Atul Ltd 2011-12

35 Everything that irritates us about others can lead us to an understanding of ourselves. – Carl Jung Internal Control Systems The Internal Control Systems of the Company are commensurate with the nature of its business and size and complexity of its operations. These are routinely tested and certified by Statutory as well as Internal Auditors covering all key areas of business. Significant audit observations and follow up actions and recommendations thereon are reported to the higher management and Audit Committee for its review. The Company has an in-house Internal Audit Department consisting of professionally qualified managers and is also working with reputed firms specialising in internal audit function. The combined efforts is helping the Company to introduce best practices required to manage its growing business that now comprises, amongst others, subsidiary, joint venture and associate companies in India and abroad. During the year, the Company further strengthened the systems of internal audit and risk assessment and mitigation and took several key initiatives. In specific, the Company i) introduced usage of advanced analytical tools and techniques for internal audit and thus helped to improve coverage, efficiency and effectiveness of audit and ii) implemented Enterprise Risk Management for each Business and the Company as a whole and iii) increased the audit coverage of subsidiary companies. 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 Performance Management (Training & Development, Key Initiatives: identification and review, Competencies, 360 degree feedback and fixed and variable pay). 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. The identification and review process of Key Initiatives has become more robust and is continuously upgraded. For the first time in 3 years, the number of employees (as on March 31, 2012) increased by 91 or 3% to 2737, mainly in Marketing Department s . The number of employees comprises those working in the Company and also in its non-manufacturing subsidiary and associate companies, but not those working in manufacturing subsidiary, joint venture and associate companies. 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.