Corporate governance

COMPOSITION OF THE BOARD

The Board has a strength of seven Directors. The Board comprises of Non- Executive Chairman, three Independent Directors (including Chairman), two nominee Directors, a Non- Executive Director and a Managing Director. The Non-Executive Chairman and Independent Directors bring strategic and independent judgment in the board's deliberation and decisions.

The Directors have wide experience in the field of Banking, Finance, Business Development, Taxation, Business Advisory, Audit and Risk Management.

The Composition of Board is as follows:

COMPOSITION OF VARIOUS BOARD COMMITTEES:

AUDIT COMMITTEE

NOMINATION AND REMUNERATION COMMITTEE

RISK MANAGEMENT COMMITTEE

IT STRATEGY COMMITTEE

CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE

STAKEHOLDERS RELATIONSHIP COMMITTEE

CAPITAL RAISING COMMITTEE

COMMITTEE OF DIRECTORS (OPERATIONS)

INTEREST RATE POLICY

VIGIL MECHANISM

NOMINATION & REMUNERATION POLICY

POLICY AGAINST SEXUAL HARASSMENT

POLICY FOR PRESERVATION OF DOCUMENTS

CSR POLICY

ESG POLICY

INTERNAL GUIDELINES ON CORPORATE GOVERNANCE

COOKIES POLICY

ARCHIVAL POLICY

CODE OF CONDUCT

ENTERPRISE RISK MANAGEMENT POLICY

POLICY FOR DETERMINATION OF MATERIALITY

POLICY FOR EVALUATION OF PERFORMANCE OF BOARD OF DIRECTORS

POLICY FOR FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

POLICY TO PROMOTE DIVERSITY OF BOARD OF DIRECTORS

POLICY ON RELATED PARTY TRANSACTIONS

CHANGE IN FRR-  JULY, 2022

CODE OF PRACTICES AND PROCEDURES FOR FAIR DISCLOSURE OF UNPUBLISHED PRICE SENSITIVE INFORMATION

CHANGE IN FRR-  APRIL, 2023

CO-LENDING POLICY

POLICY ON APPOINTMENT OF STATUTORY AUDITOR

PRINCIPLES GUIDING INTEREST RATE DETERMINATION

Interest rate being charged is based on various factors like cost of funds, margin, risk premium, un-allocable expenses among other things. As far as risk premium is concerned, it will be based on variables like Profile, underlying security, tenure, other terms and conditions etc.

Asset Liability Committee (ALCO) has been authorised by Board for the purpose of laying out appropriate internal principles and procedures in determining interest rates and other charges. ALCO comprises of Head of the organization along with relevant head of the departments. ALCO has product pricing as one of the responsibilities among other things authorised by Board.

The Board of Directors of the Company or a Committee drawing power from the Board, while fixing interest rates shall be guided by this document on Interest Rate Determination. In addition to basic cost elements, the Board or the Committee shall be guided by the market conditions and various rules and regulations, if any, prescribed by the Reserve Bank of India or such other competent authority from time to time.

Interest charged for various products / Schemes shall have the following components:

1. Base Rate
2. Approach for Gradation of Risk/Risk Premium
3. Penalty Charges

1 Base Rate

3. Penalty Charges

• Base Rate represents the rate chargeable under every product / Scheme irrespective of the risk weight attached to the product / schemes or the type of scheme. Basic Interest shall be arrived at after considering the following aspects:

  1 Cost of Funds

  2 Overhead Cost

  3 Return on Capital Employed

  • This component represents the interest and other incidental charges payable by the Company for servicing the borrowed funds deployed by the Company. Major contributing factor to this component includes Interest on Bank Borrowings, interest on other financial instruments and other incidental charges thereto.
  • This represents the Employee cost to the Company and other operating & miscellaneous overheads.
  • After considering the above cost factors, the Board / committee shall take into consideration a fair return on capital employed which is to be generated by the management for servicing the owners' capital employed in the business.
  • Thus the basic interest rate for the gold loan schemes shall be determined by considering the cost of funds, overhead cost and fair return on capital employed.
• 2. Approach for Gradation of Risk/Risk Premium
• Risk Premium shall be determined by taking into account the degree of risk involved in loans under each product / scheme. While the rate shall be lower for the schemes where advance amount vis-Ã -vis security available is the lowest, it shall be increased for schemes offering higher advance amount for the same security. Further, irrespective of the product /scheme, the risk interest shall also be determined after taking into account the period of the loan as the incidence of risk goes up with the passage of time. Profile of the borrower will also affect premium being charged based on either his repayment capacity or his track record on previous loans with the company, other financial commitments, geography (location) of the borrower, end use of the loan as represented by the underlying asset etc. Such information is collated based on discussions with the borrower, reports from credit bureau wherever necessary etc. and field inspection by the Company officials.
• Loans outstanding for more than due date shall be charged penal interest in order to compensate for the opportunity cost of cash flows and also to discourage liability getting exceeded the realizable value of security.

Interest Rate Policy

TERMS AND CONDITIONS OF APPOINTMENT OF AN INDEPENDENT DIRECTOR

• The tenure of appointment shall be subject to the provisions of the Companies Act 2013 and the applicable RBI guidelines.
• The appointment is also subject to the formal election at the next Annual General Meeting (AGM) as well as the Memorandum and Articles of Association (The “Memorandum” & “Articles”) of the Company, as amended from time to time.

2. Role, Duties, Responsibilities and Expectations

• The primary role of the members of the Board is to provide guidance and to act in what they believe to be the best interests of the Company and its shareholders. The role, duties and responsibilities shall be in line with the applicable provisions and Schedule IV of the Companies Act, 2013 read with its Rules, Articles of Association, Listing Agreement and corporate code of conduct.

3. Time Commitment:

• The Independent Director needs to confirm that, he/she is able to allocate sufficient time to the Company to discharge the required duties and responsibilities.

4. Remuneration:

• The Independent Director will be paid sitting fees as approved by the Board in line with the provisions of the Companies Act, 2013 for every Board or Committee meetings attended; subject to appropriate deduction of applicable taxes. The Company will also reimburse the Independent Director for travel, hotel and all reasonable and properly documented expenses that are incurred.

5. Disclosure of Interest:

• It is accepted and acknowledged that the Independent Director may have business or professional interests other than those of the Company and has declared all and any conflicts of interests that are apparent or that the Independent Director is aware of.
• If, in future, any potential conflicts of interests arise, these should be disclosed to the Company as soon as possible.
• Based on the information provided to the Company, the Company can come to the determination that the Independent Director is an independent Board member and will remain so, unless otherwise determined at a later date.

6. Confidentiality:

• All information acquired during the Independent Director’s appointment is confidential to the Company and should not be disclosed to third parties or used for any reason other than in the interest of the Company, either during the NEID’s appointment or later, without prior clearance from the Company.
• Attention is also drawn to the legal and regulatory requirements as they apply to the Company and to its Board members with regard to the disclosure of ‘insider’ information. Consequently, any public or press statements should be avoided, if that will risk a breach of these requirements or does not have prior clearances from the Board of the Company.
• Nothing in this clause shall prevent the Independent Director from disclosing information which he/she is required to disclose by law, provided that the disclosure is made in accordance with the provisions of the relevant law.

7. Governing Law

• The Contract of Appointment is governed by and will be interpreted in accordance with Indian law and Independent Director’s engagement shall be subject to the jurisdiction of the Indian courts.

THE RESERVE BANK - INTEGRATED OMBUDSMAN SCHEME, 2021

Levy of foreclosure charges/pre-payment penalty on Floating Rate Loans by NBFCs

RBI-Ombudsman-Scheme-Form

RBI Ombudsman Clarfication

Salient Features NBFC Ombudsman Scheme - English

Salient Features NBFC Ombudsman Scheme - Gujarati

Salient Features NBFC Ombudsman Scheme - Hindi

Salient Features NBFC Ombudsman Scheme - Kannad

Salient Features NBFC Ombudsman Scheme - Malayalam

Salient Features NBFC Ombudsman Scheme - Marathi

Salient Features NBFC Ombudsman Scheme - Tamil

Salient Features NBFC Ombudsman Scheme - Telugu

Mr. Sumit Kakkar, Nominee Director, resigned from the Board of Directors of the Company w.e.f. 13th March, 2020

Mr. Dilip Sadarangani, Independent Director, retired from the Board of Directors of the company w.e.f 8th September 2019

Mr. Ganesh Sankaran, Nominee Director, resigned from the Board of Directors of the company w.e.f 15th February 2019

Mr. Rajagopalan Santhanam, Nominee Director, resigned from the Board of Directors of the company w.e.f 20th December 2018

Mr. Suresh Kumar, Independent Director, resigned from the Board of Directors of the company w.e.f 19th June 2017.

Mr. Ujwal Thakar, Independent Director, resigned from the Board of Directors of the company w.e.f 5th August 2016.

Q3 FY 20

June 2020

September 2020

December 2020

March 2021

June 2021

September 2021

December 2021

March 2022

June 2022

September 2022

December 2022

March 2023

June 2023

Anil Kothuri-MD & CEO

C.V.Ganesh- Chief Financial Officer

S. Rajaraman- Company Secretary & Compliance officer

Anila Rajneesh

Jagadeesh Rao 

K Sureshkumar

Ramachandra R

Shardul Kadam

K. Siddharth

Vikas Mohan Srivastava

Company has 3 Selling and Servicing Agents, which are as follows:

1. New Opportunity Consultancy Private Limited (NOCPL)

2. Svasti Microfinance Private Limited

3. Si Creva Capital Services Private Limited (Kissht)

DEBENTURE TRUSTEE OF FEDBANK FINANCIAL SERVICES LIMITED.

For Secured Non convertible Debentures & Subordinate debt – Non Convertible Debentures

For Principal Protected Market Linked Debentures -- Non Convertible Debentures

Customer Education Literature on SMA/NPA

Fair Practice Code - English

Fair Practice Code - Gujarati

Fair Practice Code - Hindi

Fair Practice Code - Kannada

Fair Practice Code - Malyalam

Fair Practice Code - Marathi

Fair Practice Code - Tamil

Fair Practice Code - Telugu