Page 76 - BCML AR 2019-20

Cost risk Regulatory & government intervention
Increasing cane prices and input costs could affect risk
profitability Business operations may be affected on account of
excessive government intervention
Risk mitigation Risk mitigation
I
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y yo moderate the impact of cane cost, the Company y yn the last couple of years, the Government has
is working on the improvement of cane varieties which taken numerous rational decisions whether related
would generate higher yield to farmers and millers. to the fixation of cane price or with respect to the
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y yhe Company diversified into the distillery and management of demand and supply of sugar in the
cogeneration business to broad-base the revenue country. In other words, the Government’s interventions
base and minimise the impact of input cost increase in in the last couple of years have been positive. A
sugarcane. favorable Government Policy in ethanol blending
insulates the Company against adverse price realisations.

Finance risk Cyber risk
A stretched Balance Sheet could affect business This could lead to financial loss, disruption or damage to
sustainability the reputation of the Company from some sort of failure
of its information technology systems
Risk mitigation Risk mitigation
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y yhe Company follows a judicious policy on mix of y yhe IT department of the Company maintains and
equity and debt. upgrades the systems on a continuous basis. The internal
y yhe Company’s gearing as on 31st March 2020 was team imparts training and awareness programs to users
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among the lowest in the industry. Other financial and on cyber security and threats.
liquidity ratios were at a healthy level. y yIdentity and access control is deployed through
MAC-based filtering and user authentication to access
internet and business applications.
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y yhe Company ensures data security by having identity
and access control and authorisation matrix and all
critical business data (user data and application data) are
backed-up at multiple locations.
Foreign exchange fluctuation risk y yComplex password protection is enabled at multiple
Foreign exchange volatility could result in unwarranted levels to access business technology to ensure data
revenue losses integrity. Only licensed software is used in the IT systems.
y yhe Company’s gateway is secured using UTM firewall
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Risk mitigation device, which protects incoming and outgoing web
y yhe Company’s operations do not generally entail and mail traffic. End points are deployed with managed
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foreign exchange risks antivirus for client security.
y yDisaster recovery is in place to ensure business
y yAs a matter of prudence, the Company hedges long-
term and short-term foreign exchange exposures, if any continuity.

74 | Balrampur Chini Mills Limited