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policy-on-risk-management

Policy on Risk Management

policy on risk management

Preamble

The Risk Management at Khadim India Limited has been developed to protect the interests of shareholders and others who directly or indirectly associated with Khadim India Ltd. by minimizing threats or losses, and identifying and maximizing opportunities for best interest of the Company. This policy of Risk Management is aimed to develop an approach to identify, assess and manage risks in financial, operational and project based areas in timely manner and in compliance with the provisions of Sections 134(3) (n) of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The strategic objectives of this policy are to

  1. Protect and enhance the assets and brand value of the company.

  2. Contribute towards more efficient use / allocation of different resources within the organization.

  3. Provide a framework that enables future activities to take place in a consistent and controlled manner.

  4. Develop an effective and dependable corporate governance framework.

Applicable date:

The Risk Management Policy shall come into force on and from the date, the Board of Directors at a meeting adopted it.

Broad Principles:


Risk Identification is obligatory on all vertical and functional heads of the Company who with the inputs from their team members are required to report the material risks to a management committee defined as “Business Process and Risk Management Committee” ( The Committee) constituted under the provisions of Companies Act, 2013 and Clause 21 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Committee shall include CMD, CFO, Company Secretary, Head Internal Audit and other management personnel as members.

This policy intends to lay down guiding principles on proactive planning for identifying, analysing and mitigating all material risks, both external and internal, and covering operational, financial and strategic risks.

The role of the Committee shall include the evaluation of risk management systems, the examination of the risk matrix, assessing the mitigation measures and suggesting improvements and greater risk mitigation measures, and examination in detail the business processes which may carry risks.

The Board of Directors of Khadim India Ltd. shall be responsible for framing, implementing and monitoring the risk management plan under Clause 17 (9)(b) of the SEBI (LODR) Regulations, 2015 ). Accordingly, the Risk Management Committee shall have to identify, manage and mitigate the risk and the minutes of all meetings of Risk Management Committee have to be placed before the Board of Directors for their knowledge and further directives.

Policy to Management & Mitigate Risks

The assessment and addressing of various risks shall be carried out considering the following key steps for clear understanding, reviewing, structured reporting and addressing.

  1. Use of risk assessment techniques:

  1. Questionnaire and checklist.

  2. Collection and sharing of ideas and discussion of the events that could impact the objectives, stakeholder expectations or key dependencies.

  3. Physical inspections and audit of compliances.

  4. Flowcharts of the activities and dependency analysis.

  5. Forecasting etc.

  1. Risk Identification : if there is a material change in circumstances or a consequence that may occur, and whose occurrence, if it does take place, has significant harmful or negative impact on the achievement of the organization’s business and goal.

  2. Risk description : Understanding the nature and quantum of risk and its likely impact ,both financial and non-financial, and plan for possible mitigation measures.

  3. Risk Estimation : The process for estimating the cost of likely impact either by quantitative, semi-quantitative or qualitative approach in terms of the probability or occurrence and the possible consequences.

  4. Risk Reporting :

Managers must report all new risks and changes to existing risks or probable risks in the respective functional areas to their immediate supervisor or vertical head or functional head, as soon as the manager has identified the risk. The supervisor or vertical head will in turn report all material and new risks and changes to existing risks with the plan to mitigate with the time line for implementation to the Committee. The Committee has to update and seek advice to the members of Audit Committee and Board of Directors as well. The Committee shall also monitor the mitigation process and ensure control. To communicate to the stakeholders on regular basis as part of Corporate Governance.

  1. Risk Mitigation : A well-defined and thorough reviewed strategic plan duly approved by the Committee and the members of the Board of Khadim India Ltd. This has to be implemented in a structured way with the requisite changes in the existing system or practices within a time line to achieve the desired goal. The risk mitigation plan shall be reviewed and monitored by the Internal Audit of Khadim India Ltd. and the progress of implementation shall be reported to the Audit Committee and Board Members on regular basis.

This risk assessment and management policy shall subject to change and modification, if needed, considering the dynamics of operations, business plans and strategy of managements from time to time. The Board of Directors before implementation shall approve all changes in this policy. The amended policy has to be uploaded in the website of Khadim India Ltd.

Registered Office:

Kankaria Estate, 5th Floor, 6, Little Russell Street, Kolkata – 700 071, West Bengal, INDIA

For queries and grievances contact:

compliance@khadims.com