in a Dynamic Environment - Domain-b

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYThe Company has in place adequate systems of internalcontrol commensurate with its size and the nature of itsoperations. These have been designed to providereasonable assurance with regard to recording andproviding reliable financial and operational information,complying with applicable statutes, safeguarding assetsfrom unauthorised use or losses, executing transactionswith proper authorisation and ensuring compliance ofcorporate policies.The Company has a well defined delegation of powerwith authority limits for approving revenue as well asexpenditure. Processes for formulating and reviewingannual and long-term business plans have been laid down.The Company uses a state-of-the-art ERP system torecord data for accounting and management informationpurposes and connects to different locations for efficientexchange of information. It has continued its efforts toalign all its processes and controls with global bestpractices.The Company has appointed Ernst and Young PrivateLimited to oversee and carry out internal audit of theCompany's activities. The audit is based on an InternalAudit Plan, which is reviewed each year in consultationwith the statutory auditors (Deloitte Haskins & Sells) andthe Audit Committee. In line with international practice,the planning and conduct of internal audit is orientedtowards the review of controls in the management ofrisks and opportunities in the Company's activities. TheInternal Audit process is designed to review the adequacyof internal control checks in the system and covers allsignificant areas of the Company's operations such assoftware delivery, accounting and finance, procurement,employee engagement, travel, insurance, IT processes inthe Company, including significant subsidiaries andselected foreign branches. Safeguarding of assets andtheir protection against unauthorised use are also a partof these exercises.The Company has an Audit Committee, the details ofwhich have been provided in 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 ascertain, inter alia, their views on theadequacy of internal control systems in the Company andkeeps the Board of Directors informed of its majorobservations from time to time.CAUTIONARY STATEMENTCertain statements made in the ManagementDiscussion and Analysis Report relating to theCompany's objectives, projections, outlook,expectations, estimates and others may constitute'forward looking statements' within the meaningof 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 include climatic conditions andeconomic conditions affecting demand and supply,government regulations and taxation, naturalcalamities and so on over which the Company doesnot have any direct control.85