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environmental, social and governance perspective in the the Company has a rMC of the Board in place to oversee the risk
prescribed format is available as a separate section of this annual management process in the Company. the rMC meets quarterly
report. to review key strategic and operational risks and assess the status
of mitigation measures. rMC assists the audit Committee and the
Related Party Transactions Board of directors in overseeing the Company’s risk management
processes and controls.
the Company has formulated a policy on related party
transactions and manner of dealing with related party transactions Some of the risks identified are set out in the Management
which is available on the Company’s website at the link: discussion and analysis which forms part of this annual report.
https://www.tatachemicals.com/rptpolicy.htm.
Corporate Social Responsibility
all related party transactions entered into during FY 2019-20 were
on an arm’s length basis and in the ordinary course of business. the Corporate Social responsibility (‘CSr’) activities of the Company
no material related party transactions were entered into during are governed by the Corporate Social responsibility Committee
the financial year by the Company. accordingly, the disclosure (erstwhile CSr, Safety and Sustainability Committee) of the Board.
of related party transactions as required under Section 134(3)(h) the Corporate Social responsibility policy (‘CSr policy’) approved
of the act in Form aoC-2 is not applicable to the Company for by the Board guides in designing CSr activities for improving
FY 2019-20. quality of life of society and conserving the environment and bio-
diversity in a sustainable manner.
all transactions with related parties were reviewed and approved
the Company has adopted a participatory approach in designing
by the audit Committee. prior omnibus approval is obtained for
need based CSr programmes which are implemented through
related party transactions which are of repetitive nature and entered tata Chemicals Society for rural development (‘tCSrd’), okhai
in the ordinary course of business and on an arm’s length basis. Centre for empowerment, uday Foundation, ncourage Social
the transactions entered into pursuant to the omnibus approval enterprise Foundation and in partnership with various government
so granted are reviewed by the internal audit team. thereafter, a and non-government institutions. the Company carried out its
statement giving details of all related party transactions, entered CSr activities in gujarat, uttar pradesh, West Bengal, tamil nadu,
pursuant to omnibus approval so granted, is placed before the andhra pradesh, Maharashtra, Madhya pradesh, north eastern
audit Committee on a quarterly basis for its review. states, etc.

the details of the transactions with related parties are provided in the Company has an integrated approach to community
the accompanying Financial Statements. development which helps in touching all aspects of society such
as livelihood, education, health, environment and empowerment
Risk Management Policy of the weaker section of the society especially women, scheduled
caste and scheduled tribes. the Company’s programme framework
the risk Management policy of the Company provides the linked to un Sdgs (Sustainability development goals) 1, 2, 3, 4, 5,
framework of enterprise risk Management by describing 6, 7, 10, 13, 14, 15 & 17 has the following elements viz. building
mechanisms for the proactive identification and prioritisation economic capital, ensuring environmental integrity, enablers for
of risks based on the scanning of the external environment social, economic and environmental development and building
and continuous monitoring of internal risk factors. analysis of social capital.
the risks identified is carried out by way of focussed discussion
at the meetings of the empowered risk Management group to further our efforts and reach to a larger community, the
(Senior leadership team), respective Business level/Subsidiary Company has created two centres of excellence – Centre for
level Committee and risk Management Committee (‘rMC’) of Sustainable agriculture & Farm excellence (C-SaFe) through its
the Board. subsidiary rallis and Centre for Sustainable Conservation action
for protection of ecosystems of the Seas (C-SCapeS), which focus
the robust governance structure has also helped in the integration on scientific research, piloting models, advocacy, capacity building
of the enterprise risk Management process with the Company’s and field implementation through multi stakeholder engagement.
strategy and planning processes where emerging risks are used
as inputs in the strategy and planning process. Identified risks are to create self-sustaining models of development, the Company
used as one of the key inputs in the strategy and business plan. has set up social enterprises, okhai and ncourage Social enterprise
the risk management process has been implemented across Foundation to help in creating livelihood options for the
geographies and businesses. communities.

66 I Integrated annual report 2019-20