Atul Ltd 2009-10

32 / Atul Ltd | Annual Report 2009-10 The Company has adequate internal controls for safeguarding the assets of the Company, ensuring 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 their review. The Company is working to further strengthen the systems for internal audit and risk assessment and mitigation. During the year, it has taken further steps to improve in these areas and have specifically taken the following new initiatives: 1) Revision of audit checklists, reporting templates and several Standard Operating Procedures and involvement of an independent internal audit firm to improve methodologies, processes and reporting techniques. 2) Implementation of Risk Management Systems, first for one of the Divisions, namely, Aromatics before rolling it out to all the other Divisions. A leading consultancy firm was engaged for identification and assessment of risks, development of Risk Register and facilitation of senior management team to document the key risks and training on the risk management process mainly to continuously monitor and eventually to mitigate the risks. The performance of the in-house audit department is also peer-reviewed for improvements. The annual audit plan is reviewed by the Audit Committee and major findings and actions taken | proposed to be taken are also reported to the Audit Committee. 33 Internal Controls