44 Atul Ltd | Annual Report 2022-23 Atul Ltd | Annual Report 2022-23 Atul Ltd Atul House G I Patel Marg Ahmedabad 380 014, Gujarat India Atul Ltd | Annual Report 2022-23 Reconnect | Reimagine | Regrow Corporate Overview Statutory Reports Financial Statements The Company has comprehensive internal control systems commensurate with the nature of its business, its size and the complexity of its operations. They provide reasonable assurance on the effectiveness and efficiency of its operations, reliability of financial reporting and compliance with the applicable laws and regulations. The internal control systems that deploy an amalgam of modern and traditional processes are routinely tested and upgraded for both design and operational effectiveness by the Management and the same is audited by the Statutory Auditors. Significant audit observations and follow-upactionsandrecommendations thereon are also reported to the Senior Management and the Audit Committee for their review. Internal Audit The Company has an in-house Internal Audit department which includes professionals from finance and engineering disciplines and is also working with reputed audit firms specialising in internal audits. Together, they have the responsibility to identify areas requiring control enhancements, automation and implementation of leading practices for the Company, its subsidiary, joint venture and associate entities and also Atul Foundation and the entities overseen by it. Internal Control Systems The annual internal audit plan is reviewed and approved by the Audit Committee to ensure adequate coverage. Progress of the internal audit plans, significant audit observations and the status of agreed actions are reviewed by the Management on a monthly basis and by the Audit Committee on a quarterly basis. Enterprise Risk Management The Company believes that risks are inevitable in any business and its approach is to identify, track and mitigate instead of avoiding them. Enterprise risk management (ERM) is an integral part of a business and its framework includes the identification, classification, assessment, prioritisation, mitigation, monitoring and reporting of key risks. The Company has adopted a bottom-up and top-down approach to drive ERM. The bottom-up approach includes the identification and regular assessment of risks by respective businesses and cross-functional teams and a plan for mitigating such risks in a structured manner. This is complemented by a top-down approach where the Senior Management ensures comprehensiveness of framework, effectiveness of mitigation measures and assesses long-term and macro risks. Risks are consolidated under major risk themes to create focus areas and prioritise mitigation plans. The Company has constituted an ERM council comprising Senior Management officials to ensure adoption of a comprehensive framework and effectiveness of mitigation measures. ERM is driven by the Board of Directors through the Risk Management Committee of the Board.
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