Business Responsibility Report | Tata Motors Annual Report 2015-16

[Pursuant to Regulation 34(2)(f) of the SEBI Listing Regulations]

INTRODUCTION

With a legacy of over six decades, Tata Motors Limited continues to be India's largest automobile company with consolidated revenues of Rs. 2,75,561 crores in Fiscal 2016. Sustainability and the spirit of 'giving back to society' is a core philosophy and good corporate citizenship is strongly embedded in our DNA. We are the first Indian company in engineering sector to be listed on the New York Stock Exchange. Regarded as leaders in commercial vehicles in each segment, and among top three in passenger vehicles in India, we are also the world's fourth largest truck and bus manufacturer. We are present across all segments of commercial vehicles and passenger vehicles with over 6,600 dealerships, sales, services and spare parts network touch points globally.

The Business Responsibility disclosures in this Report illustrate our efforts towards creating enduring value for all stakeholders in a responsible manner. This Report is aligned with National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG-SEE) released by Ministry of Corporate Affairs, and is in accordance with Regulation 34(2)(f) of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015. This Report provides an overview of the activities carried out by Tata Motors under each of the nine principles as outlined in NVG.

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

Corporate Identity Number (CIN) of the Company: L28920MH1945PLC004520

Name of the Company: Tata Motors Limited

Registered address: Bombay House, 24, Homi Mody Street, Mumbai - 400001

Website: www.tatamotors.com

E-mail id: inv_rel@tatamotors.com

Financial Year reported: 2015 – 16

Sector(s) that the Company is engaged in (industrial activity code-wise)
List three key products/services that the Company manufactures/provides (as in balance sheet)
1. Passenger Cars
2. Commercial Vehicles
3. Vehicles sales and service
  (Please refer to our website http://www.tatamotors.com for complete list of our products)
Total number of locations where business activity is undertaken by the Company
1. Number of International Locations (Provide details of major 5): Through subsidiaries and associate companies, Tata Motors operates in over 175 markets and has over 6600 sales and service touch points. The Company has manufacturing facilities in the UK, South Korea, Thailand, South Africa and Indonesia.
2. Number of National Locations – Tata Motors manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).
Markets served by the Company - Local/State/National/International
Tata Motors vehicles and services cater to entire Indian market. The company's commercial and passenger vehicles are already being marketed in several countries in North America, Central and South America, Africa, Europe, Asia and Oceania.

Please refer "Presence across market" section of Company's Annual Report FY 2015-2016 for complete list of markets served.

SECTION B: FINANCIAL DETAILS OF THE COMPANY

Paid up Capital (INR): Rs. 679.13 Crores
Total Turnover (INR): Rs. 46,646.67 Crores (This is standalone figure)
Total profit after taxes (INR):Profit of Rs. 234.23 crores (This is standalone figure)
Total Spending on Corporate Social Responsibilit (CSR) as percentage of profit after tax (%): Total expenditure reported is Rs. 20.57 Crores. (% of profits: Not Applicable in view of losses for the FY ended March 31, 2015)
List of activities in which expenditure in 4 above has been incurred: -
The Company has been regularly conducting a community engagement strategy which revolves around four focus themes;
1. Arogya (Health): The focus is to work on Addressing Child Malnutrition, Health Awareness for Females. This initiative provides Preventive & Curative Health services to community. In Fiscal 2016, 178200 members benefited from our health initiatives.
2. Vidyadhanam (Education): This initiative aims to improve the quality of education in schools by supporting for infrastructure, skills development, training and institutionalized need based scholarships. Tata Samarth Scholarship program run jointly with Tata Communication has benefited 51000 aspiring engineers from economically weaker sections of society.
3. Kaushalya (Employability): This program has been developed considering enhanced skill development among youth. It includes infusing marketable skills in school dropout youth in auto sector, non-auto trades, agriculture and allied activities. It also, strengthens the Industrial Training institutes by offering domain expertise through knowledge partnership.
  
  Through our Affirmative Action program,
  - 79% of youth trained in automotive traders are from Schedule Caste/Schedule Tribes communities.
  - Business has been extended to SC/ST vendors as well, associating 10 new vendors in their supply chain and extending business of Rs. 9.79 Crores to them.

SECTION C: OTHER DETAILS

Does the Company have any Subsidiary Company/Companies?

Tata Motors has seventy-seven direct and indirect subsidiaries in India and abroad as on March 31, 2016.
Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s)
Tata Motors positively influences and encourages its subsidiaries to adopt Business Responsibility (BR) initiatives. All the Company's subsidiaries are guided by Tata Code of Conduct (TCoC) to conduct their business in an ethical, transparent and accountable manner. It encompasses suppliers, customers and other stakeholders. It also addresses key BR issues like Quality and Customer value, Corruption and Bribery, Health & Safety, Environment, Human Rights and Employee well-being. Key subsidiaries like Jaguar Land Rover Automotive Plc. releases the sustainability report every year. The scope of this report is defined each year. For the sustainability report of Fiscal 2016, we have extended our reporting boundary to include the performance of three subsidiary companies and one Joint Venture (JV) operating out of our premises.
Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]
Suppliers, distributors are critical to our operations and supply chain sustainability issues can impact our operations. We engage with suppliers through various channels for operational issues and also focus on emerging and futuristic technologies through Technology Day events. Project Sankalp – a supplier transformation initiative is underway in which cross functional teams of domain experts work with suppliers at their plant location on improving quality, productivity, SHE and profitability. The suppliers and vendors are provided awareness on environmental and social issues. The vendor meets are used as a platform to raise awareness on health & safety, environmental and community initiatives of the Company. The vendors situated in the vendor parks at Pantnagar and Sanand manufacturing locations actively participate in the site health & safety, environmental and CSR programmes. Special emphasis is laid on skill development and up-gradation of the dealer and channel partner resources. Currently less than 30% of value chain entities participate in the Company's BR initiatives and there is a constant effort by the Company to extend these initiatives to larger value chain base.

SECTION D: BR INFORMATION

Details of Director/Directors responsible for BR

Details of the Director/Directors responsible for implementation of the BR policy/policies.

Details of Director/Directors responsible for BR

Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are as follows:
P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
P3 Businesses should promote the well-being of all employees.
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect, protect, and make efforts to restore the environment.
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner.
P8 Businesses should support inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.

All the policies are signed by the Managing Director or an Executive Director. All the policies in Tata Motors are covered from its guiding principals and core value. These policies are mapped to each principal hereunder: