Annual Report 2008-09The trends <strong>in</strong> f<strong>in</strong>ancial metrics over the years are depicted graphically below.CAGR = 23.3%35,000Total Revenue Vs. Internaonal Revenue100%INR Crore30,00025,00020,00015,00010,0005,0009,7488,56113,25211,59518,68517,00322,62020,57427,81325,63180%60%40%20%0FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-090%Total Revenue Internaonal Revenue % of Internaonal Revenue to Total50Revenue From Offshore Bus<strong>in</strong>ess%454038.7037.4040.5041.9044.203530FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-0930,00027,00024,00021,00018,00015,00012,0009,0006,0003,000084
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYThe Company has <strong>in</strong> place adequate systems of <strong>in</strong>ternalcontrol commensurate with its size and the nature of itsoperations. These have been designed to providereasonable assurance with regard to record<strong>in</strong>g andprovid<strong>in</strong>g reliable f<strong>in</strong>ancial and operational <strong>in</strong>formation,comply<strong>in</strong>g with applicable statutes, safeguard<strong>in</strong>g assetsfrom unauthorised use or losses, execut<strong>in</strong>g transactionswith proper authorisation and ensur<strong>in</strong>g compliance ofcorporate policies.The Company has a well def<strong>in</strong>ed delegation of powerwith authority limits for approv<strong>in</strong>g revenue as well asexpenditure. Processes for formulat<strong>in</strong>g and review<strong>in</strong>gannual and long-term bus<strong>in</strong>ess plans have been laid down.The Company uses a state-of-the-art ERP system torecord data for account<strong>in</strong>g and management <strong>in</strong>formationpurposes and connects to different locations for efficientexchange of <strong>in</strong>formation. It has cont<strong>in</strong>ued its efforts toalign all its processes and controls with global bestpractices.The Company has appo<strong>in</strong>ted Ernst and Young PrivateLimited to oversee and carry out <strong>in</strong>ternal audit of theCompany's activities. The audit is based on an InternalAudit Plan, which is reviewed each year <strong>in</strong> consultationwith the statutory auditors (Deloitte Hask<strong>in</strong>s & Sells) andthe Audit Committee. In l<strong>in</strong>e with <strong>in</strong>ternational practice,the plann<strong>in</strong>g and conduct of <strong>in</strong>ternal audit is orientedtowards the review of controls <strong>in</strong> the management ofrisks and opportunities <strong>in</strong> the Company's activities. TheInternal Audit process is designed to review the adequacyof <strong>in</strong>ternal control checks <strong>in</strong> the system and covers allsignificant areas of the Company's operations such assoftware delivery, account<strong>in</strong>g and f<strong>in</strong>ance, procurement,employee engagement, travel, <strong>in</strong>surance, IT processes <strong>in</strong>the Company, <strong>in</strong>clud<strong>in</strong>g significant subsidiaries andselected foreign branches. Safeguard<strong>in</strong>g of assets andtheir protection aga<strong>in</strong>st unauthorised use are also a partof these exercises.The Company has an Audit Committee, the details ofwhich have been provided <strong>in</strong> the Corporate GovernanceReport. The Audit Committee reviews Audit Reportssubmitted by the Internal Auditors. Suggestions forimprovement are considered and the Audit Committeefollows up on the implementation of corrective actions.The Committee also meets the Company's statutoryauditors to ascerta<strong>in</strong>, <strong>in</strong>ter alia, their views on theadequacy of <strong>in</strong>ternal control systems <strong>in</strong> the Company andkeeps the Board of Directors <strong>in</strong>formed of its majorobservations from time to time.CAUTIONARY STATEMENTCerta<strong>in</strong> statements made <strong>in</strong> the ManagementDiscussion and Analysis Report relat<strong>in</strong>g to theCompany's objectives, projections, outlook,expectations, estimates and others may constitute'forward look<strong>in</strong>g statements' with<strong>in</strong> the mean<strong>in</strong>gof applicable laws and regulations. Actual resultsmay differ from such expectations, projections andso on whether express or implied. Several factorscould make significant difference to the Company'soperations. These <strong>in</strong>clude climatic conditions andeconomic conditions affect<strong>in</strong>g demand and supply,government regulations and taxation, naturalcalamities and so on over which the Company doesnot have any direct control.85
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