84 Annual Report 2008-09 The trends <strong>in</strong> f<strong>in</strong>ancial metrics over the years are depicted graphically below. 35,000 30,000 25,000 20,000 15,000 INR Crore CAGR = 23.3% 10,000 5,000 0 9,748 8,561 Total Revenue Vs. Interna�onal Revenue 13,252 11,595 18,685 17,003 22,620 20,574 27,813 25,631 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 Total Revenue Interna�onal Revenue % of Interna�onal Revenue to Total 100% 80% 60% 40% 20% 0% % 50 45 40 35 30 30,000 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 Revenue From Offshore Bus<strong>in</strong>ess 38.70 37.40 40.50 41.90 44.20 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has <strong>in</strong> place adequate systems of <strong>in</strong>ternal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to record<strong>in</strong>g and provid<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 assets from unauthorised use or losses, execut<strong>in</strong>g transactions with proper authorisation and ensur<strong>in</strong>g compliance of corporate policies. The Company has a well def<strong>in</strong>ed delegation of power with authority limits for approv<strong>in</strong>g revenue as well as expenditure. Processes for formulat<strong>in</strong>g and review<strong>in</strong>g annual and long-term bus<strong>in</strong>ess plans have been laid down. The Company uses a state-of-the-art ERP system to record data for account<strong>in</strong>g and management <strong>in</strong>formation purposes and connects to different locations for efficient exchange of <strong>in</strong>formation. It has cont<strong>in</strong>ued its efforts to align all its processes and controls with global best practices. The Company has appo<strong>in</strong>ted Ernst and Young Private Limited to oversee and carry out <strong>in</strong>ternal audit of the Company's activities. The audit is based on an Internal Audit Plan, which is reviewed each year <strong>in</strong> consultation with the statutory auditors (Deloitte Hask<strong>in</strong>s & Sells) and the 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 oriented towards the review of controls <strong>in</strong> the management of risks and opportunities <strong>in</strong> the Company's activities. The Internal Audit process is designed to review the adequacy of <strong>in</strong>ternal control checks <strong>in</strong> the system and covers all significant areas of the Company's operations such as software 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 and selected foreign branches. Safeguard<strong>in</strong>g of assets and their protection aga<strong>in</strong>st unauthorised use are also a part of these exercises. The Company has an Audit Committee, the details of which have been provided <strong>in</strong> the Corporate Governance Report. The Audit Committee reviews Audit Reports submitted by the Internal Auditors. Suggestions for improvement are considered and the Audit Committee follows up on the implementation of corrective actions. The Committee also meets the Company's statutory auditors to ascerta<strong>in</strong>, <strong>in</strong>ter alia, their views on the adequacy of <strong>in</strong>ternal control systems <strong>in</strong> the Company and keeps the Board of Directors <strong>in</strong>formed of its major observations from time to time. CAUTIONARY STATEMENT Certa<strong>in</strong> statements made <strong>in</strong> the Management Discussion and Analysis Report relat<strong>in</strong>g to the Company'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>g of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make significant difference to the Company's operations. These <strong>in</strong>clude climatic conditions and economic conditions affect<strong>in</strong>g demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control. 85