Atul Ltd 2015-16

Atul Ltd | Annual Report 2015-16 Cheaper imports of Epoxy Resins and Hardeners may keep the contribution margins under pressure. Since the two main raw materials, namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in foreign exchange may impact margins. 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 2015-16, the Company further strengthened the systems of Internal Audit and risk assessment and mitigation and took several Key Initiatives. In specific, it i) conducted 96 process reviews, ii) introduced new integrated selective controls for monitoring inventories, iii) developed | implemented 11 new Standard Operating Procedures (SOPs) and iv) completed 31 more SOPs under SOP standardisation project for various 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 and implemented their recommendations on internal control documentation. 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. In particular, it focused on improving its processes related to Integrated Development, Performance Management and Succession Planning. The process of identification and review of Key Initiatives has become stronger and is continuously upgraded. On an average 5.3 man days of training was imparted during 2015-16. 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 in-house and external