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 any 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 two are the Independent Directors. The CSR Committee shall :
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:
“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.
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 & 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;
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 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 CSR activities shall be undertaken as projects, programs of activities (either new or ongoing) excluding activities undertaken in pursuance of the normal course of business of the Company.
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.
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.
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.
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.
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.