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Carbon Disclosure Project (‘CDP’) To have access to advance and cutting edge data analytical tools
and technologies along with inputs and insights on industry best
CDP is a not-for-profit charity that facilitates the global disclosure
practices, the Company has co-partnered and engaged a reputed
system for investors, companies, cities, states and regions and helps
them to manage and report on their environmental impacts. It has external firm was ensured from second quarter of FY 2017-18. Reviews
developed a system that leads an engagement on environmental are conducted on an on-going basis, based on a comprehensive risk-
issues across the world. Its vision is to develop a thriving economy based audit plan, which is approved by the Audit Committee at the
that works for both people and planet. Tata Chemicals has been beginning of the year.
reporting on CDP climate change, CDP water and CDP supply chain.
The Audit Committee meets on a quarterly basis to review and discuss
Currently, CDP not only helps in disclosure, but also helps to evaluate the various Internal Audit reports and also review closure of all agreed
the performance based on predefined performance categories. This actions and compliance to the audit plan.
helps the organisation to perform better on an Y-o-Y basis to achieve
the desired goal. Tata Chemicals has maintained the performance The Company believes that every employee has a role to play in
grade “ B “ in CDP 17 as well, same as previous year. fostering an environment in which controls, assurance, accountability
and ethical behaviour are accorded high importance. To supplement Integrated Report
the reviews carried out by the Internal Audit teams, the Company
Emission intensity (tonnes CO2/tonnes produced)
follows an elaborate system of Control Self Assurance (‘CSA’) (self-
audit) which is carried out during the year. The CSA coverage includes
2017-18 0.40 all critical departments in the organisation.
2016-17 0.69 The IT enabled CSA process provides a good bottom-up approach and
2015-16 0.67 build up for the CEO/CFO certification as required under Regulation
17(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Green House Gas emission intensity Regulations, 2015, besides helping in awareness creation of controls
BUSINESS EXCELLENCE across a wide segment of the Company employees. This complements
the Internal Audits conducted to ensure total coverage during a year.
The Company remains committed to continually raise the bar
on performance in all aspects of the business. The Tata Business RISK MANAGEMENT FRAMEWORK
Excellence Model (‘TBEM’) serves as a pivotal framework that allows
The following section discusses various dimensions of TCL’s Enterprise Statutory Reports
the Company to gain insights into its performance and establish
Risk Management. The risk-related information outlined in this section
continuous improvement initiatives for attaining superior business
is not exhaustive and is for information purposes only. The discussion
results and maximising satisfaction and value to the customers. The
may contain statements, which may be forward looking in nature.
TBEM framework comprises six core aspects of business excellence:
Leadership, Strategic Planning, Customer Focus, Measurement The Company’s business model is subject to uncertainties that could
Analysis and Knowledge Management, Workforce Focus and Process cause actual results to differ materially from those reflected in the
Management. For a global organisation which has its manufacturing forward looking statements.
operations spread across four continents, with diverse business
segments and employees from different cultures, TBEM serves as a Overview
platform to establish a common standard of excellence. The Company Risk Management and Internal Audit functions complement each
participates in the Tata Group level TBEM assessments, which provide
other. Enterprise Risk Management (‘ERM’) at TCL seeks to minimise
valuable inputs into the strengths and areas of focus for the Company. adverse impact on the business objectives and enhance stakeholder
This helps TCL to strengthen the culture of excellence and progress
value.
towards becoming a world class organisation.
Over the years, the ERM process has evolved into a robust exercise
INTERNAL CONTROLS Financial Statements
entailing a balanced bottom-up and top-down approach covering all
The Company has an independent Internal Audit Department with units, functions and departments of the Company and its subsidiaries.
well-established risk management processes both at the business
The ERM process framework has evolved and matured over the
and corporate levels. The Controller - Risk reports directly to the
years and is based on international standards such as ISO 31000 and
Chairman of the Audit Committee of the Board of Directors, which
Committee of Sponsoring Organisations of the Treadway Commission
ensures process independence.
(‘COSO’) with inputs drawn from the best practices of leading
The scope and authority of the Internal Audit Department is companies across industries.
derived from the Audit Charter approved by the Audit Committee.

Management Discussion and Analysis 105