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Risk management is an integral part of business
practices of the Company. The framework of risk
management concentrates on formalising a system
to deal with the most relevant risks, building on
ĚNJĿƙƥĿŠij ŞîŠîijĚŞĚŠƥ ƎƑîČƥĿČĚƙȡ ŒŠūDžŕĚēijĚ îŠē
structures. With the help of a reputed international
ČūŠƙƭŕƥîŠČNj ǛƑŞȡ ƥĺĚ ūŞƎîŠNj ĺîƙ ēĚDŽĚŕūƎĚē îŠē
implemented a comprehensive risk management
system to ensure that risks to the continued
ĚNJĿƙƥĚŠČĚ ūlj ƥĺĚ ūŞƎîŠNj îƙ î ijūĿŠij ČūŠČĚƑŠ îŠē
ƥū Ŀƥƙ ijƑūDžƥĺ îƑĚ ĿēĚŠƥĿǛĚē îŠē ƑĚŞĚēĿĚē ūŠ î ƥĿŞĚŕNj
ċîƙĿƙȦ ØĺĿŕĚ ēĚǛŠĿŠij îŠē ēĚDŽĚŕūƎĿŠij ƥĺĚ ljūƑŞîŕĿƙĚē
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)
¤ĿƙŒ ĿēĚŠƥĿǛČîƥĿūŠ îŠē ēĚǛŠĿƥĿūŠ ȶ GūČƭƙĚē ūŠ
identifying relevant risks, creating | updating clear
ēĚǛŠĿƥĿūŠƙ ƥū ĚŠƙƭƑĚ ƭŠēĿƙƎƭƥĚē ƭŠēĚƑƙƥîŠēĿŠij
along with details of the underlying root causes |
contributing factors.
ĿĿȴ ¤ĿƙŒ ČŕîƙƙĿǛČîƥĿūŠ ȶ GūČƭƙĚē ūŠ ƭŠēĚƑƙƥîŠēĿŠij
the various impacts of risks and the level of
ĿŠǜƭĚŠČĚ ūŠ Ŀƥƙ Ƒūūƥ ČîƭƙĚƙȦ ¹ĺĿƙ ĿŠDŽūŕDŽĚƙ
identifying various processes generating the
root causes and a clear understanding of risk
interrelationships.
ĿĿĿȴ ¤ĿƙŒ îƙƙĚƙƙŞĚŠƥ îŠē ƎƑĿūƑĿƥĿƙîƥĿūŠ ȶ GūČƭƙĚē
on determining risk priority and risk ownership
for critical risks. This involves assessment of the
various impacts taking into consideration risk
îƎƎĚƥĿƥĚ îŠē ƥĺĚ ĚNJĿƙƥĿŠij ŞĿƥĿijîƥĿūŠ ČūŠƥƑūŕƙȦ
ĿDŽȴ ¤ĿƙŒ ŞĿƥĿijîƥĿūŠ ȶ GūČƭƙĚē ūŠ îēēƑĚƙƙĿŠij
critical risks to restrict their impact(s) to an
îČČĚƎƥîċŕĚ ŕĚDŽĚŕ ȳDžĿƥĺĿŠ ƥĺĚ ēĚǛŠĚē ƑĿƙŒ
îƎƎĚƥĿƥĚȴȦ ¹ĺĿƙ ĿŠDŽūŕDŽĚƙ î ČŕĚîƑ ēĚǛŠĿƥĿūŠ ūlj
actions, responsibilities and milestones.
DŽȴ ¤ĿƙŒ ƑĚƎūƑƥĿŠij îŠē ŞūŠĿƥūƑĿŠij ȶ GūČƭƙĚē
on providing to the Board and the Audit
ūŞŞĿƥƥĚĚ ƎĚƑĿūēĿČ ĿŠljūƑŞîƥĿūŠ ūŠ ƑĿƙŒ ƎƑūǛŕĚ
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 | the Risk Management Committee
periodically reviews the risk management system
and gives its recommendations, if any, to the Board.
The Board reviews and guides the RiskManagement
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 Risk
Management Committee. The Company has a risk
management oversight structure in which each
sub-segment has a Chief Risk and Compliance
~ljǛČĚƑȦ
The Management at various levels takes accountability
ljūƑ ƑĿƙŒ ĿēĚŠƥĿǛČîƥĿūŠȡ îƎƎƑūƎƑĿîƥĚŠĚƙƙ ūlj ƑĿƙŒ îŠîŕNjƙĿƙȡ
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
ƑĚƎūƑƥĿŠij ūlj ēĚǛŠĚē ŞĿƥĿijîƥĿūŠ ƎŕîŠƙȡ ĿŠČŕƭēĿŠij ƎĚƑĿūēĿČ
reporting to the Audit Committee and the Board.
ǦǭȦ
TŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ
¹ĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙūDŽĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij
are designed to provide reasonable assurance
ƑĚijîƑēĿŠij ƥĺĚ ƑĚŕĿîċĿŕĿƥNj ūlj ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij îŠē
the preparation of the Financial Statements.
These include those policies and procedures that:
i)
pertain to the maintenance of records which in
ƑĚîƙūŠîċŕĚ ēĚƥîĿŕȡ îČČƭƑîƥĚŕNj îŠē ljîĿƑŕNj ƑĚǜĚČƥ
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
ƥĺîƥ ƑĚČĚĿƎƥƙ îŠē ĚNJƎĚŠēĿƥƭƑĚƙ îƑĚ ċĚĿŠij ŞîēĚ
only in accordance with authorisations of the
Management and the Directors of the Company,
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
ČūŠƙƭŕƥîŠČNj ǛƑŞ ĺîƙ ƑĚDŽĿĚDžĚē ƥĺĚ îēĚƐƭîČNj
ūlj ƥĺĚ ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ DžĿƥĺ ƑĚƙƎĚČƥ ƥū
the Financial Statements.
The Management assessed the effectiveness of the
ĿŠƥĚƑŠîŕ ǛŠîŠČĿîŕ ČūŠƥƑūŕƙ ūDŽĚƑ ǛŠîŠČĿîŕ ƑĚƎūƑƥĿŠij îƙ
of March 31, 2019, and the Board believes that the
controls are adequate.
Corporate Overview 01-22
Statutory Reports 23-105
Financial Statements 107-250
24
Atul Ltd | Annual Report 2018-19