What started in 1977 with two employees and a burning passion is now a force to reckon with in the Indian electric and electronic goods panorama. Our untiring commitment for performance, cutting edge technology, innovative design and dependable service standards have lead to unrivalled product quality and a trusted brand image. At V-Guard the principles that motivated our success remain unchanged: The passion of our early years and our quest for excellence.
Through stringent quality measures, reliable products, talented people and a responsible approach to business and global citizenship we continue to steadily capture the hearts of the people. In 1977, Kochouseph Chittilappilly began a small manufacturing unit for voltage stabilizers with a vision and a capital of Rs 1,00,000 borrowed from his father. He soon established V-Guard Industries as a household name. V-Guard became the synonym for voltage stabilizers across South India.
The company soon extended their range of products to include Pumps & Motors, Electric Water Heaters, Solar Water Heaters, Cables, UPS’s, and Ceiling Fans. V-Guard continues to remain at the helm through rigorous research and development. R&D labs at Cochin and Coimbatore explore and reinvent existing products and design. R&D for electronic products and electric geysers are carried out in Cochin while electro-mechanical products, electrical wires and solar water heaters are the strong V-Guard continues to remain at the helm through rigorous research and development.
R&D labs at Cochin and Coimbatore explore and reinvent existing products and design. R&D for electronic products and electric geysers are carried out in Cochin while electro-mechanical products, electrical wires and solar water heaters are the strong point of the Coimbatore R&D lab. State of the art production centres ensure consistency and quality throughout the product range. Workforce being the core asset of any organisation, V-Guard has an employee strength of more than 1750 and over 5500 indirect employees through its SHG initiatives.
All Rights Reserved Web Design powered by DREEME About us CSR * Directors * V-Guard Story * Quality Control We believe in the amalgamation of corporate management, sustainable development and global responsibility in working toward a better society and thereby a better world. We are committed to greening our environment, supporting the less fortunate and nurturing the downtrodden. Extending a hand in support of education Kerala industrialist donates kidney to save a life ROTARY-BINANI ZINC CSR AWARD
V Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private Sector) by the Rotary Club of Cochin Metropolis, in association
It is dedicated to extending its reach to areas of health, education and care. The trust provides health insurance cover for 1314 families from financially backward classes, 922 families at Tholur Panchayat, Kerala and 105 families in Ramanagaram Taluk in Bangalore, Karnataka. It also conducts free health camps at villages and backward areas where the reach of proper health care is absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur and Ernakulam Districts in Kerala and Ramanagaram Taluk, Bangalore.
The trust has also made substantial contributions to NGO’s working for various social welfare causes like Udhavumkarangal and the SOS village. It has also donated generously to many national level causes and relief funds like the Prime Minister’s Relief Fund, Kargil war victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa cyclone and the Tsunami Relief Fund of the Prime Minister as well as the Chief Minister. Shantimandiram An old age home for women, providing shelter and care for those who are unable to care of themselves in Parappur Village, Trissur, Kerala.
It is managed by the Sisters of CMC Nirmala Province in whose able hands the inmates receive love and care irrespective of caste and community. The facility accommodates 60 inmates at a time and is recognised by the Board of Control for Orphanages and other Charitable Homes, Kerala. True to its name, all facilities are provided free of cost and it is a haven of peace and tranquility where the inmates spend the evening of their lives in dignity and comfort. Shanthimandiram celebrated its first anniversary on 29th May 2010 along with the Inmates. The function started with the blessings of Fr. Franko Kavalakkatt, Vicar, Parappur Forona Church.
Various cultural programmes have been performed by the inmates of Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and family. The sisters of Shanthimandiram also involved with the cultural programmes. Social Welfare Fund- an employee CSR activity Social welfare consciousness being embedded in V-Guard work culture has motivated the employees to join hands in reaching out in charity. The Social Welfare Fund was created out of the goodwill of the employees who collate funds and donate towards cost of medicines for the poor in the cancer ward at the Ernakulam General Hospital.
He has been the Managing Director of the Company since its inception and has taken Company to its current levels of stature and recognition with his experience and vision. In April, 2012 he passed the baton on to his son Mr. Mithun Chittilapilly as the Managing Director, assuming the post of Executive Vice Chairman of the company and on November 1, 2012, when Shri. P. G. R. Prasad stepped down, he took over as the Chairman of the Board of Directors. He is the recipient of numerous awards, which were bestowed on him for his exemplary performance in business.
Among them are Business Man of the Millennium 2000 from Rashtra Deepika, Tourism Man of the year from “Destination Kerala and Samman Pathra Award for top income tax payer from Hon’ble Union Minister of State for Finance. As the Managing Director, Mr. Kochouseph has been the main driving force behind the company’s sustained growth. more >> Shri. Cherian N. Punnoose, a Fellow member of Institute of Chartered Accountants of India, joined V-Guard as Vice Chairman of the Board of Directors. Formerly Director of Finance at Kochi Refineries Ltd. (KRL), he was also on the Board of Pertonet CCK Ltd.
He has 40 years of experience in the field of Finance, Audit and Administration. Served KRL for 25 years in various capacities prior to becoming a member of the Board of Directors. Prior to joining KRL he also served Bharat Heavy Electricals Limited and International Airports Authority of India. He has undergone short term training in Advanced Financial Management Techniques in Strathclyde Business School of the University of Strathclyde, Glasgow, UK He is a postgraduate in commerce, Certified Financial Planner and a Research Scholar with School of Management Studies of Cochin University of Science and Technology.
He joined the company as an Independent Director on 16th August 2007. He is a member of Executive Committee of National Stock Exchange of India Ltd. , National Securities Depository Ltd. , BNP Paribas Personal Investors, Paris and Cochin Chamber of Commerce and also a Managing Committee member of ASSOCHAM and KMA. He is also a member of Confederation of Indian Industry, Kerala State Council and Capital Market Committee of Federation of Indian Chambers of Commerce and Industry. Charter member of Tie, Kerala.
He has also been awarded the Business Man of Kerala by Business Deepika, Excellence Award from Kerala Management Association and Dhanam Business Man of the Year, 2006. Presently, he is the Managing Director of Geojit BNP Paribas Financial Services Ltd Mr. Nair was appointed as the Non Executive Independent Director of the Company on 27th May 2009. Mr. A K Nair holds a Bachelor’s degree in Mechanical Engineering with Masters in Business Administration and has over 45 years of Industry experience specially in the filed of Engineering, Finance and General Administration.
Mr. A K Nair has served Kerala State Industrial Development Corporation and Nitta Gelatin India limited as Managing Director and is presently on the Director Board of many other companies. He is a post graduate in Finance from University of Melbourne, Australia. Mr. Mithun K Chittilappilly after completing his graduation in Commerce joined V-Guard to be trained in the various departments of the company, ranging from Finance to Marketing.
In January 2005, he took a break from work for a year and a half to pursue his post graduation in Finance from University of Melbourne, Australia. After graduating in May 2006, he joined the Company as Executive Director and in 2012 was appointed as the Managing Director of the Company. Dr. Sleeba has been inducted as an Additional Director of the Company with effect from 27th May, 2010. He has also been appointed as the Joint Managing Director of the Company with effect from 1st June, 2010. Dr.
George Sleeba is a Graduate in Mechanical Engineering with First Class Honours from Kerala University and M Tech in Industrial Engineering from IIT, Madras, Dr. Sleeba has a Post Graduate Diploma in Management from All India Management Association (AIMA) and Doctorate in Social Sciences from the Cochin University of Science & technology (CUSAT). He has undergone a three month Senior Management programme as a Colombo Plan Scholar in UK organised by the British Council and holds a certificate in Training & Development from the Institute of Training & Development, UK.
Dr. George Sleeba was the Former Chairman and Managing Director of FACT Ltd, a multidivisional corporation with more than Rs. 2300 Crores turnover and 4000 employees – the biggest Central PSU in the State of Kerala. He has proven managerial competence and academic excellence. He has more than 38 years of outstanding contribution to the industry in various functional areas of management, of which 30 years had been in FACT in senior management positions such as General Manager, Executive Director, Technical Director and as Chairman & Managing Director.
He had been the Managing Director of two State Govt Undertakings – Travancore Cements Ltd and Travancore Sugars & Chemicals Ltd. He has also served as a Consultant to the Govt of Kerala for revival of sick units in the Public Sector. He is a member of the Industrial Relations Board of the Govt of Kerala. He is recognized as a turnaround specialist, credited with transforming the ailing FACT into a growth oriented, diversified, profit making company.
In recognition of his contribution to the industry, he has been awarded the Lal Bahadur Shastri National Award for professional excellence in public sector, Padmasree Paul Pothen Award for professional excellence, Merit Award from FACT for outstanding performance, Jaycees Award for Processional Achievement, Rotary International Award for outstanding professional from industry, Life Time Achievement Award from NIPM from Palakkad Group, Outstanding Achievement Award for revival of FACT from Kerala Darshana Vedi an NGO.
Management Discussions 1. ECONOMIC SCENARIO AND INDUSTRY OVERVIEWAfter the global economic recession, many of the world economies are growing in a slowpace even today; however, the Indian economy had showed faster recovery from the secondhalf of 2009-10 and has achieved robust and steady economic growth during the fiscal2010-11. With impressive growth in major sectors like agriculture, manufacturing,services, automobiles and realty, the country’s GDP rate has grown by 8. 5% during thefiscal 2010-11.
Indian consumer industry also witnessed good growth during the year under review. Increasing urbanisation coupled with high disposable income of individuals and a surge inadvertising has been instrumental in bringing about a sea change in the consumer behaviorpattern and has resulted in increased consumer spend towards branded products both inrural and urban markets of India. 2. OVERALL PERFORMANCEV-Guard continues to enjoy a leading position in the electrical and electronic consumermarket in the country.
With a large variety of products, strong brand equity and widelyspread distribution channel, the Company enjoys a unique position to cater to the consumerneeds of various segments. The Company achieved net sales of Rs. 726. 34 crores during theyear under review, charting a growth of 59. 96%, over the net sales of Rs. 454. 09 croresfor the previous year. Following the robust growth achieved in sales, the Company recordeda Net Profit of Rs. 39. 70 crores, without considering exceptional profit of Rs. 3. 63crores during the year under review, which is 55. 84 % more compared to the previous year.
The contribution from Non-South Indian markets in the turnover is more than Rs. 160. 00crores in the fiscal 2010-11. The products that accounted more to achieve the sales werewires, stabilizers and pumps. BUSINESS REVIEW3. 1 VOLTAGE STABILIZERSThe Company’s flagship product Voltage Stabilizers has achieved a turnover of Rs. 166. 82 crores during the year under review, which is 23% of the total net sales. Pursuantto the surge in the consumer durable industry there was a significant increase in the saleof white goods like refrigerators, air conditioners, washing machines etc. which hasresulted in an increase in the sale of stabilizers for air conditioners, refrigerator etc.
During the year under review, the product has grown by 44. 73% in value, when compared withthe sale of previous year. New models of stabilizers meant for air conditioners were introduced considering thelocal requirements of non-south Indian markets with reduced cost. New models were alsointroduced for tread mill, washing machine and micro wave oven. The Company’s persistent efforts o maintain the quality of the product, bringingout improvements on an on-going basis by introducing new models that meets the localmarket demands, focused R & D efforts and strong channel network across the country,have all contributed to maintain its dominant position in the sector. The main threat faced in the product line is the seasonal nature of many of the whitegoods and the aggressive campaign by the manufacturers of the white goods stating that theappliance contains in-built stabilizers. Besides these, the increasing inflation rate,competition from the unbranded segment, improved power distribution etc.
May hamper thefuture growth of the product. During the year under review, the Company came out with an ad campaign to overcome theimpact of the claim of the manufacturers of the white goods that their appliance containsin-built stabilizers which has helped to create awareness on the retailers and customershow the stabilizers protects the appliance during the power cut and also from the voltagefluctuation when the power comes back. Through this awareness creation ad, it was able tocreate a positive impact on the mindset of the consumers on the need for a stabilizer.
Your Company is expecting the consumer industry to grow in a good pace in the currentfiscal and this will create an increased demand for appliances like LCD TV, refrigerators,air conditioners and consequently an impressive growth in the stabilizers suitable forthese appliances. Focus is being given to expand the marketing network to rural marketsand other untapped markets as well as to increase the sale in the new segments ofstabilizers for LCD TVs, tread mill, washing machine etc. 3. 2 WIRING CABLESYour Company is one of the leading manufacturers of wires in the branded segment in thecountry.
Total sales achieved in the wire segment for the year under review was Rs. 206. 05crores and it accounted for 28. 40% of the total net sales of the Company. Growth during the year under review was driven by the increased demand from sectorslike building and construction, automobile, aviation, energy, engineering andtelecommunications. Construction industry has revived considerably, after the economicslowdown and as a result, there is an overall improvement in the demand for wires. Thegrowth in the sales in terms of quantity and value was 35% and 68% respectively, whencompared with the sales of previous fiscal.
Capacity utilisation of the factories werealso considerably improved during the year under review. Increase in the volume andefficient purchase of raw-materials resulted in better sales growth and profitability. The major strength of this product segment is good network for distribution, increasedbrand image in south and non-south Indian markets and better quality of products. However,brand awareness is to be further increased in the non-south Indian market and efforts areto be made to procure more orders from Govt. departments, various public and privatesector organizations etc.
Moreover, high volatility in the price of the majorraw-materials is one of the major reasons for low margin. Risk associated with theincrease in copper price can be mitigated by efficiently planning the procurement ofcopper and also keeping the inventory of wires at low levels. As major growth sectors in the country is expected to come out with impressive growthduring the fiscal 2011-12, the way ahead for the product seems to be good and focus willbe given to tap the potential in the rural parts of the country and also increase themarket share of the non-south Indian market.
As the construction industry is expected togrow further, efforts shall be made to procure more project / institutional orders. 3. 3 PUMPS AND MOTORSDuring the year under review, the Company was able to achieve moderate growth in thepump segment consisting of single and three phase pumps. Impressive sales was achieved inthe first half of the fiscal, however due to the extended monsoon, growth was sluggishduring the second half. Total sale achieved was Rs. 121. 00 crores, showing a growth of 42%over the sales achieved during the financial year 2009-10.
The product line was able tocontribute 16. 65% of the total net sales of the Company. New models were introduced as per the geographical requirements and efforts were madeto increase the brand visibility especially in the non-south Indian markets and also inthe rural and semi urban areas. With the support of more below the line activities,increased penetration was achieved in respect of three phase pumps in tier II & tierIII cities. More number of Dealers were appointed in unrepresented areas of non-SouthIndian markets with a view to expand our marketing network.
The Company was also able tointroduce 5 star rated models suited for different segments of customers. Sale of the product may get affected due to climatic conditions and also there is stiffcompetition from the players both in the organized and unorganised sectors. Non-availability of skilled man power from the industry may also hamper the growth of theproduct. Your Company is planning to give more concentration in new market segments withproducts like agricultural pumps, motors & industrial pumps and also three phase pumpsin a big way. 3. ELECTRIC WATER HEATERS ( GEYSERS)Electrical products segment has shown a good growth in the country during the yearunder review contributing to an impressive growth in the product line. Seasonal factorslike good monsoon rains, early winters in the northern parts of the country have alsofavoured the growth of the product. During the year under review, the total sale achievedwas Rs. 60. 00 crores which is 62% over the previous year’s sale of Rs. 37. 00 crores. Sale of Gas water heaters introduced in the previous year was extremely good.
Dealer network for the product was considerably increased both in the urban as well asrural markets. During the year under review, more number of economy models was introducedbesides 5 star rated models that ensures reduction in the usage of energy. Your Companywas able to introduce vitreous enamel tank to increase the life of the tanks and thischange has been well accepted in the market. The product has got good market potential in non-south India due to the climaticcondition and the same can be capitalized by increasing the brand awareness and also theconfidence level of the Dealers.
In case, the sale price of solar water heaters gets reduced considerably in future dueto alternate technology in manufacture or by grant of high subsidy by the Government,there is a likelihood of certain segment of customers shifting to solar water heatersthereby affecting the sale of electric water heaters to some extent. Moreover, powershortage prevalent in many parts of the country and increasing cost of power may alsoaffect the future growth potential of electric water heaters.
Your Company is planning tointroduce new models and more star rated models to reduce energy consumption and forreduction in operational costs as a strategy to maintain the growth momentum. 3. 5 SOLAR WATER HEATERS:With a view to conserve electrical energy by curtailing power consumption in house holdappliances and industrial equipment, the Government is encouraging the use of alternate orrenewable energy in place of electrical energy in a massive way. Further, to encourage theuse of solar thermal devices for heating water, the Government has introduced subsidy tothe end consumer.
Many nationalized banks are also providing loans at cheaper interestrates for purchase of solar water heaters. Many of the state governments in the countryhave mandated the use of solar water heaters in commercial segments facilitating increasedsale of higher capacity industrial and commercial models. These steps are expected toaccelerate the growth of the solar water heater industry in the coming years. To take advantage of the emerging scenario, your Company has introduced solar waterheaters with improved and innovative designs for varying applications with a view toexpand its market share in domestic and commercial segments.
During the year under review,the marketing network for sales of solar water heaters was reorganized with introductionof direct sales to customers in major cities, to facilitate getting more project orders. Your Company is also enjoying superior technology in the manufacture of solar waterheaters that give longer life of inner steel tanks, thus providing an edge over thecompetitors in the segment. All these efforts have resulted in increasing the turnover of solar water heaters toRs. 22. 00 crores during the year under review registering a growth of 34% over theprevious year’s turnover of Rs. 6. 40 crores. Considering the future growth potential, your Company is on the threshold of setting upa major manufacturing facility for solar water heater with improved technology atPerundurai, near Erode, Tamil Nadu, in the land taken on lease from SIPCOT and the newmanufacturing unit is expected to be commissioned by the third quarter of the fiscal2011-12. This improved technology is intended to mitigate the present problem of corrosionof inner tank of solar water heaters in hard water areas. An investment of Rs. 8. 00 croresis envisaged for the project.
Your Company has also initiated the process for obtainingCRISIL rating for Solar Water Heater – Division, that will help the consumers toavail the subsidy announced by the Ministry of New and Renewable Energy (MNRE)while making purchases of solar water heaters. However, possibility of further increase inlending rates may have a negative impact on the purchase of solar water heaters utilizingthe loans from commercial banks. 3. 6 FANSGrowth in the electrical products segment in the country has supported the fan industryalso to achieve an impressive growth in the year under review.
In 2010-11, your Companyachieved a net sale of Rs. 53. 00 crores, which shows 107% growth over the net sale of Rs. 25. 60 crores, recorded in the previous year. Good range of products in the ceiling fansand new models of table, pedestal and wall mounting fans through imports and decorativemodels in ceiling fans have enabled the Company to achieve higher sales and improve theprofitability in the product line. The Company was also able to improve the sale in thenon-south Indian market by appointing more number of channel partners and alsoconcentrating in the rural markets of various parts of the country.
As the booming construction industry is expected to give a fillip to the electricalsegment industry, Your Company is confident of increasing its market share in the comingyears in the product line. It is also planned to appoint more number of dealers in theunrepresented areas to expand our marketing network. Your Company is also carrying outcontinuous R & D activities in its pilot production unit located at Kala Amb, toreduce the cost of production, improve the quality and reliability and to introduce lessenergy consuming models.
More thrust is also given to capture more projects orders both from the Public andPrivate sector organizations. It is also proposed to introduce industrial exhaust fans tomeet the requirement of industry in the coming years. Sale of the product is highly dependent on the seasonality and also the growth in therealty sector. If the climatic conditions are not favourable, the sale may get affected. Moreover, competition from the unorganized sector is also a threat. To overcome thecompetition from the unorganized sector, your Company is involved in increasing its brandawareness by doing Below The Line activities.
With continuous R&D and withintroduction of more models of energy efficient fans, your Company is confident ofincreasing its market share and profitability in the coming year. 3. 7 POWER & CONTROL CABLESYour Company embarked into manufacture and marketing of LT Cables in 2009 by setting upa manufacturing facility at Coimbatore. LT Power and Control cables are mainly used inpower generation and distribution plants and also in electrical systems within thepremises. As the power sector and construction industry are growing at a faster rate, goodgrowth potential is expected for the product. The Company achieved a net sales of Rs. 2. 00 crores, during the year under review and registered a growth of 165% over theprevious year. Order book consists of clients from major organizations from public andprivate sectors. Good brand image, consistency in quality of products and network withstrong dealers are the main growth drivers in the product line.
The Company plans to grow further in the coming fiscal and increase its capacityutilization by getting more orders from Govt. and private institutions. 3. 8 UNINTERRUPTED POWER SUPPLY (UPS) SYSTEMSDuring the year under review, India’s personal computer (PC) market registered agrowth f 30% which is the highest since the year 2007. Nearly 25,00,000 PCs were shippedto Indian consumers, raising the overall sales by 26 per cent in the period. The demandfor UPS in India is expected to be robust, especially from rural and semi-urban areas,where the rapid development in the IT infrastructure and elongated power cuts and loadshedding is more, compared to what urban areas experience. During the year under review,the product line UPS has made an incremental growth in sales both in terms of value andvolume.
Your Company was able to achieve net sales of Rs. 7. 00 crores, therebyregistering a growth of 56% over the previous year’s sale of Rs. 17. 36 crores. The factors that drive sustainable growth in this segment are the quality andreliability of products, competitive prices, availability of the product through a widedistribution network and prompt after sales service support. Your Company is adoptingstrategies for penetrating the B and C class cities to ensure growth in this product line. Growth is also expected from hospitality industry as well as educational institutions,where the usage of UPS is more.
However, UPS is as an ancillary product of desktop computers and the demand of UPSdepends directly on the demand of desktop computers. The sales growth of Laptops isindirectly affecting the sales of UPS in the Tier I and Tier II Cities. Your Company istaking steps to increase the range of models in the category of Line Interactive UPS andonline UPS for wide range of applications as a strategy for increasing sales. 3. 9 DIGITAL HOME UPSDigital Home UPS industry is poised to grow aggressively in the coming years.
The acutepower shortage and load shedding stipulated by various State Governments and frequent longhour power failures have contributed to the growth of the product line in a big way. During the year under review, net sale achieved was Rs. 22. 00 crores, registering a growthof 150% over the previous year’s sale of Rs. 8. 77 crores. In the year under review,the product reach was increased by making it available throughout the country byappointing number of Direct Marketing Associates and strengthening the marketing network.
Your Company has also introduced battery for the Digital UPS during the fiscal 2010-11. Considering the huge market potential, the Company is confident of increasing the salesmany fold in the coming years. 4. OPPORTUNITIES & THREATSYour Company is engaged in the manufacturing and marketing of various products whichforms part of the segments like electronic and electrical, consumer durable, agriculture,construction and power. Sales growth of the each product vertical is having a direct nexuswith development of the core sectors of the economy.
As the Indian economy is on a fastgrowing pace, all the key sectors are also showing excellent growth. The Indian consumerdurable industry witnessed a tremendous growth during the year under review. Changinglifestyle, higher disposable income coupled with greater affordability, boom in the realestate and housing industry and a surge in advertising has been instrumental in bringingabout a sea change in the consumer behavior pattern. Rural markets and small towns haveshown promising demand for durables and prosperity in rural India has been one of themajor driving forces for rural growth.
Though the economy is growing in a fast manner, the high inflation prevalent in thecountry may affect the growth of the sectors like construction, consumer durables,agriculture etc. It may also affect the purchasing power of the people and slow down themovement of white goods. Besides, consumers are more aware of energy efficient appliancesas they are proactively asking for star-rated refrigerators, air conditioners, waterheaters, pumps etc. If the Company fails to introduce energy saving models, it will befacing difficult situation to market the products.
Moreover, in the highly inflationaryregime, price of the raw-materials may increase considerably leading to increased cost ofproduction. Attempts to pass on the price escalation to the consumer, may lead to, peopleopting for unbranded products, considering the price variation. 5. FUTURE OUTLOOKThe Indian economy is expected to maintain the growth momentum in the coming years. With the existing product range and by introducing new models which suits with the localrequirements of various markets and by providing good after sales service, your Directorsare confident of achieving desired growth levels and improve the profitability further.
Possibility of adding one or two products coming in the home appliance segment is alsounder consideration. Thrust will be given to strengthen the existing manufacturingfacilities by making additional investment wherever required. Efforts will be taken toimprove the brand awareness in the new markets and more penetration will be made in thesemi-urban and rural areas. 6. RISKS AND RISK MITIGATIONThe Company has an Enterprise Wide Risk Management System in place and has laid downprocedures for risk assessment and its mitigation.
A two level committee monitors therisks and its mitigation measures on a regular basis. The lower level consists of 4Product Risk groups each headed by a VP and comprising of concerned product heads andrepresentatives from other functions like Finance, Systems, Customer Service, HumanResource, Legal etc. The apex body, known as Risk Management Team is headed by theExecutive Director and comprise of Sr. Vice Presidents, Vice Presidents, Chief RiskOfficer, Assistant Risk Officer and heads of various Product Risk Groups as members.
The Product Risk Groups holds periodical meetings and review the risks and mitigationmeasures in the respective product groups and submit their reports along with the minutesof the meetings to the Risk Management Team, which review and consolidate the Risk reportand submit quarterly reports before the Audit Committee for its review and recommendationto the Board. The Company is also maintaining Risk Registers for each product and the sameare updated on regular basis.