Finance
During the year under review the company posted a strong financial result with total earnings at Rs.153941.5 Million and Net Profit after taxes at Rs.35,063.8 Million compare to previous year’s total income of Rs.146469.8 Million and Net Profit after taxes of Rs.34,741.6 Million.

International Credit Rating Agency Standards & Poor’s (S&P) upgraded foreign currency rating of the Company to “BBB” with stable outlook, which is two notches above India’s sovereign rating. With this rating, the Company is in the investment grade for any foreign currency debt issuance. According to S&P, the Company is considered well insulated from direct and indirect sovereign risks since it demonstrates moderate leverage, strong free cash flow generation and a competitive business profile. In the recent past, the Company has been strengthening its balance sheet by increasing cash flows, reducing interest cost and improving working capital management. With these efforts, the Company is in a position to take advantage of growth opportunities in the global steel market.

Safety & Environment
In line with our Corporate Vision to improve the safety and quality of life of employees, Tata Steel has initiated a safety excellence journey under the guidance of DuPont Safety Resources since 2004, world-class leader in safety. The safety program, which began at the Steel Works, has been rolled across all locations including mines. These initiatives have shown perceptible change in the behavior of employees at and outside the place of work. The company aspires to become world-class in safety.

The Company assesses the impact of its activities, products and services on the environment and takes improvement measures through well-established systems including the Environmental Management System (ISO-14001), Occupational Health & Safety Management System (OHSAS-18001) and Social Accountability Standard (SA-8000). Concerns of various stakeholders are identified, prioritized and addressed through the organization’s leadership system.

Initiatives undertaken for improvement resulted in reduction of specific energy consumption to 6.959GCal/tcs in FY06 from 6.965GCal/tcs in FY05 and total water pollutant discharge to 0.181kg/tcs in FY06 from 0.205kg/tcs in FY05. Tata Steel has shown its commitment to address climate change issues by continuously reducing Carbon dioxide (CO2) emissions in the last decade. The CO2 emissions were brought down to a level of 2.28t/tcs in FY06, a reduction of 1.7% over FY05. Tata Steel has taken up several projects to improve its energy efficiency and avail carbon credits under Clean Development Mechanism (CDM) under Kyoto Protocol. The Designated National Authority of India has already approved two projects having potential to reduce 1.1 million tonnes of CO2 per annum. Several other projects are in the pipeline for CO2 reduction to the tune of 2 million tonnes per annum.

Improving Quality of Life
In line with the Company’s vision to continue to improve the quality of life of employees and the communities we serve, Tata Steel has been actively involved in a number of initiatives to support community development.

Tata Steel continues its commitment to develop and maintain the city of Jamshedpur where presently more than 75% of the populations are not employees of the Company. The most critical civic amenity, water, was addressed by setting up a mega water supply project to provide filtered water to the residents of Ullyan and Bhatia Bustee. This 32 km pipeline network is a unique concept in Citizen-Private Partnership model, benefiting more than 20,000 residents. Tata Steel also set up 116 tube wells benefiting 1800 households in the nearby rural communities and has conducted extensive awareness campaigns for efficient water management. The Sukinda Chromite Mines, in Orissa, completed ‘Operation BIJLI’, a special project which has facilitated the supply of electricity to 20 villages, under four Gram Panchayats, by the construction of an electrical sub station. In other areas Tata Steel continues its commitment to invest in the communities surrounding its projects and fundamental to this ethic is ensuring that comprehensive rehabilitation and resettlement projects are carried out where necessary.

To support training and education in the community, the Tata Steel Rural Development Society (TSRDS) ran Adult Literacy Programs for 6500 illiterate adults in peri-urban areas of Jamshedpur and educated nearly 2000 children in bustees through the Bal Vikas Classes run in association with the Jharkhand Education Project. Tata Steel was also involved in establishing the JN Tata Education Centre for technical skills development and the Institute of Mathematics and Applications, both in Orissa as well as providing skills training in bustees in Jamshedpur.

Tata Steel has continued to invest strongly in sports development as a means to achieve wider social and economic outcomes. In FY 05-06, several cadets of Tata Football Academy, Tata Archery Academy and Tata Athletics Academy made successful international representations and came out winners in events like Asian Indoor Championship, Athletics Championship and the Senior National Archery Championship. Some of the