Atul Ltd 2017-18

51 The user industries, Construction, Defence, Electrical and Electronics, Paint and Coatings 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 curing agents and v) introducing new products and formulations. Cheaper imports of epoxy resins and curing agents 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 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 2017-18, the Company further strengthened the systems of Internal Audit and risk assessment and mitigation and took several key initiatives. In specific, it i) conducted over 90 reviews, ii) introduced over 10 data analytics scripts for continuous monitoring and iii) developed | implemented 4 new Standard Operating Procedures (SOPs).