Page 69 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 Board's Report 147-300

Further, an application for cancellation of its Tax Company, work performed by the internal, statutory, cost
Identification Number has been made and the approval and secretarial auditors and external consultant(s), including
for the same is awaited audit of internal financial controls over financial reporting
by the statutory auditors and the reviews performed by the
The Company’s Policy on determining material
subsidiaries, as approved by the Board, is uploaded on the Management and the relevant Board Committees, including
Company’s website at https://www.tatachemicals.com/ the Audit Committee, the Board is of the opinion that the
MaterialSubsPolicy.htm. Company’s internal financial controls were adequate and
effective during FY 2020-21.
A report on the financial position of each of the
subsidiaries and joint ventures as per the Act is provided Accordingly, pursuant to Section 134(5) of the Act, the Board
in Form No. AOC-1 attached to the Financial Statements. of Directors, to the best of their knowledge and ability,
confirm that for the year ended March 31, 2021:
20. Details of Significant and Material Orders
a) in the preparation of the annual accounts, the
No significant and material orders were passed by the applicable accounting standards have been followed
regulators or the courts or tribunals impacting the going and that there are no material departures;
concern status and the Company’s operations in future.
b) they have selected such accounting policies and
21. Internal Financial Controls applied them consistently and made judgements and
estimates that are reasonable and prudent so as to
Internal financial control systems of the Company are
commensurate with its size and the nature of its operations. give a true and fair view of the state of affairs of the
These have been designed to provide reasonable assurance Company at the end of the financial year and of the
with regard to recording and providing reliable financial profit of the Company for that period;
and operational information, complying with applicable c) they have taken proper and sufficient care for the
accounting standards and relevant statutes, safeguarding maintenance of adequate accounting records
assets from unauthorised use, executing transactions with in accordance with the provisions of the Act for
proper authorisation and ensuring compliance of corporate safeguarding the assets of the Company and for
policies. The Company has a well-defined delegation of preventing and detecting fraud and other irregularities;
authority with specified limits for approval of expenditure,
both capital and revenue. The Company uses an established d) they have prepared the annual accounts on a going
Enterprise Resource Planning (ERP) system to record concern basis;
day-to-day transactions for accounting and financial
reporting. e) they have laid down internal financial controls to
be followed by the Company and that such internal
The Audit Committee deliberated with the members of the
management, considered the systems as laid down and met financial controls are adequate and are operating
the internal audit team and statutory auditors to ascertain, effectively; and
their views on the internal financial control systems. f) they have devised proper systems to ensure compliance
The Audit Committee satisfied itself as to the adequacy with the provisions of all applicable laws and that such
and effectiveness of the internal financial control system systems are adequate and operating effectively.
as laid down and kept the Board of Directors informed.
However, the Company recognises that no matter how the 23. Corporate Governance and Compliance
internal control framework is, it has inherent limitations and
accordingly, periodic audits and reviews ensure that such The Company strives to evolve and follow the best
systems are updated on regular intervals. governance practices, not just to boost long-term
shareholder value, but also to respect minority rights.
Details of internal control system are given in the The Company considers the same as its inherent
Management Discussion and Analysis which forms part of responsibility to disclose timely and accurate information to
this Integrated Annual Report.
its stakeholders regarding its operations and performance,
as well as the leadership and governance of the Company.
22. Directors’ Responsibility Statement The Company is committed to the Tata Code of Conduct
Based on the framework of internal financial controls and which articulates values and ideals that guide and govern
compliance systems established and maintained by the the conduct of the Tata companies as well as its employees

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