GUJARAT ALKALIES AND
CHEMICALS LIMITED
CORPORATE SOCIAL
RESPONSIBILITY (CSR)
POLICY
GUJARAT ALKALIES AND CHEMICALS LIMITED
PO. : PETROCHEMICALS : 391 346
DIST. : VADODARA
CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY
INDEX
CH. TITLE PAGE NO.
1. SECTION – 1 : CONCEPT :
SHORT TITLE & APPLICABILITY
1.1 Short title 2
1.2 Definitions 2
1.3 CSR Vision Statement & Objective 3
2. SECTION – 2 : RESOURCES :
2.1 Budget 4
2.2 Spending 4
3. SECTION – 3 : PLANNING :
3.1 Identification of Thrust Areas 4
3.2 Strategic Initiatives 5
4. SECTION 4 - IMPLEMENTATION :
4.1 Geographical Coverage/Area of CSR activities 6
4.2 Project Identification 7
4.3 Executing Agency/Partner 7
4.4 Monitoring & Evaluation 8
4.5 Documentation 8
5. SECTION - 5 : AUTHORITY, RESPONSIBILITY &
ACCOUNTABILITY :
5.1 Powers for Approval 9
5.2 Responsibility 10
6. SECTION – 6 : GENERAL : 10 -11
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SECTION - 1: CONCEPT
1. SHORT TITLE & APPLICABILITY :
Backdrop :
Ever since its inception, GACL has been, as a conscious corporate citizen,
serving the community around its business locations and much before the
concept of CSR got clad into legal frame-work through Companies Act, 2013,
there existed a CSR Department to carry out the social services to the
community at large in a systematic way.
The present CSR policy is being documented with a candid objective of
formalizing as a document of what is being done by the Company and what
would it proposes to do in the time to come. Section 135 read with Schedule VII
to the Companies Act, 2013 and the Corporate Social Responsibility Rules, 2014
(CSR Rules) has prescribed the requirements as to what should be the legal and
structured framework for doing the CSR activities.
The CSR policy of the Company, in the backdrop of such prescribed
requirements, is enunciated in the foregoing paragraphs :
1.1. SHORT TITLE :
1.1.1 This policy, which encompasses the Company’s philosophy for
delineating its responsibility as a corporate citizen and lays down
the guidelines and mechanism for undertaking socially relevant
programs for welfare & sustainable development of the community
at large, is titled as the ‘GACL CSR Policy’.
1.1.2 This policy shall apply to all CSR initiatives and activities taken up
at the various Plant / Business locations of Gujarat Alkalies and
Chemicals Limited (hereinafter referred to as GACL for the sake
of brevity), for the benefit of different segments of the society.
1.2. DEFINITIONS :
Act :
Act shall mean the Companies Act, 2013 including with reference
to Section 135 and shall include any amendments thereto or
reenactments thereof.
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CSR :
Means and includes activities that are carried out as Corporate
Social Responsibility and fall within the ambit of Section 135 read
with Schedule VII to the Companies Act, 2013.
GACL :
GACL shall include all its plants/units, in India.
Net Profit :
Net Profit means as defined in Rule 2(f) of the Companies
(Corporate Social Responsibility Policy) Rules, 2014.
Rules :
Rules means the Companies (Corporate Social Responsibility
Policy) Rules, 2014.
Schedule :
Means Schedule VII to the Companies Act, 2013 and as
amended from time to time.
1.3. CSR VISION STATEMENT & OBJECTIVE :
1.3.1 Vision :
In alignment with vision of the Company, GACL, through its CSR
initiatives, shall continue to enhance value creation in the society
and in the community in which it operates, through its services,
conduct & initiatives, so as to promote sustained growth for the
society and community, in fulfillment of its role as a Socially
Responsible Corporate Citizen with environmental concern. The
Ultimate Objective of CSR activities at GACL is to improve the
“Human Development Index.”
1.3.2 Objective:
• To ensure an increased commitment at all levels in the
organization towards CSR, to operate its business in an
economically, socially & environmentally sustainable
manner, while recognizing the interests of all its
stakeholders.
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• To directly or indirectly take up programs that benefit the
communities in & around GACL, over a period of time, thus
uplifting / enhancing the quality of life & economic well-being
of the local populace.
• To generate, community goodwill for GACL and help
reinforce a positive & socially responsible image of GACL
through its CSR initiatives.
SECTION – 2 : RESOURCES
2. 2.1. BUDGET :
For achieving its CSR objectives through implementation of meaningful &
sustainable CSR programs, GACL will allocate statutorily permissible
atleast 2% of its average past three financial year’s net profit and the said
amount shall be worked out in accordance with the requirements of the
provisions of law for the time being in force and this would be the overall
Annual CSR Budget.
2.2. SPENDING :
Any unspent / unutilized CSR allocation of a particular year, will be dealt
with in due compliance of law for the time being in force.
Any surplus arising out of CSR Projects or Programs or activities may not
form part of the business profits of a Company.
SECTION – 3 : PLANNING
3. 3.1. INDENTIFICATION OF THRUST AREAS :
3.1.1 For purposes of focusing its CSR efforts in a continued and
effective manner, the following Thrust Areas have been identified :
I. Education & Vocational Training Programs;
II. Health;
III. Development of neighborhood of existing complexes;
IV. Upgradation of existing sanitary toilets;
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3.1.2 As far as possible efforts shall be made to prioritise the heads
under which amount earmarked for CSR activities amongst the
thrust areas. However, the decision of CSR Committee shall be at
liberty to decide the allocation / reallocation of the earmarked
amount/s.
3.2. STRATEGIC INITIATIVES :
3.2.1 Schedule VII of the Companies Act, 2013, contains the activities
which may be considered as eligible for CSR activities.
GACL may undertake one or more project/s under any or all of the
following thrust areas or such other area that may, under the law
for the time being in force, be permissible.
The thrust areas mandated shall be :
1) To take up any such developmental activities which is not
replicated by Government initiatives;
2) Should bring good visibility and branding of the company;
3) Should provide benefits to the society
4) Should be sustainable in nature.
3.2.2 CSR programs will be undertaken by GACL Education Society to
the best possible extent within the framework of the above areas.
3.2.3 The time period / duration over which a particular program will be
spread, shall depend on its nature, extent of coverage and the
intended impact of the program.
SECTION – 4 : IMPLEMENTATION
4. 4.1. GEOGRAPHICAL COVERAGE / AREA OF CSR ACTIVITIES :
4.1.1 CSR works being focused in the areas adjoining to GACL and few
less developed Talukas. The programs identified should normally
fall within a reasonable radius from GACL.
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4.1.2 This will include nearby areas and villages around the set up of
GACL i.e. Baroda Complex & Dahej Complex and Windmills or
any other unit of GACL that may be set up in future. These areas
shall be considered as the local area for spending the amount
earmarked for CSR activities for the purposes of determining the
jurisdiction as contained in the Act and the CSR Rules made there
under. However, in case need arises to carry out CSR activities
other than the local areas, the same may be done with approval of
CSR Committee.
4.1.3 The amount earmarked for CSR shall be spent by the Company
in the local area and the surrounding areas where the Company
operates. The amount may be spent for CSR activities in other
areas considering the need with approval of CSR Committee.
4.2. PROJECT IDENTIFICATION :
At GACL, CSR project identification shall be done broadly by means of the
following :
(a) Need identification Studies by professional, institutions / agencies;
(b) Internal need assessment by cross‐functional team at the local level;
(c) Receipt of proposals / requests from District Administration / Local
Govt. etc.;
(d) Discussions and request with local representatives / Civic bodies /
Citizen’s forums / Voluntary Organizations;
(e) Such other means / sources as may be deemed fit.
4.3. EXECUTING AGENCY / PARTNERS :
4.3.1 GACL will take up its CSR activities through GACL Education
Society, which will seek to identify suitable programs for
implementation in line with the CSR objectives of the Company
and also benefit the stakeholders and the community for which
those programs are intended. These works would be done either
independently or through :
i. Community based organizations whether formal or informal;
ii. Elected local bodies such as Panchayats etc.;
iii. Voluntary Agencies (NGOs);
iv. Institutes / Academic Organizations;
v. Trusts, Missions;
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vi. Self‐help Groups;
vii. Government, Semi‐Government and autonomous
Organizations;
viii. Standing Conference of Public Enterprises (SCOPE);
ix. Mahila Mandals / Samitis;
x. Contracted agencies for civic works;
xi. Professional Consultancy Organizations; and
xii. Such others as may be deemed fit.
4.3.2 Criterion for identifying Executing agency :
While identifying programmes, if required an external agency will
be identified which would help to execute the said program. In
case of program execution by NGOs / Voluntary organizations,
the following criteria need to be ensured :
• The NGO / Agency has a permanent office / address in
India;
• The NGO is a registered Trust and/or a Society under
Societies’ Registration Act;
• Possesses a valid Income‐tax Exemption Certificate;
• The above mentioned agencies should be having minimum
work experience in the respective areas as may be decided
by CSR Committee.
4.3.3 Any work assigned to an external agency should be executed
only after entering into Memorandum of Understanding /
Agreement / Acknowledgment of work order containing Scope of
work.
4.4. MONITORING & EVALUATION :
4.4.1. To ensure effective implementation of the CSR programmes
undertaken, a monitoring mechanism will be put in place. The
progress of CSR programmes under implementation and status
of the work done shall be reported to CSR Department of the
Company.
4.4.2. The CSR Department shall also conduct impact studies on a
periodic basis, through independent professional third parties /
professional institutions, especially on the strategic and high
value programs.
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4.4.3. There shall also be put in place a proper system for obtaining
feedbacks from beneficiaries of the CSR program of the
Company.
4.5. DOCUMENTATION :
4.5.1 Appropriate documentation of the GACL CSR Policy, annual
CSR activities, executing partners details, and expenditure
incurred / earmarked shall be undertaken on a periodical basis
and the Company’s CSR policy as well as its activities shall be
suitably placed on its website.
4.5.2 Suitable reporting on CSR initiatives of the Company shall be
made in the Annual Report of the Company as required under
the Companies Act, 2013 and the rules made there under with
effect from Financial Year 2014-15.
SECTION – 5 : AUTHORITY, RESPONSIBILITY &
ACCOUNTABILITY
5. 5.1. POWERS FOR APPROVAL :
5.1.1 Hierarchy flow :
The hierarchy flow of the CSR activities shall be as follows:
Board
CSR Committee
Managing Director
CSR Department
GACL Education Society
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Areas of CSR activities as may be identified shall be placed
5.1.2 before the CSR Committee of the Board at the beginning of
each Financial Year as well as at such intervals as may be
deemed fit and proper. The Budget for CSR activities shall form
part of the Annual Revenue Budget of the Company and shall
be placed before the Board of Directors for approval. The
Board will authorize CSR Committee to spend from the budget.
The reporting to the Board by CSR Committee shall be made
annually.
5.1.3 For meeting the requirements arising out of immediate and
urgent situations, the Managing Director is authorized to
approve proposals within the overall budget and the same shall
be placed before CSR Committee for post facto approval.
5.1.4 To afford a further degree of flexibility, the CSR Committee
/Managing Director may authorize Head of CSR Department
who shall hold a position of CEO of GACL Education Society to
spend amount towards CSR activities to such extent as may be
deemed fit within the overall budget limits.
5.2. RESPONSIBILITY :
5.2.1 Responsibility of Board will be :
1. To approve the CSR policy recommended by the CSR
Committee and disclose the contents of such policy in its
report and place in its report and place it on Company’s
Website.
2. To ensure 2 % spending on CSR activities.
3. To report CSR activities in Board’s report and disclose
with reasons for non spending of CSR fund (2%).
5.2.2 Responsibility of CSR Committee will be :
1. To formulate and recommend a CSR policy to the Board.
2. To recommend and ensure spending of the amount of
expenditure to be incurred on CSR activities.
3. To monitor & implement the CSR policy of the Company
from time to time.
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5.2.3 Responsibility of the Managing Director will be :
To give approval for CSR projects within the policy framework
and monitor projects undertaken by CSR Department from time
to time.
5.2.4 Responsibility of CSR Department will be :
1. To identify and implement CSR Projects with due
approvals.
2. To pass on the said identified projects for
implementation to GACL – Education Society with due
approvals of the competent authority.
SECTION – 6 : GENERAL
6. 6.1. In case of any doubt with regard to any provision of the policy and also in
respect of matters not covered herein, a reference to be made to CSR
Committee. In all such matters, the interpretation & decision of the
Chairman (CSR Committee) in consultation with the Managing Director
shall be final.
6.2. Any or all provisions of the CSR Policy would be subject to revision /
amendment in accordance with the requirements of the law for the time
being in force.
6.3. The Company reserves the right to modify, cancel, add, or amend this
CSR Policy.
6.4. CSR Committee will meet at such intervals as may be required. The
quorum for the CSR Committee shall be at least two members or one third
of the members of the CSR Committee, whichever is greater.
6.5. In case of urgent payment for a CSR Project/s, a post facto approval shall
be taken by from the CSR Committee. However it may be ensured that the
said CSR Project/s should be within the ambit of this CSR policy as well
as within the budget approved by the Board.
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