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Is there evidence of effective governance at the automobiles company in regard to 1) accurate

financial reports and controls, 2) a critical appraisal of strategic action plans, 3) evaluation of the
strategic leadership skills, and 4) executive compensation?

In simple terms, Corporate Governance is a system by which corporate entities are

directed and controlled. It potentially covers the entire gamut of activities having direct or

indirect influence on the financial health of the corporate entities. The concept of governance

covers a broad range of fields from economics and management to law and accounting, and thus

varies depending on the particular focus.

In Tata motors limited, Corporate Governance is observed upon a rich legacy of

fair, ethical and transparent governance practices, many of which were in place even

before they were mandated by adopting the highest standards of professionalism, honesty,

integrity and ethical behavior. As a global organization, the Corporate Governance

practices followed by the Company and its subsidiaries are compatible with international

standards and best practices. Through the Governance mechanism in the Company, the

Board along with its Committees undertakes its fiduciary responsibilities to all its

stakeholders by ensuring transparency, fair-play and independence in its decision making.

The Corporate Governance philosophy is further strengthened with the adherence

to the Tata Business Excellence Model as a means to drive excellence and the Balanced

Scorecard methodology for tracking progress on long term strategic objectives. The Tata

Code of Conduct, which articulates the values, ethics and business principles, serves as a

guide to the Company, its directors and employees is also supplemented with an

appropriate mechanism to report any concerns pertaining to non-adherence to the said

Code. The Company is in full compliance with the requirements of Corporate Governance
under the Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015 ("the SEBI Listing Regulations"). The Company's

Depositary Programme is listed on the New York Stock Exchange and the Company also

complies with US regulations as applicable to Foreign Private Issuers (non -US companies

listed on the US Exchange) which cast upon the Board of Directors and the Audit

Committee onerous responsibilities to improve the Company's operating efficiencies.

Risk management and the internal control process focus areas continue to meet the

progressive governance standards.

The Company has adopted Governance Guidelines on Board Effectiveness based

on current and emerging best practices from both within and outside the Tata Group of

companies. These guidelines incorporate and go beyond corporate governance

requirements prescribed under the Companies Act, 2013 ("Act") and the SEBI Listing


In TATA the corporate governance is managed very well with certain rules which are

given below and there are some people assigned to address the issue, so overall the corporate

governance in TATA is in very sound position as their disclosures during annual report or

quarterly report and very clear to the share-holders and investors also, provided their codes of

ethics are also very strong. Any employee/business associate who becomes aware of a suspected

wrongful conduct is encouraged to send his/her observations/concrete facts to the Direct Touch

Team either through phone or written communication complete with related evidence (to the

extent possible) without fear of reprisal or retaliation of any kind. The information on suspected
wrongful conduct is such information which the Employees/business associates in good faith,

believe and evidences.