Risks & Concern
It is essential to correctly assess the risk in each segment so that the risk is mitigated before it becomes a possible threat. General risk segments are statutory compliances, economy, financials, Government policies, market related, operational, products & technology etc.,
The management has a rapid review of likely risk areas with the objective to define a framework for identification, evaluating and mitigating the risk in the decision making process and to encourage proactive management and not reactive management. From the perspective of the company the risks are of the following nature:
Those risks associated with operating in a particular industry and includes risk arising from demand changes, changes in customers choice and industry changes. These risks pose threats or opportunities which materially affect the ability of the organization to survive.
Those risks associated with the need to comply with laws and regulations. They also apply to the need to act in a manner which stakeholders and customers expect.
Those associated with the company's operational and administrative procedures which inter alia include accounting controls, regulations, recruitment, I.T systems, board composition, contractual risks and exposures, organizational risks and exposures.
Those associated with financial structure of the company, its transactions and the financial system in place.
Those associated with release of polluting materials, environmental performance/compliance limits, business opportunities and breach of regulations.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The company has in place adequate system of internal control. It has documented procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls, monitoring of operations, protecting assets from unauthorized use or assets, compliance with regulations and for ensuring reliability of financial reporting. The company had continued its efforts to align all its processes and controls with global best practices in these areas as well.