99
Notice
Directors’ Report
(69-103)
Management Discussion & Analysis
Corporate Governance
Secretarial Audit Report
adequacy of internal controls, compliance with Accounting
Standards as well as reasons for changes in accounting
policies and practices, if any;
Documenting of major business processes and testing thereof
including financial closing, computer controls and entity level
controls. as part of compliance programme towards Sarbanes-
Oxley Act, as required by the listing requirements at New York
Stock Exchange;
An on-going program for reinforcement of the Tata Code of
Conduct. The Code covers integrity of financial reporting,
ethical conduct, regulatory compliance, conflict of interests
review and reporting of concerns.
State-of-the-art ERP, Supplier Relations Management and
Customer Relations Management, connect its different
locations, dealers and vendors for efficient and seamless
information exchange. A comprehensive information security
policy and continuous upgrades to IT system;
Detailed business plans for each segment, investment
strategies, year-on-year reviews, annual financial and operating
plans and monthly monitoring are part of the established
practices for all operating and service functions;
A well-established, independent, multi-disciplinary Internal
Audit team operates in line with governance best practices.
It reviews and reports to management and the Audit
Committee about the compliance with internal controls and
the efficiency and effectiveness of operations and the key
process risks. The scope and authority of the Internal Audit
division is derived from the Audit Charter, duly approved by
the Audit Committee;
Anti-fraud programmes including Whistle Blower mechanism
is operative across the Company.
The Board takes responsibility for the overall process of risk
management in the organisation. Through an Enterprise
Risk Management programme, each Business Unit addresses
opportunities and the attendant risks through an institutionalized
approach aligned to the Company’s objectives. This is also facilitated
by internal audit. The business risk is managed through cross
functional involvement and communication across businesses. The
results of the risk assessment and residual risks are presented to the
senior management. The Audit Committee reviews business risk
areas covering operational and financial risks.
HUMAN RESOURCES / INDUSTRIAL RELATIONS
Tata Motor’s Group considers its human capital as a critical factor
to its success. Under the aegis of Tata Sons and the Tata Sons
promoted entities, the Company has drawn up a comprehensive
human resource strategy (the “Human Resource” strategy) which
addresses key aspects of human resource development such as:
Code of conduct and fair business practices.
A fair and objective performance management system
linked to the performance of the businesses which identifies
and differentiates high performers while offering separation
avenues for non-performers.
Creation of a common pool of talented managers across Tata
Sons and the Tata Sons promoted entities with a view to
increasing their mobility through inter-Company job rotation.
Evolution of performance based compensation packages to
attract and retain talent within Tata Sons and the Tata Sons
promoted entities.
Development of comprehensive training programs to impart
and continuously upgrade the industry/function specific skills.
In line with the Human Resource strategy, the Company, in turn,
has implemented various initiatives in order to build organizational
capability that will enable the Company to sustain competitiveness
in the global market place. The focus is to attract talent, retain the
better and advance the best. Some of the initiatives to meet this
objective include:
Extensive process mapping exercise to benchmark and align
the human resource processes with global best practices.
Introduction of a globally benchmarked employee
engagement programme.
Succession planning through identification of second level of
managers for all units, locations, functions.
Implementation of a “Fast Track Selection Scheme”, which is a
system for identifying potential talent in the areas of general,
commercial and operations management and offering
them opportunities for growth within the organization.
