Sai Life Sciences Sustainability Report 2020

26 Risks and opportunities We recognize that risk management is an important aspect for sustainable growth and have therefore put processes in place that would help with the early identification of risks and its mitigation. Opportunity assessments are an inherent part of our business and are embedded in our internal business planning and decisions for setting short and long term goals. To mitigate financial risks, we have an Internal Financial Control Framework which is in line with the mandate of Section 134(5)(e) of the Companies Act, 2013. This framework ensures that financial controls are adequate and operating effectively for the efficient conduct of business, safeguarding of assets, compliance to company policies and prevention and detection of frauds and errors. The Company has a transparent framework for periodic evaluation of the Internal Financial Controls in the form of internal audit exercise carried out through the year, thereby reinforcing the commitment to adopt the best corporate governance practices. Risk management process and governance As a fast growing CDMO company, Sai is exposed to a wide range of internal and external risks that could significantly impact the achievement of our financial and nonfinancial objectives. Risk management is therefore an integral part of corporate management. As an organization, we promote strong ethical values and high levels of integrity in all our activities. Our standard operating process identifies and mitigates risk at an early stage. Process level controls cover key operating, financial and compliance related areas and our values, code of conduct ensure that we conduct our business with integrity and ethics. Strong audit and control mechanisms combined with internal financial control systems provide additional controls against possible risks. Compliance and Regulatory Ensure compliance with local law and regulations. Proactively address queries or concerns. Long term partnership with customers Ethical business practices that ensure reputation and continued investments to provide value added services. Competitiveness Product differentiation, remain cost competitive by optimizing production processes. Pharmaceutical Market Consolidation Proactively assessing impacts of M&A activity. Risk, opportunities & mitigation

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