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Atul Ltd | Annual Report 2015-16
05.
Insurance
The Company has taken adequate insurance to
cover the risks to its employees, property, plant
and equipment, buildings and other assets and
third parties.
06.
Risk Management
Risk Management is an integral part of the business
practices of the Company. The framework of Risk
Management concentrates on formalising a system
to deal with the most relevant risks, building on
existing management practices, knowledge and
structures. With the help of a reputed international
consultancy firm, the Company has developed and
implemented a comprehensive Risk Management
System to ensure that risks to the continued
existence of the Company as a going concern and to
its growth are identified and remedied on a timely
basis. While defining and developing the formalised
Risk Management System, leading standards
and practices have been considered. The Risk
Management System is relevant to business reality,
pragmatic and simple and involves the following:
i) Risk identification and definition – Focused on
identifying relevant risks, creating | updating
clear definitions to ensure undisputed
understanding along with details of the
underlying root causes | contributing factors.
ii) Risk classification – Focused on understanding
the various impacts of risks and the level of
influence on its root causes. This involves
identifying various processes generating the
root causes and clear understanding of risk
interrelationships.
iii) Risk assessment and prioritisation – Focused
on determining risk priority and risk ownership
for critical risks. This involves assessment of the
various impacts taking into consideration risk
appetite and existing mitigation controls.
iv) Risk mitigation – Focused on addressing critical
risks to restrict their impact(s) to an acceptable
level (within the defined risk appetite).
This involves a clear definition of actions,
responsibilities and milestones.
v) Risk reporting and monitoring – Focused on
providing to the Board and the Audit Committee
periodic information on risk profile evolution
and mitigation plans.
Roles and responsibilities
Governance
The Board has approved the Risk Management
Policy of the Company. The Company has laid down
procedures to inform the Board on i) to iv) above.
The Audit Committee periodically reviews the Risk
Management Systemand gives its recommendations,
if any, to the Board. The Board reviews and guides
the Risk Policy.
Implementation
Implementation of the Risk Management Policy is
the responsibility of the Management. It ensures
functioning of the Risk Management System as per the
guidance of the Audit Committee. The Company has
Risk Management Oversight Structure in which each
Sub-segment has Chief Risk and Compliance Officer.
The Management at various levels takes
accountability for risk identification, appropriateness
of risk analysis, and timeliness as well as adequacy
of risk mitigation decisions at both individual
and aggregate levels. It is also responsible for the
implementation, tracking and reporting of defined
mitigation plans, including periodic reporting to the
Audit Committee and the Board.
07.
Internal Financial Controls
The Internal Financial Controls over financial reporting
are designed to provide reasonable assurance
regarding the reliability of financial reporting and the
preparation of the Financial Statements.
These include those policies and procedures that
i) pertain to the maintenance of records which
in reasonable detail, accurately and fairly reflect
the transactions and dispositions of the assets of
the Company, ii) provide reasonable assurance
that transactions are recorded as necessary to
permit preparation of the Financial Statements in
accordance with Generally Accepted Accounting
Principles and that receipts and expenditures are
being made only in accordance with authorisations
of the Management and the Directors of the
Company and iii) provide reasonable assurance
regarding prevention or timely detection of
unauthorised acquisition, use or disposition of the
assets that can have a material effect on the Financial
Statements. A reputed international consultancy
firmhas reviewed the adequacy of the Internal Financial
Controls with respect to the Financial Statements.
The Management assessed the effectiveness of the
Internal Financial Controls over financial reporting
as of March 31, 2016, and the Board believes that
the controls are adequate.
08.
Fixed deposits
During 2015-16, the Company did not accept any
fixed deposits.
09.
Loans, guarantees, investments and
security
Particulars of loans, guarantees, investments and
security are given at page number 103 and 119.
10.
Subsidiary, associate and joint venture
companies
Performance and financial position of such
companies are given at page number 28.
11.
Related Party Transactions
Particulars of contracts or arrangements with related
parties are given at page number 111.
12.
Corporate Social Responsibility
Composition of the Corporate Social Responsibility
(CSR) Committee, the CSR Policy and the CSR Report
are given at page number 30.