REPORT PROFILE
Decision not to apply GRI principles (2.17)
This is our sixth consecutive Corporate Sustainability Report that highlights our performance for the year 2005-2006. This report has been prepared in accordance with GRI - 2002 guidelines. It represents a balanced and reasonable presentation of our organization’s economic, environmental and social performance. The deviations if any, have been explained adequately at appropriate places.

Criteria/Definitions / Guidelines Used (2.18)
Green House Gas (GHG) protocol guidelines of World Business Council for Sustainable Development are used for GHG emission reporting. Financial & Economic data are reported as per the guidelines provided in the Company Law of India and Indian GAAP Standards.

Monitoring, measurement and calibration is carried out as per relevant Indian standards. Documentation and communication are done as per the requirement of ISO-9001 & ISO-14001, OHSAS-18001 & SA-8000. The norms and procedures prescribed for workplace Safety and Environment by Ministry of Environment, Ministry of Labour & Welfare (Factories Act) is followed in conducting business at Tata Steel. These Acts include Water Act, Air Act, Environment Protection Act, Factories Act, Explosive Act, Petroleum Act, Electricity Rules, Workmen Compensation Act, Public Liability Insurance Act, Hazardous Waste Management & Handling Rules and Hazardous Chemicals Manufacturing & Handling Rules.

Significant changes in the measurement methods (2.19)
None.

Policies and internal practices to enhance and provide assurance (2.20)
Sustainability Performance Assurance
Tata Steel has adopted the Tata Business Excellence Model (TBEM) based on the Malcolm Baldrige criteria. Sustainability Performance of Tata Steel is embedded in this model. TBEM requires, besides institution of systems and processes, performance monitoring and reporting as per the criteria delineated in the Model. The approach and extent of deployment, maturity of the system deployed and the consequent business results are required to be assessed by external assessors. The application is assessed by a group of experts appointed by TQMS. The tabletop assessment of the application is followed by (a) site visit and (b) discussions with concerned senior executives and shop floor employees about the issues covered in the application.

Economic Performance Assurance
Tata Steel’s financial performance and risk management assurance is provided by an in-house Internal Audit function. The Internal Audit function has chartered accountant and professionals headed by Chief (Internal Audit) who reports to the Managing Director and the Audit Committee of the Board.

The Quarterly, Half Yearly and Annual books of account are audited by internal and external auditors. The external auditors appointed by the Audit Committee and approved by the shareholder are M/s. A F Ferguson & Co. and S B Billimoria & Co. M/s. A F Ferguson & Co. are Chartered Accountants of global repute. The scope of external audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The audit was done in accordance with auditing standards accepted in India.

Environment, Health & Safety
The independent 3rd party audits are conducted by M/s. IRQS for divisions certified to Environmental Management System, ISO 14001:2004 and Occupational Health and Safety Management System, OHSAS 18001:1999 once in a year.

Besides this, independent assessment is also conducted for legal Compliance and Safety by M/s. Pricewaterhouse Coopers and Telos Consultancy Services respectively.

Society - Social audits are conducted once in every 10 years by a bench of external auditors comprising eminent personalities from the judiciary, social organizations and financial institutions appointed by Tata Steel’s Board of Directors. The last audit was conducted in 2004.
Steel Works at Jamshedpur & Sukinda Chromite Mines were certified to SA-8000 in 2004. M/s. DNV and M/s RINA conduct the external audit of the system half-yearly at respective places.

Policy and current practice on independent assurance (2.21)
Tata Steel shall continue to get an independent assurance of its Corporate Sustainability Report. Accordingly, Tata Steel has appointed Pricewaterhouse Coopers (P) Limited as independent assurance providers. Their independent assurance report has been included at the beginning of this report.

Additional information (2.22)
Additional information on economic, environmental and social performance of the organization can be made available on request from the contact persons indicated in 2.10 above.