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CSR

Inductotherm (India) Pvt Ltd – Corporate Social Responsibility Policy

Definitions

“Act” means the Companies Act, 2013 and rules framed there under.

“Corporate Social Responsibility (CSR)” means and includes but is not limited to

a) Projects or programmes relating to activities specified in Schedule VII to the Act or

b) Projects or programs relating to activities undertaken by the board of directors of a Company in pursuance of recommendations of the CSR Committee of the Board as per declared CSR policy of the company subject to the condition that such policy will cover subjects enumerated in Schedule Vll of the Act.

“CSR Committee” means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act.

“CSR Policy” relates to the CSR outlook of the Company and the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.

“Average Net profit” means the net profit as defined/calculated in accordance with provisions of Section 198 of the Companies Act, 2013.

CSR Policy requirements as per the Companies Act, 2013 and notified Rules

It may be noted that the term “CSR Policy” as used in the Act and the Rules notified on February 27, 2014 requires the following to be included:

a) “A list of CSR projects or programs which a company plans to undertake falling within the purview of Schedule VII of the Act, specifying modalities of execution of such projects and programs and implementation schedules for the same; and

b) Monitoring process for such programs provided that the CSR activities shall not include the activities undertaken in pursuance of normal course of business of the company.

The surplus arising out of CSR projects or programs or activities shall not for a part of the business profits of a company.”

CSR Activities

Schedule VII of the Companies Act, 2013 lists down the activities which may be included by Companies in their corporate social responsibility polices. The said activities relates to –

1. Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water

2. Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;

3. 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;

4. 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;

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:

6. Measures for the benefit of armed forces veterans, war widows and their dependents;

7. Training to promote rural sports, nationally recognised sports, paralympic sports  and Olympic sports;

8.   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;

9. Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government

10. Such other matters as may be prescribed.

However, out of the aforesaid activities, the Company currently plans to focus, support, partner and assist various CSR activities in the following areas :

1. Promoting Education through basic education for children, adult literacy and vocational skills training and development

2. Promoting Health care including Preventive Health care through awareness programmes, health check-ups, provision of medicine & treatment facilities

3. Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government

4. 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 Caste, the Scheduled Tribes, other backward classes, minorities and women;

5. Such other activities as the CSR committee or the Board may consider to be appropriate

Funds

At least two per cent in every financial year, of the average net profits of the company made during the three immediately preceding financial years shall form the Funds available for implementation of CSR projects.

Implementation Structure

a) The CSR activities shall be undertaken either directly by Company through registered trust or registered society or a Company established under section 8 of the Act by the Company singly or along with its holding or subsidiary or associate company or along with any other Company or holding or subsidiary or associate company of such other Company or otherwise. However, if such trust, society or Company not established by the Company either singly or along with its holding or subsidiary or associate company or along with any other Company or holding or subsidiary or associate company of such other Company , it shall have an established track record of three years in undertaking similar programs or projects.

b) The Company shall specify the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism.

c) The Company may collaborate with other companies to undertake aforesaid CSR activities

d) Any surpluses arising out of CSR projects or programmes or activities shall not form part of the business profits of the Company.

Monitoring mechanism

a) Each of the CSR projects and programmes would have clearly defined output, outcome and process indicators which will have to be reported on at specified frequencies, which will be at least once in a year.

b) All projects and programmes will be monitored by the company CSR committee, based on these reports and regular field visits. The monitoring process will cover both programme and financial reviews.

c) The CSR committee shall report to the Board of the Company, at least on annual basis, the status of the CSR activities/projects undertaken by the Company.