RISK MANAGEMENT POLICY

FRAMEWORK
 Risk Management is a key aspect of the “Corporate Governance Principles and Code of
Conduct” which aims to improvise the governance practices across the Company’s activities.
Risk management policy and processes will enable the Company to proactively manage
uncertainty and changes in the internal and external environment to limit negative impacts and
capitalize on opportunities.
 This Policy is applicable to all channel of businesses, all level within the organisation. This
Policy applies to the Directors, employees and all other stakeholders of the Company.
OBJECTIVE & PURPOSE OF POLICY
 The main objective of this Policy is to ensure sustainable business growth with stability and to
promote a pro-active approach in reporting, evaluating and resolving risks associated with the
business. In order to achieve the key objective, the Policy establishes a structured and
disciplined approach to Risk Management, in order to guide decisions on risk related issues.
The specific objectives of the Risk Management Policy are:
1. To ensure that all the current and future material risk exposures of the Company are
identified, assessed, quantified, appropriately mitigated, minimized and managed i.e. to
ensure adequate systems for risk management.
2. To establish a framework for the Company’s risk management process and to ensure its
implementation.
3. To enable compliance with appropriate regulations, wherever applicable, through the
adoption of best practices.
4. To assure business growth with financial stability.
DISCLOSURE IN BOARD’S REPORT
 Board of Directors shall include a statement indicating development and implementation of a
risk management policy for the Company including identification therein of elements of risk, if
any, which in the opinion of the Board may threaten the existence of the Company.
BACK GROUND AND IMPLEMENTATION
 The Company is prone to certain inherent business risks. This document is intended to
formalize a Risk Management Policy, the objective of which shall be identification, evaluation,
monitoring and minimization of identifiable risks.
 This Policy is mandatory pursuant to Section 134 (3) (n) of Companies Act, 2013for risk
assessment and procedure for risk minimization.
 The Board of Directors of the Company and the Audit Committee shall periodically review
and evaluate the risk management system of the Company so that the management controls the
risks through properly defined network. Head of Departments shall be responsible for
implementation of the risk management system as may be applicable to their respective areas of
functioning and report to the Board and Audit Committee.
CONSTITUTION OF RISK MANAGEMENT COMMITTEE

1
 Risk Management Committee shall be constituted by the Company consisting of such number
of directors (executive or non-executive) as the Company thinks fit. The Board shall define the
roles & responsibilities of the Risk Management Committee & may delegate monitoring &
reviewing of the risk management plan to the Committee & such other functions as it may
deem fit.
APPLICATION
 This Policy applies to all areas of the Company’s operations.
ROLE OF THE BOARD
The Board will undertake the following actions to ensure risk is managed appropriately:
 The Board shall be responsible for framing, implementing and monitoring the risk
management plan for the Company.
 The Board shall define the roles and responsibilities of the Risk Management Committee and
may delegate monitoring and reviewing of the risk management plan to the Committee and
such other functions as it may deem fit.
 Ensure that the appropriate systems for risk management are in place.
 The Independent Directors shall help in bringing an independent judgment to bear on the
Board’s deliberations on issues of risk management and satisfy themselves that the systems of
risk management are robust and defensible;
 Participate in major decisions affecting the organization’s risk profile;
 Have an awareness of and continually monitor the management of strategic risks;
 Be satisfied that processes and controls are in place for managing less significant risks;
 Be satisfied that an appropriate accountability framework is working whereby any delegation
of risk is documented and performance can be monitored accordingly;
 Ensure risk management is integrated into board reporting and annual reporting mechanisms;
 Convene any board-committees that are deemed necessary to ensure risk is adequately
managed and resolved where possible.
REVIEW
 This Policy shall be reviewed at a minimum at least every year to ensure it meets the
requirements of legislation & the needs of organization.