Page 66 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

across India towards the end of March 2021 is being closely All transactions with related parties were reviewed and
monitored and all necessary actions are underway. approved by the Audit Committee. Omnibus approval is
obtained for related party transactions which are of repetitive
In order to respond to the pandemic effectively, the nature and entered in the ordinary course of business and on
Company navigated through these difficult times by an arm’s length basis. A statement giving details of all related
developing and adopting a multi-pronged strategy. The party transactions entered pursuant to omnibus approval so
Company practised extreme care and caution towards granted is placed before the Audit Committee on a quarterly
the health and well-being of its employees and partners basis for its review. The related party transactions entered
while ensuring this care and caution was extended to the into pursuant to the omnibus approval so granted are also
community at large. The Company’s operations and assets reviewed by the internal audit team on a half-yearly basis.
were managed to ensure prioritisation of products that
were part of essential needs of the masses and markets by The details of the transactions with related parties are
optimising on available manpower, raw materials and supply provided in the accompanying Financial Statements.
chain support. The Company regularly adhered to various
guidelines and advisories issued by the authorities from 13. Risk Management
time to time including maintaining social distancing at all Risk Management at Tata Chemicals forms an integral part of
its plant operations. Reduced manpower in shift working, Management focus.
working from home, staggering of breaks and postponing The Risk Management Policy of the Company provides
non-critical projects were some of the actions taken in the framework of Enterprise Risk Management (‘ERM’) by
conjunction with provision of all facilities such as sanitation, describing mechanisms for the proactive identification and
temperature checks, masks, etc. The Company maintained prioritisation of risks based on the scanning of the external
strict vigilance over cash conservation and working capital environment and continuous monitoring of internal risk
optimisation besides initiating digital interventions to move factors. The ERM framework identifies, evaluates, manages
to touchless and remote operations. and reports risks arising from the Company’s operations and
exogenous factors.
10. Deposits from Public
The Company has deployed bottom-up and top-down
The Company has not accepted any deposits from
public and as such, no amount on account of principal or approaches to drive enterprise wide risk management.
interest on deposits from public was outstanding as on The bottom-up process includes identification and
March 31, 2021. regular assessment of risks by the respective business
units and implementation of mitigation strategies. This is
complemented by a top-down approach where the senior
11. Business Responsibility Report
management as well as the Board level Risk Management
Pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations, Committee (‘RMC’) identifies and assesses long-term,
the Business Responsibility Report initiatives taken from strategic and macro risks for the Company.
an environmental, social and governance perspective in
the prescribed format forms part of this Integrated Annual The RMC oversees the risk management process in the
Report. Company. The RMC is chaired by an Independent Director
and the Chairperson of the Audit Committee is also a
12. Related Party Transactions member of the RMC. This robust governance structure has
also helped in the integration of the ERM with the Company’s
The Company has formulated a Policy on Related strategy and planning processes where emerging risks
Party Transactions which is available on the Company’s are used as inputs in the strategy and planning process.
website at https://www.tatachemicals.com/RPTPolicy.htm. Identified risks are used as one of the key inputs in the
All related party transactions entered into during FY 2020-21 strategy and business plan.
were on arm’s length basis and in the ordinary course
of business. No material related party transactions were A systematic review of risks identified is subject to a series
entered into during the year under review by the Company. of focussed meetings of the empowered Risk Management
Accordingly, the disclosure of related party transactions Group (Senior Leadership Team), respective Business level/
as required under Section 134(3)(h) of the Companies Act, Subsidiary level Committee and the RMC of the Board.
2013 (‘the Act’) in Form No. AOC-2 is not applicable to the The RMC meets periodically to review key strategic and
Company for FY 2020-21 and hence the same is not provided. operational risks and assess the status of mitigation measures.

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