Corporate social
responsibility
How we identify, fund, implement and report on CSR projects, under the Companies Act, 2013.
In the present business environment a corporate entity cannot function in isolation. The touchstone of corporate functioning is how it balances its economic and financial goals, and the optimisation of shareholder value, against the maximisation of social benefit to the community and the accomplishment of environmental protection.
Being socially responsible means not only fulfilling legal obligations, but going beyond compliance and investing more into human capital, the environment and relations with stakeholders.
The European Commission, on CSRA continuing commitment by corporate houses to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, the local community and society at large.
World Business Council for Sustainable DevelopmentThe concept of CSR involves corporate behaviour, voluntarily adopted, that goes beyond legal obligations.
CSR statement
Reaching out to people who need assistance is part of the values of our Corporation. The objective we intend to achieve through our CSR program aims at developing communities and environmental sustainability, and creating a protected future for the generations to come. Our activities cover a wide gamut of services such as health, education, women's empowerment, environmental sustainability and other activities permitted under the Companies Act, 2013 — all aimed at creating a meaningful difference in the society where we live and operate.
In tune with the Companies Act, 2013, read with the regulatory requirements in the Companies (Corporate Social Responsibility Policy) Rules, 2014, the following points are observed while undertaking CSR activities:
- The company's CSR corpus is to include (i) at least 2% of the average net profit of the immediately preceding three financial years; (ii) any income arising from CSR activity; and (iii) surplus funds or unspent CSR funds.
- The CSR Policy covers the activities to be undertaken by the company as specified in Schedule VII of the Companies Act, 2013 and the expenditure incurred thereon, excluding activities undertaken in pursuance of the normal course of business.
- The CSR Committee of the Board shall institute a transparent monitoring mechanism for implementing the projects, programs and activities proposed to be undertaken.
- For implementation of approved CSR activities, the services of any Government or non-government organisation can be utilised. The company shall disclose the contents of the CSR Policy on its website and publish it in its Annual Report.
- Should the company fail to spend the mandatory amount earmarked, the Board shall specify the reason in its report under Section 134 of the Act.
- CSR projects and programs will focus on integrating business models with social and environmental priorities and processes, in order to create shared value.
- The company will ensure that any surplus arising out of CSR activity does not form part of its business profits.
Vision
- To identify and implement CSR projects aimed at uplifting the weaker sections of the social strata, and to support the needy and the elderly.
- To empower children, youth and women through skill building programs.
- To be involved in activities that build a sustainable environment for future generations.
CSR Committee
Every company having a net worth of five hundred crore rupees or more, or a turnover of one thousand crore rupees or more, or a net profit of five crore rupees or more during any financial year shall constitute a Corporate Social Responsibility Committee. Consistent with this, the CSR Committee of the Board currently has the following members.
| Member | Office | Role on committee |
|---|---|---|
| Shri Debaraj Panda | Managing Director | Chairman |
| Shri Saroj Kanta Patra | Director · RVNL | Member |
| Shri Saroj Kumar Sethi, IAS | Director · Government of Odisha | Member |
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Terms of reference
- Formulate and recommend to the Board a CSR Policy indicating the activities to be undertaken by the company as specified in Schedule VII of the Companies Act, 2013.
- Approve the amount of expenditure to be incurred on CSR activities.
- Monitor and review the CSR Policy from time to time and make necessary changes.
The company is to spend, in every financial year, at least 2% of the average net profits made during the three immediately preceding financial years in pursuance of its CSR policy. Where the company fails to spend such amount, the Board shall specify the reasons in its report.
CSR Cell for monitoring and implementation
It is recommended that the CSR Committee of the Board form a CSR Cell. The Cell is responsible for implementation, monitoring and administrative functions related to CSR activities. It is housed in the HR Department and headed by the Head — HR.
Geographical coverage
In the initial years the company will extend its CSR activities across all districts of Odisha where construction works are located. This applies to any project undertaken by the company.
Identification of CSR projects
Scope of projects
The Companies Act, 2013 specifies that at least 2% of the average net profit of the immediately preceding three financial years has to be allocated for CSR activities. The core focus of our CSR projects revolves around social development programs. Other critical areas include de-addiction, destruction of hemp cultivation through District Collectors, ensuring environmental sustainability, empowerment of women, promoting education and employment, training for rural sports, setting up public libraries, and contributions to relief funds for socio-economic development.
Identification of projects
The CSR Committee of the Board decides on a theme, which can vary from year to year, to give meaningful focus to CSR initiatives. Based on the theme, suitable projects are identified and approved by the Committee. Assistance for identifying projects may be taken through professional agencies appointed for the purpose. The final decision on approving or rejecting a proposal rests with the Committee. All projects are identified in a participatory manner, so as to understand the needs of the community. Approved projects receive funding out of the CSR corpus drawn up every year, and a CSR budget is allocated based on the projects identified and approved.
Implementation and modalities of execution
Implementation through employee involvement
The company perceives CSR programs as an avenue for employee engagement and development, and will devise schemes such as a voluntary day off to help employees contribute to CSR programs. For implementation of approved CSR projects, the services of a Government-recognised trust can be utilised.
Association with NGOs, trusts and similar bodies
Where the CSR Committee considers that the assistance of a registered society or trust is required, such assistance will be taken with its approval, provided the organisation has an established track record of at least three years in related areas. The projects to be undertaken through these entities, the modalities of fund utilisation, and the monitoring and reporting mechanism must be specified. The contribution to any such organisation shall not exceed 10% of the amount expended for CSR purposes in a financial year.
Monitoring of projects
A quarterly report is submitted to the CSR Committee of the Board through the CSR Cell, outlining the status of CSR projects initiated and completed, along with a breakdown of the funds utilised.
Focus sectors, projects and programs
The focus sectors and general projects where the company deploys CSR funds and effort follow the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. An illustrative list is set out below. Projects and programs are implemented with the participation of the company's employees.
Healthcare
- Eradicating hunger and poverty, malnutrition, promoting preventive health care and sanitation, and making available safe drinking water.
- Contributing to cancer research, and treatment of weaker sections suffering from serious ailments.
- Sponsoring trauma care units including ambulances, counselling centres and dialysis centres.
- Partnering with public health services to provide amenities in large Government hospitals to help the poor.
- Small housing projects for people living in slums under unhygienic conditions.
Education, vocational training & skill building
- Distribution of scholarships to eligible students from the weaker sections of the social strata.
- Promoting education, including special education and employment-enhancing vocational skills, especially among children, women, the elderly and the differently abled, and livelihood enhancement projects.
- Skill building workshops for farmers and people engaged in small scale industries.
- National level essay and quiz competitions on banking and finance at school or college level, to raise financial knowledge.
- Financial literacy programs at select educational institutions and self-help groups, through employee involvement.
- Sponsoring brilliant students to institutions of excellence for higher studies and research.
- Support to schools and educational institutions by providing books, other needed articles or infrastructure.
- Support to students from economically weaker sections with good merit, to continue their education.
- Educational projects aimed at the upliftment of mentally and physically challenged students.
Gender equality and empowering women
- Promoting gender equality and empowering women; setting up homes and hostels for women and orphans; setting up old age homes, day care centres and other facilities for senior citizens; and measures for reducing inequalities faced by socially and economically backward groups.
- Rehabilitation homes.
- Self-defence workshops for women.
- Self-employment training programs for women.
Environmental sustainability
- Ensuring environmental sustainability and ecological balance; protection of flora and fauna; animal welfare; agro forestry; conservation of natural resources; and maintaining the quality of air, water and soil.
- Clean drive campaigns through employee involvement.
- Subsidising the purchase of bio-treatment plants for poorer sections of society.
- Awareness programs on conservation of nature and natural resources, through employee involvement.
- Renewable energy and energy conservation campaigns, and afforestation programs.
- Disaster relief and support programs in case of national emergencies or natural calamities.
National heritage, art and culture
- Protection of national heritage, art and culture, including restoration of buildings and sites of historical importance and works of art; setting up public libraries; and promotion and development of traditional arts and handicrafts.
Armed forces veterans
- Measures for the benefit of armed forces veterans, war widows and their dependents.
Promotion of sports
- Training to promote rural sports, nationally recognised sports, Para-Olympic sports and Olympic sports.
Contributions to funds
- 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 funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.
Technology incubators
- Contributions or funds provided to technology incubators located within academic institutions approved by the Central Government.
Rural development projects
- Tribal welfare activities.
- Solar lamps in tribal areas.
Slum development
- No specific projects listed at present.
Contribution to Swachh Bharat
- Financial assistance to Government-aided girls' high schools for toilet facilities.
Up to 50% of the total amount to be spent in a year, or any such amount fixed by the CSR Committee of the Board.
Financials
For CSR activities the company earmarks at least 2% of the average net profit for the immediately preceding three financial years as the budget for the financial year, as mandated in the Companies Act, 2013. The CSR Committee of the Board can fix the maximum amount which may be expended for CSR purposes. Funds allocated each year move into a CSR corpus fund from which planned expenses are made. It is the endeavour of the company to fully utilise the budget allocated every year; any leftover amount moves into the corpus fund and is used for the following year's activities. Any surplus arising out of CSR activity does not form part of the business profit of the company. The corpus fund is accounted for separately and comprises three elements:
- At least 2% of the average net profit for the immediately preceding three financial years, allocated as the CSR budget every year;
- Any income arising from CSR activity; and
- Surplus funds or unspent CSR funds (leftover funds).
Disclosure in the Board of Directors report
The Board of Directors report, prepared under Section 134 of the Companies Act, 2013, shall disclose the company's CSR activities in the manner prescribed in clause (o) of sub-section (3) of Section 134 of the Act and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014.
Download CSR reports
Annual reporting on CSR spending and projects. All files are free to download.