Page 168 - Hitachi IR 2025

MANAGEMENT DISCUSSION & ANALYSIS
embedded in businesses basis local inputs and
requirements. This approach leverages local
competence to create social, environmental, and
economic value on a global scale. By developing new
and localized products, features, and solutions, your
Company can secure existing revenue streams while
creating additional revenue by increasing customer
engagement and installed bases. Your Company’s
large pool of expert technologists, shopfloor
specialists, solution providers, technicians and R&D
teams, capacity to innovate, and investment in the
creation of modern technologies have ensured it
remains a well-regarded voice in the industry now
and in the years to come. It remains committed
to identifying and developing key powergrid
technologies that will enable a digital-led future
more focused on renewable energy sources. During
the FY 2024-25, your Company has incurred
` 254.49 Crores as royalty fees to Hitachi Energy Ltd.
Material developments in human resources /
industrial relations front
People have always been at the center of the
Company’s key strategies and priorities, powering it for
over 75 years. The Company believes its employees
are the most valuable assets and core strength in
preserving its high-quality standards and facilitating
its growth. Embracing the ethos of empowering its
workforce, the Company has meticulously crafted
an HR policy, aimed at establishing a secure,
harmonious, and transparent work environment. It
ensures that employees' goals are in harmony with
the organisation's vision for growth. The HR team
consistently organizes training and engagement
initiatives aimed at enhancing the skills and capabilities
of employees. The Company is set to reinforce its
safety culture, upskill and cross-skill talent for agile
energy transition, and also build capacities for future
growth. Aligned with the Company's values, and
guided by its foundational pillars of transparency and
agility, the Company's talented workforce is motivated
to elevate the organization to new levels of success.
As on March 31, 2025, the Company’s total employee
strength stood at 2,481.
Risks and Concerns
An effective and well-planned risk management
framework enables the Company to implement
its strategy and deliver long-term value to all the
stakeholders. It helps in identifying and evaluating the
business risks and opportunities, both in the short and
long term. Over the past year, your Company worked
to reduce its exposure to risks and introduce more risk
management practices and to insulate the Company.
The approach of integrated quantitative risk analysis
into day-to-day management and performance
management of the Company guides corporate
decision-making. To effectively mitigate these risks,
your Company has employed a risk management
framework, which helps in proactively identify,
prioritize, and mitigate risks. The framework is based
on principles laid out in the globally recognized
standards. The risk management structure addresses
the risks in complete interest of the shareholders and
equips the Company to continue creating value. Your
Company made continuous efforts to promptly identify
business risks and implement effective risk mitigation
action plans to monitor and address these risks.
Internal control systems and their adequacy
The Company's internal control framework is
meticulously designed to safeguard all stakeholders'
interests by fostering an environment conducive to
effective operations. This framework comprehensively
focuses on maintaining effective controls over financial
reporting and addresses financial & operational
risks through a multi-layered structure, including a
country management committee, group directives
and instructions, local management instructions,
entity-level controls, process-level controls, and
management testing programs. This holistic and
rigorous approach ensures that control processes are
proportionate to the Company's size and complexity.
Enhancing this robust framework, the Company boasts
a well-established, independent, multi-disciplinary
Internal Audit, Risk & Internal Control team. This
team operates strictly with governance best practices,
delivering valuable insights to management and the
audit committee regarding compliance with internal
controls, operational efficiency, and key process risks.
Their independent evaluations and recommendations
are crucial in maintaining the integrity and
effectiveness of the Company's control environment.
All audit findings and reports are submitted to the
Audit Committee every quarter, ensuring continuous
oversight and improvement.
Cautionary statement
Certain statements made in the Management
Discussion and Analysis Report relating to the
Company’s business are forward-looking statements.
These include all statements other than those of
performance highlights and historical facts, including
those regarding the market and financial position,
business strategy, and objectives for future operations.
Forward-looking statements shall be identified by
words such as anticipates, expects, intends, may,
will, believes, estimates, outlook, and other words
of similar meaning in connection with a discussion
of future operational, environmental, social and
financial performance. Forward-looking statements
are necessarily dependent on projections and trends
and constitute our current expectations based on
reasonable assumptions. Actual results could differ
from the projected in any forward-looking statements
due to risks and uncertainties and other external factors.
By proactively identifying,
prioritizing, and mitigating risks,
your Company effectively addresses
potential challenges through its risk
management framework.
166 Hitachi Energy India Limited