Atul Ltd 2013-14

33 Internal Control Systems The Internal Control Systemsof theCompanyarecommensurate with the nature of its business and size and complexity of its operations. These are routinely tested, certified and upgraded whenever required by Statutory as well as 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 and 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, JV and associate companies in India and abroad. Internal Audit is also carried out for Atul Foundation and entities overseen by it. During 2013-14, the Company further strengthened the systems of internal audit and risk assessment and mitigation and took several Key Initiatives. In specific, it i) conducted 126 process reviews, ii) developed Corporate Assurance manual and introduced 6 best internal audit practices, iii) developed | implemented 10 new SOPs and iv) initiated SOP standardisation project for all functions. Human Resources The Company continued with its drive to institutionalise and upgrade its HR processes, particularly those related to Performance Management, Learning and Development and Manpower Planning. The process of identification and review of Key Initiatives has becomemore robust and is continuously upgraded. On an average, 5 man days of training was imparted during 2013-14. The training need is identified based on self assessment and L+1 assessment; in addition, there are certain standard courses which everyone is expected to go through, depending upon his (her) grade. The number of employees (as on March 31, 2014) increased by 45 or 2% to 2,761, mainly in Marketing, Product Management and Research and Development. The number of employees comprises those working in the Company and also in its non-manufacturing subsidiary and associate companies, but not those working in manufacturing subsidiary, JV or associate companies. Employee Relations at all locations remain cordial and the endeavour is to completely eliminate the divide that sometimes separates the managers and the workmen and use the strengths of everyone to boost the performance of the Company. In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it. ~ Robert Heinlein