CSR Compliance: Draft Documents and Reporting

To be executed on the letterhead of company

Date:

To,

The Board of Directors

Name of the company

Registered office address

It is certified that:

The Company has contributed a total amount of towards Corporate Social Responsibility activities for the financial year []. The funds have been contributed in the manner mentioned below:

In this regard, I have also verified the utilisation certificate, and I have satisfied myself that the condition on which the funds were sanctioned has been duly fulfilled and that I have exercised thorough checks to ensure that the funds were actually utilised.

For and on behalf of

Name of the Company

__________

Chief Financial Officer/ Authorised Signatory

Policy on Corporate Social Responsibility

 COVER PAGE: NAME OF THE COMPANY ALONG WITH CORPORATE IDENTIFICATION NUMBER AND REGISTERED OFFICE ADDRESS

 Vision

To build a better and sustainable community by contributing to the society and economic development of the Society over the long term.

Mission

We seek to enrich the quality of life for the community in which we operate. We commit to operating in an economically, socially and environmentally responsible manner.

Introduction:

Corporate Social Responsibility (herein after referred to as CSR) is strongly connected with the principles of Sustainability; an organization should make decisions based not only on financial factors, but also on the social and environmental consequences. The name of Company who believes in enabling a standard takes initiative to contribute to harmonious and sustainable development of society and the earth through all business activities that is carried out. The Company will ensure to comply with all the provisions of the Companies Act, 2013 with regard to Corporate Social Responsibility and with Companies (Corporate Social Responsibly) Rules, 2014.

Objectives of the Policy:

• To behave ethically and contribute to sustainable development
• To contribute to Society through the Company’s Business
• To comply with the provisions of Companies Act, 2013
• To act with utmost respect for human rights and pursue a high sense of corporate ethics
• To build a bond and sense of harmony with the environment
• To play an effective role in addressing issues such as access to education, health care and livelihood opportunities.

Scope and Applicability:

This Policy is formulated based on the provisions of Companies Act, 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and notification made their under. The Policy mandatorily to be followed by such Directors who are appointed on the Board of the Company from time to time.  The Board may modify this policy if required with the approval of Board of Directors of Company. The Board shall be abided with this Policy.

 Activities to be undertaken:

The Company is committed towards environmental and social safety and protection. In compliance of the Schedule VII of the Companies Act, 2013 and the Company’s Policy any of the below mentioned activities shall be carried out by the Company to contribute towards CSR:

• Eradicating hunger poverty and malnutrition, promoting preventing health care and sanitation and making available safe drinking water. Promoting social business projects like giving medical and legal aid, treatment to road accident victims and provisions for aid and appliances to differently able persons
• Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly and 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 centers 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 and agro forestry, conservation of natural resources and maintaining quality soil, air and water
• Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works for art; setting up public libraries, promotion and development of traditional arts and handicrafts
• Measure for benefit of armed forces veterans, war widows and their dependants
• Training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports
• Contribution to Prime Minister national Relief Fund or any other fund setup by the central government for socio-economic development and relief and welfare of the scheduled tribes, other backward classes, minorities and women
• Contributions or funds provided to technology incubators located within academic institution which are approved by central government
• Rural development projects.

[Note: The Company can specifically mention the activities and projects of schedule VII as per the proposed expenditure]

 CSR Committee:

As per Section 135 of CA 2013, read with relevant provisions, the forming a Corporate Social Responsibility Committee, shall not be applicable to the Company.

CSR Expenditure:

• The amount allocated for the purpose of CSR projects/ programs decided by the Board, shall be spent only for the purpose of activities mentioned under this Policy.
• If the Company arrives at any surplus from the activities conducted under this project, such amount shall not be considered as business profit.
• Such surplus should be utilized for the purpose of CSR activities under this Policy only.

Allocation for CSR:

• The Company shall contribute for CSR activities in every financial year (after the adoption of this Policy) at least two percent of its average net profit earned during three immediately preceding financial years.
• Based on the profits earned the Board of Directors may allocate for CSR activities more than two percent of the net profit earned during three immediately preceding financial year but shall not exceed 5 percent.
• In case, if the Company does not fall under Section 135 of the Companies Act, 2013 in any financial year, the Company may not allocate funds for CSR purpose in such financial year.

Computation of Net Profit:

The net profit for the purpose of CSR spending shall be computed according to Section 198 of the Companies Act, 2013.

Implementation Process:

• The projects to be undertaken by the Company under this Policy shall be identified in manner decided by CSR Committee Members and Board
• The projects should be within the purview of the activities mentioned in this Policy.
• Time frame should be given for each projects/ programs undertaken.
• Implementing agency may be appointed at later stage, if required

CSR Reporting:

• The Company must prepare an annual report containing all the particulars of activities conducted during every financial year.
• The Board must in its Report to the Shareholders disclose by way of a detailed report regarding ongoing status and impact of the CSR activities proposed and undertaken by the Company along with the accounts and accounting treatment thereof.

Information Dissemination:

The Board of Directors of the Company shall disclose the content of this Policy in its annual Report.

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To be executed on letterhead of company

THE CORPORATE SOCIAL RESPONSIBILITY (CSR)

ANNUAL ACTION PLAN FOR FY 2025-2026 

INTRODUCTION:

We, recognize that integrating social, environmental, and ethical responsibilities into the governance of businesses ensures the long-term success, competitiveness, and sustainability.

Further, Corporate Social Responsibility (“CSR”) makes a business sense as companies with effective CSR, have image of socially responsible companies, achieve sustainable growth in their operations in the long run and their products and services are preferred by the customers.

APPROVAL:

This CSR Annual Action Plan for FY for the CSR Budgeted amount of [Insert amount] is formulated in pursuance of its CSR policy and recommended to the Board by the CSR Committee Members of the Company. Provided that the Board may alter such the CSR Annual Action Plan for FY at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect.

LIST OF CSR PROJECTS OR PROGRAMMES THAT ARE APPROVED TO BE UNDERTAKEN IN AREAS OR SUBJECTS SPECIFIED IN SCHEDULE VII OF THE ACT:

The above list of activities shall also include, exclude, modify such activities may be notified by the Ministry of Corporate Affairs from time to time.

Any activity/projects which the proposed Trust wishes to carry out in the FY beyond the above list of focus areas as approved in this Annual Action Plan, the Trust shall submit a proposal to the Company which shall be placed for the approval of the CSR Committee and the Board respectively.

The Company may also undertake such other activities in the FY as it may consider appropriate with the approval of the CSR Committee Members and the Board.

Provided that every implementing agency, who intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar.

DETAILS OF NEED AND IMPACT ASSESSMENT, IF ANY, FOR THE PROJECTS UNDERTAKEN BY THE COMPANY:

The Company has not an average CSR obligation of ten crore rupees or more in pursuance of subsection (5) of section 135 of the Act, in the three immediately preceding financial years or CSR projects having outlays of one crore rupees or more, therefore the same is not applicable.

However, if any project with an outlay of one crore rupees or more is initiated by the Company, the need and impact assessment shall be duly undertaken at that point of time.

[Note: This clause is subject to the non-applicability of Impact Assessment on company]

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