Introduction
Corporate Social Responsibility (CSR) is an evolving concept that currently does not have a
universally accepted definition. Corporate Social Responsibility is also called Corporate
Citizenship or Corporate Responsibility. Generally, CSR is understood to be the way firms
integrate social, environmental and economic concerns into their values, culture, decision
making, strategy and operations in a transparent and accountable manner and thereby
establish better practices within the firm, create wealth and improve society.
CSR is the process by which an organization thinks about and evolves its relationships with
stakeholders for the common good, and demonstrates its commitment in this regard by
adoption of appropriate business processes and strategies. Thus CSR is not charity or mere
donations.
Corporate Social Responsibility under Companies Act, 2013
The new Companies Act, 2013 makes it mandatory for every company having net worth of
rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a
net profit of rupees five crore or more during any financial year, to spend, in every financial
year at least two percent of the average net profits of the Company made during the three
immediately preceding financial years towards CSR activities. For this purpose, the net profit
and average net profit shall be calculated in accordance with the provisions of section 198
of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.
CSR Thrust Areas
The Company will focus its efforts through programs designed in the domains of education,
health and environment. The Company may also form its own Foundations / Trusts for
carrying out socio-economic projects as approved by the Board or alternatively make
contributions to Corporate Foundations / Trusts towards its corpus for projects approved by
the Board.
Our commitment to CSR will be manifested by investing resources in any of the following
areas:
(i) Eradicating hunger, poverty and malnutrition, promoting health care including preventing
healthcare and sanitation and making available safe drinking water.
2. Promoting education, including special education and employment enhancing vocation
skills especially among children, women, elderly and the differently abled and livelihood
enhancement projects.
3. 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.;
4. Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agro forestry, conservation of natural resources and maintaining quality of
soil, air and water;
5. 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.
6. Measures for the benefit of armed forces veterans, war widows and their dependents;
7. Training to promote rural sports, nationally recognized sports, paralympic sports and
Olympic sports.
8. 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;
9. Contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government.
10. Rural development projects.
CSR Surplus:-
The surplus arising out of the CSR projects or programs or activities shall not form part of
the business profit of the Company.
Implementation of CSR initiatives:-
The Board level Corporate Social Responsibility Committee (CSR Committee) of the
Company shall be responsible for monitoring the CSR Policy from time to time. The CSR
Committee shall approve and recommend to the Board, the projects or programs to be
undertaken, the modalities of execution and implementation schedule from time to time.
Further, to ensure that there is focus and maximum impact, the CSR Committee will
endeavor to work on selected projects over a longer period of time so as to ensure that the
outcomes of the projects can be measured.
Monitoring / Review Mechanism
The CSR Committee of the Board will undertake the CSR initiatives / projects on periodical
basis and suggest additional measures/areas and update Board of Directors.
In order to ensure transparency and communication with all stakeholders, the CSR Policy
will be uploaded on the Company website so that it is available in the public domain.
Executing Agency / Partners
CSR initiatives will be implemented by the Company either directly or through Govt.
agencies & local bodies or through implementing partners which include NGOs having an
established track record of at least 3 years in carrying on the specific activity.
The following minimum criteria will be ensured while selecting NGOs / voluntary
organizations for program execution
a) The NGO is a registered Society/ Public Charitable Trust/ Section 25 Not for Profit
Organizations/company established under section 8 of the Act etc.
b) The NGO has a permanent office/address in India
c) The NGO has a valid Income Tax Exemption Certificate / PAN
d) The NGO has submitted a detailed project proposal and budget which has been approved
by the CSR Council.
e) The NGO has submitted its Annual Report / Balance Sheet.
For CSR activities undertaken through other Executing Agency, the Company will specify the
projects or programs to be undertaken through these agencies, the modalities of utilization
of funds on such projects or programs.
