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Internal Control Systems

The Company has adequate internal control Systems for

safeguarding its assets, ensuring that transactions are in

accordance with its policies and are duly authorized, recorded

and reported, and preventing possibilities of frauds or other

irregularities. The Internal Audit department is adequately

staffed with qualified professionals and the efficiency and

effectiveness of controls are independently checked by

them and reported to the Audit Committee for its review.

The annual audit plan is reviewed by and major findings and

actions taken | proposed to be taken are reported to the

Committee.

The Company is working to further strengthen the Systems of

Internal Audit and risk assessment and mitigation. During the

year, it has taken the following specific initiatives to improve

in these areas:

1. Introduced risk-based process reviews with the help of

reputed external firms

2. Created future state design Manuals | SOPs for three

critical processes, namely, Inventories, Sales & Marketing

and Procurement

3. Strengthened in-house team by inducting experienced

and skilled professionals

Human Resources

The Company continued with its drive to institutionalise and

upgrade its HR processes. In particular, it focused on improving

its processes relating to Training & Development, Performance

Management and Competencies. The implementation of

PeopleSoft, an integrated software package from Oracle, is

now helping in this endeavour and will support the aspiration

to achieve sustainable growth.

On an average, 5 mandays of training was imparted during the

year. The training need is identified based on self assessment

and L+1 assessment; in addition, there are certain standard

courses which everyone is expected to go through, depending

upon his (her) grade. Performance Management process has

become ‘on-line’ and is continuously upgraded; more the

clarity, better the performance.

Despite growth of business and in spite of increase in brand

sales (which calls for more people in the marketplace),

the number of employees as on March 31, 2011 at 2534

remained marginally lower to that a year ago. The number

does not include those working in stand-alone subsidiary or

associate companies. Of these, 464 employees formed part of

the Research and Marketing departments.

Long-term Wage Settlements with the Unions at Valsad and

Ankleshwar sites are under discussion and will help bring further

improvements particularly in manpower productivity. Employee

Relations at all locations continued to be cordial, and the

endeavour is to completely eliminate the divide that sometimes

separates the Management and the Unions and use the strengths

of everyone to boost the performance of the Company.

Statements made in the Management Discussion & Analysis

report relating to projections, estimates, expectations or

predictions are based on certain assumptions. The Company

cannot guarantee that these assumptions are accurate or will

be realised. The actual results, performance or achievements

of the Company may thus differ materially from those

estimated or projected.

If you want to go fast, go alone,

but if you want to go far, go together.

- African Proverb

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