140 32ND ANNUAL REPORT 2023-24 | HERITAGE FOODS LTD MDA STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS Internal control system and adequacy The company has in place strong internal control procedures commensurate with its size and operations. The company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardizing operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation. It is an integral part of the general organisational structure of the company and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers guidance, support and strategic supervision to the Executive Directors and management, monitoring and support committees. Human resources Heritage Foods values its human and intellectual capital as the key drivers of its success, with employee satisfaction playing a crucial role. The company believes in nurturing its workforce, as their growth directly influences the company’s achievements. The Company is dedicated to fostering a diverse and inclusive environment that promotes personal development and wellbeing. The company’s ability to attract, develop and retain talent has been a cornerstone of its growth trajectory. Teamwork and collective professional advancement define the company’s ethos. It invests in training and upskilling to support the career growth of its employees. By adopting a transparent communication structure, it encourages open dialogue between staff and management. These practices have been instrumental in attracting and maintaining a dedicated workforce. HFL’s employee count stands at 3,225 as of 31st March 2024. Quality, health and safety measures Ensuring personnel safety is our top priority. Factory managers lead our safety efforts, conducting regular reviews across all our sites regarding occupational health and safety. We have implemented multiple measures to enhance personnel health and safety, including organizing small teams at each manufacturing site for rapid detection and effective management of safety issues. Our company strictly adheres to comprehensive health and safety protocols. Wellness programs were also organised to support the mental and psychological health of employees. Quality and safety are paramount for the company. It adheres to stringent quality control and inspection processes to ensure its diverse product range meets high industry standards for quality, safety and nutrition. The company prioritizes milk quality and safety and holds certifications in both the Safety and Health Management System (ISO 45001:2018) and Environment Management System (ISO 14001:2015). Our sustainable model The company is committed to minimizing its environmental footprint and fostering a sustainable business approach. It places high priority on energy conservation, ensuring efficient energy utilization across all its operational units. As a utility-conscious entity, the company boasts of a renewable energy generation capacity of 11.70 MW, sourced from renewable energy systems for in-house use. In its pursuit to alleviate the strain on natural resources, the company is dedicated to lowering its carbon footprint. As a validation of this focus, it has earned the distinction of winning all three prestigious CII National Energy Conservation Awards in 2021 and 2023 and holds certifications for its environmental management systems, in compliance with ISO 14001:2015 standards. Packaging and plastic waste management Plastic plays a crucial role in ensuring product safety and preventing leaks. As a responsible organization, we acknowledge the impact of our business operations on the natural ecosystem. Consequently, we are committed to shaping a greener future by actively participating in plastic recycling initiatives, etc. Cautionary statement The statements made in the Management Discussion and Analysis describing the company’s objectives, projections, estimates and expectations may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include economic conditions affecting demand-supply and price conditions in the markets in which the company operates, changes in government regulations, tax laws and other statutes, and other incidental factors.
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