Hella India Lighting Ltd Management Discussions

The intense competition among the vendors has resulted in increased investment in R&D and implementation of high technology solutions in machine tools. Another major contributor to Indias growing reputation is the emergence of the market as a key innovator auto component and knowledge hub for many overseas firms. The new threat imposed by nCovid 19 has put another threat to humanity and industry as a whole.

MANAGEMENT PERCEPTION OF RISK & CONCERN

Risk Management is a key aspect of the "Corporate Governance Principles and Code of Conduct" which aims to improvise the governance practices across the Companys activities. Risk management policy and processes enable the Company to proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities.

The specific objectives of the Risk Management Policy are:

1. To ensure that all the current and future material risk exposures of the company are identified, assessed, quantified, appropriately mitigated, minimized and managed i.e. to ensure adequate systems for risk management.

2. To establish a framework for the companys risk management process and to ensure its implementation.

3. To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices.

4. To assure business growth with financial stability.

The Board of Directors of the Company periodically review and evaluate the risk management system of the Company so that the management controls the risks through properly defined network. Management is responsible for ensuring that risks are identified, analyzed, evaluated and mitigated. Management monitor and report on material risks identified through the internal and external audit process.

The Internal Audit program is aligned to the companys risk profile and is responsible for providing independent assurance in relation to the effectiveness of processes to manage particular areas of risk. The scope of internal audits risk-based program is agreed to as part of an annual plan which is refined as necessary

Head of Departments are responsible for implementation of the risk management system as may be applicable to their respective areas of functioning and report to the Board and Audit Committee.