The Board of Directors of the Rubber Products Limited (the Company) has adopted the following policy and procedures with regard to risk management as
defined below. The Company is in the process of forming a Risk Management Committee. The Board may review and amend this policy from time to time.
This policy is framed based on Listing Agreement entered by the Company with the Stock Exchanges and to facilitate setting up a framework for risk
assessment and minimization procedures.
"Audit Committee" means Committee of Board of Directors of the Company constituted under the provisions of the Companies Act, 2013 and the
"Board of Directors" or “Board” in relation to a Company, means the collective body of Directors of the Company. [Section
2(10) of the Companies Act, 2013]
"Policy" means Risk Management Policy.
REGULATORY FRAMEWORK/ REQUIREMENT
Risk Management Policy is framed as per the following regulatory requirements:
Clause 49 of the Listing Agreement
Key functions of the Board
The Board should fulfill certain key functions, including:
a. Reviewing and guiding corporate strategy, major plans of action, risk policy, annual budgets and business plans; setting performance objectives;
monitoring implementation and corporate performance; and overseeing major capital expenditures, acquisitions and divestments.
i. Ensuring the integrity of the company’s accounting and financial reporting systems, including the independent audit, and that appropriate systems of
control are in place, in particular, systems for risk management, financial and operational control, and compliance with the law and relevant standards.
49 (III) D. Role of Audit Committee
The role of the Audit Committee shall include the following:
11. Evaluation of internal financial controls and risk management systems;
49 (VI). Risk Management
A. The company shall lay down procedures to inform Board members about the risk assessment and minimization procedures.
B. The Board shall be responsible for framing, implementing and monitoring the risk management plan for the company.
C. The company shall also constitute a Risk Management Committee. 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.
49 (II) D- Information to be placed before Board of Directors (Annexure - X the Listing Agreement)
14. Quarterly details of foreign exchange exposures and the steps taken bymanagement to limit the risks of adverse exchange rate movement, if material.
Companies Act, 2013
1. Provisions of the Section 134(3)
There shall be attached to financial statements laid before a company in general meeting, a reportby its Board of Directors, which shall include—
(n) a statement indicating development and implementation of a risk management policy forthe company including identification therein of elements of risk,
if any, which in theopinion of the Board may threaten the existence of the company.
2. Provisions of the Section 177(4)
Every Audit Committee shall act in accordance with the terms of reference specified in writing bythe Board which shall, inter alia, include,—
(vii) evaluation of internal financial controls and risk management systems.
Schedule IV [Section 149(8)] - Code for Independent Directors
II. Role and functions:
The independent directors shall:
(1) help in bringing an independent judgment to bear on the Board’s deliberationsespecially on issues of strategy, performance, risk management, resources, keyappointments and standards of conduct;
(4) satisfy themselves on the integrity of financial information and that financialcontrols and the systems of risk management are robust
The Rubber Products Limited being a listed company is required to adhere to theregulations made both by the Companies Act, 2013 and Clause 49 of the
ListingAgreement governed by the Securities and Exchange Board of India (SEBI). Where anystipulation is common between the regulations, more stringent of
the two shall becomplied with.
In view of the above provisions and any other applicable section & provisions,the Company had adopted the following Risk Management PoliS
The purpose of the risk management committee of the Board of Directors of the Company shall be to assist the Board with regard to the identification,
evaluation andmitigation of operational, strategic and external environment risks. The Committee has overallresponsibility for monitoring and approving the
risk policies and associated practices of the Company.
The risk management committee is also responsible for reviewing and approving risk disclosurestatements in any public documents or disclosures.
The majority of Committee shall consist of members of the Board of Directors. Senior executives ofthe company may be members of the said Committee but the
Chairman of the Committee shall be amember of the Board of Directors.
Meetings and Quorum
The quorum necessary for transacting business at a meeting of the Committee shall be two members.
The Committee shall have free access to management and management information. The Committee,at its sole authority, may seek the advice of outside experts
or consultants where judged necessary.
Terms of reference
i. The risk management committee shall annually review and approve the Risk ManagementPolicy and associated frameworks, processes and practices of the
ii. The risk management committee shall ensure that the Company is taking the appropriatemeasures to achieve prudent balance between risk and reward in
both ongoing and newbusiness activities.
iii. The risk management committee shall evaluate significant risk exposures of the Company andassess management's actions to mitigate the exposures in a
timely manner (including one-offinitiatives, and ongoing activities such as business continuity planning and disaster recoveryplanning & testing).
iv. The risk management committee will coordinate its activities with the Audit Committee ininstances where there is any overlap with audit activities
(e.g. internal or external audit issuerelating to risk management policy or practice).
v. The risk management committee shall make regular reports/ recommendations to the Board.
vi. The risk management committee shall review and reassess the adequacy of this Charterannually and recommend any proposed changes to the Board for
This Policy will be communicated to all concerned persons of the Company and shall be placed on thewebsite of the Company at www.rubpro.com