53 / 220
51
The user industries, Construction,
Defence,
Electrical
and
Electronics, Paint and Coatings
are growing well, particularly
in India. The Company will
participate in this growth by i)
widening its market reach, ii)
increasing its manufacturing
and working capital efficiencies,
iii) generating and adding
new capacities of epoxy resins
and curing agents and v)
introducing
new
products
and formulations.
Cheaper imports of epoxy resins
and curing agents may keep
the margins under pressure.
Since the 2 main raw materials,
namely Bisphenol-A and Epichlorohydrin, are imported, fluctuations in foreign exchange may impact margins.
Internal Control Systems
Internal Control Systems of the Company are commensurate with the nature of its business and size and complexity of its
operations. These are routinely tested, certified and upgraded whenever required by the Statutory as well as the Internal
Auditors covering all key areas of business. Significant audit observations and follow up actions and recommendations thereon
are reported to the higher Management and Audit Committee for their review.
The Company has an in-house
Internal
Audit
department
consisting of professionally
qualified Managers. It is also
working with reputed firms
specialising in Internal Audit
function. The combined efforts
are helping to introduce best
practices required to manage
its growing business that now
comprises, amongst others,
subsidiary, joint venture and
associate companies in India and
abroad. Internal Audit is also
carried out for Atul Foundation
and entities overseen by it.
During 2017-18, the Company
further
strengthened
the
systems of Internal Audit and
risk assessment and mitigation and took several key initiatives. In specific, it i) conducted over 90 reviews, ii) introduced
over 10 data analytics scripts for continuous monitoring and iii) developed | implemented 4 new Standard Operating
Procedures (SOPs).