Risk Management Policy

This document lays down the framework of Risk Management at Savita Oil Technologies Limited hereinafter referred to as the ‘Company’) and defines the policy for the same. It seeks to identify risks inherent in any business operations of the Company and lays down the various mitigation methods which are periodically reviewed and modified in a manner commensurate with the size and complexity of the business.

The Risk Management Policy has been framed pursuant to the provisions of the Companies Act, 2013 (‘the Act’) read with applicable rules, if any and the applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 [including amendments thereof, from time to time].

The objectives of Risk Management Policy inter-alia include:

• To assess risks to the achievement of key business objectives by identifying internal and external risks specifically faced by the Company, including financial, operational, sectoral, sustainability, information, cyber security risk or any other risks as may be determined by the Committee from time to time;
• To ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business;
• To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices;
• To identify and implement measures for risk mitigation including systems and processes for internal control of identified risks;
• To develop and implement Business Continuity Plan;
• Any other matter related to the above and the growth of the Company in the domain of risk management;
• An enterprise-wide risk management framework is applied in a manner such that the effective management of risks at different levels and different functions is an integral part of every employee's job.

The Risk management policy will be channelized through the Company’s Risk Management Committee (“the Committee”) which shall be responsible for strategizing the policy and provide periodic feedback to the Board towards the implementation of the Risk Management Policy;

For fulfilling its responsibilities besides the ones noted above, the Committee will keep insight on the requirements of sound corporate governance and review periodic reports from identified full time executives in relevant areas identified from time to time;

The Committee shall be constituted by the Board as per the requirement of the law and the Board shall re-constitute the Committee as and when required;

The Committee will have the oversight of the Risk management delivery framework of the Company.

The Risk Management Committee shall meet at such frequency as required under the law. The Quorum for the meeting of the Committee shall be a minimum of two members or one-third of the Members of the Committee, whichever is higher.

• The Risk Management Committee to periodically assess risks involved in effective execution of business strategy and review key leading indicators in this regard;
• Oversee implementation of policy & evaluate adequacy of risk management systems;
• Review/give recommendation to the Board about framing, implementing and monitoring of the risk management plan, if any of the Company;
• The Committee shall evaluate significant risk exposures of the Company and assess management's actions to mitigate the exposures in a timely manner;
• The Committee shall review and reassess the adequacy of this Policy once in every two (2) years and recommend any proposed changes to the Board for approval;
• The Committee may inform the Board about the nature and content of its discussions, recommendations and actions to be taken;
• The Committee can seek information from any employee, obtain outside legal or other professional advice and secure attendance of outsiders with relevant expertise, if it considers necessary;
• The Committee will be responsible for such other items as may be prescribed by the applicable laws or the Board in compliance with applicable laws.

To identity and assess material business/operational risks (both internal & external), the Company defines risks and prepares risk profiles considering its business plans and strategies. This involves providing an overview of each material risk, assessing the risk level and preparing action plans to address and manage the risk.

The Company majorly focuses on the following types of risks:

• Raw Material/Supply Chain Risk
• Business/Competition/Pricing Risk
• Foreign Exchange Risk
• Operational Risk
• Quality/Control Risk
• Human Resource/IR Risk
• Legal/Regulatory/Compliance Risk
• Economic/Environmental Risk
• Cyber/Data Security/IT Risk

Involve all functions in the overall risk identification and mitigation exercise.

The Committee shall have access to all information necessary to fulfil its responsibilities. It has the powers to seek information from any employee, obtain outside legal or other professional advice and secure attendance of outsiders with relevant expertise, if it considers necessary.

The Committee may in its judgment periodically commission risk management analysis of the Company.

The Board will review the risk management status of the Company, based on the recommendations of the Committee preferably once in a year;

Adequate disclosures pertaining to the risks (including commodity risks) being faced by the Company, may be made as per the materiality criteria defined in the ‘Policy for determination of materiality for disclosure of events or information’ of the Company.