Atul Annual report 2017-18

Atul Ltd | Annual Report 2017-18

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

a 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 the 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 System and gives its recommendations,

if any, to the Board. The Board reviews and guides

the Risk Management 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 a 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,

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

firm has 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, 2018, and the Board believes that the

controls are adequate.

08.

Fixed deposits

During 2017-18, the Company did not accept any

fixed deposits.

09.

Loans, guarantees, investments and security

Particulars of loans, guarantees, investments and

security provided are given at page numbers 114

and 116.

10.

Subsidiary, associate and joint venture

companies

During 2017-18, Aaranyak Urmi Ltd was incorporated

as a wholly-owned subsidiary company, Amal

Ltd became a subsidiary company and Anaven

LLP, a 50:50 partnership with AkzoNobel BV, was

incorporated. There were no other changes in the

subsidiary, associate and joint venture companies

which were reported earlier.

11.

Related Party Transactions

All the transactions entered into with the Related

Parties were in ordinary course of business and on

arm’s length basis. Details of such transactions

are given at page number 125. No transactions

were entered into by the Company which required

disclosure in Form AOC-2.

12.

Corporate Social Responsibility

Composition of the Corporate Social Responsibility

(CSR) Committee, the CSR Policy and the CSR Report

are given at page number 27.

13.

Extract of the Annual Return

This is given at page number 31.

14.

Auditors

Statutory Auditors

Deloitte Haskins & Sells LLP, Chartered Accountants

were appointed as the Statutory Auditors of the

Company at the 40

Annual General Meeting (AGM)

held on July 28, 2017 until the conclusion of the

AGM subject to ratification by the Members

at every AGM. The recent amendments in law have

dispensed with the requirement of ratification of

the Statutory Auditors in AGM subsequent to their

appointment. Considering the change in law, it

is proposed to ratify the appointment of Deloitte

Haskins & Sells LLP for the year ending on March 31,

2019 and pass appropriate resolution in the ensuing

AGM for dispensing with the requirement for such

ratification from the next year onwards.

The relevant Notes forming part of the accounts

are self-explanatory and give full information and

explanation in respect of the observations made by

the Auditors in their report.