CSR - Dalvkot Utility Enterprises Private Limited

Corporate Social Responsibility (CSR) Policy

1. The Objectives of the Policy

This Policy shall be read in line with Section 135 of the Companies Act 2013, Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other rules, regulations, circulars, and notifications (collectively referred hereinafter as ‘Regulations’) as may be applicable and as amended from time to time and will, inter-alia, provide for the following:

Establishing a guideline for compliance with the provisions of Regulations to dedicate a percentage of Company’s profits for social projects.
Ensuring the implementation of CSR initiatives in letter and spirit through appropriate procedures and reporting.
Creating opportunities for employees to participate in socially responsible initiatives.

2. Definitions.

In this Policy unless the context otherwise requires:

“Act” means the Companies Act, 2013;
“Annexure” means the Annexure appended to these rules;
“Corporate Social Responsibility (CSR)” means and includes but is not limited to
1. Projects or programs relating to activities specified in Schedule VII to the Act or
2. 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.
“CSR Committee” means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act
“CSR Policy” relates to the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.
“Net profit” means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely: –

1. Any profit arising from any overseas branch or branches of the company’ whether operated as a separate company or otherwise;
2. Any dividend received from other companies in India, which are covered under and complying with the provisions of section 135 of the Act: Provided that net profit in respect of a financial year for which the relevant financial (2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act.

3. CSR Activities

TThe Policy recognizes that corporate social responsibility is not merely compliance; it is a commitment to support initiatives that measurably improve the lives of underprivileged by one or more of the following focus areas as notified under Section 135 of the Companies Act 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014:

Eradicating hunger, poverty & malnutrition, promoting preventive health care & sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation & making available safe drinking water;
Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently unable & livelihood enhancement projects;
Promoting gender equality, empowering women, setting up homes & hostels for women & orphans, setting up old age homes, day care centers & such other facilities for senior citizens & measures for reducing inequalities faced by socially & economically backward groups;
Reducing child mortality and improving maternal health by providing good hospital facilities and low-cost medicines;
Providing with hospital and dispensary facilities with more focus on clean and good sanitation so as to combat human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases;
Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga;
Employment enhancing vocational skills
Protection of national heritage, art & culture including restoration of buildings & sites of historical importance & works of art; setting up public libraries; promotion & development of traditional arts & handicrafts;
Measures for the benefit of armed forces veterans, war widows & their dependents;
Training to promote rural sports, nationally recognized sports, sports & Olympic sports;
Contribution to the Prime Minister‘s National Relief Fund or any other fund set up by the Central Government for socio-economic development & relief & welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities & women;
Contributions or funds provided to technology incubators located within academic institutions, which are approved by the Central Government;
Rural development projects, etc
Slum area development.

The Above list is illustrative not exhaustive. All activities under the CSR activities should be environment friendly and socially acceptable to the local people and Society. Contribution towards C.M relief fund shall be a part of CSR activities above 2% of Net profit other than the activities mentioned above.

4. SCOPE

Education.
1. Support to Technical /Vocational Institutions for their self -development.
2. Academic education by way of financial assistance to Primary, Middle and Higher Secondary Schools.
3. Adult literacy amongst those belonging to BPL.
4. Awareness Programmes on girl education.
5. Counseling of parents
6. Special attention on education, training and rehabilitation of mentally & physically challenged children/persons.
7. Spreading legal awareness amongst people and disadvantageous sections of the society about their rights & remedies available.
8. Promotion of Professional Education by setting up educational Institutions offering courses in Engineering, Nursing, Management, Medicine and in Technical subjects etc.
9. Provide fees for a period of one year or more to the poor and meritorious, preferably girl students of the school in the operational area of the Company to enable them to get uninterrupted education.

Water Supply including Drinking Water:
1. Installation/Repair of Hand Pumps/Tube Wells.
2. Digging/Renovation of Wells.
3. Gainful utilization of wastewater from Under -ground Mines for Cultivation or any other purpose.
4. Development/construction of Water Tank/Ponds
5. Rainwater-harvesting scheme.
6. Formation of a Task Force of Volunteers to educate people regarding
7. Proper use of drinking water.
8. Empowerment to the villagers for maintenance of the above facilities for availability of water.

Health Care organizing,
1. Health awareness Camps on AIDS, TB and Leprosy
2. Social evils like alcohol, smoking, drug abuse etc.
3. Child and Mother care
4. Diet and Nutrition.
5. Blood donation camps.
6. Diabetics detection & Hypertension Camps
7. Family Welfare.
8. Senior Citizen Health Care Wellness Clinics.
9. Fully equipped Mobile Medical Vans.
10. Tele medicine
11. To supplement the different programme of Local/State Authorities
12. Along with De addiction centers

Environment
1. Organizing sensitizing programmes on Environment Management and
2. Pollution Control.
3. Green belt Development
4. A forestation, Social Forestry, Check Dams, Park.
5. Restoration of mined out lands.
6. Development of jobs related to agro product i.e., Dairy/Poultry/farming and others.
7. Plantation of saplings producing fruit.
8. Animal care.

Social Empowerment.
1. Self /Gainful Employment Opportunities – Training of Rural Youth for Self-Employment (TRYSEM) on Welding, Fabrication, and other electronic appliances.
2. To provide assistance to villagers having small patch of land to develop mushroom farming, medicinal plants, farming & other cash crops to make them economically dependent on their available land resources.
3. Training may be provided by agricultural experts for above farming.
4. Organizing training programmes for women on tailoring Embroidery designs,
5. Home Foods/Fast Foods, Pickles, Painting and Interior Decoration and other
6. Vocational Courses.
7. Care for senior citizens.
8. Adoption/construction of Hostels (especially those for SC/ST &girls)
9. Village Electricity/Solar Light
10. To develop infrastructural facilities for providing electricity through Solar Lights or alternative renewal energy to the nearby villages. Recurring expenditure should be borne by the beneficiaries.
11. Pawan Chakki as alternative for providing electricity in villages, etc.

Sports and Culture
1. Promotion of Sports and Cultural Activities for participation in State and National level.
2. Promotion/Development of sports activities in nearby villages by conducting Tournaments like Football, Kabaddi and Khokho, Cricket etc.
3. Providing sports materials for Football, Volleyball, Hockey sticks etc. to the young and talented villagers.
4. Promotion of State level teams.
5. Sponsorship of State Sports events in Bihar.
6. Sponsorship of Cultural event to restore Indian Cultural Traditions and Values.
7. Possibility of providing facilities for physically handicapped persons may be explored.
8. Medias for preparing of documentary films.
9. Guidelines to be followed to promote sports activities by way of granting financial assistance/donation/sponsorship etc.
10. Registered Clubs/Institutions which promote Sports activities may be granted financial assistance/donations/sponsorship based on the following norms: –
  1. Sports talent development program by Clubs/Institutions may be encouraged provided the proposal is routed through the respective Government Authorities/Block Development Office/Sub-Divisional Office/District Office/State Associations/ local people representatives i.e. Panchayat, Pradhan/Mukhiya/MLA/MP/ Minister etc., to ascertain bonafide objective, status of activities and contribution to the society.
  2. Helping State Government in promotion of sports by providing them proper training facilities, grounds, construction of fields, etc.
  3. While sanctioning financial assistance/donation/sponsorship for State/ National/International events, Company could send its representatives to ensure proper utilization of fund for the specific purpose, as well as, to ensure publicity/coverage for corporate image building.
  4. As per the Government policy for payment of financial assistance/donation/ sponsorship Registered Clubs/Institution will furnish details as required by Company. i.e. their Registration, PAN No. etc. to establish their authenticity.
11. Generate self-employment.
12. Infrastructure Support – construction, repair, extension etc. of: –

1. 1. Auditorium,
  2. Educational Institutions
  3. Rural Dispensaries initiated by reputed NGOs.
  4. Mobile Crèches.
  5. Bridges, Culverts & Roads,
  6. Check Dam
  7. Shopping Complex to facilitate business/self-employment for local people
  8. Community Centre,
  9. Sulabh Souchalaya,
  10. Yatri Shed in Bus Stand,
  11. Burning Ghat/Crematorium
  12. Development of Park
  13. Playground/Sports complex/Good Coaches.
  14. Old Age Home.

5.Geographic Reach

The Act provides that the Company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for Corporate Social Responsibility. The Company will thus give preference to conducting CSR activities in the state of Karnataka herein the Company has/will have its operations. However, the Committee may identify such areas other than stated above, as it may deem fit, and recommend it to the Board for undertaking CSR activities.

6. Annual spends/Allocation of Funds

The Company would spend not less than 2% of the average Net Profits of the Company made during the three immediately preceding financial years. The surplus arising out of the CSR activity will not be part of business profits of the Company. The Corpus would thus include the 2% of average net profits, as aforesaid, any income arising there from and surplus arising out of CSR activities.
The Company may build CSR capacities of its personnel and/or those of its implementing agencies through Institutions with established track records of at least three financial years but such expenditure shall not exceed five percent of total CSR expenditure of the Company in one financial year.
However if the Company ceases to be covered under sub-section (1) of Section 135 of the Act for three financial years, then it shall not be required to, comply with the provisions laid down under sub-section (2) to (5) of the said section, till such time it meets the criteria specified in sub-section (1) of the Act.

7.CSR Committee

The CSR Committee will consist of two Directors and two senior managerial staff of the Company, who shall meet at least twice in a year to discuss and review the CSR activities and policy. The quorum shall be two members, present for the proceeding to take place. The Chairperson and members of the committee are as follows:

Sl.No.	Name	Position
1.	Ms. Kalpaja Dalavai Audikesavulu	CEO
2.	Mr. Maheshbabu Kottapalli	President

8. Scope And functions of CSR Committee

The CSR committee will recommend a formal CSR Policy, recommend particular CSR activities, set forth a budget, describe how the company will implement the project, and establish a transparent means to monitor the progress of the activities, etc.

9.Administration of CSR Projects

The Company can meet its CSR obligations by funneling its activities on its own or through a third party, such as a society, trust, foundation or Section 8 company (i.e., a company with charitable purposes) that has an established track record in CSR-like activities. Companies may also collaborate and pool their resources, which could be especially useful for small and medium-sized enterprises. Board of Directors have the power to sanction any projects for CSR and the required amount for spending under the activity.

10.Implementation:

The investment in CSR should be project based and for every project time framed periodic milestones should be finalized at the outset.
Project activities identified under CSR are to be implemented by Specialized Agencies and generally not by staff of the organization.
Specialized Agencies could be made to work singly or in tandem with other agencies.
Such specialized agencies would include:

1. Community based organization whether formal or informal.
2. Elected local bodies such as Panchayats
3. Voluntary Agencies (NGOs).
4. Hospitals.
5. Institutes/Academic Organizations
6. Trusts, Mission etc.
7. Self-help groups
8. Government, Semi Government and autonomous Organizations.
9. Standing Conference of Public Enterprises (SCOPE)
10. Mahila Mondals/Samitis and the like Contracted agencies for civil works Professional Consultancy Organization etc.

11.FUNDING

As per the regulations the company will set aside, for annual CSR activities, an amount equal to 2% of the average net profits of the Company made during the three immediately preceding financial years. Any unutilized CSR allocation fund of a particular year will be carried forward to the next financial year i.e. the CSR budget will be non-lapsable in nature.
The tax treatment of CSR spent will be in accordance with the Income Tax Act, 1961 as may be notified by the central board of Direct taxes.

12.Budget

The Company’s Board of Directors shall ensure that in each financial year the Company spends at least 2% of the average Net Profit made during the three immediately preceding financial years.
Net profit‖ means the net profit as per the financial statement of the company prepared in accordance with the applicable provisions of the Act, but shall not include the following:
Any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise, and
Any dividend received from other companies in India which are covered under and complying with the provisions of section 135 of the Act
As per section 135 of the Companies Act, the Company will report reasons for under spending of the allocated CSR budget of the current financial year in the template provided by the Ministry of Corporate Affairs. This reporting will be done Annual Report and signed off by the Board of Directors
In case of any surplus arising out of CSR projects the same shall not form part of business profits of the Company.

The Company may collaborate or pool resources with other companies to undertake CSR activities, through any non-profit organization, if required.

13.Amendments to the policy

The Board of Directors on its own and/or on the recommendation of CSR committee can amend this policy as and when they feel it deemed necessary. Any or all provisions of CSR Policy would be subjected to revision/amendment in accordance with the regulations on the subject as may be issued from relevant statutory authorities, from time to time.

corporatecommunication@dalvkot.com