Professional Documents
Culture Documents
Annual Report2014 15
Annual Report2014 15
CONTENTS
CORPORATE OVERVIEW
About Tata Chemicals ------------------------------------------------------------------------Tata Chemicals worldwide -------------------------------------------------------------------Our customers
Industries -------------------------------------------------------------------------------------Households ----------------------------------------------------------------------------------Farmers ---------------------------------------------------------------------------------------Innovation for value --------------------------------------------------------------------------Our people --------------------------------------------------------------------------------------Promoting inclusive growth --------------------------------------------------------------------------------------------------------------------------------Care for the environment
Our communities and us --------------------------------------------------------------------
01
02
04
05
06
07
08
09
10
11
Our leadership
Board of Directors --------------------------------------------------------------------------Management team -------------------------------------------------------------------------Financial Highlights ---------------------------------------------------------------------------Awards -------------------------------------------------------------------------------------------Results at a glance --------------------------------------------------------------------------------
12
13
14
16
17
STATUTORY REPORTS
Notice ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------Boards Report
Management Discussion and Analysis -----------------------------------------------------Corporate Governance Report ---------------------------------------------------------------
18
27
63
85
FINANCIAL STATEMENTS
102
106
107
108
110
142
144
145
146
148
189
191
192
199
LEAP signifies Lead Engage Aspire and Perform, the four steps that will help us in our
journey towards excellence and growth. We strive to be leaders by engaging closely with
all our stakeholders, and aspiring to achieve excellence through continuous improvement
and performance. Embedded in the logo is LIFE: Living, Industry and Farm Essentials,
represented by the orange, blue and green characters respectively.
02
Annual Report FY2014-15
CORPORATE OVERVIEW
CONSUMER
PRODUCTS
ENRICHING LIFE
W
Table salts
Pulses
Spices
Water purifiers
Soda ash
Sodium bicarbonate
Allied chemicals
INDUSTRIAL
CHEMICALS
AGRI
SOLUTIONS
NUTRITIONAL
SOLUTIONS
Fertilisers
Nutrients
Pesticides
Insecticides
Herbicides
Seeds
Innovative
wellness food
solutions
1
Annual Report FY2014-15
NORTH AMERICA
Tata Chemicals North America
is one of the worlds leading
producers of high-quality soda ash
with manufacturing operations
based in Green River, Wyoming,
USA.
EUROPE
Tata Chemicals Europe is one of
Europes leading producers of
soda ash, salt and sodium
bicarbonate with manufacturing
operations based in Cheshire, UK.
British Salt is the UKs leading
manufacturer of pure dried
vacuum salt products with
customers all over the world. Its
operations are based in
Middlewich, UK.
AFRICA
Tata Chemicals Magadi is Africas
largest soda ash manufacturer
with manufacturing operations
based at Lake Magadi, Kenya.
Indo Maroc Phosphore (IMACID),
is a Morocco-based joint venture,
in which the company holds
33% stake. IMACID also supplies
phosphoric acid to Haldia plant.
WORLDWIDE
2
Annual Report FY2014-15
CORPORATE OVERVIEW
INDIA
Headquartered in Mumbai,
India, Tata Chemicals
is a global company
with operations in four
continents. The company
operates in the areas of
inorganic chemicals, crop
nutrition and agri business
and consumer products
portfolio called LIFE - Living
essentials, Industry essentials
and Farm essentials.
Rallis India a Tata
Chemicals subsidiary,
is one of Indias leading
agrochemicals companies,
with a comprehensive
portfolio that includes crop
protection products, plant
growth nutrients, seeds,
crop services and contract
manufacturing.
Metahelix Life Sciences
a subsidiary of Rallis India,
is an Indian agricultural
biotechnology company that
focuses on developing traits
and technologies for crop
protection and improved
productivity.
PRESENCE
SINGAPORE
Tata Chemicals
International Pte Ltd, based
in Singapore, is the holding
company for all overseas
chemicals assets and is
involved in the business of
trading of goods including
soda ash.
3
Annual Report FY2014-15
OUR CUSTOMERS
INDUSTRIES
T
OUR BRANDS
Alkakarb
Sodium bicarbonate for the
animal feed sector
Briskarb
Sodium bicarbonate for
use in flue gas treatment
Dessikarb
Sodium bicarbonate
for use in explosion
suppression
Aquex
Tata Chemicals Europes
brand name for a range
of corrosion inhibiting
calcium chloride solutions
produced mainly for the
refrigeration sector
Crex
Unique form of sodium
sesquicarbonate
Tata Shudh
Branded cement created to
utilise the fly ash from the
Mithapur plant
Sodakarb
A food grade
sodium bicarbonate
Granplus
Speckle grade soda ash
dense for application in
detergent powders
4
Annual Report FY2014-15
CORPORATE OVERVIEW
OUR CUSTOMERS
HOUSEHOLDS
T
I-Shakti is the
first national brand
of pulses and is available
in over
stores
across India. The Tata I-Shakti range
of spices was recently
launched in
Punjab
90,000
OUR BRANDS
Tata Salt
Tata Salt Lite
Tata Salt Plus
Tata Salt Flavoritz
Tata I-Shakti pulses, spices
6CVC5YCEJYCVGTRWTKGTU
5
Annual Report FY2014-15
05
OUR CUSTOMERS
FARMERS
T
OUR BRANDS
Fertilisers
Tata Paras, Paras Farmoola
Fungicides
Contaf, Contaf Plus, Master and Fujione
Weedicides
Fateh, Tata Metri, Tata Panida
Insecticides
Tata Mida, Reeva, Asataf, Manik
Seeds
Dhaanya Seeds, Daksha Seeds
Retail
Tata Kisan Sansar
06
6
Annual Report FY2014-15
800
network of over
Tata Kisan Sansar stores
CORPORATE OVERVIEW
The Innovation Centre was set up in 2004 to seed new businesses using principles of sustainability and green chemistry. Our current biotechnology-based nutritional solutions,
food ingredients and exploratory efforts in nano-materials
are outcomes of this process.
7
Annual Report FY2014-15
07
OUR PEOPLE
FLEXI WORK
HUMAN CAPITAL
On an average, our employees get
more than 28 hours of training per
person per annum. This focus on
learning and development has led
to the introduction of e-learning
platforms, and has been based on
training-need identification.
8
Annual Report FY2014-15
CORPORATE OVERVIEW
SHIKSHA MAITREYI
Meaning friendship with
education, our Shiksha
Maitreyi programme helps
many disadvantaged
children complete their
education. Our key initiative
includes scholarships
for middle, higher and
technical education for
about 200 children annually.
Additionally, 200 girls who
dropped out of schools
are helped to get back
into formal education
annually with the help of
SNDT University. Some of
these girls have now got
employment as teachers
while some of them have
taken up vocational training
to further improve their
skills.
VENDOR DEVELOPMENT
We believe that it is also important to
contribute to the sustainable development
of society and enrich the life of people
around us. We have mapped our supplier on
diversity and are looking at ways to reach out
to them and sensitise them as well. One of
the ways we promote diversity is by working
to develop new suppliers from communities
near our operations. For example, at Mithapur,
we engage with women self-help group
clusters and work to promote them as
suppliers for items such as jute bags for gift
items and leather tool bags for technicians.
We have also connected with members of
Dalit Indian Chamber of Commerce and
Industry, and are working on ways to include
them in our supply chain.
DEVELOPING ENTREPRENEURS
Udaan is a platform to develop
entrepreneurs from communities
residing near our plant locations. The
programme endeavours to develop
entrepreneurship skills in rural youth,
especially from low or moderate
income families and to guide them
to engage themselves in productive
enterprises, thereby building a
sustainable local economy.
9
Annual Report FY2014-15
09
ur vision is to be a leader in
corporate sustainability
focussing on becoming sustainable
with regard to the three elements of
people, planet and profit.
PROJECT SIMPSON
The Tata Chemicals North America team
in Green River, Wyoming is working on
Project Simpson, which involves
retro-fitting coal-burning boilers with
NOx burner and separated-over-fire- air
systems to significantly improve their
long-term operability and environment.
This will reduce NOx emissions on both
boilers. Over time this project has the
potential to lower emissions even further.
RENEWABLES
SUSTAINABLE
MANUFACTURING
Principles of sustainable manufacturing
are an integral part of the company
organisational strategy. Our basic
philosophy is effective integration of
resource optimisation, use of alternative
sources and maximisation of recycle and
reuse through continuous improvement
and innovation. We have initiated various
operational excellence programmes that
include periodic technical audits and
initiatives like Benchmarking and Lean Six
Sigma across the enterprise.
Energy efficient operations are a key
to short term and long term strategic
plans to reduce Green House Gas (GHG)
emissions at TCL.
Similarly water management is another
target area and we are working on
reducing our water footprint across the
enterprise. We also try and ensure that
all employees and associates understand
10
10
Annual Report FY2014-15
DHARTI KO ARPAN:
GIVING BACK TO EARTH
Tata Chemicals Dharti Ko Arpan
programmes main aim is environment
CORPORATE OVERVIEW
OUR COMMUNITIES
AND US
D
11
BOARD OF DIRECTORS
R GOPALAKRISHNAN
CYRUS P MISTRY
VICE CHAIRMAN
CHAIRMAN
NUSLI N WADIA
PRASAD R MENON
NASSER MUNJEE
E A KSHIRSAGAR
DR Y S P THORAT
DIRECTOR
DIRECTOR
DIRECTOR
R MUKUNDAN
MANAGING DIRECTOR
12
12
Annual Report FY2014-15
DIRECTOR
DIRECTOR
DIRECTOR
P K GHOSE
CORPORATE OVERVIEW
MANAGEMENT TEAM
CORPORATE
R. Mukundan - Managing Director
P. K. Ghose - Executive Director & CFO
R. Nanda - Chief Human Resources Officer
Rajiv Chandan - General Counsel & Company Secretary
INDIA OPERATIONS
Dr. Arup Basu President, New Businesses & Innovation Centre
Zarir Langrana Chief Operating Officer, Chemicals (India)
D. K. Sundar Chief Operating Officer, Fertilisers
Richa Arora Chief Operating Officer, Consumer Products
INTERNATIONAL OPERATIONS
Martin Keighley - Managing Director, Tata Chemicals North America
Dr. Martin Ashcroft Managing Director, Tata Chemicals Europe
Jackson Mbui Managing Director, Tata Chemicals Magadi
OTHER INFORMATION
Auditors
Deloitte Haskins & Sells
LLP Chartered
Accountants
Solicitors
AZB & Partners
Mulla & Mulla & Craigie,
Blunt & Caroe
13
Annual Report FY2014-15
13
FINANCIAL HIGHLIGHTS
(`in crores except per share data, EBITDA %, PAT %,
Return on Invested Capital and Net Debt/EBITDA)
14%
12%
3%
13%
13%
4%
12%
11%
(1,032)
13%
1,500
596
14%
6%
5%
408
653
2,000
8%
7%
6%
7%
6%
500
638
16%
15%
436
17%
400
17%
2,500
643
3,000
587
838
(500)
10%
10%
1,000
2,157
1,039
1,810
928
2,163
1,046
2,275
1,024
893
1,864
500
2010-11
CAGR:
(10)
(40.51)
252
237
224
214
250
218
2.80
2.30
150
(30)
(50)
2010-11
2011-12
Standalone EPS
Consolidated EPS
2012-13
2013-14
2014-15
2010-11
2011-12
Standalone
Consolidated
2012-13
2013-14
5,552
6,043
5,566
5,701
6,414
5,307
6,336
4,936
5,452
4,741
100
2
1.80
1.30
(40)
3.30
200
208
194
186
(20)
3.80
249
218
2014-15
0.80
0.30
2.06
10
PAT % Standalone
PAT % Consolidated
3.67
23.41
25.04
17.12
10
15.72
25.25
10
32.88
23.03
26.10
10
300
12
10
Standalone
Consolidated
EBITDA % Standalone
EBITDA % Consolidated
14
16.32
10
2010-11
12.5
30
(1,500)
2014-15
40
20
Standalone=4%
Consolidated=4%
2013-14
2.22
2012-13
3.02
Standalone=13%
Consolidated=12%
2011-12
2.51
2014-15
2.36
2013-14
2.42
2012-13
2.34
CAGR:
2011-12
(7%)
6%
2010-11
8%
2.44
16,913
9,984
15,725
8,580
14,571
8,293
13,659
7,913
10,895
6,225
(1,000)
3.20
TURNOVER*
50
0.20
2010-11
2011-12
2012-13
2013-14
2014-15
Standalone
Consolidated
342
322
347
287
8%
2010-11
2011-12
2012-13
2013-14
2014-15
2010-11
2011-12
2012-13
11,300
7,317
8,213
8,713
redemption of investment.
8,831
9%
6%
(3%)
6%
9%
10%
9%
10%
7%
2013-14 2014-15
Market Capitalisation
Share Price
current investments
14
14
Annual Report FY2014-15
CORPORATE OVERVIEW
Complex Fertilisers
Urea
Soda Ash
Vacuum and Iodised Salt
Cement
Other Income
Others
33%
21%
15%
10%
2%
3%
16%
38%
21%
13%
6%
1%
2%
19%
Chemicals
Fertilisers
Other Agri Inputs
Others
Soda Ash
Complex Fertilisers
Urea
Vacuum and Iodised Salt
Cement
Other Income
Others
Materials
Distribution
Overheads
Employees
Depreciation
Interest
Taxes
Exceptional Items
Minority Interest
Dividend
Retention
54%
16%
10%
7%
3%
3%
2%
1%
1%
2%
1%
47%
39%
12%
2%
Asia
America
Europe
Africa
72%
15%
9%
4%
15
Annual Report FY2014-15
15
Tata Chemicals
Society for Rural
Development
wins Mahindra
Samriddhi India
Agri Awards 2015
Tata Chemicals
Mithapur
CMS wins the
Innovation in
Maintenance
Award
Gujarat Chief
Minister and
Governor honour
Okhai for Women
Empowerment
Tata Salt in
Brandstands
10 Tankers
Tata Salt
recognised
among Brand
Equitys
Most Trusted
Brands
Tata Chemicals
Mithapur - Ranavav
quarries - wins in
Safety & Environment
Week competitions
2014-15
Tata Chemicals
Babrala plant bags
NSCIs Suraksha
Puraskar at the
National Safety
Awards
Tata Chemicals
wins the best CSR
project in Alleviation of Poverty at
the ICAI CSR
Awards 2014
Tata Chemicals
recognised as Indias
Most Admired
Knowledge
Enterprise (MAKE)
Winner 2014
Tata Chemicals
ranks 2nd in
Indias Best
Companies
for CSR
16
Annual Report FY2014-15
STATUTORY REPORTS
Results at a glance
(` in crore)
Tata Chemicals Standalone
2014-15
2013-14
2014-15
2013-14
10,276.81
8,882.31
17,320.91
16,027.77
854.09
568.88
1,158.51
(518.89)
637.97
436.07
807.39
(807.67)
637.97
436.07
596.46
(1,032.00)
Dividend
318.44
254.76
318.44
254.76
Reserves
5,788.45
5,446.41
5,296.89
5,310.69
Capital Employed*
5,704.38
5,793.66
16,538.24
16,551.54
Net Worth**
6,043.27
5,701.23
5,551.71
5,565.51
Borrowings
2,715.88
3,034.69
8,378.84
8,393.06
Total Revenue
Ratio
Debt : Equity
0.45
Ratio
0.53
1.51
`
Net worth per share as at year end
1.51
`
237.22
223.79
217.92
218.46
Basic
25.04
17.12
23.41
(40.51)
Diluted
25.04
17.12
23.41
(40.51)
12.50
10.00
12.50
10.00
1,84,566
1,96,585
Shareholders (Numbers)
* Capital Employed: Total Assets minus Current Liabilities plus Short-term Borrowings plus Current Maturities of Long-term Debt and
finance lease obligations minus investment in subsidiary companies (other than Rallis India Limited)
** Net Worth: Share Capital plus Reserves
17
Annual Report FY2014-15
NOTICE
NOTICE IS HEREBY GIVEN THAT THE SEVENTY SIXTH ANNUAL
GENERAL MEETING OF TATA CHEMICALS LIMITED will be
held on Tuesday, 11th August, 2015 at 3.00 p.m. at Birla
Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg,
Mumbai 400 020, to transact the following businesses:-
ORDINARY BUSINESS
1.
b.
2.
3.
4.
NOTES:
1.
2.
SPECIAL BUSINESS
5.
18
Annual Report FY2014-15
STATUTORY REPORTS
3.
5.
6.
their mandates:
a)
7.
8.
9.
Nomination Facility:
b)
participants.
19
Annual Report FY2014-15
NOTICE
10.
Unclaimed Dividend:
a)
11.
12.
13.
STATUTORY REPORTS
15.
16.
17.
18.
III.
IV.
V.
VI.
NOTICE
of Tuesday, 4th August, 2015, 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 it subsequently. A person
who is not a member as on the cut-off date
should treat this notice for information purpose
only.
VII.
A.
(i)
B.
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
22
Annual Report FY2014-15
(x)
(xi)
(xii)
(ii)
Please follow all steps from Sr. No. (ii) to Sr. No.
(xii) above, to cast vote.
VIII.
IX.
X.
XI.
STATUTORY REPORTS
XIII.
XIV.
XV.
XVI.
Rajiv Chandan
General Counsel & Company Secretary
23
Annual Report FY2014-15
NOTICE
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Pursuant to Section 102 of the Companies Act, 2013
(the Act), the following explanatory statement sets out all
material facts relating to the business mentioned under item
nos. 4 and 5 of the accompanying notice.
Item No. 4
This explanatory statement is provided though strictly not
required as per Section 102 of the Act.
Deloitte Haskins & Sells LLP (Firm Registration No. 117366W/
W-100018), Chartered Accountants, Mumbai were appointed
as the statutory auditors of the Company for a period of three
years at the Annual General Meeting (AGM) of the Company
held on 21st August, 2014 to hold office from the conclusion
of Seventy Fifth AGM till the conclusion of Seventy Eighth
AGM to be held in 2017.
As per the provisions of Section 139(1) of the Act, their
appointment for the above tenure is subject to ratification by
members at every AGM.
Accordingly, ratification of the members is being sought
for appointment of statutory auditors as per the proposal
contained in the Resolution set out at item no. 4 of the notice.
Sr.
No.
Audit Fees
1.
2.
` 1,20,000
Rajiv Chandan
General Counsel & Company Secretary
Item No. 5
The Company is required to have the audit of its cost records
conducted by a cost accountant in practice under Section
148 of the Act, read with the Companies (Cost Records and
Audit) Rules, 2014 (the Rules).
The Board, on the recommendation of the Audit Committee,
has approved the appointment and remuneration of the
Cost Auditors to conduct the audit of the cost records of the
Company for the financial year ending 31st March, 2016 as
per the following details:
24
Annual Report FY2014-15
STATUTORY REPORTS
Details of Director seeking appointment/reappointment at the Annual General Meeting pursuant to Clause 49 of the
Listing Agreement:
Name of Director
Date of Birth
Date of Appointment
Qualifications
Membership of Committees/Chairmanship
in other Public Limited Companies (includes
only Audit and Stakeholders Relationship
Committee)
NIL
16,000
25
Annual Report FY2014-15
NOTICE
To,
TSR Darashaw Limited
Unit: Tata Chemicals Limited
6-10 Haji Moosa Patrawala Industrial Estate
20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011
Updation of Member Information
I / We request you to record the following information against my / our Folio No.:
General Information:
Folio No.:
Name of the first named Member:
PAN: *
CIN / Registration No.: *
(applicable to Corporate Members)
Tel No. with STD Code:
Mobile No.:
Email 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 / Registrar and Share Transfer Agents 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. / beneficiary account.
Place:
____________________________
Date:
26
Annual Report FY2014-15
STATUTORY REPORTS
BOARDS REPORT
TO THE MEMBERS
OF TATA CHEMICALS LIMITED
The Directors hereby present their seventy sixth Annual Report together with the audited financial statements for the year ended
31st March, 2015:
FINANCIAL RESULTS
(` in crore)
Particulars
Total Revenue
Profit before Depreciation and Exceptional items
Less : Depreciation
Less : Exceptional items
Standalone
Consolidated
2014-15
2013-14
2014-15
2013-14
10,276.81
8,882.31
17,320.91
16,027.77
1,046.80
945.47
1,821.36
1,372.56
192.71
158.82
463.14
471.24
217.77
199.71
1,420.21
854.09
568.88
1,158.51
(518.89)
Tax
216.12
132.81
351.12
288.78
637.97
436.07
807.39
(807.67)
Minority Interest
205.53
221.00
5.40
3.33
637.97
436.07
596.46
(1,032.00)
2,691.98
2,463.52
1,695.63
3,086.70
(20.65)
131.74
(21.84)
3,309.30
3,031.33
2,270.25
2,054.70
318.44
254.76
318.44
254.76
63.58
40.98
73.43
44.96
43.61
14.54
58.24
Proposed dividend
(b)
(c)
General Reserve
(d)
(e)
DIVIDEND
For the year under review, the Directors have recommended
a dividend of 100.0% (` 10.00 per share) and a special
dividend of 25.0% (` 2.50 per share) on the occasion of the
Platinum Jubilee year of the Company, on its Ordinary Shares.
This would result in a payout aggregating ` 382.02 crore
including dividend tax (net). The dividend payment is subject
to approval of the members at the ensuing Annual General
Meeting.
PERFORMANCE REVIEW
Standalone:
The net revenue from operations of the Company
increased from ` 8,679.39 crore to ` 10,082.06 crore,
registering a growth of 16.2% over the previous year.
The earnings before interest, depreciation, tax and
1.11
2,927.28
2,691.98
1,863.84
1,695.63
BOARDS REPORT
` 596.46 crore as against the loss of ` 1,032.00 crore in the
previous year.
Tata Chemicals Limiteds (TCL or the Company) operation is
organised under four segments, i.e., (1) Inorganic Chemicals
comprising soda ash, salt, sodium bicarbonate, marine
chemicals, caustic soda and cement, (2) Fertilisers comprising
fertilisers and other traded products, (3) Other Agri-inputs
including Rallis India Limiteds operations and (4) Others comprising pulses, water purifier, nutritional solutions, etc.
Performance review of these businesses are as under:
1.
1.1
INDIA OPERATIONS
The Companys industrial chemicals operation is
primarily built around soda ash, sodium bicarbonate,
cement and allied traded products. On a macroeconomic front, Financial Year (FY) 2014-15 has been
stable with favourable global and domestic industrial
sentiments. With no significant capacity additions in
the domestic industry, imports remained substantial
through most of the year. The Company reaffirmed its
focus on higher value-added and branded products
by launching the GranPlus brand of speckle grade
soda ash. In line with the existing competencies of
customer-connect, quality products and distribution
reach, the Company continues to be actively engaged
in trading activities in the inorganic chemicals space.
The trading portfolio, consisting of new and allied
chemicals, will help the Company to explore new
growth areas while catering to a larger portion of the
customers spend.
Soda Ash
During the year under review, the domestic soda ash
market witnessed a growth of 10%. The higher than
average growth was observed due to improving
macro-economic factors and on the back of
sluggish growth in the previous year. Manufacturing
performance at Mithapur remained robust for the
year with production of 7,98,400 tonnes of soda ash.
The total sales volume for the year stood at 6,83,266
tonnes against 6,89,744 tonnes in the previous year. As
a continuation of the Companys strategy in soda ash
towards supporting and servicing customer specific
requirements, sourcing of material from subsidiary
28
Annual Report FY2014-15
STATUTORY REPORTS
29
Annual Report FY2014-15
BOARDS REPORT
Energy
During the year, TCE made substantial progress towards
delivering the improvement plan for its Combined
Heat & Power (CHP) plant which was acquired in
September 2013. Significant capital expenditure has
been incurred on a new 14 MW steam turbine, which is
due for commissioning in September 2015.
FERTILISER SEGMENT
During the year, the fertiliser business posted a
revenue of ` 6,227.26 crore against ` 5,187.34 crore in
the previous year, registering a growth of 20.0%.
CROP NUTRITION AND AGRI BUSINESS
Crop Nutrition and Agri business comprises
nitrogenous fertilisers i.e. urea manufactured at
the Babrala plant and phosphatic fertilisers such as
Di-ammonium Phosphate (DAP), NPK and Single Super
Phosphate (SSP) manufactured at the Haldia plant.
In addition to these, the Company imports and sells
Muriate of Potash (MOP), DAP and other crop nutrition
products like specialty fertilisers and organic materials.
It also operates a customised fertiliser plant at Babrala.
Despite an excellent manufacturing performance, the
Fertiliser business continues to be under pressure due
to margin compression and delay in subsidy recoveries.
The subsidy outstanding as on 31st March, 2015 is at
` 1,971.64 crore.
Urea
During the year, the Babrala plant achieved a total
urea production of 12,50,531 tonnes, higher by
1,13,027 tonnes compared to the previous year. The
specific energy consumption level of plant improved
during the year to 5.135 GCal / tonnes as against 5.203
GCal/tonnes. Higher gas cost, drop in import parity
price (IPP) for urea and higher working capital charges
have adversely impacted the business performance
during the year.
Complex Fertilisers (DAP / NPK / SSP)
During the year, Haldia plant achieved a combined
production of 8,68,157 tonnes of DAP, NPKs and SSP
STATUTORY REPORTS
3.
3.1
3.2
BOARDS REPORT
implements presence currently consists of sprayers.
During the year, Rallis has introduced state-of-the-art
battery and power sprayers for test marketing in a few
key markets.
4.
Water Purifier
In FY 2014-15, Tata Swach non-electric storage water
purifiers achieved sales of 4,02,435 units of purifiers
and bulbs in aggregate with market share of 9%
(Source: Market Pulse syndicated Audit March, 2015).
The product expanded its reach to be available in 98
cities through 3,200 outlets.
OTHERS
During the year, the Others comprising pulses, spices,
water purifier, nutritional solutions, etc. achieved a
revenue of ` 283.42 crore as against ` 172.45 crore in
the previous year, registering a growth of 64.4%.
Pulses
In FY 2014-15, Tata I-Shakti unpolished dal and besan
business grew by 82% to reach a turnover of ` 239.54
crore. During the year, the product availability grew
from 45,000 outlets to over 90,000 outlets in the key
focus markets. The Company stepped up its focus on
brand building activities and consumer awareness
campaigns for promoting Tata I-Shakti unpolished
dals, including the Dal on Call service in 3 cities Mumbai, Delhi and Bangalore.
5.
5.1
STATUTORY REPORTS
5.3
5.4
The pace of subsidy disbursements for fertilisers had sloweddown during the second half of the financial year, thereby,
resulting in high levels of working capital. The outstanding
balance of subsidy receivables as on 31st March 2015 is
` 1,971.64 crore as against an amount of ` 1,800.23 crore
outstanding as on 31st March 2014.
BOARDS REPORT
Tata Chemicals North America Inc., a step-down subsidiary
of the Company, has paid a dividend of US$ 20 million
(` 122.32 crore); which has been mainly utilised towards
operational requirements at Tata Chemicals International
Pte. Ltd, Singapore and repayment of intra group debt by the
Company. Another step-down subsidiary of the Company,
Tata Chemicals South Africa Pty. Limited has paid a dividend
of US$ 0.302 million (` 1.85 crore).
During the year, the Companys overseas subsidiary
Homefield Pvt UK Ltd had raised (refinanced) a term loan of
US$ 45 million and repaid the existing debt of US$ 44 million
on due date. Further, the Companys overseas subsidiary
Tata Chemicals Magadi Limited, in order to support the
restructuring initiatives, had raised (refinanced) a term loan
of US$ 59 million and pre-paid the existing debt of US$ 40
million. In both the above cases, the all-in interest rate of
the new loan is cheaper than the loan being replaced. The
Companys subsidiary Tata Chemicals Europe Holdings
Limited which raised term facilities (bridge facilities)
aggregating to GBP 140 million during the previous financial
year, extended the bridge facilities by one year. In March
2015, the Companys overseas subsidiary, Tata Chemicals
International Pte Ltd reduced interest costs by re-pricing
its existing US$ 200 million loan, with existing lenders. The
re-pricing takes effect during FY 2015-16.
As on 31st March 2015, the Company had the following
credit ratings: A Corporate Family Rating of Ba1/Stable from
Moodys Investors Service and a Foreign Currency LongTerm Issuer Default Rating (IDR) of BB+ with Stable outlook
from Fitch Ratings. The Companys INR denominated NonConvertible Debentures of ` 250 crore are rated at AA+ and
BWR AA+ (Stable) by CARE Ratings and Brickwork Ratings,
respectively. The Companys long term bank facilities (i.e.
fund based working capital facilities) of ` 765 crore and short
term bank facilities of ` 3,580 crore are rated at AA+ and A1+,
respectively, by CARE Ratings. Further, the Companys short
term debt programme of ` 100 crore is rated at A1+ by CRISIL
Ratings.
RELATED PARTY TRANSACTIONS
All related party transactions entered into during the
financial year were on an arms length basis, in the ordinary
course of business and were in compliance with the applicable
provisions of the Act and the Listing Agreement. There were
no materially significant related party transactions made
by the Company during the year that would have required
members approval under Clause 49 of the Listing Agreement.
The policy on materiality of related party transactions and
dealing with related party transactions as approved by the
Board has been adopted by the Company and uploaded
34
Annual Report FY2014-15
STATUTORY REPORTS
Nature of Transaction
1.
2.
3.
(` in crore)
9.00
13.36
9.38
The details of guarantees provided during the year are given hereunder
Sr. No. Nature of Transaction
(` in crore)
1.
440.94
2.
28.41
Details of loans, guarantees and investments covered under the provisions of Section 186 of the Companies Act, 2013 (the Act)
are given in the notes to the financial statements.
35
Annual Report FY2014-15
BOARDS REPORT
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements of the Company and
its subsidiaries, prepared in accordance with Accounting
Standard 21 issued by the Institute of Chartered Accountants
of India, form part of the Annual Report and are reflected
in the consolidated financial statements of the Company.
A statement containing the salient features of the financial
statements of the subsidiary companies is attached to the
financial statements in Form AOC-1.
Pursuant to the provisions of Section 136 of the Act, the
financial statements of the Company, consolidated financial
statements along with relevant documents and separate
audited accounts in respect of subsidiaries, are available on
the website of the Company.
The annual accounts of the subsidiaries and related detailed
information will be kept at the registered office of the
Company, as also at the registered offices of the respective
subsidiary companies and will be available to investors
seeking information at any time.
SUBSIDIARY COMPANIES,
ASSOCIATE COMPANIES
JOINT
VENTURES
AND
z
z
z
36
Annual Report FY2014-15
STATUTORY REPORTS
Governance Guidelines
The Company has adopted governance guidelines on Board
effectiveness. The governance guidelines cover aspects
related to composition and role of the Board, Chairman
and Directors, Board diversity, definition of independence,
Directors term, retirement age and committees of the Board.
It also covers aspects relating to nomination, appointment,
induction and development of Directors, Director
remuneration, subsidiary oversight, Code of Conduct, Board
Effectiveness Review and mandates of Board committees.
Procedure for Nomination and Appointment of Directors
The Nomination and Remuneration Committee (NRC) is
entrusted with the responsibility for developing competency
requirements for the Board based on the industry and the
strategy of the Company. The Board composition analysis
reflects in-depth understanding of the Company, including
its strategies, environment, operations, financial condition
and compliance requirements.
NRC makes recommendations to the Board in relation to the
appointment of new directors. NRC conducts a gap analysis
to refresh the Board on a periodic basis, including each time
a Directors appointment or re-appointment is required. NRC
is also responsible for reviewing the profiles of potential
candidates vis--vis the required competencies and meeting
potential candidates, prior to making recommendations of
their nomination to the Board. At the time of appointment,
specific requirements for the position, including expert
knowledge expected, is communicated to the appointee.
Criteria for Determining Qualifications,
Attributes and Independence of a Director
Positive
BOARDS REPORT
Accordingly, pursuant to Section 134(5) of the Act, the Board
of Directors, to the best of their knowledge and ability,
confirm that:
(a)
(b)
(c)
(d)
(e)
(f )
STATUTORY REPORTS
iii.
Secretarial audit
iv.
In terms of Section 204 of the Act and Rules made there
under, M/s. Parikh & Associates, Practicing Company
Secretaries, have been appointed secretarial auditors
of the Company. The report of the secretarial auditors
is annexed as Annexure 6 to this Report. The report
is self-explanatory and does not call for any further
comments.
DISCLOSURES
i.
ii.
Fixed Deposits
The Company has not accepted the deposits from the
public falling in the ambit of Section 73 of the Act and
The Companies (Acceptance of Deposits) Rules, 2014.
39
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 1
Annual Report on CSR Activities
[Pursuant to Section 135 of the Act & Rules made thereunder]
A.
CSR Report:
1.
2.
1.
2.
3.
4.
3.
Average net profit of the Company for last ` 583.01 crore (as per Section 198 of the Companies Act, 2013)
three financial years
4.
5.
` 1.46 crore
c. Manner in which the amount spent The manner in which the amount is spent is detailed in Part B to this
during the financial year is detailed Annexure.
below
6.
7.
A responsibility statement of the The implementation and monitoring of CSR Policy, is in compliance
Committee that the implementation and with CSR objectives and policy of the Company.
monitoring of CSR Policy, is in compliance
with CSR objectives and policy of the
Company.
40
Annual Report FY2014-15
STATUTORY REPORTS
B.
Sl.
No
1.
Poverty alleviation
programmes
3.
Infrastructure support
programme
4.
5.
6.
7.
Natural Resource
Management and Dharti
Ko arpan
Sector in which
the Project is
covered
Projects or programs
Promotion and
development
of traditional
handicrafts
Poverty
alleviation,
livelihood
enhancement
and infrastructure
support
Education and
vocational skill
development
Amount
Outlay
(budget)
project or
programme
wise
Amount spent
on projects
(` In Lakh)
65.27
1. Direct
expenditure
on project
2. Overheads
(` In Lakh)
70.66
142.69
115.23
101.42
82.36
82.36
284.23
185.15
185.15
Direct:
Environmental
sustainability
Health care,
nutrition,
sanitation and
safe drinking
water
284.61
207.46
207.46
225.52
209.19
209.19
Implementation Agencies
External:
Innovation
technology
25.00
9.
Jammu and
Kashmir flood
Relief
10.00
15.32
15.32
R. Mukundan
Managing Director
8.
TOTAL
Inclusive
growth and
empowerment
Administration and
miscellaneous expenses
Tata Chemicals
Implementation Agencies
Internal:
10.
135.48
76.31
76.31
z
z
z
50.00
57.83
57.83
1,324.22
1,019.51
1,019.51
Government agencies
Local Panchayats
NGOs Community
based organisation
Skill development
agencies
Environment
Conservation Groups
Other Resource
agencies
Prasad R. Menon
Chairman-CSR, Safety and Sustainability Committee
BOARDS REPORT
ANNEXURE 2
Criteria for Determining Qualifications, Positive Attributes and Independence of Directors
1.
Definition of Independence
(iii)
(iv)
(v)
(f )
(c)
(d)
(e)
(i)
2.
Qualifications of Directors
z
1 Tata Company shall mean every company in which Tata Sons Limited or Tata Industries Limited or any company promoted by Tata Sons Limited or Tata Industries Limited
is promoter or a company in which such companies whether singly or collectively hold directly or indirectly 26% or more of the paid-up equity share capital OR in which the
shareholding of such companies represents the largest Indian holding apart from holdings of financial institutions/ mutual funds OR a company which is permitted by Tata
Sons Limited to use the Tata brand name.
42
Annual Report FY2014-15
STATUTORY REPORTS
3.
uphold
probity;
2)
3)
4)
5)
6)
7)
8)
9)
2)
3)
4)
5)
6)
while
CYRUS P. MISTRY
Chairman
43
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 3
Remuneration Policy for Directors, Key Managerial Personnel and Other Employees
The philosophy for remuneration of directors, Key Managerial
Personnel (KMP) and all other employees of Tata Chemicals
Limited (Company) is based on the commitment of
fostering a culture of leadership with trust. The remuneration
policy is aligned to this philosophy.
This remuneration policy has been prepared pursuant to
the provisions of Section 178(3) of the Companies Act, 2013
(Act) and Clause 49(IV)(B)(1) of the Equity Listing Agreement
(Listing Agreement). In case of any inconsistency between
the provisions of law and this remuneration policy, the
provisions of the law shall prevail and the company shall
abide by the applicable law. While formulating this policy,
the Nomination and Remuneration Committee (NRC) has
considered the factors laid down under Section 178(4) of the
Act, which are as under:
(a)
(b)
(c)
be
1 Excludes employees covered by any long term settlements or specific term contracts. The remuneration for these employees would be driven by the respective long term
settlements or contracts.
44
Annual Report FY2014-15
STATUTORY REPORTS
a)
b)
Policy implementation
The NRC is responsible for recommending the
remuneration policy to the Board. The Board
is responsible for approving and overseeing
implementation of the remuneration policy.
CYRUS P. MISTRY
Chairman
45
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 4
Conservation of Energy and Technology Absorption
(A)
CONSERVATION OF ENERGY
(i)
(ii)
(iii)
Optimisation of tailing waste usage in clinkerisation process to reduce specific heat consumption in cement plant.
Up gradation of kiln gas analysers to maintain optimum oxygen levels in cement plant.
Installation of thermascope (burning zone camera) to improve clinker quality and optimise fuel consumption.
z Upgradation
z Upgradation
Installation of the flash vessel to generate low pressure steam from the heat recovery steam generation blow
down
Energy saver devices were installed in Complex Phosphatic Fertiliser (CPF) warehouse and SSP bagging lighting
circuits
Solar lighting
Description
1.
1.15
2.
0.86
3.
0.65
7.61
Total
(B)
Investment
10.27
TECHNOLOGY ABSORPTION
(i)
Commissioning of 3 TPD Sulphate of Potash (SOP) test bed pilot plant in progress.
Existing Supervisory Control and Data Acquisition (SCADA) further optimised to hook up with field Programmable
Logic Controller (PLC) for centralised monitoring of process parameters and generating reports.
Existing resin columns and resin (both cationic and anionic) are replaced with columns of different design and
different grade of resins to improve the performance of resin treatment section and to improve product quality.
46
Annual Report FY2014-15
STATUTORY REPORTS
(ii)
(iii)
(iv)
Benefits derived like product improvement, cost reduction, product development or import substitution:
z
Data generation for process scale up and commercial plant feasibility evaluation for the production of SOP from
sea bitterns.
R&D efforts to attain objectives of cost reduction, energy conservation, waste minimisation / recycling and
reuse, developing processes for value added products and reduction in carbon footprints for environmental
improvement.
Centralised monitoring of the processes in SCADA, generation of reports from the system and root cause analysis
of the process problems.
Arresting the drop in purity of the product during the resin treatment, elimination in reprocessing of material
because of effective ionic impurity removal.
In case of imported technology (imported during the last three years reckoned from the beginning of the
financial year):
(a)
Dry bromine
Salt harvester by
technology-De Dietrich M/s Viemka Greece
(b)
2013
2014
(c)
Yes
Yes
(d)
NA
2013-14
Capital expenditure
51.07
0.80
Revenue expenditure
21.55
17.42
72.62
18.22
0.72%
0.21%
1.
2.
2014-15
2013-14
104.00
71.71
4,168.82
2,992.24
CYRUS P. MISTRY
Chairman
47
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 5
Disclosure of Managerial Remuneration
A.
Ratio of remuneration of each Director to the median remuneration of the employees of the Company for the
FY 2014-15 as well as the percentage increase in remuneration of each Director, Chief Financial Officer (CFO) and
Company Secretary is as under:
Name of Director
Non-Executive Directors
Mr. Cyrus P. Mistry
Mr. R. Gopalakrishnan
Mr. Nusli N. Wadia
Mr. Prasad R. Menon
Mr. Nasser Munjee
Mr. E. A. Kshirsagar
Dr. Y. S. P. Thorat
Dr. Vijay L. Kelkar (Resigned w.e.f. 1st April, 2015)
Ms. Vibha Paul Rishi (Appointed w.e.f 1st September, 2014)
Executive Directors
Mr. R. Mukundan, Managing Director
Mr. P. K. Ghose, Executive Director and CFO
Ratio to median
remuneration
% change in remuneration
over previous year
0.58:1
12.75:1
7.83:1
6.12:1
11.66:1
8.87:1
9.37:1
2.75:1
2.75:1
16.67
21.43
57.98
No change
20.69
50.00
136.22
(12)
N.A.
82.72:1
65.17:1
14.61
19.74
Note : Remuneration includes sitting fees and commission. Commission relates to the financial year ended 31st March, 2015, which will
be paid during FY 2015-16.
The percentage increase in remuneration of Mr. Rajiv Chandan, General Counsel & Company Secretary is 13.33%.
B.
C.
Number of permanent employees on the rolls of the Company as on 31st March, 2015: 3,067
D.
Explanation on the relationship between average increase in remuneration and Company performance:
The alignment between the performance of the Company and employee remuneration is built into the design of
the compensation and reward policies. The Companys compensation philosophy is based on the principle of Pay for
Performance while maintaining internal equity and external parity. In the design of the Companys Performance
Management System (PMS), the business goals set in the beginning of the year are cascaded from the Companys strategic
objectives and further deployed to the individuals as Key Result Areas for the year. Post the completion of the annual
appraisal process, the final performance grade is used as an input to compute the annual compensation revision as well as
performance pay applicable to the individual. The salary increases are a function of market competitiveness in the relevant
sector, as well as the Companys overall business strategy and affordability. The Performance Pay Scheme for Officers and
above has different weightages appropriately assigned to the Company, SBU / Function and individual performance factors
across varying levels reflecting the role and responsibilities.
E.
Comparison of the remuneration of the Key Managerial Personnel against the performance of the Company:
Aggregate remuneration of Key Managerial Personnel (KMP) in FY 2014-15 (` crore)
Revenue (` crore)
Remuneration of KMPs (as % of revenue)
Profit before Tax (PBT) (` crore)
Remuneration of KMP (as % of PBT)
F.
7.96
10,082
0.079
854
0.932
48
Annual Report FY2014-15
% Change
54.4
6.17
STATUTORY REPORTS
Percentage increase or decrease in the market quotations of the shares of the Company in comparision to the rate
at which the Company came out with the last public offer in case of listed companies:
The last public issue was in 1990 by way of Partly Convertible Debentures (PCD) which were converted into ordinary shares
of ` 10 each at a premium of ` 40, aggregating ` 50 per ordinary shares, in FY 1993-94. The Company had issued bonus
shares to its members in the ratio 3:5 in the FY 1995-96. Accordingly, the share price per ordinary shares is adjusted post
bonus issue. The closing market price of the ordinary shares of the Company as on 31st March, 2015 on the National Stock
Exchange of India Limited was ` 443.55 per share of face value of ` 10/- each, representing an increase of 1,319% over the
period.
G.
Comparison of average percentile increase in salary of employees other than the managerial personnel and the
percentile increase in the managerial remuneration:
% change in remuneration
H.
10.89
16.81
Comparison of each remuneration of the key managerial personnel against the performance of the Company:
Mr. R. Mukundan
Managing Director
Remuneration in FY 2014-15 (` crore)
Revenue (` crore)
Remuneration of each KMP as % of Total Revenue
Profit Before Tax (` crore)
Remuneration of each KMP as a % of PBT
I.
3.97
0.039
0.464
Mr. P. K. Ghose
Executive Director
& CFO
3.13
10,082
0.031
854
0.367
Key parameters for the variable component of remuneration availed by the Directors:
Remuneration paid to Non-Executive Directors:
The variable component of Non-Executive Directors remuneration consists of commission. The distribution of commission
among the Non-Executive Directors is recommended by the Nomination and Remuneration Committee (NRC) and approved
by the Board. The NRC will recommend to the Board the quantum of commission for each Director based on the outcome of
the evaluation process which is driven by various factors including attendance and time spent in the Board and Committee
meetings, role and responsibility as Chairman/member of the Board/Committee, individual contributions at the meetings
and contributions made by Directors other than in meetings.
Commission to the Managing Director and Executive Director & CFO:
The NRC evaluates the performance of the Managing Director and Executive Director & CFO by setting their Key Performance
Objectives at the beginning of each financial year. The NRC recommends to the Board the compensation of the Managing
Director and Executive Director & CFO based on their performance during the year vis--vis the Key Performance Objectives.
The NRC ensures that the overall compensation package is in accordance with applicable laws, in line with the Companys
objectives, shareholders interests, industry standards and have an adequate balance between fixed and variable component.
J.
The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive
remuneration in excess of the highest paid director during the year.
No employee of the Company receives remuneration in excess of the highest paid director of the Company.
K.
Affirmation:
It is affirmed that the remuneration paid to the Directors, Key Managerial Personnel and other employees is as per the
Remuneration Policy of the Company.
On behalf of the Board of Directors
CYRUS P. MISTRY
Chairman
49
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 6
(v)
The Companies Act, 2013 (the Act) and the rules made
there under;
(ii)
(iii)
(iv)
50
Annual Report FY2014-15
(vi)
STATUTORY REPORTS
Jigyasa N. Ved
Partner
FCS No: 6488 CP No: 6018
Annexure A
To,
The Members,
TATA CHEMICALS LIMITED
4.
5.
6.
2.
We
have
not
verified
the
correctness
and
Place : Mumbai
Date : 27th May, 2015
Jigyasa N. Ved
Partner
FCS No: 6488 CP No: 6018
51
Annual Report FY2014-15
BOARDS REPORT
ANNEXURE 7
Extract of Annual Return
Form No. MGT-9
as on the financial year ended on 31st March, 2015
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I.
i)
ii)
iii)
iv)
v)
CIN
Registration Date
Name of the Company
Category / Sub-Category of the Company
$GGUHVVRIWKH5HJLVWHUHG2IFHDQGFRQWDFWGHWDLOV
vi)
vii)
II.
III.
IV.
i)
ii)
iii)
iv)
v)
V.
L24239MH1939PLC002893
23rd January,1939
TATA CHEMICALS LIMITED
Public Company/ Limited by shares
Bombay House
24, Homi Mody Street, Fort
Mumbai 400 001
Telephone: + 91 22 6665 8282
Fax: +91 22 6665 8144
website: www.tatachemicals.com
Yes
TSR Darashaw Limited
Unit: Tata Chemicals Limited
6 10 Haji Moosa Patrawala Industrial Estate
20 Dr. E Moses Road
Near Famous Studio
Mahalaxmi
Mumbai 400 011
Telephone: +91 22 6656 8484
Fax: +91 22 6656 8494
email: [email protected]
website: www.tsrdarashaw.com
Annexure A
Annexure B
Category-wise Shareholding
Shareholding of Promoters
Change in Promoters Shareholding (please specify, if there is no change)
Shareholding Pattern of top ten Shareholders (other than Directors,
Promoters and Holders of GDRs and ADRs)
Shareholding of Directors and Key Managerial Personnel
Annexure C
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but
not due for payment
VI.
A.
B.
C.
VII.
52
Annual Report FY2014-15
Annexure D
Annexure E
Annexure F
STATUTORY REPORTS
Annexure A
II.
% to total turnover
of the Company
1.
Urea
20121
22%
2.
20123
15%
3.
Soda Ash
20122
15%
4.
20129
14%
5.
08932
11%
Annexure B
III.
CIN/GLN
Holding/
Subsidiary/
Associate
% of
Shares
Held
Applicable
Section
1.
L36992MH1948PLC014083
Subsidiary
50.06%
2(87)(ii)
2.
Not applicable
Subsidiary
100%
2(87)(ii)
3.
Not applicable
Subsidiary
100%
2(87)(ii)
4.
Not applicable
Subsidiary
100%
2(87)(ii)
5.
Not applicable
Subsidiary
100%
2(87)(ii)
6.
Not applicable
Subsidiary
100%
2(87)(ii)
7.
Not applicable
Subsidiary
100%
2(87)(ii)
8.
Homefield 2 UK Limited
Mond House, Winnington, CW8 4DT
Not applicable
Subsidiary
100%
2(87)(ii)
9.
Not applicable
Subsidiary
100%
2(87)(ii)
10.
Not applicable
Subsidiary
100%
2(87)(ii)
11.
Not applicable
Subsidiary
100%
2(87)(ii)
12.
Not applicable
Subsidiary
100%
2(87)(ii)
13.
Not applicable
Subsidiary
100%
2(87)(ii)
14.
Not applicable
Subsidiary
100%
2(87)(ii)
53
Annual Report FY2014-15
BOARDS REPORT
Sl.
No.
CIN/GLN
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
54
Annual Report FY2014-15
% of
Shares
Held
100%
Applicable
Section
Not applicable
Holding/
Subsidiary/
Associate
Subsidiary
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
75%
2(87)(ii)
Not applicable
Subsidiary
75%
2(87)(ii)
2(87)(ii)
STATUTORY REPORTS
Sl.
No.
CIN/GLN
34.
35.
36.
37.
38.
39.
40
41.
42.
43.
44.
45.
46.
47.
% of
Shares
Held
75%
Applicable
Section
Not applicable
Holding/
Subsidiary/
Associate
Subsidiary
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
100%
2(87)(ii)
Not applicable
Subsidiary
95%
2(87)(ii)
U74990MH2009PLC193869
Subsidiary
100%
2(87)(ii)
U73100KA2000PLC028246
Subsidiary
80.51%
2(87)(ii)
U01400PN2011PLC141307
Subsidiary
73.59%
2(87)(ii)
Not applicable
Joint Venture
33.33%
2(6)
Not applicable
Joint Venture
50%
2(6)
Not applicable
Joint Venture
33.78%
2(6)
Not applicable
Joint Venture
50%
2(6)
Not applicable
Joint Venture
33.3%
2(6)
Not applicable
Associate
25.33%
2(6)
a general partnership formed under the laws of the State of Delaware (USA).
**
&
New Cheshire Salt Works Limited, subsidiary of the Company is holding 50%
2(87)(ii)
55
Annual Report FY2014-15
BOARDS REPORT
Annexure C
IV.
(i)
Category-wise Shareholding
Category
code
(I)
Category of Shareholder
(II)
(A)
%
Change
during
the
year
(1)
Indian
(a)
(b)
Central Government
(c)
State Governments(s)
(d)
Bodies Corporate
7,87,51,492
200
7,87,51,692
30.91
7,85,51,492
200
7,85,51,692
30.83
(0.08)
(e)
(f )
3,74,165
3,74,165
0.15
3,74,165
3,74,165
0.15
7,91,25,657
200
7,91,25,857
31.06
7,89,25,657
200
7,89,25,857
30.98
(0.08)
-
- Trust
Sub-Total (A) (1)
(2)
Foreign
(a)
NRIs - Individuals
(b)
Other Individuals
(c)
Bodies Corporate
(d)
(e)
(f )
7,91,25,657
200
7,91,25,857
31.06
7,89,25,657
200
7,89,25,857
30.98
(0.08)
1,13,52,127
3,214
1,13,55,341
4.46
2,84,99,468
3,194
2,85,02,662
11.19
6.73
7,52,402
83,462
8,35,864
0.33
4,40,059
83,355
5,23,414
0.20
(0.13)
Public Shareholding
(1)
Institutions
(a)
Mutual Funds
(b)
(c)
Central Government
2,000
2,000
4,32,492
4,32,492
0.17
0.17
(d)
State Governments(s)
71,598
71,598
0.03
71,598
71,598
0.03
(e)
(f )
Insurance Companies
4,46,37,087
402
4,46,37,489
17.52
3,73,55,283
402
3,73,55,685
14.66
(2.86)
(g)
5,56,67,697
2,600
5,56,70,297
21.85
4,78,10,403
2,600
4,78,13,003
18.77
(3.08)
(h)
(i)
556
556
556
556
3,84,572
3,84,572
0.15
6,290
6,290
(0.15)
- Foreign Nationals DR
- Foreign Companies / OCBs
- Qualified Foreign Investor
53,04,532
53,04,532
2.08
2.08
11,27,96,441
1,61,276
11,29,57,717
44.34
11,98,49,083
1,61,149
12,00,10,232
47.10
2.76
80,73,093
7,84,29
81,51,522
3.20
37,37,291
75,600
38,12,891
1.50
(1.70)
Non-Institutions
Bodies Corporate
Indian
ii
Overseas
(b)
Individuals -
4,00,81,832
79,87,655
4,80,69,487
18.87
3,81,29,038
76,34,283
4,57,63,321
17.97
(0.90)
ii
52,94,401
2,86,613
55,81,014
2.19
49,47,270
2,86,613
52,33,883
2.05
(0.14)
(c)
- Trust
8,70,322
209
8,70,531
0.34
10,09,885
209
10,10,094
0.40
150
150
5,43,19,798
83,52,906
6,26,72,704
24.60
4,78,23,484
79,96,705
5,58,20,189
21.92
(2.68)
16,71,16,239
85,14,182
17,56,30,421
68.94
16,76,72,567
81,57,854
17,58,30,421
69.02
0.08
TOTAL (A)+(B)
24,62,41,896
85,14,382
25,47,56,278
100.00
24,65,98,224
81,58,054
25,47,56,278
100.00
(C)
Public
24,62,41,896
85,14,382
25,47,56,278
100.00
24,65,98,224
81,58,054
25,47,56,278
100.00
56
Annual Report FY2014-15
STATUTORY REPORTS
(ii)
Shareholders Name
% of total
Shares of the
Company
% of Shares
Pledged /
encumbered
to total shares
No. of Shares
% of total
Shares
of the
Company
% of Shares
Pledged /
encumbered
to total shares
% Change in
shareholding
during the
year
4,93,06,423
19.35
4,93,06,423
19.35
1,57,53,501
6.18
1,55,53,501
6.11
(0.08)
1,11,85,522
4.39
1.46
1,11,85,522
4.39
1.46
13,69,290
0.54
13,69,290
0.54
6,18,000
0.24
6,18,000
0.24
2,59,425
0.10
2,59,425
0.10
Voltas Limited*
2,00,440
0.08
2,00,440
0.08
1,60,000
0.06
1,60,000
0.06
77,647
0.03
77,647
0.03
10
70,249
0.03
70,249
0.03
11
68,041
0.03
68,041
0.03
12
J R D Tata Trust*
46,699
0.02
46,699
0.02
13
10,060
10,060
14
560
560
7,91,25,857
31.06
1.46
7,89,25,857
30.98
1.46
(0.08)
TOTAL
* Part of Promoter Group
(iii)
Change in Promoters (including Promoter Group) SHAREHOLDING (please specify, if there is no change)
Sl
No.
Shareholding at the
beginning of the year
(as on 01-Apr-2014)
No. of
Shares
1.
2.
3.
4.
5.
6.
7.
4,93,06,423
1,57,53,501
1,11,85,522
13,69,290
6,18,000
2,59,425
Voltas Limited*
2,00,440
Date
Reason
% of total
Shares
of the
Company
No. of
Shares
19.35 01-Apr-2014
6.18
4.39
0.54
0.24
0.10
0.08
Increase/Decrease in
Shareholding
Cumulative
Shareholding during
the year
% of total
Shares
of the
Company
No. of
Shares
% of total
Shares
of the
Company
No change
4,93,06,423
19.35
31-Mar-2015
4,93,06,423
19.35
12-Dec-2014
Increase
1,25,000
0.04
1,58,78,501
6.22
12-Dec-2014
Decrease
(2,00,000)
(0.07)
1,56,78,501
6.15
31-Mar-2015
Decrease
(1,25,000)
(0.04)
1,55,53,501
6.11
31-Mar-2015
1,55,53,501
6.11
4.39
01-Apr-2014 No change
1,11,85,522
31-Mar-2015
1,11,85,522
4.39
01-Apr-2014 No change
13,69,290
0.54
31-Mar-2015
13,69,290
0.54
01-Apr-2014 No change
6,18,000
0.24
31-Mar-2015
6,18,000
0.24
01-Apr-2014 No change
2,59,425
0.10
31-Mar-2015
2,59,425
0.10
01-Apr-2014 No change
2,00,440
0.08
31-Mar-2015
2,00,440
0.08
57
Annual Report FY2014-15
BOARDS REPORT
Sl
No.
Shareholding at the
beginning of the year
(as on 01-Apr-2014)
No. of
Shares
Date
1,60,000
% of total
Shares
of the
Company
0.06
77,647
0.03
10.
70,249
0.03
11.
68,041
0.03
12.
J R D Tata Trust*
46,699
0.02
8.
9.
13.
14
Titan Industries*
10,060
560
Reason
Increase/Decrease in
Shareholding
No. of
Shares
Cumulative
Shareholding during
the year
01-Apr-2014
31-Mar-2015
01-Apr-2014
31-Mar-2015
01-Apr-2014
31-Mar-2015
01-Apr-2014
31-Mar-2015
01-Apr-2014
No Change
At the end of the year
No Change
At the end of the year
No Change
At the end of the year
No Change
At the end of the year
No Change
% of total
Shares
of the
Company
-
31-Mar-2015
01-Apr-2014
31-Mar-2015
01-Apr-2014
31-Mar-2015
No. of
Shares
1,60,000
1,60,000
77,647
77,647
70,249
70,249
68,041
68,041
46,699
% of total
Shares
of the
Company
0.06
0.06
0.03
0.03
0.03
0.03
0.03
0.03
0.02
46,699
10,060
10,060
560
560
0.02
-
(iv)
Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)
Sl. Name of Shareholders
No.
1.
2.
3.
4.
58
Annual Report FY2014-15
Shareholding at the
beginning of the year
(as on 01-Apr-2014)
No. of shares
% of total
shares of the
Company
Cumulative Shareholding
during the year
No. of shares
% of total
shares of the
Company
1,61,51,552
289
(88,54,879)
72,96,962
6.34
(3.48)
2.86
1,61,51,552
1,61,51,841
72,96,962
72,96,962
6.34
6.34
2.86
2.86
1,15,49,553
95,67,700
(1,17,19,291)
93,97,962
4.53
3.76
(4.60)
3.69
1,15,49,553
2,11,17,253
93,97,962
93,97,962
4.53
8.29
3.69
3.69
1,14,42,087
14,42,444
(2,00,090)
1,26,84,441
4.49
0.57
(0.08)
4.98
1,14,42,087
1,28,84,531
1,26,84,441
1,26,84,441
4.49
5.06
4.98
4.98
1,03,24,196
1,16,919
(33,419)
1,04,07,696
4.05
0.05
(0.01)
4.09
1,03,24,196
1,04,41,115
1,04,07,696
1,04,07,696
4.05
4.10
4.09
4.09
STATUTORY REPORTS
5.
52,52,987
2.06
52,52,987
2.06
(2,75,000)
(0.11)
49,77,987
1.95
49,77,987
1.95
49,77,987
1.95
46,68,640
1.83
46,68,640
1.83
4,88,140
0.19
51,56,780
2.02
(1,47,747)
(0.06)
50,09,033
1.96
50,09,033
1.96
50,09,033
1.96
44,00,005
1.73
44,00,005
1.73
44,00,005
1.73
(3,00,000)
(0.12)
41,00,005
1.61
41,00,005
1.61
41,00,005
1.61
42,50,834
1.67
42,50,834
1.67
42,50,834
1.67
(2,92,500)
(0.11)
39,58,334
1.56
39,58,334
1.56
39,58,334
1.56
38,33,619
1.50
38,33,619
1.50
38,33,619
1.50
(38,33,619)
(1.50)
32,26,927
1.27
32,26,927
1.27
28,07,736
1.10
60,34,663
2.37
(10,70,114)
(0.42)
49,64,549
1.95
49,64,549
1.95
49,64,549
1.95
9.
10.
% of total
shares of the
Company
2.06
8.
No. of shares
52,52,987
7.
Cumulative Shareholding
during the year
6.
Shareholding at the
beginning of the year
(as on 01-Apr-2014)
No. of shares
% of total
shares of the
Company
Note:
1. The above information is based on the weekly beneficiary position received from the Depositories.
2. The date wise increase / decrease in Shareholding of the top ten Shareholders is available on the website of the Company
www.tatachemicals.com.
59
Annual Report FY2014-15
BOARDS REPORT
(v)
1.
2.
3.
Cumulative shareholding
during the year
No. of Shares
% of total
shares of
the Company
16,000
16,000
0.01
0.01
16,000
16,000
0.01
0.01
15,000
15,000
0.01
0.01
15,000
15,000
0.01
0.01
500
500
500
500
Note:
1. Mr. Nusli N. Wadia, Mr. Prasad R. Menon, Mr. Nasser Munjee, Mr. Eknath A. Kshirsagar, Dr. Y. S. P. Thorat, Dr. Vijay Kelkar, Ms. Vibha Paul Rishi
and Mr. P. K. Ghose did not hold any shares of the Company during the FY 2014-15.
2. Mr. Rajiv Chandan, General Counsel & Company Secretary, who is the Key Managerial Personnel, did not hold any shares of the Company
during the FY 2014-15.
Annexure D
V.
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans
excluding
deposits
Unsecured
Loans
(` in crore)
Deposits
Total
Indebtedness
385.19
385.19
2,649.50
51.36
2,700.86
3,034.69
51.36
3,086.05
420.23
594.52
(174.29)
1,469.50
1,586.62
(117.12)
1,889.73
2,181.14
(291.41)
210.87
0.03
210.90
2,505.01
78.73
2,583.74
2,715.88
78.76
2,794.64
60
Annual Report FY2014-15
STATUTORY REPORTS
Annexure E
VI.
A.
Particulars of Remuneration
Mr. R. Mukundan
Managing
Director
1.
Gross Salary
(a) Salary as per provisions contained in Section 17(1) of the Income
Tax Act, 1961
(`)
Total
Amount
Mr. P. K. Ghose
Executive
Director & CFO
1,87,28,065
92,89,929
2,80,17,994
1,20,212
NIL
NIL
NIL
13,19,372
NIL
NIL
NIL
14,39,584
NIL
NIL
NIL
2,00,00,000*
-
2,00,00,000*
-
4,00,00,000*
Total (A)
3,88,48,277
3,06,09,301
Ceiling as per the Act (@ 10% of the net profits of the Company calculated as per Section 198 of the Companies Act,
2013- in crore)
6,94,57,578
87.27
2.
3.
4.
5.
(b) Value of perquisites under Section 17(2) Income Tax Act, 1961
(c) Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify.(Performance based)
Others, please specify
* Commission relates to the financial year ended 31st March 2015, which will be paid during FY 2015-16.
B.
1.
Independent Directors
(`)
Sl.
No.
Particulars
Commission***
(for the FY 2014-15
payable in
FY 2015-16)
Others, please
specify
I
Independent Directors
1. Mr. Nusli N Wadia
2,60,000
35,00,000
2. Mr. Nasser Munjee
4,00,000
52,00,000
3. Mr. E. A. Kshirsagar
3,60,000
39,00,000
4. Dr. Y. S. P. Thorat
4,00,000
41,00,000
5. Dr. Vijay Kelkar*
1,20,000
12,00,000
6. Ms. Vibha Paul Rishi**
1,20,000
12,00,000
Total (I)
16,60,000
1,91,00,000
II
Other Non Executive Directors
1. Mr. Cyrus P Mistry
2,80,000
****
2. Mr. R. Gopalakrishnan
4,20,000
57,00,000
3. Mr. Prasad R Menon
2,40,000
27,00,000
Total (II)
9,40,000
84,00,000
Total (B)= (I+II)
26,00,000
2,75,00,000
Total Managerial Remuneration
Ceiling as per the Act (@ 1% of the net profits of the Company calculated as per Section 198 of the Companies Act,
2013-in crore)
Total
Amount
37,60,000
56,00,000
42,60,000
45,00,000
13,20,000
13,20,000
2,07,60,000
2,80,000
61,20,000
29,40,000
93,40,000
3,01,00,000
8.73
*
**
***
61
Annual Report FY2014-15
BOARDS REPORT
C.
Particulars of Remuneration
Gross Salary
(a)
Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961
(b)
(c)
Profits in lieu of salary under Section 17(3) Income Tax Act, 1961
80,31,926
2,48,000
NIL
Stock Options
NIL
Sweat Equity
NIL
Commission
N.A.
5.
- as % of profit
- others, specify.
Total
82,79,926
Annexure F
VII.
Type
A.
Section of the
Companies Act
Brief
Description
Details of Penalty
/ Punishment/
Compounding
fees imposed
Authority [RD/
NCLT/ COURT]
Appeal made, if
any (give Details)
COMPANY
Penalty
Punishment
None
Compounding
B.
DIRECTORS
Penalty
Punishment
None
Compounding
C.
None
Compounding
62
Annual Report FY2014-15
CYRUS P. MISTRY
Chairman
STATUTORY REPORTS
BUSINESS ENVIRONMENT
1.1
Global
All major advanced economies are expected to show
improved growth in 2015 and 2016. However, the
global economy is still struggling to gain momentum.
As per the International Monetary Fund, the global
economy grew by 3.4% in 2014 and is expected to
grow only marginally higher at 3.5% in 2015 and to
touch 3.8% in 2016.
Growth in major emerging and developing economies
(except India) is projected to be lower, primarily
reflecting weaker prospects for some large emerging
market economies and oil-exporting countries.
Emerging market and developing economies still
accounted for 70% of world growth in 2014.
The decline in global crude oil prices will boost growth
only to a certain extent. The fall in oil prices will mainly
benefit oil importing developing economies and
provide some of them, a window to push structural
reforms.
The United States is on an improving growth trajectory,
with lower inflation and declining unemployment,
which is expected to more than offset reduced net
exports caused by dollar appreciation. Moreover,
accommodative monetary policy and lower oil prices
will boost domestic consumption demand. Growth is
projected to be 3.1% in 2015 and 2016.
In the Euro area, a massive monetary expansion is being
undertaken to reverse the deteriorating economic
conditions and deflationary pressures. With lower oil
prices, lower interest rates and Euro depreciation, the
outlook for growth is moderate, along with subdued
inflation. Growth is expected to increase from 0.9% in
2014 to 1.5% in 2015. However, political tensions in
Greece and uncertainty around its continuation in the
Eurozone remain a concern.
Chinas growth in the Financial Year (FY) 2015-16 will
be affected by slower growth of exports and shift in
the focus of domestic growth from an investment to
a consumption oriented economy. As a result China,
which grew at 7.4% in 2014 (its slowest rate in 24
years), has set its GDP growth for 2015 at about 7%.
Chinas slower growth will have repercussions on
growth prospects of emerging Asian countries. Chinas
flooding of Asian markets, including that of India with
metals (steel), chemicals and electronic items is an
area of concern.
1.2
Domestic
The Indian economy is slowly recovering, its high fiscal
and current account seem to be under control. The
GDP growth rate for FY 2014-15 (based on the new
series) is 7.3%. GDP growth increased to 7.5% in Q4
FY 2014-15, compared to 6.6% in Q3 FY 2014-15. The
Reserve Bank of India (RBI) excepts GDP to grow by
7.6% in FY 2015-16.
FY 2014-15 saw a decline in both wholesale and
retail inflation with an average Wholesale Price Index
(WPI) of 2.06% in FY 2014-15 (FY 2013-14: 5.98%) and
an average Consumer Price Index (CPI) at 6.43% in
FY 2014-15 (FY 2013-14: 9.5%) in April-March 2015.
Food price inflation has also reduced. The sharp
reduction in international oil prices also eased the
pressure on inflation as well as fiscal deficit.
The Central Government projects that India will reach
the fiscal deficit target of 4.1% in FY 2014-15 and 3.9%
in FY 2015-16 based on the success of the coal and
telecom spectrum auctions. This has prompted RBI to
begin an accommodative monetary policy cycle and
reduce the key lending rate, the Repo Rate by 50 basis
points to 7.5% in two installments.
The Current Account Deficit (CAD) in the third quarter
of FY 2014-15 came down to 1.6% of GDP, compared
to 2.0% in the second quarter of FY 2014-15. This
reduction in the CAD was mainly due to a pick-up
in net exports of services and lower net outflows
under primary income (profit, dividend and interest).
However, the CAD for the entire year should be under
control as lower oil prices would help reduce the
import bill.
Union Budget FY 2015-16 A Clear Direction for
Investment and Growth
The Union Budget FY 2015-16 has focused on
increasing expenditure towards capital formation,
which would have a multiplier effect on the economy.
It has recognised the need to revive growth in
infrastructure sectors and manufacturing in line
with the Make in India initiative. Total spending in
infrastructure will go up by ` 70,000 crore and total
capital expenditure is budgeted at ` 2,41,430 crore
(a 25% increase from the last year) in FY 2015-16.
The increase in public investment would also further
encourage private sector investment.
Rural demand has been sluggish for the past few
months, as realisation for the agri-industry has been
depressed due to a deficient monsoon last year,
which has slowed the rural economy and impacted
63
Annual Report FY2014-15
COMPANY
OVERVIEW
AND
PROFITABLE GROWTH STRATEGY
SUSTAINABLE
STATUTORY REPORTS
BUSINESS UNITS
3.1
Inorganic Chemicals
a)
1,086,614
989,989
Business Performance
The India operations witnessed a broad-based
growth in top line driven by higher production and
trading volumes. Growth in bottom-line numbers
was driven by healthy realisations, tight cost control
and innovative service models. Production levels of
most key products remained healthy in FY 2014-15.
With a tight control over variable costs and energy,
improved production control systems and structured
implementation of Continuous Improvement Programs
(CIP) helped to improve operational performance. The
Companys commitment towards safe and sustainable
operations was recognised when Mithapur was
awarded with the British Safety Council 5-Star Award.
On the environmental front, more than 80% of the
non-product output was recycled at Mithapur. An
efficient supply chain helped in delivering more than
2 million tonnes by multiple modes. The Company
will continue to focus on alternative modes of product
delivery.
66
Annual Report FY2014-15
31%
13%
83%
90%
72%
75%
STATUTORY REPORTS
c)
0.701
0.672
FY 2014-15
FY 2010-11
0.492
0.590
0.504
0.856
1.083
1.134
82%
69%
d)
0.02
0.84
6,597
4,243
a)
STATUTORY REPORTS
5.2
3.6
Customised Fertilisers
Customised fertilisers are crop and region specific
fertilisers carrying macro and micro nutrients providing
holistic solutions to improve soil health. In the context
of a depleting NPK balance in farm soil and increasing
deficiencies of secondary and micro nutrients, there is
an immediate need for such products. The Government
of India is placing increased emphasis on balanced soil
nutrition. The Company has four grades registered/
approved for major crops, i.e. paddy, wheat, potato
and sugarcane for Western Uttar Pradesh. Even though
the product has received a favourable feedback from
farmers for convenience of use, increased yield as
well as improved quality of the produce, sales have
been low due to the significant increase in prices of
de-controlled fertilisers and an initial hesitation in
adopting a new fertiliser application practice. The
Company is continuing its plan to popularise the
product by targeting selected clusters and developing
focused awareness building activities. The Companys
efforts in working with institutions and farmers are
yielding very good results in the sugarcane sector.
Further efforts, promoting the product through the
sugar mills will develop the brand further.
Tata Kisan Sansar and Rallis Kisan Kutumb
Tata Kisan Sansar (TKS) a dedicated franchisee retail
network model for distribution of agri inputs provides
a trustworthy, One-stop agri inputs and services
offering to farmers. These stores also act as active
agents in knowledge transfer and adoption of best
management practices. TKS provides the Company
with a direct connection with farmers to understand
their needs and tailor products and services
accordingly. They offer farm advisory services such
as subsidised soil testing, Hello Krishi, a mobile based
agri information service and Smart Krishi, a service
offered to farmers for certain critical farm operations
with the use of latest technology and well researched
farm practices. TKS has a unique farmer relationship
management programme under TATA Kisan Parivar
Membership (TKPM) programme. Currently, there are
more than 800 Tata Kisan Sansars in operation.
69
Annual Report FY2014-15
0.527
0.532
FY 2014-15
FY 2010-11
Haldia 0.047
0.064
b)
Outlook
The unusual rains in March 2015 resulted in widespread
damage to Rabi crops and the monsoon performance
becomes all the more important for Kharif 2015. As
with FY 2014-15, El Nino conditions are expected to
prevail in FY 2015-16. However, the progress of rainfall
in June 2015, which has been above normal, raised
hopes for the ensuing Kharif season.
2014-15
2010-11
14,231
8,988
3.3
14,000
9,000
Others
Others primarily consist of our consumer product
portfolio and nutritional solutions other than Salt and
STATUTORY REPORTS
a)
Industry
structure,
performance
1,518
782
developments
and
Salt Portfolio
The estimated current annual consumption of edible
salt in India is approximately 5.9 million tonnes. The
demand for edible salt is expected to grow at a rate
of approximately 1.5%. The private sector contributes
over 90.3% of the salt production, while the public and
cooperative sectors contribute about 1.5% and 8.2%
respectively.
Tata Salt Market Share - National Branded
2014-15
2013-14
58.3%
57.0%
22.6%
21.6%
14
9
Pulses
The industry is largely unbranded and offers a good
opportunity to provide consumers with higher
quality branded pulses. At the sourcing-end, as part
of its Grow More Pulses initiative with Rallis, TCL
engages with 1,50,000 farmers across 4 states. Those
farmers associated with the initiative benefit from the
Companys advisory training programmes and yield
increases of 20-50% through the crop cycle.
Tata I-Shakti unpolished dals and besan sales have
grown from strength to strength and expanded the
outlet base. The brand is now available at over 90,000
outlets in India. Our unique Dal on Call service in the
cities of Mumbai, Delhi and Bangalore delivers the
product directly to over 9,000 unique customers, of
which 56% are repeat customers.
Pulses - Number of Outlets
2014-15
2013-14
91,000
45,000
Spices
Though almost 75% of the market remains unbranded,
the branded segment is growing at a rate of 26% p.a. in
terms of value. This shift from unbranded to branded
segment is being driven by increasing demand for
convenience and trust. Within the branded spices
market, blended products are expected to outgrow
Pures in terms of value over the next 5 years due to
increasing consumer adoption of blended products.
During the year, TCL test launched spices in five cities
of Punjab with a product portfolio of seven blended
and three pure spice variants.
The launch achieved early action standard of a
market share of 5% within six months of the launch.
Its superior product quality and the innovative
5-in-1 packaging became the USPs for the product.
Each blend is developed with regional consumer
preferences in mind, using Chef Sanjeev Kapoors
skill and expertise. Post launch in Punjab the
product was also launched in Haryana and Himachal
Pradesh and a roll out into other states is planned in
FY 2015-16.
Water Purifier
Based on secondary sources such as Market Pulse,
Frost & Sullivan and ASSOCHAM projections, the
water purifier category size in India is estimated to be
at ~ ` 3,400 crore. The growth for next five years is
71
Annual Report FY2014-15
1.5 million
Market share
9%*
6,500
Outlook
The Company aims to almost double the consumer
base of the consumer products portfolio over the
next 5 years by focussing on increasing its retail reach,
building more focussed consumer engagement,
digitising its supply chain to make it more efficient and
responsive, and optimising its internal processes and
capabilities.
While the salt portfolio will continue to be the bedrock
in terms of revenue generation, the fast growing foods
portfolio is expected to contribute significantly to
overall business by the end of FY 2019-20. In terms
of reach, the Company will target expanding its
retail footprint to 2.5 million outlets from its current
1.43 million outlets. This will be done through greater
use of smaller pack formats, along with new go-tomarket models. In addition to growing the current
retail network, the Company is also focussing on
Modern Trade and non-traditional channels such as
e-Commerce, ensuring availability at all consumer
touch points.
The Company is building powerful umbrella brands
in the form of Tata Salt, Tata I-Shakti foods and Tata
Swach. In addition to marketing and distribution,
72
Annual Report FY2014-15
c)
44,700
36,000
44,000
27,000
STATUTORY REPORTS
4.1
%
Change
10,237
8,817
1,420
16
Other
Operating
Income
98
99
(1)
(1)
Less: Excise
Duty
253
237
16
10,082
8,679
1,403
16
Net Sales/
Income from
Operations
Net sales increased by 16% during FY 2014-15 over FY 20132014 due to higher sales volume of nitrogen phosphate
potash (NPK), urea, traded diammonium phosphate (DAP)
and pulses and higher realisation of soda ash, salt and urea.
Subsidy income has also increased in the current year.
Cost of
materials
consumed
FY
2014-15
FY
2013-14
3,779
3,194
(` in crore)
%
Change
Change
585
18
Purchases
of stock-intrade
FY
2014-15
FY
2013-14
2,713
1,614
(` in crore)
%
Change
Change
1,099
68
Power and
Fuel
FY
2014-15
FY
2013-14
1,035
815
(` in crore)
%
Change
Change
220
27
Freight and
forwarding
charges
FY
2014-15
FY
2013-14
759
644
(` in crore)
%
Change
Change
115
18
73
FY
2013-14
Change
%
Change
213
185
28
15
Other
expenses
FY
2013-14
(` in crore)
%
Change
Change
Trade
receivable
Less :
Provision
for doubtful
debts
Net Trade
Receivable
(` in crore)
%
Change
Change
FY
2014-15
FY
2013-14
2,515
2,421
94
29
19
10
53
2,486
2,402
84
3,807
3,708
99
166
166
391
384
4,364
4,258
106
4.1.9. Inventories:
(` in crore)
Inventories
FY
2014-15
FY
2013-14
Change
%
Change
1,809
811
998
123
74
Annual Report FY2014-15
Long-term
Loans and
Advances
Short-term
Loans and
Advances
Loans and
Advances
(` in crore)
%
Change
Change
FY
2014-15
FY
2013-14
421
416
199
184
15
620
600
20
Long term loans and advances increased during FY 201415 mainly due to increase in advance taxes. Short term
loans and advances increased during FY 2014-15 mainly
due to increase in advance to suppliers and deposits with
government authorities.
12. Cash flow and Net Debt
Net Cash flow from operating activities: The net cash from
operating activities is ` 344 crore during FY 2014-15 as
compared to ` 1,441 crore during FY 2013-14. The cash
operating profit before working capital changes and direct
taxes during FY 2014-15 is ` 1,111 crore as compared to
` 1,007 crore during FY 2013-14. The change in working
capital, during the financial year, was mainly due to increase
in trade and other receivable and inventories.
Net Cash flow from investing activities: The net cash inflow from
investing activities amounted to ` 31 crore in FY 2014-15 as
against an outflow of ` 137 crore in FY 2013-14. The inflow
STATUTORY REPORTS
Long-term
Borrowings
Short-term
Borrowings
Long term
borrowing
payable
within one
year
Total Debt
Less : Cash
and Bank
balances
Less :
Current
investments
Net Debt
(` in crore)
%
Change
Change
FY
2014-15
FY
2013-14
1,739
1,736
976
1,299
(323)
(25)
*
2,715
3,035
*
(320 )
Entity
Tata Chemicals
North America
Inc (TCNA)
Indo Maroc
Phosphore
S.A., Morocco
(IMACID)
Rallis India Ltd.
Others and
Eliminations
Total
977
(403)
(41)
2,141
*
2,058
83
%
Change
2,896
2,818
78
571
1,802
532
1,727
39
75
7
4
(619)
16,913
(476)
15,725
(143)
1188
30
8
Comments:
Net Sales have increased by 8% during the year ended
31st March, 2015 primarily due to:
a.
b.
c.
(11)
574
FY
FY
Change
2014- 15 2013- 14
FY
FY
Change
2014-15 2013-14
%
Change
Tata Chemicals
Limited
3,779
3,194
585
18
4.2
Tata Chemicals
Europe and
Tata Chemicals
Africa
123
266
(143)
(54)
(` in crore)
Indo Maroc
Phosphore S.A.,
Morocco
420
333
87
26
%
Change
827
810
17
Others and
Eliminations
(309)
(262)
(47)
18
Total
4,840
4,341
499
11
Entity
Tata Chemicals
Limited
Tata Chemicals
Europe (TCE)
and Tata
Chemicals
Africa
FY
FY
Change
2014- 15 2013- 14
9,984
8,580
1,404
16
Comments:
2,279
2,544
(265)
(10)
b.
Comments:
The employee cost increased by 3%, mainly due to revised
wages in India and US and actuarial loss at India due to
decrease in discount rate by 105 basis point offset by
reduction in manpower strength in Europe and Africa.
4.2.5. Power and Fuel:
(` in crore)
(` in crore)
Entity
Tata Chemicals
Limited
Tata Chemicals
Europe and
Tata Chemicals
Africa
Tata Chemicals
North America
Inc
Rallis India Ltd.
Others and
Eliminations
Total
FY
FY
Change
2014-15 2013-14
%
Change
2,713
1,614
1,099
68
438
226
212
94
22
160
38
171
(16)
(11)
(42)
(6)
(280)
3,053
(236)
1,813
(44)
1,240
18
68
Tata Chemicals
Limited
Tata Chemicals
Europe and
Tata Chemicals
Africa
Tata Chemicals
North America
Inc
Indo Maroc
Phosphore
S.A., Morocco
Rallis India Ltd.
Others and
Eliminations
Total
Tata Chemicals
Limited
Tata Chemicals
Europe and
Tata Chemicals
Africa
Tata Chemicals
North America
Inc
Indo Maroc
Phosphore
S.A., Morocco
Rallis India Ltd.
Total
FY
FY
Change
2014-15 2013-14
%
Change
1,035
815
220
27
643
966
(323)
(33)
292
302
(10)
(3)
9
62
2,041
11
62
2,156
(2)
(115)
(18)
(5)
Comments:
Comments:
Entity
Entity
FY
FY
Change
2014-15 2013-14
%
Change
b.
330
267
63
24
Entity
273
346
(73)
(21)
494
462
32
21
129
20
111
1
18
5
16
9
1,256
9
1,215
41
76
Annual Report FY2014-15
Tata Chemicals
Limited
Tata Chemicals
Europe and
Tata Chemicals
Africa
Tata Chemicals
North America
Inc
Indo Maroc
Phosphore
S.A., Morocco
FY
FY
Change
2014-15 2013-14
%
Change
1,186
1,861
(675)
(36)
782
792
(10)
(1)
1,449
1,390
59
69
149
(80)
(54)
STATUTORY REPORTS
Entity
Rallis India Ltd.
Others and
Eliminations
Total
%
FY
FY
Change
2014-15 2013-14
Change
366
332
34
10
4
3,856
27
4,551
(23)
(695)
b.
(85)
(15)
(` in crore)
Entity
FY
FY
Change
2014-15 2013-14
%
Change
Stores, spares
parts and
consumables
728
687
41
Repairs
408
413
(5)
(1)
Royalty, rates
and taxes
271
259
12
Commission,
discounts and
distributors
service charges
139
118
21
18
Sales
promotion
expenses
294
232
62
27
Freight and
forwarding
charges
1,911
1,832
79
Change in
inventory
of work-inprogress and
finished goods
(917)
109
(1,026)
(942)
Others(*)
1,022
901
121
13
Total
3,856
4,551
(695)
(15)
c.
d.
e.
FY
FY
Change
2014-15 2013-14
%
Change
187
185
142
193
(51)
(26)
91
10
163
12
(72)
(2)
(44)
(16)
24
454
26
579
(2)
(125)
(8)
(22)
Particulars
Exchange loss (net) on
foreign currency long- term
borrowings including
revaluation thereof
Impairment of assets (net
of Reversal)(refer note a
below)
Restructuring costs at Tata
Chemicals Europe Limited
Provision for diminution in
the value of investments in
EPM Mining Ventures Inc.
Compensation on
voluntary retirement (refer
note b below)
Compensation received
on termination of a supply
contract
Total
a.
b.
FY
2014-15
i)
ii)
FY
2013-14
158.47
196.95
983.68
242.28
180.31
64.14
(61.38)
199.71
(144.53)
1,420.21
(` in crore)
FY
2014-15
Impact on :
Consolidated Net Profit /
(Loss) before tax
Consolidated Net Profit /
(Loss) after tax
FY
2013-14
285.18
140.95
219.42
77.36
Subsidiaries and JV
8,378
TCL Standalone
8,000
7,000
6,000
5,000
4,000
2,674
3,000
1,836
2,000
1,000
1,865
556
355
1,087
Mar'15
Gross Debt
78
Annual Report FY2014-15
FY16
FY17
FY18
FY19
Repayments
FY20
FY21
STATUTORY REPORTS
Notes :
1
5.
5.1
Innovation Centre
The Company established the Innovation Centre
(IC) to undertake research in applied sciences with a
view to seeding new businesses, using the principles
of sustainability and green chemistry. The IC has filed
60 patent applications (6 in FY 2014-15) of which 15
have been granted. The new state-of-the-art Company
owned Innovation Centre in Pune was inaugurated by
Mr. Cyrus P. Mistry, Chairman, on 11th July, 2014.
In FY 2014-15, some of the key accomplishments
of the IC team included developing a ten-year
technology roadmap for the Nutritional Solutions
supported by technology scanning to identify highpotential and early-stage technologies. The team
provided application development support to
Fructo-oligosaccharide (FOS) customers in India and
transferred and scaled-up Glacto-oligosaccarides
(GOS) technology from the laboratory to our plant
near Chennai. The IC team also provided support to
and developed products on behalf of Rallis and other
Tata companies.
5.2
80
Annual Report FY2014-15
STATUTORY REPORTS
7.
SUSTAINABILITY
8.1
8.2
Sustainability Reporting
The Company is conscious of its role as a responsible
corporate citizen and adheres to the norms of the
Corporate Governance. The Company strives to be
a leader in corporate sustainability focussing on all
three elements of people, planet and profit, to help
build deeper relationships with all its stakeholders. To
highlight performance and progress information on
these aspects, the Company plans to publish its sixth
Sustainability Report FY 2014-15 in public domain
shortly. This report will be externally assured and based
on GRI-G4 guidelines covering the core indicators. It
will also integrate reporting of sustainability actions
across geographies, covering India, Kenya, U.S. and U.K.
operations. The Companys fifth Sustainability Report
can be viewed on its website www.tatachemicals.com.
8.3
654
606
9.
0.650
0.675
BUSINESS EXCELLENCE
The Company remains committed to continually raise
the bar on performance in all aspects of the business.
The Tata Business Excellence Model (TBEM) serves as
a pivotal framework that allows the Company to gain
insights into its performance and establish continuous
improvement initiatives for attaining superior
business results and maximising satisfaction and
value to the customers. The TBEM framework covers
six core aspects of the business: Leadership, Strategic
planning, Customer focus, Measurement, Analysis
and Knowledge Management, Workforce focus and
Process Management. For a global organisation
which has its manufacturing operations spread across
four continents, with diverse business segments
and employees from different cultures, TBEM serves
as a platform to establish a common standard of
excellence.
The Company participates annually in the Tata Group
level TBEM assessments, which provide valuable inputs
into the strengths and areas of focus for the Company
to strengthen the culture of excellence. The Company
believes that the continued emphasis on TBEM will
82
Annual Report FY2014-15
INTERNAL CONTROLS
The Company has robust systems for internal audit, risk
assessment and mitigation and has an independent
internal audit department with well-established
internal control and risk management processes
both at the business and corporate levels. The Chief Internal Audit and Risk Officer reports directly to the
Chairman of the Audit Committee of the Board of
Directors, which ensures process independence.
Internal audit function plays a key role in providing
to both the operating management and to the
Audit Committee of the Board, an objective view
and reassurance of the overall control systems and
effectiveness of the risk management processes
across the Company and its subsidiaries. Internal
Audit also assesses opportunities for improvement in
business processes, systems and controls and provides
recommendations designed to add value to the
operations.
The scope and authority of the Internal Audit
Department is derived from the Audit Charter
approved by the Audit Committee. Internal Audits are
performed by an in-house team of multidisciplinary
professionals comprising Chartered Accountants and
Engineer. Reviews are conducted on an on-going
basis, based on a comprehensive risk-based audit
plan, which is approved by the Audit Committee at the
beginning of the year. The internal audit department
which operates on a decentralised basis continuously
monitors the adequacy and effectiveness of the
internal control environment across the Company
and the status of compliance with operating systems,
internal policies and regulatory requirements.
The Audit Committee meets on a quarterly basis
to review and discuss the reports submitted by the
Chief Internal Audit and also review closure of all
agreed actions. The Audit Committee also meets the
Statutory Auditors separately to ascertain their views
on the adequacy and efficiency of the internal control
systems.
The Company believes that every employee has a role
to play in fostering an environment in which controls,
assurance, accountability and ethical behaviour are
accorded high importance. To supplement the reviews
carried out by the Internal Audit teams, the Company
follows an elaborate system of Control Self Assurance
(CSA) (self-audit) which is carried out during the year.
The CSA coverage includes all critical departments in
the organisation.
STATUTORY REPORTS
Overview
The IT enabled CSA process provides a good bottomup approach and build up for the CEO/CFO certification
as required by Clause 49 of the Listing Agreement,
besides helping in awareness creation of controls
across a wide segment of the Companys employees.
This complements the Internal Audits conducted to
ensure total coverage during a year.
Dimensions of Key
Business Objecves
Strategic
Reputaonal
Operaonal
Regulatory and
Compliance
Board of Directors
Financial
RMC (*)
Customer
RMG (#)
Operaonal
Excellence
Drive Innovaon
Financial
Integraon with
Strategy and
Business Plan
Risk Handling /
Response
Avoidance
Acceptance
Reducon
Sharing
Risk Inheritance
Enterprise level
Risk Idencaon
and Assessment
Risk Aggregaon
11.
83
Annual Report FY2014-15
Board of Directors
(Board)
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Risk Management
Committee (RMC)
of the Board
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operational risks, market risk, etc
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Risk Management
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Senior Management
level
t *NQMFNFOUBUJPOPG3JTLSFEVDUJPOTUSBUFHJFT
t 'PSNVMBUJOHBOEEFQMPZJOHSJTLNBOBHFNFOUQPMJDZ
t %FQMPZJOHQSBDUJDFTGPSJEFOUJDBUJPO
BTTFTTNFOU
NPOJUPSJOH
NJUJHBUJPOBOESFQPSUJOHPGSJTLT
t 1SPWJEJOHVQEBUFTUP3.$GSPNUJNFUPUJNFPOUIFFOUFSQSJTFSJTLTBOEBDUJPOTUBLFO
RMG at Business
Unit (BU) /
Subsidiary level
t *NQMFNFOUBUJPOPGSJTLSFEVDUJPOTUSBUFHJFT
t %FQMPZJOHSJTLNBOBHFNFOUQPMJDZ
t %FQMPZJOHQSBDUJDFTGPSJEFOUJDBUJPO
BTTFTTNFOU
NPOJUPSJOH
NJUJHBUJPOBOESFQPSUJOHPGSJTLT
t 1SPWJEJOHVQEBUFTUP3.(BOE3.$GSPNUJNFUPUJNFPOUIFSFTQFDUJWF#6SJTLTBOEBDUJPOTUBLFO
Risk Owners
t 3FTQPOTJCMFGPSEFWFMPQJOHBOEBDUJOHPOSJTLNJUJHBUJPOQMBO
t 1SPWJEJOHQFSJPEJDVQEBUFTUP3.$POSJTLTXJUINJUJHBUJPOQMBO
Risk Categories
The following broad categories of risks have been considered
in the risk management framework:
t 4USBUFHJD3JTLoJODMVEFTUIFSBOHFPGFYUFSOBMFWFOUTBOE
trends (like Government policy) that can adversely impact
the Companys strategic growth trajectory and destroy
stakeholder value
t 3FQVUBUJPOBM3JTLoJODMVEFTSBOHFPGFWFOUTUIBUDSFBUFTB
mismatch between stakeholder expectations and his/her
perception about Companys performance around those
expectations
t 0QFSBUJPOBM 3JTL o BSF UIPTF SJTLT XIJDI BSF BTTPDJBUFE
with operational uncertainties like failure in critical
equipment, attrition, etc
t 3FHVMBUPSZBOE$PNQMJBODFSJTLoSJTLTEVFUPJOBEFRVBUF
compliance to regulations, contractual obligations and
84
Annual Report FY2014-15
STATUTORY REPORTS
2.
Board of Directors
The Board comprised 11 Directors as on 31st March,
2015. The Board has a combination of Executive and
Non- Executive Directors. There are nine Non-Executive
Directors and six (i.e. 54.55%) are Independent
Directors. The Managing Director and the Executive
Director & Chief Financial Officer (CFO) are the Wholetime Directors of the Company.
The composition of the Board is in conformity with
Clause 49 of the Listing Agreement entered into
with the stock exchanges. It also complies with the
provisions of the Companies Act, 2013. All Directors
possess the requisite qualifications and experience in
general corporate management, finance, banking and
other allied fields which enable them to contribute
effectively to the Company in their capacity as
Directors of the Company.
CORPORATE GOVERNANCE
Meetings held
The Board met 10 (ten times) on the following dates during
the Financial Year (FY) 2014-15.
15th May, 2014
Name of Director
Category
No. of Board
Meetings
attended
during
FY 2014- 15
Whether
attended
AGM held
on 21st
August,
2014
Number of
directorships in
other public limited
companies*
Number of committee
positions held in
other public limited
companies**
Chairman
of the
Board
Board
Member
Chairman
of the
Committee
Committee
Member
Non-Independent
Non-Executive
10
Yes
Mr. R. Gopalakrishnan
(Vice-Chairman)
DIN- 00027858
Non-Independent
Non-Executive
10
Yes
Independent,
Non-Executive
No
Non-Independent
Non-Executive
No
Independent,
Non-Executive
Yes
Independent,
Non-Executive
Yes
Independent,
Non-Executive
Yes
Independent,
Non-Executive
Yes
Independent,
Non-Executive
NA
Mr. R. Mukundan
DIN- 00778253
Managing Director
10
Yes
Mr. P. K. Ghose
DIN- 00034945
Executive Director
& CFO
10
Yes
Notes:
*
Excludes directorships in associations, private limited companies, foreign companies, companies registered under Section
8 of the Companies Act, 2013 and Government Bodies.
**
86
Annual Report FY2014-15
STATUTORY REPORTS
CORPORATE GOVERNANCE
The Directors and Senior Management of the Company
have made disclosures to the Board confirming that
there are no material, financial and / or commercial
transactions between them and the Company which
could have potential conflict of interest with the
Company at large.
16,000
0.01%
Mr. R. Gopalakrishnan
(Vice-Chairman)
15,000
0.01%
Mr. R. Mukundan
(Managing Director)
3.
% of Paid-up
No. of
Capital
Ordinary
shares held
500
0.00%
Audit Committee
Terms of Reference
The Audit Committee functions according to its Charter
that defines its composition, authority, responsibilities
and reporting functions. The terms of reference of the
Audit Committee, inter-alia, are:
z
88
Annual Report FY2014-15
STATUTORY REPORTS
No. of
meetings
attended
Mr. R. Gopalakrishnan
Mr. E. A. Kshirsagar
Dr. Y. S. P. Thorat
Meetings held
4.
No. of
meetings
attended
Mr. R. Gopalakrishnan
Remuneration Policy
The Companys philosophy for remuneration of
Directors, KMP and all other employees is based on
the commitment of fostering a culture of leadership
with trust. The Company has adopted a Policy for
remuneration of Directors, KMP and other employees,
which is aligned to this philosophy. The principles
governing the Companys Remuneration Policy is
provided in the Boards Report.
89
Annual Report FY2014-15
CORPORATE GOVERNANCE
Managing Director / Executive Director & CFO
The Company pays remuneration by way of salary,
benefits, perquisites and allowances (fixed component)
and commission (variable component) to its Managing
Director and the Executive Director & CFO. Annual
increments are decided by the Nomination and
Remuneration Committee (NRC) within the salary
Name of Director
Salary
(`)
Perquisites and
Allowance
(`)
Commission*
(`)
Total
Remuneration
(`)
72,00,000
1,25,12,227
2,00,00,000
3,97,12,227
56,40,000
56,46,101
2,00,00,000
3,12,86,101
* Commission relates to the financial year ended 31st March, 2015, which will be paid during FY 2015-16.
Service Contracts, Severance Fees and Notice Period
Terms of Agreement
Mr. R. Mukundan
Mr. P. K. Ghose
Period of Contract
90
Annual Report FY2014-15
STATUTORY REPORTS
Name of Director
Sitting Fees
(`)
Commission
(for FY 2013-14)
paid in
FY 2014-15
(`)
Commission
(for FY 2014-15
payable in
FY 2015-16)
(`)
2,80,000
Nil*
Nil*
Mr. R. Gopalakrishnan
4,20,000
47,00,000
57,00,000
2,60,000
22,00,000
35,00,000
2,40,000
27,00,000
27,00,000
4,00,000
43,00,000
52,00,000
Mr. E. A. Kshirsagar
3,60,000
26,00,000
39,00,000
Dr. Y. S. P. Thorat
4,00,000
17,00,000
41,00,000
2,900,000
1,20,000
14,00,000
12,00,000
1,20,000
12,00,000
26,00,000
2,25,00,000
2,75,00,000
Total
* Mr. Cyrus P. Mistry, being Executive Chairman of Tata Sons Limited, has not accepted any commission from the Company.
As per the practice, commission to the Directors is paid after the annual accounts are adopted by the members at the AGM.
Retirement Policy for Directors
The Governance Guidelines on Board effectiveness
adopted by the Company provides for the retirement
age of Directors. As per the Guidelines, the Managing
and Executive Directors retire at the age of 65 years,
Non-Independent Non-Executive Directors retire
at the age of 70 years and the retirement age for
Independent Directors is 75 years.
5.
Meetings held
During FY 2014-15, 2 (two) meetings were held on
25th June, 2014 and 14th January, 2015.
Composition and Attendance
The Committee comprises Dr. Y. S. P. Thorat (Chairman)
and Mr. R. Mukundan and they attended both the
meetings.
: 0
: 24
: 22
: 2*
CORPORATE GOVERNANCE
On the recommendations of the Committee,
the Company has taken various investor friendly
initiatives like sending reminders to investors who
have not claimed their dividends, to encourage
dematerialisation of shares, etc.
6.
Meetings Held
During FY 2014-15, 2 (two) meetings were held on
25th June, 2014 and 14th January, 2015.
Terms of Reference
z
Acquisitions,
divestments
restructuring proposals.
and
and
Capital
business
Meetings held
During FY 2014-15, no meetings were held.
Composition
The Committee comprises Mr. Cyrus P. Mistry
(Chairman), Mr. R. Gopalakrishnan, Mr. Nusli N. Wadia,
Mr. Prasad R. Menon, Dr. Y. S. P. Thorat, Mr. R. Mukundan
and Mr. P. K. Ghose.
7.
92
Annual Report FY2014-15
8.
Review
and
monitor
the
sustainability,
environmental, safety and health policies and
activities across the Tata Chemicals group;
z.
STATUTORY REPORTS
Terms of Reference
z Review
Meetings held
During FY 2014-15, 3 (three) meetings were
held on 25th June, 2014, 10th October, 2014 and
14th January, 2015
Composition and Attendance
Name of Member
No. of meeting
attended
Dr. Y. S. P. Thorat
Mr. R. Mukundan
Meetings Held
During FY 2014-15, 1 (one) meeting was held on 25th
March, 2015.
Composition and Attendance
risk
Subsidiary Companies
Clause 49 defines a material non-listed Indian
subsidiary as an unlisted subsidiary, incorporated in
India, whose income or net worth (i.e. paid up capital
and free reserves) exceeds 20% of the consolidated
93
Annual Report FY2014-15
CORPORATE GOVERNANCE
income or net worth respectively, of the listed holding
company and its subsidiaries in the immediately
preceding accounting year.
Under this definition, the Company did not have any
material non-listed Indian subsidiary during the
year under review. The Subsidiaries of the Company
function independently, with an adequately
empowered Board of Directors and sufficient
resources. For more effective governance, the Minutes
of Board Meetings of Subsidiaries of the Company are
placed before the Board of the Company for its review.
The requirements of the Clause 49 of the Listing
Agreement with regard to subsidiary companies have
been complied with.
The Company has formulated a policy for determining
material subsidiaries which is disclosed on the
Companys website at the following web link: http://
tatachemicals.com/investors/policies/pdf/material_
subsidiary.pdf
11.
Postal Ballot
During FY 2014-15, the Company successfully
completed the process of obtaining approval of its
members through Postal Ballot by passing a Special
Resolution for alteration of the Object Clause of the
Memorandum of Association of the Company.
Voting Pattern and Procedure for Postal Ballot:
i)
ii)
iii)
iv)
v)
vi)
Location
Thursday,
2013-14 Birla Matushri
Sabhagar, 19, Vithaldas 21st August, 2014 at
3.00 p.m.
Thackersey Marg,
Mumbai 400 020.
Monday,
2012-13 Birla Matushri
Sabhagar, 19, Vithaldas 26th August, 2013 at
3.00 p.m.
Thackersey Marg,
Mumbai 400 020.
Wednesday,
2011-12 Birla Matushri
Sabhagar, 19, Vithaldas 22nd August, 2012
at 3.00 p.m.
Thackersey Marg,
Mumbai 400 020.
Special resolutions passed at the last 3 AGMs
Date of AGM
21st August, 2014
(i)
(ii)
Particulars
Approve borrowing limits of
the Company
Creation of Charge on the
assets of the Company
94
Annual Report FY2014-15
STATUTORY REPORTS
vii)
On 12th February, 2015, the postal ballot results were announced as per the Scrutinizers Report as under :
Particulars
Total No. of
Valid Votes
Votes
Assenting
the
Resolution
% of Votes
Cast in
favour
Votes
Dissenting
the
Resolution
% of
Votes Cast
against
99.98
27,457
0.02
Disclosures
Mandatory Requirements
The Company has complied with all the mandatory
requirements of Clause 49 of the Listing Agreement
relating to Corporate Governance.
Non-Mandatory Requirements
The Company has complied with the following nonmandatory requirements of Clause 49 of the Listing
Agreement relating to Corporate Governance:
13.
Means of Communication
The quarterly results were published on the next day
of the meeting for that quarter i.e. for quarter and year
ended 31st March, 2014, the results were published
on 31st May, 2014, for first quarter ended 30th June,
95
Annual Report FY2014-15
CORPORATE GOVERNANCE
2014 the results were published on 6th August, 2014,
for second quarter ended 30th September, 2014 the
results were published on 11th November, 2014 and
for the third quarter ended 31st December, 2014 the
results were published on 7th February, 2015.
The quarterly results are published in the Indian
Express (English), Business Standard (English), Business
Line (English), Loksatta (Marathi), Free Press Journal
(English) and Navshakti (Marathi).
The financial results are displayed under
Investors Section of the Companys website viz.,
www.tatachemicals.com. They are also filed with the
National Stock Exchange of India Limited through NSE
Electronic Application Processing System (NEAPS) and
with BSE Limited through BSE Online Portal.
The official press releases, presentation made to the
members at the AGM and the presentation made to
analysts are posted on the Companys website under
investor relations.
14.
Venue
Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai - 400020
Financial Year
April to March
Tuesday, 4th August, 2015 to Tuesday, 11th August, 2015 (both days inclusive for the
purpose of AGM and Dividend)
The Companys Ordinary Shares are listed on the following Stock Exchanges:
(1) BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001.
(2) National Stock Exchange of India Limited (NSE)
Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051.
Debenture Trustee
The Company has paid the Annual Listing fees for the FY 2014-15 and 2015-16.
96
Annual Report FY2014-15
STATUTORY REPORTS
Stock Code:
BSE Limited, (Physical Segment)
TATACHM770
500770
TATACHEM EQ
Month
High
302.90
329.45
347.75
355.00
389.25
421.30
414.55
442.40
460.00
466.50
475.80
482.10
Apr-2014
May-2014
Jun-2014
Jul-2014
Aug-2014
Sep-2014
Oct-2014
Nov-2014
Dec-2014
Jan-2015
Feb-2015
Mar-2015
Low
278.60
282.00
299.15
318.15
342.25
371.80
382.55
408.00
395.60
415.05
441.00
411.30
Graphical Representation of Performance of Tata Chemicals Limiteds Share Price (average of closing price of BSE
and NSE) in comparison with BSE Sensex.
30,000.00
480.00
460.00
28,000.00
440.00
400.00
380.00
24,000.00
360.00
340.00
22,000.00
26,000.00
320.00
300.00
20,000.00
Sensex
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
280.00
Apr-14
BSE Sensex
420.00
Share Price
97
Annual Report FY2014-15
CORPORATE GOVERNANCE
Registrar and Share Transfer Agents
Members are requested to correspond with the Companys Registrar and Share Transfer Agents- TSR Darashaw Limited
quoting their folio no. / DP ID and Client ID at the following addresses:(i)
(ii)
For the convenience of investors based in the following cities, transfer documents and letters will also be accepted at
the following branches/agencies of TSR Darashaw Limited (TSRDL):-
1.
2.
3.
4.
5.
Pursuant to Clause 47 (c) of the Listing Agreement with the Stock Exchanges, certificates have been issued, on a halfyearly basis, by a Company Secretary in practice, certifying due compliance of share transfer formalities by the Company.
A Company Secretary in practice carries out a quarterly Reconciliation of Share Capital Audit, to reconcile the total
admitted capital with National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL) and
the total issued and listed capital. The audit confirms that the total issued / paid-up capital is in agreement with the
aggregate of the total number of shares in physical form and the total number of shares in dematerialised form (held
with NSDL and CDSL).
98
Annual Report FY2014-15
STATUTORY REPORTS
Mr. P.N. Parikh of M/s. Parikh & Associates, Practicing Company Secretary, has conducted a Secretarial Audit of the
Company for FY 2014-15. Their Audit Report confirms that the Company has complied with the applicable provisions of
the Companies Act and the Rules made there under, its Memorandum and Articles of Association, Listing Agreements
with the Stock Exchanges and the applicable SEBI Regulations. The Secretarial Audit Report forms the part of the Boards
Report.
Range of
Holding
No. of Shares
% to Capital
Amount (`)
No. of
Shareholders
% to
Shareholders
1 to 500
1,83,93,057
18,39,30,570
7.22
1,64,737
89.25
501 to 1000
79,26,299
7,92,62,990
3.11
10,558
5.72
1001 to 2000
74,04,191
7,40,41,910
2.91
5,137
2.78
2001 to 3000
41,19,275
4,11,92,750
1.62
1,656
0.90
3001 to 4000
25,33,675
2,53,36,750
1.00
718
0.39
4001 to 5000
20,24,729
2,02,47,290
0.79
442
0.24
5001 to 10000
53,02,142
5,30,21,420
2.08
749
0.41
Above 10000
20,70,52,910
2,07,05,29,100
81.27
569
0.31
25,47,56,278
2,54,75,62,780
100.00
1,84,566
100.00
TOTAL
No. of Shares
Percentage
7,89,25,857
30.98
Resident Individuals
4,94,51,456
19.41
Foreign Holdings
5,46,70,129
21.46
3,75,42,433
14.73
5,04,090
0.20
3,33,25,647
13.09
3,36,666
0.13
25,47,56,278
100.00
3.20
93.80
3.00
The Companys Ordinary shares are regularly traded on the BSE Limited and on National Stock Exchange of India Limited.
99
Annual Report FY2014-15
CORPORATE GOVERNANCE
Plant Locations
Indian Locations:
Chemicals Division
Fertiliser Division
Haldia Works
Chennai Works
Overseas Locations :
USA Chemical Soda Ash
UK Chemicals
Kenya Chemicals
(ii)
Northwich West
(iii)
Middlewich
100
Annual Report FY2014-15
STATUTORY REPORTS
DECLARATION
I, R. Mukundan, Managing Director of Tata Chemicals Limited, hereby declare that all the members of the Board of Directors and
the Senior Management personnel have affirmed compliance with the Code of Conduct, applicable to them as laid down by the
Board of Directors in terms of Clause 49(II)(E)(2) of the Listing Agreement entered into with the Stock Exchanges for the year ended
31st March, 2015.
For Tata Chemicals Limited
R. Mukundan
Managing Director
Mumbai, 27th May, 2015
AUDITORS CERTIFICATE
TO THE MEMBERS OF
TATA CHEMICALS LIMITED
We have examined the compliance of conditions of Corporate Governance by TATA CHEMICALS LIMITED (the Company), for
the year ended 31st March, 2015, as stipulated in Clause 49 of the Listing Agreement of the Company with stock exchanges.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to
the review of the procedures and implementation thereof adopted by the Company for ensuring compliance with the conditions
of the 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 Clause 49 of the Listing Agreement.
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.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firms Registration No. 117366W / W-100018)
Sanjiv V. Pilgaonkar
Partner
(Membership No. 039826)
Mumbai, 27th May, 2015
101
Annual Report FY2014-15
Opinion
Auditors Responsibility
1.
2.
(a)
FINANCIAL STATEMENTS
(b)
i.
(c)
ii.
iii.
(d)
(e)
(f )
103
Annual Report FY2014-15
ii)
b)
v)
vi)
vii)
b)
c)
iii)
iv)
104
Annual Report FY2014-15
a)
b)
c)
FINANCIAL STATEMENTS
Name of Statute
Nature of dues
Custom duty
Excise Duty
Income Tax
viii)
ix)
x)
Okha Nagar
Amount
involved
(` in crore)
0.29
2.00
9.96
2012-13
1987-88, 1992-93, 2001-02
and 2011-12
1974-1980 and 1981-1985
1985-88, 1996-97 and 2007-08
2004-08
19.01
0.32
2009-10
30.77
2012-13 to 2014-15
51.95
2008-2015
2.65
3.03
1.64
0.61
122.23
xii)
Place : Mumbai
Date : 27th May, 2015
105
Annual Report FY2014-15
I.
3.
II.
Non-Current Liabilities
(a)
Long-Term Borrowings
(b)
Deferred Tax Liabilities (net)
(c)
Other Long-Term Liabilities
(d)
Long-Term Provisions
Current Liabilities
(a)
Short-Term Borrowings
(b)
Trade Payables
(c)
Other Current Liabilities
(d)
Short-Term Provisions
TOTAL
ASSETS
1. Non-Current Assets
(a)
Fixed Assets
(i)
Tangible Assets
(ii)
Capital Work-in-Progress
(iii) Intangible Assets held under Development
(b)
Non-Current Investments
(c)
Long-Term Loans and Advances
(d)
Other Non-Current Assets
2.
Current Assets
(a)
Current Investments
(b)
Inventories
(c)
Trade Receivables
(d)
Cash and Bank Balance
(e)
Short-Term Loans and Advances
(f )
Other Current Assets
TOTAL
Notes forming an integral part of Financial Statements
106
Annual Report FY2014-15
` in crore
3
4
254.82
5,788.45
5
6
7
8
9
10
11
12
13
13
13
14
15
16
17
18
19
20
21
22
` in crore
6,043.27
254.82
5,446.41
5,701.23
2,010.95
1,735.51
215.61
3.60
66.00
2,020.72
3,814.42
11,868.64
1,299.18
1,198.73
431.18
507.64
3,436.73
11,158.68
6,762.09
1,872.06
158.62
4,257.64
416.20
22.89
6,727.41
5,106.55
11,868.64
0.25
810.56
2,401.78
976.85
183.79
58.04
4,431.27
11,158.68
1,739.40
191.23
1.67
78.65
976.46
1,848.41
372.84
616.71
1,900.50
62.83
0.89
4,363.85
421.32
12.70
1,809.03
2,486.32
574.30
199.00
37.90
1 - 28
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
Note
As at
31-Mar-2014
` in crore
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
FINANCIAL STATEMENTS
STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2015
I.
II.
III.
IV.
V.
VI.
REVENUE
(a) Revenue from Operations (Gross)
(b) Less: Excise Duty
(c) Net Revenue from Operations
Other Income
Total Revenue (I+II)
EXPENSES
(a) Cost of Materials Consumed
(b) Purchases of Stock-in-Trade
(c) Changes in Inventories of Work-in-Progress, Finished Goods
and Stock-in-Trade
(d) Employee Benefits Expense
(e) Finance Costs (net)
(f ) Depreciation and Amortisation Expense
(g) Other Expenses
Total Expenses
Profit Before Exceptional Items and Tax (IIIIV)
Exceptional Items
(a) Impairment of Assets
(b) Exchange Loss (net) on Foreign Currency Long-Term
Borrowings including Revaluation thereof
Note
` in crore
23
10,334.58
252.52
24
28(xiii)
25
26
13
27
10,276.81
8,882.31
3,778.55
2,712.54
3,194.24
1,614.10
(850.84)
330.17
186.78
192.71
3,072.81
130.19
267.05
185.32
158.82
2,545.94
8,095.66
786.65
13
59.30
854.09
158.47
217.77
568.88
216.12
637.97
151.00
(80.81)
70.19
62.62
132.81
436.07
25.04
25.04
17.12
17.12
229.86
229.86
(13.74)
28(i)
1 - 28
For and on behalf of the Board
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
10,082.06
194.75
8,915.98
236.59
8,679.39
202.92
9,422.72
854.09
` in crore
Previous
year
` in crore
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
107
Annual Report FY2014-15
CASH FLOW STATEMENT for the year ended 31st March, 2015
Previous
year
A
` in crore
` in crore
854.09
568.88
192.71
158.82
59.30
186.78
185.32
Interest income
(26.82)
(59.96)
(142.19)
(126.44)
(10.31)
(0.03)
29.58
8.72
12.04
3.15
Dividend income
26.82
24.60
(27.16)
(16.58)
0.11
15.74
198.16
(0.18)
2.79
1,111.21
1,006.73
(99.54)
262.38
(998.47)
116.91
579.67
183.87
592.87
1,569.89
(249.16)
(129.20)
343.71
1,440.69
(172.53)
(202.67)
6.72
0.38
19,298.20
10,329.03
(9.00)
(0.50)
(19,296.93)
(10,329.00)
(22.74)
(94.06)
43.87
(11.80)
(0.26)
Interest received
41.59
59.03
142.19
112.81
31.11
(136.78)
Dividend received
Net Cash generated from / (used) in Investing Activities
108
Annual Report FY2014-15
FINANCIAL STATEMENTS
CASH FLOW STATEMENT for the year ended 31st March, 2015 (contd.)
Previous
year
C
` in crore
` in crore
(2,190.46)
(4,268.06)
1,862.16
3,389.46
(52.43)
(154.21)
(193.59)
(0.82)
0.67
(294.86)
(294.42)
(778.19)
(1,418.37)
(403.37)
(114.46)
965.09
1,079.55
Cash and Cash equivalents as at 31st March (as per note 20)
561.72
965.09
21.43
25.55
Previous years figures have been regrouped / reclassified wherever necessary to make them comparable with the current
years figures.
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
109
Annual Report FY2014-15
CORPORATE INFORMATION
Tata Chemicals Limited (the Company) is a public limited company domiciled in India. Its shares are listed on two stock
exchanges in India - the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is engaged in
diversified businesses dealing in Inorganic Chemicals, Fertilisers, Other Agri inputs, Water purifiers, Nutritional solutions and
Pulses. The Company has a global presence with key subsidiaries in United Kingdom, Kenya and United States of America
that are engaged in the manufacture and sale of soda ash, industrial salt and related products.
NOTE 2
(a)
b)
Use of Estimates
The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Management believes that the estimates used in the preparation of the financial statements are
prudent and reasonable, future results could differ, the differences between the actual results and the estimates are
recognised in the period in which the results are known / materialise.
(c)
(d)
(e)
Depreciation has been provided as per Section 123 of the 2013 Act on a straight line method basis (SLM) over the
estimated useful lives. Management believes based on a technical evaluation that the revised useful lives of the
assets reflect the periods over which these assets are expected to be used, which are as follows:
110
Annual Report FY2014-15
FINANCIAL STATEMENTS
(g)
Investments
Long term investments are carried individually at cost. Provision for diminution is made to recognise a decline, other than
temporary, in the value of such investments. Current investments are carried individually, at lower of cost and fair value. Cost
of investments includes acquisition charges such as brokerage, fees and duties.
Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such
investments are made, are classified as current investments. All other investments are classified as long term investments.
On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to
the Statement of Profit and Loss.
(h)
Inventories
Inventories are valued at lower of cost (on weighted average basis) and net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes all charges in bringing the goods to their present location and
condition, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods
include appropriate proportion of overheads and, where applicable, excise duty. Net realisable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make
the sale.
(i)
Revenue Recognition
Sale of goods
Revenue from Sale of Goods is recognised, net of returns including estimated returns where applicable, and trade discounts,
rebates, sales tax and value added tax, when all significant risks and rewards of ownership of the goods have been passed
to the buyer, usually on delivery of goods. In respect of Urea, sales are recognised based on provisional concession rates as
notified under the New Pricing Scheme. Equated freight claims and escalation claims for Urea sales are estimated by the
Management based on the norms prescribed or notified under the said Scheme. In case of complex fertilisers, sales include
price concession, as notified under the Nutrient Based Subsidy policy, or as estimated by the Management based on the
norms prescribed.
Income from services
Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs
are incurred. Foreseeable losses on such contracts are recognised when probable.
111
Annual Report FY2014-15
Other Income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable. Dividend income is accounted for when the right to receive income is established.
(k)
Insurance Claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there
is no uncertainty in receiving the claims.
(l)
(m)
Leases
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are
recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a
straight-line basis.
(n)
(o)
Employee Benefits
Employee benefits consist of provident fund, superannuation fund, gratuity fund, compensated absences, long service
awards, post retirement medical benefits, directors retirement obligations and family benefit scheme.
(i)
(ii)
in case of accumulated compensated absences, when employees render the services that increase their
entitlement of future compensated absences; and
(b)
112
Annual Report FY2014-15
FINANCIAL STATEMENTS
(p)
(q)
Compensation payable to employees who have opted for retirement under Early Separation Scheme is amortised
over the period for which benefit is expected. The liability has been calculated on the basis of net present value of the
future payments of pension.
(ii)
Compensation paid / payable to employees who have opted for retirement under a Voluntary Retirement Scheme
including ex-gratia is charged to Statement of Profit and Loss in the year of separation.
Finance Costs
Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets,
are charged to the Statement of Profit and Loss, over the tenure of the loan. Fees and other transaction costs incurred on
origination of the loan are amortised over the tenure of the loan on a straight-line basis. Borrowing costs, allocated to
and utilised for qualifying fixed assets, pertaining to the period from commencement of activities relating to construction/
development of the qualifying assets upto the date the assets are substantially ready for their intended use which generally
coincides with the date of capitalisation, is added to the cost of the assets. Capitalisation of borrowing costs is suspended and
charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying
assets is interrupted.
Borrowing cost includes interest and amortisation of ancillary costs incurred in connection with the arrangement of
borrowings.
(r)
On initial recognition, all foreign currency transactions are converted and recorded at exchange rates prevailing on
the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated
at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised in the
Statement of Profit and Loss. Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction. Exchange difference arising on
a monetary item that, in substance, forms part of the Companys net investments in a non-integral foreign operation
are accumulated in a Foreign Currency Translation Reserve until disposal / recovery of the net investment.
During the year ended 31st March, 2012, the Company had exercised the option granted vide notification
F.No.17/133/2008/CL-V dated 29th December, 2011 issued by the Ministry of Corporate Affairs and accordingly, the
exchange differences arising on revaluation of long term foreign currency monetary items is accumulated in a Foreign
Currency Monetary Item Translation Difference Account and recognised over the shorter of the loan repayment
period and 31st March, 2020. The unamortised balance is presented as Foreign Currency Monetary item Translation
Difference Account net of tax effect thereon.
(ii)
(s)
Premium / discount on forward exchange contracts, related to monetary items which are not intended for trading
or speculation purposes, are amortised over the period of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognised as income or as expense in the period in which such
cancellation or renewal is made.
Derivative Contracts
The Company enters into derivative contracts in the nature of full currency swaps, currency options, forward contracts
with an intention to hedge firm commitments and highly probable transactions. Derivative contracts with critical terms
matching that of the underlying hedged item (foreign currency loan) are accounted as per the policy stated for foreign
currency transaction and translation resulting in the foreign currency loan being treated as Indian rupee loan. All other
contracts are marked-to-market and losses are recognised in the Statement of Profit and Loss. Gains arising on the aforesaid
contracts are not recognised on grounds of prudence in accordance with the announcement of The Institute of Chartered
Accountants of India on Accounting for Derivatives issued in March 2008.
113
Annual Report FY2014-15
Government Grants
Government grants and subsidies are recognised when there is reasonable assurance that the Company will comply with
the conditions attached to them and the grant/subsidy will be received. Government grants whose primary condition is
that the company should purchase, construct or otherwise acquire capital assets are presented by deducting them from the
carrying value of the assets. The grant is recognised over the life of the depreciable assets by way of a reduced depreciation
charge. Other government grants and subsidies are recognised as income over the periods necessary to match them with
the costs for which they are intended to compensate on a systematic basis.
(u)
Segment Reporting
The Company identifies primary segments based on the dominant source and nature of risks and returns and the internal
organisation. The operating segments are the segments for which separate financial information is available and for which
operating profit/loss amounts are evaluated regularly by the Executive Management in deciding how to allocate resources
and in assessing performance.
The accounting policies adopted for segment reporting are in conformity with the accounting policies of the Company.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the segment. Inter segment revenue is accounted on the basis of
transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities
which relate to the Company as a whole and are not allocable to segments on a reasonable basis have been included under
unallocated revenue / expenses / assets / liabilities.
(v)
Taxes on Income
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the period.
Current tax is measured at the amount of tax expected to be payable on the taxable income for the year as determined in
accordance with the provisions of the Income Tax Act,1961.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance
Sheet date.
Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual
certainty that there will be sufficient future taxable income available to realise such assets. Other deferred tax assets are
recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets. Deferred
tax assets recognised are carried forward only to the extent that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax
liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and
where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation
laws.
(w)
114
Annual Report FY2014-15
FINANCIAL STATEMENTS
(y)
NOTE 3
SHARE CAPITAL
1.
Authorised:
Issued:
` in crore
Number of
shares
` in crore
27,00,00,000
270.00
27,00,00,000
270.00
25,48,42,598
254.84
25,48,42,598
254.84
25,47,56,278
254.76
25,47,56,278
254.76
86,320
0.06
86,320
0.06
4.
Number of
shares
Forfeited shares:
Amount originally paid-up on forfeited shares
254.82
254.82
Footnotes:
(a)
Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year:
As at
31-Mar-14
Number of
shares
` in crore
Number of
shares
` in crore
25,48,42,598
254.84
25,48,42,598
254.84
25,48,42,598
254.84
25,48,42,598
254.84
25,47,56,278
254.76
25,47,56,278
254.76
25,47,56,278
254.76
25,47,56,278
254.76
(b)
The Company has issued one class of ordinary shares having a par value of ` 10 per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts, in proportion to
their shareholding.
115
Annual Report FY2014-15
Number of
shares
Number of
shares
4,93,06,423
1,55,53,501
72,96,962
19.35
6.11
2.86
4,93,06,423
1,57,53,501
1,61,51,552
31-Mar-14
%
19.35
6.18
6.34
(d)
There are no shares reserved for issue under any employee stock option schemes or under agreements or contracts.
(e)
The Company has not issued any shares pursuant to contracts without payment being received in cash.
(ii)
(iii)
(iv)
The Company has not issued any shares as fully paid-up pursuant to scheme of amalgamation.
As at
31-Mar-2014
NOTE 4
1.
2.
3.
4.
5.
6.
7.
8.
Capital reserve:
At the commencement and at the end of the year
Capital redemption reserve:
At the commencement and at the end of the year
Securities premium:
At the commencement and at the end of the year
Debenture redemption reserve:
At the commencement and at the end of the year
Foreign currency translation reserve
(a)
At the commencement of the year
(b)
Add : Translation of monetary items (preference shares in Bio
Energy Venture)
(c)
Add : On account of merger of Homefield with TCL
(d)
Less: Realised during the year on redemption of partial preference
shares.
Foreign currency monetary items translation difference account
(net of taxes) :
(a)
At the commencement of the year
(b)
Less: Amount amortised during the year
Surplus on amalgamation:
At the commencement and at the end of the year
General reserve:
(a)
At the commencement of the year
(b)
Add : Transfer from statement of profit and loss
116
Annual Report FY2014-15
` in crore
` in crore
` in crore
0.66
0.66
0.10
0.10
1,258.21
1,258.21
240.00
240.00
63.07
110.33
-
63.07
3.59
169.81
63.07
(58.77)
58.77
-
20.45
20.45
1,171.94
1,128.33
43.61
1,171.94
1,171.94
-
FINANCIAL STATEMENTS
` in crore
` in crore
` in crore
2,691.98
2,463.52
20.65
2,671.33
637.97
-
2,463.52
436.07
131.74
318.44
63.58
-
254.76
40.98
43.61
2,691.98
5,446.41
2,927.28
5,788.45
As at
31-Mar-2014
NOTE 5
1.
` in crore
` in crore
Debentures:
(a)
Unsecured (footnote a)
250.00
250.00
250.00
2.
250.00
3.
` in crore
1,489.31
1,485.43
0.09
0.08
1,489.40
1,485.51
1,739.40
1,735.51
Footnotes:
(a)
10% Unsecured Redeemable Non-convertible Debentures of a face value ` 10 lakh each redeemable at par on 2 July, 2019.
Interest is payable annually.
(b)
The external commercial borrowings are due for repayments on 21st October, 2016 ` 319.54 crore (USD 60 million), on
23rd October, 2017 ` 389.78 crore (USD 63.27 million), on 22nd October, 2018 ` 390.06 crore (USD 63.27 million) and on
21st October, 2019 ` 389.93 crore (USD 63.46 million) along with interest at Libor + spread ranging from 1.65% to 1.95%
payable half yearly.
(c)
The Company has entered into an agreement with Department of Biotechnology (DBT) for a project on boosting crop
health and yield. DBT has approved a loan of ` 0.15 crore (previous year ` 0.15 crore). The Company has received three
installments of this loan aggregating to ` 0.11 crore (previous year ` 0.08 crore). The loan is repayable in 10 equal half yearly
installments beginning from 1st July, 2015. Current portion has been disclosed in note 11.
Foreign exchange gain of ` 73.19 crore (previous year ` 12.45 crore) on full currency swaps and forwards with critical terms
matching that of the external commercial borrowings have been netted off, resulting in the foreign currency loan being
treated as an Indian rupee loan.
117
Annual Report FY2014-15
` in crore
` in crore
` in crore
2.
(b)
(c)
10.54
7.18
1.17
68.91
57.43
79.45
65.78
270.68
281.39
191.23
215.61
270.68
281.39
As at
31-Mar-2014
NOTE 7
1.
Other liabilities:
(a)
Pension payable on employee separation scheme
(b)
Creditors for capital goods
(c)
Other payables
` in crore
` in crore
` in crore
1.67
1.67
0.54
0.62
2.44
3.60
3.60
0.48
1.19
As at
31-Mar-2014
NOTE 8
1.
` in crore
` in crore
` in crore
(b)
(c)
(d)
33.95
27.58
3.76
3.22
27.52
21.89
13.42
118
Annual Report FY2014-15
13.31
78.65
66.00
78.65
66.00
FINANCIAL STATEMENTS
2.
` in crore
` in crore
10.92
50.00
9.09
-
149.95
-
50.00
326.10
765.59
976.46
913.99
1,299.18
Footnotes:
(a)
Loans from banks on cash credit, working capital demand loan from bank and buyers credit are secured by hypothecation
of stocks of raw materials, finished products, stores and work-in-progress as well as book debts.
(b)
The Department of Fertilizers, Government of India, has notified Special Banking Arrangement scheme to address the
concern of delay in subsidy disbursement. This arrangement has been made by the Government with State Bank of India
Consortium (SBI Consortium). Loans under this scheme are secured by hypothecation of subsidy receivables.
As at
31-Mar-2014
NOTE 10
TRADE PAYABLES
1.
Acceptances
2.
` in crore
` in crore
773.01
671.30
1,075.40
527.43
1,848.41
1,198.73
Footnote:
(a)
According to information available with the Management, on the basis of intimation received from suppliers regarding their
status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due
to Micro and Small Enterprises under the said Act as at 31st March, 2015 as follows:
As at
31-Mar-2014
1.
2.
(a)
(b)
(a)
(b)
` in crore
` in crore
3.45
0.38
10.85
0.34
3.
4.
0.05
5.
3.50
0.38
4.
5.
` in crore
` in crore
` in crore
0.02
78.76
51.36
12.55
53.86
11.66
0.01
11.67
49.47
227.65
372.84
23.34
24.93
60.74
72.38
30.77
106.43
0.09
318.68
431.18
12.54
0.01
24.92
21.43
45.42
83.18
46.13
6.57
-
Footnote:
(a)
The Company had entered into an agreement with Department of Science and Technology for creation of capital assets for
Sulphate of Potash (SOP) Project. For the above Project, the Company has received three installments of Government grant
aggregating ` 14.40 crore (previous year ` 14.40 crore) and earned a cumulative amount of ` 0.55 crore (previous year
` 0.54 crore) as interest on unutilised grant. The Company has spent an amount of ` 14.98 crore (previous year ` 14.85
crore) and the net balance of ` 0.03 crore (previous year ` 0.09 crore) has been disclosed in Note 22 under the head others
within Other Current Assets.
As at
31-Mar-2014
NOTE 12
1.
2.
SHORT-TERM PROVISION
` in crore
` in crore
` in crore
49.27
39.39
0.94
0.54
1.08
0.96
42.91
43.64
0.98
2.45
1.23
0.97
318.44
63.58
254.76
40.98
84.08
101.34
93.60
75.39
464.73
507.64
567.44
616.71
Footnote:
(a)
The Board of Directors has recommended a dividend of 100% for the financial year 2014-15 and a special dividend of 25%
on the occasion of the Platinum Jubilee year of the Company, aggregating to ` 12.50 per share.
120
Annual Report FY2014-15
Vehicles
Office Equipment
Saltworks, Reservoirs
and Pans
Water Works
4.
5.
6.
7.
8.
9.
Intangible Assets
Under Development
11.
45.92
43.18
7.36
7.42
4,734.11
4,585.15
60.25
57.12
330.06
313.11
247.64
237.23
3,877.87
3,775.40
26.65
24.80
16.93
15.88
74.44
65.34
31.27
29.95
15.72
15.72
1.07
2.74
258.98
166.28
23.24
3.13
19.66
16.98
42.16
11.17
144.76
114.99
6.79
2.41
1.04
1.45
14.08
12.09
6.18
1.32
-
(0.12)
-
0.54
-
(17.21)
17.41
(0.41)
(0.21)
-
Gross Block
Additions Adjustment
during the
year
0.30
0.27
0.06
32.40
17.32
0.35
0.03
0.31
0.76
28.35
12.52
0.04
0.56
0.38
0.40
1.34
2.99
1.06
-
Deductions
46.69
45.92
7.09
7.36
4,960.69
4,734.11
83.37
60.25
332.16
330.06
306.90
247.64
3,993.87
3,877.87
33.19
26.65
17.59
16.93
87.72
74.44
36.39
31.27
15.72
15.72
As at
31-Mar-15
22.22
20.41
6.82
6.82
2,862.05
2,673.48
55.37
48.17
128.45
110.30
57.56
53.93
2,515.13
2,365.13
17.36
16.66
12.69
11.92
42.73
36.60
3.72
3.54
1.98
1.81
0.04
0.06
192.71
158.82
6.17
7.20
13.44
10.31
11.11
4.27
143.77
124.33
2.48
0.94
1.50
1.14
12.04
8.58
0.18
0.18
0.11
31.29
-
0.62
1.88
-
3.64
-
7.79
6.70
9.80
0.73
0.02
0.28
0.24
0.06
25.86
14.71
0.20
0.02
0.07
0.64
23.23
10.77
0.19
0.40
0.36
0.37
1.25
2.45
0.04
-
44.46
7.86
36.44
0.16
-
Depreciation / Amortisation
As at For the year Adjustment Deductions Impairment
1-Apr-14
24.54
22.22
6.73
6.82
3,060.19
2,862.05
63.42
55.37
149.48
128.45
75.30
57.56
2,645.47
2,515.13
20.38
17.36
13.85
12.69
57.16
42.73
3.86
3.72
As at
31-Mar-15
0.89
1,964.22
2,030.68
62.83
158.62
22.15
23.70
0.36
0.54
1,900.50
1,872.06
19.95
4.88
182.68
201.61
231.60
190.08
1,348.40
1,362.74
12.81
9.29
3.74
4.24
30.56
31.71
36.39
31.27
11.86
12.00
` in crore
Net Block
As at
31-Mar-15
Notes :
1.
# Includes cost of residential flats aggregating ` 1.82 crore (previous year ` 1.82 crore) for which legal formalities relating to transfer of title are pending.
2.
Additions during the year include ` 43.89 crore (previous year ` 0.80 crore) in respect of Scientific Research and Development Activities.
3.
The Company has recognised a non-cash write down of assets (including capital work-in-progress) of ` Nil crore (previous year ` 59.30 crore).
4.
Plant and Machinery capitalised and capital work in progress is net of government grants received (Refer note 11 (a)).
5.
Borrowing capitalised of ` 0.29 crore (previous year ` 0.35 crore) is included in the additions made during the year (Refer note 28(x)).
6.
In case of assets whose useful lives have ended, the carrying values, net of residual values as at 1st April, 2014 amounting to ` 20.65 crore (net of tax ` 10.64 crore) have been adjusted against the opening
reserves as on 1st April, 2014. The charge on account of depreciation for the year ended 31st March, 2015 is higher by ` 21.41 crore due to change in useful lives.
7.
The figures in light print are for the previous year.
Total
Capital Work-inProgress
10.
Total
Buildings :
(a) Factory Buildings
(b) Leasehold
Land :
(a) Freehold
As at
1-Apr-14
FIXED ASSETS
3.
2.
1.
Tangible Assets
(At cost)
NOTE 13
FINANCIAL STATEMENTS
121
NON-CURRENT INVESTMENTS
Face
Value
`
`
USD
1
1
MAD
Holdings
As at
31-Mar-15
Face
Value
`
9,73,41,610
57,53,81,426
479.97
-
2,398.38
479.97
2,398.38
1
1
1,000
2,06,666
166.26
166.26
USD
100
14,84,714
479.97
927.94
3,492.58
927.94
3,972.55
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
1
1
10
10
2
1
1
900
10
100
10
1,000
100
1,000
1,000
10
10
10
72,71,666
25,23,000
4,75,840
24,91,977
18,63,705
4,31,75,140
1,38,26,180
550
40,00,000
98,61,303
32,30,859
48,000
1,93,500
1,260
10,237
12,85,110
2,50,000
60,000
9.82
2.79
6.83
58.16
7.89
16.09
10.31
-
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.25
*
9.82
2.79
6.83
58.16
7.89
16.09
10.31
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.25
*
1,000
`
`
10
10
28,90,000
16,36,124
9.00
2.89
-
2.89
9.00
5,000
Holdings
As at
31-Mar-14
Total
` in
crore
9,73,41,610
57,48,81,426
479.97
-
2,395.26
479.97
2,395.26
1,000
2,06,666
166.26
166.26
100
15,16,214
479.97
832.21
3,393.73
832.21
3,873.70
1
1
10
10
2
1
1
900
10
100
10
1,000
100
1,000
1,000
10
-
72,71,666
41,23,000
4,75,840
24,91,977
18,63,705
4,31,75,140
1,38,26,180
550
40,00,000
98,61,303
32,30,859
48,000
1,93,500
1,260
10,237
12,85,110
-
9.82
4.57
6.83
58.16
7.89
16.09
10.31
-
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
-
9.82
4.57
6.83
58.16
7.89
16.09
10.31
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
-
1,000
28,90,000
-
2.89
-
2.89
-
10
-
0.50
0.50
0.50
0.50
120.89
600.86
270.52
3,763.10
391.41
4,363.96
113.67
593.64
270.27
3,664.00
383.94
4,257.64
600.86
0.11
3,762.99
0.11
4,363.85
593.64
3,664.00
4,257.64
# Shares can be transferred only with the prior approval of the Board of Directors of Tata Teleservices Ltd.
@ Reclassification from Current Investment to Non Current Investment
* value below ` 50,000/Abbreviations for Currencies
`
: Indian Rupees
USD : United States Dollars
MAD : Moroccan Dirhams
122
Total
` in
crore
5,000
600.86
593.64
3,710.45
3,762.99
2,951.38
3,664.00
FINANCIAL STATEMENTS
2.
` in crore
` in crore
` in crore
11.07
14.57
6.45
20.50
9.38
2.56
6.63
7.61
11.80
3.13
6.99
7.61
369.50
359.72
421.32
0.21
(0.21)
416.20
0.56
(0.56)
Footnote:
(a)
The Company has extended an unsecured subordinate loan to Tata Power Renewable Energy Limited (TPREL) for the
purpose of setting up a 25 MW photovoltaic solar power plant and associate infrastructure at Mithapur, Gujarat. The loan
carries an interest rate based on State Bank of India base rate plus 1.25%. The principal amount of the loan is mandatorily
convertible to equity of TPREL.
As at
31-Mar-2014
NOTE 16
1.
2.
3.
NOTE 17
` in crore
` in crore
11.04
0.26
1.40
12.70
16.14
6.75
22.89
CURRENT INVESTMENTS
Face
Holdings
Value
As at
Face
Holdings
Total Value
As at
31-Mar-14
` in crore
Total
` in crore ` in crore
Current Investments
(At lower of cost and fair value):
Investments in equity instruments
(fully paid up)
(i) Investment in Other Companies:
IFCI Venture Capital Funds Ltd.@
10
2,50,000
0.25
10
60,000
0.25
0.25
0.25
0.25
123
Annual Report FY2014-15
INVENTORIES
Raw materials
Work-in-progress (note 28 (xiii))
Finished goods (note 28 (xiii))
Stock in trade (acquired for trading) (note 28 (xiii))
Stores and spare parts and packing materials
Inventories include goods in transit :
(a)
Raw materials
(b)
Stock in trade (acquired for trading)
(c)
Stores and spares
` in crore
` in crore
649.73
33.26
339.21
670.65
116.18
1,809.03
500.96
20.64
96.75
74.89
117.32
810.56
225.63
280.83
1.59
102.46
3.07
0.12
As at
31-Mar-2014
NOTE 19
1.
2.
TRADE RECEIVABLES
Others:
(a)
Unsecured, considered good
(b)
Doubtful
(c)
` in crore
` in crore
` in crore
562.05
639.76
19.09
658.85
19.09
639.76
562.05
28.95
591.00
28.95
1,924.27
1,762.02
1,924.27
-
0.01
1,762.03
0.01
1,762.02
2,401.78
1,924.27
2,486.32
Footnote:
(a)
Trade receivables include ` 1,971.64 crore (previous year ` 1,800.23 crore) on account of subsidy receivable from the
Government. Of this an amount of ` 546.83 crore (previous year ` 620.53 crore) is due for more than six months.
As at
31-Mar-2014
NOTE 20
1.
2.
124
Annual Report FY2014-15
` in crore
` in crore
` in crore
560.53
0.82
0.37
561.72
60.14
839.98
900.12
64.87
0.10
965.09
12.58
574.30
11.76
976.85
55.28
505.25
FINANCIAL STATEMENTS
` in crore
` in crore
48.29
45.27
(b)
38.21
33.63
108.95
88.82
2.94
3.19
(c)
Advances to suppliers
(d)
Advances to employees
(e)
Other receivables
0.61
12.88
199.00
183.79
Footnote:
(a)
Advances to employees include ` * crore (previous year ` 0.01 crore) due from officer of the Company. Maximum balance
outstanding during the year ` 0.01 crore (previous year ` 0.01 crore).
* value below ` 50,000
As at
31-Mar-2014
NOTE 22
1.
2.
3.
4.
5.
` in crore
` in crore
3.26
0.76
21.38
5.10
7.40
37.90
18.03
0.71
30.32
5.46
3.52
58.04
Footnote:
(a)
NOTE 23
1.
2.
Sales:
(a)
Sales (footnote a) (note 28(xii))
Other operating income:
(a)
Insurance claims
(b)
Town income
(c)
Liabilities no longer required - written back
(d)
Miscellaneous income (footnote b)
` in crore
` in crore
` in crore
10,236.91
8,816.57
97.67
10,334.58
2.45
16.58
80.38
99.41
8,915.98
8.30
2.48
27.16
59.73
Footnotes:
(a)
Sales includes subsidy income of ` 2,942.24 crore (previous year ` 2,429.32 crore)
(b)
Miscellaneous income primarily includes sales of scrap ` 20.19 crore (previous year ` 24.35 crore) and market development
and support fees ` 33.18 crore (previous year ` 34.61 crore)
125
Annual Report FY2014-15
2.
3.
4.
5.
OTHER INCOME
Dividend income:
(a)
Current investments
(b)
Long-term Investments
(i)
Subsidiaries
(ii)
Joint ventures
(iii) Other
` in crore
` in crore
` in crore
48.79
49.25
23.36
43.97
26.07
93.40
142.19
22.39
29.47
25.33
77.19
126.44
26.82
15.79
0.18
42.86
1.13
59.96
10.31
0.18
15.25
194.75
0.03
0.03
16.49
202.92
7.42
0.17
17.27
1.96
1.27
9.04
Previous
year
NOTE 25
` in crore
` in crore
246.77
211.18
21.99
11.76
1.
2.
3.
0.03
0.03
4.
61.38
44.08
330.17
267.05
Previous
year
NOTE 26
1.
FINANCE COSTS
` in crore
` in crore
Interest expenses:
(a)
(b)
Other loans
161.21
150.78
13.50
20.09
174.71
2.
` in crore
126
Annual Report FY2014-15
170.87
12.07
14.45
186.78
185.32
FINANCIAL STATEMENTS
OTHER EXPENSES
1.
2.
3.
4.
Repairs - buildings
- machinery
` in crore
` in crore
95.35
90.42
326.34
270.44
1,034.95
814.75
8.82
7.34
71.06
72.14
- others
0.42
0.48
5.
Rent
44.75
41.43
6.
25.66
23.82
7.
8.
9.
10.
Insurance charges
11.
12.
13.
Provision for doubtful debts and advances (net) and bad debts written off
14.
15.
5.54
0.77
51.49
52.43
213.71
167.11
12.63
13.38
759.00
644.48
2.79
12.04
3.15
175.91
136.65
7.40
6.43
16.
10.20
17.
4.35
12.76
18.
213.19
185.17
3,072.81
2,545.94
` in crore
Previous
year
` in crore
2.37
2.04
Footnotes:
(a)
Auditors Remuneration
(i)
(ii)
0.73
0.26
(iii)
1.36
1.09
(iv)
0.04
0.10
(v)
0.36
4.50
3.85
1.50
127
Annual Report FY2014-15
` in crore
Footnotes:
(b) Note 25 and 27 of Statement of Profit and Loss includes
Payments to and provisions for employees, operating and other expenses and Directors fees / commission includes
remuneration to the Managing Director and Whole-time Directors.
(a)
Remuneration including ` 0.16 crore (previous year ` 0.14 crore) towards
Companys contribution to provident fund and superannuation fund.
2.96
2.73
(b)
Provision for post retirement obligation
3.46
0.45
(c)
Commission
4.00
3.35
(d)
Estimated value of benefits in cash or in kind
0.14
0.14
10.56
6.67
Footnote:
The above figures do not include provision for compensated absences and contribution to gratuity fund, as separate figures are
not available for the Managing Director and Whole-time Directors other than disclosed above.
Previous
year
` in crore
` in crore
(c)
Expenditure incurred on scientific research and development activities @
(i)
(ii)
(d)
19.65
1.64
0.26
14.71
1.89
0.82
Capital expenditure
(a)
Innovation Centre, Pune
43.80
0.70
(b)
Centre for agri-solutions and technology, Aligarh
0.09
0.10
(c)
Mithapur, Okhalamandal
7.18
@ The above figures are based on the separate accounts for the research and development (R&D) centres recognised
by the Department of Scientific and Industrial Research, Ministry of Science and Technology (DSIR) for in-house
research. Consonance with the DSIR Guidelines for in-house R&D Centres will be evaluated at the time of filing the
return with the DSIR.
Amount required to be spent by the Company during the year on CSR is ` 11.66 crore of which the Company has spent
` 10.20 crore. The Company has spent the following amounts during the year @.
Previous
year
` in crore
` in crore
a)
Health care, nutrition, sanitation and safe drinking water
2.09
b)
Environmental sustainability
2.07
c)
Poverty alleviation, livelihood enhancement and infrastructure support
1.98
d)
Education and vocational skill development
1.85
e)
Inclusive growth and empowerment
0.76
f)
Promotion and development of traditional arts and handicrafts
0.71
g)
Other approved activities
0.74
10.20
@ Expenditure incurred on CSR in the previous year prior to introduction of Section 135 of the Companies Act, 2013
is included in donations and contributions and have not been reclassified/regrouped as there was no requirement
for disclosure of such expenses in the previous year.
128
Annual Report FY2014-15
FINANCIAL STATEMENTS
(ii)
2014-15
2013-14
637.97
436.07
25,47,56,278
25.04
25,47,56,278
17.12
OTHER NOTES
` in crore
Nos.
`
Segment information:
Information about primary business segments:
(a)
(` in crore)
Inorganic chemicals
Fertilisers
Others
Elimination
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
3,103.88
2,879.56 6,227.26
2014-15
Total
2013-14
2014-15
2013-14
- 9,984.39
8,579.98
162.89
Total revenue
3,266.77
5,187.34
369.83
340.63
283.42
172.45
(162.89)
(131.11)
3,010.67 6,227.26
5,187.34
369.83
340.63
283.42
172.45
(162.89)
(131.11) 9,984.39
8,579.98
218.23
38.76
24.70
(47.74)
(53.51)
- 1,047.45
832.11
131.11
Result:
Segment result
791.64
642.69
264.79
Unallocated income
net of unallocated
expenditure
(6.58)
(77.91)
Finance costs
186.78
185.32
854.09
568.88
Tax expense
216.12
132.81
637.97
436.07
Other information:
(` in crore)
Inorganic chemicals
Segment assets
2013-14
2014-15
2013-14
Others
2014-15
2013-14
2014-15
Unallocated
2013-14
2014-15
Total
2013-14
2014-15
2013-14
1,808.32
1,904.91 4,290.35
3,299.43
88.14
111.51
176.49
109.08 5,505.34
5,733.75 11,868.64
11,158.68
Segment liabilities
529.33
484.31 1,646.49
1,047.90
42.55
93.21
38.69
29.32 3,568.31
3,802.71 5,825.37
5,457.45
Capital expenditure
99.01
95.48
30.85
57.40
12.36
10.33
21.86
24.40
164.08
187.61
119.91
101.37
61.12
51.14
1.68
1.35
10.00
4.96
192.71
158.82
44.30
15.00
59.30
19.63
22.85
16.02
0.38
0.56
0.45
0.44
(28.48)
197.55
84.29
237.42
Depreciation
Impairment of assets
(net of reversal)
Non-cash expenses
other than depreciation
and amortisation
(b)
2014-15
Fertilisers
92.31
Notes:
(i)
(ii)
129
Annual Report FY2014-15
Joint Ventures
Associate
Direct
Rallis India Limited, India
Bio Energy Venture - 1 (Mauritius) Private Limited,
Mauritius
Direct
Indo Maroc Phosphore
S. A., Morocco
Key
Management
Personnel
Mr. R. Mukundan,
Managing
Director
Mr. P. K. Ghose,
Executive
Director & CFO
Promoter Group
Tata Sons
Limited, India
Indirect
Indirect
Homefield Private UK Limited, United Kingdom
Alcad, United States of America
Tata Chemicals Africa Holdings Limited, United Kingdom JOil (S) Pte. Limited, Singapore
Tata Chemicals South Africa (Proprietary) Limited, South Africa The Block Salt Company Limited, United Kingdom
Tata Chemicals Magadi Limited, United Kingdom
Natronx Technologies LLC, United States of America
Magadi Railway Company Limited, Kenya
Kemex B.V., Netherlands @
Homefield 2 UK Limited, United Kingdom
Tata Chemicals Europe Holdings Limited, United Kingdom
Cheshire Salt Holdings Limited, United Kingdom
Cheshire Salt Limited, United Kingdom
British Salt Limited, United Kingdom
Brinefield Storage Limited, United Kingdom
Cheshire Cavity Storage 2 Limited, United Kingdom
Cheshire Compressor Limited, United Kingdom
Irish Feeds Limited, United Kingdom
New Cheshire Salt Works Limited, United Kingdom
Brunner Mond Group Limited, United Kingdom
Tata Chemicals Europe Limited, United Kingdom
Winnington CHP Limited
Brunner Mond B.V., Netherlands@
Brunner Mond Generation Company Limited, United Kingdom
Brunner Mond Limited, United Kingdom
Northwich Resource Management Limited, United Kingdom
Gusiute Holdings (UK) Limited, United Kingdom
Tata Chemicals North America (UK) Limited, United Kingdom*
Valley Holdings Inc., United States of America
Tata Chemicals North America Inc., United States of America
General Chemical International Inc., United States of America
General Chemical Great Britain Limited, United Kingdom
NHO Canada Holdings Inc., United States of America
General Chemical Canada Holding Inc., Canada
GCSAP Canada Inc., Canada***
Tata Chemicals (Soda Ash) Partners Holdings (TCSAPH), United States of America **
TCSAP LLC, United States of America
Tata Chemicals (Soda Ash) Partners (TCSAP), United States of America **
Tata Chemicals International Pte. Limited, Singapore
Grown Energy Zambeze Holdings Private Limited, Mauritius
Grown Energy (Pty) Limited, South Africa
Grown Energy Zambeze Limitada, Mozambique
Rallis Chemistry Exports Limited, India
Metahelix Life Sciences Limited (Metahelix), India
Zero Waste Agro Organics Limited (ZWAOL), India##
@
Brunner Mond B.V. and Kemax B.V. ceased to exist with effect from December 11, 2013.
*
Tata Chemicals North America (UK) Limited, a subsidiary was incorporated on 22nd August, 2014
**
a general partnership formed under the laws of the State of Delaware (USA).
***
GCSAP Canada Inc. dissolved as a subsidiary with effect from 28th May, 2014.
##
Rallis has acquired additional equity shares, consequent to which share has increased to 73.59% from 51.02% in ZWAOL
during the year.
130
Annual Report FY2014-15
0.04
0.45
2.79
0.16
For investments in related parties as at 31st March 2015 refer note 14.
Note :
205.36
-
1.93
-
10.85
18.05
3.88
0.01
-
0.19
6.25
5.78
27.39
16.14
*
-
1.47
4.04
0.06
28.41
-
(2.97)
-
0.09
4.04
Tata
Chemicals
Europe
Limited
36.64
-
22.73
125.23
-
Bio Energy
Venture - 1
(Mauritius)
Private
Limited,
Mauritius
Joint
Venture
0.05
-
25.26
9.70
1.97
35.80
-
(0.11)
-
43.59
7.92
7.78
0.72
0.41
(1.51)
-
63.65
5.96
4.10
6.31
18.80
9.94
0.46
1.07
2.51
440.94
-
(2.37)
-
20.60
22.80
0.99
3.17
0.37
0.44
1.03
0.61
-
1.19
1.19
1.19
1.19
0.08
0.22
336.52
301.29
43.97
29.47
(0.01)
-
799.01
690.60
0.11
-
Tata
Tata
Tata British Salt
Grown Indo Maroc
Chemicals Chemicals Chemicals
Limited,
Energy Phosphore
International
North
Magadi
U. K.
Zambeze
S.A.,
Pte Limited,
America
Limited,
Limitada,
Morocco.
Singapore Inc, United
U.K.
Mozambique
States of
America
Subsidiaries
Transactions with the related parties (as defined under AS-18) during the year ended 31st March 2015 and balances outstanding as at 31st March 2015
(b)
0.01
-
27.65
23.69
0.06
8.19
8.19
28.24
23.69
Tata Sons
Limited
0.01
0.01
0.01
10.56
6.67
Key
Management
Personnel
1.20
1.20
8.68
23.92
379.20
351.30
26.89
23.91
469.35
241.16
36.64
10.56
6.67
22.73
125.23
75.52
60.05
20.81
23.69
941.91
807.88
4.83
7.28
15.36
24.87
Total
(` in crore)
FINANCIAL STATEMENTS
131
The Company makes contribution towards provident fund, in substance a defined contribution retirement benefit
plan and towards pension, superannuation fund, a defined contribution retirement plan for qualifying employees. The
provident fund is administered by the Trustees of the Tata Chemicals Limited Provident Fund and the superannuation
fund is administered by the Trustees of the Tata Chemicals Limited Superannuation Fund. Under the schemes, the
Company is required to contribute a specified percentage of salary to the retirement benefit schemes to fund the
benefit.
On account of the above Contribution Plans, a sum of ` 12.78 crore (previous year ` 12.02 crore) has been charged
to the Statement of Profit and Loss.
(b)
The Company makes annual contributions to the Tata Chemicals Employees Gratuity Trust and to the Employees
Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, for funding the defined benefit
plans for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement or
death while in employment or on termination of employment. Employees, upon completion of the vesting period,
are entitled to a benefit equivalent to either half month, three fourth month and full month salary last drawn for
each completed year of service depending upon the completed years of continuous service in case of retirement or
death while in employment. Incase of termination, the benefit is equivalent to fifteen days salary last drawn for each
completed year of service in line with the Payment of Gratuity Act, 1972. Vesting occurs upon completion of five years
of continuous service.
The Company also provides post retirement medical benefits to eligible employees under which employees at
Mithapur who have retired from service of the Company are entitled for free medical facility at the Company hospital
during their lifetime. Other employees are entitled to domiciliary treatment exceeding the entitled limits for the
treatments covered under the Health Insurance Scheme upto slabs defined in the scheme. The floater mediclaim
policy also covers retired employees based on eligibility, for such benefit.
The Company provides pension, housing / house rent allowance and medical benefits to retired Managing and
Executive Directors who have completed ten years of continuous service in Tata Group and three years of continuous
service as Managing Director/Executive Director or five years of continuous service as Managing Director/Executive
Director. The directors are entitled to seventy five percent of last drawn salary for life and on death 50% of the pension
is payable to the wife for the rest of her life.
Family benefit scheme is applicable to all permanent employees in management, officers and workmen who have
completed one year of continuous service. Incase of untimely death of the employee, nominated beneficiary is
entitled to an amount equal to the last drawn salary till the normal retirement date of the deceased employee.
The most recent actuarial valuations of plan assets and the present values of the defined benefit obligations were
carried out at 31st March, 2015. The present value of the defined benefit obligations and the related current service
cost and past service cost, were measured using the Projected Unit Credit Method.
The following tables set out the funded status and amounts recognised in the Companys financial statements as at
31st March, 2015 for the Defined Benefits Plans.
(` in crore)
As at 31st March, 2015
Gratuity
1.
Post
Directors Family
retirement retirement benefit
medical obligations scheme
benefits
Gratuity
Post
Directors
retirement retirement
medical obligations
benefits
Family
benefit
scheme
28.52
22.97
14.27
69.52
23.60
23.05
15.07
3.81
1.32
0.31
1.27
4.08
0.57
0.31
1.35
Interest cost
6.19
2.66
2.06
1.36
5.66
1.93
1.85
1.29
7.58
3.27
3.99
(1.51)
(3.77)
3.25
(1.32)
(2.55)
0.43
(0.22)
Benefits paid
(7.72)
(0.84)
(1.01)
(1.00)
(5.13)
(0.83)
(0.92)
(0.89)
80.00
34.93
28.75
14.39
70.14
28.52
22.97
14.27
132
Annual Report FY2014-15
FINANCIAL STATEMENTS
2.
Post
Directors Family
retirement retirement benefit
medical obligations scheme
benefits
Gratuity
Post
Directors
retirement retirement
medical obligations
benefits
Family
benefit
scheme
77.14
74.07
6.08
5.98
Employer's contributions
3.85
0.84
1.01
1.00
2.01
0.83
0.93
0.89
2.05
0.43
0.00
(0.22)
Benefits paid
(7.72)
(0.84)
(1.01)
(1.00)
(5.13)
(0.83)
(0.93)
(0.89)
81.40
77.14
0.25
(1.40)
34.93
28.75
14.39
(6.75)
28.52
22.97
14.27
3.
Net employee benefit expense (recognised in employee cost) for the year:
(` in crore)
Post Directors
retirement retirement
medical obligations
benefits
Family
benefit
scheme
Gratuity
Post
retirement
medical
benefits
Directors
retirement
obligations
Family
benefit
scheme
4.08
0.57
0.31
1.35
3.81
1.32
0.31
1.27
6.19
2.66
2.06
1.36
5.66
1.93
1.85
1.29
(6.08)
(5.98)
5.53
3.27
3.99
(1.51)
(4.20)
3.25
(1.32)
(2.55)
0.43
(0.24)
0.19
9.21
7.25
6.79
1.12
(0.26)
5.75
0.84
0.09
3.00
0.98
1.23
0.97
0.94
1.08
0.96
8.13
6.41
4.
Categories of plan assets as a percentage of the fair value of total plan assets:
Gratuity
2014-15
2013-14
55
54
Corporate Bonds
32
32
10
11
100
100
133
Annual Report FY2014-15
Assumptions used in accounting for gratuity and compensated absences, post retirement medical benefits,
directors retirement obligations and family benefit scheme:
Gratuity and
compensated
absences
8.00%
9.05%
8.50%
8.50%
10% for first
year and 7.5%
thereafter
10% for first
year and 7.5%
thereafter
Discount rate
Expected rate of return on plan
assets
Increase in compensation cost
Family Benefit
Scheme
8.00%
9.05%
NA
NA
10% for first
year and 7.5%
thereafter
10% for first
year and 7.5%
thereafter
6.
7.
NA
8.00%
8.00%
NA
NA
8.00%
8.00%
NA
Pension increase rate
NA
NA
5.00%
NA
NA
NA
5.00%
NA
(a)
Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet
date for the estimated term of the obligations.
(b)
Expected rate of return on plan assets is based on the average long term rate of return expected on investments
of the Fund during the estimated term of the obligations.
(c)
The estimates of future salary increases, considered in actuarial valuation, take into account the inflation,
seniority, promotion and other relevant factors.
Effect of change in assumed health care cost trend rate for post retirement medical benefits:
(` in crore)
2014-15
2013-14
1% increase 1% decrease
1% increase 1% decrease
Effect on the aggregate of the service cost and
0.87
(0.81)
0.76
(0.72)
interest cost
Effect on defined benefit obligation
6.56
(5.36)
3.99
(4.74)
Experience adjustments:
(` in crore)
2014-15
2013-14
2012-13
2011-12
2010-11
Gratuity
Defined benefit
obligation
Plan assets
Surplus / (deficit)
Experience
adjustments on plan
liabilities
Experience
adjustments on plan
assets
Defined benefit
obligation
Plan assets
Surplus / (deficit)
Experience
adjustments on plan
liabilities
Experience
adjustments on plan
assets
134
Annual Report FY2014-15
2014-15
2013-14
2012-13
2011-12
2010-11
80.00
81.40
1.40
70.14
77.14
7.00
69.52
74.07
4.55
64.12
61.10
(3.02)
58.13
57.80
(0.33)
28.75
(28.75)
22.97
(22.97)
23.05
(23.05)
15.34
(15.34)
18.57
(18.57)
0.61
1.56
0.99
5.25
(1.64)
0.46
0.29
5.20
(3.53)
2.82
0.43
5.68
1.40
Post retirement medical benefits
(4.35)
1.87
34.93
(34.93)
28.52
(28.52)
23.59
(23.59)
15.63
(15.63)
14.40
(14.40)
14.39
(14.39)
14.27
(14.27)
15.07
(15.07)
14.95
(14.95)
11.36
(11.36)
1.66
(1.68)
5.09
1.65
(1.53)
(1.89)
(1.58)
(1.20)
2.89
(0.85)
FINANCIAL STATEMENTS
The details of the Companys post-retirement and other benefit plans for its employees given above are certified by
the actuary and relied upon by the Auditors.
The proportionate share of assets, liabilities, income and expenditure, contingent liabilities and capital commitments
of the Joint Ventures are as given below:
(` in crore)
Indo Maroc
Phosphore S. A.
Kemex B.V.
Alcad
Natronx
Technologies LLC
Morocco
Netherlands
United States of
America
Singapore
United Kingdom
United States of
America
Country of Incorporation
Percentage of ownership interest
49.99%
50.00%
33.78%
2013-14
2014-15
2013-14
2014-15
2013-14
Liabilities
119.74
103.58
0.51
16.63
14.07
Assets
286.75
302.41
0.94
16.63
14.07
Income
577.04
534.89
149.84
137.70
Expenditure
536.20
531.10
99.29
91.20
40.84
3.79
50.55
46.50
(11.09)
(vi)
33.33%
2014-15
2014-15
50.00%
33.33%
2013-14
2014-15
2013-14
2014-15
2013-14
1.52
1.41
1.06
1.99
4.75
3.62
30.43
38.17
3.29
3.74
129.03
119.09
2.60
2.56
6.09
7.60
16.04
16.32
13.69
13.11
5.45
6.44
22.39
24.51
(10.55)
0.64
1.16
(6.35)
(8.19)
Contingent Liabilities
Capital Commitments
0.91
2.34
The Company has made provision for various obligations and disputed liabilities based on its assessment of the
amount it estimates to incur to meet such obligations, details of which are given below.
(` in crore)
Warranty
As at
2014-15
As at
As at
2013-14 2014-15
Others
As at
As at
2013-14 2014-15
Total
As at
As at
As at
2013-14 2014-15
2013-14
Opening balance
0.12
0.10
12.57
12.57
62.70
43.27
75.39
55.94
0.45
0.58
29.57
22.99
30.02
23.57
(0.19)
(0.56)
(0.68)
(3.56)
(0.87)
(4.12)
(3.20)
(3.20)
0.38
0.12
12.57
12.57
88.39
62.70
101.34
75.39
Closing balance
(b)
Site restoration
expenses
Nature of provisions:
(i)
Warranty: The Company gives warranties on certain products that fail to perform satisfactorily during
the warranty period. Provision made as at March 31, 2015 represents the amount of the expected cost
of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be
within a period of one year from the date of Balance Sheet.
(ii)
Provision for site restoration expenses is in respect of afforestation and bio-diversity charges.
(iii)
Other provisions represent mainly provision for litigations that are expected to materialise in respect of
matters in appeal and expected tax liability in respect of indirect and other taxes.
135
Annual Report FY2014-15
As on 31st March, 2015 the Company has the following derivative instruments outstanding:
(in Million)
Hedged Exposure
Currency
As at
2014-15
As at
2013-14
USD
USD
USD
146.49
122.49
87.19
160.89
109.22
-
CHF
0.33
USD
EUR
35.40
0.88
50.67
1.27
USD
15.00
15.00
USD
235.00
235.00
USD
15.00
15.00
Foreign Currency
Forward Contracts
USD / INR
USD / INR
USD / INR
CHF / INR
The year-end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as
under:
Foreign
Currency
As at 2014-15
Amount in Foreign
` in crore
Currency (in Million)
As at 2013-14
Amount in Foreign
` in crore
Currency (in Million)
Receivables
USD
SGD
JPY
GBP
EUR
CHF
48.18
0.03
1.60
0.17
0.52
0.06
301.11
0.12
0.08
1.59
3.51
0.39
29.27
0.03
0.01
1.06
0.00
175.38
0.12
0.09
8.78
0.02
USD
JPY
GBP
EUR
CHF
AUD
70.07
3.50
0.08
0.89
0.18
-
437.91
0.18
0.72
5.98
1.14
-
30.44
0.02
2.10
0.37
0.01
182.40
0.17
17.38
2.54
0.08
Payables
(viii) Contingent liabilities and commitments (to the extent not provided for):
(i)
Contingent liabilities:
(a)
Guarantees:
(i)
Bank Guarantees issued by Banks on behalf of the Company ` 208.45 crore (previous year ` 130.46 crore).
These are covered by the charge created in favour of the Companys bankers by way of hypothecation of
stocks and debtors.
136
Annual Report FY2014-15
FINANCIAL STATEMENTS
(b)
Guarantees provided by the Company to third parties on behalf of subsidiaries aggregates USD 360.40
million and GBP 2.76 million (` 2,277.99 crore) (previous year USD 390.40 million (` 2,339.08 crore)).
The purpose of the guarantees are as follows:
(a)
USD 344.40 million, ` 2,152.50 crore (previous year USD 374.40 million, ` 2,243.21 crore)
has been provided as security for the term loans from banks to Homefield Pvt. UK Limited, Tata
Chemicals Magadi Limited and Tata Chemicals International Pte. Limited.
(b)
USD 10 million, ` 62.50 crore (previous year USD 10 million, ` 59.92 crore) and USD 6 million,
` 37.50 crore (previous year USD 6 million, ` 35.95 crore) has been provided as security for the
interest rate swap and working capital loan respectively taken by Tata Chemicals International
Pte. Limited from banks.
(c)
GBP 2.76 million, ` 25.49 crore (previous year GBP Nil, ` Nil) has been provided to the Secretary
of State for Business, Innovation and Skills, Department for Business, Innovation and Skills,
London as parent guarantee in connection with the grant received by Tata Chemicals Europe
Limited under the Industrial Development Act 1982.
Claims not acknowledged by the Company relating to cases contested by the Company and which, in the
opinion of the Management, are not likely to devolve on the Company relating to the following areas:
(i)
(ii)
(iii)
(iv)
(ix)
As at
2014-15
21.70
9.75
18.38
(` in crore)
As at
2013-14
7.31
9.47
56.61
8.79
5.63
160.29
140.60
46.93
35.76
(c)
Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.
(ii) Commitments:
(a)
Estimated amount of contracts remaining to be executed on capital account and not provided for
` 77.38 crore (previous year ` 24.47 crore).
(b)
For commitments related to derivatives and leases refer note 28 (vii) and 28 (ix) respectively
Operating leases:
As a lessee
(a)
General description of significant leasing arrangements :
The payments made by the Company as lessee in accordance with operational leasing contracts or rental agreements
are expensed proportionally during the lease or rental period respectively. The Company has entered into operating
lease arrangement for storage tank from a vendor. The leases are non cancellable and are for a period of 15 years with
an option for renewal by a further period of 10 years based on mutual agreements of all the parties.
(b)
(c)
As at
2014-15
53.13
(` in crore)
As at
2013-14
69.81
17.19
35.94
-
16.68
53.13
-
63.49
59.63
137
(x)
The lease deposit of ` Nil (previous year ` 25 crore) for plant and machinery remaining with the lessors is provided
over the useful life of the asset and consequently a net amount of ` Nil (previous year ` Nil) has been charged to the
Statement of Profit and Loss on the principle of matching of revenue and costs.
As at
2014-15
As at
2013-14
0.29
0.35
Details of unutilised amounts out of issue of securities for the specific purpose:
During 2010-11, the Company issued Equity shares to Tata Sons Limited amounting to ` 363.40 crore to fund various growth
plans and projects. As at 31st March, 2015, this balance of ` 363.40 crore (previous year ` 363.40 crore) is pending utilisation
for the specified activities and this unutilised amount has been kept invested in bank fixed deposits / money market mutual
funds, pending final utilisation.
Manufactured goods:
Soda Ash
Sodium Bicarbonate
Caustic Soda
Bromine
Vacuum and Iodised Salt #
Gypsum
Cement
Clinker
Customised Fertiliser
NP 20:20
Urea
Diammonium Phosphate (DAP)
Nitrogen Phosphate Potash (NPK)
Single Super Phosphate
Sulphuric Acid
Others
Total - Sale of manufactured goods
Traded goods:
Solar Evaporated Salt I-shakti
Diammonium Phosphate (DAP)
Muriate of Potash (MOP)
Soda Ash
Sodium Tripolyphosphate (STPP)
Fertiliser
Pulses
Others
Total Sale of traded goods
Total Sales
# Sales of Vacuum and Iodised Salt includes free issues under sales promotion schemes.
138
Annual Report FY2014-15
Sales
2014-15
2013-14
1,499.93
186.30
19.20
20.68
1,082.83
10.15
219.06
6.80
66.73
155.05
2,263.85
292.68
1,445.94
207.17
47.01
43.61
7,566.99
1355.14
165.33
18.88
21.92
990.66
10.22
219.69
9.79
34.85
1865.50
894.09
890.81
198.79
50.04
53.09
6,778.80
138.90
1,205.34
323.73
35.46
45.74
658.40
239.54
22.81
2,669.92
10,236.91
143.75
669.87
417.88
55.75
35.63
575.67
131.80
7.42
2,037.77
8,816.57
FINANCIAL STATEMENTS
Work-in-progress
As at
31-Mar-15
As at
31-Mar-14
As at
31-Mar-15
As at
31-Mar-14
20.41
12.62
4.02
2.98
Sodium Bicarbonate
2.25
1.76
Bromine
0.03
0.04
0.19
0.18
34.19
31.27
Soda Ash
20.04
10.14
Gypsum
Clinker
3.22
1.29
Cement
1.63
0.31
3.40
1.16
4.63
4.57
4.90
8.08
0.12
1.11
24.81
10.81
Ammonia
Customised Fertiliser
Urea
Diammonium Phosphate (DAP)
0.70
1.76
155.11
1.35
NP 20:20
52.43
27.02
17.85
Sulphuric Acid
1.75
1.72
Phosphoric Acid
2.42
2.53
Sulphonic Acid
0.03
0.03
Others
8.31
5.33
0.86
0.50
339.21
96.75
33.26
20.64
242.46
(58.35)
12.62
(5.85)
10.71
6.69
Soda Ash
22.66
1.17
5.36
6.61
375.23
1.92
126.55
0.92
Others - Trading
130.14
57.58
670.65
74.89
595.76
(65.99)
1,009.86
171.64
33.26
20.64
850.84
(130.19)
A+B
139
Annual Report FY2014-15
Limestone @
Liquid Ammonia #
Salt *
Coke
Anthracite coal
Indonesian coal
South African coal
Soda ash - Imported
Natural Gas
Regasified Liquified Natural Gas (RLNG)
Customised Fertiliser
Phosphoric Acid
Ammonia
Muriate of Potash (MOP)
Rock
Sulphur
Soda Ash
Neem Oil
Other Raw Materials **
Packing Materials
2014-15
209.61
9.99
62.30
100.76
34.74
23.83
28.11
64.62
465.29
717.05
45.55
828.84
404.09
433.28
161.30
93.58
2.38
4.07
106.94
326.34
4,122.67
(` in crore)
2013-14
180.61
9.40
75.47
102.80
45.44
28.22
23.82
30.60
443.38
489.19
23.11
794.51
328.82
306.20
161.87
70.21
2.03
2.94
89.01
270.44
3,478.07
Includes ` 0.42 crore (previous year ` (0.62) crore) pertaining to wages, salaries and other revenue account
Includes ` Nil crore (previous year ` 0.64 crore) pertaining to wages, salaries and other revenue account
Includes ` 7.50 crore (previous year ` 5.11 crore) pertaining to wages, salaries and other revenue account
**
Includes ` 9.86 crore (previous year ` 8.26 crore) pertaining to wages, salaries and other revenue account
2014-15
2,193.24
1,905.10
6.94
9.08
4,114.36
2013-14
1,963.70
910.56
11.99
33.18
2,919.43
Value of Import has been arrived on the basis of INCO terms agreed with the vendor.
2014-15
2013-14
1.82
2.22
47.36
49.97
4.89
20.61
54.07
72.80
Expenditure ` 1.82 crore (previous year ` 2.22 crore) at gross of TDS and ` 1.46 crore (previous year ` 2.20 crore)
net of TDS for the year 2014-15
Expenditure is gross of withholding tax.
Technical know-how fees @
Interest #
Payments on other accounts #
140
Annual Report FY2014-15
FINANCIAL STATEMENTS
2014-15
2,757
5,74,39,319
57.44
0.39
7
2013-14
2,868
5,45,50,344
54.55
0.01
6
3,85,885
March-2014
7,603
March-2013
2014-15
11.02
49.01
43.97
104.00
2013-14
10.04
32.20
29.47
71.71
(xix) Value of Imported and Indigenous raw materials, stores, components and spare parts consumed:
2014-15
Raw Materials
(a)
(b)
#
(xx)
Imported
Indigenous #
` in crore
2,203.72
1,592.61
3,796.33
%
58.05
41.95
100.00
2014-15
Stores, Components
and Spare Parts
%
` in crore
9.77
10.25
85.58
89.75
95.35
100.00
2013-14
Raw Materials
` in crore
1,883.88
1,323.75
3,207.63
%
58.73
41.27
100.00
2013-14
Stores, Components
and Spare Parts
` in crore
%
11.62
12.85
78.80
87.15
90.42
100.00
Includes ` 17.78 crore (previous year ` 13.39 crore) pertaining to wages, salaries and other revenue accounts.
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
141
Annual Report FY2014-15
FINANCIAL STATEMENTS
d)
e)
f)
i.
ii.
iii.
Place : Mumbai
Date : 27th May, 2015
143
Annual Report FY2014-15
Minority Interest
3.
Non-Current Liabilities
(a)
Long-Term Borrowings
(b)
Deferred Tax Liabilities (net)
(c)
Other Long-Term Liabilities
(d)
Long-Term Provisions
4.
II.
Current Liabilities
(a)
Short-Term Borrowings
(b)
Trade Payables
(c)
Other Current Liabilities
(d)
Short-Term Provisions
TOTAL
ASSETS
1. Non-Current Assets
(a)
Fixed Assets
(i)
Tangible Assets
(ii)
Intangible Assets
(iii) Capital Work-in-Progress
(iv) Intangible Assets held under Development
(b)
(c)
(d)
(e)
(f )
2.
Current Assets
(a)
Current Investments
(b)
Inventories
(c)
Trade Receivables
(d)
Cash and Bank Balance
(e)
Short-Term Loans and Advances
(f )
Other Current Assets
TOTAL
Notes forming an integral part of Consolidated Financial Statements
In terms of our report attached
144
Annual Report FY2014-15
` in crore
3
4
254.82
5,296.89
5
6
7
8
9
10
11
12
` in crore
5,551.71
673.49
254.82
5,310.69
5,565.51
655.22
7,642.45
6,883.07
276.92
164.91
1,495.92
8,820.82
6,937.96
20,805.61
1,486.54
2,039.05
926.68
678.09
5,130.36
20,171.91
5,708.25
227.16
17.16
1,689.88
1,293.19
2,643.07
2,237.99
763.71
13
4,373.25
28.69
169.69
19.62
4,591.25
4,231.69
52.68
452.69
14.90
4,751.96
29(b)
14
6
15
16
6,956.99
437.42
20.96
523.25
98.85
12,628.72
6,722.61
434.21
85.92
503.83
325.86
12,824.39
8,176.89
20,805.61
6.67
1,649.04
3,240.87
1,753.00
611.97
85.97
7,347.52
20,171.91
17
18
19
20
21
22
5.50
2,626.41
3,441.79
1,464.26
569.36
69.57
1 - 30
For and on behalf of the Board
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
Note
As at
31-Mar-2014
` in crore
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2015
I.
II.
REVENUE
(a) Revenue from Operations (Gross)
(b) Less: Excise Duty
(c) Net Revenue from Operations
Other Income
Note
` in crore
23
17,569.22
366.28
24
III.
IV.
IX.
X.
XI.
XII.
XIII.
17,202.94
117.97
16,227.41
342.06
15,885.35
142.42
17,320.91
16,027.77
4,839.80
3,053.04
4,341.37
1,812.55
(917.18)
1,255.77
454.03
463.14
6,814.09
15,962.69
1,358.22
199.71
1,158.51
108.94
1,214.53
579.46
471.24
6,598.36
15,126.45
901.32
1,420.21
(518.89)
351.12
807.39
5.40
205.53
596.46
246.90
(83.78)
(1.33)
126.99
288.78
(807.67)
3.33
221.00
(1,032.00)
23.41
23.41
(40.51)
(40.51)
29
350.91
(1.70)
(2.85)
4.76
30(i)
1 - 30
For and on behalf of the Board
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
25
26
27
13
28
` in crore
Previous
year
` in crore
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
145
Annual Report FY2014-15
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31st March, 2015
Previous
year
A
` in crore
` in crore
1,158.51
(518.89)
463.14
471.24
Impairment of assets
196.95
983.68
Finance costs
454.03
579.46
Interest income
(36.79)
(66.20)
Dividend income
(74.86)
(76.19)
(0.47)
(0.27)
(3.37)
(0.03)
539.32
144.76
13.55
4.71
50.22
332.43
(39.19)
(16.68)
0.11
180.31
34.26
166.03
(2.95)
4.44
2,752.46
2,188.80
32.64
2.98
Inventories
(928.31)
(87.53)
(222.00)
464.06
1,634.79
2,568.31
(361.22)
(230.68)
1,273.57
2,337.63
(605.60)
(702.62)
40.69
108.81
146
Annual Report FY2014-15
3.88
19,326.64
10,589.73
(9.00)
(0.50)
(19,324.44)
(10,595.08)
(187.73)
(1.50)
38.33
65.58
74.86
76.19
(12.83)
(13.34)
(655.20)
(472.73)
FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT for the year ended 31st March, 2015 (contd.)
Previous
year
C
` in crore
` in crore
2,187.68
5,622.11
(2,371.41)
(6,406.70)
(52.43)
(442.96)
(579.79)
(0.82)
(0.67)
(157.53)
(152.35)
0.36
0.63
(302.62)
(296.07)
(1,087.30)
(1,865.27)
(468.93)
(0.37)
1,735.98
1,826.49
(8.09)
(90.14)
1,258.96
1,735.98
23.79
32.02
Previous years figures have been regrouped / reclassified wherever necessary to make them comparable with the current
years figures.
Sanjiv V. Pilgaonkar
Partner
Mumbai, 27th May, 2015
Rajiv Chandan
General Counsel & Company Secretary
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
147
Annual Report FY2014-15
CORPORATE INFORMATION
Tata Chemicals Limited (the Company) is a public limited company domiciled in India. Its shares are listed on two stock
exchanges in India - the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is engaged
in diversified businesses dealing in Inorganic Chemicals, Fertilisers, Other Agri inputs, Water purifiers, Nutritional solutions
and Pulses. The Company has a global presence with key subsidiaries in United Kingdom (UK), Kenya and United States of
America (US) that are engaged in the manufacture and sale of soda ash, industrial salt and related products.
NOTE 2
Basis of Consolidation
(a)
(b)
Use of Estimates
The presentation of the financial statements, in conformity with Indian GAAP, requires the Management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Management believes that the estimates used in the preparation of the consolidated financial
statements are prudent and reasonable, future results could differ, the differences between the actual results and the
estimates are recognised in the period in which the results are known / materialise.
(c)
Principles of Consolidation
The financial statements of the subsidiary companies, joint ventures and associates used in the consolidation are drawn up
to the same reporting date as of the Company, i.e. for the year ended 31st March, 2015.
The consolidated financial statements have been prepared on the following basis:
I
The financial statements of the Company and its subsidiary companies have been consolidated on a line-by-line basis
by adding together the book values of like items of assets, liabilities, income and expenses, after fully eliminating
intra-group balances and intra-group transactions and resulting unrealised profit or losses, unless cost cannot be
recovered, as per the applicable Accounting Standard in India.
II
Interests in joint ventures have been accounted by using the proportionate consolidation method as per AS 27
Financial Reporting of Interests in Joint Ventures. The intra-group balances and intra-group transactions and
unrealised profits or losses are eliminated to the extent of the Group proportionate share.
III
An associate is an enterprise in which the Company has significant influence and which is neither a subsidiary nor a
joint venture of the investor. The consolidated financial statements include the share of profit / loss of the associate
company which has been accounted as per the equity method as per AS 23 Accounting for Investments in Associates
in consolidated financial statements., and accordingly, the share of profit / loss of the associate company (the loss
being restricted to the cost of investment) has been added to / deducted from the cost of investments. The difference
between the cost of investment in the associate and the share of net assets at the time of acquisition of shares in the
associate is recognised in the consolidated financial statements as Goodwill or Capital reserve as the case may be,
which is included in the carrying amount of investments.
IV
The excess of the cost to the Company of its investment in subsidiaries and joint ventures over the Companys
portion of equity as at the dates on which the investments in subsidiary companies and joint ventures were made is
recognised in the consolidated financial statements as Goodwill on Consolidation. The said goodwill is not amortised
148
Annual Report FY2014-15
FINANCIAL STATEMENTS
The consolidated financial statements are presented, to the extent applicable, in accordance with the requirements
of Schedule III of the 2013 Act as applicable to the Companys separate financial statements. Differences if any, in
accounting policies have been disclosed separately.
VI
The operations of the Companys subsidiaries and joint ventures are considered as non-integral operations for the
purpose of consolidation.
Minority interest in the net assets of the consolidated subsidiaries consists of:
VII
a)
The amount of equity attributable to minority shareholders at the date on which the investment in the
subsidiary companies were made.
b)
The minoritys share of movements in equity since the date the parent - subsidiary relationship comes into
existence.
Minority interest in share of net result for the year is identified and adjusted against the profit after tax of the
Group. Excess of loss, if any, attributable to the minority over and above the minority interest in the equity of
the subsidiary is absorbed by the Group.
(d) Particulars of subsidiaries, joint ventures and associate have been considered in the preparation of the consolidated
financial statements:
Name of the Company
Country of Incorporation
India
50.06%
India
India
Subsidiaries
India
100%
100%
100%
100%
75%
75%
TCSAP LLC
75%
Canada
100%
Canada
75%
United Kingdom
100%
100%
Homefield 2 UK Limited
United Kingdom
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
149
Annual Report FY2014-15
Country of Incorporation
United Kingdom
100%
Subsidiaries
Northwich Resource Management Limited
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
United Kingdom
100%
Mauritius
100%
Mauritius
100%
Singapore
100%
South Africa
100%
South Africa
100%
Kenya
100%
Mozambique
95%
Rallis has acquired additional equity shares, consequent to which share has increased to 73.59% from 51.02% in
ZWAOL during the year.
**
a general partnership formed under the laws of the State of Delaware (USA).
***
GCSAP Canada Inc. dissolved as a subsidiary with effect from 28th May, 2014.
Brunner Mond B. V., a subsidiary cease to exist with effect from 11th December, 2013 via dissolution order dated
24th September, 2014. The dissolution does not have a material effect on the consolidated financial statement.
Joint Ventures
Alcad
The Block Salt Company Limited
Joil (S) Pte. Limited and its subsidiaries
Indo Maroc Phosphore S. A.
Natronx Technologies LLC
Canada
25.33%
Associate
EPM Mining Ventures Inc.
Promoter Group
Tata Sons Limited
India
Kemax B.V., a jointly controlled entity cease to exist with effect from 11th December, 2013 via dissolution order dated
24th September, 2014. The dissolution does not have a material effect on the consolidated financial statement.
150
Annual Report FY2014-15
FINANCIAL STATEMENTS
(f)
(g)
Depreciation for the Company and its domestic subsidiaries has been provided as per Section 123 of the 2013 Act
on a straight line method basis (SLM) over the estimated useful lives. Management believes based on a technical
evaluation that the revised useful lives of the assets reflect the periods over which these assets are expected to be
used, which are as follows:
151
Annual Report FY2014-15
Depreciation for UK and Kenyan subsidiaries is provided on all tangible fixed assets, other than freehold land at rates
calculated to write off the cost, less estimated residual value, of each asset on a straight line basis over its expected
useful life as follows
Buildings (including leasehold improvements)**
Plant and Machinery
Mines and quarries
19-25 years
3-20 years
143 years
(i)
Investments
Long term investments are carried individually at cost. Provision for diminution is made to recognise a decline, other than
temporary, in the value of such investments. Current investments are carried individually, at lower of cost and fair value. Cost
of investments includes acquisition charges such as brokerage, fees and duties.
Investments that are readily realisable and are intended to be held for not more than one year from the date, on which such
investments are made, are classified as current investments. All other investments are classified as long term investments.
On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or credited to
the Consolidated Statement of Profit and Loss.
152
Annual Report FY2014-15
FINANCIAL STATEMENTS
Inventories
Inventories are valued at the lower of cost on weighted average basis (except two foreign subsidiaries and two JVs which are
on FIFO basis constituting 10% (previous year 10%) of the total inventory value) and net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to their present
location and condition, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and
finished goods include appropriate proportion of overheads and, where applicable, excise duty. Net realisable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary
to make the sale.
(k)
Revenue Recognition
Sale of Goods
Revenue from sale of goods is recognised, net of returns including estimated returns where applicable, and trade discounts,
rebates, sales tax and value added tax, when all significant risks and rewards of ownership of the goods have been passed to
the buyer, usually on delivery of goods. In respect of Urea, sales are recognised based on provisional rates of group concession
as notified under the New Pricing Scheme. Equated freight claims and escalation claims for Urea sales are estimated by the
Management based on the norms prescribed or notified under the said Scheme. In case of complex fertilisers, sales include
price concession, as notified under the Nutrient Based Subsidy policy, or as estimated by the Management based on the
norms prescribed.
Income from Services
Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs
are incurred. Foreseeable losses on such contracts are recognised when probable.
(l)
Other Income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate
applicable. Dividend income is accounted for when the right to receive income is established.
(m)
Insurance claims
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there
is no uncertainty in receiving the claims.
(n)
(o)
Leases
Assets taken on lease by the Group in its capacity as lessee, where the Group has substantially all the risks and rewards of
ownership are classified as finance lease. Such leases are capitalised at the inception of the lease at lower of the fair value or
the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental
paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the
outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are
recognised as operating leases. Lease rentals under operating leases are recognised in the Consolidated Statement of Profit
and Loss on a straight-line basis.
(p)
(q)
Employee Benefits
(A)
(ii)
(iii)
(a)
In case of accumulated compensated absences, when employees render service that increase their
entitlement of future compensated absences; and
(b)
(B)
In respect of overseas subsidiaries and joint ventures, the liabilities for employee benefits are determined and
accounted as per the regulations and principles followed in the respective countries.
(i)
(ii)
154
Annual Report FY2014-15
FINANCIAL STATEMENTS
(s)
Compensation payable to employees who have opted for retirement under Early Separation Scheme is amortised
over the period for which benefit is expected. The liability has been calculated on the basis of net present value of the
future payments of pension.
(ii)
Compensation paid / payable to employees who have opted for retirement under Voluntary Retirement Scheme
including ex-gratia is charged to Consolidated Statement of Profit and Loss in the year of separation.
Finance Costs
Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are
charged to Consolidated Statement of Profit and Loss, over the tenure of the loan. Fees and other transaction costs incurred
on origination of the loan are amortised over the tenure of the loan on a straight-line basis. Borrowing costs, allocated to
and utilised for qualifying fixed assets, pertaining to the period from commencement of activities relating to construction/
development of the qualifying assets upto the date the assets are substantially ready for their intended use which generally
coincides with the date of capitalisation, is added to the cost of the assets. Capitalisation of borrowing costs is suspended
and charged to the Consolidated Statement of Profit and Loss during extended periods when active development activity
on the qualifying assets is interrupted.
Borrowing cost includes interest and amortisation of ancillary costs incurred in connection with the arrangement of
borrowings.
(t)
On initial recognition, all foreign currency transactions are converted and recorded at exchange rates prevailing on
the date of the transaction. As at the reporting date, foreign currency monetary assets and liabilities are translated
at the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses are recognised in
the Consolidated Statement of Profit and Loss. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Exchange
difference arising on a monetary item that, in substance, forms part of the Groups net investments in a non-integral
foreign operation are accumulated in a Foreign Currency Translation Reserve until disposal / recovery of the net
investment.
For the purpose of consolidation, income and expenses are translated at average rates and the assets and liabilities
are stated at closing rate. The net impact of such change is accumulated under foreign currency translation
reserve.
During the year ended 31st March, 2012, the Company had exercised the option granted vide notification
F.No.17/133/2008/CL-V dated 29th December, 2011 issued by the Ministry of Corporate Affairs and accordingly, the
exchange differences arising on revaluation of long term foreign currency monetary items is accumulated in a Foreign
Currency Monetary Item Translation Difference Account and recognised over the shorter of the loan repayment
period and 31st March, 2020. The unamortised balance is presented as Foreign Currency Monetary item Translation
Difference Account net of tax effect thereon.
155
Annual Report FY2014-15
(u)
Premium / discount on forward exchange contracts, related to monetary items which are not intended for trading
or speculation purposes, are amortised over the period of the contract. Any profit or loss arising on cancellation or
renewal of such a forward exchange contract is recognised as income or as expense in the period in which such
cancellation or renewal is made.
Derivative Contracts
The Group enters into derivative contracts in the nature of full currency swaps, currency options, forward contracts with an
intention to hedge firm commitments and highly probable transactions. Derivative contracts with critical terms matching
that of the underlying hedged item(foreign currency loan) are accounted as per the policy stated for foreign currency
transaction and translation resulting in foreign currency loan being treated as Indian rupee loan. All other contracts are
marked-to-market and losses are recognised in the Consolidated Statement of Profit and Loss. Gains arising on the aforesaid
contracts are not recognised on grounds of prudence in accordance with the announcement of The Institute of Chartered
Accountants of India on Accounting for Derivatives issued in March 2008.
(v)
Government Grants
Government grants and subsidies are recognised when there is reasonable assurance that the entity in the Group will
comply with the conditions attached to them and the grants / subsidy will be received. Government grants whose primary
condition is that the company should purchase, construct or otherwise acquire capital assets are presented by deducting
them from the carrying value of the assets. The grant is recognised over the life of the depreciable assets by way of a reduced
depreciation charge. Other government grants and subsidies are recognised as income over the periods necessary to match
them with the costs which they are intended to compensate on a systematic basis.
(w)
Segment Reporting
The Group identifies primary segments based on the dominant source, nature of risks and returns and the internal
organisation. The operating segments are the segments for which separate financial information is available and for which
operating profit/(loss) amounts are evaluated regularly by the Executive Management in deciding how to allocate resources
and in assessing performance.
The accounting policies adopted for segment reporting are in conformity with the accounting policies of the Group.
Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the
basis of their relationship to the operating activities of the segment. Inter Segment revenue is accounted on the basis of
transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities
which relate to the Group as a whole and are not allocable to segments on reasonable basis have been included under
unallocated revenue / expenses / assets / liabilities.
(x)
Taxes on Income
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the period.
Current Tax is measured at the amount of tax expected to be payable on the taxable income for the year as determined in
accordance with the provisions of the Income Tax Act, 1961, except for the overseas subsidiaries and joint ventures where
current tax provision is determined based on the local tax laws.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and
liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance
Sheet date.
Deferred Tax Assets in respect of unabsorbed depreciation and carry forward of losses are recognised if there is virtual
certainty that there will be sufficient future taxable income available to realise such assets. Other Deferred Tax Assets are
recognised if there is reasonable certainty that there will be sufficient future taxable income to realise such assets. Deferred
tax assets recognised are carried forward only to the extent that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realised.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised
amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax
liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing current tax and
where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation
laws.
156
Annual Report FY2014-15
FINANCIAL STATEMENTS
(z)
SHARE CAPITAL
Authorised:
Ordinary shares of ` 10 each
Issued:
Ordinary shares of ` 10 each
Subscribed and fully paid-up:
Ordinary shares of ` 10 each
Forfeited shares:
Amount originally paid-up on forfeited shares
Number of
shares
` in crore
Number of
shares
` in crore
27,00,00,000
270.00
27,00,00,000
270.00
25,48,42,598
254.84
25,48,42,598
254.84
25,47,56,278
254.76
25,47,56,278
254.76
86,320
0.06
254.82
86,320
0.06
254.82
Footnotes:
(a)
Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the year:
As at
31-Mar-14
Number of
shares
` in crore
Number of
shares
` in crore
25,48,42,598
254.84
25,48,42,598
254.84
25,48,42,598
254.84
25,48,42,598
254.84
25,47,56,278
254.76
25,47,56,278
254.76
25,47,56,278
254.76
25,47,56,278
254.76
157
Annual Report FY2014-15
The Company has issued one class of ordinary shares having a par value of ` 10 per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting except in the case of interim dividend. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company, after distribution of all preferential accounts, in proportion to
their shareholding.
(c)
Number of
shares
%
Age
Number of
shares
%
Age
4,93,06,423
1,55,53,501
72,96,962
19.35
6.11
2.86
4,93,06,423
1,57,53,501
1,61,51,552
19.35
6.18
6.34
(d)
There are no shares reserved for issue under any employee stock option schemes or under agreements or contracts.
(e)
The Company has not issued any shares without payment being received in cash.
(ii)
(iii)
(iv)
The Company has not issued any shares as fully paid-up pursuant to scheme of amalgamation.
As at
31-Mar-2014
NOTE 4
1.
2.
3.
4.
5.
6.
7.
8.
Capital reserve:
Balance as per last account
Capital redemption reserve:
Balance as per last account
Securities premium:
Balance as per last account
Debenture redemption reserve:
Balance as per last account
Less : Transferred to general reserve
Foreign currency monetary items translation difference account
(net of taxes):
Balance as per last account
Less : Amortisation for the year
Foreign currency translation reserve (FCTR):
Balance as per last account
Add : Net adjustments during the year
Surplus on amalgamation:
Balance as per last account
General reserve:
Balance as per last account
Add : Transferred from surplus in the Statement of Profit and Loss
Add : Transferred from debenture redemption reserve
158
Annual Report FY2014-15
` in crore
` in crore
` in crore
0.66
0.66
0.10
0.10
1,258.89
1,258.89
240.00
277.50
(37.50)
240.00
(58.77)
58.77
-
1,375.24
821.27
438.33
1,259.60
20.07
20.07
1,283.41
1,173.13
58.24
37.50
1,268.87
240.00
-
1,259.60
115.64
1,268.87
14.54
-
FINANCIAL STATEMENTS
` in crore
` in crore
` in crore
(758.02)
(432.40)
77.36
(90.79)
(445.83)
12.70
11.59
1.11
12.70
(445.83)
(219.42)
(124.00)
31.23
12.70
-
1,695.63
3,086.70
(21.84)
1,673.79
3,086.70
596.46
(1,032.00)
(318.44)
(73.43)
(254.76)
(44.96)
(14.54)
(58.24)
Less :
(a)
(b)
(c)
(d)
(1.11)
1,863.84
1,695.63
5,296.89
5,310.69
As at
31-Mar-2014
NOTE 5
1.
2.
` in crore
` in crore
` in crore
250.00
250.00
(a)
3,491.60
4,691.28
(a)
0.89
0.94
3.
4.
3,492.49
4,692.22
0.35
0.47
From banks
(i)
(ii)
Others (footnote e)
1,489.31
1,485.43
468.51
446.62
1,957.82
5.
1,932.05
7.59
8.33
5,708.25
6,883.07
159
10% Unsecured Redeemable Non-convertible Debentures of a face value ` 10 lakh each redeemable at par on 2nd July,
2019. Interest is payable annually.
(b)
(i)
(ii)
(iii)
(iv)
(v)
160
Annual Report FY2014-15
FINANCIAL STATEMENTS
(d)
The external commercial borrowing is due for repayments on 21st October, 2016 ` 319.54 crore (USD 60 million), on
23rd October, 2017 ` 389.78 crore (USD 63.27 million), on 22nd October, 2018 ` 390.06 crore (USD 63.27 million) and on
21st October, 2019 ` 389.93 crore (USD 63.46 million) along with interest at Libor + spread ranging from 1.65% to 1.95%
payable half yearly.
Foreign exchange gain of ` 73.19 crore (previous year ` 12.45 crore) on full currency swaps and forwards with critical terms
matching that of the external commercial borrowings have been netted off, resulting in the foreign currency loan being
treated as an Indian rupee loan.
(e)
(i)
(ii)
(f )
(i)
(ii)
DEFERRED TAXES
` in crore
` in crore
160.90
133.77
The significant component and classification of deferred tax assets and liabilities on account
of timing differences are:
1.
2.
(b)
Depreciation
(c)
(29.16)
(112.05)
(110.78)
64.20
20.96
85.92
24.90
23.31
(b)
(c)
(d)
2.75
97.30
(321.16)
(364.82)
66.35
(32.71)
(227.16)
(276.92)
Footnotes:
(a)
Primarily relates to partnership tax basis differences in Tata Chemicals North America Inc. arising from Tata Chemicals
(Soda Ash) Partners.
(b)
Primarily relates to disallowances under 43B of the Income Tax Act, 1961.
As at
31-Mar-2014
NOTE 7
1.
Other liabilities:
(a)
Pension payable on Employee Separation Scheme
(b)
Creditors of capital goods
(c)
Other payables
` in crore
` in crore
` in crore
17.16
17.16
0.54
0.62
163.75
164.91
164.91
0.48
16.68
As at
31-Mar-2014
NOTE 8
1.
` in crore
` in crore
` in crore
27.52
21.89
(b)
65.83
55.40
(c)
1,326.15
1,021.07
(d)
Others
2.
3.
162
Annual Report FY2014-15
3.69
3.22
1,423.19
1,101.58
176.55
295.88
90.14
98.46
1,689.88
1,495.92
FINANCIAL STATEMENTS
` in crore
(b)
(ii)
10.92
9.09
219.23
149.09
230.15
158.18
10.00
2.
` in crore
149.95
50.00
(ii)
137.50
38.27
(iii)
326.10
287.45
(b)
414.37
Buyers credit
765.59
913.99
765.59
913.99
1,293.19
1,486.54
Footnotes:
(a)
Loans from banks on cash credit and buyers credit are secured by hypothecation of stocks of raw materials, finished
products, stores and work-in-progress as well as book debts.
(b)
(i)
(ii)
(iii)
(iv)
(c)
(d)
The Department of Fertilizers, Government of India, has notified Special Banking Arrangement scheme to address the
concern of delay in subsidy disbursement. This arrangement has been made by the Government with State Bank of India
Consortium (SBI Consortium). Loans under this scheme are secured by hypothecation of subsidy receivables.
163
Annual Report FY2014-15
TRADE PAYABLES
Acceptances
Trade payables
` in crore
` in crore
773.01
1,870.06
2,643.07
671.30
1,367.75
2,039.05
As at
31-Mar-2014
NOTE 11
1.
2.
3.
4.
5.
6.
` in crore
` in crore
` in crore
1,377.26
0.14
99.27
20.40
0.03
0.84
21.27
2.18
70.23
13.87
53.86
12.83
0.01
12.84
52.91
693.59
2,237.99
87.76
31.40
161.92
60.74
106.43
319.00
767.25
926.68
1,363.54
0.05
13.67
13.86
0.01
96.63
23.79
173.16
45.42
6.57
348.02
Footnote:
(a)
NOTE 12
1.
2.
SHORT-TERM PROVISIONS
` in crore
` in crore
` in crore
102.71
1.08
3.44
37.74
50.67
92.93
1.23
3.95
37.84
59.69
318.44
63.58
254.76
43.30
109.16
52.05
117.77
127.49
38.53
121.08
585.16
678.09
661.00
763.71
Footnote:
(a)
The Board of Directors has recommended a dividend of 100% for the financial year 2014-15 and a special dividend of 25%
on the occasion of the Platinum Jubilee year of the Company, aggregating to ` 12.50 per share.
164
Annual Report FY2014-15
(i)
6. Vehicles
4. Water Works
3. Other Buildings
(c)
(a)
2. Works :
(b) Leasehold
(a) Freehold
1. Land :
Tangible Assets:
762.12
10,522.84
0.31
745.19
11,128.29
35.34
3.20
100.15
50.35
39.31
7.05
27.21
53.90
29.77
194.93
7.42
232.99
11.17
281.28
7.36
42.35
30.39
295.91
69.93
1,006.32
3.36
1,046.00
3.09
289.73
625.60
8,052.40
308.94
419.86
3.13
8,405.57
23.24
199.31
56.43
260.45
232.19
43.57
1.32
145.31
337.00
6.18
169.12
(1,054.94)
165.26
15.14
(2.75)
(1.92)
(8.21)
(3.50)
(0.06)
(0.27)
(0.76)
12.11
(80.70)
(16.81)
(9.44)
(0.30)
(952.23)
236.68
(0.12)
(0.58)
(74.62)
(0.21)
(1.13)
Deductions /
Adjustment
Additions
during the
year
(At cost)
As at
1-Apr-14
Gross Block
898.27
(194.36)
3.66
4.22
3.10
0.58
19.06
(1.88)
4.22
2.00
89.99
(21.84)
25.29
12.94
679.80
(175.93)
29.75
(11.88)
20.70
6.76
22.70
(9.33)
Exchange
Fluctuations
Fixed Assets
NOTE 13
11,128.29
11,844.38
39.31
158.82
53.90
59.61
232.99
257.38
7.36
7.09
295.91
352.37
1,046.00
1,077.28
308.94
324.67
8,405.57
8,886.18
232.19
243.43
337.00
312.71
169.12
164.84
As at
31-Mar-15
6,474.67
6,896.60
3.01
4.27
36.29
40.75
132.62
156.64
6.82
6.82
79.68
86.81
394.59
421.53
200.78
241.65
5,526.46
5,818.78
62.11
72.50
32.31
46.85
As at
1-Apr-14
453.84
445.70
0.96
1.16
4.48
4.59
14.81
22.91
0.06
0.04
4.98
14.39
38.13
38.31
30.41
28.24
339.46
314.37
7.91
6.18
12.64
15.51
(941.69)
237.89
13.84
(1.55)
(1.47)
(7.49)
2.94
(0.06)
(0.14)
(0.64)
6.63
(63.86)
41.48
(7.17)
0.34
(860.34)
160.53
1.88
(0.58)
11.86
628.42
(133.11)
0.30
0.51
1.53
0.55
16.54
(4.80)
2.79
1.17
44.81
(13.64)
17.63
9.72
539.86
(126.83)
2.48
(0.63)
2.48
0.84
281.36
24.05
0.02
0.16
3.53
7.86
0.02
273.34
16.82
3.66
Exchange Impairment*
Fluctuations
Depreciation / Amortisation
6,896.60
7,471.13
4.27
19.78
40.75
44.44
156.64
181.22
6.82
6.72
86.81
109.00
421.53
487.70
241.65
279.95
5,818.78
6,166.85
72.50
79.93
46.85
91.88
3.66
As at
31-Mar-15
4,231.69
4,373.25
35.04
139.04
13.15
15.17
76.35
76.16
0.54
0.37
209.10
243.37
624.47
589.58
67.29
44.72
2,586.79
2,719.33
159.69
163.50
290.15
220.83
169.12
161.18
As at
31-Mar-15
Net Block
` in crore
FINANCIAL STATEMENTS
165
166
Intangible Assets:
(iv)
5.74
38.14
84.08
0.09
123.79
0.09
8.62
19.75
12.80
26.81
28.38
5.23
16.72
35.79
42.02
0.51
1.64
51.66
1.64
41.49
41.49
1.57
(0.71)
0.01
0.01
2.41
(1.49)
(0.85)
0.77
Exchange
Fluctuations
123.79
170.31
0.09
0.09
28.38
28.39
42.02
45.76
51.66
94.43
1.64
1.64
As at
31-Mar-15
53.52
71.11
0.03
0.03
3.81
4.92
14.45
25.79
33.59
38.73
1.64
1.64
As at
1-Apr-14
17.40
17.44
1.10
2.17
10.39
9.34
5.91
5.93
41.49
41.49
0.19
0.14
0.01
0.01
0.95
(0.81)
(0.77)
0.94
11.44
11.44
Exchange Impairment*
Fluctuations
Depreciation / Amortisation
71.11
141.62
0.03
0.03
4.92
7.10
25.79
45.76
38.73
87.09
1.64
1.64
As at
31-Mar-15
4,751.96
4,591.25
14.90
19.62
452.69
169.69
52.68
28.69
0.06
0.06
23.46
21.29
16.23
12.93
7.34
As at
31-Mar-15
Net Block
` in crore
Notes :
1.
Gross book value and accumulated depreciation above include ` 13.83 crore (previous year ` 26.59 crore) and ` 5.20 crore (previous year ` 10.61 crore) respectively for assets held for sale. The assets held
for sale have been valued at lower of carrying value or net realisable value.
2.
Capital work-in-progress above includes ` 205.29 crore (previous year ` 82.54 crore) for which impairment has been provided during the year.
3.
The Group has reassessed the useful lives of its fixed assets. As a result of the change, the charge on account of depreciation for the year ended 31st March, 2015 is higher by ` 27.41 crore. In case of assets
whose useful lives have ended, the carrying values as at 1st April, 2014 amounting to ` 21.84 crore (net of deferred tax ` 11.86 crore and minority interest ` 1.18 crore) have been adjusted against the opening
reserves as on 1st April, 2014 pursuant to the provisions of Schedule II to the Companies Act, 2013.
4.
(*) primarily relating to the Chemical and Bio Fuel overseas business (previous year relating to the Groups Kenyan operations and the Fertiliser and Biofuel operations in India). (note 29(b)).
5.
Other buildings includes cost of residential flats aggregating ` 1.82 crore (previous year ` 1.82 crore) for which legal formalities relating to transfer of title are pending.
6.
Assets held under finance lease includes Plant and Machinery ` 9.20 crore (previous year ` 11.48 crore), office equipment ` 0.28 crore (previous year ` 0.44 crore) and vehicles ` 0.28 crore (previous year
` 0.44 crore).
7.
Borrowing cost capitalised of ` 0.29 crore (previous year ` 0.35 crore) is included in the additions made during the year (note 30(x)).
8.
The figures in light print are for the previous year.
Capital Work-in-Progress
3. Technical knowhow
2. Computer software
1. Goodwill
(iii)
(ii)
Deductions /
Adjustment
Additions
during the
year
(At cost)
As at
1-Apr-14
Gross Block
Fixed Assets
NOTE 13
FINANCIAL STATEMENTS
NON-CURRENT INVESTMENTS
Face
Value
`
Holdings
As at
31-Mar-15
`
`
`
`
`
`
`
1
1
10
10
2
1
1
72,71,666
25,23,000
4,75,840
24,91,977
18,63,705
4,31,75,140
1,38,26,180
CAD$
No par
value
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
900
10
100
10
1,000
100
1,000
1,000
10
10
10
10
10
10
10
10
10
10
10
2,90,55,612
9.82
2.79
6.83
58.16
7.89
16.09
10.31
111.89
207.74
550
40,00,000
98,61,303
32,30,859
48,000
1,93,500
1,260
10,237
12,85,110
2,50,000
60,000
1,24,002
50,000
54,000
36,750
3,00,364
10,822
1,82,86,000
1,30,000
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.25
*
0.09
0.05
0.01
0.04
0.30
0.01
18.29
0.53
21,00,000
`
`
10
10
Face
Value
`
9.82
2.79
6.83
58.16
7.89
16.09
10.31
111.89
207.74
1
1
10
10
2
1
1
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.25
*
0.09
0.05
0.01
0.04
0.30
0.01
18.29
0.53
900
10
100
10
1,000
100
1,000
1,000
10
10
10
10
10
10
10
10
10
1.46
1.46
287.91
287.91
28,90,000
16,36,124
9.00
9.00
2.89
2.89
2.89
9.00
11.89
5,000
328.63
0.50
291.30
0.50
619.93
180.31
148.32
2.20
289.10
182.51
437.42
Holdings
As at
31-Mar-14
72,71,666
41,23,000
4,75,840
24,91,977
18,63,705
4,31,75,140
1,38,26,180
Total
` in
crore
2,90,55,612
9.82
4.57
6.83
58.16
7.89
16.09
10.31
113.67
211.89
9.82
4.57
6.83
58.16
7.89
16.09
10.31
113.67
211.89
550
40,00,000
98,61,303
32,30,859
48,000
1,93,500
1,260
10,237
12,85,110
1,24,002
50,000
54,000
36,750
3,00,364
10,822
1,82,86,000
1,30,000
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.09
0.05
0.01
0.04
0.30
0.01
18.29
0.53
0.02
4.00
170.19
4.85
27.34
0.38
0.13
56.86
3.11
0.09
0.05
0.01
0.04
0.30
0.01
18.29
0.53
21,00,000
10
-
1.46
1.46
287.66
287.66
28,90,000
-
2.89
2.89
2.89
2.89
5,000
325.56
0.50
291.05
0.50
616.61
180.31
145.25
2.09
288.96
182.40
434.21
148.32
145.25
1,500.30
289.10
1,304.99
288.96
Shares can be transferred only with the prior approval of the Board of Directors of Tata Teleservices Ltd.
167
Annual Report FY2014-15
2.
` in crore
` in crore
` in crore
13.07
22.77
2.56
7.61
22.25
4.76
10.19
30.22
3.13
7.61
10.21
1.91
450.23
Doubtful:
(a)
Advances recoverable in cash/kind
Less : Provision for advances recoverable in cash/kind
523.25
440.56
503.83
523.25
0.21
0.21
503.83
0.56
0.56
Footnote:
(a)
The Company has extended an unsecured subordinate loan to Tata Power Renewable Energy Limited (TPREL) for the
purpose of setting up a 25 MW photovoltaic solar power plant and associate infrastructure at Mithapur, Gujarat. The loan
carries an interest rate based on State Bank of India base rate plus 1.25%. The principal amount of the loan is mandatorily
convertible to equity of TPREL.
As at
31-Mar-2014
NOTE 16
1.
2.
3.
4.
` in crore
` in crore
72.42
0.26
1.58
24.59
98.85
89.85
6.86
229.15
325.86
NOTE 17
CURRENT INVESTMENTS
Face
Value
`
Current Investments
(At lower of cost and fair value):
(a)
Investments in equity instruments
(fully paid-up)
IFCI Venture Capital Funds Ltd.@
Kowa Spinning Ltd.@
(b) Investments in Mutual Funds
-Unquoted
HDFC Cash Management Fund
Holdings
As at
18,91,698.54
units
5.50
5.50
5.50
5.50
Total
Aggregate amount of unquoted investments
@ Reclassification from Current Investment to Non Current Investment
* value below ` 50,000
168
Annual Report FY2014-15
5.50
Holdings
As at
31-Mar-14
10
10
2,50,000
60,000
0.25
*
0.25
*
24,59,715.85
units
6.42
6.42
6.67
6.67
6.67
FINANCIAL STATEMENTS
INVENTORIES
Raw materials
Work-in-progress
Finished goods
Stock in trade (acquired for trading)
Stores and spare parts and packing materials
Inventories include goods in transit :
(a)
Raw materials
(b)
Stock in trade (acquired for trading)
(c)
Stores and spares
` in crore
` in crore
787.62
101.98
646.84
770.59
319.38
2,626.41
635.69
91.50
384.57
176.03
361.25
1,649.04
215.79
276.28
1.59
100.13
4.36
0.12
As at
31-Mar-2014
NOTE 19
1.
2.
TRADE RECEIVABLES
Others:
(a)
Secured, considered good
(b)
(c)
(d)
` in crore
` in crore
` in crore
582.87
0.06
647.13
30.82
678.01
(30.82)
647.19
0.08
582.79
37.68
620.55
(37.68)
224.78
3.91
2,634.14
1.25
2,860.17
(1.25)
2,589.77
1.20
2,594.88
(1.20)
2,593.68
3,240.87
2,858.92
3,441.79
Footnote:
(a)
Trade receivables include ` 1,971.64 crore (previous year ` 1,800.23 crore) on account of subsidy receivable from the
Government. Of this an amount of ` 546.83 crore (previous year ` 620.53 crore) is due for more than six months.
As at
31-Mar-2014
NOTE 20
1.
2.
` in crore
` in crore
` in crore
1,257.43
0.82
0.71
1,258.96
652.48
1,018.25
1,670.73
64.87
0.38
1,735.98
13.82
191.48
1,464.26
12.93
4.09
1,753.00
345.99
911.44
169
Annual Report FY2014-15
` in crore
` in crore
168.06
23.78
152.10
4.65
333.02
44.03
85.18
4.40
220.77
569.36
145.34
45.23
190.57
45.23
145.34
611.97
220.77
39.04
259.81
39.04
Footnote:
(a)
Advances to employees include ` * crore (previous year ` 0.01 crore) due from officer of the Company. Maximum balance
outstanding during the year ` 0.01 crore (previous year ` 0.01 crore).
* value below ` 50,000
As at
31-Mar-2014
NOTE 22
1.
2.
3.
4.
` in crore
` in crore
4.29
0.76
11.58
52.94
69.57
5.83
0.71
11.83
67.60
85.97
Footnote:
(a)
Primarily comprises other receivables towards freight incentives for United states and Canadian operations.
Previous
year
NOTE 23
1.
2.
Sales:
(a)
Sales (footnote a)
Operating income:
(a)
Town income
Liabilities no longer required - written back
(b)
(c)
Insurance claims
(d)
Miscellaneous income (footnote b)
` in crore
` in crore
` in crore
17,278.84
16,067.09
290.38
17,569.22
2.45
16.68
0.13
141.06
160.32
16,227.41
2.48
39.19
8.52
240.19
Footnotes:
(a)
Sales include subsidy income of ` 2,942.24 crore (previous year ` 2,429.32 crore).
(b)
Miscellaneous income primarily includes compensation of ` 114.97 crore (previous year ` 4.81 crore), from settlement
of long term contracts, development and support fees of ` 33.18 crore (previous year ` 34.61 crore) and sales of scrap of
` 20.19 crore (previous year ` 24.35 crore).
170
Annual Report FY2014-15
FINANCIAL STATEMENTS
OTHER INCOME
` in crore
` in crore
Dividend income:
(a)
Current investments
48.79
50.84
(b)
26.07
25.35
74.86
2.
4.
76.19
Current investments
(b)
Bank deposits
(c)
(d)
Refund of taxes
3.50
5.10
14.45
16.79
1.57
1.45
17.27
42.86
36.79
3.
` in crore
66.20
Current investments
1.27
0.03
(b)
Long-term investments
2.10
3.37
0.03
2.95
117.97
142.42
Previous
year
NOTE 25
` in crore
` in crore
` in crore
Opening stock
Work-in-progress
91.50
71.85
Finished goods
384.57
481.45
176.03
167.43
652.10
720.73
Closing stock
Work-in-progress
101.98
91.50
Finished goods
646.84
384.57
770.59
176.03
1,519.41
652.10
(49.87)
40.31
(917.18)
108.94
171
Annual Report FY2014-15
` in crore
` in crore
1.
960.87
945.17
2.
112.58
95.57
3.
0.03
0.03
4.
182.29
173.76
1,255.77
1,214.53
Previous
year
NOTE 27
1.
2.
FINANCE COSTS
` in crore
` in crore
` in crore
Interest expenses:
(a)
(b)
Other loans
370.22
404.00
50.46
47.20
420.68
451.20
33.35
128.26
454.03
579.46
Previous
year
NOTE 28
1.
OTHER EXPENSES
2.
3.
4.
Repairs - buildings
- machinery
- others
` in crore
` in crore
276.53
292.05
451.11
395.15
2,040.57
2,156.23
11.06
9.04
392.38
399.99
4.96
4.35
5.
Rent
173.58
169.09
6.
271.23
258.84
7.
8.99
2.75
8.
138.51
118.21
9.
293.56
232.23
10.
Insurance charges
11.
12.
Provision for doubtful debts, bad debts written off and advances (net)
13.
14.
15.
16.
172
Annual Report FY2014-15
43.44
43.89
1,911.07
1,831.92
13.55
4.71
4.44
196.33
104.52
12.31
11.37
574.91
559.58
6,814.09
6,598.36
FINANCIAL STATEMENTS
Footnotes:
(a)
Other expenses includes:
1.
Auditors Remuneration
(i)
For services as auditors
(ii)
For other services
(iii) Reimbursement of travelling and out-of-pocket expenses
2.
3.
(i)
` in crore
Previous
year
` in crore
10.47
6.82
0.27
17.56
10.98
2.96
1.66
15.60
1.50
` in crore
Previous
year
` in crore
19.65
1.64
0.26
25.42
14.71
1.89
0.82
22.27
(ii)
4.
Amount required to be spent by the Group (included only domestic subsidiaries) during the year on CSR is
` 15.54 crore of which the Group has spent ` 12.33 crore. The Group has spent the following amounts during the
year. @
Previous year
` in crore
` in crore
(i)
Employee Benefits
0.18
(ii)
Other approved activities (for health care, environmental sustainability,
Poverty alleviation, education, women empowerment, skill development,
disaster relief, promotion of traditional arts and handicrafts, etc.)
12.15
12.33
@ Expenditure incurred on CSR in the previous year prior to introduction of Section 135 of the Companies
Act, 2013 is included in donations and contributions and have not been reclassified/regrouped as there was
no requirement for disclosure of such expenses in the previous year.
173
Annual Report FY2014-15
` in crore
EXCEPTIONAL ITEMS
1.
2.
3.
` in crore
64.14
196.95
983.68
Exchange loss (net) on foreign currency long term borrowings including revaluation
thereof
158.47
4.
242.28
5.
Provision for diminution in the value of investments in EPM Mining Ventures Inc.
180.31
6.
(61.38)
(144.53)
199.71
1,420.21
Footnotes:
(a)
Compensation on voluntary retirement, for the year ended 31st March, 2015, amounting to ` 64.14 crore, is on account of
redundancies consequent to the decision to scale down operations at Kenya.
(b)
During the current year, the Group has recognised a non-cash write down of goodwill of ` 8.52 crore (previous year
` 619.77 crore) and other assets (including capital work-in-progress and commitments in respect thereof ) aggregating to
` 188.43 crore (previous year ` 363.91 crore) primarily relating to the Chemical and Bio Fuel overseas business (previous
year relating to the Groups Kenyan operations and the Fertiliser and Biofuel operations in India).
2014-15
2013-14
596.46
(1,032.00)
25,47,56,278
23.41
25,47,56,278
(40.51)
NOTE 30
(i)
(ii)
` in crore
Nos.
`
Segment information:
(a)
Information about Primary Business Segments:
(` in crore)
Inorganic chemicals
Fertilisers
Others
Elimination
2014-15
7,975.78
2014-15
Total
2013-14
2014-15
2013-14
167.25
Total Revenue
8,143.03
285.53
174.47
(167.25)
(138.34)
285.53
174.47
(167.25)
249.59 (144.17)
(78.01)
138.34
- 16,912.56 15,725.03
-
Result:
Segment result
Unallocated expenditure
net of unallocated income
Finance costs
1,267.28
(19.89)
306.56
230.34
269.63
1,699.30
382.03
86.76
321.46
454.03
579.46
1,158.51
(518.89)
Tax expense
(351.12)
(288.78)
807.39
(807.67)
174
Annual Report FY2014-15
FINANCIAL STATEMENTS
Segment assets
Segment liabilities
Capital expenditure
Depreciation and
amortisation
Impairment of assets
Provision for
Diminution in the
value of investments
Other non-cash
expenses
(b)
Inorganic chemicals
2014-15 2013-14
11,849.20 12,173.02
3,149.76 3,183.45
452.13
445.54
Fertilisers
2014-15 2013-14
4,488.37 3,750.23
1,631.50 1,332.69
47.28
73.21
Others
2014-15 2013-14
181.92
167.99
49.53
38.12
15.04
39.26
Unallocated
Total
2014-15 2013-14 2014-15 2013-14
2,596.20 2,506.20 20,805.61 20,171.91
9,313.87 8,901.73 14,580.41 13,951.18
21.87
24.40
593.44
641.14
319.06
121.74
351.65
924.38
72.93
-
63.04
59.30
49.58
-
40.66
-
11.57
75.21
10.94
-
10.00
-
4.95
-
463.14
196.95
471.24
983.68
0.11
180.31
0.11
180.31
564.73
417.06
72.30
19.65
12.05
14.86
16.86
3.76
(28.59)
197.04
637.35
652.37
(c)
Europe
Africa
America
Others
Total
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
12,058.24 10,227.17
1,559.92
1,831.32
684.31
836.87
2,579.14
2,770.49
30.95
9,637.94
8,863.16
2,185.33
2,629.36
393.10
536.87
8,569.99
8,105.45
19.25
222.46
248.22
129.79
187.50
17.89
74.96
223.30
130.46
2013-14
2014-15
593.44
2013-14
641.14
Notes:
(i)
Inorganic Chemicals: comprising soda ash, marine chemicals, caustic soda, cement, bulk chemicals and salt.
Other agri inputs: comprising traded seeds, pesticides, speciality crop nutrients
(ii)
(iii)
The Geographical Segments Revenue are disclosed on the basis of sales as follows :
-
Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments and amounts
allocated on a reasonable basis.
(iii)
Related Parties and their relationship (as defined under AS-18 Related Party Disclosures)
Joint Ventures
Direct
Indo Maroc Phosphore S. A., Morocco
Indirect
Alcad, United State of America
Kemax B.V., Netherlands #
Joil (S) Pte. Ltd., Singapore
The Block Salt Company Limited, United Kingdom
Natronx Technologies LLC,
United States of America
Promoter Group
Tata Sons Limited, India
Associate
EPM Mining Venture Inc., Canada
# Kemax B.V. ceased to be a Joint Venture with effect from 11th December, 2013
175
Annual Report FY2014-15
(b)
176
0.15
-
0.34
0.05
0.34
200.87
-
224.36
460.42
-
532.70
Kemax B.V.
10.94
16.63
82.34
90.81
Alcad
0.10
0.54
0.54
0.23
4.43
3.81
The Block
Salt Company
Limited
2.
3.
0.72
0.25
0.02
0.11
0.20
Natronx
Technologies LLC
Managerial remuneration includes salaries and commission to the Managing Director and Whole-time Director
1.
Notes :
Managerial Remuneration@
Indo Maroc
Phosphore
S.A.
6.67
10.56
0.01
0.01
0.01
Key
Management
Personnel
0.01
0.06
34.32
35.01
34.25
35.51
0.11
Tata Sons
Limited
6.67
10.56
0.97
0.85
0.35
0.01
0.35
0.06
246.69
276.23
34.25
35.51
0.11
547.30
627.52
Total
Transactions with related parties (as defined under AS-18) during the year ended 31st March, 2015 and balances outstanding as at 31st March, 2015
FINANCIAL STATEMENTS
(B)
In respect of overseas subsidiaries and joint ventures, the liabilities for employee benefits are determined and
accounted as per the regulations and principles followed in the respective countries.
(i)
US subsidiaries
The Company also sponsors defined contribution retirement savings plans. Participation in one of these
plans is available to substantially all represented and non-represented employees. The Company matches
employee contributions up to certain predefined limits for non-represented employees based upon eligible
compensation and the employees contribution rate.
The Companys contribution to these plans was ` 2.96 crore and ` 3.28 crore for the years ended March 31,
2015 and 2014, respectively.
Pension Plans and Other Post Retirement Benefit
The Company maintains several defined benefit pension plans covering substantially all employees.
A participating employees annual post-retirement pension benefit is determined by the employees credited
service and, in most plans, final average annual earnings with the Company. Vesting requirements are two
years. The Companys funding policy is to annually contribute the statutorily required minimum amount as
actuarially determined. The Company also maintains several plans providing non pension post-retirement
benefits covering substantially all hourly and certain salaried employees. The Company funds these benefits
on a pay-as-you-go basis.
Plan Assets
The assets of the Companys defined benefit plans are managed on a commingled basis in a Master Trust. The
investment policy and allocation of the assets in the Master Trust were approved by the Companys Investment
Committee, which has oversight responsibility for the Companys retirement plans.
The pension fund assets are invested in accordance with the statement of Investment Policies and Procedures
adopted by the Company, which are reviewed annually. Pension fund assets are invested on a going-concern
basis with the primary objective of providing reasonable rates of return consistent with available market
178
Annual Report FY2014-15
FINANCIAL STATEMENTS
The actuarial gains and losses on the funds for employee benefits (pension plans) of the overseas subsidiaries have
been accounted in Reserves and Surplus in the consolidated financial statements in accordance with the generally
accepted accounting principles applicable and followed in the respective country of incorporation. The Management
is of the view that due to volatility and structure of the overseas pension funds, it is not considered practicable to
adopt a common accounting policy and deviation is as permitted by AS 21. Had the practice of recognising the
actuarial gains and losses of pension plans of the overseas subsidiaries in the Consolidated Statement of Profit and
Loss, the consolidated net profit / (loss) before tax and net profit / (loss) after tax and minority interest would have
been lower by amounts as per table below .
(` in crore)
Sr. Impact on
No.
1
2
Year Ended
31st March,
2015
285.18
219.42
Year Ended
31st March,
2014
140.95
77.36
179
Annual Report FY2014-15
180
(ii)
(i)
Effect of curtailment
Exchange variation
3.21
Liability (net)
95.36
-
1.59
10.71
95.36
1.59
-
100.41
Exchange variation
(4.31)
4.31
95.36
0.43
(4.31)
7.82
7.51
2.91
81.00
Funded
550.77
1,150.22
48.32
1,101.90
3,320.58
(116.73)
(185.92)
382.74
42.78
168.03
3,029.68
4,422.48
(157.74)
(185.92)
703.55
173.17
36.03
3,853.39
213.77
213.77
(9.05)
9.05
213.77
0.75
9.15
(9.05)
6.65
8.28
2.15
195.84
Unfunded
Overseas
Unfunded
(8.65)
4.89
Employers contributions
Benefits paid
7.50
93.46
102.00
10.16
(8.65)
Benefits paid
7.78
Interest cost
5.55
87.16
Funded
Domestic
7.18
(6.05)
(6.05)
(0.26)
93.46
(0.22)
(6.47)
(0.14)
3.51
7.32
89.47
87.16
(0.22)
(6.47)
(5.32)
7.02
5.80
86.35
Funded
Funded
81.00
81.00
(2.64)
2.64
81.00
(3.47)
(3.05)
6.35
3.66
77.51
117.51
862.97
39.26
823.71
3,029.68
436.97
(155.70)
(43.66)
128.78
161.17
2,502.13
3,853.39
595.37
(10.61)
(155.70)
(172.89)
165.07
34.50
3,397.65
195.84
195.84
(10.35)
10.35
195.84
1.81
20.55
(23.91)
(10.35)
(0.02)
9.20
2.15
196.41
Unfunded
Overseas
Unfunded
Domestic
(` in crore)
The following tables set out the funded status and amounts recognised in the Groups Consolidated Financial Statements as at 31st March, 2015 for the Defined
Benefits Plans.
18.67
12.52
(0.26)
0.43
7.82
Effect of curtailment
6.95
7.51
2.91
(7.50)
7.78
5.55
Funded
(13.70)
(36.34)
314.87
60.81
19.64
(168.03)
173.17
36.03
Unfunded
6.65
10.43
8.28
2.15
Unfunded
Overseas
0.52
0.20
(5.18)
(7.32)
7.02
5.80
Funded
Funded
6.96
(3.05)
6.35
3.66
2.93
24.42
(165.67)
61.31
(10.61)
33.51
(161.17)
165.07
34.50
0.30
(12.87)
(23.91)
(0.32)
9.20
2.15
Unfunded
Overseas
Unfunded
Domestic
* The Group has not recognised the actuarial surplus in case of one of its overseas subsidiary, amounting to ` 13.70 crore (previous year ` (2.93) crore) as it does not
expect to benefit from reduced contributions or refunds from the scheme in the future.
(iii)
Funded
Domestic
(` in crore)
FINANCIAL STATEMENTS
181
Categories of plan assets as a percentage of the fair value of total plan assets :
Domestic %
Overseas %
Domestic %
Government Securities
53
49
Corporate Bonds
32
48
35
50
48
44
Others
10
100
100
100
100
Total
(v)
Overseas %
Assumptions used in accounting for gratuity and post retirement medical benefit obligations :
Domestic
Discount rate
Increase in Compensation
cost
US Plans
UK Plans
Funded
Unfunded
Funded
Unfunded
Funded
7.80% to
8% p.a.
7.80% to
8% p.a.
4.08%
3.99%
3.20%
9.05% to
9.40% p.a.
9.05%
4.66%
4.52%
4.20%
7.97% to
9.00 % p.a.
NA
7.00%
NA
5.30% to
5.80 % p.a.
8.50% to
9.00 % p.a.
NA
7.00%
NA
5.45% to
7.05 % p.a.
4.5% to 9.0%
NA
NA
4.5% to 9.0%
NA
NA
NA
8.00%
NA
8.25%
NA
NA
8.00%
NA
8.50%
NA
NA
5.00%
NA
NA
2.10 % to
3.30% p.a.
NA
5.00%
NA
NA
2.40 % to
3.60% p.a.
(a)
Discount rate for the domestic plans is based on the prevailing market yields of Indian Government securities as at the
Balance Sheet date for the estimated term of the obligations.
(b)
Expected rate of return on plan assets is based on the average long term rate of return expected on investments of the Fund
during the estimated term of the obligations.
(c)
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors.
(d)
The details of the Companys post-retirement and other benefit plans for its employees given above, are certified by the
actuaries and relied upon by the Auditors.
(e)
182
Annual Report FY2014-15
FINANCIAL STATEMENTS
The proportionate share of audited assets, liabilities, income and expenditure, contingent liabilities and capital
commitments of the Joint Ventures included in the consolidated financial statements are given below:(` in crore)
Country of
Incorporation
Percentage of
ownership interest
Indo Maroc
Phosphore S.A.
Kemex B.V.#
Alcad
Natronx
Technologies LLC
Morocco
Netherlands
United States of
America
United States of
America
Singapore
United Kingdom
33.33%
49.99%
50.00%
33.30%
33.78%
50.00%
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
2014-15
2013-14
Liabilities
119.74
103.58
0.51
16.63
14.07
4.75
3.62
1.52
1.41
1.06
1.99
Assets
286.75
302.41
0.94
16.63
14.07
129.03
119.09
30.43
38.17
3.29
3.74
Income
577.04
534.89
149.84
137.70
16.04
16.32
2.60
2.56
6.09
7.60
Expenditure
536.20
531.10
99.29
91.20
22.39
24.51
13.69
13.11
5.45
6.44
40.84
3.79
50.55
46.50
(6.35)
(8.19)
(11.09)
(10.55)
0.64
1.16
Contingent Liabilities
Capital Commitments
0.91
2.34
# Kemax B.V. a jointly controlled entity ceased to exist with effect from 11th December, 2013 via dissolution order dated 24th
September, 2014. The dissolution does not have a material effect on the consolidated financial statement
(vi)
Disclosure as required by AS 29Provisions, Contingent Liabilities and Contingent Assets in respect of provisions as at
31st March, 2015:
(a)
The Group has made provision for various obligations and disputed liabilities based on its assessment of the amount
it estimates to incur to meet such obligations, details of which are given below.
(` in crore)
Particulars
Opening balance
Add : Provision during the year
Less : Payments / reversal
during the year
Add /(Less): Exchange
difference
Closing balance
(b)
Warranty
2014-15
0.12
0.45
Site Restoration
expenses
2013-14 2014-15
2013-14
0.10
359.22
170.54
0.58
16.59
245.14
Others
Total
2014-15
194.61
36.39
2013-14
106.58
85.68
2014-15
553.95
53.43
2013-14
277.22
331.40
(0.19)
(0.56)
(146.90)
(83.03)
(26.26)
(3.56)
(173.35)
(87.15)
0.38
0.12
(0.31)
228.60
26.57
359.22
2.79
207.53
5.91
194.61
2.48
436.51
32.48
553.95
Nature of provisions:
(i)
Warranty: The Company gives warranties on certain products that fail to perform satisfactorily during the
warranty period. Provision made as at 31st March, 2015 represents the amount of the expected cost of meeting
such obligations of rectification/replacement. The timing of the outflows is expected to be within a period of
one year from the date of Consolidated Balance Sheet.
(ii)
Provision for site restoration expense is in respect of afforestation and bio-diversity charges in India, costs to be
incurred following the closure of plants in UK and Netherlands, committed expenditure to demolish redundant
power facilities owned by the group in the UK and cost towards reclamation of the mine and land upon the
termination of the partnership in the US.
(iii)
Others: Other Provisions include provision for litigations that are expected to materialise in respect of matters
in appeal and expected tax liability in respect of indirect taxes, obligations to surrender carbon emission
allowances to the Environment Agency in the UK.
183
Annual Report FY2014-15
As at 31st March, 2015, the Group has the following derivative instruments outstanding:
(in Million)
Particulars
Hedged Exposure
As at
2014-15
2013-14
USD
146.49
160.89
USD / INR
USD
122.49
109.22
USD / INR
USD
35.40
50.67
USD / INR
USD
87.19
EUR / INR
EUR
0.88
1.27
CHF
0.33
USD / INR
USD
3.75
AUD / USD
AUD
1.46
EUR / INR
EUR
0.03
JPY / INR
As at
USD / INR
CHF / INR
Currency
JPY
77.60
185.00
USD / GBP
USD
0.70
USD / ZAR
USD
0.06
USD / INR
USD
15.00
15.00
GBP
GBP
0.51
USD
USD
5.60
6.01
USD
USD
203.60
200.46
GBP
GBP
0.79
1.51
Swaps
Interest Rate Swap
Full Currency Swap (exchange rate /
interest rate)
USD / INR
USD
235.00
235.00
USD / JPY
USD
15.00
15.00
(b)
The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as under:
Particulars
Foreign
Currency
As at 2014-15
Amount in Foreign
Currency (in Million)
` in crore
As at 2013-14
Amount in Foreign
Currency (in Million)
` in crore
64.11
0.03
1.60
0.17
1.98
0.06
0.01
0.07
0.03
400.71
0.12
0.08
1.59
13.31
0.39
0.00
0.05
0.15
19.04
0.07
1.93
115.62
10.68
0.55
Receivables
USD
SGD
JPY
GBP
EUR
CHF
DKK
SEK
AUD
184
Annual Report FY2014-15
FINANCIAL STATEMENTS
As at 2014-15
Amount in Foreign
Currency (in Million)
` in crore
As at 2013-14
Amount in Foreign
Currency (in Million)
` in crore
USD
83.34
JPY
83.50
520.91
7.05
105.16
4.35
255.06
14.81
GBP
0.08
0.72
6.40
63.88
EUR
0.89
5.99
0.05
0.41
CHF
0.18
1.14
0.37
2.54
Foreign
Currency
Payables
(viii) Contingent Liabilities and commitments (to the extent not provided for):
(i)
Contingent Liabilities :
(a)
Guarantees:
Bank Guarantees issued by Banks on behalf of the Group ` 222.99 crore (previous year `163.59 crore). These
are covered by the charge created in favour of the Groups bankers by way of hypothecation of stocks and
debtors.
(b)
Claims not acknowledged by the Group relating to cases contested by the Company and which, in the opinion
of the Management, are not likely to devolve on the Company relating to the following areas :
(` in crore)
(i)
(ii)
(iii)
(iv)
As at
2014-15
2013-14
26.74
12.92
105.61
101.88
18.38
56.61
8.79
4.70
229.34
209.60
(vi)
46.93
35.76
(vii)
Others
5.84
2.31
(v)
(ii)
As at
(c)
Various claims pending before Industrial Tribunals and Labour Courts of which amounts are indeterminate.
(d)
Commitments:
(a)
Estimated amount of contracts remaining to be executed on capital account and not provided for `105.23
crore (previous year ` 53.36 crore).
(b)
Capital commitment towards investment in joint ventures/subsidiaries `1.23 crore (previous year ` 13.49
crore).
(c)
Estimated amount of contract with minimum commitment for plant activity ` 8.16 crore (previous year ` 15.67
crore).
(d)
For commitments related to derivatives and leases refer note 29 (vii) and 29 (ix) respectively.
185
Annual Report FY2014-15
(a)
2014-15
2013-14
373.39
380.58
107.78
96.03
Later than one year and not later than five years
221.73
244.39
43.89
40.17
113.18
105.44
Lease payments recognised in the Consolidated Statement of Profit and Loss for
the year (included in rent and cost of materials consumed)
(c)
The lease deposit of ` Nil (previous year ` 25 crore) for plant and machinery remaining with the lessors is provided over the
useful life of the asset and consequently a net amount of ` Nil (previous year ` Nil) has been charged to the Consolidated
Statement of Profit and Loss on the principle of matching of revenue and costs.
(d)
In respect of various subsidiaries, the future minimum lease payments under finance leases ` 0.51 crore (previous year
` 2.74 crore) are as follows-
(x)
(i)
Not later than one year - ` 0.15 crore (previous year ` 2.03 crore)
(ii)
Later than one year but not later than five years - ` 0.36 crore (previous year ` 0.71 crore)
(iii)
(xi)
2014-15
2013-14
0.29
0.35
Details of investment made in EPM Mining Ventures Inc. an Associate company, is as follows:
(` in crore)
Particulars
Fully paid equity shares in associate company (previous year includes goodwill
` 134.10 crore)
Add : Exchange
2014-15
2013-14
31.58
196.24
1.25
18.98
(4.82)
(3.33)
(0.58)
(134.10)
(46.21)
27.43
31.58
Closing balance
186
Annual Report FY2014-15
FINANCIAL STATEMENTS
1
2
3
4
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
26
27
28
29
30
31
32
33
Parent
Tata Chemicals Limited
Subsidiaries
Indian Subsidiaries
Rallis India Limited
Metahelix Life Sciences Limited
Zero Waste Agro Organics Limited
Rallis Chemistry Exports Limited
Foreign Subsidiaries
Tata Chemicals International Pte. Limited
Homefield Private UK Limited
Homefield 2 UK Limited
Tata Chemicals Europe Holdings Limited
Brunner Mond Group Limited
Tata Chemicals Europe Limited
Brunner Mond Limited
Tata Chemicals Magadi Limited
Tata Chemicals South Africa (Proprietary) Limited
Northwich Resource Management Limited
Brunner Mond Generation Company Limited
Tata Chemicals Africa Holdings Limited
Magadi Railway Company Limited
Winnington CHP Limited
Gusiute Holdings (UK) Limited
Valley Holdings Inc.
Tata Chemicals North America Inc.
Tata Chemicals North America (UK) Limited
General Chemical International Inc.
NHO Canada Holdings Inc.
Tata Chemicals (Soda Ash) Partners
General Chemical (Great Britain) Limited
General Chemical Canada Holding Inc.
Tata Chemicals (Soda Ash) Partners Holdings
TCSAP LLC
Bio Energy Venture - 1 ( Mauritius) Private Limited
Grown Energy Zambeze Holdings Private Limited
Grown Energy (Pty) Limited
Grown Energy Zambeze Limitada
British Salt Limited
Cheshire Salt Holdings Limited
Cheshire Salt Limited
Brinefield Storage Limited
` in crore
26.03
6,043.27
223.29
637.97
3.44
0.14
0.06
-
797.96
32.93
13.95
(0.15)
50.90
5.79
(0.32)
-
145.42
16.54
(0.92)
(*)
13.20
(4.68)
(0.29)
(5.51)
2.68
(1.63)
(2.27)
0.08
0.03
(0.59)
19.54
27.51
0.83
6.50
(3.06)
13.82
(0.26)
2.46
0.89
-
3,064.11
(1,085.66)
(67.34)
(1,279.90)
622.66
(378.66)
*
(528.00)
19.45
*
*
5.98
0.01
(138.02)
4,536.18
6,387.57
191.86
*
0.01
*
1,508.21
(709.87)
3,208.17
0.16
*
(60.81)
571.02
0.02
206.66
(0.06)
(93.77)
(13.57)
(186.67)
15.46
(27.17)
(50.76)
0.96
0.70
(20.94)
33.64
41.42
56.16
179.86
0.13
(0.12)
1.82
(145.73)
(29.22)
(9.69)
80.13
5.58
-
(267.92)
(38.76)
(533.34)
44.18
(77.63)
(145.02)
2.74
2.01
(59.84)
96.10
118.35
160.47
513.89
0.38
(0.33)
5.20
(416.36)
(83.47)
(27.67)
228.95
15.94
187
34
35
36
37
1
2
3
4
5
a)
b)
As % of
consolidated
profit or loss
-
0.02
0.16
0.01
0.72
3.78
37.62
1.68
167.02
17.69
(3.42)
0.26
(44.84)
14.29
50.54
(9.78)
0.74
(128.11)
40.84
0.12
100
27.43
23,215.66
(16,990.46)
(1.89)
100
(5.40)
285.71
516.28
(424.26)
(6.40)
(3.67)
(78.52)
(3.22)
0.64
(239.20)
0.04
(673.49)
5,551.71
(124.46)
0.03
(205.53)
596.46
Rajiv Chandan
General Counsel & Company Secretary
Mumbai, 27th May, 2015
188
Annual Report FY2014-15
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
TCSAP LLC
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
14
39
13
12
11
38
37
10
36
INR
INR
35
ZAR
34
KSH
Homefield 2 UK Limited
GBP
GBP
GBP
GBP
GBP
GBP
INR
INR
MZN
ZAR
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
GBP
KSH
GBP
GBP
GBP
GBP
GBP
GBP
GBP
GBP
USD
USD
Reporting
Currency
0.01
1.29
0.07
0.11
0.05
19.45
0.33
86.49
3,596.13
0.01
4,272.10
0.01
36.49
9.06
157.56
588.27
92.47
92.47
639.87
3,729.61
Share
Capital
(0.07)
206.66
(1.27)
571.02
13.88
32.82
(0.20)
778.51
(61.14)
(*)
(86.33)
(387.96)
(709.87)
1,508.21
191.86
6,387.57
264.08
(138.02)
(30.51)
19.45
(537.06)
(536.22)
34.39
(1,372.37)
(159.81)
(1,725.53)
(665.50)
Reserves
829.32
0.02
1,415.85
16.01
214.83
0.06
622.66
844.83
2.07
181.90
0.19
434.41
1,232.36
0.03
89.12
0.18
937.56
978.87
2,236.07
8.47
176.44
248.00
73.58
903.00
1,422.36
2,143.46
100.95
1,135.46
1,454.99
Total
Liabilities
28.31
0.33
4,145.73
(709.87)
2,487.08
0.01
2,427.93
6,396.04
4,712.62
109.97
0.01
5.98
93.04
375.00
1,043.69
622.66
863.57
33.61
49.81
4,519.10
Total
Assets
7.08
5.50
231.62
3,777.41
1,189.87
6,331.03
4,646.33
615.48
33.61
37.50
4,381.48
Investments
343.54
11.35
309.99
1,518.47
0.04
2,946.93
44.70
373.94
134.86
527.25
1,056.94
188.49
Turnover
15.83
216.26
(1.31)
16.52
(*)
205.75
(24.77)
(85.30)
(425.08)
5.31
(0.34)
0.39
525.15
221.00
119.94
98.21
(56.48)
1.89
0.88
1.42
(0.39)
(0.02)
60.33
0.40
57.02
(1.00)
(0.33)
1.11
(143.19)
3.85
18.09
(54.75)
41.45
(500.45)
(39.61)
(273.79)
Profit
Provision
Before for Taxation
Taxation
14.95
214.84
(0.92)
16.54
(*)
145.42
(24.77)
(85.30)
(425.48)
5.31
(0.34)
0.39
525.15
163.98
120.94
98.21
(56.15)
1.89
2.74
(143.19)
(72.84)
41.45
(500.45)
(39.61)
(273.79)
Profit
After
Taxation
29.17
5.31
114.33
100.00
100.00
100.00
100.00
100.00
100.00
36.84
40.30
100.00
50.06
95.00
100.00
100.00
100.00
75.00
75.00
100.00
100.00
75.00
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
Proposed % holding
Dividend
Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act 2013, read with rule 5 of Companies (Accounts) Rules, 2014
in the prescribed Form AOC-1 relating to subsidiary, joint venture and associate companies
FINANCIAL STATEMENTS
189
190
USD
USD
MAD
USD
SGD
GBP
31-Mar-15 and
Note 1
31st December
2014, Note 2
31st December
2014, Note 3
31-Mar-15
31-Mar-15
31-Mar-15
Latest audited
Balance Sheet Date
2,90,55,612
2,06,666
229.49
166.26
104.49
1.39
25.33%
33.33%
24.98%
33.78%
50%
Amount of
Extend of
Investment
Holding
in Associates/
%
Joint Venture
- 37.50%
2,10,00,000
15,00,00,000
Number of
Shares
Note 7
Note 6
Note 5
Note 6
Note 6
Note 5
Description
of how there
is significant
influence
167.02
71.50
Not Applicable
Rajiv Chandan
General Counsel & Company Secretary
37.62
1.68
3.78
Networth
attributable to
Shareholding
as per latest
audited
Balance Sheet
Cyrus P. Mistry
Chairman
Nusli N. Wadia
Director
Nasser Munjee
Director
Dr. Y. S. P. Thorat
Director
R. Mukundan
Managing Director
Signatures to Notes 1 to 30
Profit
After
Taxation
100.00
100.00
Proposed % holding
Dividend
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
R. Gopalakrishnan
Vice-Chairman
Prasad R. Menon
Director
Eknath A. Kshirsagar
Director
Vibha Paul Rishi
Director
P. K. Ghose
Executive Director & CFO
(5.17)
40.84
(130.92)
(9.37)
0.69
51.65
Profit
Provision
Before for Taxation
Taxation
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Turnover
Notes:
1. Investment impaired during the year ended 31st March, 2015.
2. Local GAAP Financial Statement audited as on 31st December, 2014 and figures are based on audited fit for consolidation statement as on 31st March, 2015.
3. Local GAAP Financial Statement audited as on 31st December, 2014 and figures are based on unaudited financial statement for the quarter ended 31st March, 2015.
4. Kemax B.V., a jointly controlled entity cease to exist with effect from 11th December, 2013 via dissolution order dated 24th September, 2014.
5. There is significant influence due to interest in joint control over the economic activities.
6. There is significant influence due to shareholding and joint control over the economic activities.
7. There is significant influence due to shareholding.
Joint Ventures
Alcad
2
3
Currency
Associates/
Joint Ventures
Brunner Mond B. V., a subsidiary cease to exist with effect from 11th December, 2013 via dissolution order dated 24th September, 2014.
6.
Name
GCSAP Canada Inc. dissolved as a subsidiary with effect from 28th May, 2014.
5.
Sr.
No.
1.39
Investments
4.
Total
Liabilities
16.42
Total
Assets
3.
9.37
Reserves
The financial statements of subsidiaries are converted into Indian Rupees on the basis of exchange rate as on closing day of the financial year.
7.05
Share
Capital
1.
GBP
GBP
Reporting
Currency
2.
Notes
40
41
Statement pursuant to first proviso to sub-section (3) of section 129 of the Companies Act 2013, read with rule 5 of Companies (Accounts) Rules, 2014
in the prescribed Form AOC-1 relating to subsidiary, joint venture and associate companies (contd.)
STATUTORY REPORTS
Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
Businesses should promote the well-being of all employees.
Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised.
Businesses should respect and promote human rights.
Businesses should respect, protect, and make efforts to restore the environment.
Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
Businesses should support inclusive growth and equitable development.
Businesses should engage with and provide value to their customers and consumers in a responsible manner.
Question
P1
P2
P3
P4
P5
P6
P7
P8
P9
Y
(UN Global
CompactGRI)
Y
(RC/
ISO14001)
Y
(OHSAS
18001)
Y
(UN Global
Compact_
GRI)
Y
(SA-8000)
Y
(ISO-14001)
Y
(Tata Code
of Conduct
conforms
to NVG)
Y
(UN Global
CompactGRI)
Y
(Responsible
Care)
Has
the
policy
been
formally
communicated to all relevant internal and
external stakeholders?
10
http://www.tatachemicals.com/Sustainability/sustainability_report.htm
* Note Our Policies are linked to the following National / International Standards :RC 14001, OHSAS 18001, GRI, SA-8000, ISO-9001, ISO-14001 and UNGC.
The full version of BRR can be viewed on the Companys website www.tatachemicals.com
191
Annual Report FY2014-15
192
Reserves
` in lakh
Share Capital
` in lakh
` in lakh
Borrowings
` in lakh
` in lakh
CAPITAL ACCOUNTS
Capital
Gross block
employed
` in lakh
Depreciation
` in lakh
Net block
` in lakh
Gross revenue
` in lakh
Expenses
` in lakh
` in lakh
` in lakh
REVENUE ACCOUNTS
Depreciation Profit before
Taxes
taxes
` in lakh
` in lakh
Distributable Dividends
profit for the
(including
year
dividend tax)
Dividend
per ordinary
share
Earnings
per ordinary
share (Basic)
1944-45
152
8
69
229
186
7
179
16
29
(13)
1949-50
152
10
126
288
240
17
223
116
107
9
0.07
1954-55
192
24
86
302
315
105
210
223
191
18
14
14
14(a)
1.03
1959-60
312
64
325
701
708
207
501
351
303
21
27
1
12
19(b)
0.90
0.60
1964-65
362
220
281
863
1086
443
643
876
649
72
155
63
80
53
2.91
1.60
1974-75
994
906
1189
3089
3765
1375
2390
3464
2652
201
611
250
309
154
3.82
1.60
1979-80
994
2036
2848
5878
7480
3048
4432
5860
4421
513
926
364
434
191
5.97
2.00
1984-85
1594
6705
11987
20286
17032
7317
9715
13570
10429
968
2173
450
1204
352
12.34
2.50
1989-90
4917
25926
34129
64972
35310
14017
21293
30902
23172
2056
5674
1600
3612
1475
8.29
3.00
1990-91
7375
26070
58398
91843
49989
16047
33942
35202
27354
2403
5445
1000
3945
1844
6.03
2.50
1991-92
7375
29831
62262
99468
69797
18618
51179
41204
29580
2650
8974
3000
3974
2212
8.10
3.00
1992-93
9262
41931
95966 147159 119358
21050
98308
48743
34754
2623
11366
3871
6495
2944
8.91*
3.50
1993-94
11268
71225 125245 207738 194562
22632 171930
64698
40424
2266
22008
500
16508
6385
20.21*
6.00
1994-95
11288
92630 152664 256582 209747
26717 183030
92443
59171
4601
28671
6
23165
7342
25.38
6.50
1995-96
18069 113349 154892 286310 224475
36872 187603 155565 103420
10489
41656
2200
22231
11747
21.83
6.50
1996-97
18070 125449 161606 305125 241799
47837 193962 162813 122372
11409
29032
3800
20487
12916
13.96
6.50
1997-98
18070 141396 152755 312221 260896
59053 201843 166151 121432
11513
33205
4350
28863
12916
15.97
6.50
1998-99
18070 149537 157023 324630 273995
70516 203479 150030 117432
11615
20983
2816
18167
10026
10.06
5.00
1999-00
18070 151240 137023 306313 284488
82244 202244 165882 139190
12347
14345
2616
11729
10026
6.50
5.00
2000-01
18070 176474 114627 309171 281238
92802 188436 173411 141518
13284
18609
2114
16495
9953
9.13
5.00
2001-02
18070 137066 106071 307638 285989 104522 181467 151605 118278
13321
20006
7324
12682
9032
7.02
5.00
2002-03
18070 145516
81626 289288 283490 115049 168441 170483 130588
13693
26202
6544
19658
11208
10.88
5.50
2003-04
21516(c) 182018
76554 324291 307025 132880 174145 272984 225961
14415
32608
10555
22053
13347
10.25
5.50
2004-05
21516 178268 132422 367544 311790 155551 156239 322515 263451
13770
45294
11239
34055
15973
15.83
6.50
2005-06
21516 195254 145449 394514 322899 167802 155097 373461 308481
13893
51087
15784
35303
17169
16.41
7.00
2006-07
21516 217768 104177 372583 332657 181183 151474 426923 348504
15035
63384
18963
44421
20133
20.65
8.00
2007-08
23406 333762 234384 619375 346082 194824 151258 484819 354233
14876 115710
20792
94918
24715
42.82
9.00
2008-09
23523 362407 367610 763842 390176 205801 184375 872402 790072
16303
66027
20822
45205
24762
19.25
9.00
2009-10
24332 403964 294651 741969 404115 221106 183009 576975 499443
18719
58813
15335
43478
25529
18.38
9.00
2010-11
25482 448586 297594@ 771822 428661# 235898 192763 656776 580460
20446
55870
15021
40849
29355
16.32
10.00
2011-12
25482 468069 336709@ 839127 457136# 249032 208104 846375 747472
22468
76435
17775
58660
29277
23.03
10.00
2012-13
25482 505250 371640@ 914847 473332# 267348 205984 897412 793447
21429
82536
18205
64331
29446
25.25
10.00
2013-14
25482 544641 303469@ 895153 489918# 286205 203713 911890 839120
15882
56888
13281
43607
29574
17.12
10.00
2014-15
25482 578845 271588@ 895038 503548# 306019 197529 1052933 948253
19271
85409
21612
63797
38202
25.04
12.50
Notes: (a) Including arrears of dividends on preference shares, (b) Including interest paid out of capital on ordinary shares, (c) Includes the balance lying in share capital suspense account amounting to ` 3446 lakh.
* annualised.
@ From year ended 31st March, 2011 onwards borrowings include long-term borrowings +short-term borrowings + current maturity of debt
# From year ended 31st March, 2011 onwards gross block includes capital work-in-progress + capital advances
Year
8.11
7.83
10.80
11.68
15.52
18.06
31.80
53.70
62.73
45.35
50.45
54.84
73.03
92.00
72.72
79.42
88.28
92.79
93.73
105.36
84.35
89.81
94.48
92.80
100.45
111.07
152.64
164.11
176.07
186.09
193.73
208.33
223.79
237.22
Net worth
per ordinary
share
25482
25482
25482
25482
2011-12
2012-13
2013-14
2014-15
529689
531069
615874
608145
519687
447310
453455
348439
235666
67349
65522
53614
44809
40645
35006
15219
4234
` in lakh
Minority
interest
885172
469081
430024
` in lakh
Capital
employed
943730
799062
750208
659278
601187
540514
` in lakh
761275
696771
652819
562667
494683
415966
373512
322157
295582
262573
` in lakh
460432
476215
468350
495141
449047
383096
376696
337121
305605
277941
` in lakh
569972 1161268
499372 1007837
628381 1122734
480669
186420
182769
` in lakh
Borrowings*
1 for 2 at Par
4 for 5 at Par
1 for 5 at Prem Re. 0.5 per share
1 for 5 at Prem Re. 0.5 per share
` in lakh
Expenses
677783 528813
606283 504082
425315 346846
` in lakh
Gross
revenue
983144 845176
532470
464924
76324
70749
` in lakh
Goodwill on
consolidation
46314
47124
53388
50868
45105
44678
42264
31383
27388
18404
` in lakh
115851
(51889)
91303
138343
112096
93290
91732
117587
74813
60065
` in lakh
35112
28878
30252
34392
27492
20932
15751
21147
24009
17231
` in lakh
Taxes
REVENUE ACCOUNTS
314
` Lakh
48
112
50
104
1954-55
1957-58
1961-62
1972-73
20553
22100
20703
19946
19257
13114
11171
` in lakh
Minority
interest
1 for 10
3 for 10
1 for 5
1 for 2
2 for 5
1 for 2
3 for 5
10540
30
100
87
311
777
2458
6777
` Lakh
40040
83759
65347
60591
64810
96440
50804
42834
` in lakh
(540)
59646
(333) (103200)
(308)
(246)
1347
` in lakh
23.41
(40.51)
15.72
32.88
26.10
25.61
27.59
43.51
23.62
19.91
217.92
218.46
251.75
248.72
214.00
193.89
202.81
158.96
119.52
103.11
1966-67
1968-69
1970-71
1974-75
1985-86
1990-91
1995-96
bonus issue
* From year ended March 31, 2011 onwards borrowings include long-term borrowings + short-term borrowings + current maturities of long-term debts and finance lease obligations.
# From year ended March 31, 2011 onwards gross block and net block includes capital work-in-progress + intangibles assets held under development + capital advances.
25482
2010-11
23523
2008-09
24332
23406
2007-08
2009-10
21516
2006-07
200419
` in lakh
` in lakh
21516
Reserves
Share capital
2005-06
Year
CAPITAL ACCOUNTS
FINANCIAL STATEMENTS
193
Notes
194
Annual Report FY2014-15
Folio No.
No. of securities
Certificate No.
Signature(s)
Signature
Distinctive No.
Or
I/We hereby nominate the following person in place of
as nominee in respect of the below mentioned
securities in whom shall vest all rights in respect of such securities in the event of my / our death.
(1) PARTICULARS OF THE SECURITIES (in respect of which nomination is being cancelled / varied)
Nature of securities
Folio No.
No. of securities
Certificate No.
Name :
ii.
Date of Birth:
iii.
iv.
Occupation:
v.
Nationality:
vi.
Address:
Date of birth:
ii.
iii.
Name of guardian:
iv.
Address of guardian :
(3) PARTICULARS OF NOMINEE IN CASE MINOR NOMINEE DIES BEFORE ATTAINING AGE OF MAJORITY -(i)
Name :
Signature(s)
Signature
Distinctive No.
ATTENDANCE SLIP
76th ANNUAL GENERAL MEETING ON TUESDAY, 11TH AUGUST, 2015 AT 3.00 P.M.
at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai 400 020.
Folio No.:
DP ID No.:
Client ID No.:
I / We hereby record my/our presence at the SEVENTY SIXTH ANNUAL GENERAL MEETING of the Company at Birla Matushri Sabhagar, 19,
Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai 400 020, at 3.00 p.m. on Tuesday, 11th August, 2015.
Name of the Member
Signature
Signature
Notes: 1.
2.
3.
PROXY FORM
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]
Name of Member(s)
Registered address
E-mail ID
DP ID No.:
Name:
Address:
Signature:
2.
Or failing him/her;
Email ID:
Name:
Address:
Signature:
3.
Or failing him/her;
Email ID:
Name:
Address:
Signature:
as my/our Proxy to attend and vote (on a poll) for me/us and on my/our behalf at the SEVENTY SIXTH ANNUAL GENERAL MEETING of the Company
to be held on Tuesday, 11th August, 2015 at 3.00 p.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, New Marine lines, Mumbai
400 020 and at any adjournment thereof in respect of such resolutions as are indicated overleaf:
Sr.
No.
Resolutions
Ordinary Business
1.
To receive, consider and adopt (a) the Audited Financial Statements for the financial year ended 31st March, 2015 together with the Reports of the Board of Directors
and Auditors thereon; and
(b) the Audited Consolidated Financial Statements for the financial year ended 31st March, 2015 together with the Report of the
Auditors thereon.
2.
3.
4.
Special Business
5.
Signed this
day of
2015
Affix
Revenue
Stamp
Signature of Proxyholder(s)
Note: 1. This Form 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.
2. A proxy need not be a member of the Company.
3. For the Resolutions, Explanatory Statement and Notes, please refer to the Notice of the SEVENTY SIXTH ANNUAL GENERAL MEETING of
the Company.
Salt of the Earth a book capturing the story of Tata Chemicals journey over 75 years
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17
Annual Report FY2014-15
Registered Office
Bombay House, 24, Homi Mody Street, Fort,
Mumbai - 400001 India.
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