By Rusen Kumar
MUMBAI: Tata Motors Limited (TML), one of India’s largest automobile company, facing challenges in financial and operation performances, has spent Rs 25.94 crores towards various schemes of CSR as prescribed under Section 135 of the Act., Financial Report for the Year 2016-17 revealed.
“The prescribed CSR expenditure required to be spend in Fiscal 2017 as per the Act is Nil, in view of net profit of the Company being negative under Section 198 of the Act.”, report added.
Tata Motors reported loss before and after tax for the year 2016-17 ended March 31, 2017 was Rs.2,421 crores and Rs.2,480 crores, respectively, against the Rs.67 crores and Rs.62 crores, respectively, for the last year.
“Average Net Profit of the Company for last three financial years: Loss of Rs. 2,337 crores”. Report said.
“Building sustainable relationships with all our stakeholders and creating shared value are key to our corporate philosophy.”, Tata Motors said.
“The automotive industry is going through multiple changes from different dimensions – changing regulatory and environmental standards as well as technological disruptions and the industry is also witnessing increased competition.”, N Chandrasekaran, Chairman of the Board at Tata said in his message to the stakeholders.
The guiding philosophy for our CSR initiatives is ‘More from Less for More People’. It implies achieving greater impacts, outcomes and outputs with strategic CSR investments, and the efficient deployment of financial and human resources.
“Our CSR initiatives envisage meeting the existing and emerging needs of the community through the development of customised programmes and adopt an entire life-cycle approach. Through our Affirmative Action programme, we reach out to the historically marginalised groups and 40% ofour CSR budget is earmarked for programmes towards their upliftment. This is done through education, employability, employment and entrepreneurship.” Report added.
TML has CSR projects in 4 areas:
- Arogya (Health)
- Vidyadhanam (Education)
- Kaushalya (Employability)
- Vasundhara (Environment)
Composition of CSR Committee:
The CSR Committee of the Board of Tata Motors comprises (i) Dr Raghunath A. Mashelkar, Non-Executive, Independent Director [Chairman of the Committee]; (ii) Guenter Butschek, CEO & Managing Director, (iii) Satish B. Borwankar, Executive Director (Quality) and (iv) Falguni S. Nayar, Non-Executive, Independent Director.
The CSR Committee of the Company’s Board states that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company. The Company had engaged M/s KPMG India (Registered) for assurance on CSR spend by the Company under Section 135 of the Act, Schedule VII.
(The report is based on Financial Report, 2016-17 of Tata Motors Limited)