DECLARATION OF BUSINESS DEALINGS BY EMPLOYEES - PROCESS
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1 DECLARATION OF BUSINESS DEALINGS BY EMPLOYEES - PROCESS Policy 1. As a policy, the Company would prefer to avoid having business dealings with any organization owned or partowned by a close relative of any Tata Power employee and especially those business with which the relative of a senior Tata Power officer is involved. 2. In those cases where such dealings already exist or when they are totally unavoidable, the employee concerned must obtain the prior written permission of the Chairman/Managing Director, as per the Internal Guideline (copy enclosed). However, the business in which the relative of any employee is involved, Tata Power shall not: i) Give more than 33% of the share of business for that component/aggregate/ service. ii) Procure more than 50% of the total output of products or services from such a supplier/vendor. 3. Copy of MD s Circular dated enclosed. Process for Implementation of policy In order to ensure strict compliance to the guidelines, the following procedure will be followed:- (1) Employees covered All Officers in M6b & above (2) Procedure for compliance (2 stages) Stage I : Declarations to be filed clearly stating whether the Officer or his relatives have business with Tata Power or not. Form for filing such declarations enclosed. Stage II : Officers who declare existence of business dealings to furnish further information related to all aspects covered in the guidelines such as share of business, turnover, employees own interest, etc. Form for furnishing such information enclosed. (3) Declarations to be submitted to (4) Frequency for declaration Human Resources-Corporate, Corporate Center B, 4 th floor, Carnac Annually
2 : 2 : (5) Process initiation (1) In the first week of April, VP-HR to intimate GMs & above to arrange for all Officers in their area to submit their declaration forms and forward to HR- Corporate within 15 days from the date of request. (2) Any changes after the declaration has been submitted by the Officer, the concerned Officer to promptly inform HR-Corporate by submitting a fresh Declaration form. (3) The new employees will submit the declaration form on the day of joining to HR-Corporate. (6) Declaration forms to be maintained by The Process owner Implementation by Report Human Resources-Corporate. The forms will be maintained employee number-wise for easy retrieval. Mr. R C Sequeira, Vice President-Human Resources Ms.Bina Umesh Raj / Mr. P V Krishnamurthy will coordinate the implementation of the process under the guidance of Mr. S B Hindurao, AGM-HR. HR-Corp. to send a report to Mr. B J Shroff, Ethics Counsellor, with details of employees whose relatives have business dealings with Tata Power, in 1 st week of May
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5 Mr. R C Sequeira Vice President-Human Resources TATA POWER BUSINESS DECLARATION (STAGE I) Date: PART I (FOR EMPLOYEES WHOSE RELATIVES HAVE NO BUSINESS DEALINGS WITH TATA POWER) I, do hereby declare that neither I am nor my relatives* are directly or indirectly interested or concerned in any business dealing of any supplier/ contractor/ dealer of Tata Power, either as a partner if the supplier/ contractor / dealer is a firm, or as a director of a member, if the supplier/ contractor/dealer is a Private Limited Company, or as director or a member holding 2% or more subscribed share capital if the supplier/ contractor/ dealer is a Public Limited Company, either for sale or purchase of goods or for rendering of any services to Tata Power. If, in the future, I or any of my relatives become concerned or interested in any business dealing of any supplier/ contractor/ dealer, either existing or to be engaged in the future, in any of the capacities mentioned above, I shall promptly keep Tata Power informed about the same. PART II (FOR EMPLOYEES WHOSE RELATIVES HAVE BUSINESS DEALINGS WITH TATA POWER) I, do hereby declare that I and/ or my relatives* am /are concerned or interested in business dealing with Tata Power in the manner set out below: Name of the Relative Relative s Relationship with the employee Name & Address of the Supplier/ Contractor/ Dealer Nature of Business with Tata Power & Dept. dealing with Nature of Interest of relative (Director/ Proprietor/ Partner/ member) Nature of Interest of employee (Director/ Partner/member in the relative s Business) I undertake not to involve myself in any way with the said business of the relative and to avoid influencing in any manner the decision- making process of Tata Power pertaining to the said business. It is understood that this declaration is truthfully made and if it is found that it is falsely or incorrectly made by me knowingly, it would be constituting a misconduct on my part giving a right to Tata Power to take such disciplinary action against me as it may consider fit and proper. Name: Grade: Employee No: Divn/Dept: Tel No. (o): (Signature of the Employee) NOTE: (i) PART I is to be filled in if there are no relatives having direct or indirect business dealings with Tata Power. (ii) PART II is to be filled in if there are relatives having direct or indirect business dealings with Tata Power. (iii) *Relatives as mentioned above include spouse of the employee and: 1. Employee s/spouse s parents (including step-father / mother), grandparents, parent s brothers/ sisters and their children. 2. Employee s/spouse s brothers/sisters (including step-brothers/sisters), their spouses and their children. 3. Employee s/spouse s children (including step- children), their spouses and the latter s children.
6 TATA POWER BUSINESS DECLARATION (STAGE II) 1 Employee No. 2 Name of the Employee : 3 Department : 4 Division : 5 Names and addresses of the Companies / organizations supplying to Tata Power in which the employee s relations are Directors / Partners / Proprietors. 6 Names of the Directors/Partners/Proprietors of the supplying Companies/ organizations. 7 Relationship of the employees with one or more of the Directors / Partners / Proprietors of the supplying Companies / organizations. 8 * Details of interest of the employee in the business of the supplier(s) referred above. 9 ** Total turnover (Rs. Lakhs) of the supplier(s) One year prior to current year Two years prior to current year Three years prior to current year Page 1 of 2
7 BUSINESS DECLARATION (STAGE II) 10 Nature of business done with Tata Power during the current year Items supplied : Value of Purchase Orders : Purchase agencies within Tata Power : I undertake not to involve myself in any way with the business and to avoid influencing the decision making process in Tata Power pertaining to the said business. It is understood that if it is established that this declaration has been made by me knowing it to be false, the making of such a declaration would constitute a misconduct on my part giving a right to the Company to take such disciplinary action against me as it may consider fit and proper. Date : Signature of the Employee * Interest : Ownership of shares of the Company Ownership of bonds of the Company Loans given by the employee to the Company Percentage of profits shared Capital investments Any other ** If the form is being completed during the turnover should be indicated for. Use additional sheets if required. Page 2 of 2
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