167 MANAGEMENT DISCUSSION AND ANALYSIS The framework is a combination of entity-level controls (including Enterprise Risk Management, Legal Compliance Framework, Internal Audit and Anti-Fraud Mechanisms such as Ethics Framework, Code of Conduct, Whistle-Blower Policy, etc.), process level controls, information technology-based controls, period end financial reporting and closing controls. Further, the Internal Control Systems have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. In the highly networked IT environment of the Company, validation of IT Security receives focussed attention from IT specialists and Statutory Auditors. The Chief Internal Auditor reports administratively to the Chairman of the Board and functionally to the Audit Committee. The Internal Audit function develops an audit plan for the Company, which covers, inter alia, corporate, core business operations, as well as support functions. The Audit Committee reviews the annual internal audit plan. Significant audit observations are presented to the Audit Committee, together with the status of the management actions and the progress of the implementation of the recommendations. The Audit Committee reviews the adequacy and effectiveness of the Company's internal control environment and monitors the implementation of audit recommendations. During the year, the Company has taken steps to review and document the adequacy and operating effectiveness of internal controls. Nonetheless, your Company recognises that any internal control framework, no matter how well designed, has inherent limitations and accordingly, regular audits and review processes ensure that such systems are reinforced on an ongoing basis. Your Company's Management has carried out the evaluation of design and operative effectiveness of these controls and noted no significant deficiencies/material weaknesses that might impact financial statements as at the Balance Sheet date. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE OVERVIEW The financial statements have been prepared in accordance with Ind AS as per the Companies (Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 ( the Act') and other relevant provisions of the Act. ' The Group's consolidated financial statements have been prepared in compliance with Ind AS 110 on Consolidation of Accounts and presented in a separate section. FINANCIAL INFORMATION [STANDALONE] PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS st As at 31 March, 2024, the Property, Plant and Equipment and Intangible Assets stood at Rs. 21,284 crores as compared to Rs. st 19,761 crores as at 31 March, 2023. During the year, the Company incurred capital expenditure of Rs. 5,029 crores (previous year Rs. 4,354 crores). The majority capital expenditure was on new product development and capacity enhancement. Long-term borrowings Short-term borrowings Unclaimed matured deposits Total 1,135 450 0 1,585 F24 (1,197) (1,862) 0 (3,059) Decrease 2,332 2,312 0 4,644 F23 (Rs. crores) Borrowings BORROWINGS Borrowings have decreased from Rs. 4,644 crores in the previous year to Rs. 1,585 crores in the current year mainly due to repayments in the current year. INTERNAL CONTROL SYSTEMS Your Company maintains adequate internal control systems commensurate with the nature of its business and size and complexity of its operations. These are regularly tested for their effectiveness by Statutory as well as Management Auditors. Your Company's Internal Financial Controls are deployed through the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO), that addresses material risks in your Company's operations and Financial reporting objectives.
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