Page 157 - Demo

STATUTORY REPORTS
relateD Party tranSactiOnS anD CONTRACTS/ARRANGEMENTS
there was no materially significant related party transactions entered between the Bank and its related parties, except for those disclosed in the financial statements.
All the contracts/arrangements/transactions entered by the Bank with the related parties during financial year ended March 31, 2020 were on arm’s length basis; accordingly, the disclosure of particulars of contracts / arrangements entered into by the Bank with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 in Form AOC-2 is not applicable.
the Bank has formulated a policy on ‘Materiality of Related party transactions’ which forms part of the policy on dealing with ‘Related party transactions’ which is available on the website of the Bank at https://www. ujjivansfb.in/corporate-governance-policies.
CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
As per Section 135 (1) of the Companies Act, 2013 “every company having net worth of rupees five hundred Crores or more, or turnover of rupees one thousand Crores or more or a net profit of rupees five Crores or more during the immediately preceding financial year shall constitute a CSR Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director”.
pursuant to the above, the Bank has duly constituted CSR Committee with three Directors and all of them are Independent Directors.
the Bank has formulated CSR policy which is available on the website of the Bank at https://www.ujjivansfb.in/ corporate-governance-policies.
The detailed Annual Report on the CSR activities for the financial year ended March 31, 2020 is annexed to this Report as Annexure-2.
cOnServatiOn Of energy, technOlOgy aBSOrPtiOn, fOreign eXchange earningS anD OutgO
energy efficiency and conservation is a part of our business planning. the Bank’s systems and processes are designed in manner to ensure optimum energy usage by continuous monitoring of all forms of energy and augmenting the efficiency of operations.
A number of initiatives was taken by the Bank during financial year 2019-20 to save electricity consumption. Some of the key initiatives were designing Bank’s branches and offices in a manner to ensure maximum utilisation of day light, after office hours all employees
who need to work in a branch sit in a common area and all the non-essential lights, ACs, etc. are checked and switched off. AC/lights installed at meeting rooms etc. in branches as well as Head office and Regional offices are to be switched off when the rooms are not occupied. ACs are switched off after 6:30 pM, and all ACs are maintained at 24 degree or above in branches.
The Bank endeavors to shut down all branches on time. All these initiatives have resulted in considerable electricity savings. Moreover, it procures star rated electrical equipment, auto monitors, auto switch timers and leD lights are installed for cost efficient operations in the Bank.
Bank has also launched Vehicle Finance Business for funding of electric vehicles which are zero polluting and energy efficient vehicles.
there was no Foreign exchange inflow however there was foreign exchange outflow of $222,404 during the financial year ended March 31, 2020.
riSk management POlicy
the Risk Management Committee ("RMC”) of the Bank consists of experienced directors from diverse background who bring in the best risk practices to the Bank. The RMC, comprises of 4 (Four) Directors out of which 2 (Two) are Independent Directors.
the RMC fulfills its roles and duties through various management level risk committees such as Credit Risk Management Committee (CRMC), Operational Risk Management Committee (oRMC) and Asset liability and Market Risk Committee (ALCO). These committees are entrusted with the task to identify measure, mitigate and monitor various risks.
the frequency, members and the quorum required for these management level committees is furnished in the respective risk management policies. These committees meet at regular intervals to assess and monitor the level of risk pertaining to market, credit and operations.
the Bank has identified the following risks which are material in nature and therefore may threaten the existence of the Bank:
1) Credit Risk
2) Operational Risk 3) Market Risk
In addition to the above primary risks, the Bank also monitors the following second order or derived risks using specialised methodologies. The Bank has on boarded specialised personnel for monitoring the same
155