Annual Report 2012-13 - India Infoline Finance Limited

obust and integrated Risk Management system to ensure
aggregated, mitigated and monitored effectively.
Your Company has Risk Management Committee in
the Company. The Company has put in place policies
and standard operating procedures for each segment
of lending business. All the loan proposals are routed
through a very stringent risk assessment process. Team
proposals at various stages and during the assessment
process all the relevant information from formal and
informal channels are collected to arrive at an appropriate
decision. Further, the credit proposals are considered
and approved by the multi level Credit and Investment
Committees consisting of directors of the board / HODs.
Your Company’s internal policies are more conservative
and stringent than the minimum regulatory requirement.
Your Company also follows best industry practices in
the area of risk management to reduce the possibility
of losses. For portfolio risk management, various caps
are stipulated based on company’s risk appetite. Your
ensure that concentration risk in terms of single borrower,
group, industry and geography can be mitigated.
Your Company keeps close track of macro economic
development including changes and its impact on
movement in interest rate, foreign exchange rate and
liquidity position in the market. Your Company has Asset
Liability Management Committee (ALCO) and Board Level
Supervisory Asset-Liability Committee in place, which
periodically reviews SBR, borrowing mix, liquidity, funding,
lenders and product mix coupled with prudent lending
practices ensure that adequate funding is made available
to your Company at all times. For managing operational risk,
policies and procedures in alignment of your Company’s
business and needs. It is continuously monitored through
effective control system. Checks and balances are in
external communication system, your Company ensures
that prompt action is taken in case of need to minimize the
losses. To minimize losses from information security risk,
your Company focuses on up gradation of IT infrastructure
in line with the best emerging practices.
The Company has invested in ensuring that its
internal audit and control systems are adequate and
commensurate with the nature of our business and the size
of our operations. The Company has retained a reputed
The Company also had in state a few specialized Audit
critical functions such as KYC process, branches audits,
and loan documentations audits etc. The Company also
The internal team undertakes special situation audits
and follows up on implementation of Internal Auditors’
recommendations. Besides this the company engages
specialists/consultants to undertake certain focused
areas such as credit audit, vigilance audits etc. The
/ implementations are reviewed by the top management
and Audit Committee at regular intervals. The internal
processes have been designed to ensure adequate
checks and balances at every stage. The Company also
by regulatory authorities and the reports are submitted to
the regulators periodically.
Corporate Governance:
The Company has fully complied with the Corporate
Governance Guidelines for NBFCs issued by Reserve
Bank of India vide circular No.DNBS(PD) CC No.
94/03.10.042/2006-07 dated May 8, 2007. In accordance
with the said Corporate Governance Guidelines, the
Company has put in place the following committees and
ensures best corporate practices to increase the investors
complied with all the norms prescribed by the Reserve
Bank of India (RBI) including the Fair practices, Anti money
laundering & know your customer (KYC) guidelines.
Audit Committee:
As per the requirements of section 292A of the Companies
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