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Integrated report Statutory reportS FInancIal StatementS
Board's Report

Dividend of State governments, providing sodium hydrochloride, hand
For FY 2019-20, the Board of directors has recommended a dividend sanitizers, medical infrastructure, supply of dry ration, driver kit,
of ` 11.00 per share i.e. 110% (previous year ` 12.50 per share hygiene kit, distribution of masks, awareness drives, etc. In addition
i.e. 125%) on the ordinary Shares of the Company. If declared by the to this, voluntary contributions by the Company as well as its
Members at the ensuing annual general Meeting (‘agM’), the total employees were also made to the tata Community Initiatives trust
dividend outgo during FY 2020-21 would amount to ` 280.23 crore for contribution towards the said purpose.
(previous year ` 378.90 crore including dividend distribution tax).
In view of the outbreak of the pandemic, the Company undertook
Dividend Distribution Policy timely and essential measures to ensure the safety and well-being
of all its employees at all its plant locations, various branch offices
In accordance with regulation 43a of the listing regulations, and the head office. the Company observed all the government
the Board of directors of the Company has adopted a dividend advisories and guidelines thoroughly and in good faith.
distribution policy (‘policy’) which endeavours for fairness,
consistency and sustainability while distributing profits to Demerger of the Consumer Products Business
the shareholders. the policy is attached to this report as
Annexure 1 and same is available on the Company’s website at With a view to enable the Company to focus on its Basic Chemistry
https://www.tatachemicals.com/dividenddistpolicy.htm. and Specialty products Business and to integrate the Consumer
products Business activities undertaken by both, the Company
Covid-19 pandemic and tata Consumer products limited (formerly known as tata
global Beverages limited), under a single entity, the Board of
the Covid-19 pandemic is the defining global health crisis of our directors of the Company at its Meeting held on May 15, 2019
time and is spreading very fast across the continents. But it is much approved the Scheme of arrangement amongst tata Consumer
more than a health crisis and is having an unprecedented impact products limited (‘tCpl’) and the Company and their respective
on people and economies worldwide.
shareholders and creditors (‘the Scheme’) for the demerger of the
Consumer products Business of the Company (‘CpB’) to tCpl. the
the Company is taking all necessary measures in terms of mitigating CpB consisted of the business of sourcing, packaging, marketing,
the impact of the challenges being faced in the business. though distribution and sales of (i) vacuum evaporated edible common
the long-term directional priorities of the Company remain firm, salt for human consumption, (ii) spices, (iii) protein foods and (iv)
in light of Covid-19 and its expected impact on the operating certain other food and other products.
environment, the key priorities of the Company would be to closely
monitor supply chain, conserve cash and control fixed costs, while pursuant to the order dated September 11, 2019 passed by the
continuing to invest in some of the growth areas. during this Hon’ble national Company law tribunal (‘nClt’), Mumbai Bench,
period, the Company has also initiated digital interventions to and in terms of Sections 230 to 232 of the Companies act, 2013
honour its commitment to suppliers and partners. read with the Companies (Compromises, arrangements and
amalgamations) rules, 2016, the Members of the Company at a
the Ministry of Home affairs, government of India on duly convened meeting held on october 30, 2019 approved the
March 24, 2020 notified the first ever nationwide lockdown in Scheme by a requisite majority. thereafter, the nClt, Mumbai
India to contain the outbreak of Covid-19. towards the end of Bench and Kolkata Bench, vide their respective orders dated
the quarter ended March 2020, the operations were disrupted at January 10, 2020 and January 8, 2020, sanctioned the Scheme.
certain manufacturing facilities of the Company. the manufacturing the Scheme became effective on February 7, 2020 upon filing of
operations at Mithapur (gujarat) for the production of soda ash and the certified copies of the orders of nClt sanctioning the Scheme
cement were scaled down temporarily. Inspite of such scale down, with the respective jurisdictional registrar of Companies. pursuant
the Company took efforts to ensure normalcy in the production to the Scheme becoming effective, CpB is demerged from the
and movements of tata Salt and sodium bicarbonate which are Company and transferred to and vested in tCpl with effect from
essential inputs for food and pharma products. the plants located april 1, 2019 i.e. the appointed date. accordingly, the operations
at Mambattu, nellore (andhra pradesh) and Sriperumbudur of CpB have been classified as discontinued operations. Further,
(tamil nadu) producing Fructooligosaccharide (‘FoS’) and Cuddalore Members may refer to note 34 of the Standalone audited Financial
(tamil nadu) producing Silica resumed operations towards the end Statements for the impact on the Financial Statements pertaining
of april 2020 after a shutdown for around four weeks. to the Scheme.

the Company has taken various initiatives towards financial, In accordance with the provisions of the Scheme, shareholders of
medical and community support in the fight against Covid-19 tata Chemicals limited holding 100 shares of ` 10 each as on the
pandemic. this included financial support towards the relief funds record date i.e. March 5, 2020, were allotted 114 equity Shares of

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