ORGANIZATIONAL CONTROL

(i) Audit Committee: The audit committee has been constituted as a sub-committee of the board to actively monitor and report all systems within the organization. The functions of the committee are:

• Monitor the company’s major financial risks and exposures and the steps management has taken to monitor and control such risks and exposures, including the Company’s policies with respect to risk assessment and risk management.
• Review major issues regarding accounting principles and financial statements.
• Review the analysis prepared by management or the independent auditor of significant financial reporting issues and judgment made in connection with the preparation of the company’s financial statements.
• Review the effect of regulatory and accounting initiatives, on the company’s financial statements.
• Evaluate the qualifications, performance and independence of the independent auditor, including assessing whether all relationship between the independent auditor and the company and the provision of permitted non-audit services are compatible with maintaining the auditor’s independence. In connection with the evaluation, obtain and review a report by the independent auditor regarding its internal quality control procedures and consider whether such quality controls are adequate.
• Establish and review periodically procedures for (i) the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and (ii) the confidential, anonymous submission by employees of the company of concerns regarding questionable practices.

(ii) Financial Control:
Controls for finance to include:

• Issue of Financial Statements every quarter.
• Cost control to be done.
• Internal Audit on periodical basis.
• Budgeted expenditure.

(iii) Quality System: DTCL has a comprehensive and well documented quality system catering to all the major functions within the organization. Adherence to this system is closely monitored by the quality tea.

(iv) Sales Control: The Company has got efficient Sales Monitoring system and Sales Analysis system.

COMPETITIVE STRATEGIES

The management of the Company is putting its best efforts for continuous upgrade and modernization of field and factory to reduce overall costs and to improvise on the quality. Through the continuous development by way of uprooting, replanting as well as through rejuvenation of existing old area, the Company expects its production to grow upto 6 million Kgs. within 3 / 4 years.

The Company has got sufficient irrigation facility to take care of its plantation in case of drought. The Company has already installed modern machineries with new technology in its factories which would result in bringing down the manufacturing cost significantly.

The Company has got cost advantage over most of the other companies as its average yield is about 2100 Kgs. against the district average yield of around 1800 Kgs. The Company enjoys premium in the market by way of better realization and the Company’s tea estates rank among top 15 gardens in batting order.