Risk Management Policy

This document lays down the framework of Risk Management at Hindustan Colas Private Limited (hereinafter referred to as the ‘Company’ or ‘HINCOL’) and defines the policy for the same. This document shall be under the authority of the Board of Directors of the Company. It seeks to identify risks inherent in any business operations of the Company and provides guidelines to define, measure, report, control and mitigate the identified risks. 

Legal Framework
The provisions of Section 134(3)(n) of the Companies Act, 2013 necessitate that the Board’s Report should contain 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. 
Further, the provisions of Section 177(4)(vii) of the Companies Act, 2013 require that every Audit Committee shall act in accordance with the terms of reference specified in writing by the Board which shall inter alia include evaluation of risk management systems. 
In line with the above requirements, it is therefore, required for the Company to frame and adopt a “Risk Management Policy” (this Policy) of the Company 
Definition of Risk

The term, “Risk” does not find any specific definition under the Act. However, as per Business Dictionary (www.businesdictionary.com), risk can be defined as a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through pre-emptive action.  

Type of Risks for Company
Risks are categorized mainly of three types: Critical, Cautionary and Acceptable. Risk Management Policy and Risk Management Framework have been developed to include the key categories i.e. Marketing, Operations and Human Resources etc. 
Purpose and scope of the Policy

The main objective of this Policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the Company’s business. In order to achieve the key objective, this Policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk related issues.The specific objectives of this Policy are:

  • To identify and assess various business risks arising out of internal and external factors that affect the business of the Company 
  • To work out methodology for managing and mitigating the risks. 
  • To establish a framework for the company’s risk management process and to ensure its implementation. 
  • To enable compliance with appropriate regulations, wherever applicable, through the adoption of best practices. 
  • To assure business growth with financial stability. 
Implementation of the Policy

Generally every staff member of the Organisation is responsible for the effective management of risk including the identification of potential risks. Management is responsible for the development of risk mitigation plans and the implementation of risk reduction strategies. Risk management processes should be integrated with other planning processes and management activities.


The policy shall be reviewed from time to time to ensure that it complies fully within the legislation.


This Policy can be modified at any time by the Board of Directors of the Company.