Engro Corp Limited (Control systems & Business Intelligence)

Companys BOD & Support committees: 1. 8 non-executive and 5 executive directors 2. 6 board committees (Board Audit committee, Board Investment committee, Board Compensation committee, Executive committee, COED, Engro Foundation Trustees) a. Board Audit committee: to review endorse the companys financial accounts, ensures the adequacy of the financial reporting process, and maintains integrity of internal audits and control system and monitors compliance with SECP regulations. Assessment of risk management strategies of the whole business. b. Board Investment committee: management of companys financial

capital/resources, renew investment decisions, transactions and their performance. Also advises on the companys overall strategy. c. Board Compensation committee: monitors, assess and evaluates the groups human resource policies (compensation, organizational development, and employee training). It also overlooks board compensation and selection of board members for subsidiaries. d. Executive committee (EXCOM): Comprises of Corps think tank which works in an advisory capacity and overlooks performance appraisals and several business policies. e. COED: Compensation, Organization and Employee Development. Overlooks all employees except for directors and senior executives. f. Engro Foundation Trustees: Ensures maximum effectiveness of companys social investment activities. Long-term goal setting at Engro Corp (evaluation and importance) 1. Subsidiaries develop Rolling Business Plans for 5-10 years duration 2. These plans are first approved by subsidiary BoD and then are submitted to Engro Corp BoD for final approval.

3. Every year subsidiaries enlighten the Engro Corp board of their progress. Projections for the next year along with product roll out plans and new consumer segments (if any) are also submitted. 4. Based on this information Engro Corp develops its profitability projections.

Business Intelligence at Engro Corp (SAP suite): 1. The Dashboard: ECL being a holding company needs to provide and sustain its investments in different businesses it has interests in. To ensure a regular update for its board members the Corp. generates a monthly MIS called Dashboard; a structured breakdown of information in terms of key indicators that pertain to each entity. a. How it helps the Management: management can easily review/monitor the performance of each business independently hence a convenient way of making decision at business and corporate level. b. The ERM initiative: Enterprise wide Risk Management is a plan in the pipeline which followed the urea expansion project. ERM will access crucial firm wide risks and their sources 2. SAP ERP: ECL uses SAP ERP which is powered by IBM Global Services. Its implemented in Engro Fert, Food, Powergen and Engro Eximp. Initially the Corp was using MIDAS which is now not a cost effective option given the current business operations, hence replaced by SAP. Internal Audi department: Evaluates companys financial and operational procedures to ensure adequacy of internal controls. It reports directly to the committee for all critical issues. Implementation of SAP at Engro Corp.: Siemens Pakistan is implementing the following SAP modules at Engro ice-cream: 1. Financials and controlling 2. Materials management

3. Sales and Distribution 4. Quality management 5. Plant maintenance MDSD Mobile Direct Store Delivery: will be integrated with Sales & Distribution module using SAP XI Exchange infrastructure. Functionality: MDSD will facilitate Engro Foods Sales force to take sales orders directly from the outlets and upload them in the system using their mobile devices SAP is providing optimum tracking and management of financials, operational activities as well as better control over procurement and supply chain operations, hence enabling increased efficiencies, better supply chain visibility and quicker decision making.