1) INTRODUCTION

Corporate Social Responsibility (CSR) is a broad term used to describe a company’s efforts to improve society in some way. It is the effort made by companies to improve the living conditions of the local area in which they operate and the society at large. These efforts can range from donating money to non-profits, to implementing environmentally-friendly policies in the workplace. The activities taken up as part of corporate social responsibility reflect the intent to create a positive impact on the society without seeking any commensurate monetary benefits.

The Company’s objective is to pro-actively support meaningful socio-economic development in India and enable a larger number of people to participate in and benefit from India’s economic progress. This is based on the belief that growth and development are effective only when they result in wider access to opportunities and benefit a broader section of society.

It is certainly a business approach that creates a long term consumer and employee value by not only creating a ‘green strategy’ on natural environment but also considering every dimension of how a business operates in social, cultural and environment. The company should meet the needs of its all stakeholders (consumer, employees, shareholder, clients and other related persons) without sacrificing the ability to meet the needs of the future stakeholders.

The Corporate Social Responsibility Policy (CSR Policy) of the Company sets out the framework guiding the Company’s CSR activities. The Policy also sets out the rules that need to be adhered to while taking up and implementing CSR activities.

2) CORPORATE SOCIAL RESPONSIBILITY (CSR) UNDER COMPANIES ACT, 2013

Applicability
Section 135 of the Act provides for the applicability of the CSR provisions on corporates. Sub-section (1) of section lays down that every company having during the immediately preceding financial year.

• Net worth of Rs. 500 Crore or more; or
• Turnover of Rs. 1000 Crore or more; or
• Net profit of Rs. 5 Crore or more

The Board of the Company shall ensure that the company spends, in every financial year, at least two per cent. (2%) of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

3) CSR COMMITTEE AND CONSTITUTION

The CSR committee of the Board shall comprise of Three (3) or more Directors, out of which at least One Director shall be an Independent Director.

Provided that where a company is not required to appoint an independent director under sub-section (4) of Section 149, it shall have in its Corporate Social Responsibility Committee Two or more Directors.

Where the amount to be spent by a company does not exceed Rs. 50,00,000/-(Rupees Fifty LakhOnly), the requirement for constitution of the Corporate Social Responsibility Committee shall not be applicable and the functions of such Committee provided under the Section shall, in such cases, be discharged by the Board of Directors of such company.

The Board may change the composition of the CSR Committee from time to time in such manner as it thinks fit and as required under the CSR Regulations.

4) RESPONSIBILITIES OF CSR COMMITTEE

The Corporate Social Responsibility Committee shall:

• Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company in areas or subject, specified in Schedule VII;
• Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
• Monitor the Corporate Social Responsibility Policy of the company from time to time.

5) MODE OF CARRYING OUT CSR ACTIVITIES

The Company may carry out the CSR activities either on its own, or through a registered Trust or registered Society or through a Company registered under Section 8 of the Act or through one or more of the modes in such manner as it deems fit. Company may also collaborate with other Companies for undertaking projects, programs and activities in such manner as it deems fit and as approved by the CSR Committee.
In the event the Company contributes money to the corpus of a Trust/Society/Company, the CSR Committee will ensure that:

• The Trust/Society/Company has been created/incorporated exclusively for undertaking CSR Activities or such corpus of such Trust/Society/Company is created exclusively for a purpose relatable to a subject covered under CSR Regulations; and
• Such Company or Trust or Society shall have an established track record of at least 3 (Three) year in undertaking similar programs or projects;
• The Company shall give preference to CSR activities being carried out in the local areas and areas around which it operates.

6) ACTIVITIES ENUMERATED IN SCHEDULE VII OF THE ACT

• Eradicating hunger, poverty and malnutrition, “promoting health care including preventive health care” and sanitation including contribution to the Swachh Bharat Kosh set-up by the Central Government for the promotion of 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 centres 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 including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga.
• 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 art and handicrafts;
• Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows;
• Training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports
• Contribution to the Prime Minister’s National Relief Fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women;
• • Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
  • Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defence Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
• rural development projects
• slum area development.
  Explanation. - For the purposes of this item, the term `slum area' shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.
• disaster management, including relief, rehabilitation and reconstruction activities.

7) DISCLOSURE

The Company shall include in its Annual Report, the following information on CSR:

• A description of contents of the CSR policy;
• An overview of the CSR activities;
• The composition of the CSR Committee;
• Average net profit for the preceding three financial years;
• Prescribed CSR expenditure;
• Details of amount spent in the prescribed format;
• Amount unspent, if any, and reasons for not spending the amount;
• Responsibility statement of the CSR Committee that the implementation and monitoring of the CSR Policy is in compliance with the CSR objectives and CSR Policy; and
• Such other matters as may be specified from time to time for inclusion in the annual report.

The Company shall mandatorily disclose the composition of the CSR Committee, and CSR Policy and Projects approved by the Board on their website, if any, for public access. Further, a detailed status report as “Annual Report on the CSR activities” carried out by the Company would be disclosed every year as part of the Board’s Report as per the Companies (CSR Policy) Amendment Rules, 2021 which is in consonance with Section 134(3)(o) of the Act.

8) AMENDMENTS TO THE POLICY

The Board of Directors on its own and/or on the recommendation of CSR committee can amend its policy as and when required deemed fit. Any or all provisions of CSR Policy would be subjected to revision/amendment in accordance with the regulations on the subject as may be issued from relevant statutory authorities, from time to time. The Company shall, from time to time, follow the Act and the various Rules as prescribed therein.

9) EFFECTIVE DATE

The Policy shall be effective from the date of approval of the Board of Directors of the Company