Atul Ltd 2014-15

53 Internal Control Systems 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, certified and upgraded whenever required by the Statutory as well as the 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 their review. The Company has an in-house Internal Audit Department (which became ISO 9001:2008 certified in 2014) consisting of professionally qualified Managers. It is also working with reputed firms specialising in Internal Audit function. The combined efforts are helping 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. Internal Audit is also carried out for Atul Foundation and entities overseen by it. During 2014-15, the Company further strengthened the systems of Internal Audit and risk assessment and mitigation and took several Key Initiatives. In specific, it i) conducted143process reviews, ii) introducednew Internal Audit practices (whichwon2015 IIA ExcellenceAward in the category InnovationAward), iii) developed | implemented6newStandardOperating Procedures (SOPs) and iv) completed 425 SOPs under SOP standardisation project for all functions. The Company also engaged one of the big Internal Audit firms to evaluate if the internal financial controls and systems are adequately structured to address the normal business operations of the Company. Human Resources The Company continued with its drive to institutionalise and upgrade its HR processes, to help build a more robust workforce capable of managing dynamic and growing business needs. The process of identification and review of Key Initiatives has become stronger and is continuously upgraded. On an average 6 man days of training was imparted during 2014-15. The training need is identified based on self-assessment, L+1 assessment; 360 degree feedback and Individual Development Plan; in addition, there are certain standard courses which everyone is expected to go through, depending upon his (her) grade. The number of employees (as on March 31, 2015) decreased by 11 from 2,761 to 2,750. The increase in numbers in Marketing and Research and Development has been more than offset by the reduction in numbers in Manufacturing. 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, jont venture or associate companies. Employee Relations at all locations remain cordial and the endeavour is to completely eliminate the divide that sometimes separates the managers and the workmen and use the strengths of everyone to boost the performance of the Company.