WELCOME to NAHAR Group of Companies

Risk Management Policy

The Company’s main business activity is making investments in Primary and Secondary Market, Mutual Funds and Portfolio Management Services etc. Investment business is always prone to various risks i.e. risk of capital market fluctuations, global developments, competition risk, interest rate volatility, economic cycle and political risks which can affect the fortunes of investment companies in both ways.

Being an Investment Company, the Company’s main sources of income is dividend/interest/income receivable on investments in equity shares/debentures /bonds/deposits made and held by it in other companies/other entities and Mutual Funds and also income from trading in securities. Thus any adverse impact on the operations/businesses of the Investee Company/ entity/ Mutual Fund may impact the revenues of the Company as well.

To manage the risk associated with investment activity, the Company is following a sound and prudent risk management policy. The aim of the policy is to minimize risk and maximize the returns.

Under the current risk management policy, the Company has decided to hold its existing investment for Long Term in the Promoter Stake of Group companies which provide the right of management of the Group Companies, irrespective of volatility in the capital markets. In respect of investments other than group companies, the Company is following medium risks and medium returns policy.

The Company is making investments in an optimum blend of securities consisting of Equity Shares, Preference Shares, and Debt Instruments like Corporate Bonds, Mutual Funds, and Debt Securities etc. However, the actual composition of securities will depend upon the prevailing market conditions, opportunity available and risk factors associated with those securities.

The Company is following the policy of making investments in Mutual Fund Schemes of different maturity periods ranging from one to five years. Before making the investment whether short term or long term, the scheme is duly scrutinized by the Investment Committee considering all the pros and cons of the scheme and only after its approval the investment is made.

The Company will try to diversify its investment in different regions within India and also out of India to have better returns with lesser risk, as per the opportunities available in the market. The policies may be changed or altered keeping in mind the new developments and market conditions.