Corporate Social Responsibility (CSR) is an initiative with the basic aim to include responsibility for the Company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders, and society at large.
In the modern world, a good and responsible corporate citizen recognizes that apart from the financial responsibilities/obligations it has important responsibilities towards society, community, and the environment. A responsible corporate citizen strives to achieve harmony between economic, environmental, and social growth for creating a sustainable and equitable society.
The Corporate Social Responsibility Policy (“CSR Policy”) of Jhajharia Nirman Limited (“the Company”) has been prepared in accordance with the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 as amended from time to time.
The CSR Policy has been approved by the Board of Directors of the Company at its meeting held on [Date].
The Company subscribes to the values of concern and care. The CSR policy is intended to make a material, visible, and lasting difference to the lives of the disadvantaged/underprivileged sections of society, which shall contribute to the well-being of the community, environment, and society at large.
The objective of the CSR Policy is to guide the efforts to:
Terms or reference to any words or expressions used herein shall have the same meanings respectively as defined/assigned under the Companies Act, 2013 or any Rules framed thereunder and as amended from time to time.
All projects/beneficiaries shall be identified, reviewed, approved, and recommended by the CSR Committee of the Board and then approved by the Board of Directors, as appropriate. The CSR Committee shall monitor and assess the progress of these activities on a regular basis.
In compliance with the Section 135 of the Act, the Company shall constitute a Corporate Social Responsibility Committee (“CSR Committee of the Board”) which shall be responsible for all CSR matters of the Company.
The CSR activities shall be undertaken in compliance with the provisions of Section 135 of the Companies Act, 2013, and the activities broadly laid under Schedule VII. The Company shall implement CSR activities in accordance with its expertise and focus areas.
The Company shall enlist only such entities/beneficiaries for receipt of CSR funds who have mandatorily registered with the Ministry of Corporate Affairs and are in conformity with the guidelines set by the Government under CSR activities.
In every financial year, the CSR Committee of the Board and the Board of Directors shall ensure that the Company spends the minimum CSR Expenditure, which is at least 2% of the average net profit of the Company made during the three immediate preceding financial years, as per Section 135 of the Companies Act, 2013.
If in any financial year, the Company spends an amount in excess of the CSR Expenditure, such excess amount may be set off against the requirement to spend in the succeeding three (3) years.
The Company shall ensure that the expenses incurred for general management and administration (“administrative overheads”) do not exceed five (5) percent of total CSR Expenditure for that financial year.
The amount to be allocated and utilized towards the CSR activities would be in line with statutory requirements. The CSR expenditure will be disbursed and utilized strictly for the projects and initiatives recommended by the CSR Committee and approved by the Board of Directors.
If the Company fails to spend the determined CSR Expenditure (other than any ongoing project), the Board shall pass a resolution to transfer such unspent amount to a Fund specified in Schedule VII of the Act, within a period of six months of the expiry of the financial year. Further, in case an amount remains unspent on any ongoing project undertaken by the Company, the same shall be transferred to a special account named ‘Unspent Corporate Social Responsibility Account’ opened within a period of thirty days from the end of the financial year, and such amount shall be spent by the Company in pursuance of its obligation towards the Corporate Social Responsibility Initiative’s within a period of three (3) financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty (30) days from the date of completion of the third financial year.
The Company has a robust monitoring and assessment mechanism for implementation of CSR projects/programs/activities undertaken by the Company. The verification/monitoring of activities/projects for which CSR contributions has been made, including whether the CSR contribution towards sponsoring medical treatment actually benefitted the intended economically weaker sections of recipients and a detailed report on the actual utilization of the disbursed funds shall be submitted to the Board for its review and noting. A time frame, if deemed fit by the CSR Committee of the Board and Board, shall be laid down for the concerned CSR projects/ activities for their timely completion.
The Company on having an average CSR Expenditure of Ten Crore rupees (Rs. 10 Crore) or more in pursuance to section 135 of the Act, in the three (3) immediately preceding financial years, shall undertake impact assessment, through an independent agency, of its CSR projects having outlays of One Crore rupees or more, and which have been completed not less than one year before undertaking the impact study. If the Company undertakes impact assessment in any financial year, the expenses incurred thereunder shall not exceed two (2) percent of the total CSR Expenditure for that financial year or Fifty Lakh rupees (Rs. 50 Lakh), whichever is higher.
The Company shall encourage the participation/involvement of employees in the CSR activities of the Company. The employees shall volunteer along with the CSR entity/beneficiary to the CSR Projects undertaken by the Company with a view to foster community participation and development. The Company, as part of its HR initiatives, will recognize & felicitate those employees who volunteered for participating in the CSR activities and also encourage them to share their experience within the organization.
CSR Committee of the Board shall periodically review the progress report on the various CSR initiatives taken up by the Company and the same shall be reported in the Company’s Annual Report under Directors’ Report, in the format as prescribed under the Companies Act, 2013. The impact assessment reports, if applicable, shall be placed before the Board and shall be annexed to the Company’s Annual Report. The Company shall disclose the composition of the CSR Committee of the Board and CSR Policy as approved by the Board for public access on the website of the Company.
In the event of any regulatory modification(s)/amendment(s)/change(s) to any provisions contained in the Companies Act, 2013 or any Rules framed thereunder or to the applicable directions of RBI etc., the provisions contained in the Regulatory Acts (as amended) will prevail to ensure consistency with the prevalent regulatory requirements. The Board on its own and/ or due to any regulatory requirement/amendment can amend this Policy, as and when deemed fit. The Board reserves the right to alter, modify, add, delete, or amend any of the provisions of the Policy. This Corporate Social Responsibility Policy will be reviewed annually, or in the interim, should there be a change/amendment in regulations.