Atul Ltd 2010-11

Internal Control Systems The Company has adequate internal control Systems for safeguarding its assets, ensuring that transactions are in accordance with its policies and are duly authorized, recorded and reported, and preventing possibilities of frauds or other irregularities. The Internal Audit department is adequately staffed with qualified professionals and the efficiency and effectiveness of controls are independently checked by them and reported to the Audit Committee for its review. The annual audit plan is reviewed by and major findings and actions taken | proposed to be taken are reported to the Committee. The Company is working to further strengthen the Systems of Internal Audit and risk assessment and mitigation. During the year, it has taken the following specific initiatives to improve in these areas: 1. Introduced risk-based process reviews with the help of reputed external firms 2. Created future state design Manuals | SOPs for three critical processes, namely, Inventories, Sales & Marketing and Procurement 3. Strengthened in-house team by inducting experienced and skilled professionals Human Resources The Company continued with its drive to institutionalise and upgrade its HR processes. In particular, it focused on improving its processes relating to Training & Development, Performance Management and Competencies. The implementation of PeopleSoft, an integrated software package from Oracle, is now helping in this endeavour and will support the aspiration to achieve sustainable growth. On an average, 5 mandays of training was imparted during the year. The training need is identified based on self assessment and L+1 assessment; in addition, there are certain standard courses which everyone is expected to go through, depending upon his (her) grade. Performance Management process has become ‘on-line’ and is continuously upgraded; more the clarity, better the performance. Despite growth of business and in spite of increase in brand sales (which calls for more people in the marketplace), the number of employees as on March 31, 2011 at 2534 remained marginally lower to that a year ago. The number does not include those working in stand-alone subsidiary or associate companies. Of these, 464 employees formed part of the Research and Marketing departments. Long-term Wage Settlements with the Unions at Valsad and Ankleshwar sites are under discussion and will help bring further improvements particularly in manpower productivity. Employee Relations at all locations continued to be cordial, and the endeavour is to completely eliminate the divide that sometimes separates the Management and the Unions and use the strengths of everyone to boost the performance of the Company. Statements made in the Management Discussion & Analysis report relating to projections, estimates, expectations or predictions are based on certain assumptions. The Company cannot guarantee that these assumptions are accurate or will be realised. The actual results, performance or achievements of the Company may thus differ materially from those estimated or projected. If you want to go fast, go alone, but if you want to go far, go together. - African Proverb 30 | 31