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 Code of Conduct (the ‘Code’) for the Directors and team members of Ess Kay Fincorp:
1. Be honest and transparent in the use of the powers assigned, in good faith and in the best interests of the organization.
2. Remember that their prime responsibility and liability is towards the customers of the organization.
3. Use due care and diligence in performing their duties of office and in exercising their powers attached to that office
4. Not allow personal interests to conflict with the interests of Ess Kay Fincorp
5. Review & where appropriate, approve the company`s major financial objection, plans & actions.
6. Conduct themselves in a professional, courteous & respectful manner.
7. They are entrusted with and are responsible for the oversight of the assets & business affairs of the company in an honest, fair, diligent & ethical manner.
Company has adopted following practice to comply with THE RBI CIRCULAR DNBS. CC. PD. No. 320/03.10.01/2012-13 dated February 18, 2013 and revised CIRCULAR DNBR. PD. 008/03.10.119/2016-17 dated September 01, 2016. 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.
Applications for loans and their processing
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.
Loan appraisal and terms and conditions
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.
Disbursement of loans and changes in terms and conditions
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 realization 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.
Responsibility of Board of Directors
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.
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,
Grievance Redressal Officer /Nodal Officer,
Ess Kay Fincorp Private Limited
(Erstwhile Ess Kay Auto Finance Private Limited)
M-8,First Floor, Adarsh Plaza,
Khasa Kothi,Jaipur (Raj.)-302001
Landline No: 0141-4161340
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)