CSR Policy
Introduction
Corporate Social Responsibility (CSR) was usually considered as a philanthropic activity in India prior to the notification of Section 135 of the Companies Act, 2013. The new Act made it mandatory for companies meeting specific financial criteria to constitute a CSR Committee and spend at least 2% of their net profit on CSR activities.
This policy lays down the guidelines and mechanism for undertaking socially useful projects for the welfare & sustainable development of the local community at large.
Our CSR Vision
"In coalition with the vision of the company, through its CSR initiatives, will continue to enhance value creation in the society and in the community in which it operates... to promote sustained growth for the society and community, in fulfillment of its role as a Socially Responsible Corporate, with environmental concern."
Key CSR Activities
The Company shall undertake the following activities as part of its Corporate Social Responsibility, giving preference to local areas.
Eradicating Hunger
Promoting preventive health care, sanitation, and making available safe drinking water to combat poverty and malnutrition.
Promoting Education
Special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled.
Gender Equality
Empowering women, setting up homes for orphans, old age homes, day care centers, and measures for reducing inequalities.
Environmental Sustainability
Ensuring ecological balance, protection of flora and fauna, animal welfare, agroforestry, and conservation of natural resources.
Heritage & Art
Protection of national heritage, restoration of historical sites, setting up public libraries, and promotion of traditional arts.
Veterans & Sports
Measures for armed forces veterans, war widows and dependents. Training to promote rural and nationally recognized sports.
Governance Structure
CSR Committee
Appointed by the Board. Formulates CSR Policy, recommends budget, and spends allocated amounts. Meets at least once every 6 months.
Role of the Board
Approves CSR policy, ensures website disclosure, ensures activities are executed, and reports reasons if the budget is unspent.
Monitoring Mechanism
A Joint Working Group ensures effective implementation and submits periodic reports to the CSR Committee. Uses a project-based accountability approach.
CSR Budget
The Act mandates allocating at least 2% of annual net profits (before tax) of the three immediately preceding financial years for CSR activities.
- Administrative overheads shall not exceed 5% of total CSR expenditure.
- Surplus arising from CSR activities shall not form part of business profits.
Implementation
Activities may be undertaken through a registered trust, society, or Section 8 company. Collaboration with other companies is permitted provided separate reporting is possible.
Contingency
Urgent projects for Natural Calamities can be taken up with Chairman & Committee approval.
Policy Details
Exclusions
- CSR activities shall not include activities undertaken in pursuance of normal course of business.
- The Company shall not make any payment directly or indirectly to Political Parties.
- Projects benefiting only the employees of the company and their families are not considered CSR.