet and fax.
including broadband,
iii.
iii.
Other perquisites and allowances as given below, subject to
maximum of 55% limit of the annual basic salary.
The categories of perquisites/allowances to be included
within the 55% limit would be:
The appointment may be terminated earlier, without any
cause, by either Party by giving to the other Party six months’
notice of such termination or the Company paying six
months’ remuneration which shall be limited to provision of
Salary, Benefits, Perquisites, Allowances and any pro-rated
Bonus/Performance Linked Incentive/Commission (paid at the
discretion of the Board), in lieu of such notice.
a.
Monthly supplementary allowances/personal accident
insurance/club membership fees – 38.34%
iv.
The employment of the CEO & MD may be terminated by the
Company without notice or payment in lieu of notice:
b.
Leave travel concession/allowance - 8.33%
c. Medical allowance – 8.33%
iv.
v.
Contribution to Provident Fund, Superannuation Fund and
Gratuity Fund, as per the Rules of the Company.
Mr. Narendran shall be entitled to leave in accordance with
the Rules of the Company. Privilege Leave earned but not
availed by him would be encashable in accordance with the
Rules of the Company.
c) Bonus/Performance Linked Incentive/Commission:
Mr. Narendran shall be entitled to Bonus/Performance Linked
Incentive, Long-Term Incentive and/or Commission based on
certain performance criteria laid down by the Board and/or
Committee thereof, subject to the overall ceilings stipulated in
Section 197 of the Companies Act, 2013 and related Rules.
The specific amount of Bonus/Performance Linked Incentive,
to
Long-Term
Mr. Narendran would be based on performance as evaluated by
the Board or a Committee thereof, duly authorized in this behalf.
and/or Commission payable
Incentive
B. Minimum Remuneration:
Notwithstanding anything to the contrary herein contained
where in any financial year during the tenure of Mr. Narendran, the
Company has no profits or its profits are inadequate, the Company
will pay him remuneration by way of salary, benefits and
perquisites and allowances, Bonus/Performance Linked
Incentive, Long-Term Incentive as approved by the Board.
(4) Other Terms of Appointment:
i.
ii.
The CEO & MD, so long as he functions as such, undertakes not to
become interested or otherwise concerned, directly or through
his spouse and/or children, in any selling agency of the Company.
The terms and conditions of the re-appointment of the CEO
& MD and/or this Agreement may be altered and varied from
time to time by the Board as it may, in its discretion deem fit,
irrespective of the limits stipulated under Schedule V to the
Act or any amendments made hereafter in this regard in such
a.
b.
c.
if the CEO & MD is found guilty of any gross negligence,
default or misconduct in connection with or affecting the
business of the Company or any subsidiary or associated
company to which he is required by the Agreement to
render services; or
in the event of any serious or repeated or continuing breach
(after prior warning) or non-observance by the CEO & MD of
any of the stipulations contained in the Agreement; or
in the event the Board expresses its loss of confidence
in the CEO & MD.
v.
In the event the CEO & MD is not in a position to discharge his
official duties due to any physical or mental incapacity, the Board
shall be entitled to terminate his contract on such terms as the
Board may consider appropriate in the circumstances.
vi.
Upon the termination by whatever means of CEO & MD’s
employment under the Agreement:
a.
b.
He shall immediately cease to hold offices held by him in
any holding company, subsidiaries or associate companies
without claim for compensation for loss of office by virtue of
Section 167(1)(h) of the Act and shall resign as trustee of any
trusts connected with the Company.
He shall not, without the consent of the Board and at any
time thereafter represent himself as connected with the
Company or any of its subsidiaries and associated companies.
vii.
All Personnel Policies of the Company and the related rules
which are applicable to other employees of the Company
shall also be applicable to the CEO & MD unless specifically
provided otherwise.
viii. If and when this Agreement expires or is terminated for
any reason whatsoever, Mr. Narendran will cease to be the
CEO & MD and also cease to be a Director of the Company. If at
any time, Mr. Narendran ceases to be a Director of the Company
for any reason whatsoever, he shall cease to be the CEO & MD
and this Agreement shall forthwith terminate. If at any time,
the CEO & MD ceases to be in the employment of the Company
427
for any reason whatsoever, he shall cease to be a Director and
CEO & MD of the Company.
ix.
The terms and conditions of re-appointment of CEO & MD
include clauses pertaining to adherence to the Tata
also
Code of Conduct, protection and use of intellectual property,
non-competition, non-solicitation post termination of agreement
and maintenance of confidentiality.
The profile and specific areas of expertise of Mr. Narendran are
provided as annexure to this Notice.
None of the Directors and Key Managerial Personnel of the Company
or their respective relatives, except Mr. Narendran, to whom the
resolution relates, is concerned or interested in the Resolution
mentioned at Item No. 8 of the Notice.
In compliance with the provisions of Section 196, 197, 203 and other
applicable provisions of the Act, read with Schedule V to the Act
as amended, and based on the recommendation of the Board and the
NRC, approval of the Members is sought for the re-appointment and
terms of remuneration of Mr. T. V. Narendran as Chief Executive Officer
and Managing Director as set out above.
The Board recommends the Resolution set forth in Item No. 8 for the
approval of Members.
Item No.9:
The Company is required under Section 148 of the Act read with
the Companies (Cost Records and Audit) Rules, 2014, as amended
from time to time, to have the audit of its cost records for products
covered under the Companies (Cost Records and Audit) Rules, 2014
conducted by a Cost Accountant in practice. The Board of Directors
of the Company has on the recommendation of the Audit Committee
approved the appointment and remuneration of Messrs Shome &
Banerjee, Cost Accountants (Firm Registration Number - 000001) as
the Cost Auditor of the Company for the Financial Year 2019-20.
In accordance with the provisions of Section 148(3) of the Act read
with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the
remuneration payable to the Cost Auditors as recommended by the
Audit Committee and approved by the Board of Directors has to be
ratified by the Members of the Company. Accordingly, the consent of
the Members is sought for passing an Ordinary Resolution as set out
at Item No. 9 of the Notice for ratification of the remuneration payable
to the Cost Auditor of the Company for the Financial Year ending
March 31, 2020.
None of the Directors and Key Managerial Personnel of the Company
or their respective relatives is concerned or interested in the
Resolution mentioned at Item No. 9 of the Notice.
The Board recommends the Resolution set forth in Item No. 9 for the
approval of the Members.
By Order of the Board of Directors
Sd/-
Parvatheesam K
Company Secretary &
Chief Legal Officer (Corporate & Compliance)
ACS: 15921
Mumbai
April 25, 2019
Registered Office:
Bombay House, 24, Homi Mody Street,
Fort, Mumbai - 400 001
Tel: +91 22 6665 8282
Fax: +91 22 6665 7724
CIN: L27100MH1907PLC000260
Website: www.tatasteel.com
Email: cosec@tatasteel.com
428
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE Annexure to the Notice
Details of the Directors seeking appointment/re-appointment in the forthcoming Annual General Meeting
[Pursuant to Regulations 26(4) and 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
and Secretarial Standard on General Meeting]
Profile of Mr. Koushik Chatterjee
Mr. Koushik Chatterjee (50) is an
Honors Graduate in Commerce
from Calcutta University and a
Fellow Member of the Institute of
Chartered Accountants of India.
then
transferred
Mr. Chatterjee joined Tata Steel
Limited in 1995 in Jamshedpur.
He was
to
Tata Sons in 1999 in the Group
Executive Office. He re-joined
Tata Steel Limited on August 1,
2003 and was appointed as the
Group CFO in 2008. He was inducted on the Board of Tata Steel
Limited effective November 9, 2012. Further he was appointed as
Group Executive Director (Finance & Corporate), Tata Steel in 2013
and re-appointed as Whole Time Director effective November 9, 2017
designated as Executive Director and Chief Financial Officer.
During the last 15 years in the Company, he has been part of the
top leadership team in the Company and has led the Company’s
finance function and provided stewardship in the areas of financial
strategy, performance management, large and complex financing in
India and overseas of over USD 70 billion across several instruments
and currencies, mergers and acquisitions including divestments,
investor relations
risk management, reporting and controlling,
and taxation. He has also been deeply
in portfolio
restructuring and turnaround of business situations of various
Subsidiary Companies.
involved
Mr. Chatterjee had been a member of the Primary Market Advisory
Committee of the SEBI and was member of the task force set up by
SEBI that drafted the Takeover Code. He was also the member of
the Global Preparers Forum, the advisory body to the International
Accounting Standards Board London. He is currently the member of
International Integrated Reporting Council UK, Working Group on
Group Insolvency set up by the Insolvency and Bankruptcy Board
of India, Global Task Force on Climate Related Financial Disclosures
set up by the Financial Stability Board, Basel Switzerland. He is a
frequent speaker in various conferences in India and abroad and has
been recognised as one of India’s best CFO by several organisations
like Business Today Magazine, CNBC, Asiamoney, Chartered Institute
of Management Accountants UK. Recently in March 2019, he was
honoured with the ’FE CFO Lifetime Achievement Award’ by the
Financial Express.
tenure at Tata Sons and Tata Steel. Mr. Chatterjee brings to the
Board extensive experience in the areas of controllership, financial
stewardship, business responsibility (including re-structuring and
turnaround of large organisations), business development (mergers,
acquisitions and divestments), strategy and execution of large and
complex financing, strategic communication, risk management, crisis
leadership, public affairs, legal, compliance and governance.
Mr. Chatterjee’s experience demonstrates his leadership capability,
general business acumen and knowledge of complex financial
operational and governance issues that large corporations face.
By virtue of his background and experience Mr. Chatterjee has an
extraordinarily broad and deep knowledge of the steel and mining
industry. His experiences will enable him to provide the Board with
valuable insights on a broad range of business, social and governance
issues that are relevant to the Company.
Board Meeting Attendance and Remuneration
During the year, Mr. Chatterjee attended all seven Board Meetings that
were held. Being an Executive Director, Mr. Chatterjee was not paid
any sitting fees for attending the Meetings of the Board/Committees.
Details regarding the remuneration is provided in the Corporate
Governance Report forming part of the Board's Report.
Bodies Corporate (other than Tata Steel Limited) in which
Mr. Koushik Chatterjee holds Directorships and Committee
positions
Directorships
Tata Metaliks Limited
The Tinplate Company of India Limited
Tata Sponge Iron Limited
Tata Steel BSL Limited (formerly Bhushan Steel Limited)
Tata Steel Europe Limited
TS Global Holdings Pte Ltd
TS Global Minerals Holdings Pte Ltd., Singapore
TS Global Procurement Co. Pte. Ltd., Singapore
Dimna Steel Limited
Bistupur Steel Limited
Tata Steel Foundation (Section 8 Company)
World Steel Association
Chairperson of Board Committees
Tata Steel BSL Limited
Stakeholders' Relationship Committee
Member of Board Committees
Particulars of experience, attributes or skills that qualify
Mr. Chatterjee for Board membership:
Mr. Koushik Chatterjee has valuable experience in managing the
issues faced by large and complex corporations by virtue of his
Tata Steel Europe Limited
Audit Committee
Executive Committee
Board Pension Committee
429
The Tinplate Company of India Limited
Nomination & Remuneration Committee
Tata Metaliks Limited
Nomination & Remuneration Committee
Tata Steel BSL Limited
Audit Committee
Tata Sponge Iron Limited
Audit Committee
Nomination & Remuneration Committee
Committee of Board
Disclosure of Relationship
Manager and other Key Managerial Personnel
inter-se between Directors,
There is no inter-se relationship between Mr. Koushik Chatterjee, other
members of the Board and Key Managerial Personnel of the Company.
Shareholding in the Company
Mr. Koushik Chatterjee holds 1,531 Fully Paid Equity Shares and 105
Partly Paid Equity Shares of the Company.
430
Profile of Mr. Vijay Kumar Sharma
Mr. Vijay Kumar Sharma (60) was
appointed as a Member of the
Board effective August 24, 2018.
is
he
the
India
former
Mr. Sharma
Insurance
Chairman of Life
(‘LIC’),
Corporation of
till
position
a
December 31, 2018. Prior to him
taking over as Chairman of LIC on
December 16, 2016, he served
as Chairman (In-charge) from
and
16,
September
Managing Director, LIC from November 1, 2013. From December 2010
to November 2013, he served as Managing Director & Chief Executive
Officer, LIC Housing Finance Limited (‘LICHFL’), a premier housing
finance company in the country.
2016
held
Mr. Sharma joined LIC as a Direct Recruit Officer in 1981 and in an
illustrious career spanning 37 years, served in several pivotal positions
in LIC. Mr. Sharma has steered LIC in challenging assignments, pan
India, which has added immensely to his experience and honed his
understanding of demographics of the country, socio-economic needs
of different regions and multi-cultural challenges in implementation
of objectives of large Corporates.
As the Managing Director & Chief Executive Officer of LICHFL,
he stabilised the operations of the Company under challenging
circumstances and turned it around to be the best housing finance
company in 2011.
Mr. Sharma holds a post-graduate degree (MSc.) in Botany from
University of Patna.
Particulars of experience, attributes or skills that qualify
Mr. Sharma for Board membership:
Mr. Sharma is an inspirational leader with strong negotiation skills
gained over 37 years of extensive experience in insurance and financial
sectors. He connects with people at different levels and believes in
bottom-up approach in executing various projects. He has an ability
to make his vision towards an organisation a reality. He is known as
Growth Leader, as he steered LIC to surge ahead and turnaround on
its growth path in all segments of performance.
Mr. Sharma’s demonstrated executive
leadership as the former
Chairman of LIC indicate that he will provide valued insights and
perspectives to the Board deliberations on complex financial and
operational issues. The Board will draw on his experience and skills in
the areas of business strategy, product development and branding,
stakeholder engagement, risk mitigation, compliance, internal controls
and administrative issues. His unique insights with respect to regulatory
and policy matters will strengthen the Board's collective knowledge,
capabilities and experience.
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE Board Meeting Attendance and Remuneration
Profile of Ms. Mallika Srinivasan
During the year, Mr. Sharma attended all three Board Meetings held
post his appointment as Director. Details regarding the remuneration
is provided in the Corporate Governance Report forming part of the
Board's Report.
Bodies Corporate (other than Tata Steel Limited) in which
Mr. V. K. Sharma holds Directorships and Committee positions
Directorships
ACC Limited
Mahindra and Mahindra Limited
Member of Board Committees
ACC Limited
Risk Committee
Corporate Social Responsibility Committee
Disclosure of Relationship
Manager and other Key Managerial Personnel
inter-se between Directors,
There is no inter-se relationship between Mr. V. K. Sharma, other
members of the Board and Key Managerial Personnel of the Company.
Shareholding in the Company
Mr. V. K. Sharma through his relative holds 250 Fully Paid Equity Shares
of the Company.
Ms. Mallika Srinivasan (59) was
appointed as a Member of the
Board effective May 21, 2012.
Ms. Srinivasan was appointed as
an Independent Director of the
Company, under the Companies
Act, 2013, by the Shareholders
of the Company at the 107th
Annual General Meeting held
on August 14, 2014,
for a
period of five years with effect
from August 14, 2014 up to
August 13, 2019.
Ms. Srinivasan is the Chairperson and Chief Executive Officer of
Tractors and Farm Equipment Limited (‘TAFE’). She has spearheaded
TAFE’s growth to its present status as the third largest tractor
manufacturer in the world.
The accolades and awards she has received in the recent years are
testimonial to her professionalism and thought leadership. In 2018,
Ms. Srinivasan was conferred the Outstanding Woman Entrepreneur
Award at The Economic Times Family Business Awards and ranked
5th in the Fortune India List of Most Powerful Women in business.
In September 2017, she was awarded the Honorary Doctorate of
Science (Honoris Causa) by the Tamil Nadu Agricultural University
in recognition of her contributions to global agriculture, machinery
business and academia. She was featured among ‘BBC 100 Women
2016’ - a list of inspirational and influential women from across the
world, compiled by the British Broadcasting Corporation (BBC) in
November 2016. In March 2015, she was conferred the prestigious
Sir Jehangir Ghandy Medal for Social and Industrial Peace by the Xavier
School of Management, Jamshedpur, India. In 2014, the Government of
India conferred Ms. Srinivasan with the prestigious Padma Shri award
for her contribution to Trade and Industry.
Ms. Mallika Srinivasan holds a Masters of Business Management
degree from Wharton School of Business, University of Pennsylvania,
USA and Masters of Arts in Econometrics from the University of
Madras, Chennai.
Particulars of experience, attributes or skills that qualify
Ms. Srinivasan for Board membership:
Ms. Srinivasan has extensive experience
in manufacturing
sector. Ms. Srinivasan’s leadership skills and business acumen are
demonstrated by her success in managing large enterprises.
Ms. Srinivasan occupies herself primarily with Board and leadership
Roles in a range of global manufacturing companies. Her rich and wide
experience enables her to provide valued insights and perspectives
on a broad range of business, social and governance issues that are
relevant to large corporations.
431
Board Meeting Attendance and Remuneration
Profile of Mr. O. P. Bhatt
Ms. Srinivasan attended five Board Meetings held during the year
as Director. Details regarding the remuneration is provided in the
Corporate Governance Report forming part of the Board's Report.
Bodies Corporate (other than Tata Steel Limited) in which
Ms. Mallika Srinivasan holds Directorships and Committee
positions
Mr. O. P. Bhatt (68) was appointed
as a Member of the Board with
effect from June 10, 2013.
He was then appointed as an
Independent Director of
the
Company, under the Companies
Act, 2013, by the Shareholders
of the Company at the 107th
Annual General Meeting held on
August 14, 2014, for a period of five
years with effect from August 14,
2014 up to August 13, 2019.
Prior to joining Tata Steel as a Director, Mr. Bhatt has served as the
Chairman of State Bank Group from June 2006 to March 2011,
which includes the State Bank of India (‘SBI’), five associate banks
in India, five overseas banks, SBI Life, SBI Capital Markets, SBI Fund
Management and other subsidiaries spanning diverse activities from
general insurance to custodial services.
He has served as Chairman of the Indian Banks’ Association, the
apex body of Indian banks and was the government’s nominee on
the India-US CEO Forum, Indo-French CEO Forum and Indo-Russia
CEO Forum. He has also served as a Governor on the Board of Centre
for Creative Leadership, USA and was nominated ‘Banker of the
Year’ by Business Standard and ‘Indian of the Year for Business’ in
2007 by CNN-IBN.
Mr. O. P. Bhatt is a graduate in Science and a post graduate in English
Literature (Gold Medalist) from University of Meerut.
Particulars of experience, attributes or skills that qualify
Mr. Bhatt for Board membership:
Mr. Bhatt is a successful international leader with a career spanning
4 decades. He has served in several pivotal positions during his tenure
in SBI. As the Chairman of SBI, he has transformed SBI in bringing
efficiency and competitiveness in operations. It is under his stewardship
that SBI adopted an aggressive strategy in marketing and operations
and rose on the global list rankings of Fortune 500 companies.
Mr. Bhatt brings with him deep knowledge in Banking, Financial and
Manufacturing sectors and has a proven track record in managing
complex organisation structures. Mr. Bhatt occupies himself primarily
with Board in a range of global manufacturing and technology
companies such as Tata Motors Limited and Tata Consultancy Services
Limited amongst others. His prior experience enables him to provide
the Board with valuable insights on a broad range of business, social
and governance issues that are relevant to large corporations.
the
above
With
of
accomplishments, Mr. Bhatt will continue to add significant value and
strength to the Board.
exceptionally distinguished
record
Directorships
TAFE Motors and Tractors Limited
Tractors and Farm Equipment Limited
TAFE Access Limited
TAFE Reach Limited
The United Nilgiri Tea Estate Company Limited
Tata Global Beverages Limited
TAFE Properties Limited
Trust Properties Development Company Private Limited
AGCO Corporation, USA
Chennai Willington Corporate Foundation
Indian School of Business
Harita Realty Developers LLP
Chairperson of Board Committees
TAFE Motors and Tractors Limited
Corporate Social Responsibility Committee
The United Nilgiri Tea Estates Company Limited
Corporate Social Responsibility Committee
Tractors and Farm Equipment Limited
Corporate Social Responsibility Committee
Member of Board Committees
TAFE Motors and Tractors Limited
Nomination and Remuneration Committee
The United Nilgiri Tea Estates Company Limited
Nomination and Remuneration Committee
Tractors and Farm Equipment Limited
Nomination and Remuneration Committee
Disclosure of Relationship
Manager and other Key Managerial Personnel
inter-se between Directors,
There is no inter-se relationship between Ms. Mallika Srinivasan, other
members of the Board and Key Managerial Personnel of the Company.
Shareholding in the Company
Ms. Mallika Srinivasan does not hold any Equity Shares of
the Company.
432
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE Board Meeting Attendance and Remuneration
Profile of Mr. T. V. Narendran
During the year, Mr. O. P. Bhatt attended six Board Meetings held
during the year as Director. Details regarding the remuneration is
provided in the Corporate Governance Report forming part of the
Board's Report.
Bodies Corporate (other than Tata Steel Limited) in which
Mr. O. P. Bhatt holds Directorships and Committee positions
Directorships
Hindustan Unilever Limited
Tata Consultancy Services Limited
Tata Motors Limited
Greenco Energy Holdings Limited
Chairperson of Board Committees
Hindustan Unilever Limited
Stakeholders’ Relationship Committee
Corporate Social Responsibility Committee
Tata Consultancy Services Limited
Risk Committee
Tata Motors Limited
Nomination and Remuneration Committee
Corporate Social Responsibility Committee
Member of Board Committees
Hindustan Unilever Limited
Audit Committee
Remuneration Committee
Tata Consultancy Services Limited
Audit Committee
Nomination and Remuneration Committee
Corporate Social Responsibility Committee
Ethics and Compliance Committee
Tata Motors Limited
Audit Committee
Disclosure of Relationship
Manager and other Key Managerial Personnel
inter-se between Directors,
There is no inter-se relationship between Mr. O. P. Bhatt, other
members of the Board and Key Managerial Personnel of the Company.
Shareholding in the Company
Mr. O. P. Bhatt does not hold any Equity Shares of the Company.
the Company
Mr. T. V. Narendran (54) was
inducted as Managing Director
effective
of
September 19, 2013. He was
re-designated as
the Chief
Executive Officer and Managing
Director
(‘CEO & MD’) on
October 31, 2017 and was
re-appointed as CEO & MD
effective September 19, 2018.
joined
1988
Mr. Narendran
Company
the
after
in
completing his MBA from
IIM Calcutta. As the CEO & MD,
Mr. Narendran oversaw the successful acquisitions of Bhushan Steel
Limited (now known as Tata Steel BSL Limited), and the Steel business
of Usha Martin Limited. As the Managing Director, he successfully
commissioned Tata Steel’s Kalinganagar Steel Plant in Odisha,
which achieved its rated capacity within a very short span of time.
This project enhanced Tata Steel’s ability to deliver steel to higher
value segments like the automotive and the oil & gas industries.
Currently Mr. Narendran is overseeing the expansion of Phase 2 of the
Kalinganagar Steel Plant.
His career in Tata Steel spanned many areas in India and overseas,
including Marketing & Sales, International Trade, Supply Chain
& Planning, Operations and General Management and includes
positions held by him at Jamshedpur, Kolkata, Dubai and Singapore.
Prior to becoming the Managing Director of Tata Steel in 2013,
Mr. Narendran was the Vice President - Safety, Flat Products & Long
Products of the Company from 2010.
During his tenure, Mr. Narendran led the Company’s first overseas
acquisitions in South East Asia – NatSteel. He served as the Executive
Vice-President of NatSteel since 2005 and was appointed the
President & CEO of the Company from January 2008.
Mr. Narendran is a member on the Board of the World Steel Association
and is a member of its Executive Committee. He was the co-chair of
the Mining & Metals Governors Council of the World Economic Forum
from 2016 to 2018. He is the Vice President of the Confederation
of Indian Industry ('CII'). He is also the Vice President of the Indian
Institute of Metals, and is the President of the Indian Steel Association.
Mr. Narendran is a Chevening scholar. He is a Mechanical Engineer
from NIT Trichy (1986) and completed his MBA from IIM Calcutta
(1988). He has also attended the Advanced Management Programme
in CEDEP-INSEAD, Fontainebleau, France. He is a Fellow of The Indian
National Academy of Engineering ('INAE'), and is a recipient of
Distinguished Alumnus Awards from both NIT Trichy and IIM Calcutta.
Particulars of experience, attributes or skills that qualify
Mr. Narendran for Board membership:
Mr. Narendran has over 30 years of experience in the Metals and
Mining industry. By virtue of his background and experience, he has
vast and deep knowledge of the steel industry.
433
Chairperson of Board Committees
Tata Steel BSL Limited
Corporate Social Responsibility & Sustainable Committee
Capex Committee
Safety, Health and Environment Committee
Tata Sponge Iron Limited
Committee of Board
Member of Board Committees
Tata Steel Europe Limited
Remuneration Committee
Audit Committee
Tata Steel BSL Limited
Nomination and Remuneration Committee
Tata Sponge Iron Limited
Nomination and Remuneration Committee
Disclosure of Relationship
Manager and other Key Managerial Personnel
inter-se between Directors,
There is no inter-se relationship between Mr. T. V. Narendran, other
members of the Board and Key Managerial Personnel of the Company.
Shareholding in the Company
Mr. Narendran along with his relative holds 2,032 Fully Paid Equity
Shares and 139 Partly Paid Equity Shares of the Company.
As
the Chief Executive Officer and Managing Director,
Mr. Narendran is responsible for the business and corporate affairs of
Tata Steel globally. He provides broad insights to the understanding
of complex strategic, operational, and financial matters of the
Industry as well as the Company.
Also, as a Key Managerial Personnel, Mr. Narendran provides the Board
with an ‘‘insider’s view’’ of all facets of the Company. His perspective
provides the Board with important information necessary to oversee
the business and affairs of the Company.
His ability to manage different stakeholders, build consensus around
divergent issues, and lead the executive team effectively is invaluable
to the Company. Mr. Narendran exhibits high levels of loyalty,
commitment, and integrity towards the Company. The Company will
be best served by his re-appointment as the Chief Executive Officer
and Managing Director.
Board Meeting Attendance and Remuneration
During the year, Mr. Narendran attended all seven Board Meetings
held. Being an Executive Director, Mr. Narendran was not paid any
sitting fees for attending the meetings of the Board/Committees.
Details regarding the remuneration is provided in the Corporate
Governance Report forming part of the Board's Report.
Bodies Corporate (other than Tata Steel Limited) in which
Mr. T. V. Narendran holds Directorships and Committee
positions
Directorships
Tata Steel Europe Limited
Tata Steel BSL Limited (formerly Bhushan Steel Limited)
Tata Sponge Iron Limited
Jugsalai Steel Limited
Straight Mile Steel Limited
Sakchi Steel Limited
Noamundi Steel Limited
Tata Steel Foundation (Section 8 Company)
434
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE Route map to the AGM Venue
Landmark: Next to Bombay Hospital (H)
Distance from Churchgate Station: 1 km
Distance from Chhatrapati Shivaji Terminus: 1.2 km
Distance from Marine Lines Station: 0.8 km
435
To,
TSR Darashaw Limited/Depository Participant
______________________________________
______________________________________
______________________________________
Updation of Shareholders Information
I/We request you to record the following information against my/our Folio No./DP ID/Client ID:
General Information:
Folio No./DP ID/Client ID:
Name of the first named Shareholder:
PAN:*
CIN/Registration No.:*
(applicable to Corporate Shareholders)
Tel. No. with STD Code:
Mobile No.:
E-mail id:
*Self attested copy of the document(s) enclosed.
Bank Details:
IFSC:
(11 digit)
MICR:
(9 digit)
Bank A/c Type:
Bank A/c No.: *
Name of the Bank:
Bank Branch Address:
*A blank cancelled cheque is enclosed to enable verification of bank details.
I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed because of
incomplete or incorrect information, I/We would not hold the Company/RTA responsible. I/We undertake to inform any subsequent
changes in the above particulars as and when the changes take place. I/We understand that the above details shall be maintained till
I/We hold the securities under the above mentioned Folio No.
Place:
Date:
_________________________
Signature of Sole/First holder
Note:
Shareholders holding shares in physical mode and having Folio No(s) should provide the above information to our RTA,
TSR Darashaw Limited. Shareholders holding Demat shares are required to update their details with the Depositary Participant.
437
This page has been intentionally left blank
INTEGRATED REPORT & ANNUAL ACCOUNTS 2015-16 | 109TH YEAR
Tata Steel Limited
Registered Office: Bombay House, 24, Homi Mody Street, Fort, Mumbai - 400 001.
Tel.: +91 22 6665 8282 • Fax: +91 22 6665 7724 • Corporate Identity No.: (CIN) – L27100MH1907PLC000260
Website: www.tatasteel.com • Email: cosec@tatasteel.com
Attendance Slip
(To be presented at the entrance)
112TH ANNUAL GENERAL MEETING ON FRIDAY, JULY 19, 2019, AT 3.00 P.M. (IST)
at Birla Matushri Sabhagar,19, Sir Vithaldas Thackersey Marg, Mumbai - 400 020.
Folio No.
DP ID No.
Name of the Member:
Name of the Proxyholder:
Client ID No.
Signature:
Signature:
I hereby record my presence at the 112th Annual General Meeting of the Company held on Friday, July 19, 2019, at 3.00 p.m. IST at Birla Matushri
Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai – 400 020.
1. Only Member/Proxyholder can attend the Meeting.
2. Member/Proxyholder should bring his/her copy of the Integrated Report for reference at the Meeting.
Tata Steel Limited
Registered Office: Bombay House, 24, Homi Mody Street, Fort, Mumbai-400 001.
Tel.: +91 22 6665 8282 • Fax: +91 22 6665 7724 • Corporate Identity No.: (CIN) – L27100MH1907PLC000260
Website: www.tatasteel.com • Email: cosec@tatasteel.com
Proxy Form
(Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014, as amended)
Name of the Member(s) :
Registered address :
E-mail Id :
Folio No./Client ID No.
DP ID No.
I/We, being the Member(s) holding
Equity Shares of Tata Steel Limited, hereby appoint
1.
Name:
Address:
2.
Name:
Address:
3.
Name:
Address:
E-mail Id:
Signature:
E-mail Id:
Signature:
E-mail Id:
Signature:
or failing him
or failing him
as my/our Proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 112th Annual General Meeting of the Company to be held
on Friday, July 19, 2019, at 3.00 p.m. IST at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai-400 020 and at any adjournment
thereof in respect of such Resolutions as are indicated below:
** I wish my above Proxy to vote in the manner as indicated in the box below:
Resolution
No.
Ordinary Business
Resolution
For
Against
1
Consider and adopt the Audited Standalone Financial Statements for the
Financial Year ended March 31, 2019 and the Reports of the Board of Directors
and Auditors thereon.
439
Resolution
No.
Ordinary Business
Resolution
For
Against
2
3
4
Consider and adopt the Audited Consolidated Financial Statements for the
Financial Year ended March 31, 2019 and the Report of the Auditors thereon.
Declaration of Dividend on fully paid and partly paid Ordinary Shares for Financial
Year 2018-19.
Appointment of Director in place of Mr. Koushik Chatterjee (DIN:00004989), who
retires by rotation and being eligible, seeks re-appointment.
Special Business
5
6
7
8
9
Appointment of Mr. Vijay Kumar Sharma (DIN: 02449088) as a Director.
Re-Appointment of Ms. Mallika Srinivasan (DIN: 00037022) as an Independent
Director.
Re-Appointment of Mr. O. P. Bhatt (DIN: 00548091) as an Independent Director.
Re-Appointment of Mr. T. V. Narendran (DIN: 03083605) as Chief Executive Officer
and Managing Director and payment of remuneration.
Ratification of the remuneration of Messrs Shome & Banerjee, Cost Auditors of the
Company.
Signed this
day of
2019
Affix
Revenue
Stamp
Signature of Shareholder
Signature of Proxyholder(s)
This Form of Proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company at Bombay
House, 24, Homi Mody Street, Fort, Mumbai-400 001 not less than 48 hours before the commencement of the Meeting.
This is only optional. Please put a ‘√’ in the appropriate column against the Resolutions indicated in the Box. If you leave the ‘For’ or
‘Against’ column blank against any or all the Resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.
Appointing Proxy does not prevent a Member from attending in person if he/she so wishes.
In case of joint holders, the signature of any one holder will be sufficient, but names of all the joint holders should be stated.
NOTES:
1.
** 2.
3.
4.
440
INTEGRATED REPORT & ANNUAL ACCOUNTS 2018-19 | 112TH YEARNOTICE
Celebrating 100 Years
of Jamshedpur
Jamshedpur is where it all started. The city, today, is synonymous with more than just steel
and represents a truly vibrant and cosmopolitan India.
The city, originally called Sakchi, was renamed as ‘Jamshedpur’ by Lord Chelmsford (Viceroy of India between 1916-21)
on January 2, 1919 in the honour of Jamsetji Nusserwanji Tata, founder of the Tata group.
Tata Steel Limited
Bombay House, 24 Homi Mody Street, Fort, Mumbai - 400 001
www.tatasteel.com
Scan the QR Code to
read the report online
/TataSteelLtd
/Tatasteelltd
/company/tata-steel/
/user/Thetatasteel/
/tatasteelltd/
Continue reading text version or see original annual report in PDF
format above