CODE OFCONDUCT OF INDEPENDENT DIRECTORS

(Schedule IV of the Companies Act, 2013)
(Section 149(8) of the Companies Act, 2013)

The Code is a guide to professional conduct for Independent Directors. Adherence to these
standards by Independent Directors and fulfilment of their responsibilities in a professional and
faithful manner will promote confidence of the investment community, particularly minority
shareholders, regulators and Companies in the institution of independent directors.

I. GUIDELINES OF PROFESSIONAL CONDUCT:

The Independent Directors shall:

1. uphold ethical standards of integrity and probity;
2. act objectively and constructively while exercising his duties;
3. exercise his responsibilities in a bona fide manner in the interest of the company;
4. devote sufficient time and attention to his professional obligations for informed and balanced
decision making;
5. not allow any extraneous considerations that will vitiate his exercise of objective independent
judgment in the paramount interest of the company as a whole, while concurring in or
dissenting from the collective judgment of the Board in its decision making;
6. not abuse his position to the detriment of the company or its shareholders or for the purpose of gaining direct or indirect personal advantage or advantage for any associated person;
7. refrain from any action that would lead to loss of his independence;
8. where circumstances arise which make an independent director lose his independence, the
independent director must immediately inform the Board accordingly;
9. assist the company in implementing the best corporate governance practices

II. ROLE AND FUNCTIONS:

The Independent Directors shall:

1. help in bringing an independent judgment to bear on the Board’s deliberations especially on
issues of strategy, performance, risk management, resources, key appointments and standards
of conduct;
2. bring an objective view in the evaluation of the performance of Board and Management;
3. scrutinize the performance of management in meeting agreed goals and objectives and
monitor the reporting of performance;
4. satisfy themselves on the integrity of financial information and that financial controls and the
systems of risk management are robust and defensible;
5. safeguard the interests of all stakeholders, particularly the minority shareholders;
6. balance the conflicting interest of the stakeholders;
7. determine appropriate levels of remuneration of executive directors, key managerial personnel
and senior management and have a prime role in appointing and where necessary
recommend removal of executive directors, key managerial personnel and senior
management;
8. moderate and arbitrate in the interest of the company as a whole, in situations of conflict
between management and shareholder’s interest

III. DUTIES

The Independent Directors shall—

1. undertake appropriate induction and regularly update and refresh their skills, knowledge and
familiarity with the company;
2. seek appropriate clarification or amplification of information and, where necessary, take and
follow appropriate professional advice and opinion of outside experts at the expense of the
company;
3. strive to attend all meetings of the Board of Directors and of the Board committees of which he
is a member;
4. participate constructively and actively in the committees of the Board in which they are
chairpersons or members;
5. strive to attend the general meetings of the company;
6. where they have concerns about the running of the company or a proposed action, ensure that
these are addressed by the Board and, to the extent that they are not resolved, insist that their
concerns are recorded in the minutes of the Board meeting;
7. keep themselves well informed about the company and the external environment in which it
operates;
8. not to unfairly obstruct the functioning of an otherwise proper Board or committee of the
Board;
9. pay sufficient attention and ensure that adequate deliberations are held before approving
related party transactions and assure themselves that the same are in the interest of the
company;
10. ascertain and ensure that the company has an adequate and functional vigil mechanism and to
ensure that the interests of a person who uses such mechanism are not prejudicially affected on
account of such use;
11. report concerns about unethical behaviour, actual or suspected fraud or violation of the
company’s code of conduct or ethics policy;
12. acting within his authority, assist in protecting the legitimate interests of the company,
shareholders and its employees;
13. not disclose confidential information, including commercial secrets, technologies, advertising
and sales promotion plans, unpublished price sensitive information, unless such disclosure is
expressly approved by the Board or required by law.

IV. MANNER OF APPOINTMENT:

1. Appointment process of Independent Directors shall be Independent of the company
management; while selecting Independent Directors, the Board shall ensure that there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively.

2. The appointment of Independent Director(s) of the company shall be approved at the meeting
of the Shareholders.

3. The explanatory statement attached to the notice of the meeting for approving the
appointment of Independent Director shall include a statement that in the opinion of the Board,
the Independent Director proposed to be appointed fulfils the conditions specified in the Act
and the rules made thereunder and that the proposed director is independent of the
management.

4. The appointment of Independent Directors shall be formalized through a letter of appointment,
which shall set out :

a) the term of appointment;
b) the expectation of the Board from the appointed director; the Board-level committee(s) in
which the director is expected to serve and its tasks;
c) the fiduciary duties that come with such an appointment along with accompanying
liabilities;
d) provision for Directors and Officers (D and O) insurance, if any;
e) the Code of Business Ethics that the company expects its directors and employees to follow;
f) the list of actions that a director should not do while functioning as such in the company;
and
g) the remuneration, mentioning periodic fees, reimbursement of expenses for participation in
the Boards and other meetings and profit related commission, if any.
h) The terms and conditions of appointment of Independent Directors shall be open for
inspection at the Registered Office of the company by any member during normal business
hours.

5. The terms and conditions of appointment of Independent Directors shall also be posted on the
company’s website.

V. RE-APPOINTMENT:

The re-appointment of Independent Director shall be on the basis of report of performance
evaluation.

VI. RESIGNATION OR REMOVAL:

1. The resignation or removal of an Independent Director shall be in the same manner as is
provided in sections 168 and 169 of the Act.
2. An independent director who resigns or is removed from the Board of the company shall be
replaced by a new Independent Director within a period of not more than one hundred and
eighty days from the date of such resignation or removal, as the case may be.
3. Where the company fulfils the requirement of Independent Directors in its Board even without
filling the vacancy created by such resignation or removal, as the case may be, the requirement
of replacement by a new Independent Director shall not apply.

VII. SEPARATE MEETINGS:

1. The Independent Directors of the company shall hold at least one meeting in a year, without
the attendance of Non-Independent Directors and members of management;
2. All the Independent Directors of the company shall strive to be present at such meeting;
3. The meeting shall
a. review the performance of Non-Independent Directors and the Board as a whole;

b. review the performance of the Chairperson of the company, taking into account the views of
        executive directors and Non-Executive Directors;

c. assess the quality, quantity and timeliness of flow of information between the company
        management and the Board that is necessary for the Board to effectively and reasonably
        perform their duties.

VIII. EVALUATION MECHANISM:

1. The performance evaluation of Independent Directors shall be done by the entire Board of
Directors, excluding the director being evaluated.
2. On the basis of the report of performance evaluation, it shall be determined whether to extend
or continue the term of appointment of the Independent Director.