Atul Ltd 2018-19

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 ČūŠƥƑūŕƙ ūǄĚƑ 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