Tata Motors Report

TATA M OTORS LIMITED
CORPORATE SUSTAINABILITY REPORT
(2007-08)
Tata Motors Ltd. Corporate Sustainability Report 2007-08
GRI CONTENT INDEX
Section Aspect Indicator Page #
1. Profile Statement f rom MD 1.1 8-9
Description of key issues, risks and opportunities 1.2 21-23
2. Organisational Name of the Organisation 2.1 13

Profile
Primary brands, products and serv ices 2.2 13
Operational Structure 2.3 13
Location of HQ 2.4 13
Countries with major operations 2.5 14
Nature of ownership and legal f orm 2.6 14
Markets served 2.7 14
Scale of the Organisation 2.8 14
Signif icant changes in size, structure or ownership 2.9 15
Awards Receiv ed 2.10 15-18
3. Report Reporting Period 3.1 20

Parametres
Recent previous Report 3.2 20
Reporting cycle 3.3 20
Contact persons 3.4 20
Report content 3.5 2-6
Boundary of the report 3.6 23
Limitations of the Report 3.7 23
Basis f or reporting on subsidiaries and associate 3.8 23

companies
Data Measurement Techniques 3.9 23
Restatements 3.10 23
Signif icant changes from previous reporting periods 3.11 23
GRI Content Index 3.12 2-6
Policy and current practices for seeking external 3.13 23

assurance
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4. Governance, Governance structure and Board composition 4.1 25-26

Commitments and
Engagement Non-executive status of the chair 4.2 25-26
Independent and/or non-executiv e members 4.3 25-26
Mechanism for shareholders and employ ees to provide 4.4 27-28

recommendations to the highest body
Linkage between compensation and perf ormance of the 4.5 28-29

Board
Process to av oid conf licts of interest 4.6 29
Process to determine expertise of Board members 4.7 29
Statements and application of mission, v alues and code 4.8 10-11 & 29-30
of conduct
Ov erseeing of risks and opportunities by gov ernance 4.9 27

bodies
Ev aluating the perf ormance of highest gov erning body 4.10 30
Approach to risk management in operational planning 4.11 30-31
Charters, initiativ es and principles that the organization 4.12 32

subscribes to
Membership in associations and national/international 4.13 32

organizations
Stakeholder engagement 4.14 32
Identif ication and selection of stakeholders 4.15 21
Approach to stakeholder engagement 4.16 32
5, Economic Economic perf ormance EC1 36-40

Performance
Indicators Signif icant financial assistance received f rom the EC4 40
government
Range of ratios of standard entry lev el wage compared EC5 41

to local minimum wage at signif icant locations of
operation
Policy , practices and proportion of spending on locally- EC6 41

based suppliers
Procedure f or local hiring EC7 41
Indirect economic impacts EC9 41-42
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6. Environmental Materials used EN1 45

Performance
Indicators Recy cled input materials EN2 45-46
Direct energy consumption EN3 46
Indirect Energy Consumption EN4 46
Energy sav ed EN5 46-47
Initiativ es to prov ide energy -ef f icient products and EN6 47-48
services
Initiativ es to reduce indirect energy consumptions EN7 47-48
Total water use EN8 48
Water sources significantly af f ected EN9 48
Total recy cling and reuse of water EN10 48
Location and size of land owned, leased or managed in EN11 48

biodiv ersity rich habitats
Impacts of activ ities, products and serv ices on EN12 48

biodiv ersity
Habitats protected or restored EN13 49
Strategies, current actions and plans for managing EN14 49

impacts on bio-div ersity
Number of IUCN red list species and national EN15 49

conserv ation list species with habitats in areas affected
by operations
Total direct Greenhouse Gas emissions EN16 50
Total indirect Greenhouse Gas emissions EN17 50
Initiativ es to reduce Greenhouse Gas emissions EN18 50
Emissions of ozone-depleting substances EN19 51
NO, SO and other signif icant air emissions EN20 51
Total water discharge EN21 52
Total waste by ty pe and disposal method EN22 52-53
Total number and v olume of signif icant spills EN23 53
Weight of waste deemed hazardous EN24 53
Initiativ es to mitigate env ironmental impacts of products EN26 54-55

and serv ices
Packaging materials that are reclaimed EN27 55
Fines and sanctions f or non-compliance with EN28 56

environmental laws
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Environmental impacts of transporting organisation’s EN29 56

products
Environmental protection expenditure and inv estments EN30 56
6. Social Total workf orce LA1 59

Performance
Indicators Total rate of employ ee turnover LA2 59
Percentage of employ ees covered by collective LA3 59-60

bargaining
Percentage of employ ees covered by collective LA4 60

bargaining agreement
Minimum notice period(s) regarding operational
changes, including whether it is specified in collective LA5 60
agreements
Workf orce represented in joint management-worker LA6 61

health and saf ety committees
Rates of injury and work-related f atalities LA7 61
Education, training and risk control programmes to LA8 61-63

assist workforce, their f amilies and community
members regarding serious diseases
Health and saf ety topics covered in f ormal agreements LA9 63

with trade unions
Av erage hours of training per y ear per employ ee by LA10 63

employ ee category
LA11 63-64
Programmes f or skill management and managing
career endings
Employ ees receiv ing regular perf ormance and career LA12 63-64
development rev iews
Breakdown of employees by category and gender LA13 65
Ratio of basic salary of men to women by employ ee LA14 65

category
Human rights screening f or suppliers and contractors HR2 66
Employ ee training on policies and procedures regarding HR3 66-67

aspects of human rights
Total number of incidents of discrimination HR4 67
Managing risk to f reedom of association HR5 67-68
Ef f orts to eliminate child labour HR6 68
Ef f orts to eliminate forced and compulsory labour HR7 68-69
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Incidents of v iolations concerning rights of indigenous HR9 69

people
Programmes and practices to assess and manage SO1 70

impacts on communities
Business units analysed f or risks related to corruption SO2 70-71
Employ ees trained in organisation’s anti-corruption SO3 71

policies and procedures
Contributions to political parties SO6 71
Legal actions f or anti-competitiv e, anti-trust and SO7 71

monopoly practices
Customer health and saf ety PR1 72
Total number of incidents of non-compliance with PR2 72

regulations concerning health and saf ety impacts of
products and serv ices
Product and serv ice labeling PR3& 4 72-73
Adherence to Regulations regarding Marketing PR6 73

Communications
Complaints regarding breaches of consumer priv acy PR8 73
GRI Application Level

A
G3 Profile S
1.1 to 4.15 included in
Disclosures E
the Report
L
F
D
G3 Management Beginning of each
E
Approach Disclosures section C
L
A
R
E
Reported on 67 D
G3 Performance performance
Indicators indicators
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Strategy and Analysis
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Ladies and Gentlemen,
I am delighted to make public T ata Motor’s Sustainability Report which provides a balanced and
reasonable presentation of the Company’s economic, social and environmental performance.
T he year 2007-08 was a historic year for T ata Motors, marked with two significant events- the
unveiling of T ata Nano - the world’s least expensive car, and the signing of the definitive agreement
with Ford Motor Co. for the purchase of Jaguar and Land Rover, which has since been completed on
June 2, 2008. Besides this, the Company achieved its highest ever sales of 585,649 vehicles to
remain India’s largest automobile company by turnover.
While the Company achieved new heights in the worldwide automobile industry, the overall economic
environment threw many challenges during the year. T he moderation in economic growth in the
Indian economy impacted demand to some extent. T he Company’s margins were under pressure due
to rising interest rates, constraints in availability of vehicle financing, and an unprecedented increase
in raw material prices.
Notwithstanding all these challenges, the Company continued to strengthen its social development,
environmental management and bio-diversity conservation programmes, in line with the Tata Group’s
commitment of improving the quality of life of the community it serves. T he Company’s heritage of
returning to the society what it earns evokes trust among the consumers and other stakeholders. Tata
Motors has been continuously launching environment friendly products in the markets by using the
latest technologies available. While a number of models are already available with the LPG and CNG
technologies, the Company is also actively pursuing electric vehicles programmes. Further, the
Company is committed to meet all emission norms in its products that are enforced from time to time
in India and the international markets where it operates. This is evident from the fact that the small
car Nano, which is expected to be launched in the near future, has also been designed to meet BS3
emission standards despite the stiff cost targets of the project.
All the manufacturing facilities of T ata Motors are certified to meet ISO: 14001 Environment
Management System (EMS) standards. T he manufacturing plants have reduced power and water
consumption per unit of vehicle by pursuing various energy and water conservation initiatives. Rain
water harvesting continues to be a focussed activity at the manufacturing plants and the Company
continues to successfully run its Rain Water Harvesting project in Jamshedpur manufacturing unit.
T he manufacturing unit at Pune, Maharashtra has consumed around 50 million unitsof wind energy
annually since 2001 as part of the Clean Development Mechanism of the United Nations.
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T he Company has well-defined thrust areas for its community development initiatives which are
linked to national and international goals and standards, including the Human RightsCharter, Bharat
Nirman Programme and the Millennium Development Goals. Over a thousand youth from rural areas
adopted by the Company were trained in various technical and vocational trades. 350 of these youth
were trained at the Singur site in West Bengal, where the small car project wassupposed to come up.
As part of the women empowerment programme, over a thousand women were trained in sewing,
manufacturing food products and beautician courses.
T he Company’s contribution in the national development, environmental conservation and societal

value creation has been acknowledged at various forums. The Jamshedpur plant was awarded the
National Energy Management Award by CII and declared the “Energy Efficient Unit 2007”. It also
received a trophy and award for Outstanding Performance by CII- ER Energy Conservation (ENCON)
Award 2007- 08 Contest. T ata Motors is also the only Indian automobile company that hasearned the
distinction of “Notable COP” for the third consecutive year in 2006-07.
T ata Motors is confident that the wealth generated as a result of development would not only power
the business but would also be ploughed back in the conservation and enrichment of environment
and for greater prosperity of the community.
Your’s truly,
Ravi Kant
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T he vision, mission and core values for the two business units of Tata Motors, Passenger Car and
Commercial Vehicle are given below:
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Organisational Profile
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Name of the Organisation
T ata Motors Limited, the leading automotive vehicle manufacturing company in India in termsof
revenues and one of the largest private sector companies in India in terms of revenues and assets.
T he Company is the largest company in terms of revenues in the Tata Group, which is one of the
leading business groups in India.
Primary brands, products and serv ices
T he wide array of commercial vehicles from T ata Motors is designed to take care of almost every
business needs, big and small. From rigid trucks to tractor trailers, from light commercial vehiclesto
specialised defence carriers, from luxury buses to compact city carriers, we have it all.
Commercial Vehicle Business Unit (CVBU) manufactures and markets commercial vehiclesranging
from 1.5 tonnes Gross Vehicle Weight (GVW) pick-ups to buses to 49 tonnes GVW heavy trucks. The
specifications of our trucks have become brand names in the market place such as 407, 709, 207DI,
2516, 4021, EX series, etc.
Passenger Cars Business Unit (PCBU) manufactures and markets cars (Indica and Indigo brand)
along with marketing of utility Vehicles like Sumo and Safari.
T ata Motors through its Engineering Research Centre provides design and development capabilities.
Both the business units of Tata Motors reach customer via large network of dealers, T ata Authorised
Service Stations, T ata Authorised Service Centres and spare parts distributors.
Operational structure of the organization, including main div isions, operating companies,
subsidiaries, and joint v entures
T ata Motors is a fully integrated automobile company. T oday, it is the only automobile manufacturer
to offer the entire range of commercial vehicles for transportation of goods and passengersand also
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passenger cars in India through its two business unit viz. Commercial Vehicle Business Unit (CVBU)
and Passenger Car Business Unit (PCBU).
Over the years, T ata Motors has made substantial investments in building subsidiary and associate
companies that add value, facilitate and support its diverse range of business activities: T elco
Construction Equipment Co. Ltd. (Telcon), T ata T echnologies Ltd. (T T L), HV Axles Ltd. (HVAL), HV
T ransmissions Ltd. (HVT L), T AL Manufacturing Solutions Ltd. (T AL), T ata Marcopolo MotorsLimited
(T MML), T ata Motors (SA) Proprietary Limited (T MSA), T ata Motors (T hailand) Limited (TMTL), Tata
Motors European T echnical Centre (T MET C), T ata Motors Finance Limited (T MFL), T ata Motors
Insurance Broking and Advisory Services Limited (TMIBASL), Sheba Properties Ltd., T ata Daewoo
Commercial Vehicle Company Ltd (T DCV), T ML Distribution Company (T DCL), Automobile
Corporation of Goa Limited (ACGL), Fiat India Automobiles Private Limited (FIAPL), Tata Cummins
Ltd. (T CL), T ata AutoComp Systems Ltd. (T ACO), T ata Precision Industries Pte Ltd., Hispano
Carrocera S.A. and Nita Company Ltd.,
Location of organization’s headquarters
Tata Motors Limited,

Bombay House,
24 Homi Modi Street, Mumbai 400 001, India
Phone – 91 22 56658282
Countries where the organization operates, and

Names of countries w ith maj or operations
We have subsidiary/associate companies outside of India as under:

• T ata Daewoo Commercial Vehicle Co. Ltd., Korea
• Nita Company Limited, Bangladesh
• T ata Precision Industries Pte. Ltd., Singapore
• T ata T echnologies Limited, USA/UK
• T ata Motors European T echnical Centre, UK
• T ata Motors (SA) Proprietary Limited, South Africa
• T ata Motors (T hailand) Limited, Thailand
• Hispano Carrocera S.A., Spain
In addition to the above, we also have a liaison office in Dubai which caters to promoting our
international business for the Middle East and Africa region.
Nature of ownership and legal form
T ata Motors Limited is a public limited company listed on 2 stock exchanges (Bombay Stock
Exchange and National Stock Exchange of India Limited) in India. Company’s Depositary Receipt
Programme is listed on the New York Stock Exchange.
Markets serv ed
T ata Motors has major operations in India with sales and marketing operations in more than 70
countries. T he scope of this report though, includes only Indian operations.
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More details are available at T ata Motors website http://www.tatamotors.com

Scale of the reporting organization:
Key elements depicting the scale of the organisation in 2007-08 is given in the table below:
Number of permanent employees as on March 31, 2008 23,230
Rs. 330.94 billion

Net sales f or FY 2007-08
585,649
Volumes of products sold
Rs. 150.96 billion

Total net assets as on March 31 ‘08
Rs. 62.81 billion

Gross debt
Rs. 3.86 billion
Share Capital
Tata Sons Ltd. with 21.92% to paid-up capital

Largest Shareholder
Shareholding
T he Company is a widely held, listed company (including on the New York Stock Exchange), with
approximately 292,090 shareholders. T he Company’s international offerings of Foreign Currency
Convertible Bonds are listed on the Luxembourg/Singapore Stock Exchanges. T he shareholding
pattern as on March 31, 2008 for the Company is given below:
Category No. of shares % of holding

Promoters 128819405 33.42
NRIs, Foreign Companies & ADRs 79068379 20.51
Gov ernment Companies, Financial Institutions, Banks 57079243 14.81
and Insurance Companies
Mutual Funds & Unit Trust of India 10160944 2.63
Foreign Institutional Inv estors 65388543 16.96
Others 44987440 11.67
Total 385503954 100
Significant changes during the reporting period regarding size, structure, or ow nership
Tata Motors acquired Land Rov er and Jaguar, part of Premier Automotiv e Group of Ford
Motor Company for US$ 2.3billion on cash free, debt free basis. The tw o enterprises w ere
formally transferred on June 2, 2008 at a signing ceremony at the Jaguar and Land Rov er
headquarters in West Midlands. To fund this acquisition, Tata Motors is raising Rs. 72000
millions on a rights basis and US $500/600 million through an international offering of equity
and/or cost effective quasi equity instruments. Jaguar and Land Rov er achieved rev enues of
US$ 19.09 billion for the financial year 2007-08.
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Aw ards receiv ed in the reporting period
Business Related:
Auto Monitor Commercial Vehicle Manufacturer of the Year

• T ata Motors has received the Auto Monitor Commercial Vehicle Manufacturer of the Year
award for the year 2007. T he Auto Monitor awards are given to honor the best in the Indian
automotive industry for their contribution to the sector in the calendar year 2007. The seven-
member jury that comprised of senior people from the industry and Auto Monitor editorial
team adjudicated the nominations across 10 categories and decided on the winners.
Tata Motors among India’s Most Trusted Brand in cars

• T ata Motors has been chosen as one of India’s Most T rusted Brand in cars for the second
consecutive year, in a Readers Digest/AC Neilsen consumer survey. T ata Motors received
the Readers Digest T rusted Brands Gold Award based on feedback from over 7000
respondents.
Tata Motors receiv es the Global Game Changer Aw ard

A special award at the Innovation for India Aw ards 2008
• T ata Motors has received the Global Game Changer Award at the 'Innovation for India
Awards 2008', organised by the Marico Innovation Foundation. T his special award salutesthe
company's passion and zeal behind the creation of the Nano. T he awards recognise great
innovations in India that have a great idea coupled with a unique insight, and have positively
impacted lives. T his year, the foundation received 206 entries. Mr Ravi Kant, Managing
Director, accepted the award from Mr Harsh Mariwala, Chairman and Managing Director,
Marico and Dr Mashelkar, Chairman of the Marico Innovation Foundation, on March 19,
2008.
Tata Motors receives Uptime Champion Aw ard 2007

• T ata Motors has received the Uptime Champion Award 2007 in the 'General Industry'
category. T he award by Emerson Network Power and Express Computer is given to an
organisation that is working to improve overall reliability of its IT (Information T echnology)
infrastructure and has implemented a solution that guarantees optimal infrastructure uptime
24x7. Mr C P Lohiya, Dy. General Manager (Information Technology), Tata Motors, accepted
the award on behalf of the company.
Tata Motors bags the “Best Company Aw ard”

th nd
• T ata Motors, Pune was declared as the “Best Company” at 20 National Work Skills& 2 CII
World Skills Competitions conducted jointly by CII and the Directorate General of
Employment and T raining (DGET ), Ministry of Labour, Govt. of India. T ata Motors secured
fourteen rankings in seven trades
Passenger Car Business Unit bags Handa Golden Key Aw ard

• T he Passenger Car Business Unit of T ata Motors bagged the Handa Golden Key Award 2007
for the 'Best Value Engineering Organisation'. T he award is conferred by the Indian National
Value Engineering Society (INVEST ).
TRAKIT bags silv er aw ard for 'Excellence in Design'

• T RAKIT won the silver award for 'Excellence in Design' in the 'Electronics' category at the
20th International Appliance Design Excellence in Design Awards 2007, USA. T RAKIT isa
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vehicle tracking telematic device developed by T ata Motors for Indian truck driversand fleet
owners.
Process Related:
Tata Motors bags National Aw ard for Excellence in Cost Management

• T ata Motors has won the National Award for Excellence in Cost Management for the year
2006, conferred by the Institute of Cost and Works Accountants of India (ICWAI). Tata Motors
bagged the first prize in the ''Manufacturing'' category in the private sector.
'NDTV Profit' Business Leadership Aw ard for Tata Motors

• T ata Motors has received the coveted ''NDT V Profit'' Business Leadership Award in the
category of four-wheelers for the year 2007. Mr. Rajiv Dube, President -Passenger Car
Business Unit, received the award on behalf of the company.
Tata Motors - CVBU bags 'Highest Delta Aw ard' for Business Excellence
• T ata Motors CVBU has crossed the score band of 551-650 in the Tata Business Excellence
Model 2007 assessment and has moved into the ''Industry Leader'' (651-750 score) band.
• CVBU has won the ''Highest Delta Award'' in the 600+ point category. T his award isgiven to
an organisation that displays the highest jump in its scores from the previous year.
Tata Motors aw arded SAP Customer Excellence Aw ard

• T ata Motors has been awarded the SAP ACE Customer Excellence Award for the year 2007
in the "Best Project in the Automotive Vertical (Large Enterprise)" category. T he award was
conferred on T ata Motors for the exceptional results in business transformation using the
SAP-SRM (Supplier Relationship Management) and SAP Warehouse Management solutions.
Aggregates Business of CVBU bags Best Supplier Aw ard from ECEL

• T he Aggregates Business of T ata Motors' Commercial Vehicle Business Unit has won
the 'Best Supplier Award' from Escorts Construction Equipment Ltd (ECEL). T his award has
been presented to Tata Motors in recognition for supporting ECEL's business growth plans
through the supply of high tech aggregates including engines, gear boxesand axles. Mr PVS
Prasad, Head- Aggregates Business, T ata Motors accepted the award on behalf of the
Company
Golden Peacock Award for Occupational Health & Safety

• T ata Motors Pune - CVBU bagged the Golden Peacock Award for Occupational Health &
Safety. T he award was received by Mr. A. K. Ghose, DGM (HR, CVBU - Pune) and Mr. V.
Gandhi, DGM (Auto, CVBU - Pune)
Tata Motors w ins Best Paper Aw ard at the Asian Netw ork for Quality Congress 2007
• T ata Motors has won the 'Best Paper Award' among 120 papers presented at the Asian
Network for Quality (ANQ) Congress 2007. Mr. A. S. Parasharami, DGM (B E S - Pune)
received the award for his paper on the 'Application of 3P (Production Preparation Process)
concept at Tata Motors'.
Tata Motors Commercial Vehicle Business Unit bagged the First prize in “Excellence in
Suggestion Scheme Contest 2007”
• T ata Motors CVBU Pune has bagged the First prize in “Excellence in SuggestionScheme
Contest 2007” (in group V) from the Indian National Suggestion Schemes' Association
(INSSAN). The award is given to organisations who have achieved the highest levels of
employee involvement and excellence through Suggestion Scheme.
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Commercial Vehicle Business Unit w ins Raj iv Gandhi National Quality Aw ard for 2007
T ata Motors, CVBU Pune has won the prestigious Rajiv Gandhi National Quality Award for
2007. CVBU Pune received this award in the large scale manufacturing organisation
category. T he Rajiv Gandhi National Quality Award is instituted by the Bureau of Indian
Standards (BIS), New Delhi and has criteria similar to prestigious international quality awards
like the Malcolm Baldrige National Quality Award USA, the European Quality Award and the
Deming Prize, Japan.
Recognitions:
Sumo, Indica among 'Most Trusted Brands' of India

• T he Sumo and the Indica have once again been adjudged among the ''Most Trusted Brands''
of India. T he annual ''Most T rusted Brands'' survey is conducted among consumers across
the country by ''Brand Equity'', the marketing and advertising supplement of ''The Economic
T imes''. T he Sumo is ranked No.3 (up from No.5 last year), while the Indica retains itsNo.7
position - both above all other car brands
Tata Motors India's 5th most v aluable brand

• T ata Motors has been ranked as the 5th most valuable ''company brand'' - the face of the
business for all stakeholders - in India. T he study was conducted by T he Economic T imes
and Brand Finance. T he study indicated that T ata Motors is also among the 14 companiesin
India in terms of its ability to sustain earnings into the future with the least risk.
Tata Motors among most reputed Indian firms

• T ata Motors has emerged as one of the most reputed corporates in India according to the
Corporate Reputation Index by global consultancy firm, T NS. T ata Motors sharesthe second
spot with T ata Steel and Hindustan Lever
Tata Motors among 10 Most Respected Companies in India

• T ata Motors is among the top 10 Most Respected Companies in India. Ranked at # 8, Tata
Motors is the only automobile company in the top 10. T he findings are of the BusinessWorld
'Most Respected Companies Survey - 2007'.
Tata Motors among Asia's 50 best performing companies

• Business Week has listed Tata Motors among Asia's 50 best performing companies. T he
other Indian companies, among the 50 best, are T CS, Tata Steel, HDFC, Hero Honda
Motors, Siemens India, Sterlite Industries and Cipla. Business Week says that these
companies have been powered by robust revenue growth, profitability and shareholder
returns.
Indiv idual Aw ards
Mr Kw ang-Ok Chae, President - Tata Daewoo, honoured w ith the 'CEO of Korea' award
• Mr Kwang-Ok Chae, President - T ata Daewoo, was conferred with the ''CEO - Korea Award
2007'', by the Economic Review magazine of South Korea. T he award is given to an
outstanding South Korean CEO, who has contributed to the development of the national
economy, and generated a sense of achievement among citizens through exemplary
leadership and business innovation.
Mr. Viv ek Joshi bags patent for energy sav ing dev ice
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• Mr. Vivek Joshi from the Uttarakhand team has been awarded a patent (Patent No. 203430)
for an energy saving device for high pressure gas discharge lamps. T he patent isfor a period
of twenty years. T his device can save 22% electrical energy consumption and can be used in
any gas discharge lamp at home, in shops, malls, hotels offices etc.
Report Parameters
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Reporting period for information prov ided
T he information provided in this report is for fiscal year 2007-08 (April to March).
Most recent previous report
T ata Motors GRI Report 2006-2007
Reporting cycle
T his is the fourth GRI report from Tata Motors Limited. The reporting cycle for the GRI report is
annual.
Contact point for questions regarding the report or its contents
Dr. Sangram T ambe

Vice President – Corporate Human Resources
T ata Motors Limited, Bombay House
Phone – 91 22 66657227
E Mail – sangram.tambe@tatamotors.com
Website – www.tatamotors.com
Mr. M B Paralkar
Consultant Advisor – CSR & IR
T ata Motors Limited, Pune
Phone – 91 20 66132381
E Mail – mparalkar@tatamotors.com
Website – www.tatamotors.com
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Report Scope and Boundary
Process for defining report content

T ata Motors Limited has prepared this report in line with Sustainability Reporting Guidelines (G3
Guidelines) released in 2006. T he report is to be used by the stakeholders of the Company
identified as including the following:
Opportunities and Threats have been identified through a combination of variousinstituted processes,
including the Enterprise Risk Management (ERM) process and interviews with department heads,
including vendor development, environment, safety and human resources. T hese are enumerated
below:
Opportunities
Road dev elopment: Continued improvement in road infrastructure in coming years is expected to
have a positive effect on automobile sales. T he Golden Quadrilateral road project was97% complete
as on March 31, 2008. T he North South East West (NSEW) road corridors are expected to be
completed by December 2009. Rural connectivity is expected to correspondingly improve which
would expand significantly the population/markets/supply sources participating in the overall
economic growth. Improvement in road infrastructure would facilitate faster transportation of goods
and passengers, and would in turn create demand for safer, reliable and faster vehicles. T he
Company is poised to benefit from the same as it has a wide range of goods and passenger
transportation vehicles ranging from 0.7 T on load carrier to large haulage tractors (49T ) for goods
movement, buses and coaches for public transportation and passenger cars and utility vehiclesfor
personal transportation.
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Car penetration in India: T he reduction in excise duty on ‘Small cars’ announced in the Budget is
expected to increase the penetration of cars in the country from 7 per 1,000 people ascompared to a
higher penetration level in developed and developing markets for example, Germany 550, France
495, Malaysia 253, South Korea 219, Brazil 96 and T hailand 51 cars per 1000 people. India and
China (with a car penetration of 6 per 1,000 people) are perceived as highly attractive marketsfor the
global automotive industry. Due to growth in urbanization and expansion of cities, the outlook for
growth in passenger car sales remains positive.
Increase in income lev els: A growing middle income level population, rise in their average income
levels, moderation in income tax rates and the recently announced increase in compensation for
government employees, all augur well for the automotive industry, both in terms of personal
transportation requirements as well as freight movement.
Large tw o wheeler parc/market: India has a 60 million two wheeler parc and an annual sale of over
7.2 million two wheelers. T he Company believes that the gap between two wheeler pricesand the
current entry level car prices offer a huge opportunity for an affordable, safe and comfortable small
car with appealing design and features. It is hoped that the T ata Nano would address this huge
potential in demand.
International business: India continues to be a cost effective source for the automotive industry
globally, both for vehicles and components. India’s manufacturing base will benefit from these scale
economies and technology/quality improvements. T he Company’s exports currently constitute 9.8%
of the total sales value and have opportunities to increase significantly, particularly with the new and
contemporary product offerings in commercial vehicles and passenger cars. T he Company is also
setting up / exploring manufacturing footprint overseas that would combine these advantageswith
local operations and sourcing in these markets.
Growing consumer culture: T he demand for a better lifestyle has enhanced consumption levelsand
rapid growth in several areas like retail chains, cellular phones and cable and satellite television. The
Company, with its wide portfolio is expected to benefit from improvement in lifestyle and higher
aspiration levels in passenger cars and potential growth in freight movement.
Threats
Credit unavailability: Further tightening of liquidity position and reduction in exposure to vehicle
financing by banks/NBFCs would have an adverse impact on the automotive industry. T hough in-
house vehicle financing has been strengthened by the Company, it would be a challenge for the
Company to fully offset the decrease in credit availability from outside sources.
Interest rates hardening and other inflationary trends: Further hardening of consumer interest
rates could have an adverse impact on the automotive industry. Increase in inflation could also have
a negative impact on automobile sales in the domestic market.
Fuel Prices: T he international crude prices witnessed steep increase from price levels of $62 per
barrel at the beginning to $100-110 per barrel towards the end of the fiscal. Further hardening of fuel
prices would adversely impact the automotive sales.
Input Costs: Prices of commodity items like steel, non-ferrous and precious metals and rubber
witnessed an upward movement, which was partially offset by the Company’s cost reduction
initiatives. The price of steel, in particular, has increased by 30% – 35% in the last 24 monthsand is
expected to further increase significantly in the coming year. Whilst the Company continuesto pursue
cost reduction initiatives, increase in price of input materials could have a negative impact on the
demand in the domestic market and/or could severely impact the Company’s profitability to the extent
that the same are not absorbed by the market through price realisation.
Government Regulations: Stringent emission norms and safety regulations could bring new
complexities and cost increases for automotive industry, impacting the Company’s business. WTO,
22
Free T rade Agreements and other similar policies could make the market more competitive for local
manufacturers.
Global Competition: India continues to be an attractive destination for the global automotive players.
T he global automotive manufacturers present in India have been expanding their product portfolio
and enhancing their production capacities. T o counter the threat of growing global competition, the
Company has planned to bridge the quality gap between its products and foreign offerings while
maintaining its low cost product development/sourcing advantage.
Growing consumer aw areness: Growing awareness amongst consumers is driving up expectations
from automobile companies in terms of providing world class features and technology for which
adequate price realization is not always possible.
Growth in Mass Transit Systems: T he domestic passenger vehicle demand could be impacted by
the growth of road and rail based mass transit systems. However, the Company would benefit from
the road based mass transit system due to its wide range of commercial passenger carriers.
Boundary of the Report

T his report includes only Indian manufacturing Operations of T ata Motors. T he sales and revenue
figures include international business. T he products and services of Commercial Vehicle and
Passenger Car Business Units (CVBU and PCBU) including T rucks, Buses, Multi-Utility Vehicles,
Sports Utility Vehicles and cars is included in the scope of the report. In addition, operations of
Engineering Research Centre are also included. Economic indicators are provided for CVBU, PCBU
and International Business. International Business exports are included in the CVBU and PCBU
business.
Specific limitations on the scope or boundaries

T ata Motors would not be reporting on all indicators as the data compilation for some of the indicators
is still underway. Attempt would be to report on such indicators in subsequent reports.
Basis for reporting on Subsidiaries and Associate Companies

We have added to this year’s GRI report, a summary of the financial performance of T ata Motor’s
primary subsidiary and associate companies. Information reported for the subsidiaries and associate
companies is sourced from our Annual Report 2007-08.
Data measurement techniques

T ata Motors has implemented SAP 4.6c system for its data operations reliability and hasintegrated
its operations under it. T he SAP Modules implemented include Finance (FI), Production Planning
(PP), Material Management (MM), Sales and Distribution (SD) Quality Management (QM).
T ata Motors also uses Indian GAAP for reporting its financial performance (from which most of the
Economic performance indicators have been addressed). Most financial details have been sourced
from the Annual Report, which are in turn verified by external auditors.
Internal and external audit practices are designed to provide assurance on systems and data. These
include Corporate Assurance Process every year with the help of Tata Quality Management Services,
Internal and External Financial Audit, ISO 14001 as also ISO 9000 -2000 and IS/T S16949.
Explanation of the effect of any restatement

T here are no re-statements from T ata Motors
Significant changes
Disclosure on Management processes for the performance indicators is being included in the report.
23
Seeking External Assurance

T his report is not subjected to external assurance. The data reported under financial and environment
aspects are, however, subjected to procedural external audit as per national standards.
Governance, Commitments and

Engagement
24
Governance Structure and Board Composition
As part of the T ata group, the Company’s philosophy on Corporate Governance is founded upon a
rich legacy of fair, ethical and transparent governance practices, many of which were in place even
before they were mandated by adopting highest standards of professionalism, honesty, integrity and
ethical behaviour. The Corporate Governance philosophy has been further strengthened with the
implementation, a few years ago, by the Company of the Tata Business Excellence Model, the Tata
Code of Conduct applicable to the Company, its subsidiaries and Directors and employees. T he
Company is in full compliance with the requirements of Corporate Governance under Clause 49 of
the Listing Agreement with the Indian Stock Exchanges. The Company’s Depositary Programme
being listed on the New York Stock Exchange, the Company also complies with US regulationsas
applicable to Foreign Private Issuers (non-US listed companies) which cast upon the Board of
Directors and the Audit Committee, onerous responsibilities to improve the Company’s operating
efficiencies. Risk management and internal control functions have been geared up to meet the
progressive governance standards.
T he Board, being elected by the shareholders, is their representative and a bridge between them and
the executive management. Since shareholders are residual claimants, the value creation and
sustainability of all the other stakeholders viz. customers, creditors, employees, vendors, community
and the Government (of countries in which the Company operates) are of paramount significance to
the Company and its shareholders. T he Board would therefore have a fiduciary relationship and a
corresponding duty to all its stakeholders to ensure that their rights are protected. T hrough the
Governance mechanism in the Company, the Board alongwith its Committees endeavours to strike
the right balance with its various stakeholders.
T he Board of Directors presently comprises of 10 Directors, out of which 8 are Non-Executive

Directors. T he Company has a Non-Executive Chairman and the 4 Independent Directorscomprise
more than one third of the total strength of the Board. T he Company has taken initiativesto comply
with the recent amendment of Clause 49 of the Listing Agreement pertaining to composition of
directors for induction of independent directors.
Board Committees:
T o focus effectively on the issues and ensure expedient resolution of diverse matters, the Board has
constituted a set of Committees with specific terms of reference/scope. T he Committees operate as
empowered agents of the Board as per their Charter/terms of reference. T argets set by them as
agreed with the management are reviewed periodically and mid-course corrections are also carried
out. T he minutes of the meetings of all Committees of the Board are placed before the Board for
discussions/noting. T he Board constituted Committees and the status on independence of these
Committees is given in table below:
Name of Role Status on

Committee Independence
Audit The Audit Committee f unctions according to its Charter that def ines its All 3 Independent
Committee powers, scope and role in accordance with the Companies Act, 1956, listing Directors
25
requirements and US regulations applicable to the Company and is

rev iewed f rom time to time. Whilst, the f ull Charter is av ailable on
Company ’s website www.tatamotors.com
Remuneration The Remuneration Committee of the Company is empowered to review the 2 Independent and 2
Committee remuneration of the Managing Director and the Executiv e Director, Non-Executiv e
retirement benefits to be paid to them under the Retirement Benef it Directors
Guidelines approv ed by the Board and deal with matters pertaining to
Employ ees’ Stock Option Scheme
Inv estors’ The Inv estors’ Griev ance Committee of the Board is empowered to oversee 1 Independent
Griev ance the redressal of inv estors’ complaints pertaining to share/debenture Director as Chairman,
Committee transf ers, non-receipt of annual reports, interest/dividend payments, issue of 1 Non-Executiv e and
duplicate certif icates, transmission (with and without legal representation) of Managing Director
shares and debentures and other miscellaneous complaints
Ethics & The Ethics and Compliance Committee was constituted to f ormulate Chairman being
Compliance policies relating to the implementation of the Tata Code of Conduct f or Independent Director,
Committee Prev ention of Insider Trading (the Code), take on record the monthly reports 1 Non-Executiv e
on dealings in securities by the “Specif ied Persons” and decide penalaction Director and 1
in respect of v iolations of the applicable regulations/the Code Executiv e director
Executive The Executive Committee of Board rev iews capital and rev enue budgets, 5 Non-Executiv e
Committee of long-term business strategies and plans, the organizational structureof the Directors, 1 Executive
Board Company , real estate and inv estment transactions, allotment of shares Director and
and/or debentures, borrowing and other routine matters. The Committee Managing Director
also discusses the matters pertaining to legal cases, acquisitions and
div estment, new business f oray s and donations
Nominations The Nominations Committee of the Board was constituted with the 4 Non-Executiv e
Committee of objective of identif y ing independent directors to be inducted on the Board Directors
the Board and to take steps to ref resh the constitution of the Board f rom time totime
Donations The Donations Committee reviews and approves donations to non- Managing Director
Committee and gov ernmental organisations/non-prof it institutions on basis of need and
Corporate merit. The CSR Committee rev iews, monitors and guides the CSR work
social undertaken across all locations
Responsibility
Committee
26
T he relationship between the Board, the Committees and the senior management functions is
illustrated below:
Mechanism for shareholders and employees to provide

Recommendation to the Board
Shareholders/Investors
A monthly shareholders report is sent to the Board members which describes the shareholding
pattern and also the performance of T ata Motors stock with respect to the other automotive
27
companies and the stock indices. The report also highlights the expectations from various equity
analysts and the Company’s performance vis-à-vis the same. T he Ethics & Compliance Committee
also reviews on a monthly basis the trading in the Company’s shares by the designated employeesto
ensure that they do not unduly benefit on account of access to unpublished price sensitive
information. Investors’ Grievance Committee reviews the investor grievance redressal procedure and
also proactively gives suggestions/directions to protect the interest of the investor.
On recommendations of the Investors’ Grievance Committee, the Company has taken various
investor friendly initiatives like sending of reminders to investors who have not claimed their dues,
launching an odd lot scheme, sending nominations forms, launching a shareholders’ discount
scheme, arranging factory visits, etc. Critical feedback, complaints and suggestions received from
investors are considered appropriately and addressed.
Channel partners/Suppliers:
A Supplier Relationship Management programme and Dealer Management System are in place and
the Management Committee reviews the programme from time to time. The key indicatorsof review
are the Supplier coverage and the efficiency of the transactions with the Company. T he Company
also organizes Supplier’s day/Vendor meets/Channel partner meets where suppliers can touch base
with the Board members and share their thoughts and inputs.
Employees:
T he Management Committee on a very regular basis reviews the employees’ issues. T he

remuneration guidelines, the employee satisfaction, the employee growth plan and the organization
culture are discussed in these meetings. Major employee welfare schemes are put up to the Board for
approval. T he Board is also kept informed of senior level changes in management, statuson signing
of Union wage agreements, remuneration of senior executives, etc.
Customers:
T he Company is also in the midst of implementing a very comprehensive Customer Relationship

management program which is reviewed by the Management Committee and the Board sub-
Committees from time to time. T his program ensures that the Customers are treated in the fair
manner by the channel members of the Company and their needs are also captured and responded
to through this programme.
Linkage betw een executive compensation and

Achievement of the organisation's financial and non-financial goals
T he annual performance/appraisal of the Whole-time Directors are reviewed by the Remuneration

Committee through a structured Balance Scorecard mechanism as agreed to at the beginning of the
year and the performance of the individual Whole-time Director is evaluated against the same. The
Company pays remuneration by way of salary, perquisites and allowances (fixed component),
incentive remuneration and commission (which are major variable components depending on the
performance parameters) to its Whole-time directors after a review of their individual performance.
Annual increments of each Whole-time Director are decided by the Remuneration Committee within
the salary scale approved by the Members and are effective from April 1, annually. The Company has
not issued any stock options to its senior management/employees. Approval of the shareholdersis
obtained for payment of remuneration to the Executive and Non-Executive Directors and adequate
disclosures on terms of appointment, tenure and remuneration are included in the Explanatory Notes
28
to the Notice of the General Meeting. T he Annual Report contains details of the remuneration drawn
by the Whole-time Directors.
T he remuneration by way of commission paid to the Non Whole-time Directors is decided very
objectively by the Board of Directors and distributed to them based on their attendance and
contribution at the Board and certain Committee meetings, as well as time spent on operational
matters other than at the meetings. Approval of the shareholders is taken for payment of commission
to Non-Executive Directors which is within the limits prescribed under the Companies Act, 1956.
Appropriate disclosures are made in the notice of the General Meetings. The Annual Report also
contains details of the remuneration paid to the Directors - both Executive and Non-Executive
Directors.
Process to avoid conflicts of interest
T o ensure that no conflict of interests arise among the highest governing body, transparency in
operations and selection and disclosure policies for governance is maintained. T he Board of the
Company has adopted the ‘Code of Corporate Disclosure Practices’ according to which the public
spokespersons are identified who are responsible in ensuring timely and adequate disclosure of price
sensitive information. T his Code ensures simultaneous release of information through various
mediums of disclosure/dissemination in a transparent and fair manner. Information isavailable to the
shareholders through Annual Reports and half-yearly communications which are dispatched to them,
besides press releases for audited quarterly financial statements, which are also intimated to Stock
Exchanges. T his information is also available on the Company’s website. T he 20F Annual Report
prepared as per the US regulations and the New York Stock Exchange Listed Manual provides
information which is not normally in the public domain vis-à-vis other listed companies, is also
available on the website of the Securities and Exchange Commission and the Company. The 20-F
Annual Report contains information on five-year financial data under US GAAP; risksassociated with
the Company’s business; investments in the Company and relating to ADRs; a business overview
which includes sections on the Indian economy and the automotive market and competition; business
strategy and operations; a complete product profile; production facilities and distribution network;
R&D initiatives; intellectual property; legal proceedings; organisation structure; subsidiaries and
affiliates; operating and financial review and prospects; capital expenditure incurred and sourcesof
financing; details of the auditors; Board composition and management; governance structure;
shareholding pattern; dividend policy; share and ADR price; rights of shareholders; exchange control
policy of the Government and taxation as relevant to investors; Chief Executive Officer and Chief
Financial Officer certification to the investors and audited consolidated financial statementsfor the
last three years.
T o ensure that the Company has disclosed relevant, accurate and complete information to its
investors so as to ensure that the Company’s financial condition and results of operations in all
material respects have been disclosed on a timely basis under the applicable laws, the Company
recently constituted a Disclosure Committee comprising of the senior management as also headsof
the larger subsidiary companies.
Selection Criteria for Board members
T he Directors are selected based on the following criteria:

• Business experience
• Expertise in the field
• Ability to bring in the external perspective
• Relation to the Company and Board
29
Nomination by Articles of Association, Debenture holders, financial institutions, virtue of technical

collaboration and financial agreement
Internally Dev eloped Mission, Code of Conduct and Values
Being a global player, T ata Motors has ensured that its corporate governance practices are
compatible with the international standards. T ata Motors has adopted the T ata BusinessExcellence
Model (T BEM) as a means of driving excellence. In order to track process on long-term strategic
goals, a Balanced Score Card methodology is used. T his enables the Company to go beyond
financial performance to incorporate considerations of environment and society, as well.
T ata Code of Conduct
T ata Code of Conduct (T CoC) is applicable to all employees, including the Managing Director and the
Executive Directors. (TCoC can be v iewed at our website). T he Code is a set of 25 principles, adherence
to which ensures ethical conduct both by the employees as well as the Company at large.
For internally developed mission statement and core values of T ata Motors, please refer to 1.1
Board-level process for ov erseeing the organisation's identification and management of

economic, env ironmental, and social risks and opportunities
T he Board takes responsibility for the total process of risk management in the organization. The Audit
Committee reviews with the Management, External and Internal Auditors, the adequacy of internal
control systems. It reviews management letters / letters of internal control weaknesses issued by
Statutory / Internal auditors. T he Management implements actions to mitigate residual risks. T he
Board assures all stake holders about adequacy of internal control Systems and documents
procedures in the Company’s Annual Report.
T he Management is accountable for the integration of risk management practicesinto the day to day
activities. Lapses are highlighted as findings after risk assessment or audit reviews.
T he Risk management and internal control model and framework adopted by the Company provides
the Board reasonable assurance on the effectiveness and efficiency of the Company’soperations; the
safeguarding of the Company’s assets, the Company’s compliance with laws, regulations and
supervisory requirements; the sustainability of the Company’s operations under normal and adverse
operating conditions; the reliability of the Company’s reporting and the Company’s responsible
behaviour towards all stakeholders.
Ev aluating the Board’s Performance
T he organisation has adopted the Balanced Scorecard concept and an online dynamic Performance
Appraisal System which is a fairly transparent and formal procedure for deciding on the director,
senior and middle management remuneration
Approach to Risk Management in Operational Planning
T he Company has a comprehensive system of control, focused on mitigation of risks to ensure

achievement of objectives. T he control environment comprising of values, ethics, management
30
philosophy, employee competence, etc. supports risk management. T he risks are assessed on an
ongoing basis and controls are designed to respond to risk throughout the Company.
T here is a twofold approach to Risk Management:
1. Enterprise Risk Management (ERM)

2. Internal Audit
Enterprise Risk Management:
T he ERM process identifies entity level risks. For the purpose of review, risks are categorized into
three categories viz high, moderate and low and are also rated from 1-5 based on impact and
frequency. All risks are classified as per processes in the “Enterprise Process Manual”. Certain
clusters of risks are treated as priority clusters. T he Audit Committee reviews the mitigation action
taken against these risks on a periodic basis. Also, other risks which may materialize may also be
accorded priority if they are critical. Pertinent information on risk assessment and control activitiesis
communicated effectively to employees. The line management regularly monitorscontrols. Thusthe
risk management/internal control practices contribute to the development of robust business
operations and promotes/enhances value creation. T he Board regularly reviews processes and
procedures to ensure the effectiveness of the internal systems of control. Management reportsto the
Board provide a balanced assessment of significant risks, a balanced assessment of the
effectiveness of the system of internal controls in managing those risks and identify significant
failings/weaknesses, its impact on the Company and actions taken to rectify them.
T he Company is promoting risk awareness through a structured risk management process. T he

ownership of these programs vests with operating managers, with Internal Audit playing a facilitators
role. However, the primary responsibility remains with the process owners.
T he ERM Process has been initiated in the Company as a tool to strengthen the Strategic Planning
process. It aims at sustaining desired operational performance and providing a platform for rational
allocation of capital across Small Business Units. T he process maps the Strategic, Operational,
Financial & Governance Risks related to the Business strategy as also on account of weaknessesin
the internal processes.
T he agreed risks are logged in the Company’s Risk register and the respective Responsibility Centers
are required to determine the risk treatment (Accept/Reduce/T ransfer/Eliminate) and work out the
mitigation plans accordingly. T he outcomes of the Risk Mapping Process were presented to the
Management Committee and the Audit Committee for review and direction. T he outcomesof ERM
process were also reported to the Board on March 31, 2006.T he Major risks along with the mitigation
actions are planned to be reviewed by the Management Committee and presented to the Audit
Committee and the Board on a regular basis.
A benchmarking of ERM practices of other local and global companies has been done to ascertain
opportunities for improvement. T he ERM process is designed to be compliant with SOX and Clause
49 of the Listing Agreement with the Indian Stock Exchanges.
Internal Audit:
Internal Audit has an annual risk based audit plan. Risk Universe is defined covering all processesof
the company. Inherent risk scores are assigned to each process and are reviewed every 5 years. At
the start of the year, CIA informally discusses the business imperatives with Senior Executives.
T hese imperatives serve as an important input whilst developing the annual plan. The annual audit
plan is prepared to cover a majority of the high & near high risk areas and a considerable number of
processes with moderate and low risk scores.
31
Audits are conducted by way of Self Assessment Questionnaires or through full fledged audits. The
Audit Committee reviews audit reports every quarter. Audit Reports are classified as Section A and
Section B type reports. T he Audit Committee reviews observations and recommendationshighlighted
in Section A reports as well as critical issues pertaining to Section B reports. T he timelines for
implementing the recommendations is monitored by way of a robust process, which yieldsmeaningful
and actionable reports
Subscribing to externally dev eloped Charters, Principles and Initiativ es
T ata Motors is a signatory of the United Nations Global Compact. By adhering to this voluntary
initiative, the Company commits itself to the ten principles that range from Human Rightsprotection,
Labour Standards, Environmental Protection and Anti-Corruption. T he Company hasbeen submitting
its “Communication on Progress” (COP) to the Global Compact and is in fact the only Indian
automobile company to have been appreciated as “Notable COP” for consecutive years. Tata Motors
is a member of CII (Conference of Indian Industries), BCCI (Bombay Chambers of Commerce and
Industries) and ASSOCHAM (Association of Chambers of Commerce of India).
Stakeholder Engagement
Approach
Engagement of Identify their Prioritize Address concer ns

Stakeholders: and issues in
Meetings, f eedbacks,
c oncerns and c oncerns and Strategy Planning
I nt eractions, etc Is sues is sues Process
Set Goa ls , targets
S teering Committee Ba lanced
Review and S co recard &
S t ra te gic
c orr ective action Di re cti on
I nit iat ive s
Report and communicate

to all stakeholders
(Ann ual Report, Cha irman &
Learning & sharing
ED le tters/GRI & Corpo rate ac ros s and impr ove
Gove rna nce reports, etc)
Stakeholder engagement and input is central to the entire strategic planning and deployment
exercise. T here are several mechanisms (as detailed in Annexure) through which the Company
engages its stakeholders and identifies the key stakeholder concerns and issues.
T he organizational challenges and issues identified are considered in the strategic planning process
to determine strategic objectives.
T he vision, mission and values guide the strategic planning process. T his process also involves a
comprehensive external environment scan, various survey feedback, inputs, SWOT (strengths,
weakness, opportunities and threats) analysis and business planning exercise. After identification of
key business drivers, the short terms and long term strategic objectives are identified. T he strategic
objectives are deployed using the balanced scorecards, which balance the needs of all stakeholders.
An indication of how various objectives are aligned with stakeholder concerns has been provided in
Annexure I (Stakeholder Engagement Chart).
32
Economic Management Approach

and Performance Indicators
33
MANAGEMENT APPROACH
Risks and concerns identified for the economic performance of the company are enumerated
below :
Interest rates and credit availability: Consumer interest rates witnessed an upward movement in
the second half of FY 07-08. Further tightening of the liquidity position, non-availability of vehicle
finance and firming up of interest rates would affect vehicle demand, which could impact the
Company’s revenues and profits.
Exchange rates: The Company’s exports constitute 9.8% of the turnover and imports constitute
4.6% of material consumption. Further, the Company has large foreign currency borrowings in the
form of foreign currency convertible securities. Movements in exchange rates and volatility in the
foreign exchange markets could significantly impact profits.
Freight Rates: Moderation in industrial activity, slowdown in freight movement and increase in fuel
price would adversely impact vehicle operators’ margins to the extent not recovered through increase
in freight rates. T his would have an adverse impact on commercial vehicle demand.
Railways: Railways’ renewed focus on cement and steel movement and container movement and
planned nationwide rail freight corridor connecting major cities could impact the demand of
commercial vehicles for goods transportation. However, it is expected that with the growth in road
infrastructure and increase in vehicle penetration and with product offerings suitable for different
applications, road transport would continue to have a dominant role and offer flexible, speedy and
point-to-point service.
Domestic market: T he commercial vehicle industry due to its strong linkages with the economy
would be impacted by slowdown in economic growth. T he Company has strengthened itslesscyclical
businesses like passenger carriers, small and light trucks and passenger cars as well as its spare
parts and other service offerings to counter moderation in demand. T he increasing trend of offering
price discounts in the market could also affect the Company’s margins.
Ov erseas markets: In the overseas markets, many of which have stricter norms of vehicle
regulations related to emission, safety, noise, technology, etc., the Company competes with
international players which have global brand image, larger financial capability and multiple product
platforms. These factors may impact the demand of the Company’s products in overseas markets.
Manufacturing: T he Company manufactures its products at multiple locations and its operations
could be affected by disruption in its supply chain due to any natural calamities and workstoppages
at its suppliers’ end due to load shedding, labour problems, etc.
New Competition: Intensity of competition has increased in almost all the segments of the Indian
automotive market due to entry of new players and expansion plans of existing ones. The Company
is aware of the increasing competition and is taking measures to remain competitive in the market
place.
34
New proj ects: T he Company is undertaking a variety of new projects ranging from the launch of a
small car to the development of a new truck model. T hese projects are in variousstagesof execution.
T hough the Company employs sophisticated techniques and processes to forecast the demand of
new products, yet the same is subject to margin of error. T imely introduction of new products, their
acceptability in the market place and managing complexity of operations across various
manufacturing locations would be the key to sustain competitiveness.
Internal Control Systems and their adequacy to manage these risks are highlighted below :
T he Company has in place adequate system of internal control. It has documented procedures
covering all financial and operating functions. T hese controls have been designed to provide a
reasonable assurance with regard to maintaining of proper accounting controls, monitoring of
operations, protecting assets from unauthorized use or losses, compliances with regulationsand for
ensuring reliability of financial reporting. The Company has continued its efforts to align all its
processes and controls with global best practices in these areas as well.
T he Management Approach managing economic risks and concern is to have a robust internal
control system so as to achieve the maximum economic value creation. Some significant featuresof
the internal control systems are:
• Corporate policies on accounting and major processes;

• Well-defined processes for formulating and reviewing annual and long term businessplans;
• Preparation and monitoring of annual budgets for all operating and service functions;
• State-of-the-art ERP, Supplier Relations Management and Customer RelationsManagement,
connect its different locations, dealers and vendors for efficient and seamless information
exchange;
• An on-going program for reinforcement of the T ata Code of Conduct. T he Code covers
integrity of financial reporting, ethical conduct, regulatory compliance, conflict of interests
review and reporting of concerns. All employees of the Company are regularly exposed to
communications under this program;
• Bi-monthly meeting of the management committee at apex level to review operationsand
plans in key business areas;
• A well established multidisciplinary Internal Audit team, which reviews and reports to
management and the Audit Committee about the compliance with internal controlsand the
efficiency and effectiveness of operations and the key process risks;
• Audit Committee of the Board of Directors, comprising independent directors, which is
functional since August 1988, regularly reviews the audit plans, significant audit findings,
adequacy of internal controls, compliance with Accounting Standards as well as reasonsfor
changes in accounting policies and practices, if any;
• A comprehensive information security policy and continuous upgrades to IT system;
• Documenting major business processes and testing thereof including financial closing,
computer controls and entity level controls as part of compliance with Sarbanes-Oxley Act;
• Anti-fraud programme.
T he Board takes responsibility for the total process of risk management in the organisation. The Audit
Committee reviews reports covering operational, financial and other business risk areas. Through an
Enterprise Risk Management programme, each Business Unit addresses opportunities and the
attendant risks through an institutionalized approach that is aligned to the Company’sobjectives. This
is also facilitated by internal audit. T he business risks are managed through cross functional
involvement and intense communication across businesses. Results of the risk assessment and
residual risks are presented to the senior management.
35
EC 1: Direct Econom ic Value Generated
Distribution of Revenue (INR in crores – 1 crore=10millions)
Sources of Rev enue (INR in crores – 1 crore=10millions)
36
Summarized Balance Sheet

(Rupees in Millions)
What the Company OWNED

1. Net Fixed Assets 104522.7
2. Investments 49102.7
3. Net Current Assets (2728.5)
4. Miscellaneous Expenditure 60.5
5. T otal Assets (NET) 150957.4
What the Company owed

1. Loans 62805.2
2. Net Worth 78395
Represented by:
Share Capital 3855.4
Reserves 74539.6
3. Deferred Tax Liability (NET ) 9757.2
4. T otal Funds Employed 150957.4
Summarized Profit and Loss Account

(Rupees crores)
1. Income
Sale of Products and other Income 330939.3
Less: Excise Duty 43631.1
287308.2
Dividend and other income 4831.8
292140.0
2. Expenditure
37
Raw materials / components,

Manufacturing and Other Expenses 240939.3
Employee Cost 15445.7
Product Development Expenditure 643.5
Depreciation 6523.1
Interest 2823.7
T otal Expenditure 266375.3
Profit Before Tax 25764.7
Profit After Tax 20289.2

Balance Brought Forward From Previous Year 10138.3
30427.5
Appropriations
(i) Proposed Dividends 5784.3
(ii) Tax on Proposed Dividends 812.5
(iii) General Reserve 10000.0
(iv) Balance carried to Balance Sheet 13830.7
30427.5
Donations
T otal Donations disbursed during 2007-08 to various non-governmental and non-profit institutions,
based upon merit and need Rs. 12.8 millions.
Community Inv estments
T ata Motors invests in various CSR projects that target improvement of quality of life of people. The
thrust areas for these projects include - Education, Health, Employability and Environment. T he
Company views the expenditure in such projects as an investment and not a cost. In the year 2007-
08, investments in social and community projects amounted to Rs. 12.5 millions. T his amount is
excluding administrative expenditures involved.
Summary of Economic Performance of Subsidiary and Associate Companies
Subsidiary Companies
For the financial year ended March 31, 2008, the Company’s subsidiaries, on an aggregate basis,
have significantly improved on their financial performance and profitability. A brief profile of the
subsidiary companies and their main financial parameters for FY 2007-08, are given below:
T ata Daewoo Commercial Vehicle Company Limited (T DCV), Korea is a 100% subsidiary of the
Company is the second largest manufacturer of Heavy and Medium commercial vehicles in Korea.
During the year ended March 31, 2008, T DCV recorded a turnover of Rs. 28650.2 millions, which is
45% higher to the previous year. PAT increased by 78% and stood at Rs. 1531.1 millionsasagainst
Rs. 974.6 millions in 2006-07.
T elco Construction Equipment Company Limited (T elcon) is engaged in the business of

manufacturing and sale of construction equipment and allied services in which the Companyhas60%
38
holding and Hitachi Construction Machinery Company Limited, Japan, holds 40%. During the year,
the Company divested 20% of its stake to Hitachi, thus reducing its stake from 80% to the present
60%. With the increase in economic activity especially in the infrastructure sector, Telcon recorded its
best performance to date having sold 7,698 machines with a Profit After Tax of Rs. 3240 millions.
T ata Marcopolo Motors Limited (T MML) is engaged in the business of manufacture and sale of fully
built buses and coaches in which the Company has a 51% holding with the balance 49% being held
by Marcopolo S.A., Brazil. The Company started its commercial production from November 2007 and
has sold 190 low entry CNG buses. T MML recorded a net turnover of Rs. 65.7 millions and lossafter
tax is Rs. 38.3 millions.
T ata Motors (SA) Proprietary Limited (T MSA) a joint venture company was incorporated during the
year in which the Company holds 60% with the balance 40% being held by the Tata Africa Holdings
(SA) (Pte.) Limited. T MSA has been formed for manufacturing and assembly operations of the
Company’s Light and Heavy commercial vehicles and Passenger Cars in South Africa. TMSA hasyet
to start its operations.
T ata Motors (T hailand) Limited is a 70:30 joint venture between the Company and T honburi
Automotive Assembly Plant Co., for manufacture, assembly and marketing pick-up trucks. The joint
venture enables the Company to address the ASEAN and T hailand markets, the latter being the
second largest pick-up market in the world after the USA. While T MT L has begun setting up
operations in 2007-08, the manufacturing of vehicles began only during March 08’ with revenuesfrom
sales and other income at Rs. 9 millions.
T ata Motors Finance Limited a wholly owned subsidiary of the Company, is registered with Reserve
bank of India as a Non-Banking Finance Company and has been classified an “Asset Finance
Company”. During the year under review, total income was 423% higher than last year and stood at
Rs. 8369.5 millions, with Profit Before T ax of Rs. 502.6 millions exceeding the 2006-07 figuresby
150%.
T ata T echnologies Limited (T T L), along with its subsidiaries is in the businessof providing information
technology services. T ata Technologies Pte. Ltd. (TT PL) which became a subsidiary of TTL acquired
T ata T echnologies, USA, (TT US) in March 2006. T T US acquired INCAT International Plc (INCAT), a
global provider of Product Life Cycle Management (PLM), Engineering and Design services to
automotive and aerospace industry. INCAT acquired CEDIS Mechanical Engineering GmbH, in
January 2006, to enhance its presence in its lines of business in Germany. T T L incorporated a wholly
owned subsidiary in T hailand named T ata T echnologies (T hailand) Limited which would be TTL’s
second global delivery to take advantage of the growth in the area. T T L has 13 subsidiary companies
as on March 31, 2008.
T he Company holds 81.71% of T TL’s share capital. T he year marked an important milestone in the
growth history of the Company with consolidated revenues crossing the Rs. 10,000 millionsthreshold.
T AL Manufacturing Solutions Limited (T AL) is a 100% subsidiary of the Company engaged in the
business of providing factory machine tools, equipments, material handling systems and fluid power
solutions. During the year, it has ventured into Aerospace business by signing agreement with Boeing
Corporation, USA for manufacturing structural components. T AL has also signed sales and service
agreement with HELLER, Germany, a globally renowned manufacturer of high end machining
centres. T AL recorded a turnover of Rs. 2205.8 millions and a Profit After T ax of Rs. 120.2 millions.
HV Transmissions Limited (HVT L) and HV Axles Limited (HVAL) 85% subsidiary companies of the
Company are engaged in the business of manufacture of gear boxes and axles for Heavy and
Medium commercial vehicles, with production facilities and infrastructure based at Jamshedpur. With
the rise in demand for Medium and Heavy commercial vehicle over the years, major improvement
39
initiatives were undertaken at HVT L and HVAL. Both HVT L and HVAL manufactured prototypesof
gear boxes and axles for application in the Company’s new products. HVT L recorded a 9.39%
increase in its turnover of Rs. 1919.8millions in 2007-08, PAT being Rs. 474.4 millions. HVAL
recorded a turnover of Rs. 2032.4 millions and a PAT of Rs. 634.1 millions.
T ML Distribution Company Limited (T DCL) a 100% subsidiary of the Company incorporated on March
28, 2008 would be engaged in the business of dealing and providing logistics support for distribution
of the Company’s products throughout the country. T DCL is yet to start operations.
Sheba Properties Limited is a 100% owned Investment Company, whose income was Rs. 213.7
millions and Profit After T ax was Rs. 162.2 millions.
Concorde Motors (India) Limited (CMIL), a 100% subsidiary of the Company engaged in salesand
service of T ata and Fiat passenger cars recorded a turnover of Rs.6252 millions with PAT of Rs. 53.3
millions.
T ata Motors Insurance Broking and Advisory Services Limited (T MIBSAL) (formerly known as Tata
Motors Insurance Services Limited), a 100% subsidiary of the Company, proposes to undertake the
business of direct insurance broking. T MIBSAL has received a licence from Insurance Regulatory and
Development Authority (IRDA) to act as Direct Broker under the IRDA Act on May 13, 2008. Pending
the issue of licence, no business was carried out during the period of October 2005 to March 2008.
T ata Motors European T echnical Centre plc. (T MET C) is a 100% subsidiary of the Company engaged
in the business of design engineering and development of products for the automotive industry.
Working synergistically with the Company, T MET C provides it with design engineering support and
development services, complementing and strengthening the Company’s skill sets and providing
European standards of delivery to the Company’s passenger vehicles. T MET C earned gross
revenues of Rs. 1279.5 millions and an operating profit of Rs. 114.3 millions as against Rs. 70.8
millions in 2006-07.
Associate Companies
Automobile Corporation of Goa Limited (ACGL) in which the Company has a 37.79% shareholding
was incorporated in 1980, jointly with EDC Limited, a Government of Goa enterprise. ACGL isa listed
company engaged in manufacturing sheet metal components, assemblies and bus coachesand is
the largest supplier of buses (mainly for exports) to the Company.
Fiat India Automobiles Private Limited (FIAPL) is a Joint Venture with Fiat auto S.p.A., Italy to
manufacture Fiat and T ata cars and powertrains at Ranjangaon, Maharashtra, India. The new facility
was inaugurated on April 2, 2008 and is one more step towards confirming the strong motivation and
understanding between the partners towards developing new opportunities in India and abroad.
T ata Cummins Limited (T CL), in which the Company has a 50% shareholding, with CumminsEngine
Co. Inc., USA holding the balance. T CL is engaged in the manufacture and sale of high horse power
engines used in the Company’s range of Medium/Heavy commercial vehicles.
T ata AutoComp Systems Limited (TACO) is a holding company for promoting domestic and foreign
Joint Ventures in auto components and systems and is also engaged in engineering services, supply
chain management and after market operations for the auto industry. T he Company’sshareholding in
T ACO is 50%.
T ata Precision Industries Pte. Ltd., Singapore, in which the Company has a 49.99% shareholding, is
engaged in the manufacture and sale of high precision tooling and equipment forthe computer and
electronics industry.
40
Nita Co. Ltd., Bangladesh, in which the Company holds 40% equity, is engaged in the assembly of
T ata vehicles for the Bangladesh market.
Hispano Carrocera S.A. (HC), a well-known Spanish bus manufacturing company, in which the
Company acquired a 21% stake in March 2005, was another major step in the Company’splansfor
globalization. Hispano has two manufacturing units, one in Spain which caters to the European
market and the other tone in Casablanca which caters to the Moroccan and other North African
markets. HC is present in both the ‘city bus’ and ‘coach market’ segment in both the geographies. HC
reported a production of 375 buses during FY 2007-08 on a consolidated basis.
EC 4: Significant financial assistance received from the government
The Company receiv ed incentive package by the State Government for setting up the
manufacturing unit of the Small Car (Nano) in Singur, West Bengal in 2007-08. Howev er,
before the incentives could be utilized, the plant w as shifted to a new location – Sanand,
Guj arat, India. This shift occurred as there w as lack of safety of its employees and equipments
in the hostile env ironment created by constant attacks on colleagues and property in the
region. The Company has also benefited from the incentiv es offered by the State Industrial
Development Corporation of Uttaranchal to attract industrialization in the region. The
Company has set up its ACE Factory in the area and has dev eloped an extensiv e v endor park
in the region as w ell, opening a whole new range of employment opportunities.
EC 5: Range of ratios of standard entry level w age com pared to local minimum wage
at significant locations of operation
If a comparison is made of entry points of wages with the Minimum wages as prescribed bythe law,
T ata Motors offers more than double the minimum prescribed by law. With experience and the tenure
of service, the average wages that an operative earns improve the quality of life that the individual
can enjoy in the society.
EC 6: Policy, practices and proportion of spending on locally-based suppliers
T he process for sourcing has many steps and variables and to a certain degree it is often done on a
case-by-case nature. At Jamshedpur manufacturing unit there are a very large percentage of local
suppliers.
In terms of environmental and labour practices, the sourcing department will not consider a vendor or
potential vendor that does not have the required list of certifications, including the compliance with
factories Act, audited by the government for confirmation. Following that there are visits, succeeded
by visit reports. A check-list of 37 points is required to be met, including aspects of Quality, Cost,
Delivery, Design and Management Systems (QCDDM). Geographical location, although a part of the
process, is not an overwhelming priority. Quality is the most central factor, then there is loyalty to
current suppliers (whether they operate in the relevant area or would be willing to open business
there), then there is local suppliers considered, proving they can provide the product at a suitable
price.
Moreover, sourcing conditions differ from location to location. For example, Jamshedpur is well
endowed with sources around the area, so very little needs to be bought in. If productsdo need to be
bought in, often they will encourage the company to open a plant in the vicinity. However, while these
are the considered processes, there is much case-by-case analysis, so the process can vary
according to the type of part and also the type of supplier.
41
EC 7: Procedure for local hiring
In India, citizens have the freedom of domicile in any state of the country (with exceptionsof very
few states) and as such local hiring is not specific. Major areas of operation in India lie in
Jamshedpur, Pune, Lucknow and now Uttrakhand and at these locations, more than 50% of the
jobs have been created for the local populace there.
EC 9: Indirect econom ic im pacts, including extent of im pacts
Wor ldwide, Tr ansport sector has emer ged as the biggest employer *
1 Commer cial V ehicle - employment for 13.3 people
1 Car - employment for 5.3 people
1 Three Wheeler - employment for 3.9 people
1 Two Wheeler - employment for 0.5 people
* Sour ce: Automotive M ission Plan 2006-16, Includes: Dir ect and Indirect Employment
Tata M otor s r ecor ded its highest ever sales of 585,649 vehicles (352,785 commer cial; 232,864
passenger ). The appr oximate indir ect economic impact gener ated by the company in 2006-07 is
summar ised below
1,058,355
232,864
23,230
18,000
5000 10,300
Employment Employees in Employment Dir ect Indirect Indir ect employment

thr ough social gener ated through employment fr om fr om commer cial
Subsidiar ies Employees
initiatives * channel par tners passenger car s ** vehicles ***
* Includes initiatives to enhance employability (vocational and technical tr aining,
appr enticeship pr ogr ammes), promotion of co-oper atives and formation of Self-Help Gr oups
** On assumption that one passenger car sold cr eates employment for at least one per son –
dr iver /cleaner
*** On assumption that one commer cial vehicle sold cr eates employment for at least thr ee
people – Dr iver and cleaner /helper & loader
42
Environment Management Approach

and Performance Indicators
43
MANAGEMENT APPROACH
T ata Motors Ltd, (T ML), plans for the environment in its processes, products and services. “Facilities
and Environment Management” is identified as a Business Process and is formally documented in our
Enterprise Process Manual. “Facilities and Environment Management” process is mapped in detail
and the measures for “effectiveness and efficiency” of the process are specified. This hashelped the
Company to evolve a uniform approach across all manufacturing locations in the country.
Environment Management system at T ata Motors is given below:
Ke y Ste ps in - Outp uts

Inp uts ‘Env ir o nm e nt Manag e me nt’ • Impr ovements in
envir onmental
• National & Inter national • Assess the significant envir onmental aspects of per for mance (e.g.:
Legislation & pr otocols pr oducts and activities r eduction in pollution;
• Quality & Envir onmental • Set ‘Contr ol Processes’ and ‘Objectives & e.g.: r eduction in natur al
Policy Tar gets’ r esour ce consumption;
• Rules & Regulations • Deploy the pr ocess and implement ‘Action Plans’ e.g.: elimination of
to achieve ‘Objectives & Tar gets’ including hazar dous mater ial etc.)
• Plant level waste disposal
guidelines. Climate Change r elated issues • Compliance to
• Review pr ocesses for impr ovements / and envir onmental
• ISO:14001 r equir ements as per
conduct inter nal / ex ter nal audits
• New developments statutory nor ms
• Global developments such • Review the process • Reduce CO2 emissions /
as Climate Change incr eased car bon offsets
Ho w it o p e r ates (M e tho d s/ Pr actice s)

[Cr o ss Re f.: EMS M anual at r e spe ctiv e lo catio ns]
Pe r fo r mance M easur e Unit
1. A sse ss the ‘sig nificant’ e nv iro nm e ntal asp ects o f p ro d ucts and
activ itie s as pe r e stab lishe d EM S p r oce d ur es- Efficie ncy
• All Pr ocess Ow ner s identify the ‘significant’ envir onmental
Impr ovement over pr evious year s Ratio
aspects of pr oducts and activities w ith the help of ERC centrally ‘environmental per for mance’
& Envir onment Gr oup at r espective Wor ks locations. (TISHD*)
* TISHD – Tata Ind e x fo r Sustainab le 44
2. De fine Op e r atio nal Co ntr o ls, Em e r ge ncy A ctio n Plans and se t Hum an De v e lo p m e nt
‘Ob jectiv e s and Tar ge ts’
• Oper ational Contr ol Pr ocedur es and Emergency Action Plans are
established and deployed. Pr ocess r equir ements ar e assessed in Effe ctive ne ss
All our manufacturing facilities (Pune, Jamshedpur, Lucknow and Uttarakhand) have been certified to
the ISO:14001 – Environmental Management System (EMS) Standard. At Jamshedpur the
Engineering, Health Care & Civic Services to T ata Motors T ownship have also achieved certification
to ISO:14001.
EN 1: Total m aterials used by type
Material Used by Type Consumption in 2007-08*
Steel ( T housand MT ) 205.094

Oils (KL) 26947.79
Pre T reatment (PT ) Chemicals (MT ) 936.64
Paints, Primers & T hinners (KL) 9509.9

* Data includes three main manuf acturing units in India, v iz. Jamshedpur, Pune and Lucknow
EN 2: Percentage of m aterials used that are recycled input m aterials
Re-cycling of material is best illustrated in the use scrap metal generated externally as well as
internally.
Re-use of packaging materials:

Aggregates and assemblies moving between Pune and Jamshedpur Plants are packed in wooden
crates manufactured from scrap wooden packaging of incoming material. T his was further
improved by changing four types of aggregates to returnable metal pallets,
45
Collapsible, custom-built polypropylene (PP) boxes have been developed for bought out
components that are bulky and light (e.g.: dashboards). These PP boxes can be dismantled,
flattened and returned to vendors for re-use, eliminating the use of virgin packaging material each
time. With a cycle time of more than 150 trips these polypropylene boxes have resulted in
significant savings on component packaging.
Quantity of Scrap wooden packaging box sold to recyclers:
In addition, T he Company is working with the ‘Department of Science & Technology’ on the Expert
Panel on “Recyclability of automotive Systems & Components”. It is also working with Society of
Indian Automobile Manufacturers (SIAM) as a member of task force to study recyclability of vehicles
in India.
EN 3 & 4: Direct and Indirect energy use
Fuels are used for process heat requirements and energy. Liquefied Petroleum Gas (LPG) isused
as a fuel to generate heat as well as in the process for generation of Endo-gas in continuous
Carburising and Hardening Furnaces.
2007-08
TOTAL Energy Used (Aggregate of all types)
Total Direct used (in Million MJ) 2339.25
Total Indirect used (in Million MJ) 2556.11

* Data includes two main manuf acturing units in India, v iz. Pune and Lucknow
EN 5: Energy saved due to conservation
T ata Motors considers energy conservation critical to the operation of its manufacturing units. Apart
from reducing operational costs, the energy saved amounts to environment protection by way of
46
avoiding pollution due to power generation processes. Energy conservation is driven throughout the
organization, by way of setting Division-wise targets and monitoring performance on everyday basis
for optimizing energy consumption.
Company has started several Energy Accounting and Energy Conservation programmes, some of
which are highlighted below:
• Introducing Fiber Reinforced Plastic blades for man-coolers.
• Installing variable speed drive for flow control and energy saving
• Introduction of fuel additives in Furnace Oil to improve the combustion efficiency of the fuel.
• Soft-start energy savers for hydraulic press motors
• Sheds designed for efficient natural lighting.
• Use of compact fluorescent lamps, sodium vapours lamps to minimize energy consumption.
• Installing portable compressors for isolated running to save compressed air
• Harnessing natural daylight by installing translucent roof sheets in workshops
• Use of Liquefied Petroleum Gas in place of Light Diesel Oil and Electricity for heating, wherever
applicable.
• Installation of Turbo Ventilators in forge and Foundry to extract fumes which do not require
energy to operate
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
1. Technical committee for “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities” constituted by Central pollution control board, Delhi
2. Group on “T echnical evaluation of Automotive Research Association of India reports on
development of emission factors” constituted by Central pollution control board, Delhi
3. Technical committee for “Heavy-duty Diesel retrofit demonstration project” constituted byNational
environmental engineering research institute, Mumbai
4. Multi stakeholder committee to “Develop Better environmental sustainability targets for lead
battery manufacturers” constituted by development alternatives, Delhi in collaboration
occupational knowledge international, UK and national referral center for lead poisoning, India
5. Steering committee for “Mobile Air conditioning Assessment project” constituted by The Energy
Research Institute (T ERI), Delhi
EN 6 & EN 7:
Initiatives to use renewable energy sources and increase energy efficiency
The Env ironment Challenge: T he demand for energy has grown along with rapid industrial growth.
Studies have forecast a shortage of fossil fuel worldwide leading to ultimate extinction, when natural
deposits will be completely depleted. Fossil fuel based conventional power generation isrecognized
as a major contributor to environmental pollution and to the Greenhouse Effect.
Wind Pow er as an alternate source of energy: Wind power is a ‘clean’ and ‘cost effective’
renewable energy source. Wind energy has emerged as an economically lucrative and the cheapest
source of electrical energy which offers financial returns within a short period of time. It is further
estimated that approximately 1000 Units of electricity saved is equivalent to 1 tonne of carbon dioxide
– the primary greenhouse gas. T ata Motors’ opting for wind energy effectively reduces the demand
for electricity generated by burning conventional fossil fuels such as coal and fuel oil.
Wind Pow er Dev elopment in Maharashtra: T he estimated wind energy potential of India is20,000
MW and 800-900MW in Maharashtra. T he State Govt. has appointed an agency, Maharashtra
Energy Development Agency (MEDA) to encourage use of non-conventional energy sourcessuch as
wind power. MEDA has identified various sites n Maharashtra, where sufficient wind velocity is
available to develop wind power generating units.
47
Use of Wind Pow er at Tata Motors, Pune: M/s Suzlon Energy Ltd. installed & commissioned 114
Nos. x 350 KW wind turbines & 3 Nos. x 1MW wind turbines at Satara and Supa in Maharashtra. Tata
Motors, Pune has signed a 35.55 MW Power Purchase Agreement (PPA).
In September 2007, the Certified Emission Reductions w ere auctioned through the Chicago
Carbon Exchange (CCX) and purchased by M/s Eco-Securities Capital Ltd., Ireland
It is to be further noted that T ata Motors is working with the steering committee of National Hydrogen
Energy Board, India, to find ways in which India may harness hydrogen potential energy of future.
EN 8: Total w ater use
3
T otal water consumed during 2007-08 was 6222080 m T otal water withdrawal by source in 2007-08
3
was 605057 m
(P.S. T he above figures are for three manufacturing units of T ata Motors, viz. Jamshedpur, Pune
and Lucknow only)
EN 9: Water sources significantly affected by w ater w ithdraw al
T here is no direct withdrawal of water from the source river Subranarekha at Jamshedpur. Raw water
is taken from M/s JUSCO (Jamshedpur Utility Services Company) of T ata Steel and treated in works
and town water filter plant. All water consumed at Pune manufacturing unit is sourced from State
Utility-MIDC (Maharashtra Industrial Development Corporation), which in turn draws water from
Pavana River. At the manufacturing unit in Lucknow, water is withdrawn from under ground water
sources. At this unit, there is extensive water recycling procedure. The initiatives include - Rain water
harvesting, digging of ponds and deep puncturing water replacement. In the latter, water iscollected
from roofs and around the manufacturing unit and funneled down bore holes to deep watersupplies
rather than simply allowing it to remain at the relative surface of the ground.
EN 10: Total recycling and reuse of water
Water Conservation Activities:

T hey comprise the following broad areas-
Water Management System
Intake Management
Maintenance of water distribution network
Quality of water (portability checks)
Optimization and leakage surveys
Water re-circulation systems
Water boosting systems
Clean production processes.
Rain water harvesting projects
48
EN 11: Location and size of land ow ned, leased or m anaged in biodiversity rich
habitats
While the facilities of T ata Motors are not in biodiversity rich areas, at Jamshedpur, the Dalma range,
which is a ‘Biodiversity rich area’ is located at an aerial distance of 10 km from the plant boundary.
At Pune, none of the manufacturing facilities are located near such protected areas. T ata Motors,
however, has taken immense care to develop the residential area adjoining Pimpri Worksinto a "bird
sanctuary".
EN12: Description of the m ajor im pacts on biodiversity
T here are no major impacts on bio-diversity by the Company’s operations.

EN 13: Habitats protected or restored
Major ecological impact on the habitat has been achieved over sustained efforts around the
manufacturing unit of Pune. T hese include:
1. T ransformation of landscape of hard basalt rock, fit for the growth of only wild shrubsinto
a Green belt consisting of 3, 00,000 trees.
2. Creation of two lakes which also serves as perennial source of water for T ree Plantations.
3. Pisciculture: A large variety of fish, including rohu, catla, mrigal, mahseer and silver carp
were introduced which are thriving in this natural environment.
4. Bird Sanctuary: T oday, these lakes and the surrounding area, attract a large number of
water birds, many of which have made the lakes their permanent home, creating the only
‘bird sanctuary’ right in the middle of the Pimpri - Chinchwad industrial area
EN 14: Strategies, current actions and future plans for managing im pacts on bio-
diversity
T he Ministry of Environment & Forest (MoEF), Government of India, has appointed Gram Vikas
Kendra, Jamshedpur (GVKJ) an NGO supported by T ata Motors, Jamshedpur, as the Regional
Resource Agency (RRA) for National Environmental Awareness Campaigns (NEAC) 2008 for
Jharkhand State for 15th consecutive year. National T heme for the year 2007 was Solid Waste
Management and for the year 2008 is Biodiversity Conservation.
GVKJ has been constantly involved in the dissemination of Environmental AwarenessProgrammes

and creating water Management network by making ponds, check dams and wells in the surrounding
areas of the company.
• Strategic initiatives to develop 150 hectares of land for irrigation through water shed
development project in FY 07-08
• T ree plantation drive by Gram Vikas Kendra, Jamshedpur. In FY 07-08 165000 trees were
planted
• Rain water harvesting pond constructed in 4 villages of Singhbhum (E) district namely
Kanikola, Jaskandih, Patherchakri and Narayanpur
• GVKJ has been appointed as Regional Resource Agency for the 15th consecutive year to co-
ordinate the National Environmental Awareness Campaign (NEAC)
• A good number of Forest Protection groups formed. to maintain the status quo of biodiversity
49
At the manufacturing unit in Lucknow, initiatives taken include:

• Fencing of lake area to protect the sensitive & nurtured plants from being destroyed by wild
animals
• Plantation of 10,000 plants to maintain green belt for healthy work ambience, natural
aesthetic & meeting statutory environmental compliance
• Mass plantation of Jatropha Curcas (Bio fuel plant) satisfying National economic interest and
Global environmental concerns
EN 15: Number of IUCN Red List species and national conservation list species
w ith habitats in areas affected by operations, by level of extinction risk
T here is no impact of activities/ operations on such sensitive areas.
EN 16 & EN 17: Greenhouse Gas Em issions
Based on Fuel consumption (FO, LDO, HSD & LPG) data at each location is considered for Direct
GHG calculation. Ref. Site: Calculation Tools for Corporate GHG Accounting - GHG Protocol
Initiative.htm belong to World Resources Institute and World Business Council for Sustainable
Development is being used for the computation of Direct GHG emission.
Electricity Consumption data at each works is considered for the Indirect GHG computationsCO2 co-
efficients has been arrived by a weighted average emission for generators supplying to the grid in the
states of Jharkhand.
Total Direct GHG emissions
2007-08
(CO 2, Thousand Tonnes)
Jamshedpur 233.10
Pune 280.26
Lucknow 23.87
Indirect GHG emissions

2007-08
(CO2,Thousand Tonnes)
Jamshedpur 39.78
Note: Assumptions used in the computation:
Direct Emission: To avoid complexity , GHG emissions due to electricity import f rom JOJOBERA Power Plant
generation has been categorised under the Direct Emission.
Indirect emissions due to outbound logistics and employ ee trav el (domestic and international) hav e not been
considered due to unav ailability of suf ficient data. Howev er, f or Jamshedpur Plant Township includingHospitals
(works & main) outside the works boundary has been considered under indirect GHG emissions.
Source: GHG Footprint Assessment Report f or Tata Motors Ltd. by M/s ERNST & Y OUNG, base year 2007-08.
EN 18: Initiatives to reduce GHG em issions

• Use of propane gas in place of Light Diesel Oil (LDO): Besides, propane gas has negligible
sulphur content as against 1.25% in case of existing LDO. T his makes Propane a more
environment friendly fuel compared to LDO due to almost nil SOx emissions. 2 bulletsof 100
Metric T onnes capacities each are under installation phase.
50
• Clean Development Mechanism (CDM): T aking opportunity of the CDM mechanism, Tata
Motors Ltd. initiated action for 20.85MW Wind Power Projects installed & commissioned at
Satara and Supa.
• Project Information Note (PIN) and Project Design Document (PDD) for 20.85MW Wind
Power Project was prepared with the help of MIT CON and submitted to Ministry of
Environment (MoEF) for Host Country Approval. MoEF, New Delhi has issued Host Country
Approval for the Project. T he Project was validated by M/s BVQI and registered by UNFCCC.
• In September 2007, successfully traded the CERs through e-bidding on the Chicago Climate
Exchange.
• Plantation of different varieties of trees in factory complex is done to sequester significant
carbon emission
• Replacement of conventional energy with cleaner energy alternatives/renewable energy
sources in plant activity and process.
EN 19: Use and emission of Ozone Depleting Substances (ODS)
Refrigerant CFC-12 is an “Ozone Depleting Substance (ODS)”, categorized under Group I of the
ODS (Regulation & Control) Rules, 2000, which is to be phased out by the year 2010. The Company
is actively working to achieve this well ahead of this target, by first targeting reduction in consumption
of CFC-12 for the existing refrigeration equipment. T he Company has an EMP in place to convert
refrigeration units using refrigerant CFC-12 to its environmentally friendly alternatives i.e. replaced
with units operating on R-22 / R-134a. Due to the above proactive actions, we have been successful
in containing the consumption of CFC-12 refrigerant for maintenance of existing equipment.
EN 20: NOx, SO2, and other significant Em issions by type
Suspended Particulate Matter (SPM)

3 2007-08
Limit : 500 microgram/m
Jamshedpur Manufacturing unit
Annual Average 280.00
Pune Manufacturing unit
Lucknow Manufacturing unit
Sulfur Dioxide (SO 2)
3 2007-08

Annual Av erage 7.21
Nitrogen all Oxides (NO)
3 2007-08
51

Respirable Particulate Matter (RPM)
3 2007-08
EN 21: Total w ater discharge by quality and destination
At Jamshedpur manufacturing unit, the treated effluents from the outlet of Effluent Treatment Plants
(ET P) constitute the only significant discharges to receiving water bodies. Kharkai river is the
receiving water body at Jamshedpur. At Pune manufacturing unit, all treated effluentsare discharged
into Pavana River. Treated effluents are periodically monitored for compliance with permissible limits
of State Pollution Control Board (mass/volume). All values are found to be in compliance. Surprise
checks are carried out by State Pollution Control Board, which are also found to be within the
permissible limits. At Lucknow manufacturing unit, all effluents generated from plant activity and
process are properly treated at our sophisticated ET P and finally discharged in the inland water
bodies that sustain aquatic fauna and flora.
T able: T otal Discharge to Water Body by type
Total Suspended Solids (TSS) 2007-08

(Load in Metric Tonnes)
Jamshedpur Manufacturing Unit 45.14
Pune Manufacturing Unit 52.74

Total Oil & Grease (TOG)

Bio-Chemical Oxygen Demand (BOD)

Chemical Oxygen Demand (COD)
52
EN 22: Total am ount of waste by type and destination
At Jamshedpur manufacturing unit:

• Paint sludge generated at Centralized Paint Shop is removed from the scrub water with a
‘Hydropac system’ for effective separation. The water is re-used in the paint booths along
with make up water. T his prevents the raw Paint Shop effluent from reaching the ET P
directly. Paint sludge is collected and sent to Industrial Incinerator.
• Press Filter is provided for removal of sludge from phosphating bath.
• Incinerator model LRD-250 of capacity 250 kg /hr has been installed to incinerate hazardous
waste without production of smoke or odour and to enable all hazards taken care of properly
and to provide a cleaner, safer and healthier environment. T he incineration system hasbeen
optimized to:
o Incinerate varying nature and quantities of wastes at any given time
o Remove all the acidic pollutants and particulate matter in the flue gas by effective
scrubbing with water/ caustic
o Following hazardous wastes are being incinerated: Paint sludge, Oil sludge / scum;
Oil soaked waste jute, hand gloves, aprons etc. & Phosphate sludge. Equipped with
Auto-loading system (ram loader), Paint stripping chamber (heat recovery), High
pressure jet wet venturi scrubber with mist eliminator, 30-m self-supported, rubber-
lined chimney, PLC controlled panel board and Flue gas analyzer
At Pune manufacturing unit:

All hazardous wastes are disposed through an Authorised Common Hazardous Waste T reatment
Storage and Disposal Facility (CHWT SDF) located 125 km away at T aloja. T he Operator of the
CHWT SDF picks up the generated waste in customised containers and moves the same by
dedicated trucks from our Facility to the final disposal point. T he wastes are disposed by various
pathways depending on their hazard characteristics. T hese disposal pathways include - direct
incineration, direct landfill and landfill after treatment.
At Lucknow manufacturing unit: All waste is collected properly and finally disposed off through
Ministry Of Environment and Forests/Uttar Pradesh Pollution Control Board approved
Recyclers/Vendor.
EN 23: Significant spills of chemicals, oils, and fuels in term s of total num ber and
total volume
T here were no significant spills of chemicals, oils or fuels in the reporting period. A systematic effort is
underway to quantify and define what could be termed as a “significant spill” based on the nature of
the hazardous chemical, quantity stored, extent of pipeline network and the age of installation.
EN 24: All production, transport, im port, or export of any w aste deem ed

“hazardous”
No hazardous wastes are being imported or exported. However, the Hazardous wastes generated in
various production processes like waste or used oil, non-ferrous metal i.e. waste copper dross/
plates, hazardous wastes (lead bearing type), batteries defined as "hazardous" in Schedule-4 of
Hazardous Wastes (Management & Handling) Amendment Rules 2003 are sold to the MoEF/CPCB
Registered Re-cyclers/ Re-refiners/ Re-processors only. T hese are being transported as per the
53
Hazardous Wastes (Management & Handling) Amendment Rules 2003 to ensure the following
statutory requirements:
• Endorsement of the Hazardous Waste quantity sold in authorised buyer's Pass Book as per
the authorized recycling capacity mentioned
• Label properly the Hazardous Waste containing consignment
• Fill up and sign the 6 coloured copies of MANIFEST (Form -9) and send to the concerned as
mentioned in the copies
• Hand over the T REM CARD (T ransport Emergency Card) to the T ransporter
EN 25: Im pacts of activities and operations on protected and sensitive areas
T here is no impact of activities/ operations on such sensitive areas.
EN 26: Initiatives to m itigate environmental im pacts of products and services
Prevention of Atmospheric Pollution:
Exhaust emission standards are becoming stricter in Japan, Europe, the U.S. and many other
countries and regions. India introduced its first standards in 1991, and these have become
progressively more stringent over the years. T ata Motors aims to respond quickly to develop new
models that comply with latest national standard for domestic product and international standard
relevant to countries where the products are exported.
Reducing CO2 Emissions and Increasing Fuel Efficiency:
CO2 emissions are considered to be a primary contributing factor to global warming, making their
management the most important challenge for T ata Motors. Of the total volume of CO2 emissions
associated with the life cycle of an automobile, from excavation of raw materials to recycling of end-
of-life vehicles, the largest portion occurs when the vehicle is on the road. Controlling these emissions
is one of the most significant technology challenges T ML is tackling today. While we are working in
developing fuel cells and other technologies of the future, we are also working to reduce CO2
emissions today’s vehicles through highly efficient engines and technology.
(a) Diesel Emphasis: As diesel is a more thermodynamically efficient fuel, our product lines
focus heavily on clean and modern diesel engines for automotive and stationary
applications.
(b) Multi-sector coverage: Tata Motors has been consistently developing and manufacturing
products that can contribute to CO2 reduction across all road transport segmentsand in
shifts between segments e.g. Bus Rapid T ransit System (BRT S).
(c) Provide safe affordable transportation of people and goods with least CO2 emissions,
exemplified by Nano and Ace
(d) Alternative fuel initiatives in the widest possible spectrum of products along two axes:
- Blend Axis: Progressively blending of petrol with ethanol, Biodiesel with diesel and
hydrogen with CNG.
- Hybridization Axis: Hybridization from mild hybrid to full electric vehicle to hydrogen fuel
cell vehicle.
54
(e) Minimize CO2 emissions by designing & developing the vehicles for Indian operating
conditions rather than directly adapting the vehicles from other marketse.g. Mumbai City
Fuel Efficiency Drive Cycle.
(f) Use of energy efficient air conditioning system like Scroll compressor, smaller heat
exchangers and high-efficiency condensers, low GWP refrigerants, etc. and reducing
refrigerant leakage and refrigerant recovery system during servicing .
Reducing Ozone Depletion:
CFC-12 having potential for ozone depletion is no longer used as refrigerant in AC system of our
product since 1996, HFC134a is used as a refrigerant
Reduced Use of Hazardous Substances:
T he European Union directive 2000/53/EC on end-of-life vehicles (ELVs), which wasproposed by the
European Commission and approved by the European Parliament, in principle banned the use of four
hazardous heavy metals (lead, mercury, cadmium and hexavalent chromium) in automobiles
(Cars/UV’s & Pick ups upto 3.5 GVW). T ML is in compliance with the EU directive on ELV’sfor export
vehicles to European Union.
T ML has successfully implemented Lead free wheel balance weights, lead free printing inks, lead free
bulbs, alternate designs/coatings for hard Cr plating, cadmium plating, Lead free coatings for fuel
tanks, Lead free carbon brushes for electrical motors etc.
Asbestos free brake pads & clutches have been introduced in many of our products. Water based
paints is being used instead of solvent based paints to avoid VOC emission.
Work is going on for reducing/elimination of hexavalent chromium for corrosion preventive coatings
and development / implementation of lead free bearing shells & bushes.
Reducing Noise Lev els:
T ML is not only meeting the national regulations but also aligned with European noise regulationsand
continuously working with international bodies to further improve noise regulations.
Participating in National Committees & Initiativ es Related to Env ironment:
Representatives of the Company are participating in the following national committees working for
improvement of environment throughout the country:
(a) Committee on “Air quality monitoring, emission inventory and source apportionment
studies for Indian cities” constituted by Central Pollution Control Board, Delhi.
(b) Standing Committee on Emission (SCOE) and Sub-committee on Fuel Efficiency Norms
of Union Ministry of Shipping, Road T ransport and Highways of India.
(c) “Expert Committee on vehicular pollution control” constituted by Central Pollution Control
Board, Delhi.
(d) Ministry of New & Renewable Energy, Government of India (GoI), is promoting and
assisting technology development for GHG reduction by way of increased usage of
Biodiesel. T ata Motors is engaged in this initiative of Government of India.
(e) Coordinated Automotive Research initiative of Department of Science & Technology of
Government of India, for developing the National Hybrid Propulsion Platform programme.
55
EN 27: Products sold that is reclaim able at the end of the products useful
Initiativ es Taken to Reclaim the Products Sold are as under:
(a) Recyclability and Recoverability Regulation at “End of Life” of vehicle:
a. Meeting European directive on “recyclability” and “hazardous substances”.

b. Providing technical information on dismantleability of the vehicle to the dismantler
for use at “End of life vehicles”.
(b) Extended drain period for axle and gearbox oils:

Vehicle T rials for further enhancement in the drain period of axle & gearbox oil are in progress.
EN 28: Incidents of and fines for non-com pliance with all applicable international
declarations / conventions / treaties, and national, sub-national, regional and local
regulations associated w ith environmental issues
T here is no incidence of any fine or non-compliance with respect to any national, sub-national,
regional and local regulations associated with environmental issues.
EN 29: Environm ental Impacts of transporting products and other goods and
m aterials used for the organisation’s operations and transporting m em bers of
w orkforce
Strict adherence of the norms applied to transport product, materials and employees. Vehicle
condition check, Pollution Under Control (PUC) checks are in place to avoid any significant
environmental impacts during transportation. Identified concerned agencies
(Vendors/suppliers/contractors/transporters) have specific environmental programmes or control
procedures to mitigate the same.
EN 30: Total environm ental expenditure
T otal environmental expenditure in 2007-08 on various environment development initiativesat our

manufacturing units was Rs. 169 millions.
56
Social Management Approach and

Performance Indicators
57
MANAGEMENT APPROACH
Employees are the driving force of our organisation. T he permanent employees’ strength of the
Company as on March 31, 2008 was 23, 230. Recruitments across all levels, extensive training and
skill enhancement activities were carried out especially at the new locations, in line with the
Company’s expansion and growth plans. Company’s cordial industrial relations were maintained at
all times and the Company entered into three wage settlement with its union. There has been
consistent improvement in productivity across all locations.
T he Company was awarded India’s Best Managed Company for 2007-08 in the automotive sector
by Business T oday based on a study conducted by Ernst and Young.
HR S T R AT E G I C P IL L A RS
Strategic Alignment Strategy Execution Leadership / Growth

Pillar Pillar & Development Pillar
S TR A TE G IC E LEM ENT S
En gage ment, Organisation al & Chan ge

Stru cture, Competenc ie s,
Perfo rman ce Mg mt., Capability Building ;
Ma npo we r Pla nning ,
Deployme nt Con seque nce M gmt. M ana ging &
Industria l Relations Ex pan ding Talen t Base
AC T IV I TI E S
Attract, Select a nd Commu nicate, En gage , Iden tify, Tra in / Bu siness
Vision Deplo y Re ward, Rec ognise, De velop
De velop, / Gro
Gro w, w
Rotate Strategy
Union -Mg t Re latio nsh ip
DE L I VE RA B L E S
Strate gy-Structure Match, En gagem ent, Superio r Orgn. Capability, Agility
Fa mily Size, Eff icien cy, Commun icate
Pe rf orma nce, , Reward,
Motiva tion , F utu re Leadership,
Ef fe ctiven ess, Rete ntioRe
n, cogn ise
Productive & Intern atio nal Min dset
cordial relationship
S Y ST E M S SY S T E M S S YS TEM S
F EE D B A C K
Core Valu es
Labour issues are managed by Employee relations department at each manufacturing location,
which forms a part of the human Resources Department. Within a manufacturing unit, there are
58
multiple factories and in each factory there is an officer in charge of safety. T hese officers in turn
identify and train Safety Stewards from amongst the workers. T he structure enables the effective
implementation of Poka-Yoke (mistake proofing).
Manpower planning department looks after recruitment, training and performance management at all
levels. T raining division at every location is in charge of identifying skill gaps and designing and
organising training programmes for both the blue-collared and the white-collared workers.
T he said structure is at every manufacturing location and the Plant Head is in charge for the unit.
Functional Heads function at the corporate level as well and report to the Managing Directoror to the
Executive Director.
A. LABOUR PRACTICES AND DECENT WORK
LA 1: Total Workforce by region
Total Workforce by Region

Category* Jamshedpur Lucknow Pune Uttaranchal Mumbai Small Car Total
Executive 144 34 315 8 166 4 671
Managerial 1092 398 3199 213 1171 51 6124
Supervisory 1060 100 1461 65 165 20 2871
Operatives 3894 626 8841 27 176 0 13564
*T he Management team comprises of Executive Grade which represents the senior leadership, the
T M grade which represents Middle Management as well as the various entry points based on
different level of education like graduation, post graduation etc. Operatives refer to workmen who
have requisite technical qualification employed for direct production activities
LA 2: Total rate of em ployee turnover
T ata Motors’ Annual Attrition Percentage for various grades is as follows:
Executive 3.4 %
Managerial 10.4 %
LA 3: Benefits provided to full-tim e em ployees that are not provided to temporary or

part-tim e em ployees
Employee Benefits
(i) Gratuity
T he Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible
employees. T he plan provides for a lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 to 30 dayssalary
payable for each completed year of service. Vesting occurs upon completion of five yearsof service.
T he Company makes annual contributions to gratuity fund established as trust. T he Company
59
accounts for the liability for gratuity benefits payable in future based on an independent actuarial
valuation.
(ii) Superannuation
T he Company has two superannuation plans, a defined benefit plan and a defined contribution plan.
An eligible employee on April 1, 1996 could elect to be a member of either plan. Employeeswho are
members of the defined benefit superannuation plan are entitled to benefits depending on the years
of service and salary drawn. T he monthly pension benefits after retirement range from 0.75% to 2%
of the annual basic salary for each year of service. T he Company accounts for the liability for
superannuation benefits payable in future under the plan based on an independent actuarial
valuation. With effect from April 1, 2003, this plan was amended and benefits earned by covered
employees have been protected as at March 31, 2003. Employees covered by this plan are
prospectively entitled to benefits computed on a basis that ensures that the annual cost of providing
the pension benefits would not exceed 15% of salary. T he Company maintainsa separate irrevocable
trust for employees covered and entitled to benefits. T he Company contributes up to 15% of the
eligible employees’ salary to the trust every year. The Company recognizes such contributionsasan
expense when incurred. T he Company has no further obligation beyond this contribution.
(iii) Bhavishya Kalyan Yojana (BKY): BKY is an unfunded defined benefit plan. The benefitsof the
plan accrue to an eligible employee at the time of death or permanent disablement, while in service,
either as a result of an injury or as certified by the Company’s Medical Board. T he monthlypayment
to dependents of the deceased / disabled employee under the plan equals 50% of the salarydrawn at
the time of death or accident or a specified amount, whichever is higher. The Company accountsfor
the liability for BKY benefits payable in future based on an independent actuarial valuation.
(iv) Post-retirement Medicare Scheme

Under this scheme, employees get medical benefits subject to certain limits of amount, periodsafter
retirement and types of benefits, depending on their grade and location at the time of retirement.
Employees separated from the Company as part of Early Separation Scheme, on medical groundsor
due to permanent disablement are also covered under the scheme. T he liability for post-retirement
medical scheme is based on an independent actuarial valuation.
(v) Provident Fund

T he eligible employees of the Company are entitled to receive benefits under the provident fund, a
defined contribution plan, in which both employees and the Company make monthly contributionsat a
specified percentage of the covered employees’ salary (currently 12% of employees’ salary). T he
contributions as specified under the law are paid to the provident fund and pension fund set up as
irrevocable trust by the Company or to respective Regional Provident Fund Commissioner and the
Central Provident Fund under the State Pension scheme. The Company is generally liable for annual
contributions and any shortfall in the fund assets based on the government specified minimum rates
of return or pension and recognises such contributions and shortfall, if any, as an expense in the year
incurred.
(vi) Compensated absences

T he Company provides for the encashment of leave or leave with pay subject to certain rules. The
employees are entitled to accumulate leave subject to certain limits, for future encashment. T he
liability is provided based on the number of days of unutilised leave at each balance sheet date on the
basis of an independent actuarial valuation.
Some other benefits advanced to the permanent employees are:

• Allowances like T ransport allowance, Education allowance, Sanitation allowance, Leave
travel allowance etc
• Annual Performance linked Payment
• Free Medical facility for family
• Company loans & advances
LA 4: Percentage of employees covered by collective bargaining agreem ent
60
T ata Motors has internal unions at its manufacturing units at Pune, Jamshedpur and Lucknow, which
enjoy majority with upto 98%-99% membership. These unions form representative bodies of the
workmen and negotiate with the management and settlements signed with these unionsrespectively
cover all permanent workmen present. At Uttarakhand, which is our new manufacturing unit location,
compensation of the operatives is decided on the basis of industry and region parity and in
consultation with Works Committee formed from time to time.
LA 5: M inim um notice period(s) regarding operational changes, including whether it

is specified in collective agreem ents
For Notice period regarding operational we follow the procedures mentioned in the Industrial Disputes
Act (21 days). T his Act was passed by the Central Government of India to make provisions for
investigation and settlement of industrial disputes and came into existence in April 1947.
LA 6: Formal Joint M anagem ent-Worker Health and Safety Comm ittees
T ata Motors has a Safety Health and Environment (SHE) policy, which encompasses all regulatory
norms along with International Labour Organisation recommendations. T ata Motorshasa processfor
reporting, recording, analysis and action on accidents and unsafe conditions. T he safety issuesare
addressed through a bipartite (management and union) arrangement as depicted in the table here
below.
Table 1: Various Health and Saf ety committees at plant location
T hese committees thus cover 100% of the workforce.
LA 7: Injury, accidents, work-related fatalities
Our practices are in line with the International Labour Organisation (ILO) “Model code of Safety
Regulations for Industrial establishment for the guidance of Government and Industry”. The decision
taken by the Governing body of the ILO conference held in 1948, the model code isnot an instrument
involving any binding obligations, and Government and industries are free to make such use of it as
they see fit in framing or in reviewing their own safety regulations. T he above guidelines are,
however, incorporated in the Factories Act 1948 and the Company strictly follows the rules and
accordingly the accident reporting or notice of accident or dangerous occurrence is recorded and
communicated to the concerned authorities (CIF) in FORM No. 17A.
LA 8: Risk-control program m es in place to assist w orkforce members, their families

or com m unity mem bers regarding serious diseases
T ata Motors provides curative and preventive health services to the employees, their families as
well as the community at large. It views its initiatives as a part of its social responsibility and asan
investment in improving social capital. Of these initiatives, some have been highlighted in the
61
following paragraphs. T he Company has a robust Medical Scheme which covers complete health
care of employees and their dependent family members.
T ata Motors is committed to take initiatives to combat the spread of HIV/AIDS. T ata Motorsisaware
of the social stigma that accompanies the contraction of HIV / AIDS and thus asa consciousdecision,
the Company does not make any discrimination, right from employment to retirement of employees.
• During pre-employment medical check-up, no HIV testing is done
• Employees having HIV /AIDS are allowed to work in our Factory until they are able to
continue normal duty
• Company’s Medical Benefit Scheme extends its’ benefits (reimbursement of medical
expenses) to employees who are suffering from HIV / AIDS. T hese benefits are at par
with any other medical benefits (It is not under exclusion as most of Insurance
Companies are having)
• T otal confidentiality is maintained about HIV +ve status of any employee
T a t a M o t ors st a rte d i t s AI D S aw a re n ess p ro gra m me w i t h t h e p rim a ry ai m t o cover all

e m pl o y e e s a n d t o m ake t h em a w are a b ou t t h e c a u ses, sy mp t o m s, m y t hs a n d
p re ve n t i o n o f H I V/ A I D S. C o mp a n y do c t o rs d e si g ne d a 30 m i n utes lecture module and
d e l iv e re d i t t o a ll e m p l oy e e s on t h e sh o p f lo o r, f ol l o w e d b y d i stribution of informative
b o okl e t o n A I D S . A l l e xp e n se s f o r t h e d e si gn i n g an d i mplementation of the programme
w e re b o rn e b y t he C o mp a n y .
In addition, T ata Motors supports a hospital in Jharkhand state and also runs Mobile Health Clinicsin
various villages adopted by the Company in Jamshedpur, Lucknow and Pune. Awareness
programmes are extensively organised on various health issues for the community members. The
curative and preventive health services were provided to over 92390 non-employee patientsin 2007-
2008.
Photo: Jamshedpur Hospital
Tata M otor s has also tr eated 8,000 lepr osy patients in last two decades thr ough the Nav Jagr at
M anav Samaj (NJM S) in Jamshedpur, Jhar khand. The ser vices extended have contributed towar ds
the reduction of leprosy pr evalence rate in Jamshedpur down fr om 22/1000 to 2.2/1000.
62
Photo: Mr . Jow ahar Ram Paswan, a beneficiar y of the NJMS pr ogr amme and now a full-time volunteer with
NJMS, w ith a patient at the ashr am
Rehabilitation work for leprosy-affected people is carried out by the Nav Jagrat Manav Samaj in
Jamshedpur. 8 ashrams situated around the city of Jamshedpur, which are self-settled coloniesof
people affected by leprosy, are supported with medical and institutional help for making their lives
comfortable and humane. More than 400 children of cured leprosy patients have been helped into
the formal stream of education. Also promoted are savings in banks by these people and adoption of
small business/vocations like rearing of livestock, poultry, cycle-rickshaw, cart and even growing
vegetables and selling them. A temporary hospitalization facility with 28 beds is available for the
treatment of seriously afflicted patients of leprosy. A 30-bedded Old Age Home run by NJMS catersto
the old and destitute.
LA 9: Health and Safety topics covered
Safety has been a concern for T ata Motors and the Company is taking steps to reduce the injuries
and accidents. All T ata Motors manufacturing units, including the new manufacturing unit at
Uttarakhand are certified under Occupational Health and Safety Standards 18801 (OHSAS 18001,
2007 version). OHSAS 18001 is an Occupation Health and Safety Assessment Series for health and
safety management systems. It is intended to help an organization to control occupational health and
safety risks. It was developed by the Government of India in response to widespread demand for a
recognized standard against which to be certified and assessed.
In addition, T ata Motors manufacturing unit at Pune has been certified Social Accountability 8000
compliant. Clause No. 3 of the SA 8000 pertains to occupational health and safety. A Zero Accident
Plan was launched in 2007-08, wherein area ownership was developed by teams comprising of
management and supervisory grade workers called Bay Owners. T he Bay Owners met twice a week
and conducted cross audits and organised awareness building programmes.
LA 10: Average hours of training per year per employee by employee category
Average Hours of T raining per year per employee

Executive 49
Managerial 52
Supervisory 41
Operatives 23
63
LA 11: Skill M anagem ent and Managing Career Endings
LA 12: Employees receiving regular performance and career developm ent reviews
All employees are evaluated based on performance and merit. T he Company has customized the
PMS for the requirements of different categories of employees-managerial, supervisors and
bargainable employees. In the PMS system, Individual performance plans are cascaded from the
Balance Score Card down to the smallest work unit, bringing business and customer focus to all
levels and teams. Monthly and mid-course half yearly reviews are held to ensure resources; targets
and training are in alignment with business needs. Employees have an opportunity to develop their
own view of their performance and discuss it with their supervisor. Formal evaluation ratings are
assigned at the end of the year. PMS instills a high performance culture in the organisation.
Competencies of successful executives are used as input to project the ‘Pen portrait’ of the ideal
incumbent. T o track the state of readiness and migration paths, the succession planning process
includes colour coding for potential successors. T his helps in arriving at the best fit.
T he process is reviewed periodically for status of successors and for process improvements. In case
a successor is not identified from the Department and T alent Pool, an internal advertisement is
released. If the position cannot be filled internally, a suitable candidate is selected through External
Advertisement.
All employees have the opportunity to advance their careers. T he Company administers career
progression through the PMS system for managerial employees. All employees have the opportunity
of moving to higher levels. T his is based on their personal preparation and desire to move, windows
of opportunity and a fair selection process, as under:
Overall PMS Approach (A) &PMS for TM

Employees (B)
Compensation
A Target Setting Review Process process and
overall review
Employee & Senior Employee & Senior Employee & Senior

Mid course
B Target setting at individual Mid year review
correction in
level andtraining need & feedback to
identified employee line with
business needs
Rewards, Compensation, Performance
Career planning & based Ratings Annual review
development and overall and and feedback
system feedback Normalisation
Senior Leadership and Senior Leadership & HR Employee & Senior
HR (Inputs to HR Plan)
Creating High Performance
64
High Potential Stars

Counseling, skill Challenging growth
→
ma tching, opportuniti es, career
Talent Mg mt
FTSS
Grooming planning, mentoring
Po tential
Solid citizens
Non Performers
Locate in ste ady
Dese lction
function, retain and
annually
evaluate potential
Performance →
Apart from regular progression, other methods used for Fast track career progression are depicted
below. T his helps the Company in building a resource for key areas and challenging assignments.
Career Progression Methods

@ Fast Tr ack S electio n Scheme is TM / EG Talent management,
ident ified as best practice and @ Fast track sel ec ti on
learned by other grou p companies
Engineer /
Internal officer
trainee schem e
Supervisors Master craftsman,
Mechatroni cs sc heme
Bargainable
to Sup sc heme
Bargainable
SVCVP scheme, Master
craftsm an, Mec hatronics
scheme
LA 13: Gender Diversity by Employee category
Gender Diversity by Employee categ ory
Male Female
Executive 658 13
Manager ial 5898 226
Super visor y 2730 141
Oper atives 13270 294
LA 14: Ratio of basic salary of men to w om en by em ployee category
T he Government of India has passed the Equal Remuneration act in 1976. T his is an Act to provide
for the payment of equal remuneration to men and women and for the prevention of discrimination, on
the ground of sex, against women in the matter of employment and for matters connected therewith
or incidental thereto. Even before the Act came into force, T ata Group has followed a non-
discrimination policy in employment and compensation. Remuneration is not based on gender, social
status or age and is linked to responsibility levels and performance.
65
B. HUMAN RIGHTS
T he Ethics team at T ata Motors is in charge of the human rights aspects in the Company. T he
structure of the Ethics Department is given below.
HR 2: Hum an Rights Screening for Suppliers and Contractors
T ata Motors Limited has Supplier and Dealer assessment process to take care of issues related to
social aspects before inducting them in organisation. All legal and regulatory requirementsneed to
be fulfilled before final selection into the Tata Motors fold. T he company periodically auditsthe job
contractors for adherence to labour laws and other statutory requirement like minimum wages, PF,
payment of gratuity etc. thereby ensuring prevention of violation of Human rights and employment
malpractices.
HR 3: Em ployee training on Policy and Procedures concerning Hum an Rights
66
T ata Motors adheres to the T ata Code of Conduct in its business. Tata Code of Conduct hascovered
all the Human Rights principles proclaimed in Universal Declaration of Human Rights. However, to
strengthen and support internationally proclaimed Human Rights within the businessof the Company,
it was decided to design exclusive policies on various aspects of Human Rights.
T he Policy on Human Rights is as under:
“T ata Motors believes in and respects Human Rights as enunciated by the International Labour
Organisation.
T ata Motors is committed to protect the Human Rights of its employees while dealing with them in all
the activities falling under the relationship of ‘Employer’ and ‘Employee’.
Decision to seek employment rests with the individual only, and it is completely voluntary. T ata
Motors does not and will not allow or encourage Compulsory or Forced Labour in any of itsprocesses
and practices.
T ata Motors respects the right of its eligible employees to organise for the purpose of Collective
Bargaining as well as their right to support or oppose the labour union recognised by T ata Motors.
T ata Motors respects the definition of Child Labour as mentioned in the guidelines of International
Labour Organisation. T ata Motors will not engage any person under the age of 18 years(legal age of
employment) for any operations or services (as presented in law) unless it is part of government
approved job training or apprenticeship programme.
T ata Motors honours the right of its employees to choose and decide the extent of their involvement
in Political Activities in their Personal T ime.
T ata Motors expects its Channel Partners and Contractors to adhere to business principlesconsistent
with its own.”
Each new joinee receives a copy of the T CoC. Furthermore, Excerpts from the Code isprominently
displayed at all locations and employees are well aware of its components and adhere to it in letter
as well as in spirit.
HR 4: Incidents of Discrim ination:
T he Company has a “Policy on Equal Opportunity and Non-Discrimination in Employment”, which

states:
“As part of its Recruitment Practices, T AT A MOT ORS is committed to provide Equal Opportunity to all
eligible applicants for employment without any discrimination against their gender, race, religion,
caste, colour, ancestry, marital status, nationality and disability. Opportunity for employment will be
solely based on eligibility and merit of the applicant. Career growth opportunitieswill be based entirely
on individual merit.”
T here is robust Ethics Counsellor Process to monitor implementation of T ata Code of Conduct. The
T ata Code of Conduct incorporates within its fold, the Human Rights principles, which thus get
monitored during the process of monitoring of the former. Employees, as well as outsiders, have the
liberty to raise concerns if any, related to the T ata Code of Conduct and the Human RightsPolicies
thus. Ethics Counsellors, who are present at all locations, address these concerns.
67
In relation to the process of managing the business ethics, it is of much avail to talkabout the Whistle
Blower Policy at T ata Motors. T his policy is an extension of the T ata Code of Conduct. The Whistle
Blower’s role is that of a reporting party with reliable information. The Policy also definesclearly the
composition and role of investigators or fact-finders and that of arriving at corrective or remedial
action in each given case. The Policy explicitly mentions pre-requisites to ensure that the identity of
the Whistle Blower is kept confidential. All employees of the Company are eligible to make Protected
Disclosures under the Policy.
For the year 2007-08, 95 of the 115 ethical concerns received were resolved the same year. T he
remaining 20 are being reviewed.
HR 5: Support to Freedom of Association and Collective Bargaining:
In keeping with the spirit of the Constitution of India wherein Right of Association is a Fundamental
Right, T ata Motors respects the right for association of its employees and has constructive
relationship with trade unions at all locations. Employees are encouraged to join the Trade Unions, as
it believes that most individual and collective grievances can be resolved through bipartite forums.
T his has led to good industrial relations. With its collaborative approach to company union, T ata
Motors has not faced legal action regarding anti-union practices.
Approximately 15000 of our permanent employees, who come under the unionised category, are
covered by collective bargaining agreements. T hese agreements include health and safety provisions
along with compensation structures in the form of a Memorandum of Understanding (MoU)between
the management and the representing Union as per the provisions of the applicable labour
legislations. T hese MoUs are signed every three years after negotiations between representing
committees of the union and the Management.
While the union membership may vary from each location, all eligible employees, irrespective of his
membership, enjoy the benefits as agreed in the MoU. T he table below indicates the percentage of
permanent bargainable employees who are members of the recognised union at respective locations.
While the existing grievance handling process takes care of issues of temporary employees, the
recognised Unions also take up their issues.
Pr ocedur es involving infor mation, consultation and negotiation with employees
Interaction Level Frequency
Business Unit Level Annual

M anaging Dir ector , Executive Dir ector (Business Unit
Head)
Plant Head M onthly
Senior V P/ Direct Repor ts Per iodically
Divisional Level
M onthly
GM/ Dir ect Repor ts
Factory/Department Level M onthly
Divisional Head/ Factor y Head/ HR Weekly
Centr e of Excellence owners / HRO Need Based one-to-one inter action
Issues not resolv ed in lower levels are appropriately escalated to higher lev els.
HR 6: Contribution to Elimination of Child Labour
68
T ata Motors upholds the T ata tradition of not employing children in any of itsCompanies. It isbound
by the statutory legislation (Factories Act, 1948) and proper records are maintained in this regard.
T he Certified Standing Orders of the Company expressly state that the age of an employee at the
time of recruitment should be 18 years or more.
Moreover, the Company is actively involved in improving both the quality and the accessto education
in various regions. Infrastructural support for education helps thousands of children to accessprimary
and secondary education. Eligible poor students especially from tribal families are given financial
assistance. 1800 students through 33 schools and institutions of social and cultural development are
supported through the Shiksha Prasar Kendra, a T ata Motors society. Quality of education is
improved through special training programs for teachers and students. Vocational guidance programs
are organized so as to help the students in career planning.
Easy access and financial support for education helps in preventing children undertaking child labour.
HR 7: Contribution to Elimination of Forced and Compulsory Labour
T ata Motors strictly adheres to the laws of the land with regard to forced and compulsory labour,
which are prohibited under various acts and statutes. T o serve as an audit from time to time, the
Company has implemented Social Accountability standards through SA8000 which audits the
company and its supply chain for forced/compulsory labour, possibility of child labour, minimum
wages, payment of wages, etc.
In addition, the T ata Code of Conduct, referred to earlier, also has clauses on these two principles.
T he disciplinary action process at Tata Motors is as per the applicable laws like Model Standing
Orders / Certified Standing Orders that allow the process of natural justice as per statute.
Description of appeal practices
P ROCES S FOR HANDLING

REP RES ENTATI ON & AP PEALS MADE BY
EMPLOYEES & EX EMPLYEES
RE CE IPT OF REP RE SE NTA TIONS & A PP EA LS

THROUGH HE AD OFFICE / S R.V P (JSR & LKO) 'S
FORWARDING THE SA ME TO A PP ROP RIATE AGE NCY

HRD & C, P & IR
E XAMINA TION & VE RFICA TION OF REP RE SE NTA TION /

AP PE ALS
P RE PA RA TION OF DETAILE D REP ORT &

A PP ROP RIA TE RE PLY , THE S AME TO B E EXAMINE D
BY HO / SR.V P(JS R & LKO)'S OFFICE
MA ILED TO RE SP ECTIVE E MP LOY EE S &

E XEMPLOYE ES A FTER NECES SA RY CO RRE CTIONS /
MODIFICATION
Grievance handling Mechanism
69
EM PLOYE ES
BARGAI NABLE NON BARGAINABLE
TAL K TALK TALK TALK TALK WRITE WRI TE
UNION LI STENI NG E THI CS HOTLI NE

RE PRESE NTATI VE POS T COUNSE LLOR
S UP ERVI SOR / CX
COORDINATI NG
OW NER / DI V HEAD
AUTHORITY
HR OFFI CE RS /
M ANAGER
SR V I CE PRES IDENT
CONCERNED AGENCY / DIV IS ION
HR 9: Rights of Indigenous People:
Government of India considers all Indians to be indigenous. T hus, this indicator is not quite
applicable while reporting only on the operations of T ata Motors within India.
C. SOCIETY
T he Company has a Corporate Social Responsibility structure, which involves the top management
as well the employees and is driven by the objective of “improving the quality of life of people”. The
structure catering to the needs of the society, which the Company treats as the very purpose of its
business and not just another stakeholder, is as under:
Institutionalizing CSR
Donations Committee Two pillars of the CSR CSR Committee

Activities w ithin
Suppor t institutions C Review, monitor and guide
thr ough donations on the CSR wor k under taken
basis of need and mer it LOCTIONAL CSR acr oss all locations
Jamshed Pune Lucknow Pantnagar Small Car Non Plant

pur
SO 1: M anaging Impacts on Com m unities
70
T he Company has constantly strived to mitigate the environment as well associal impactsof itsproducts
and operations. T hrough its various initiatives, the Company has been able to preserve and protect the
environment and has also contributed to integrated social development.
T hrough its CSR activities, the Company aims to upgrade the quality of life of the communities
around the Company’s areas of operations. Besides, T ata Motors also encourages employees to
devote time to underprivileged sections through Company projects and non-governmental
organisations to share skills and expertise and assist the needy. T his is in line with the Company’s
broader goal of practising and promoting self –sustaining processes and welfare activitiesfor social
and economic development and environmental protection. In a structured approach, the Company’s
CSR Committee guides and reviews the CSR activities. In all its CSR initiatives, the Company
recognises and respects diverse community needs by undertaking specific and need-based initiatives
across locations, while deploying global standards and policies.
A summary of the impact created by several community development initiativesin the year 2007-08 is
detailed in the Annual CSR Report, which can be viewed at the Company’s website at
http://www.tatamotors.com/our_world/we_care.php
SO 2: Analysing Risks related to Corruption
All employees, from all ranks and grades, have signed the T ata Code of Conduct, which hasa specific
clause pertaining to bribery and corruption. Clause 5 of the T ata Code of Conduct enunciatesthe
group’s approach towards “Gifts and Donations”. It reads “A T ata Company and its employeesshall
neither receive nor offer or make, directly or indirectly, any illegal payments, remuneration, gifts,
donations or comparable benefits which are intended to or perceived to obtain business or
competitive favours for the conduct of its business. However, a T ata Company and its employees
may accept and offer nominal gifts which are customarily given and are of commemorative nature for
special events”.
T he Company, moreover, has drafted a Policy on Gifts, which is reproduced as under:
Gifts and business courtesies may be extended at Tata Motors’ expense, and accepted only if they
meet all of the following criteria:
T hey are not intended to obtain business or competitive favours;

T hey are not in contravention of applicable law; and
When publicly disclosed, will not be seen as a bribe or illegal payment.
Gifts, received or offered, will be restricted to items of nominal value, like calendars and diaries,
bouquets, sweets. Business courtesies received or offered should only be meals in the course of a
business meeting.
Any other gifts or business courtesies should be politely declined. Any gifts or business courtesies,
which appear to be given as a bribe, should be firmly rejected and reported to the employee’s
superior.”
Further, the Company also has a Policy on Bribery and Corruption, which states:
“T ata Motors is committed to its core value of Integrity. T owards this commitment, T ata Motorswill
ensure that neither the Organisation nor its Employees receive or offer any direct or indirect illegal
payments, remuneration, benefits or favours to obtain business or for the conduct of business. Any
violation will be treated as a punishable offence.”
71
All complaints are addressed by the Ethics Counsellor Process, detailed earlier.
SO 3: Training of Em ployees on Anti-Corruption Policies and procedures
As stated earlier, the T CoC training covers all employees and it has within it the clauses on anti-
corruption and bribery. Furthermore, the policies, including the Policy on Gifts and Policy on Bribery
and Corruption are prominently displayed at all locations and all employees are made aware on the
process to redress grievances, if any.
SO 6: Contributions and Participation in Political Parties
T ata Motors maintains its neutral stance in terms of politics and has no political alignmentsand/or
inclinations. T hus, there are no financial or non-monetary grants made to any political party.
SO 7: Legal Actions for Anti-com petitive, Anti-trust and Monopoly Practices
No such legal actions have been filed.
T ata Motors products and services have their own merit and no misleading statements are made
about competitor’s products and services. Any information regarding the competitors is collected
through legally permitted sources and means and is made only in the normal course of business.
T he Company does not engage in activities which generate or support the formation of monopolies,
dominant market positions, cartels and similar unfair trade practices.
D. PRODUCT RESPONSIBILITY
PR 1: Custom er Health and Safety
T ata Motors has been putting in a lot of effort to improve the safety (active and passive). T he
Company always meets all the safety regulations of concerned markets and goes beyond the safety
regulations to provide better safety products – example being ACE has been designed to meet more
stringent crash safety norms that are not applicable to that class of products. T here has been a
continuous upgradation of the product safety with new technologies being brought in – Tata Motorsis
the first Indian manufacturer to develop and introduce airbags in our vehicles. T he Company isstill
the only manufacturer in this country to have a crash test facility.
PR 2: Total num ber of incidents of non-com pliance w ith regulations concerning

health and safety im pacts of products and services
Our record of compliance with regulatory requirements pertaining to emissions, safety, product
labelling, competition, advertising and other clauses of the Central Motor Vehicle Ruleshave always
been proactive and exemplary. T he Company has never received any sanctions for violation of
regulatory norms.
PR 3 & PR 4: Product and Service Labelling
Product Development is instituted and structured as a New Product Introduction (NPI) business
process to integrate various functions of the company. NPI is aimed at creating a product that meets
customer expectations in terms of quality and value.
72
New Product Introduction
Engineering Research Centre (Our Research and Development Centre) is adequately equipped with
state of the art facilities to address specifically the issues of customer health and safety. It has
facilities like Crash T est facility for safety and the Hemi Anechoic chamber for NVH and engine
emission testing. T hese facilities enable development of products meeting safety and environmental
regulations.
Examples of special features used in our products for preserving customer health and safety include
Anti-skid braking systems; Air Bags; Ergonomically designed seating systems with lumbar support;
Euro III complaint engines etc; Non-Chloro Fluro Carbons based vehicle air conditioners.
T ata Motors obtains test certificates for vehicle worthiness and other safety related issues like
emission, brakes, noise etc. before the product is marketed through government authorised agencies.
T ata Motors also obtain Homologation certificates for export markets from authorized test agencies.
Labelling Identification of parts that need to be labelled as per Annex II of EEC directives2000/53/EC
amended by 2002/525/EC. T his directive bans the use of hazardous heavy metals – Lead, Hex-
Chromium, Mercury and Cadmium.
T he Company issues certificate of compliance to the above directives based on the declarations
obtained by SQIG from the suppliers.
PR 6: Adherence to Regulations regarding Marketing Comm unications
T ata Motors has instituted a Policy on Advertising which states:
“ T ata Motors honours Advertising as a tool for Healthy Competition within the market. T ata Motors
will ensure that the promotion of its products and services is based only on justifiable or proven facts.
T ata Motors shall not make any misleading statements or use any competitive information for unfair
trade practices.”
T he Company has embibed the essence of the policy in all its processes pertaining to marketing
communication and no false claims and/or unfair means are used while promoting a product/service.
73
PR 8: Com plaints regarding violation of Consum er Privacy
No such complaints have been made. T he Company respects consumer privacy and has in fact a
written policy stating the same. T he Policy on Consumer Privacy is given as under:
“T ata Motors values long term relationship with its customers based on the foundation of T rust,
Integrity and Confidence.
While delivering excellent quality products and services, T ata Motors is committed to protect
Consumer Privacy in managing information and data furnished by its customers for official or
personal purposes. Such data will not be divulged to or shared with other individuals/institutions
without the prior written permission from customers.
T ata Motors is committed to designing processes and practices that ensure continued trust of its
customers.”
74

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TATA M OTORS LIMITED

CORPORATE SUSTAINABILITY REPORT

GRI CONTENT INDEX

Section Aspect Indicator Page #

1. Profile Statement f rom MD 1.1 8-9

Description of key issues, risks and opportunities 1.2 21-23

2. Organisational Name of the Organisation 2.1 13

Operational Structure 2.3 13

Countries with major operations 2.5 14

Nature of ownership and legal f orm 2.6 14

Markets served 2.7 14

Scale of the Organisation 2.8 14

Signif icant changes in size, structure or ownership 2.9 15

Awards Receiv ed 2.10 15-18

3. Report Reporting Period 3.1 20

Reporting cycle 3.3 20

Contact persons 3.4 20

Report content 3.5 2-6

Boundary of the report 3.6 23

Limitations of the Report 3.7 23

Basis f or reporting on subsidiaries and associate 3.8 23

Data Measurement Techniques 3.9 23

Signif icant changes from previous reporting periods 3.11 23

GRI Content Index 3.12 2-6

Policy and current practices for seeking external 3.13 23

4. Governance, Governance structure and Board composition 4.1 25-26

Independent and/or non-executiv e members 4.3 25-26

Mechanism for shareholders and employ ees to provide 4.4 27-28

Linkage between compensation and perf ormance of the 4.5 28-29

Process to av oid conf licts of interest 4.6 29

Process to determine expertise of Board members 4.7 29

Ov erseeing of risks and opportunities by gov ernance 4.9 27

Ev aluating the perf ormance of highest gov erning body 4.10 30

Approach to risk management in operational planning 4.11 30-31

Charters, initiativ es and principles that the organization 4.12 32

Membership in associations and national/international 4.13 32

Stakeholder engagement 4.14 32

Identif ication and selection of stakeholders 4.15 21

Approach to stakeholder engagement 4.16 32

5, Economic Economic perf ormance EC1 36-40

Range of ratios of standard entry lev el wage compared EC5 41

Policy , practices and proportion of spending on locally- EC6 41

Procedure f or local hiring EC7 41

Indirect economic impacts EC9 41-42

6. Environmental Materials used EN1 45

Direct energy consumption EN3 46

Indirect Energy Consumption EN4 46

Energy sav ed EN5 46-47

Initiativ es to reduce indirect energy consumptions EN7 47-48

Total water use EN8 48

Water sources significantly af f ected EN9 48

Total recy cling and reuse of water EN10 48

Location and size of land owned, leased or managed in EN11 48

Impacts of activ ities, products and serv ices on EN12 48

Habitats protected or restored EN13 49

Strategies, current actions and plans for managing EN14 49

Number of IUCN red list species and national EN15 49

Total direct Greenhouse Gas emissions EN16 50

Total indirect Greenhouse Gas emissions EN17 50

Initiativ es to reduce Greenhouse Gas emissions EN18 50

Emissions of ozone-depleting substances EN19 51

NO, SO and other signif icant air emissions EN20 51