CORPORATE SOCIAL RESPONSIBILITY POLICY
Corporate Social Responsibility (CSR) has evolved during last few decades from simple philanthropic activities to integrating the interest of the business with that of the communities in which it operates. By exhibiting socially, environmentally and ethically responsible behaviour in governance of its operations, the business can generate value and long-term sustainability for itself while making positive contribution to the betterment of the society. This also makes 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.
LEGAL, REGULATORY, PUBLIC PERCEPTION
The Companies Act, 2013:
The Companies Act, 2013 has made Corporate Social Responsibility (CSR) mandatory for certain companies. Section 135 of the Act provides the broad legal framework and requires an eligible Company to ensure spending of at least 2% of average profits of the preceding three years. The eligible companies are required to constitute a Corporate Social Responsibility Committee and adopt a policy for operation.
Ace Designers as a Good Corporate Practice has already initiated CSR measures and is carrying out certain CSR activities prior to introduction of Section 135 of the act. However, introduction of Section 135 obligated the Company to formulise the CSR activities in-line with statutory provisions. Hence, the Company has adopted this policy as CSR Policy.
2. OBJECTIVES OF THE POLICY
Main objectives of this policy are to -
a) Demonstrate commitment to the common good through responsible business practices and good governance.
b) Set high standards of quality in the delivery of services in the social sector by creating robust processes and replicable models.
c) Engender a sense of empathy and equity among employees of the Company to motivate them to give back to the society.
i. "Act" means the Companies Act, 2013
ii. "Corporate Social Responsibility (CSR)" means various programmes or activities undertaken by the Company with an objective to reciprocate the society around us. Provided that the projects or programmes shall meet the ultimate the intent of the activities specified in Schedule VII to the Act read with allied rules amended from time to time or
iii. "CSR Committee" means the Corporate Social Responsibility Committee constituted by the Board from time to time
iv. "CSR Policy" means policy adopted by the Company pursuant to section 135 of the Act amended from time to time
v. "Net profit" means net profit as defined under section 135 of the Act amended from time to time.-
4. CSR ACTIVITIES means
All projects or programmes which are specified in schedule VII to the Companies Act, 2013 amended from time to time including:
i. Eradicating hunger, poverty and malnutrition, promoting health care including preventinve 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.
ii. promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects.
iii. promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.
iv. ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga.
v. protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts;
vi. measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows;
vii. training to promote rural sports, nationally recognised sports, paralympic sports and olympic sports
viii. contribution to the prime minister's national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women;
ix. Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and
x. rural development projects
*xi. contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Biotechnology (DBT), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
*xii. slum area development.
Explanation.- For the purposes of this item, the term `slum area' shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force
*xiii. disaster management, including relief, rehabilitation and reconstruction activities.
xiv. Such other matters as may be prescribed under Schedule VII to the Act as amended from time to time;
xv. Other allied activities or programmes achieving the above activities as may be approved by the CSR Committee..
* CSR activities included in the First Amendment to Ace CSR policy on 19th September 2020
5. COMMENCEMENT OF CSR PROJECTS
During annual review meeting, Head HR will present list of CSR activities to be undertaken during the financial year along with time frame and budget for each project. CSR projects or programmes shall clearly define the need, its outcome and beneficiaries of such CSR project.
Committees’ prior approval is required prior to commencement of any CSR activity. However the Committee can ratify any project undertaken by the Company without its prior approval.
6. EXECUTION OF CSR PROGRAMMES
The Company can undertake CSR activities either directly or through one or more registered trusts or societies with an established track record of three years in undertaking similar programs or projects. CSR activities can also be undertaken on behalf of Ace Micromatic Group Companies. If the activities are undertaken on behalf of the group, then the ratio of the expenditure sharing and other similar issues need to be agreed prior to commencement of activities on behalf of the Group Companies. While selecting the CSR activities, preference to be given initially for local areas where the Company operates
Implementation progress of all CSR projects need to be monitored by head HR and report the progress of all projects to the committee during annual review meeting.
7. CSR BUDGET
Based on the Company’s profitability, statutory requirements and need of the CSR activities, CSR committee shall approve annual budget for CSR activities allocating budget for each activity within the overall budget limit.
Total budget in any financial year shall not be less than 2% of the net profit calculated pursuant to section 135 of the act.
At the end of each financial year, the committee reviews the total amount spent during the year. If the Company has spent less than the budgeted amount, then the Committee shall review and decide whether the unspent amount during the year is to be carried forwarded to next year or not as per the provisions of Act.
8. RECORD KEEPING AND BOOKS OF ACCOUNTS
The Company shall keep proper records for the amount spent on CSR activities and report the expenditure incurred on these activities in the annual report.
9. MONITORING MECHANISM
a) HR head reviews the progress of all CSR projects periodically by visiting the field/site(s) either by himself or through nominated person for this purpose.
b) He will report the projects status to the Committee periodically and takes the committees’ opinion as and when required for further progress.
c) At the end of each financial year, he shall report latest status of all projects to the Committee for review.
10. DISPLAY OF CSR POLICY
The Boards’ report prepared annually shall disclose the contents of this CSR policy in the specified format and the same shall also be displayed on the Company website.
In case of any doubt with regard to any provision shown in the policy and also in respect of matters not covered herein, a reference will be made to CSR Committee and the interpretation and decision of the Committee shall be final.
The CSR Policy is subject to revision/amendment in accordance with the applicable provisions of the Companies act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014 and Schedule VII as amended from time to time.