Business Responsibility Report Analysis – Mahindra & Mahindra

Presented By –Soumil Popat (03)Tosha Desai (07)Alzena Pinto (13)Vaibhav Karia (19)Simran Jain (74)Priyanka More (105)

BUSINESS RESPONSIBILITY REPORT

• Organisation's are a vital part of society.

• Responsible for development of social setup

• Initiatives to develop the society

• National Voluntary Guidelines on social, Environmental and Economic Responsibilities.

• Mandatory for top 500 companies of BSE and NSE.

• The key principles which are required to be reported by the entities include the areas such as environment, social, governance and stakeholder's relationships.

• Given the option to publish it on websites as a part of Green Initiative.

Sec A : GENERAL INFORMATION ABOUT COMPANY

1. Corporate Identity Number (CIN) of the Company: L65990MH1945PLC004558

2. Name of the Company: Mahindra & Mahindra Limited

3. Registered address: Gateway Building, Apollo Bunder, Mumbai - 400 001

4. Website: www.mahindra.com

5. E-mail id: investors@mahindra.com

6. Financial Year reported: 01.04.2014 to 31.03.2015

7. Sector(s) that the Company is engaged in (industrial activity code-wise)

8. List three key products/services that the Company manufactures/provides (as in balance sheet):

i. Passenger Vehicles (Utility Vehicles, Multi Purpose Vehicles and Cars)

ii. Commercial Vehicles

iii. Tractors

9. Total number of locations where business activity is undertaken by the Company:

i. Number of International Locations: 1ii. Number of National Locations: 46

10. Markets served by the Company Local/State/National/ International:

All

SECTION B: FINANCIAL DETAILS OF THE COMPANY

1. Paid up Capital: 295.70 crores

2. Total Turnover: 41,982.05 crores

3. Total profit after taxes: 3,321.11 crores

4. Total Spending on CSR (@2% of PBT): 83.24 crores

5. List of activities in which expenditure in 4 above has been incurred: a. Education

b. Healthc. Environmental Sustainabilityd. Rural Development

(ALL FIGURES ARE IN INR)

SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company/ Companies?

Yes. The Company has 113 Subsidiary Companies as on 31st March, 2015.

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? If yes, then indicate the number of such Subsidiary Company(s)

Yes. Every year the Company releases a Sustainability Report as per the GRI framework which is externally assured. The Company has a Code of Conduct for Employees and Directors as well as a set of Governance Policies. This Code is followed by the Subsidiary Companies also with modifications depending on the business requirement of the entity.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]

The Company has long lasting relationships with its suppliers & dealers. A majority of supplier base has been already covered by conducting awareness sessions on ‘sustainability’. Similarly majority of dealers are brought under Mahindra Dealers’ Excellency Programme (MDEP). From F14 a special drive for awareness to suppliers has been started and we have covered 250 suppliers. A road map for covering 100% suppliers in 3 years period is put in place and actions are already underway.

SECTION D: BR INFORMATION

GOVERNANCE REALTED TO BR

• Meeting of CSR committee is held every 6 months to access the BR performance.

• Other supporting councils meet every 3 months.

• Report is published annually.

• http://www.mahindra.com/How-We-Help/Environment/Sustainability

• The hyper link is mentioned where the report is submitted

PRINCIPLE -WISE PERFORMANCE

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

• Complaints can be filed anywhere, anyhow.

• Turn around Time (TAT) for complaints is 3-5 days.

• Does not only apply on the company but also covers dealings with all the stakeholders.

• 14 complaints received in the past year, all have been resolved.

• The case of the ex-employee

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

• Vehicles:1. Safety measures

2. Weight Reduction which leads to lesser fuel consumption.

• Sustainable Sourcing:1. Vendor Parks:

i. Leads to closely knit cluster of resources and suppliers

ii. Improves logistics

iii. Efficient use of resources.

iv. Reduce fuel consumption & emissions.

• Green Supply Chain Management:1. Practiced throughout the company

2. Laid out to suppliers

3. Panchatantra Sustainability Awards

Principle 3: Businesses should promote the wellbeing of all employees

• Total number of employees: 38,046

• Total number of employees hired on temporary/contractual/casual basis: 18,210

(including Apprentices & Trainees 2000)

• Number of permanent women employees: 576

• Number of permanent employees with disabilities: 49

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalized.

1) Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized stakeholders?

• The Company has designed products specifically for improving the livelihood and encouraging entrepreneurship amongst rural and semi-urban persons through low cost products.

• Example: Tractor manufacturing to ‘Farm Tech Prosperity’

Principle 5: Businesses should respect and promote human rights

1) Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others?

• The Business Responsibility Policy covers the aspects on Human Rights for the Company.

• Human Rights issues are a part of the supplier selection process and are also included in the contracts drawn up with them.

2 ) How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

• Four step Grievance Redressal Machinery• Employee Satisfaction Survey• No process to separately maintain records for grievances related to

Human Right• Reach-out mailbox for all employees of Automotive and Farm Sectors

Principle 6: Business should respect, protect, and make efforts to restore the environment1) Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/Suppliers/Contractors/NGO’s /others ?• Company has various policies related to environmental protection.

• The Green Supply Chain Management Policy

• Subsidiaries/Joint Ventures have their own policies

2) Does the Company have strategies/initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc.• Yes, http://www.mahindra.com/How-We-Help/Environment/Sustainability.

• Strategies and initiatives are also aligned to the National Action Plan on Climate Change

3) Does the Company identify and assess potential environmental risks? Y/N• Yes, the Company has a mechanism to identify and assess potential

environmental risks across all locations.

4) Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is filed?

• Yes

• The name of the CDM – PoA 9731: Energy Efficiency through Micro irrigation system – India.

• Aims at encouraging energy efficiency through installation of efficient irrigation system

5) Has the Company undertaken any other initiatives on –clean technology, energy efficiency, renewable energy, etc? Y/N. If yes, please give hyperlink for web page etc.• Yes, http://www.mahindra.com/How-We-Help/Environment/Sustainability.

6) Are the Emissions/Waste generated by the Company within the permissible limits given by CPCB/SPCB for the financial year being reported?

• Yes

7) Number of show cause/legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction)as on end of Financial Year.

• NIL

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner• Should be a member of any trade, commerce or association.

- ASSOCHAM

- BCCI

- EFI

- CII

- NHRDN

- SIAM

- TERI

- TMA

Principle 8: Businesses should support inclusive growth and equitable development

The redefined ‘Core Purpose’ of the Company is to “challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world, to enable them to RISE”.

The top 10 CSR programs which support inclusive growth and equitable development:• Mahindra Pride School • Project Nanhi Kali • Lifeline Express• Mahindra Hariyali• Swachh Bharat Swachh Vidyalaya• Integrated Rural Development Program• Arogya Sarthi/Project Bandhan • Project Prayaas • Road Safety• Thalassemia Support program

Principle 9 : Businesses should engage with and provide value to their customers and consumers in a responsible manner1. What percentage of customer complaints/consumer cases are pending as

on the end of financial year?

• Customer complaints are treated very seriously in the organization. The status of pending complaints/cases as on March 31, 2015 is as follows:

AutomotiveDivision

FarmDivision(Including Swaraj)

Total

Percentage of ConsumerCases Pending as on31st March 2015

40.26% 37.62% 39.56%

Case pending underCompetition Act 2002

2 1

• Pending Customer complaints AD – 2015

• Pending Customer complaints FD – 2015

ReceivingPeriod

TotalComplaints Registeredin thisperiod

Closed Open Open % Closed%

F’11* – F’15 1,419,301 1387008 32293 2.28% 97.72%

ReceivingPeriod

TotalComplaints Registeredin thisperiod

Closed Open Open % Closed%

F11-F15 71147 71143 4 0.01% 100.0%

2. Does the Company display product information on the product label, over and above what is mandated as per local laws?

• Yes. In addition to mandatory requirements, Company also provides service and safety labels as deemed appropriate. e.g- Product fuel economy data displayed for each variant at selling points (Dealership).

3. Is there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide details thereof, in about 50 words or so.

• Yes. The Company has been impleaded in the below listed proceedings that allege violation of provisions of the Competition/MRTP Act. The Company is vigorously defending itself in these proceedings.

Description of the matters pending under the Competition Act, 2002:

• Shamsher Kataria-Case No. 3/2011

• Uma Agriculture

• Mohd Ekram Khan

THANK YOU(^_^)