Corporate Overview Statutory Reports Financial Statements 29 The products falling under these product groups are used by customers belonging to the automobiles, construction chemicals, flooring, foam and furnishing, footwear, furniture, handicraft, HVAC, stone processing and sports goods industries. The product groups comprise 236 products. Synthetic rubber adhesives (brushable and sprayable), polyurethane adhesives, natural rubber adhesives, epoxy adhesives, cyanoacrylate adhesives, epoxy sealants, multipurpose spray and protective paints are some of the key product groups predominantly targeted towards the domestic market. During 2023-24, sales marginally decreased from ` 245 cr to ` 243 cr. Growth on account of volume was 7%, which was negated by price erosion. The domestic market for Adhesives and Sealants is estimated at US$ 2.2 bn and is projected to grow at a CAGR of 5.1% reaching a value of Polymers – Retail Product groups: adhesives based on epoxy, synthetic rubber, polyurethane, cyanoacrylate, PVC, PVA and epoxy sealants, tapes and protective paints US$ 3.1 bn by 2030. Eleven National players dominate the marketplace. Footwear, foam and furnishing, construction, furniture and HVAC applications are growing well. The Company will participate in this growth by – i) improving manufacturing and working capital efficiencies, ii) debottlenecking and adding capacities, iii) introducing new products and iv) widening market reach in new geographies. Price sensitivity, fluctuating raw material prices and new entrants in the market will keep the market competitive and may keep margins under pressure. Since the twomain raw materials, namely Chloroprene rubber and thermoplastic polyurethane are imported, fluctuations in foreign exchange may impact margins. The Company has comprehensive internal control systems which are commensurate with the nature of its business, its size and the complexity of its operations. They provide reasonable assurance on the effectiveness and efficiency of its operations, reliability of financial reporting and compliance with the applicable laws and regulations. The internal control systems that deploy an amalgam of modern and traditional processes are routinely Internal Control Systems tested and upgraded for both design and operational effectiveness by the Management, and the same is audited by the Statutory Auditors. Significant audit observations, followup actions, and recommendations thereon are reported to the Senior Management and the Audit Committee for their review. Internal Audit The Company has an in-house Internal Audit department which includes professionals from finance and engineering disciplines and is also working with reputed audit firms specialising in internal audits. Together, they have the responsibility to identify areas requiring control enhancements, automation and implementation of leading practices for the Company, its subsidiary, joint venture and associate entities and also Atul Foundation and the entities overseen by it. The annual internal audit plan is reviewed and approved by the Audit Committee to ensure adequate coverage. Progress of the internal audit plans, significant audit observations and the status of agreed actions are reviewed by the Management on
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