INVESTMENT POLICY

R.K. Bansal Finance Pvt. Ltd.

(This policy was approved by the Board of Directors in the Board Meeting held on 21st April 2025.)

Document Details

This policy was adopted by the Board of Directors of "R.K. Bansal Finance Pvt. Ltd." on "21st April 2025", to provide guidelines for investment and management of idle funds kept in the bank account.

Purpose

The purpose of this policy is to invest idle funds for short term as well as long term period as required, to earn sufficient returns to meet the operational obligation of the company in a timely manner. For the purposes of managing investment risk and to optimize investment return, idle funds shall be invested as follow:

• Fixed Deposits with Banks;
• Fixed Deposits against overdraft facility with banks;
• Certificates of Deposit at insured commercial banking organizations;
• Money market funds that invest in government backed securities;
• Investment in market linked securities;
• Liquid Funds.

Classification of Investment

The investment is classified into current and long term investment. Depending on the requirement, the investment shall be made in the following instrument for long term and short term purpose:

• Fixed Deposits with Banks;
• Fixed Deposits against overdraft facility with banks;
• Certificates of Deposit at insured commercial banking organizations;
• Money market funds that invest in government backed securities;
• Investment in market linked securities;
• Liquid Funds.

Note: To investment in capital market, mutual fund, prior approval of Board of Directors shall be required.

Valuation / Limit of Investment

Investment shall be limited to the maximum of 5 time of Net Worth of the Company at any point of time. Beyond 5 time of net worth, approval of Board of Directors would be required.

Procedure

The following procedures will be followed to ensure the investment policy is consistent with the mission of Company and accurately reflects current financial conditions:

• The Board of Directors shall review this investment policy on annually basis.
• The Board of Directors can incorporate any changes in this policy, if required.

Delegation of Authority

The Directors of the company be and is hereby authorised to determine the amounts to be placed in the each of the various instruments.

The Directors are responsible for directing and monitoring the investment management of the various fund assets of the company. As such, the Directors are authorized to delegate certain responsibilities to professional experts in various fields including hiring or replacing of them. These include, but are not limited to Investment Management Consultant, Investment Manager, Custodian, and additional specialists.

Investment Rationale

Short and long-term cash forecasts will be utilized to determine feasibility of each investment made. In order to limit interest rate or market risk, effective investment duration will be one year or less. An attempt will be made to match investment duration with expected cash flow requirements. However, pre-maturity is permissible for cash flow requirements or improvement in the portfolio of the funds.

Guidelines for Investment

• Funds shall be created solely in the interest of the Company.
• Idle cash/ funds shall be invested with skill, care, prudence and diligence under the circumstances then prevailing that a prudent investor acting in like capacity and familiar with such matters would use in the investment of a like fund.
• Investment in these funds shall be so diversified as per the operational requirement to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.
• One or more banks/ FIs/Investment managers of varying styles and philosophies may be employed to manage the funds.

Reporting Requirements

• The committee shall be appraised with details of such investment on every quarter. Detailed information about asset allocation, investment performance, future investment strategies, and other matters of interest shall be clearly communicated to the Committee.
• An annual review of performance of the portfolio shall be reviewed by the committee. Investment objectives will be reviewed to determine if they are being met.