Corporate Social Responsibility

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Corporate Social Responsibility
Applicability

Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee (CSR) of the Board consisting of three or more directors.

CSR Committee

CSR Committee shall institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company. The Committee shall formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the Company as specified in Schedule VII. The Committee shall also recommend the amount of expenditure to be incurred on the activities and monitor the CSR Policy from time to time. The Board’s Report shall disclose the composition of the Corporate Social Responsibility Committee.

Accordingly, the Board of APTRANSCO, in its 103rd Meeting, constituted CSR Committee with a view to formulate and recommend to the Board a CSR Policy; the amount of expenditure to be incurred; and to monitor the CSR Policy from time to time.

Corporate Social Responsibility (CSR)

CSR means and includes but is not limited to:

(i) Projects or programs relating to activities specified in Schedule VII of the Companies Act 2013; or

(ii) Projects or programs relating to activities undertaken by the board of directors of a company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the company subject to the condition that such policy will cover subjects enumerated in Schedule VII of the Act

Schedule VII

The Gazette of India Dt. 28-02-2014, notified the following activities which can be undertaken by a Company under its CSR Policy:

(i)Eradicating hunger, poverty and malnutrition, promoting preventive health care and 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;

(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 arts and handicrafts;

(vi)Measures for the benefit of armed forces veterans, war widows and their dependents;  training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;

(viii)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;

(ix)Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;

(x)Rural development projects; and

(xi)Slum area development

CSR Policy

CSR Policy relates to the activities to be undertaken by the company as specified in Schedule VII of the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.

CSR Expenditure

The Board shall ensure that the Company spends, in every financial year, at least two percent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its CSR Policy. Average net profit shall be calculated in accordance with the provisions of Section 198 of the Companies Act 2013. Provided that the Company shall give preference to the local area around it where it operates, for spending the amount earmarked for CSR Activities. Provided further that if the Company fails to spend such amount, the Board shall, in its Report specify the reasons for not spending the amount.

CSR Reporting

The Board’s Report pertaining to a financial year commencing on or after 1st April 2014 shall include an Annual Report on CSR containing particulars specified in the Annexure to the CSR Rules.

Display of CSR activities in the website

The Company shall approve the CSR Policy, based on the recommendations of the CSR Committee, and disclose the contents on the Company’s website, as per the particulars specified in the Annexure to the CSR Rules