CSR Policy

PREAMBLE

Pursuant to provisions of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014 every Company having net worth of Rs. 500 Crores or more or turnover of Rs. 1,000 Crores or more or net profit of Rs. 5 Crores or more during the immediately preceding financial year shall constitute Corporate Social Responsibility Committee (“CSR Committee”) and the CSR Committee shall formulate and recommend the policy.

Accordingly, the Board constituted the CSR Committee of the Board, pursuant to Section 135 of the Companies Act, 2013 consisting of 4 members, of which one is the Independent Director. The CSR Committee shall:

• Formulate and recommend to the Board, a CSR Policy which shall indicate activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013,
• Recommend the amount of expenditure to be incurred on CSR activities,
• Monitor the CSR policy of the Company from time to time.

Objectives of the Policy

The 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 as may be applicable and as amended from time to time and will, inter alia, provide for the following:

• Establishing guidelines for compliance with the provisions of Regulations to dedicate a percentage of Company’s profits for social projects,
• Ensuring the implementation of CSR initiative in letter and spirit through appropriate procedures and reporting.

Definitions

“Act” means Companies Act, 2013

“Corporate Social Responsibility” means Corporate Social Responsibility as defined in Section 135 of the Companies Act 2013 and Companies Corporate Social Responsibility Policy Rules 2014.

“Board” means Board of Directors of the Company.

“Company” means SBI Global Factors Ltd.

“Net Profit” means net profit as defined in section 135 of the Companies Act 2013 and Companies Corporate Social Responsibility Policy Rules 2014. Average Net profit shall be calculated as per section 198 of the 2013 Act.

CSR Activities

The Policy recognises 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:

• i. 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;
• ii. Promoting education, including special education & employment enhancing vocation skills especially among children, women, elderly & the differently abled & livelihood enhancement projects;
• iii. 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;
• iv. 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;
• v. 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;
• vi. Measures for the benefit of armed forces veterans, war widows & their dependents;
• vii. Training to promote rural sports, nationally recognised sports, paralymic sports & Olympic sports;
• viii. Contribution to the Prime Minister’s National Relief Fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES 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;
• ix. Contributions or funds provided to technology incubators located within academic institutions, which are approved by the Central Government;
• x. Rural development projects
• xi. Slum area development; (Explanation.- For the purposes of this item, the term `slum area' shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force)
• xii. Disaster management, including relief, rehabilitation and reconstruction activities.
  CSR activities shall be undertaken as per its stated CSR Policy, as projects, programs of activities (either new or ongoing) excluding activities undertaken in pursuance of the normal course of business of the Company.
  The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through:

a) a company established under section 8 of the Act or a registered trust or a registered society, established by the company, either singly or along with any other company, or,

b) a company established under section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government or any entity established under an Act of Parliament or a State legislature

Activities not included in CSR

Following shall not be included in CSR:

• (i) Activities undertaken in normal course of business..
• (ii) Activities undertaken outside India
• (iii) Contribution to any political party.
• (iv) Activities benefiting only for employees of the Company.
• (v) Activities not covered within Schedule VII of the Companies Act 2013.

Allocation of Funds

The Company would spend, in every financial year at least 2% of average net profits of the Company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

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 activities.

If a Company fails to provide or spend such amount, the Board shall specify reasons for not spending the amount in its Directors Report under clause (o) of sub – section of section 134; specify the reason for not spending the amount.

Planning & Coordination

Company will prepare an annual plan for CSR activities for each year within the budgetary provisions and will place the same before the CSR Committee and the Board of Directors for approval.

The focus of benefits will be in line with activities mentioned in projects/ programs and schemes approved by the 2013 Act.

CSR Activities to be stated in the Board Report and Website

The Board of Directors’ Report as per section 134(3) of the Companies Act 2013 shall disclose the composition of the Corporate Social Responsibility Committee formed as per section 135(2) of the 2013 Act.

Activities undertaken shall be prepared in form Annexed to Companies (Corporate Social Responsibility Policy) Rules, 2014 (Rule 8 of the companies (Corporate Social Responsibility Policy) Rules, 2014.

The copy of the policy shall also be displayed on the website of the Company.

Amendments to the Policy

The Board of Directors as per the recommendations of CSR Committee can amend the policy. The policy would be subject to revision/ amendment in accordance with the Regulations issued from time to time by the Statutory Authorities.

The Policy will be subject to review every year.

CSR Activities of SBIGFL (2020 - 2021)