2.15 Reporting on joint ventures, partially owned subsidiaries
This report does not include these entities in its scope. The information regarding joint ventures and partially own subsidiaries shall be progressively included in the future reports.
2.16 Nature and effect of any re-statements of information
There is no restatement of any information provided earlier in this report. The report scope however has undergone change e.g. Tarapore Wire Division is included and Agrico Plant at Jamshedpur has been closed down during the reporting period.
2.17 Our decisions not to apply GRI principles
Generally reported as per GRI guidelines 2002. Exceptions have been delineated at appropriate locations.
2.18 Criteria/Definitions/Guidelines Used
GHG protocol guidelines are used for GHG emission reporting. Financial & Economic data are reported as per the guidelines provided in Company Law of India and Indian GAAP Standards.
Monitoring, measurement and calibration is carried out as per relevant Indian standards. Documentation & communication are done as per the requirement of ISO-9001 & ISO-14001, OHSAS-18001 & SA-8000
The norms and procedures prescribed for workplace safety & environment by Ministry of Environment, Ministry of Labour & Welfare (Factories Act) are followed in conducting the business at Tata Steel. These Acts include Water Act, Air Act, Environment Protection Act, Factories Act, Explosive Act, Petroleum Act, Electricity Rules, Workmen Compensation Act, Public Liability Insurance Act, Hazardous Waste Management & Handling Rules, Hazardous Chemicals Manufacturing & Handling Rules.
Details of these Standards, Acts & Rules where relevant are furnished in the glossary (Annexure-V).
2.19 Significant changes in the measurement methods
The measurement and calculation methodology for NOx, SOx & SPM data reported at Environment has been changed as compared to previous years. The changed methodology has been included at Annexure-VI.
2.20 Policies and internal practices to enhance and provide assurance
Tata Steel has adopted the Tata Business Excellence Model (TBEM) based on Malcolm Baldrige criteria. Sustainability Performance of Tata Steel is embedded in this model as described at Section-3. TBEM requires besides institution of systems and processes also performance monitoring and reporting as per the criteria delineated in the model. The approach and extent of deployment, maturity of the system deployed and the consequent business results are required to be assessed by external assessors. Tata Steel submits an application for TBEM Excellence Award every year to TQMS Pune. The application is assessed by a group of experts appointed by TQMS. The tabletop assessment of the application is followed by (a) site visit and (b) discussions with concerned Sr. Executives and shopfloor employees about the issues covered in the application. Based on the scrutiny of application and the finding of site visit, external assessors prepare a scorecard for different TBEM criteria.
Tata Steels financial performance and risk management assurance is provided by an in-house internal audit function. The internal audit function has Chartered Accounts and professionals headed by Chief (Internal Audit) who reports to the Managing Director and the Audit Committee of the Board.
The quarterly, half yearly and annual books of account are audited by internal and statutory (external) auditors. The external auditors appointed by the Audit Committee and approved by the shareholder are M/s. A F Ferguson & Co. and S B Billimoria & Co. M/s. A F Ferguson & Co. are reputed Chartered Accountants of global repute. The scope of external audit includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The auditing has been done in accordance with the auditing standards accepted in India.
The mandate of internal audit department includes;
The economic performance data is logged in a secure SAP system. The external financial auditors verify the SAP system security.
Environment Health & Safety In addition to the TBEM assessment process, since the divisions included in the scope of the report are ISO-14001 certified, there are half yearly internal audits carried out by Lead Auditors who have requisite audit experience. Every year, an external surveillance audit is conducted by IRQS for ISO-14001 EMS certificate. In addition, weekly EMS visits are carried out by a group of officers and union representatives to select departments to assess the status of EMS implementation at the shop floor. The review of the status of EMS is carried out once a month by Head of the Department, bi-monthly by the Divisional Head, once in three months by Management Representative and once in four months by the Chairman of Management Review Committee who is either a person of Dy. Managing Director level or the Unit Head at the locations outside Jamshedpur.
Environmental performance data is reported on the intranet site. The monitoring reports are sent electronically to the concerned Heads of the Department. The daily, weekly and monthly reports are submitted as a part of MIS electronically. The calculations for emission loads and GHG emissions are also carried out electronically with the help of software developed internally as per the guidelines available from IISI and GHG Protocol.
Society - Social audits are conducted once in every 10 years by a Bench of External Auditors comprising - eminent personalities from judiciary, social organizations and financial institutions appointed by Tata Steels Board of Directors. Last one was done in 2003. The audit report is awaited.
Tubes Division & Sukinda Chromite Mines of the organization have been certified to OHSAS-18001 standard and for Main Steel Works, Pre-certification Audit have been completed for OHSAS-18001 and SA-8000 during the year.
2.21 Policy and current on independent assurance
Tata Steel shall continue to get an independent assurance on CSR. Accordingly, Tata Steel has appointed PwC as independent assurance providers. Their independent assurance report has been included at the beginning of this report.
2.22 For additional information
Additional information on Economic, Environmental &
Social performance of the organization can be made available on request from the contact
persons indicated under 2.10 above. This report is also available on Tata Steel Internet
Website (www.tatasteelindia.com) & Tata Steel Intranet.