Corporate Social Responsibility Policy CERSAI Page 1
Table of Contents 1 Preamble. 3 2 Objective. 4 3 Governance 4 4 Resources... 5 5 Focus Areas... 5 6 Implementation.. 6 7 General. 7 8 Effective Date.. 7 Page 2
1. Preamble The Central Registry established by the Central Government under Section 20(1) of the SARFAESI Act, 2002 is operated and maintained by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a company licensed under Section 25 of the Companies Act 1956. CERSAI was incorporated on 5 th March, 2011 and it started its operations on 31 st March, 2011. The Company has been set up with an authorized capital of Rs.100 crores and paid up capital of Rs.49 crores with Government s contribution of 51% and rest 49% by 11 following shareholding banks : 1. State Bank of India 2. Bank of Baroda 3. Punjab National Bank 4. Bank of India 5. Canara Bank 6. IDBI Bank 7. Union Bank of India 8. Central Bank of India 9. Syndicate Bank 10. Indian Overseas Bank 11. National Housing Bank CERSAI is a not for profit company under Section 25 of the Companies Act 1956. CERSAI has been established with the purpose of registration of transactions of securitization and reconstruction of financial assets and creation of security interest. Page 3
The concept of Corporate Social Responsibility has gained immense prominence, as any economic organization which draws on societal resources must also achieve a balance of economic, environmental and social imperatives. We at CERSAI believe in scalable, replicable and sustainable CSR programmes, projects and activities. 2. Objective CERSAI through its CSR Policy intends to do our bit by engaging in activities which positively impact environment, communities, stakeholders and society at large. 3. Governance 3.1 Keeping in line with Rule 3, Section 135 of the Companies Act, 2013, the Board of Directors had formed a Corporate Social Responsibility Committee. The Committee constituted of the following members: The MD & CEO, CERSAI - Chairman of the CSR Committee Government Nominated Director, CERSAI - Member Independent Director, CERSAI - Member 3.2 The functions of the CSR Committee shall be as under: 3.2.1 To formulate and recommend to the Board a CSR Policy. 3.2.2 To recommend the projects, activities to be undertaken and the expenditure to be incurred thereon; 3.2.3 To monitor the CSR Policy and the CSR activities from time to time. 3.2.4 The CSR Committee shall monitor and submit its reports on annual basis to the Board of Directors of the Company. Page 4
4. Resources 4.1 For achievement of its CSR objectives through various CSR activities, CERSAI will allocate 2% of its average net profit of previous three years, as its Annual CSR Budget. 4.2 Any surplus or income arising from CSR activities shall be reinvested in CSR activities and shall not be a part of the normal business profits of the company. 4.3 Any unutilized CSR allocation of a particular year, shall be carried forward to the next year i.e. the CSR budget will be non-lapsable in nature. 5. Focus Areas Keeping in line with Schedule VII of The Companies Act, 2013 the following activities can be undertaken for CSR program by the Company: 5.1 Eradicating hunger, poverty and malnutrition, promoting preventive healthcare and sanitation and making available safe drinking water; 5.2 Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly and differently-abled and livelihood enhancement projects.; 5.3 Promoting gender equality, empowering women,, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups; 5.4 Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water; Page 5
5.5 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; 5.6 Measures for the benefit of the armed forces veterans, war widows and their dependents; 5.7 Training to promote rural sports, nationally recognized sports, paralympics sports and Olympic sports. 5.8 Contribution to the Prime Minister s national Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women; 5.9 Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government; 5.10 Rural development projects. The above list is illustrative and not exhaustive. The Board of the Company is authorized to consider CSR activities not envisaged in this list also. 6. Implementation 6.1 The implementation of the programmes shall be activity wise with periodical monitoring. 6.2 The activities identified under CSR may be carried out through outside agencies also which may include one or more than one agency either working separately or in tandem. Such agencies may include Trusts/Societies/NGOs/NPOs/Organizations/ Institutions duly approved by CERSAI. Page 6
7. General 7.1 Disclosures regarding CERSAI CSR policy, CSR activities, executing partners and expenditure entailed will be in public domain. The CSR programmes will form a part of the Annual report of the company. 7.2 In case of any ambiguity with regards to any provisions of the policy and/or any matter not covered herein, the interpretation of the MD & CEO, CERSAI shall be final. 7.3 Any or all provisions of the CSR policy will be subject to revision/amendment in accordance with the guidelines in the subject as may be issued by Government of India, from time to time. 7.4 CERSAI reserves the right to modify, cancel, add, or amend any of the provisions/rules without prejudice to Government rules. 7.5 The reporting of the CSR activities undertaken will be done on the following prescribed format; 1 2 3 4 5 6 7 8 Sr. no CSR project or activity identified Sector in which the project is covered Projects or programs 1) Local area or other 2) Specify the State and District where projects or programs were undertaken Amount outlay (budget) project or programs wise Amount spent on the projects or programs Sub-heads: 1) Direct Expenditure on projects or program 2) Overheads Cumulative expenditure up to the reporting period Amount spent: Direct or through impleme nting agency 8. Effective Date This policy is effective from 01.04.2014 ************************* Page 7