Objectives of the Policy
The objectives of this policy are:
(a) To set forth the company’s Corporate Social Responsibility Policy as stipulated in the Section 135
of the Companies Act, 2013 and the rules thereof
(b) To identify and formulate the broad areas the company shall pursue towards fulfilling its CSR
obligations
(c) To serve as a guiding document to plan, identify, implement and monitor CSR initiatives
Scope of the Policy
This policy is applicable to all regular employees and trainees across business units at all locations of
the Company.
Focus areas of CSR
In accordance with the requirements under the Companies Act, 2013, CSR activities, amongst others,
will focus on:
1. Promoting education including special education and employment enhancing vocational skills
especially among children, women and the differently abled and livelihood enhancement projects;
3
The Company may contribute to other areas of interest as permitted under Schedule VII of the
Companies Act.
Governance Structure
Pursuant to The Companies (Amendment) Act, 2020,where the amount to be spent by a company
under sub-section (5) does not exceed fifty lakh rupees, the requirement under sub-section (1) of
section 135 of Companies Act, 2013 for constitution of the Corporate Social Responsibility
Committee shall not be applicable and the functions of such Committee provided under this section
shall, in such cases, be discharged by the Board of Directors of such company.
Since the amount to be spent for CSR Activities is less than INR 50 Lakh, the functions of CSR
committee shall be discharged by the board of Directors of the Company. The Company shall
constitute CSR Committee as and when amount to be spent on CSR Activates is INR 50 Lakh or more.
The management will identify Suitable projects/ activities to be undertaken by the Company under
CSR and place before the Board for approval.
The CSR Projects / Activities will be implemented after approval of Board.
Budget
A specific budget shall be allocated for CSR activities alongwith the projected plan on an annual
basis. The amount & the projected plan shall be approved by the Board as per the requirements laid
out in the Section 135 of the Companies Act 2013.
The total budget proposed for the CSR projects covered under this policy shall be 2% of the average
net profits of Company made during the three immediately preceding financial years; where the ‘net
profit’ is calculated as mentioned in Section 135 of the Companies Act 2013 for CSR Spend.
Any surplus arising and/or additional revenue generated out of CSR Activities undertaken by the
Company shall not form part of the business profit of the Company and same shall be spent only for
undertaking CSR activities or shall be transferred to the Unspent CSR Account and spent in
pursuance of CSR policy and annual action plan of the company or transfer such surplus amount to a
Fund specified in Schedule VII, within a period of six months of the expiry of the financial year.
Implementation plan of CSR Projects:
Following are the different stages to be followed of the CSR project/Activities:
a. Project identification
The projects will be identified and suggested to Board for approval. The projects must be aligned to
the requirements of the Schedule VII of the Companies Act 2013. The projects that are located in
proximity to the areas where the company operates would be accorded preference for approval.
b. Approval of Board
An annual action plan in pursuance of its CSR policy shall be placed before the board in first Board
meeting of financial year in below mentioned format:
Sr.no. |
Details of CSR
projects or
programmes |
Manner of
execution (i.e
Direct or
through
Implementation
Agency) |
Modalities of
utilisation of
funds and
implementation
schedules for
the projects or
programmes |
Monitoring
and reporting
mechanism
for the
projects or
programmes |
Details of
need and
impact
assessmen
t |
c. Implementation and Monitoring
The Board of Directors alongwith the Working Team shall formulate a plan of action for the
approved projects that specify details of the project including activities to be undertaken, period of
implementation, budget plan, project governance and expected results.
The company may implement the CSR projects in one or more of the following modes or by way of a
combination thereof:
i. Directly by the company as projects ;
ii. a company established under section 8 of the Act, or a registered public trust or a registered
society, registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961), established
by the company, either singly or along with any other company;
iii. a company established under section 8 of the Act or a registered trust or a registered society,
established by the Central Government or State Government;
iv. any entity established under an Act of Parliament or a State legislature;
v. a company established under section 8 of the Act, or a registered public trust or a registered
society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an
established track record of at least three years in undertaking similar activities
vi. A company may also collaborate with other companies for undertaking projects or programmes
or CSR activities in such a manner that the both companies are in a position to report separately on
such projects or programmes in accordance with CSR rules.
d.Reporting
The Board of Directors will annually publish report on the CSR projects as a part of the Director’s
report. The report will disclose information in the format as prescribed by the Section 135 of the
Companies Act, 2013 and rules made there under.
Transfer of unspent CSR amount
The Board of Directors shall transfer unspent amount
to fund specified in Schedule VII of the Companies Act, 2013 within a period of six months of
the expiry of the financial year and in case of ongoing projects unspent amount shall be
transferred by the company within a period of thirty days from the end of the financial year
to a special account to be opened for that financial year in any scheduled bank to be called
the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the
company in pursuance of obligation towards the Corporate Social Responsibility Policy
within a period of three financial years from the date of such transfer, failing which, the
company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty
days from the date of completion of the third financial year.
Notification
The CSR Policy and CSR Projects / Activities approved by the Board shall be displayed on
the website of the Company, on approval of the Board.
Amendments to the Policy
This policy will be reviewed periodically by the Board of Directors to check the effectiveness and
impact of the policy. The Board of Directors has the right to amend or modify this policy in whole or
in part, at any time, as deemed necessary.