Corporate Social Responsibility Policy
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1 Corporate Social Responsibility Policy
2 1. Introduction: The concept of Corporate Social Responsibility has gained prominence from all avenues. Organization must realize that Government alone will not be able to get success in its endeavor to uplift the downtrodden of the Society. Corporate Social Responsibility is strongly connected with the principles of Sustainability; an organization should make decisions based not only on financial factors, but also on the social and environmental consequences. Transformers and Rectifiers (India) Ltd ( TRIL ) has always believed in Power of We, Power of We is core value of the Company and We is inclusive of Society at large and Environment as well. Thus, it is the core corporate responsibility of Transformers and Rectifiers (India) Ltd ( TRIL ) to practice its corporate values through its commitment to grow in a socially and environmentally responsible way, while meeting the interests of its stakeholders. The company endeavors to make CSR a key business process for sustainable development. TRIL is responsible to continuously enhance shareholders wealth; it is also committed to its other stakeholders to conduct its business in accountable manner that creates a sustained positive impact on society. 2. Objectives of the Policy: The objectives of this policy are to Demonstrate commitment to the common good through responsible business practices and good governance. Actively support the state s development agenda to ensure sustainable change. Set high standards of quality in the delivery of services in the social sector by creating robust processes and replicable models. 3. Applicability: TRIL s CSR policy has been developed in accordance with the provisions of Section 135 of the Companies Act 2013 ( the Act ) on CSR and in accordance with the CSR rules ( Rules ) notified by the Ministry of Corporate Affairs. The Policy shall apply to all CSR projects/programmes undertaken by the Company in India as per Schedule VII of the Act. This policy shall be applicable to TRIL including all its subsidiaries.
3 4. Corporate Social Responsibility Committee: Composition: CSR committee will consist of three or more directors of which, atleast one will be an independent director. Responsibility of CSR Committee: formulating the CSR policy in compliance to Section 135 of the Companies Act 2013 identifying activities to be undertaken as per Schedule VII of the Companies Act recommending to Board the CSR expenditure to be incurred. recommending to Board, modifications to the CSR policy as and when required. regularly monitoring the implementation of the CSR policy. 5. Board: TRIL s Board will be responsible for: approving the CSR policy as formulated by the CSR Committee. ensuring that in each financial year the Company spends at least 2% of the average net profit before taxation excluding profits arising from overseas branches made during the three immediate preceding financial years. ensuring that every financial year funds committed by the Company for CSR activities are utilized effectively, and regularly monitoring implementation. disclosing in its Annual Report the names of CSR Committee members, the content of the CSR policy and ensure annual reporting of its CSR activites on the Company s website. ensuring annual reporting of CSR policy to the Ministry of Corporate Affairs, Government of India, as per the prescribed format. As per Section 135 of the Companies Act, 2013 the reasons for under spending of the allocated CSR budget shall be specified in the Board s Report. The surplus arising out of the CSR activities, if any, will not be considered as a part of the business profits of the Company.
4 6. CSR Budget CSR Committee will consider the annual budgeted expenditure project wise. 7. Guiding Principles: TRIL is vigilant in its enforcement towards corporate principles and is committed towards sustainable development and inclusive growth. The Company constantly strives to ensure strong corporate culture which emphasizes on integrating CSR values with business objective. It also pursues initiatives related to quality management, environment preservation and social awareness. To attain its CSR objectives in a professional manner and integrated manner, the company shall take the steps: To eradicate hunger, poverty and malnutrition, promoting preventive health care including preventive health care and sanitation and making available safe drinking water; For promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects; For 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; For 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; For 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; measures for the benefit of armed forces veterans, war widows and their dependents; imparting training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports;
5 To contribute 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; contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government; For rural development projects. 8. Implementation: The Company s CSR programmes will be identified and implemented according to the Board s approved CSR policy. The Company will enhance its monitoring and evaluation mechanism so as to ensure every programme has: clearly defined objectives, targets and time lines. A progress monitoring system Impact assessments A reporting framework and system in alignment with the Act and Rules. The company will implement its CSR programs either through any government or Non-Government Organisations. 9. Monitoring and Reporting Framework: TRIL s CSR Committee shall monitor the implementation of the CSR Policy through periodic reviews of the activities. The Committee will in turn recommend this to the Board for its final approval. The CSR Committee will ensure that the CSR Policy is implemented as per the Acts and the Rules. CSR spends will be closely monitored and funds shall be released against verified utilizations as per the approved work plans. A evaluation plan will be put in place.
6 The CSR Committee will prepare the annual CSR report to be filed by the Company on approval of the Board.
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