Common use of Risk Management Clause in Contracts

Risk Management. A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank’s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank’s risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, the sub-committees of the Board of Directors, Senior Management Committees – Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee & Asset Liability Committee (ALCO). These policies approved from time to time by Board of Directors, Committees of Board form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight on all the risks assumed by the Bank. The Bank’s Risk Management frwork focuses on the management of key areas of Risk such as Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks; quantification of these risks, wherever possible. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board of Directors with its sub-committee Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk management is administered by Executive/ Senior management committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). IRMD has structured management committees; Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both. Business Responsibility Report In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31st March every year are required to submit their Business Responsibility Report(BRR) as a part of the Annual Report. The Bank’s Business Responsibility Report describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure- 7. Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 The Bank does not engage in any form of child labour/ forced labour/involuntary labour and does not adopt any discriminatory employment practices. The Bank has a policy against sexual harassment and an “Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace” for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, no complaint was lodged before the committee and no case is pending for disposal. Loans, Guarantees & Investment in Securities Pursuant to section 186(11) of the Companies Act, 2013, the provisions of section 186 of the Companies Act, 2013, except sub-section (1), do not apply to loans made, guarantees given or security provided by a Banking company in the ordinary course of business.The particulars of investments made by the bank are disclosed in Schedule 8 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949. Contracts or Arrangements with Related Parties Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm’s length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is (xxxx://xxxxxx.xxx/xxxxxx/xxxxxx/ policy.php). Statement of related party transactions under sub section (1) of section 188 of the Companies Act, 2013 is attached herewith as Annexure 6. Information under Insolvency and Bankruptcy Code, 2019 The Bank as on 31st March, 2020 has cases under the IBC resolution the details whereof along with existing status is tabulated as under: S. No. No. of Ac- counts Stage of Process NPA / NPI outstanding Reco v - e r i e s during the year , if any 1 35 Resolution process(Pending with NCLT) 2812.98 Nil 2 10 Liquidation Process 1094.32 0.65 3 1 Resolution approved/ implemented during the year 45.78 4.03 Frauds reported by the Bank (Amt. in Crs) Bank, its Subsidiary (JKB Financial Services Ltd.)and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 82nd Annual General Meeting of the Bank alongwith Bank’s Financial Statements under sub-section (20) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2020 form part of this Annual Report. Statutory Auditors The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Joint Statutory Auditors The Bank during the financial year 2019-20 has detected/ reported 23 cases of fraud to Reserve Bank of India involving an amount of Rs. 221.14 Crore. Frauds reported by Auditors During the year under review, one fraud was reported by one of the Joint statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Risk Management. A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank’s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank’s risk management processes are guided by way of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, the sub-committees Committees of the Board of Directors, Directors and Senior Management Committees – Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee & and Asset Liability Committee (ALCO). These policies approved from time to time by Board of Directors, Committees of Board form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight on of all the risks assumed by the Bank. The Bank’s Risk Management frwork framework focuses on the management of key areas of Risk such as Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks; quantification of these risks, wherever possible. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and control. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board of Directors with its subcommittee-committee Integrated Risk Management Committee (IRMC) reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk management is administered by Executive/ Senior management committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). IRMD The Bank has structured management committees; Credit Risk Management Committee (CRMC), Operational Risk Management Committee (ORMC) and Market Risk Management Committee (MRMC) for credit risk, operational risk and market risk that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios on the adequacy of capital. The stress scenarios are idiosyncratic, generic and a combination of both. Business Responsibility Report In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31st March every year are required to submit their Business Responsibility Report(BRRReport (BRR) as a part of the Annual Report. The Bank’s Business Responsibility Report describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure- 7. Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 The Bank does not engage in any form of child labour/ forced labour/involuntary labour and does not adopt any discriminatory employment practices. The Bank has a policy Policy against sexual harassment and an a committee “Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace” has been constituted for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament Parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, no one complaint was lodged before the committee Internal Complaints Committee duly constituted under the Sexual Harassment of Women at Work Place (Prevention and no Redressal) Act, 2013 and the rules made thereunder. Accordingly, due inquiry proceedings were conducted in the case, as stipulated in the Act and adequate opportunity was provided to both complainant and respondent to present/ defend their case. Finding the case is pending for disposaldevoid of any merits, the same was disposed of within the requisite time frame of 90 days. Loans, Guarantees & Investment in Securities Pursuant to section 186(11) of the Companies Act, 2013, the provisions of section 186 of the Companies Act, 2013, except sub-section (1), do not apply to loans made, guarantees given or security securities provided or acquisition of shares by a Banking company in the ordinary course of business.The particulars of investments made by its business are exempted from disclosure in the bank are disclosed in Schedule 8 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949Annual Report. Contracts or Arrangements with Related Parties Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm’s length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is (xxxx://xxxxxx.xxx/xxxxxx/xxxxxx/ policy.phpxxxxx://xxx.xxxxxx.xxx/xxxx/ policy/Related%20Party%20Transactions%20Policy%20 22.04.2020-09062020.pdf). Statement of related party transactions under sub section (1) of section 188 of the Companies Act, 2013 is attached herewith as Annexure 6. Information under Insolvency and Bankruptcy Code, 2019 2016 The Bank as on 31st March, 2020 2021 has cases under the IBC resolution the details whereof along with existing status is tabulated as under: under S. No. No. of Ac- counts Accounts Stage of Process NPA / NPI outstanding Reco v - e r i e s Recoveries during the year , if any 1 35 31 Resolution process(Pending process( Pending with NCLT) 2812.98 2641.80 Nil 2 10 16 Liquidation Process 1094.32 0.65 1372.42 0.54 3 1 0 Resolution approved/ implemented implement- ed during the year 45.78 4.03 Frauds reported by the Bank 0 0 (Amt. in Crs) Bank, its Subsidiary (JKB Financial Services Ltd.)and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 82nd Annual General Meeting of Frauds reported by the Bank alongwith Bank’s Financial Statements under sub-section (20) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2020 form part of this Annual Report. Statutory Auditors The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Joint Statutory Auditors The Bank during the financial year 20192020-20 21 has detected/ reported 23 cases of fraud frauds to Reserve Bank of India involving an amount of Rs. 221.14 Rs 1519.62 Crore. Frauds reported by Auditors During the year under review, one no fraud was reported by one any of the Joint statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Risk Management. A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank’s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank’s risk management processes are guided by way framework is based on a clear understanding of policies adopted appropriately for various risk categories, independent risk oversight and periodic monitoring by Board of Directors, the sub-committees of the Board of Directors, Senior Management Committees – Credit Risk Management Committee, Market Risk Management Committee, Operational Risk Management Committee & Asset Liability Committee (ALCO). These policies approved from time to time by Board of Directors, Committees of Board form the basis for governing framework for each type of risk. The Board sets the overall risk appetite and philosophy for the Bank and have an oversight on all the risks assumed by the Bank. The Bank’s Risk Management frwork focuses on the management of key areas of Risk such as Credit, Market, Operational Risk and Liquidity Risk and Pillar II risks; quantification of these risks, wherever possible. The disciplined risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective assessment and measurement procedures and continuous monitoring and controlmonitoring. An independent risk management function ensures that risk is managed through a risk management architecture as well as through policies and processes approved by Board of Directors. The key risks that the Bank is exposed to in the course of its business are Credit Risk, Market Risk, Liquidity Risk and Operational Risk. These risks not only have a bearing on the Bank’s financial strength and operations but also its reputation. Keeping this in mind, bank has in place a Board approved Risk Strategy / Policies whose implementation is overseen by Board of directors of the bank. The Board of Directors has oversight on all the risks assumed by the Bank and approves the risk policies and strategies to establish an integrated risk management framework and control system in the Bank. The Integrated Risk Management Committee (IRMC), a board level committee entrusted with the overall responsibility of ensuring that the adequate structures, policies and procedures are in place for risk management in the bank. The day-to-day assessment, measurement and monitoring of various risks is managed by the Risk Management Department. The Risk Management department is headed by the Chief Risk Officer (CRO). The CRO reports to the IRMC. of the Board. The CRO is responsible for ensuring an effective implementation of an enterprise-wide risk management framework through various risk policies, processes and limits. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks. The Bank continues to focus on improving its risk measurement systems including automation of the processes wherever feasible to ensure compliance of regulatory requirements as well as bringing efficiency in the risk management framework. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board Bank has successfully implemented Basel norms since its introduction. Under this, it has adopted the ‘Standardized Approach’ for measurement of Directors Credit Risk, ‘Basic Indicator Approach’ for Operational Risk and ‘The Standardized Duration Approach’ for Market Risk. The Bank has formulated extensive policy on ICAAP commensurate with its sub-committee the Bank’s size, level of complexity, risk profile and scope of operations. The Bank has thus evolved a robust risk management framework, which is geared to support the strategic objectives and business plans of the Bank. The Integrated Risk Management Committee (IRMC) of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk management The IRMC of Board is administered assisted by Executive/ Senior management committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). IRMD has structured management committees; Credit Risk Management Committee the Executive Committees (CRMC), Operational Risk Management Committee (ORMC, MRMC & ALCO) and Market Risk Management Committee (MRMC) by review of policies for credit risk, operational different risk and market risk categories that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios have a material bearing on the adequacy bank. These committees anticipate vulnerabilities in business & embedded risks for management, monitoring & control of capital. The stress scenarios are idiosyncratic, generic and a combination of both. Business Responsibility Report In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31st March every year are required to submit their Business Responsibility Report(BRR) as a part of the Annual Report. The Bank’s Business Responsibility Report describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure- 7. Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 The Bank does not engage in any form of child labour/ forced labour/involuntary labour and does not adopt any discriminatory employment practices. The Bank has a policy against sexual harassment and an “Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace” for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, no complaint was lodged before the committee and no case is pending for disposal. Loans, Guarantees & Investment in Securities Pursuant to section 186(11) of the Companies Act, 2013, the provisions of section 186 of the Companies Act, 2013, except sub-section (1), do not apply to loans made, guarantees given or security provided by a Banking company in the ordinary course of businessvarious risks.The particulars of investments made by the bank are disclosed in Schedule 8 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949. Contracts or Arrangements with Related Parties Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm’s length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is (xxxx://xxxxxx.xxx/xxxxxx/xxxxxx/ policy.php). Statement of related party transactions under sub section (1) of section 188 of the Companies Act, 2013 is attached herewith as Annexure 6. Information under Insolvency and Bankruptcy Code, 2019 The Bank as on 31st March, 2020 has cases under the IBC resolution the details whereof along with existing status is tabulated as under: S. No. No. of Ac- counts Stage of Process NPA / NPI outstanding Reco v - e r i e s during the year , if any 1 35 Resolution process(Pending with NCLT) 2812.98 Nil 2 10 Liquidation Process 1094.32 0.65 3 1 Resolution approved/ implemented during the year 45.78 4.03 Frauds reported by the Bank (Amt. in Crs) Bank, its Subsidiary (JKB Financial Services Ltd.)and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 82nd Annual General Meeting of the Bank alongwith Bank’s Financial Statements under sub-section (20) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2020 form part of this Annual Report. Statutory Auditors The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Joint Statutory Auditors The Bank during the financial year 2019-20 has detected/ reported 23 cases of fraud to Reserve Bank of India involving an amount of Rs. 221.14 Crore. Frauds reported by Auditors During the year under review, one fraud was reported by one of the Joint statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.

Risk Management. A well-defined, comprehensive risk management framework of our bank is based on accepting various risks, controlled risk assessment, measurement and monitoring of these risks. The key components of the Bank’s Risk Management architecture rely on the risk governance structure, comprehensive processes and internal control mechanism based on approved policies and guidelines. The Bank’s risk management processes are guided by way framework is based on a clear understanding of policies adopted appropriately for various risks, disciplined risk categories, assessment and measurement procedures and continuous monitoring. An independent risk oversight management function ensures that risk is managed through a risk management architect as well as through policies and periodic monitoring processes approved by Board of Directors, . The key risks that the sub-committees Bank is exposed to in the course of the Board of Directors, Senior Management Committees – its business are Credit Risk Management CommitteeRisk, Market Risk, Liquidity Risk Management Committee, and Operational Risk Management Committee & Asset Liability Committee (ALCO)Risk. These policies risks not only have a bearing on the Bank’s financial strength and operations but also its reputation. Keeping this in mind, bank has in place a Board approved from time to time Risk Strategy / Policies whose implementation is overseen by Board of Directors, Committees directors of Board form the basis for governing framework for each type of riskbank. The Board sets the overall risk appetite and philosophy for the Bank and have an of Directors has oversight on all the risks assumed by the Bank and approves the risk policies and strategies to establish an integrated risk management framework and control system in the Bank. The Bank’s Integrated Risk Management frwork focuses on Committee (IRMC), a board level sub-committee entrusted with the overall responsibility of ensuring that the adequate structures, policies and procedures are in place for risk management in the bank. The day-to-day assessment, measurement and monitoring of key areas various risks is managed by the Risk Management Department. The Risk Management department is headed by the Chief Risk Officer (CRO). The CRO reports to the IRMC of Risk such as Creditthe Board. The CRO is responsible for ensuring an effective implementation of an enterprise- wide risk management framework through various risk policies, Marketprocesses, Operational Risk and Liquidity Risk and Pillar II risks; quantification of these risks, wherever possiblelimits. The risk management function in the Bank strives to proactively anticipate vulnerabilities in the business operations through quantitative or qualitative examination of the embedded risks for effective and continuous monitoring and controlrisks. An independent The Bank continues to focus on improving its risk management function ensures that risk is managed through a risk management architecture measurement systems including automation of the processes wherever feasible to ensure compliance of regulatory requirements as well as through policies and processes approved by Board of Directorsbringing efficiency in the risk management framework. The risk management policies and procedures established are updated on continuous basis in compliance to RBI guidelines and benchmarked to best practices. The Board Bank has successfully implemented Basel norms since its introduction. Under this, it has adopted the ‘Standardized Approach’ for measurement of Directors Credit Risk, ‘Basic Indicator Approach’ for Operational Risk and ‘The Standardized Duration Approach’ for Market Risk. The Bank has formulated extensive policy on ICAAP commensurate with its sub-committee the Bank’s size, level of complexity, risk profile and scope of operations. The Bank has thus evolved a robust risk management framework, which is geared to support the strategic objectives and business plans of the Bank. The Integrated Risk Management Committee (IRMC) of the Board reviews risk management policies of the Bank pertaining to credit, market, liquidity, operational & Pillar II risks that includes strategic risk and reputational risk, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. Risk management The IRMC of Board is administered assisted by Executive/ Senior management committees & Chief Risk Officer (CRO) through Integrated Risk Management Department (IRMD). IRMD has structured management committees; Credit Risk Management Committee the Executive Committees (CRMC), Operational Risk Management Committee (ORMC, MRMC & ALCO) and Market Risk Management Committee (MRMC) by review of policies for credit risk, operational different risk and market risk categories that operate within the broad risk management framework of the Bank to assess and minimize these risks. Information security and business continuity plan also forms part of risk management functions in the Bank. Treasury activities are separately monitored by mid office, which reports to IRMD. The Bank has Stress Testing Policy to measure impact of adverse stress scenarios have a material bearing on the adequacy bank. These committees anticipate vulnerabilities in business & embedded risks for management, monitoring & control of capital. The stress scenarios are idiosyncratic, generic and a combination of both. Business Responsibility Report In terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, top 1000 Listed Entities based on their market capitalization as on 31st March every year are required to submit their Business Responsibility Report(BRR) as a part of the Annual Report. The Bank’s Business Responsibility Report describing the initiatives taken by the Bank from an environmental, Social and governance perspective is enclosed as Annexure- 7. Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 The Bank does not engage in any form of child labour/ forced labour/involuntary labour and does not adopt any discriminatory employment practices. The Bank has a policy against sexual harassment and an “Internal Complaints Committee for Prevention, Prohibition and Redressal of Sexual Harassment of Women at Workplace” for dealing with complaints of harassment or discrimination. The said policy is in line with relevant Act passed by the parliament in 2013. The Bank, through the policy ensures that all such complaints are resolved within defined timelines. During the year, no complaint was lodged before the committee and no case is pending for disposal. Loans, Guarantees & Investment in Securities Pursuant to section 186(11) of the Companies Act, 2013, the provisions of section 186 of the Companies Act, 2013, except sub-section (1), do not apply to loans made, guarantees given or security provided by a Banking company in the ordinary course of businessvarious risks.The particulars of investments made by the bank are disclosed in Schedule 8 of the Financial Statements as per the applicable provisions of the Banking Regulation Act, 1949. Contracts or Arrangements with Related Parties Considering the nature of the Industry in which the Bank operates, transactions with related parties of the Bank are in the ordinary course of business and are also at arm’s length basis. There was no materially significant related party transaction entered by the Bank with promoters, Directors, Key managerial personnel or other persons which may have a potential conflict with the interests of the Bank. The policy on Related Party Transactions and dealing with related parties as approved by the Audit Committee and the Board of Directors is uploaded on the website of the Bank and the link for the same is (xxxx://xxxxxx.xxx/xxxxxx/xxxxxx/ policy.php). Statement of related party transactions under sub section (1) of section 188 of the Companies Act, 2013 is attached herewith as Annexure 6. Information under Insolvency and Bankruptcy Code, 2019 The Bank as on 31st March, 2020 has cases under the IBC resolution the details whereof along with existing status is tabulated as under: S. No. No. of Ac- counts Stage of Process NPA / NPI outstanding Reco v - e r i e s during the year , if any 1 35 Resolution process(Pending with NCLT) 2812.98 Nil 2 10 Liquidation Process 1094.32 0.65 3 1 Resolution approved/ implemented during the year 45.78 4.03 Frauds reported by the Bank (Amt. in Crs) Bank, its Subsidiary (JKB Financial Services Ltd.)and also its Associate (J&K Grameen Bank) which shall be laid before shareholders at the ensuing 82nd Annual General Meeting of the Bank alongwith Bank’s Financial Statements under sub-section (20) of Section 129 i.e. Standalone Financial Statements of the Bank. Further, pursuant to the provisions of Accounting Standard (AS) 21 - Consolidated Financial Statements notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014 issued by the Ministry of Corporate Affairs, the Consolidated Financial Statements of the Bank along with its subsidiary/Associate for the year ended March 31, 2020 form part of this Annual Report. Statutory Auditors The Central Statutory and Branch auditors of the Bank are appointed by the Comptroller & Auditor General of India (C&AG) pursuant to Section 139(5) of the Companies Act, 2013. The Bank had four (4) Joint Statutory Auditors The Bank during the financial year 2019-20 has detected/ reported 23 cases of fraud to Reserve Bank of India involving an amount of Rs. 221.14 Crore. Frauds reported by Auditors During the year under review, one fraud was reported by one of the Joint statutory auditors under section 143 (12) of the Companies Act, 2013 to the Ministry of Corporate Affairs, Govt. of India.