CORPORATE SOCIAL RESPONSIBILITY POLICY

1. CSR Policy:

The CSR Policy of the Company shall be operative within the overall ambit of CSR provisions in the Companies Act 2013, Companies (CSR Policy) Rules 2014 & Schedule-VII to the Companies Act 2013 and amendments thereof from time to time.

2. CSR Committee of the Board:

The Board of the Company shall constitute a CSR Committee of the Board consisting of at least three directors,

3. Expenditure and Coverage under CSR Policy

The expenditure on account of CSR shall be made with a view to build goodwill of the company and to be a part of National programme, no matter how minuscule the same may be.

The CSR Policy of the company shall include the following:-

i) Geographical Coverage:

The Company would undertake CSR activities primarily in the geographical areas where it has business activities and interest viz:

  • (a) Purba Midnapore District of West, Bengal;
  • b) Thiruvallur District of Tamil Nadu;
  • (c) Kolkata and South & North 24 parganas;
  • (d) Tehsil – Vikas Nagar, Deharun, Uttar Khand.

In addition, the Company may contribute or be a part of projects/ schemes of national importance.

ii) CSR Projects / Programme :

Schedule VII of the Act (Attached at Annexure -A) deals with the activities that may be considered as CSR initiatives. However, the following initiatives shall be adopted as CSR focal points of the Company:

  • (a) Promoting preventive health care, sanitation and making available safe drinking water;
  • (b) Promoting education, employment enhancing vocational skill among children, women, elderly and differentially abled persons.
  • (C) Setting up homes and hostels for women; orphans; old age homes, facilities for senior citizens.
  • (d) Ensuring environmental sustainability, ecological balance, making quality water available
  • (e) Contribution to Prime Minister National Relief Fund.
  • (f) Rural Development Projects
  • (g) Any other CSR activity as recommended by the CSR committee and approved by the Board.
iii) Procedure for selection and obtaining in-principle approval:
  • a) In-charge of the geographical areas as identified above shall put forward detailed proposal to CEO every year. The proposal will be examined by a committee to be constituted by CEO and put up recommendation through proper channel for obtaining in-principle approval from the committee.
  • b) Base-line study/survey of all the short-listed projects should be done to establish the requirement of the project before placing the same for the administrative approval.
  • c) Projects should be chosen carefully with the ultimate objective of the benefit of the society. Projects involving one-time expenditure should be considered for CSR activity and any project involving recurring nature of expenditure should be avoided.
  • d) Emphasis should always be given to enhance the goodwill of the Company through CSR activities and to get the image of the Company uplifted at every opportunity. The name and logo of the Company should be on display at all the projects undertaken by the Company.
  • e) While selecting the project/scheme, emphasis would be given on the project/scheme which are easily implementable.
iv) Monitoring process of such projects:

CEO will nominate Officer (s) to execute, monitor and report the progress of the projects approved by Board.

4. Amount to be spent for CSR:

  • (a) At least 2% of the average net profit (before tax and after adjustment under section 198) of the company made during the three immediately preceding financial years shall be spent for every financial year commencing from 1st April 2014.
  • (b) Based on the provisions of the Companies Act, the overall amount to be spent for CSR in a financial year shall be arrived at and provided in the budget for approval of the Board.
  • (c) CEO is empowered to spend up to Rs.10 lakh per project and the CSR Committee is empowered to spend up to Rs.50 lakh per project on CSR projects / scheme within the purview of Schedule VII of the Companies Act 2013 subject to quarterly reporting of the same to the Board. Projects /scheme exceeding Rs.50 lakhs to be approved by Board on recommendation of CSR Committee.
  • (d) Surplus arising out of CSR projects or programme or activity shall not form part of the business profit of the company.

5. Implementation of CSR activities in IPPL:

The CSR activities of the Company shall be undertaken –

  • (a) by the company
  • (b) through registered trust with at least three years of established track record in undertaking similar programme / projects. If projects are undertaken through NGO, due diligence of such Trusts should be undertaken.

While committing the CSR spent, preference would be given to those organizations which are exempted under Income Tax Act, so that company could avail Income Tax benefit.

The Company would enlist those NGOs / Trusts which, are accredited with Tata Institute of Social Science (TISS) for undertaking CSR activities on behalf of IPPL.

7. Following activities shall not be deemed as CSR:

  • a) Any amount contributed directly or indirectly to any political party shall not constitute CSR activity.
  • b) The CSR activities should not include any activity undertaken by the company during the normal course of its business.
  • c) Any project, programme which benefit the employees or their families shall not be considered as CSR activities.

8. CSR Expenditure:

CSR expenditure shall include all expenditure including contribution to corpus, projects or programmes related to CSR activities approved by the Board on the recommendation of the CSR Committee, but does not include any expenditure on an item not inconformity or not in line with the activities which fall within the purview of Schedule VII of the Act.

9. CSR Reporting:

  • a) Board should be appraised quarterly regarding all the CSR activities undertaken by the Company.
  • b) Board’s report of the Company shall include an annual report on CSR containing particulars specified in Annexure-B of the Rules.

10. Display of CSR activities on IPPL website:

The contents of CSR policy and its activities shall be displayed on the website of the Company.

Annexure – A
[ Schedule VII ]
As notified by Ministry of Corporate Affairs dated 27th February, 2014
  • “(i) eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available sale drinking water;
  • (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
  • (iii) 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;
  • (iv) 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;
  • (v) 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;
  • (vi) measures for the benefit of armed forces veterans, war widows and their dependents;
  • (vii) training to promote rural sports, nationally recognised sports, paralympic sports and 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 and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
  • (ix) contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
  • (x) rural development projects.”