Corporate Governance refers to the way that corporate power is exercised by an organization in the management of its portfolio of assets and resources, with the objective of maintaining and increasing shareholder value and satisfaction of other stakeholders in the context of its mission.
It thus translates into a balance between economic and social goals, and between individual and collective aims, while encouraging efficient use of resources and higher levels of accountability.
Ess Kay's stand on Corporate Governance relates to the adherence to the highest level of transparency, accountability and fairness, in all areas of its operations and in interactions with its stakeholders.
Our strong observance to Corporate Governance has allowed us to be better organized, plan our goals and strategies better and fulfill our processes more efficiently, making us stronger and more competitive. It has helped us to create credibility to our names and ensure efficient company management and administration.
The Reserve Bank of India (RBI) has issued guidelines on Fair Practices Code for Non Banking Finance Companies (NBFCs) thereby setting standards for fair business and corporate practices while dealing with their customers.
The aim of adopting these practices is to have a transparent trade with customers and company with strong customer grievance redressal mechanism to be placed and also to comply the regulatory guidelines prescribed by RBI from time to time and shall make appropriate modifications if any necessary to this Code to conform to the standards so prescribed.
All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
Loan application forms should include necessary information which affects the interest of the borrower to bring transparency and fair practice. The loan application form shall contain the checklist containing list the documents required to be submitted along with the application form.
After receipt of application form from borrower, acknowledgement receipt clearly mentioning the time frame within which loan applications will be disposed of, shall be handed over to the borrower.
The amount of loan sanctioned along with the terms and conditions including annualized rate of interest and method of application thereof, shall be conveyed in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise,and accepted copy these terms and conditions by the borrower shall be kept on record. Penal interest charged for late repayment in bold in the loan agreement.
Copy of the loan agreement, preferably in the vernacular language as understood by the borrower, along with a copy each of all enclosures quoted in the loan agreement shall be furnished to all the borrowers at the time of sanction / disbursement of loans.
Notice to the borrower shall be given in the vernacular language as understood by the borrower of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges etc. and it shall be also ensured that changes in interest rates and charges are effected only prospectively. A suitable condition in this regard shall be incorporated in the loan agreement.
Post-disbursement supervision of all loans shall be in accordance with normal business practice, the terms of sanction and the guidelines issued by the Reserve Bank of India from time to time.
Decision to recall / accelerate payment or performance under the agreement shall be carried only in consonance with the loan agreement.
All securities on repayment of all dues or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim which the company may have against borrower shall be released. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which NBFCs are entitled to retain the securities till the relevant claim is settled / paid.
There shall be no interference in the affairs of the borrower except for the purposes provided in the terms and conditions of the loan agreement unless new information, not earlier disclosed by the borrower, has come to the notice of the company.
In case of receipt of request from the borrower for transfer of borrower account, the consent or otherwise i.e. objection of the company, if any, shall be conveyed within 21 days from the date of receipt of request. Such transfer shall be as per transparent contractual terms in consonance with law.
In the matter of recovery of loans, undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc is strictly restricted and is against the company's code of conduct. Regular training to all staff who interact with customers, is organized for appropriate behavior with customer.
No pre-payment penalties will be charged on all floating rate term loans sanctioned to individual borrowers.
The Board of Directors has designed appropriate grievance redressal mechanism within the organization to ensure that all disputes arising out of the decisions of company's functionaries are heard and disposed of at least at the next higher level. The Board of Directors shall periodically review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.
The loan agreement of the company shall contain necessary repossession clauses with relevant details thereof as prescribed by RBI from time to time.
Company has adopted following practice to comply with THE RBI CIRCULAR DNBS. 204 / CGM (ASR)-2009 dated January 2, 2009 and vide its Guidelines on FPC for NBFCs and its aim of adopting these practices is to communicate the annualized rate of interest to the borrower along with the approach for gradation of risk and rationale for charging different rates of interest to different categories of borrowers to have a transparent trade with customers and also to comply with the regulatory guidelines.
Appropriate internal principles and procedures in determining interest rates and processing and other charges shall be followed in line with the approved company policies from time to time.
The rate of interest arrived shall be based on the weighted average cost of funds, administrative costs, risk premium and profit margin.
The decision to give a loan and the interest rate applicable to each loan account shall be assessed on a case to case basis, based on multiple parameters such as the type of asset being financed, borrower profile and repayment capacity, borrower's other financial commitments, past repayment track record if any, the security for the loan as represented by the underlying assets, loan to value ratio, mode of payment, tenure of the loan, geography (location) of the borrower, end use of the asset etc.
The rates of interest are subject to change as the situation warrants and are subject to the discretion of the management on a case to case basis.
The rate of interest informed are annualized rates so that the borrower is aware of the exact rates that would be charged to the account.
Currently Company is not engaged in business of lending against gold jewellery therefore code related to this business shall be approved and adopted as and when decision is taken to enter the said type of business.
Customer complain shall be first logged at nearest branch in complaint register where branch manager to be the first point of interaction with customer and if customer is not satisfied with the provided solution then the same complain to be escalated to the senior authority as intimated to customer or to the Grievance Redressal Officer whose contact details shall be displayed at the branches.
The following information shall be displayed prominently, for the benefit of their customers, at their branches / places where business is transacted:
Name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company which are as under:
Mr. Atul Arora,
G-1 & G2 Adarsh Plaza
Near Khasa khoti circle Jaipur
If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI as under:
The General Manager,
Reserve Bank of India,
Department of Non Banking Supervision,
3rd Floor, Ram Bagh Circle,
Tonk Road Jaipur - 302 052 (Rajasthan)
Ess Kay Fincorp Limited had recently issued Rated, Listed, Secured, Redeemable, Principal Protected Non-Convertible Market Linked Debentures (MLDs) that combine features of debt and equities / commodities / customized indices, etc. These MLDs offer investors an opportunity to invest in tailor-made products which may be suited to their market expectation and investment horizon, and can potentially earn better returns than fixed deposits.
Please review the relevant offer document / memorandum of private placement / pricing supplement relating to the specific MLDs for details on the MLDs including their risk factors. CARE Ratings Limited (CARE) have been appointed as the valuation agency for valuation of these debentures.
As per the Guidelines for Issue and Listing of Structured Products / Market Linked Debentures dated September 28, 2011 issued by the SEBI, depending on the valuation agency mentioned in the offer document / memorandum of private placement / pricing supplement; latest and historical valuations provided by the valuation agent will be available as below:
Valuation Agency: http://www.careratings.com/mld-valuation/Index.aspx
The valuation provided by the valuation agency may vary from the value determined by Ess Kay Fincorp. Ess Kay Fincorp shall not be obliged to consider or rely upon the valuation provided by the valuation agency.