Atul Ltd 2016-17

51 The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings and Wind Energy are growing well, particularly in India. The Company will participate in this growth by i) widening its market reach, ii) increasing its manufacturing and working capital efficiencies, iii) generating and adding new capacities of epoxy resins and hardeners and iv) introducing new products and formulations. Cheaper imports of epoxy resins and hardeners may keep the margins under pressure. Since the 2 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 2016-17, 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 continuous monitoring with the help of system reports iii) developed | implemented 5 new Standard Operating Procedures (SOPs) and iv) reviewed and revised 45 more SOPs under SOP project for all functions.