In present business environment, a corporate entity cannot function in isolation. The touch-stone of a corporate functioning is how it balances its economic and financial goals and optimization of shareholder value with maximization of social benefits to the community and accomplishing environmental protection. The European Commission views CSR as “being socially responsible not only fulfilling legal obligations but also going beyond compliances and investing more into human capital, the environment and relation with stake holder” The World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “Continuing Commitment by the Corporate Houses to behave ethically and contribute to economic development while improving the quality of life of work force, their families local community and society at large”. Concept of CSR involves corporate behavior 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 environment sustainability and to create a protected future for the generations to come. Our activities are to cover a wide gamut of services such as Health, Education, Women empowerment, Environment sustainability and other activities as permitted under The Companies Act, 2013, all aimed at creating a meaningful difference in the society where we live and operate in.
In tune with the Companies Act, 2013, read with regulatory requirements in the Companies (Corporate Social Responsibility Policy) Rules, 2014, the following points need to be observed while undertaking the CSR activities:
i. To identify and implement CSR projects aimed at uplifting the weaker sections of the social strata and to support the needy and elderly people.
ii. To empower children, youth and women through skill building programs.
iii. To be involved in activities that can build a sustainable environment for future generations.
Every company having a net worth of Rupees Five Hundred Crore or more, or a turnover of Rupees One Thousand Crore or more or a net profit of Rupees Five Crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more Directors, out of which at least one Director shall be an independent Director.
Consistent with the above, the CSR Committee of the Board currently has the following members:
The following shall be the terms of reference of the Committee:
The Company is to spend in every financial year at least 2% of the average net profits of the Company 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 in its report specify the reasons for not spending the amount.
It is recommended that the CSR Committee of the Board may form a CSR Cell. The CSR Cell would be responsible for implementation, monitoring and administrative functions related to CSR activities. The CSR Cell shall be housed in HR Department and will be headed by the Head - HR.
In the initial years, the company will extend its CSR activities across all the Districts of Odisha where the construction works are located. This will be applicable to any project undertaken by the company.
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 would revolve 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, employment, training for rural sports, setting up public libraries, contribution to relief funds for socio-economic development, etc.
The CSR Committee of the Board will decide on a theme which can vary from year to year to have a meaningful focus on CSR initiatives. Based on the theme, suitable projects shall be identified and approved by the CSR Committee of the Board. Any required assistance for identification of projects may be taken up through professional agencies appointed for the purpose from time to time. The final decision rests with the CSR Committee of the Board for approving or rejecting a particular proposal to be taken up for implementation. All projects will be identified in a participatory manner so as to understand the needs of the community. The approved projects will receive necessary funding out of the CSR Corpus drawn up every year as approved by the CSR Committee of the Board. A CSR Budget will be allocated to such activities based on the projects so identified and approved.
The company perceives CSR programs as an avenue for employee engagement and development and will devise schemes like voluntary day off which will help employees contribute to CSR programs. For implementation of approved CSR projects, the services of Government Recognized Trust can be utilized.
Wherever the CSR Committee feels that the assistance of a registered society or registered trust is required for implementing identified projects, such assistance will be taken for effective implementation, with its approval, provided such organizations have an established track record of at least three years in carrying on activities in related areas. The projects or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and monitoring and reporting mechanism should be specified. The contribution to any such organization/Trust shall not exceed 10% of the amount expended for CSR purposes in a financial year.
A quarterly report shall be submitted to the CSR Committee of the Board through the CSR Cell outlining the status of the CSR projects initiated, completed as well as breakup of the funds utilized for the purpose.
The focus sectors and the general projects where the company will deploy CSR funds and efforts will be as per the Companies Act 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, an illustrative list of which is given in the table below. The Projects and Programs will be implemented by the total participation of the employees of the company.
Sectors | Projects and Programs | % of CSR Expenditure |
---|---|---|
i) Healthcare |
|
|
ii) Promotion of Education, Employment enhancing vocational training , Social development & Skill Building |
|
|
iii) Gender Equality and Empowering Women |
|
|
iv) Environmental sustainability |
|
|
v) Protection of National heritage, art and culture |
|
|
vi) Contributions to armed forces veterans |
|
|
vii) Promotion of Sports |
|
|
viii) Contributions to Funds |
|
|
ix) Contributions or Funds provided |
|
|
x) Rural Development Projects |
|
|
xi) Slum Development |
|
|
xii) Contribution to Swachh Bharat |
|
* Up to 50% of the total amount to be spent in a year or any such amount to be fixed by the CSR Committee of the Board
For CSR activities, the company will earmark 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 can be expended for CSR purposes. The funds so allocated every year shall move into a CSR corpus fund from where planned expenses will be made. It shall be the endeavor of the company to fully utilize the budget allocated every year for CSR programs as per policy; however, any leftover amount for the year will move into a CSR corpus fund which will be used for the next year’s CSR activities. The surplus arising out of CSR activity will not be part of the business profit of the company. The CSR corpus fund shall be accounted separately and the fund shall essentially comprise of three elements as under:
The board of directors report of the company which will be prepared under section 134 of the Companies Act, 2013 shall disclose the CSR activities in the following manner as 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.