[Pursuant to Section 135 of the Companies Act, 2013, read with Schedule VII of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014]
Kumar Enterprises(“Company”) has long been actively involved in social and community development. We are committed towards social causes and their development.
As required under the provisions of Companies Act, 2013 (“Act”), the Company is pleased to announce its Corporate Social Responsibility Policy (“CSR Policy” or “Policy”). Our goal shall be to focus on CSR activities strictly in compliance with applicable laws from time to time in force, including the Act and the rules thereunder. Towards this purpose, the Policy has been designed to achieve the Company’s social goals, while satisfying the required statutory obligations.
CSR FOCUS AREAS
In accordance with the primary CSR philosophy of the Company and the specified activities under the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, and any amendment(s) thereof, the CSR activities to be undertaken by the Company under this Policy shall be the following:
Key activities relating to:
The CSR initiatives of the company will be related primarily to providing better facilities to the weaker section of the society which will generate community goodwill and create impact and visibility.
Aim to shoulder responsibility for restoring/compensating for any ecological damage that is taking place as a result of operations.
Business should support a precautionary approach to environment, while undertaking initiatives to promote greater environmental responsibilities & encourage the development of environmentally friendly technologies.
To create value in innovative social investments in the community and may focus on the areas of “Preparedness and Capacity Building” in Disaster Management.
Suitable assistance to the victims of natural calamities such as floods, earthquakes epidemics etc., in any part of the country.
To promote technical /professional education by giving financial assistance / opening institutions through organizations/ infrastructural support.
To coordinate and associate with organisations undertaking similar activities and other Educational Institutions and Research Organisations.
To promote skill development for sustainable income generation and livelihood.
To identify & help under developed areas especially around the projects and also across the country having predominantly SC/ tribal/ other under privileged population.
Sustainable assistance to handicapped & mentally challenged children and under privileged people in the society.
Promote awareness programmes against social evils such as Alcholism AIDS etc., and to spread the awareness of legal rights and responsibilities.
Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;
contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
rural development projects; and
Slum area development.
-shall qualify as CSR activities of the Company. Every activity to be undertaken by the Company as mentioned above shall be approved by the CSR Committee (as defined herein). For the purpose of carrying out the CSR activities, preference shall be given to the local area and the areas around which the Company operates.
IMPLEMENTATION OF CSR ACTIVITIES
The Company may carry out the CSR activities in accordance with the terms of this Policy, either on its own, or through a registered trust or registered society or through a company registered under Section 8 of the Act, whether established by the Company, a subsidiary of the Company, an Associate Company2 of the Company or by a third party.
The Company may also collaborate with other companies to undertake projects, programs or CSR activities in such a manner that the CSR Committees of the respective companies are in a position to report separately on such projects or programs in accordance with the Policy and the applicable CSR regulations from time to time in force.
If the Company chooses to carry out the CSR Activities through a registered trust or registered society or a Section 8 company incorporated under the Act, which is established by a third party (“CSR Partner”), guidelines mentioned in Clause 4 below are required to be followed in choosing such CSR Partner.
The Company shall, in every financial year set asidea sum which shall not be less than 2% of the average net profits of the company made during the three immediately preceding financial years or as may be required by the Act from time to time; for the purpose of undertaking CSR activities. Any surplus arising out of CSR Activities implemented by the Company shall not form part of business profits.
Payments shall be made directly to the CSR beneficiaries from the aforementioned amount.
In the event Company is unable to spend the amount earmarked for the CSR Activities in a financial year, the CSR Committee shall submit a report in writing to the Managing Director of the Company specifying the reasons for not spending the amount, which in turn shall be reported by the Managing Director of the Company in their report to the shareholders of the Company for that particular financial year.
ROLE AND RESPONSIBILITIES OF THE CSR COMMITTEE
CSR Committee shall:
Formulate and recommend the CSR Policy or any amendments thereon to the Managing Director of the Company. Any amendments to be made to the CSR Policy shall be taken up by the Board only with the recommendation of CSR Committee;
Recommend the amount of expenditure to be incurred by the Company in each financial year in relation to the CSR Activities to the Managing Director of the Company. Such expenditure shall be calculated in accordance with the provisions of the Act after consultation with the finance department of the Company;
Identify and recommend CSR Activities to the Managing Director of the Company which are covered under this Policy by providing a project report. The project report shall elaborate on the sectors in which the CSR Activities shall be carried out, need, statistics, modalities of execution of the CSR Activities, budget outlay, implementation schedule, location where the CSR Activities are proposed to be implemented and impact of such CSR Activities on the target audience;
Allocate budget to each of the CSR Activities and the CSR Partners;
Undertake all necessary steps to implement the CSR Activities in accordance with the implementation schedule, as approved by the Board;
Monitor the CSR Activities in such manner as prescribed in this Policy;
Update the Managing Director from time to time on the progress of the CSR Activities along with a report on the amount allocated for such activity, amount utilised, amount unspent, if any, additional funds required, if any and expenditure incurred; and
Ensure that the CSR amount shall not be utilised on Activities that benefit only the employees and their families.
POLICY REVIEWAND FUTURE AMENDMENT
The CSR Committee shall review the CSR Policy from time to time and make suitable changes as may be required and submit the same for the approval of the Managing Director of the Company.