Corporate Social Responsibility Policy and Committee Members
In terms of provisions of Section 135 of the Companies Act, 2013 and Corporate Social Responsibility Policy Rules, 2014, the Corporate Social Responsibility Committee (CSR Committee) has formulated a Corporate Social Responsibility Policy (CSR Policy) which indicates the activities which can be undertaken by the Company. This policy recommended by CSR Committee, was approved by the Board in its meeting held on 1st April, 2017.
1. Introduction
The Board of Directors (the "Board") of Sharman Spinning Mills Pvt. Ltd. (the "Company") has adopted the following policy and procedures with regard to Corporate Social Responsibility. The Board may review and amend this policy from time to time subject to the recommendations of Corporate Social Responsibility Committee.
2. Policy Objective & Philosophy
Sharman Spinning Mills Private Limited is committed to the standards of corporate social responsibility in its business activities. We aspire to high standards of practice through a process of continual improvement and the adoption of codes and standards where practicable. To meet this commitment, we will implement management systems in our operations that accord with the requirements of our corporate social responsibility standards and strive to:
- Comply with all applicable laws, regulations and other employment standards, wherever we operate.
- Consult with and respond to the concerns of our stakeholders.
- Function with honesty and integrity in all our activities and relationships with others and reject bribery and corruption in all its forms.
3. Definitions
"Board of Director" or "Board" means the Board of Directors of the Company, as constituted from time to time.
"Company" means a company incorporated under the Companies Act, 2013 or under any previous company law.
"CSR Programmes" means Programmes, projects and activities carried out in this regard are the subject matter of this Policy.
"Corporate Social Responsibility Committee or Committee" means CSR Committee constituted by the Board of Directors of the Company, from time to time.
"Independent Director" means a Director of the Company, not being a whole time director and who is neither a promoter nor belongs to the promoter group of the Company and who satisfies other criteria for independence under the Companies Act, 2013.
"Policy" means Corporate Social Responsibility policy. Any other term not defined herein shall have the same meaning as defined in the Companies Act, 2013 or any other applicable regulation.
4. Policy
Employees
a. Respect the rights and dignity of every employee and treat them fairly and without discrimination
b. Encourage team working and the sharing of knowledge throughout the organization.
c. Recognize employees’ individual and team contribution and reward them appropriately.
d. Forbid, eliminate and not be complicit in the use of forced or child labour.
Local Communities
a. Respect the rights of indigenous peoples in all states in which we operate.
b. Assist in the development of local community programmes where we operate, in consultation with local government, the public and our stakeholders.
Human Rights
a. Respect and support internationally recognized human rights standards wherever we operate and seek to ensure non-complicity in human rights abuses.
b. Identify, assess and manage human rights risks within our sphere of influence and activities, working firstly to avoid or mitigate them and then seek to remedy any actual or potential impacts.
c. Ensure that appropriate mechanisms are in place for those affected by our operations to raise grievances.
Suppliers
a. Ensure that contractors and suppliers are aware of, and where necessary, work with us to meet our business principles, policies and standards.
Our Mission
a. To direct Sharman’s CSR Programmes, inter alia, towards achieving one or more of the following - enhancing environmental and natural capital; supporting rural development; promoting education including skill development; providing preventive healthcare, providing sanitation and drinking water; creating livelihoods for people, especially those from disadvantaged sections of society, in rural and urban India and preserving and promoting sports.
b. To develop the required capability and self-reliance of beneficiaries at the grass roots, in the belief that these are prerequisites for social and economic development
c. To engage in affirmative action/interventions such as skill building and vocational training, to enhance employability and generate livelihoods for persons including from disadvantaged sections of society.
d. To pursue CSR Programmes primarily in areas that falls within the economic vicinity of the Company's operations to enable close supervision and ensure maximum development impact.
e. To carry out CSR Programmes in relevant local areas to fulfil commitments arising from requests by government/regulatory authorities and to earmark amounts of monies and to spend such monies through such administrative bodies of the government and/or directly by way of developmental works in the local areas around which the Company operates.
f. To carry out activities at the time of natural calamity or engage in Disaster Management system.
g. To contribute to the Prime Minister’ National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women.
h. To contribute or provide funds to technology incubators located within academic institutions which are approved by the Central Government.
i. To contribute to any fund setup by the Central Government or State Government(s) including Chief Minister’s Relief Fund, which may be recognized as CSR activity.
j. To promote sustainability in partnership with industry associations, like the Confederation of Indian Industry (CII), PHD, FICCI, etc. in order to have a multiplier impact.
5. Implementation
To implement the Company's CSR Programmes through Company personnel or through external implementing agencies (and other Registered Trusts / Society or a Section 8 company that are established or that may be established by the Company or its holding/subsidiary/associate Company from time to time). In such cases, the Company will specify the CSR Programmes which may be undertaken by those Trusts/Societies or Section 8 companies in accordance with their objects and administrative and accounting processes laid down in the respective Trust Deeds/ Memorandum and Articles of Association.
6. Governance
Every year, the CSR Committee will place for the Board's approval, a CSR Plan delineating the CSR Programmes to be carried out during the financial year and the specified budgets thereof. The Board will consider and approve the CSR Plan with any modification that may be deemed necessary.
The CSR Committee will assign the task of implementation of the CSR Plan within specified budgets and timeframes to such persons or bodies as it may deem fit.
The persons/bodies to which the implementation is assigned will carry out such CSR Programmes as determined by the CSR Committee within the specified budgets and timeframes and report back to the CSR Committee on the progress thereon at such frequency as the CSR Committee may direct. The CSR Committee shall review the implementation of the CSR Programmes periodically and issue necessary directions from time to time to ensure orderly and efficient execution of the CSR Programmes in accordance with this Policy.
The CSR Committee will review periodically and keep the Board apprised of the status of the progress of implementation of the approved CSR Programmes.
Finally at the end of every financial year, the CSR Committee will submit its report to the Board.
7. CSR Expenditure
CSR expenditure will include all expenditure as may be permitted under the applicable laws, including contribution to corpus for CSR Programmes approved by the Board on the recommendation of its CSR Committee, but does not include any expenditure on an item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Act.
8. Reporting
The Board’s Report of the Company to include an annual report on CSR containing particulars specified in the annexure to the rule pertaining to a financial year commencing from April 1, 2018.
9. Disclosures
The contents of the approved CSR Policy shall be disclosed in the Board’s Report and displayed on the Company’s website.
The disclosures related to CSR activities and annual report pursuant to Section 134(3) of the Companies Act, 2013 read with Rule 9 of Companies (Accounts) Rules, 2014 and Companies (Corporate Social Responsibility) Rules, 2014 is annexed hereto and form part of this report as Annexure VI.
The reasons for the failure to spend the specified amount towards Corporate Social Responsibility are: The Company has evaluated various social causes it wishes to commit itself to and is also engaging with the proposed beneficiaries to assess their needs. Being a large-scale activity, it is also evaluating various external agencies to assist in effective implementation of its social vision. Planning has taken up a substantial part of the year and it is expected that in the coming years execution will be speeded up.
The Company’s Corporate Social Responsibility Committee comprises of two Wholetime directors. The table sets out the composition of the Committee:
| Name of the Director | Position held in the Committee | Category of the Director |
|---|---|---|
| Mr. Ripan Jain | Chairman | Wholetime Director |
| Mr. Rajan Jain | Member | Wholetime Director |