1.0 PROLOGUE
Pursuant to the Section 135 of the Companies Act, 2013 (hereinafter refer as “the Act”) read with the Companies (Corporate Social Responsibility Policy) Rule, 2014, and any amendment made time to time, the Company is required to adopt the Corporate Social Responsibility (CSR) policy in the organization to add sense of responsibility and contribution among corporate which is expected to be Beneficial to all stakeholders, environment etc. towards which such CSR activities may be focused.
The Companies Act, 2013 has introduced the idea of CSR recently but your Company is voluntarily following it since last many years. Our Company believes the policy which is more and more beneficial to the society at large by promoting and encouraging economic, social and educational development and also giving active support to local initiatives around its area of operation thereby promoting upliftment of people in varied arenas of life.
Produced here below is the “Corporate Social Responsibility (CSR) Policy” to contribute more and more to the social and economic development of the communities in which we operate. In doing so, the company will build a better, sustainable way of life for the weaker sections of society and environment.
2.0 RECOGNIZED ACTIVITIES FOR THE PURPOSE OF CSR
CSR Policy relates to the activities to be undertaken by the Company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.
The activities as specified in Schedule VII that can be undertaken by a company to fulfill its CSR obligations are mentioned below:
- Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water;
- Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
- Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
- Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water;
- Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional handicrafts;
- Measures for the benefit of armed forces veterans, war widows and their dependents;
- Training to promote rural sports, nationally recognized sports, Paralympics sports and Olympic sports;
- Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
- Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
- Rural development projects.
Following activities shall not be considered under the CSR activities.
- Activities that benefit only the employees of the Company and their families.
- Activities undertaken outside India.
- Contribution of any directly or indirectly to any political party of the Act.
- Such other activities or contribution as strictly prohibited under the Act for claiming as CSR.
3.0 CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE
- The Company has constituted a Corporate Social Responsibility Committee (hereinafter referred as “the CSR Committee”) as per the provision of Section 135 of the said Act; to do the work as mentioned herein after.
The CSR Committee is responsible for:
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- To recommend the amount of expenditure to be incurred on the activities herein before.
- To monitor the implementation of Corporate Social Responsibility Policy of the Company from time to time.
- The CSR Committee shall arrange to provide all required inputs to undertake CSR activities and shall review all social initiatives. The CSR Committee shall update the Board of Directors on periodically.
- The Board of Directors shall include an Annual Report on CSR activities in their report.
4.0 STRUCTURE FOR CONDUCTING CSR
The Company may directly undertake the CSR activities.
The Company also may conduct CSR through;
- Registered trust, or
- Registered society, or
- Company under section 8 of the Act Le. non-profit organization.
Further to that the Company may also collaborate with our other Companies to undertake the CSR activities.
5.0 OBLIGATION UNDER CSR ACTIVITIES
- The Company is mandatorily required to spend at least 2% of the average *Net profit of 3 immediately preceding financial years on specified CSR activities.*Net Profit means the net profit of the Company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following;
- Any profit arising from any overseas branch or branches of the Company, whether operated as a separate Company or otherwise; and
- Any dividend received from other Companies in India which are covered under and complying the provisions of CSR rules.
- Any surplus arising out of the CSR projects or programs or activities shall not form a part of the business profit of the Company.
- The Board of Directors of the company shall, after taking into account the recommendations of CSR Committee, approve the CSR Policy for the company and disclose contents of such policy in its report and the same shall be displayed on the company’s website.
This policy shall remain in force unless modified by the Corporate Social Responsibility (CSR) Committee.
6.0 POLICY REVIEW & FUTURE AMENDMENT
This policy shall remain in force unless modified by the Board. The Board shall review the pollicy periodically.