The main objective of Corporate Social Responsibility (CSR) policy is to make CSR a key business process for sustainable development of the society.
The Company will act as a good corporate citizen and aim at supplementing the role of Government in enhancing the welfare measures of the society within the framework of its policy.
The CSR policy shall be read in line with section 135 of the Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other rules, regulations, circulars and notifications as may be applicable and as amended from time to time.
Corporate Social Responsibility Committee
The Board of Directors of the Company shall constitute a Corporate Social Responsibility Committee of the Board (“CSR Committee”) consisting of three or more Directors.
- Formulate and recommend to the Board, a CSR policy and activities to be undertaken by the Company as per Schedule VII of the Companies Act, 2013
- Recommend the amount of expenditure to be incurred on the activities; and
- monitor and review the CSR Policy of the Company from time to time
The Board of the Company shall after taking into account the recommendations made by the CSR Committee, approve the policy for the Company and disclose contents of such Policy in its report and also place it on the Company’s website and ensure that the activities as are included in the CSR Policy of the Company are undertaken by the Company.
Constitution of the CSR Committee
The CSR initiatives / activities of the Company will be identified and initiated by the CSR Committee comprising 3 (three) Members of the Board. Subject to the requirements of the Act, the Board may increase or decrease the size of the CSR Committee by passing a Board Resolution.
The members of the CSR Committee shall elect one of them as the Chairman of the Committee. The CSR Committee shall recommend to the Board the amount of expenditure to be incurred by the Company on CSR activities and the Board will ensure that the activities as are included in the CSR Policy are undertaken by the Company subject to and in accordance with the provisions of section 135 of the Companies Act, 2013.
The current members of the CSR Committee shall be the following:
- Mr. Anand Shah, Managing Director
- Mr. Susheel Koul, Director
- Mr. Sumit Gupta, Nominee Director
The CSR Committee may, at its discretion, invite employees of the Company from time to time to participate in the meetings of the CSR Committee and assist the CSR Committee in the implementation of the CSR Policy. Invitees to the CSR Committee meetings shall be entitled to participate in the deliberations of the CSR Committee but will not be entitled to vote at the meetings of the CSR Committee.
A specific budget will be allocated for CSR activities and spending on CSR activities shall not be less than 2% of the average net profits of the Company made during the three immediately preceding financial years, in pursuance of this policy, computed under provisions of section 198 of the Companies Act, 2013.
Further, any surplus arising out of the CSR Projects or Programs or Activities shall not form part of the business profits of the Company.
The following is the list of CSR projects or programs which the Company may undertake pursuant to Schedule VII of the Companies Act, 2013:
- Eradicating hunger, poverty and malnutrition, promoting health care including 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, agroforestry, 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 arts and handicrafts
- Measures for the benefit of armed forces veteran, war widows and their dependents
- Training to promote rural sports nationally recognized 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
Monitoring & Reporting Mechanism
In compliance with the Act and to ensure whether funds spent on CSR projects / programs are creating the desired impact on the ground, a comprehensive Monitoring and Reporting framework is being put in place. The monitoring and reporting mechanism is as follows:
- The CSR policy is implemented as per the Act and the Rules
- The CSR policy is implemented ensuring that all projects / programs as budgeted are duly carried out
- CSR spends will be audited in an accountable and transparent manner
- Reporting and review by the CSR committee twice in a year and by annual reviews by the Board
- CSR Committee will be authorized to decide whether it will be internal, external or third party evaluation
The Company shall publish its annual report on CSR Activities in its Director’s Report in the manner prescribed under the Companies Act, 2013 and the CSR Rules.