BOARD’S REPORT 93 feasible as the latter option of closure would have entailed further capital infusion in the business and as such, sale to the JV Partner was concluded. Sale of stake held by the Company in Sanyo Special Steel Manufacturing India Private Limited (formerly known as Mahindra Sanyo Special Steel Private Limited) As mentioned in the previous Annual Report, your Company during the year, sold its entire stake of 34,75,264 Equity Shares of Rs. 10 each in Sanyo Special Steel Manufacturing India Private Limited (formerly known as Mahindra Sanyo Special Steel Private Limited) (SSSMIPL) constituting 22.81% of the paid-up share capital of SSSMIPL pursuant to exercise of a Put Option available to the Company on Sanyo under the Shareholders’ Agreement. Post this sale, SSSMIPL has ceased to be an Associate of the Company. Sale of stake held by the Company in CIE Automotive India Limited (formerly known as Mahindra CIE Automotive Limited) As mentioned in the previous Annual Report, your Company during the year, sold its entire stake of 1,21,22,068 Equity Shares of Rs. 10 each in CIE Automotive India Limited (formerly known as Mahindra CIE Automotive Limited) (CIE India) constituting 3.195% of the paid-up share capital of CIE India. Post this sale, the Company does not have any equity interest in CIE India and has ceased to be a Promoter of CIE India. Sale of stake held by the Company in Blue Planet Integrated Waste Solutions Limited (formerly known as Mahindra Waste To Energy Solutions Limited) As mentioned in the previous Annual Report, your Company during the year sold 2,40,00,000 Equity Shares of Rs. 10 each in Blue Planet Integrated Waste Solutions Limited (formerly known as Mahindra Waste To Energy Solutions Limited) (BPIWSL) constituting 80% of the paidup share capital of BPIWSL to Blue Planet Environmental Solutions Pte Ltd (BPES). Following the sale, the Company’s holding in BPIWSL has reduced to 20% and BPIWSL ceased to be a subsidiary of the Company and has become an Associate. D. I NTERNAL FINANCIAL CONTROLS The Corporate Governance Policies guide the conduct of affairs of your Company and clearly delineate the roles, responsibilities and authorities at each level of its Governance Structure and Key Functionaries involved in Governance. The Code of Conduct for Senior Management and Employees of your Company (the Code of Conduct) commits Management to financial and accounting policies, systems and processes. The Corporate Governance Policies and the Code of Conduct stand widely communicated across your Company at all times. Your Company’s Financial Statements are prepared on the basis of the Significant Accounting Policies that are carefully selected by Management and approved by the Audit Committee and the Board. These Accounting policies are reviewed and updated from time to time. Your Company uses SAP ERP Systems as a business enabler and to maintain its Books of Account. The transactional controls built into the SAP ERP Systems ensure appropriate segregation of duties, appropriate level of approval mechanisms and maintenance of supporting records. The Policies related to the Information Management reinforce the control environment. The systems, Standard Operating Procedures and controls are reviewed by Management. These systems and controls are subjected to Internal Audit and their findings and recommendations are reviewed by the Audit Committee which ensures the implementation. Your Company has in place adequate internal financial controls with reference to the Financial Statements commensurate with the size, scale and complexity of its operations. Your Company’s Internal Financial Controls were deployed through Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), that addresses material risks in your Company’s operations and financial reporting objectives. Such controls have been assessed during the year under review taking into consideration the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by The Institute of Chartered Accountants of India. Based on the results of such assessments carried out by the Management, no reportable material weakness or significant deficiencies in the design or operation of internal financial controls were observed.
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