UNITE
ECH LIIMITED
D
R I S K M A N A G E M EN T P O L I C Y
PHI
ILOSPHY
Unitech is committed for conducting its business
b
based on the highest
h
stand
dards of corp
porate
omotes a culture that is based on the principles of good corp
porate
goverrnance. The Company pro
goverrnance – inte
egrity, equity
y, fairness, in
ndividual acco
ountability an
nd commitme
ent to values
s. This
policy
y is f r a m e d to ensure sustainable business gro
owth with stability and to
t promote a proactive
e approach in
n reporting, evaluating
e
an
nd resolving risks
r
associatted with the business.
OBJ
JECTIVES
S
1 To establish a framew
1.
work for the
e Company’s R isk Manag
gement proce
ess and to ensure
e
mentation.
its implem
2 To ensuree that all the current an
2.
nd future ma
aterial risk exposures
e
of the compan
ny are
identified,, assessed, quantified, appropriately
a
mitigated, minimized
m
an
nd managed i.e to
ensure ad
dequate syste
ems for risk management.
m
.
3 To enable compliance with apprropriate regu
3.
ulations, whe
erever applic
cable, throug
gh the
adoption of best practiices.
IDENTIFICA
ATION OF RISKS
Mark
ket Risks : Price, Customer tastes, loc
cation, sentim
ments, preferrences, comp
petitors.
Macroeconomic Risks: Fluctuation in Inte
erest Rates. Foreign Exch
hange Rates, Inflation.
ulatory Risks
s: changes in
n Tax/Tariff Regulations,
R
Building plan
ns/environme
ent clearance
es,
Regu
Proje
ect Executio
on Risks: Ris
sks associated to time, co
ost, quality & project deliv
very Managem
ment.
p
is in compliance
c
w
with
the revis
sed Clause 49
9 of the Listting Agreeme
ent which req
quires
This policy
the Company
C
to lay
l
down pro
ocedure for risk
r
assessme
ent and proce
edure for risk
k minimization.
t
Company
y and the Audit
A
Comm
mittee shall periodically
p
r
review
The Board of Directors of the
e
the risk management syste
em of the Co
ompany so that
t
the man
nagement co
ontrols
and evaluate
the risks through properly
p
defin
ned network.
The Head
of
De
epartments (HODs)
all
sha
be
respo
onsible
for
implementation
of
the
e
risk
em as may be applicable
e to their res
spective area
as of function
ning and report to
management syste
oard and Aud
dit Committee
e.
the Bo
CONSTITUTION OF RISK MANAGEMENT COMMITTEE
The Risk Management Committee shall be constituted by the company consisting of such
number of Directors (executive or non-executive) and Senior Executives as the Board may think fit.
The majority of Committee shall consist of Directors. The Chairman of the Committee shall be a
Director.
ROLE OF THE BOARD
 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.
 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;
 The Board shall ensure that:

the appropriate systems for risk management are in place;

an appropriate accountability framework is working whereby any delegation of risk is
documented and performance can be monitored accordingly;

risk
management
is
integrated
into
board
reporting
and
annual
reporting
mechanisms;
DISCLOSURE IN BOARD’S REPORT
The Board’s Report 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.
REVIEW
This policy shall be reviewed as may be deem fit by Board of Directors to ensure it meets the
requirements of legislation & the needs of organization.