1. Issuer details: 1.1. Details of the issuer: (I) Name HDB FINANCIAL SERVICES LIMITED Address Registered Office: Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad Gujarat-380009 Corporate Office: GroundFloor, Zenith House, Keshavrao Khadye Marg, Opp. Race Course Gate No.6, _______ Mahalàxmi,Mumbai-400034 CIN U65993GJ2007PLCO51028 PAN AABCH8761M (ii) Line of business: Non Banking Financial Company engaged in lending business. (iii) Chief Executive (Managing Director / President! CEO! CFO) Managing Director & Chief Executive Officer Mr. G. Ramesh Chief Financial Officer Mr. Haren Parekh (iv) Group affiliation (if any) : HDFC Group. 1.2 Details of the directors: Director of Name I Date of Occupat the Details of other Designation Address . and DN birth ion Company directorship Since Mr. Aditya Pun, 27.10.1950 1001-1002, Vinayak Service 01.05.2016 1. HDFC Bank Limited Non- Executive Aangan, NB Director & Parulekar Marg, Chairman Prabhadevi, DIN - 00062650 __________ MUmbai -400 025 ______ Mr. Jimmy Tata, 13.07.1966 Sea Side, Bhulabhai Service Non- Executive Desai Director Road,Cumballa Hill, Mumbai- 400 036 DIN- 06888364 01.05.2016 1. International Asset Reconstruction Company Private Limited 2. TATA Investments Corporation Limited
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1. Issuer details: 1.1. Details of the issuer:
(I)
Name HDB FINANCIAL SERVICES LIMITED
Address Registered Office:
Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad Gujarat-380009
(ii) Line of business: Non Banking Financial Company engaged in lending business.
(iii) Chief Executive (Managing Director / President! CEO! CFO)
Managing Director & Chief Executive Officer Mr. G. Ramesh
Chief Financial Officer Mr. Haren Parekh
(iv) Group affiliation (if any) : HDFC Group.
1.2 Details of the directors:
Director of Name I
Date of Occupat the Details of other Designation Address . and DN
birth ion Company directorship
Since
Mr. Aditya Pun, 27.10.1950 1001-1002, Vinayak Service 01.05.2016 1. HDFC Bank Limited Non- Executive Aangan, NB Director & Parulekar Marg, Chairman Prabhadevi, DIN - 00062650 __________ MUmbai -400 025 ______
Mr. Jimmy Tata, 13.07.1966 Sea Side, Bhulabhai Service Non- Executive Desai Director Road,Cumballa Hill,
Mumbai- 400 036 DIN- 06888364
01.05.2016 1. International Asset
Reconstruction
Company Private
Limited
2. TATA Investments
Corporation Limited
Mr. Ramesh G., 22.09.1969 C 101, Ashok Service 01.07.2012 Nil Managing Gardens, Tokersey Director and Jivraj Road, Chief Executive Sewree, Mumbai Officer, 400015
DIN - 05291597 __________ _______________ _______ ___________ __________________
Mr. Venkatraman 09.03.1959 73, Keshav Smruti, Charter 12.03.2015 Nil Srinivasan, 8B, Veer Savarkar ed Independent Marg, Shivaji Park, Account Director Mumbai- 400028 ant
DIN - 00246012 _________ ______________ ______
Ms. Smita 04.11.1962 7A, A Block, 3rd Consult 12.03.2015 1. Avameh Consultancy Affinwalla, Floor, Khalakdina ant Private Limited Independent Terrace, August 2. Illuminos Director Kranti Marg, Consultancy Private
Mum bai- 400 036 Limited DIN - 07106628 3. Prime Securities
_______ COMPANY LIMITED Company ____________________ 2 IDFC Mutual Fund Mutual Fund 5.26 3 HDFC Mutual Fund Mutual Fund 4.58 4 Wipro Limited Corporate 3.91 5 National Pension System Trust 3.75
________ (N PS) Trust _______________ 6 HDFC BANK LTD Bank 3.28 7 HINDUSTAN ZINC LIMITED Corporate 3.12 8 Aditya Birla Sun Life Mutual Mutual Fund 2.89
_________ Fund ________________
9 Kotak Mahindra Mutual Mutual Fund 2.82 _________ Fund ________________
_____________ 10 Reliance Mutual Fund Mutual Fund 2.81
1.8. List of top 10 CP holders (as on 315t December 2019):
S. No. Name of CP holder Category of CP Face value of CP CP holding percentage as holder holding (Rs.) a percentage of total CP
2 CITIBANK N.A. _________ Bank 12.45 3 SBI MUTUAL FUND Mutual Fund 9.16 4 UNION BANK OF INDIA Bank 9.16
5 IDFC MUTUAL FUND Mutual Fund
________________
8.79
6 _______
SVC CO-OPERATIVE BANK LIMITED
Bank _____________
4.58 ____________________
7 ______
ADITYA BIRLA SUN LIFE
MUTUAL FUND Mutual Fund _____________
4.58 ___________________
8 UTI MUTUAL FUND Mutual Fund 3.66 9 Wipro Limited Corporate 3.66 10 AZIM PREMJI TRUST Trust 3 66
2 Material Information
2 1 Details of all default/s and/or delay in payments of interest and principal of CPs, (including technical delay), debt securities, term loans, external commercial borrowings and other financial indebtedness
including corporate guarantee issued in the past 5 financial years including in the current financial year NIL
2 2 Ongoing and/or outstanding material litigation and regulatory strictures, if any - None except as disclosed in the Annual Report
2 3 Any material event/ development having implications on the financials/credit quality including any material regulatory proceedings against the Issuer/promoters tax litigations resulting in material liabilities, corporate restructuring event which may affect the issue or the investor s decision to invest / continue to invest in the CP - NONE
3. Details of borrowings of the company, as on the latest quarter end:
3.1. Details of debt securities and CPs: Refer Borrowing Exhibit A attached.
3.2. Details of secured! unsecured loan facilities/ bank fund based facilities/ rest of the borrowing, if
any, including hybrid debt like foreign currency convertible bonds (FCCB), optionally convertible debentures / preference shares from banks or financial institutions or financial creditors, as on last quarter end Refer Borrowing Exhibit B attached
3 3 The amount of corporate guarantee or letter of comfort issued by the issuer along with name of the
counterparty (like name of the subsidiary, JV entity, group company etc) on behalf of whom it has been issued, contingent liability including debt service reserve account (DSRA) guarantees! any put option etc Not Applicable
4. Issue Information:
4 1 Details of current tranche including ISIN, amount, date of issue, maturity, all credit ratings including
unaccepted ratings, date of rating, name of credit rating agency, its validity period (details of credit
rating letter issued not older than one month on the date of opening of the issue), details of issuing and
paying agent and other conditions, if any Refer Exhibit C attached
4 2 CP borrowing limit, supporting board resolution for CP borrowing, details of CP issued during the
last 15 months Refer Exhibit D attached
4.3. End-use of funds: Disbursements of loans to borrowers & refinancing existing borrowings.
information (Profit & Loss statement, Balance Sheet and Cash Flow statement) along with auditor
qualifications, if any, for last three years along with latest available financial results As on March 31,
2019 HDB Financial Services Ltd did not have any subsidiary, the standalone and consolidated
financial information would be the same. Refer Exhibit E attached for the financial information.
In case an issuer is required to prepare financial results for the purpose of consolidated financial results in terms of Regulation 33 of SEBI LODR Regulations, latest available quarterly financial results shall be filed: Not Applicable.
5 2 Latest audited financials should not be older than six month from the date of application for listing
Provided that listed issuers (who have already listed their specified securities and/or 'Non-convertible
Debt Securities' (NCDs) and/or 'Non-Convertible Redeemable Preference Shares' (NCRPS)) who are in
compliance with SEBI (Listing obligations and disclosure requirements) Regulations 2015 (hereinafter
"SEBI LODR Regulations"), may file unaudited financials with limited review for the stub period in the
current financial year, subject to making necessary disclosures in this regard including risk factors
The unaudited financial with limited review report for the six months ended September 30, 2019 are
attached as Exhibit F
6. Asset Liability Management (AIM) Disclosures:
6 1 NBFC5 seeking to list their CPs shall make disclosures as specified for NBFCs in SEBI Circular nos
CIR/IMD/DF/ 12 /2014, dated June 17, 2014 and CIR/IMD/DF/ 6 /2015, dated September 15, 2015, as
revised from time to time Further, "Total assets under management", under para 1 a of Annexure I of CIR/IMD/DF/ 6 /2015, dated September 15, 2015 shall also include details of off balance sheet assets.
The above Disclosuresare attached as Exhibit G.
For HDB Financial Services hr
Authorised Signatory
Name: Haren Parekh Title : Chief Financial Officer Date Intjrv O 21120
nited
p ((f(
EXIBIT A
Secured Debentures (NCD's and MID's) Outstanding as on December 31, 2019
Series ISIN Tenon Coupon Amount Date of Redemption
Period of % issued allotment date
maturity (Rs. In ________________________ _______________ _________ ________ Crore) __________ ____________
*N ote —The above-mentioned NCDs (except the Market Linked Debentures) are rated
AAA/Stable and the Market Linked Debentures are rated CARE PP-MID AAA/Stable & CRISIL
PP-MLD AAAr/Stable by CARE Ratings Limited & CRISIL Limited, respectively and are secured
against "Immovable property & receivables from financing activities".
Subordinate Bonds outstanding as on December 31, 2019
Series ISIN Tenor! Coupon% Amount. Date of Redemption Period of issued(Rs. allotment date!
____________ _____________ maturity ____________ In Crore) . Schedule
Series 2012 INE756108017 1/1/i _____________ 10 years 10.2 250 09-08-12 09-08-22
Series 2012 1NE756I08025 1/1/2 _____________ 10 years 9.7 150 30-11-12 30-11-22
Series 2012 1NE756108033 1/1/3 ____________ 10 years 9.6 200 22-03-13 22-03-23
Series 2013 1NE756I08041 1/1/4 _____________ 10 years 10.2 100 18-10-13 17-10-23
Series 2013 IN [756108058 I/i/S _____________ 10 years 10.05 50 20-12-13 20-12-23 Series 2013 1NE756I08066 1/1/6 ___________ 10 years 10.19 80 18-03-14 18-03-24 Series 2014 1NE756I08074
1/1/7 ____________ 10 years 9.7 200 20-06-14 20-06-24
Series 2014 1NE756108082 1/1/8 ____________ 10 years 9.55 100 13-11-14 13-11-24 Series 2014 1NE756108090 1/1/9 _____________ 10 years 9.55 200 17-11-14 15-11-24 Series 2016 1NE756108108 1/1/10 ___________ 10 years 8.79 220 22-07-16 22-07-26 Series 2016 1NE756l08116 I/i/il . ___________ 10 years 8.05 170 06-12-16 04-12-26 Series 2018 1NE756108124 1/1/12 ____________ 10 years 8.42 150 01-02-18 0102-28
Series 2018 1NE756108132 10 years 8.45 130 2102i8 21-02-28
Note - All the above-mentioned Commercial Papers are unsecured and are rated 'A1+' by
CARE & CRISIL and IPA for all the above-mentioned Commercial Papers being HDFC Bank Ltd.
EXHIBIT B
Details of TermLoan Facilities as on 31st December 2019
Bank Name Nature of Amount Principal Balance Maturity Repayment • facility/ sanctione Amount Amount Date Schedule instrumen d (Rs. In outstandin t Crore) g
(Rs. In ________________ __________ __________ Crore) ________ __________ _____________
Allahabad Bank Term Loan 12/31/202 Half Yearly ________________ __________ 300.00 300.00 - 2 ______________
ICICI Bank 3 TR 1 Term Loan 11/28/202 Quarterly ________________ __________ 200.00 200.00 - 1 ____________
ICICI Bank 3 TR 2 Term Loan 12/20/202 Quarterly ________________ __________ 200.00 200.00 - 1 ______________ ICICI Bank 5 term Loan 6/30/2021 Quarterly _________________ ___________ 233.33 233.33 -
ICICI Bank 6 Term Loan 12/31/202 Quarterly ________________ __________ 750.00 450.00 300.00 2 ______________ Indian Bank TL4 Term Loan 3/31/2023 Yearly
________________ _________ 100.00 100.00 -
Indian Bank TL4 Term Loan 5/29/2023 Yearly Tr 1 __________ 600.00 600.00 -
Induslnd Bank IL - Term Loan 9/14/2021 Quarterly• 3 __________ 437.50 43750 -
J&K Bank 5 Term Loan 9/30/2020 Quarterly _________________ ___________ 59.98 59.98 -
J&K Bank TL 6 Term Loan 6/29/2023 Quarterly ________________ __________ 250.00 250.00 -
JP Morgan TL 3 Term Loan 9/30/2022 Bullet Payment _________________ ___________ 500.00 500.00 -
Nole - All the above-mentioned Term Loan Facilities are rated 'AAA/Stable' by CARE & CRISIL.
Details of External Commercial Borrowings as on 31st December 2019
Bank Name Nature of Amount Principal Balance Maturity Repayment facility! sanctione Amount Amount Date Schedule instrumen d (Rs. In outstandin t Crore) g
(Rs. In _________________ __________ _________ Crore) _________ __________ _______________
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED BY THE BOARD OF DIRECTORS OF HDB FINANCIAL SERVICES LIMITED AT ITS MEETING HELD ON MONDAY, APRIL 15, 2019 AT 02:00 P.M. AT BOARD ROOM, 6th FLOOR, HDFC BANK HOUSE, SENAPATI BAPAT MARG, LOWER PAREL, MUMBAI -400013
"RESOLVED THAT pursuant to the Reserve Bank of India (RBI), circular no. RBI/2014-15/100 IDMD.PCD.04/14.01.02/2014-15 dated July 01, 2014, circular no. RBI/2017-18/43 FMRD.DIRD.2/14.0l.002/2017-18 dated August 10, 2017 and operational guidelines issued by Fixed Income Money Market and Derivatives Association of India (FIMMDA), as amended from time to time, be and is hereby approved by the Board for issuance of Commercial Paper (CP) on private placement basis, in one or more tranches, for an aggregate amount of Rs. 20,000 crore (Rupees Twenty Thousand Crore Only) for the Financial Year 2019 - 2020, within the overall limit of borrowing as approved by the members pursuant to Section 180(1)(c) of the Companies Act, 2013, from time to time on the date of issue;
RESOLVED FURTHER THAT the aggregate outstanding amount under commercial paper shall not exceed Rs. 12,500 crore (Rupees Twelve Thousand Five Hundred Crore Only) as approved by the board in its earlier meeting.
RESOLVED FURTHER THAT any of the Directors and Chief Financial Officer of the Company (collectively referred as the 'Authorized Signatories'), are hereby severally authorized to further sub-delegate its powers to any employee of the Company and to discuss, negotiate and finalize the terms and conditions for each tranche(s) of CPs with the investor(s), agree to such changes and modifications in the said terms and conditions as they deem fit;
RESOLVED FURTHER THAT the Authorized Signatories are hereby severally authorized on behalf of the Company to sign all concerned agreements, deeds, letters, documents and papers and to finalize terms and conditions for appointment of Issuing & Paying Agent and such other agencies as may be required and to do all such acts as may be required, for the proposed CP5 Issue;
RESOLVED FURTHER THAT the Authorized Signatories are hereby severally authorized on behalf of the Company to execute any such formal contract, agreements, applications, deeds, indemnities, guarantees, demand promissory notes and such other documents, as may be required for creation of requisite security for the CPs, for issue of CPs, for submitting the same with National Securities Depository Limited, Central Depository Services (India) Limited, in connection with allotment, dematerialization, listing of the proposed CPs and to do all such acts, deeds, matters and things, as they may in their absolute discretion deem necessary, proper or desirable and to settle any question, difficulty or doubt that may arise in order to give effect to this resolution;
RESOLVED FURTHER THAT the Authorized Signatories and / or Company Secretary of the Company, are hereby severally authorized on behalf of the Company to sign and file all such forms and returns with the Ministry of Corporate Affairs, Reserve Bank of India and such other authorities and to do all such acts, deeds and things as may be necessary and as they may in their absolute discretion deem necessary to comply with applicable provisions of the Compahies Act, 2013 and Rules made there under including applicable RBI4 8 (as may be amended from time to time);
U ( It Registered Office: Radhika, 2nd Floor, Law rtrvrangpura, Ahmedabad - 380 009.
.- /1 x
RESOLVED FURTHER THAT the common seal of the Company shall be affixed wherever necessary in presence of any of the aforesaid Authorized Signatories and / or Company Secretary of the Company;
RESOLVED FURTHER THAT a copy of the aforesaid resolutions certified to be true by any one of the Authorized Signatories and / or the Company Secretary of the Company be furnished to appropriate authorities for their records and necessary action thereon."
Certified True Copy For HDB FINANCIAL SERVICES LIMITED
Dipti K)4i*IeIwaI Company Secretary Membership No. A25592
a.Lending policy(contains showing overview of organisation. risk management, monitoring and collections):
PRODUCTS
The current product portfolio consists of Loans, Fee based products and BPO services.
Loans
EHIBIT G
The Company offers a wide range of loan products (secured and unsecured) to various customer segments. These include Consumer Loans, Enterprise Loans and Asset Finance.
Consumer Loans:
The Company provides loans for purchase of white goods (such as washing machines and refrigerators etc.),brown goods(such as televisions,audio equipments and similar household appliances etc.),digital products(such as mobile phones, computer/laptop etc.) and life style products.
The Company also provides loans to individuals for personal, family or household purposes
to meet their short or medium term requirements.
Consumer Loans Portfolioincludes:
• Consumer DurableLoan
Digital ProductsLoan
• GoidLoan
• AutoLoan
• Personalloans
• Loan against Mutual Fund units
Enterprise Loans:
Small & Micro Enterprises need funding, whether it is for the working capital of a big order or for setting up new machinery for faster production etc. The Company offers secured and
unsecu.red Loans to cater to the needs of these Enterprises.
Various loans offered to Enterprises include:
o Unsecured Businessloan
Loan againstProperty
Loan against LeaseRental
• Enterprise BusinessLoan
• AutoRefinance
• Loan againstsecurities
"It'
EHIBIT G
Asset Finance:
The Company offers loans for purchase of new & used vehicles and equipment's that generate income for the borrowers. The Company provides finance to a broad spectrum of customers including fleet owners, first time users, first time buyers and captive use buyers
Commercial Vehicle Loans: The Company provides loans for purchase of new and used commercial vehicles. The Company also offers refinancing on existingvehicles.
Construction Equipment Loans: The Company provides loans for purchase of new and used construction equipment. The Company also offers refinancing an existingequipments.
Tractor Loans: The Company provides loans for purchase of new and usedtractors.
Fee based products/Insurance Services:
The Company is a registered Corporate Insurance Agent havihg license from Insurance Regulatory & Development Authority of India (IRDAI). IRDAI has renewed Corporate Agency license of the Company for a period of 3 years from April 01, 2019 to March 31, 2022' The Company sells Life and General insurance products of HDFC Standard Life Insurance Company Limitedand HDFC Ergo General Insurance Company Limited respectively.The Company has obtained certificate to act asTelemarketer for Corporate Agent.
The Company has obtained AMFI Registration No. from Associatlons of Mutual Funds inlndia.
The Company distributes third party products.
Services:
Collection Services-The Company has acontract with HDFC Bank to run collection call centres and collect over dues from borrowers. The Company has set up 15 call centres across the country with a capacity of over 5,000 seats. These centers provide collection services for the entire gamut of retail lending products of HDFC Bank. The Company offers end to end collection services in over 750 locations through its calling and field supportteams.
Back office and Sales Support-The Company provides sales support services,back office,operations and processing support to HDFC Bank.
t '
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RISK MANAGEMENT
The Company is exposed to risk by the very nature of its business. These risks not only have a bearing on the Company's financial strength and operations but also its reputation. Keeping, this in mind, your Company has put in place'a Board approved risk strategy and policy whose implementation is supervised by the Board's Risk Committee. The committee periodically reviews risk levels and direction, portfolio composition, status of impaired credits amongst other aspects. The hallmark of the Company's risk management process function 'is its independence, with credit decisions being made by a credit underwriting vertical.The Company has well defined 'Key Risk Indicators (KRI)' for each key risk and the seare measured on a periodic basis to assess the effectiveness of the Company's risk mitigation strategy and allied processes.The key risks which are dimensioned and managed include:
• Credit Risk including Credit Concentration Risk
• Interest Rate Risk
• Business Risk
• Liquidity Risk
• Operational Risk
• Compliance Risk
• Reputation Risk
• TechnologyRisk
Credit Risk
This is the risk of loss arising from a default and is,therefore,also known as default risk.Your Company has distinct policies and processes for managing credit risk. Retail lending, given the granularity of individual exposures, is managed largely on a portfolio basis across various products to ensure credit quality and minimize loss from default. The factors considered while sanctioning retail loans include income,demographicsprevious credit history of the borrower and the tenor of the loan. Credit risk is also managed by capping exposures on the basis of borrower group/industry/credit rating grades. This is backed by portfolio diversification, stringent credit approval processes and periodic post-disbursement monitoring/remedial measures. Your Company has been able to ensure strong asset quality even under a challenging business' environment by stringently adhering to the a forementioned norms and institutionalizing processes.
EHIBIT c
Interest Rate Risk
Interest rate risk is the risk of changes in market interest rates and its impact on the Net Interest income (Nil). The balance sheet of the Company primarily consists of rupee assets (loan receivables) and liabilities, hence the movements in domestic interest rates cOnstitute the main source of interest rate risk.
Exposure to fluctuations in interest rates is measured primarily by way of gap analysis, providing a static view of the maturity and re-pricing characteristics o balance sheet positions. An interest rate gap report is prepared by classifying all assets and liabilities into various time period categories according to contracted maturities or anticipated re-pricing date.The difference in the amount of assets and liabilities maturing or being re-priced in any time period category,wouid then give an indication of the extent of exposure tO the risk of potential changes in the margins on new or re-priced assets and liabilities. Interest rate risk is further monitored through interest rate risk limits approved by the Asset Liability Committee.
Business! Strategic Risk
Business! Strategic risk is the current or prospective impact on the company's earnings, capital, reputation or standing arising from faulty business decisions, improper execution of decisions, or lack of responsiveness to industry, regulatory, economic or technological developmentswhen rolling out strategies.
The Company's management of this risk is guided by certain core principles,
1. Diversification - The Company constantly maintains a diversification in its business through various products, customer segments and geographies.
2. Balanced Growth - The Company strives to grow and gain market share, while maintaining asset quality and margins.
3. Prudent Provisioning-The Company seeks to provide for bad assets aggressively in order to maintain a healthy balance sheet.
Liquidity Risk
Liquidity Risk is the risk that a company may not be able to meet its short term financial obligations due to an asset—liability mismatch or interest rate fluctuations. Your Company's framework for liquidity and interest rate risk management is spelt out in its Asset Liability Management policy that is implemented, monitored and periodically reviewed by the Asset Liability Committee(ALCO).As a part of this process,the Company has established various
.., "i:1
• EHIBIT G
Board approved limits to mitigate both liquidity and interest risks. This is reinforced by a comprehensive stress testing programme covering both liquidity and interest rate risk.
The Liquidity Coverage Ratio(LCR) is a global minimum standard used to measure a company's liquidity position. LCR seeks to ensure that the Company has an adequate stock of unencumbered High-Quality Liquid Assets (HQLA) that can be converted into cash easilyand immediately to meet its liquidity need sunder a 30-day calendar liquidity stress scenario.
Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes,people,systems,or from external events. Operational Risk includes legal risk but excludes strategic and reputational risks.
Operational Risk is inherent in a company's day-to-day business activities. To contain this risk the company has implemented sound internal controls practices across all functions, processes and units. The Company has also instituted a comprehensive Operational Risk Management Framework defined as part of the Operational Risk Management Policy to identify, assess and monitor risks, strengthen controls, improve customer service and minimize Operational Risk losses.As guided by the approved Operational risk management policy the centralised operational risk management function manages this risk.TheOperational Risk Management Committee(ORMC), consisting of Senior Management of the Company has been constituted for implementation and monitoring of the Operational Risk Framework. The Committee is also responsible for reviewing of Operational Risk profile of the units, understand future changes and threats, and concur on areas of highest priority and related mitigation strategies.
The Business Units and support functions,are accountable for the operational risks and controls in the irrespective areas, which they manage under the policies, standards, processes, procedures as per the operational risk management framework of the company. Significant incidents reported are investigated to assess weaknesses in controls and identify areas for improvement to prevent their reoccurrence. The Company has a whistle blower policy, which is open to employees for raising their concerns, with full confidentiality, on any fraud, malpractice or any other unto ward activity or event.A well-documented Board approved Information Security policy has been put in place to address the Information Security risks.
Compliance Risk
Compliance Risk is defined as the risk of declension of your Company's reputation, leading to damage to its stature, legal or regulatory directives, or financial loss, on account of failure of compliance with applicable laws, rules and regulations. The Company has a Compliance Policy to ensure highest standard of Compliance.
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IA
EHIBIT G
The Compliance Officer provides for ensuring active compliance risk management and
monitoring and provides advisory services on regulatory matters The objective is to identify and reducing risk by ongoing testing on key regulatory areas and putting in place robust policies and processes. The products and processes are reviewed prior to the roll out to confirm adherence to regulatory norms are tested on an on-going basis for shortcomings.
The Company's policies are reviewed periodically and updated and seeks regular feedback on regulatory compliance from Branches, Risk, Finance and HR & Operation teams through self-certifications.
Reputation Risk
Reputation risk is the impairment of long term shareholder value resulting from a loss of confidence in the integrity of the Company caused by adverse publicity regarding the Company's business practice and associations, whether accurate or not, whether due to actual or perceived failure in risk management corporate governance, environmental, social
and ethical performance customer relationship, compliance and financial performance
Three key areas from which this can originate are poor customer service,adverse media coverage and compliance related issues. The company manages these through, good corporate governance practices, a strict code of conduct policy for its employees and an effective customer grievance redressal mechanism.
Technology Risk
The Company operates in an automated environment and makes use of technologies to support its operations. This throws up risks such as business disruption, risks related to information assets, data security, integrity, reliability and availability amongst others
The Company has put in a governance framework, information security practices and business continuity plan to mitigate information technology related risks.An independent information technology audit provides assurance on the management of information
technology related risks. The Company has a Business Continuity and Disaster Recovery plan that is periodically tested to ensure that it can meet any operational contingencies
There is an independent Information Security team that addresses information security related risks. A documented Board approved information security policy is put in place. In addition, employees periodically undergo information security training and sensitization exercises.
b.Classification of loans/advances given to associàtesentities/person relating to the board senior management ,promoters,others,etc : NIL