Page 79 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Board’s Report

Despite global disruptions due to COVID-19 pandemic, the 12. Related Party Transactions
Company’s credit ratings were reaffirmed during the year In line with the requirements of the Companies Act, 2013
under review. The Company as on March 31, 2022 had the (‘the Act’) and SEBI Listing Regulations, as amended from
following credit ratings: time to time, the Company has formulated a Policy on
– Long Term Corporate Family Rating – Foreign Currency Related Party Transactions (‘RPT Policy’) for identifying,
of Ba1/Stable from Moody’s Investors Service reviewing, approving and monitoring of Related Party
Transactions. The RPT Policy was revised pursuant to
– Long Term Issuer Default Rating (IDR) of BB+ with the amendment to the SEBI Listing Regulations and
Stable outlook from Fitch Ratings the same is available on the Company’s website at

– Long Term bank facilities (fund-based limits) of ` 1,300 https://www.tatachemicals.com/RPTPolicy.htm.
crore and short term bank facilities (non-fund based All related party transactions entered into during
limits) of ` 2,000 crore are rated at CARE AA+ (Outlook: FY 2021-22 were on arm’s length basis and in the ordinary
Stable) and CARE A1+ respectively, by CARE Ratings course of business and were reviewed and approved by
and the Audit Committee. With a view to ensure continuity of
day-to-day operations, an omnibus approval is obtained for
– Commercial Paper of ` 100 crore is rated at CRISIL A1+
by CRISIL Ratings related party transactions which are of repetitive nature and
entered in the ordinary course of business and on an arm’s
8. Dividend Distribution Policy length basis. A statement giving details of all related party
transactions entered pursuant to the omnibus approval so
In accordance with Regulation 43A of the SEBI Listing granted is placed before the Audit Committee on a quarterly
Regulations, the Board of Directors of the Company basis for its review. The related party transactions entered
has adopted a Dividend Distribution Policy which into pursuant to the omnibus approval so granted are also
endeavours for fairness, consistency and sustainability reviewed as part of the internal audit by an independent
while distributing profits to the shareholders. The external firm on a half-yearly basis.
same is available on the Company’s website at
https://www.tatachemicals.com/DividendDistPolicy.htm. The Company did not enter into any contracts or
arrangements with related parties in terms of Section 188(1)
9. Transfer to Reserves and no material related party transactions were entered into
by the Company during the year under review. Accordingly,
The Board of Directors has decided to retain the entire the disclosure of related party transactions as required
amount of profits for FY 2021-22 in the retained earnings.
under Section 134(3)(h) of the Act in Form No. AOC-2 is not
10. Deposits from Public applicable to the Company for FY 2021-22 and hence does
not form part of this Integrated Annual Report.
The Company has not accepted any deposits from public
and as such no amount on account of principal or interest on In terms of Regulation 23 of the SEBI Listing Regulations, the
deposits from public was outstanding as on March 31, 2022. Company submits details of related party transactions on a
consolidated basis as per the format specified in the relevant
11. Business Responsibility & Sustainability accounting standards to the stock exchanges on a half-yearly
Report basis.
The Company endeavours to cater to the needs of the The details of the transactions with related parties are
communities it operates in thereby creating maximum provided in the accompanying Financial Statements.
value for the society along with conducting its business
in a way that creates a positive impact and enhances 13. Risk Management
stakeholder value. As per Regulation 34(2)(f) of the SEBI Risk Management at Tata Chemicals forms an integral part of
Listing Regulations and in line with the SEBI Circulars Management focus.
dated May 5, 2021 and May 10, 2021, though voluntary for The Risk Management Policy of the Company, which is
FY 2021-22, the Company has, as a matter of good governance, approved by the Risk Management Committee of the Board
adopted the Business Responsibility & Sustainability Report (‘RMC’) and the Board of Directors, provides the framework
(‘BRSR’) disclosing initiatives by the Company taken from an of Enterprise Risk Management (‘ERM’) by describing
environmental, social and governance perspective. The BRSR mechanisms for the proactive identification and prioritisation
forms part of this Integrated Annual Report. of risks based on the scanning of the external environment

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