CORPORATE SOCIAL RESPONSIBILITY POLICY
At the outset, CSR activities at SFPL is already in existence for the benefit of the employees and their immediate family members in the areas of extending loan to employees, participation at festivals and best worker award etc.
It is recognized that integrating social, environmental and ethical responsibilities into the governance of businesses ensures the long term success, competitiveness and sustainability.
Further, 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.
The main objective of CSR policy is to make CSR a key business process for sustainable development of the society. SFPL will act as a good corporate citizen and aims at supplementing the role of Government in enhancing the welfare measures of the society within the framework of its policy Measures.
In the aforesaid backdrop, policy on CSR of SFPL is broadly framed taking into account the following measures:
The CSR activities shall be undertaken by SFPL, as stated in this Policy, as projects or programs or activities (either new or ongoing), excluding activities undertaken in pursuance of its normal course of business.
The CSR activities which are exclusively for the benefit of SFPL’s employees or their family members shall not be considered as CSR activity.
SFPL shall give preference to the local area or areas around it where it operates, for spending the amount earmarked for CSR activities.
The Board of SFPL may decide to undertake its CSR activities as recommended by the CSR Committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company pursuant to Section 135 of the Companies Act, 2013 and rules made there-under.
3. AREAS OF CSR ACTIVITIES
The following is the list of CSR projects or programs which SFPL plans to undertake pursuant to Schedule VII of the Companies Act, 2013:
- 1. Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water;
- 2. Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
- 3. 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;
- 4. 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;
- 5. 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 arts and handicrafts:
- 6. Measures for the benefit of armed forces veterans, war widows and their dependents;
- 7. Training to promote rural sports, nationally recognised sports, Paralympic sports and Olympic sports;
- 8. Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
- 9. Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government
- 10. Rural development projects;
- 11. Any other measures with the approval of Board of Directors on the recommendation of CSR Committee subject to the provisions of Section 135 of Companies Act, 2013 and rules made there-under.
4. PROJECT IDENTIFICATION
- a). SFPL may identify the aforesaid activities through market studies conducted or based on proposals or requests received from voluntary organizations, Government bodies etc.
- b) Each CSR activity identified will be treated as a project and each project shall have a time frame defined for execution and completion.
- c) Each identified project along with a budget will be presented to the CSR committee of the Board of Directors for their approval.
d) In certain cases where requirements arise out of unexpected occurrences like natural calamities, the Managing Director or the Vice Chairman of the Company is authorised to approve the proposals. The same may be ratified in the ensuing CSR committee meeting
5. IMPLEMENTATION OF CSR ACTIVITIES
The CSR activities shall be undertaken by the Company as per its CSR Policy as projects or programmes or activities, excluding activities undertaken in pursuance of its normal course of business.
The CSR activities may be undertaken by the Company through ‘Agency’ approved by CSR Committee conforming to the requirements of Regulation 4(2) of the Corporate Social Responsibility Policy Rules 2014, or through ‘collaboration’ conforming to the requirements of Regulation 4(3) of the Corporate Social Responsibility Policy Rules 2014.
To ensure effective implementation of the CSR programmes undertaken, a monitoring mechanism is put in place.
- Progress of the CSR activities under implementation is reported to the CSR committee on a quarterly basis
- The Company shall also try to obtain feedback from the beneficiaries of each program and present it to the CSR committee
- Appropriate documentation of the CSR Policy, annual CSR activities, CSR budget, details of the executing partners, and the expenditure entailed will be reviewed on a regular basis.
- Annual audit of all the CSR activities undertaken by the company will be done by the appointed internal auditors and further presented to the CSR committee.
The CSR committee shall initiate steps to check whether the activities are progressing as per the guidelines of the CSR policy and statutory requirements and shall initiate corrective actions if there are any deviations.
The CSR activities will be published in the Annual Reports and Accounts of SFPL under the heading Social Overheads (CSR).
7. CSR COMMITTEE
a. Constitution of CSR Committee
A Corporate Social Responsibility Committee (“the CSR Committee”) has been constituted by the Board of Directors to oversee the CSR agenda of the Company. The committee has been formed as per the requirements of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014.
Board of Directors shall be empowered to take decision for making or effecting changes in the constitution of the CSR Committee.
The composition of CSR Committee shall be disclosed in the Board of Directors’ Report.
b. Responsibilities of the CSR Committee
- a) To formulate & recommend to the Board of Directors, a CSR Policy indicating the activities to be undertaken as specified in Schedule VII of the Companies Act, 2013 and modify / amend the same as required;
- b) To review and approve annual budgets with respect to CSR programs;
- c) To develop and institutionalize a CSR reporting mechanism in light with Section 135, Rule 8 of the Companies Act 2013;
- d) To ensure that HMSI corporate website displays the approved CSR policy of the company
- e) To monitor the CSR Policy, Projects and Programs from time to time.
c. Meetings of CSR Committee
The CSR Committee shall meet at least once in six months. The meeting shall be held either at the registered office of the company or any other place, as may be decided by the members.
Physical presence of a minimum of two members of the committee shall constitute the quorum.
d. Notice of Meeting
At least three days advance notice of every meeting, specifying the day, place and timing of Meeting and the general nature of the business to be transacted there at shall be given to the members. In urgency, a meeting may be convened by shorter notice.
For achieving the CSR objectives through the implementation of meaningful & sustainable CSR activities, SFPL will allocate an amount which is not less than 2 % of the average net profits of the immediately preceding 3 financial years.
9. CSR PROJECTS APPROVED
At present there were no approved projects. The company is in process of identifying suitable projects.
10. TREATMENT OF UNSPENT AMOUNT
- Not relating to on-going Project : In case of failure to spend the same, will require carry forward of the same to a Fund specified in Schedule VII, within 6 months of close of financial year, in addition to disclosure of reasons for not spending in Board Report. So amount remaining unspent (other than ongoing project) for the financial year 2020-¬‐21 shall be transferred to Schedule VII fund latest by September 30, 2021.
- Relating to Ongoing Project: To be transferred within a period of 30 days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account (UCSRA). So amount remaining unspent (ongoing project) for the financial year 2020‐21 shall be transferred to UCSRA latest by April 30, 2021.
- Extended time for spending unspent amount relating to ongoing Project ‐ Such amount shall be spent within a period of 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 days from the date of completion of the third financial year. So amount remaining unspent transferred for FY 2020‐21 to UCSRA, has to be utilized for the project up to FY 2023‐24, otherwise shall be transferred to a fund specified in Schedule VII. Hence every project period should not exceed 03 years.
11. AMENDMENTS TO THE CSR POLICY
CSR Policy may be updated to align it with the changing requirement or changes in the legal and regulatory framework. Any revision in the Policy shall be approved by the Board of Directors
Any or all provisions of the CSR Policy would be subject to revision / amendment in accordance with the guidelines on the subject as may be issued from Government, from time to time.
Any surplus arising out of CSR project or program shall not form part of business profit of the Company. The Company reserves the right to modify, cancel, add, or amend any of these rules.