C S R policy of TFDPC Ltd.

Corporate Social Responsibility

(CSR) Policy of TFDPC Ltd

Corporate Social Responsibility (CSR) Policy of TFDPC Ltd

WHAT IS CSR?

The term "Corporate Social Responsibility (CSR)" can be referred as corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to companies efforts that  go beyond what may be required by regulators or environmental protection groups.

Applicability of CSR in TFDPC Ltd

TFDPC Ltd having Net Profit more than five Crores shall be covered within the ambit of CSR provisions as per provision of sub Section 1 of Section 135 of the Companies Act, 2013

TFDPC Ltd, as covered under the ambit of the CSR, shall be required to comply with the provisions of the CSR  & shall be required to do the following activities:

1. As provided under Section  135(1) itself, the TFDPC Ltd is required to Constitute Corporate Social Responsibility Committee of the Board "hereinafter CSR Committee". The CSR Committee shall be comprised of 3 or more directors, out of which at least one director shall be an independent director.

2. The Board's report of TFDPC Ltd shall disclose the compositions of the CSR Committee.

3. TFDPC Ltd  shall spend, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

Reporting for CSR

TFDPC Ltd shall be required to incorporate in its Board's report an annual report on CSR  the followings:

1  A brief outline of the company's CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs;

2  The composition of the CSR Committee;

3  Average net profit of the company for last three financial years;

4  Prescribed CSR Expenditure (2% of the amount of the net profit for the last 3 financial years);

5  Details of CSR Spent during the financial year;

6  In case the company has failed to spend the 2% of the average net profit of the last three financial year, reasons thereof;

Role of  CSR Committee

The CSR Committee of TFDPC Ltd constituted in pursuance of Section 135 of the Companies Act, 2013 shall be required to carry out the following activities:

a)  Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;

b) Recommend the amount of expenditure to be incurred on the activities referred to in clause

(a); and (c) Monitor the Corporate Social Responsibility Policy of the company from time to time.

Introduction of CSR activities of TFDPC Ltd

Long before this CSR Rule was implemented, TFDPC ltd had undertook and implemented many activities for welfare of society & its people. TFDPC took up rubber plantation for resettlement of tribal Jhumias as part of State Government’s social commitment. TFDPC voluntarily endorsed many Angwanwadi centers. TFDPC also took initiatives for sustainable foeset management for betterment of environment & society & got FSC Certificate. 

Aim of  CSR Policy:

1. TFDPC will promote sustainable forest development.

2. TFDPC will give preference to the local area and areas around it where it operates for CSR activities.

3 TFDPC will promote through its CSR activities environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water.

4. TFDPC will promote through its CSR activities gender equality, empowering women & education

5. TFDPC will promote through its CSR activities enhancement of vocational skills for generation of employment.

6.  TFDPC will promote through its CSR activities  any programmes related to Water Supply including Drinking Water, Health Care organizing, health awareness, Social Empowerment & providing Infrastructure Support.

7.  TFDPC will promote through its CSR activities regularly and in continuous basis.

Objectives of CSR Policy:

1. To provide an authorized framework & guidance for future CSR activities of TFDPC Ltd.

2. To establish a process & mechanism for the implementation & monitoring of CSR activities of TFDPC Ltd.

3. To establish specific goals regarding CSR activities in alignment with the philosophy of TFDPC Ltd.

4. To establish a system to locate the most deserving cause or beneficiaries. 

5. To establish a system for reporting and publishing matters related to CSR activities of TFDPC Ltd.

6. To establish a strategic mechanism for to reach maximum achievement by utilizing minimum resource.

7. To establish an environment of social awareness regarding the social activities of the corporations among the stakeholders of TFDPC Ltd.

15. Composition of CSR Committee of TFDPC LTD.

CSR Activities

The Policy recognizes 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  unable  & 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. Reducing child mortality and improving maternal health by providing good hospital facilities and low cost medicines;

v. Providing with hospital and dispensary facilities with more focus on clean and good sanitation so as to combat human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases;

vi. Ensuring environmental sustainability, ecological balance, protection of flora & fauna, animal welfare, agro forestry, conservation of natural resources & maintaining quality of soil, air & water;

vii. Employment enhancing vocational skills

viii. 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;

ix. Measures for the benefit of armed forces veterans, war widows & their dependents;

x. Training to promote rural sports, nationally recognized sports, sports & Olympic sports;

xi. 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;

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

xiii. Rural development projects, etc

xiv. Slum area development.

All activities under the CSR activities should be environment friendly and socially acceptable to the local people and Society. 

Contribution towards C.M relief fund shall be a part of CSR  activities  above 2% of Net profit other than the activities mentioned above.   

In conformity with provisions notified under Section 135 of the Companies Act 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014, the Scope of CSR Policy will cover the followings:

A.  Education.

i)  Support t o Technical /Vocational Institutions for their self -development.

ii)  Academic education by way of financial assistance to Primary, Middle and Higher Secondary Schools.

iii)  Adult literacy amongst those belonging to BPL.

iv)  Awareness Programmes on girl education.

v)  Counseling of parents

vi)  Special attention on education, training and rehabilitation of  mentally  & physically challenged children/persons.

vii)   Spreading legal awareness amongst people and disadvantageous  sections of the society about their rights & remedies available.

viii)   Promotion of Professional Education by setting up educational  Institutions offering courses in Engg, Nursing, Management,

ix)  Medicine and in Technical subjects etc.

x)  Provide fees for a period of one year or more to the poor and  meritorious, preferably girl students of the school in the  operational area of the Company to enable them to get uninterrupted education.

B. Water Supply including Drinking Water:

i)   Installation/Repair of Hand Pumps/Tube Wells.

ii)   Digging/Renovation of Wells.

iii)   Gainful  utilization of waste water from  Under -ground Mines for  Cultivation or any other purpose.

iv)  Development/construction of Water Tank/Ponds.

v)   Rain water-harvesting scheme.

vi)   Formation of a Task Force of Volunteers to educate people regarding

vii)  Proper use of drinking water.

viii)  Empowerment to the villagers for maintenance of the above  facilities for availability of water.

C. Health Care organizing, health awareness Camps on

i)   AIDS TB and Leprosy

ii)  Social evils like alcohol, smoking, drug abuse etc.

iii)   Child and Mother care

iv)   Diet and Nutrition.

v)  Blood donation camps.

vi)   Diabetics detection & Hypertension Camps

vii)   Family Welfare.

viii)   Senior Citizen Health Care Wellness Clinics.

ix)   Fully equipped Mobile Medical Vans.

x)   Tele medicine

xi)   To supplement the different programme of Local/State Authorities.

xii)  Along with De addiction centers

D. Environment

i)   Organizing sensitizing programmes on Environment Management and

ii)  Pollution Control.

iii)   Green belt Development

iv)   A forestation, Social Forestry, Check Dams, Park.

v)   Restoration of mined out lands.

vi)   Development of jobs related to agro product i.e., Dairy/Poultry/farming and others.

vii)   Plantation of saplings producing fruit.

viii)   Animal care.

E.  Social Empowerment.

i)   Self /Gainful Employment Opportunities  –  Training of Rural Youth for Self Employment (TRYSEM) on Welding, Fabrication, and other Electronic appliances.

ii)   To provide assistance to villagers having small patch of land to develop mushroom farming, medicinal plants, farming & other cash crops to  make them economically dependent on their available land resources.

iii)  Training may be provided by agricultural experts for above farming.

iv)   Organizing training programmes for women on tailoring Embroidery designs,

v)  Home Foods/Fast Foods, Pickles, Painting and Interior Decoration and other

vi)  Vocational Courses.

vii)   Care for senior citizens.

viii)   Adoption/construction of Hostels (specially those for SC/ST &girls)

ix)   Village Electricity/Solar Light

x)  To develop infrastructural facilities for providing electricity through Solar  Lights or alternative renewal energy to the nearby villages. Recurring expenditure should be borne by the beneficiaries.

xi)  Pawan Chakki as alternative for providing electricity in villages, etc.

F Sports and Culture

i)   Promotion of Sports and Cultural Activities for participation in State and  National level.

ii)   Promotion/Development of sports activities in nearby villages by conducting

Tournaments like Football, Kabaddi and Khokho, Cricket etc.

iii)  Providing sports materials for Football, Volleyball, Hockey sticks etc. to the  young and talented villagers.

iv)   Promotion of State level teams.

v)  Sponsorship of State Sports events in Bihar.

vi)   Sponsorship of Cultural event to restore Indian Cultural Traditions and Values.

vii)   Possibility of providing facilities for physically handicapped persons may beexplored.

viii)   Medias for preparing of documentary films.

ix)  Guide-lines to be followed to promote sports activities by way of granting  financial assistance/donation/sponsorship etc.

x)  Registered Clubs/Institutions which promote Sports activities may be grantedfinancial assistance/donations/sponsorship based on the following norms:-1)  Sports talent development programme by Clubs/Institutions may  be encouraged provided the proposal is routed through the respective Government Authorities/Block Development Office/Sub-Divisional Office/District Office/State Associations/ local people representatives i.e. Panchayat , Pradhan/Mukhiya/MLA/MP/ Minister etc., to ascertain bonafide objective, status of activities and contribution to the society.

2)  Helping  State Government in promotion of sports by providing them proper training facilities, grounds, construction of fields,etc.

3)   While sanctioning financial assistance/donation/sponsorship for State/ National/International events,  Company  could send its representatives to ensure proper utilization of fund for the specific purpose, as well as, to ensure publicity/coverage for corporate image building.

4)  As per the Government policy for payment of financial assistance/donation/ sponsorship Registered Clubs/Institution will furnish details as required by Company. i.e. their Registration, PAN No. etc. to establish their authenticity.

xi)  Generate self-employment.

xii)   Infrastructure Support – construction, repair, extension etc. of:-

i.   Auditorium,

ii.   Educational Institutions

iii.   Rural Dispensaries initiated by reputed NGOs.

iv.   Mobile Crèches.

v.   Bridges, Culverts & Roads,

vi.   Check Dam

vii.   Shopping Complex to facilitate business/self employment for local people

viii.   Community Centre,

ix.   Sulabh Souchalaya,

x.   Yatri Shed in Bus Stand,

xi.   Burning Ghat/Crematorium

xii.   Development of Park

xiii.   Play ground/Sports complex/Good Coaches.

xiv.   Old Age Home.

 

The Geographic reach

TFDPC will give priority to the area where it has any business unit like Rubber processing Centre or office, Factory etc, as the Act provides that 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.

Annual spends/Allocation of Funds Annual spends/Allocation of Funds

1.  TFDPC Ltd would spend not less than 2% of the average Net Profits of the Company made during the three immediately preceding financial years. The surplus arising out of the CSR activity will not be part of business profits of the Company. The Corpus would thus include the 2% of average net profits, as aforesaid, any income arising there from and surplus arising out of CSR activities.

2. TFDPC Ltd may build CSR capacities of its personnel and/or those of its implementing agencies through Institutions with established track records of at least three financial years but such expenditure shall not exceed five percent of total CSR expenditure of the Company in one financial year.

 

7. CSR Committee

TFDPC Ltd shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

The CSR Committee will perform under the chairmanship of the, Chairman, TFDPC Ltd along with the Managing Director, TFDPC Ltd and any other independent director be the second & third member. will consist of three Directors, who shall meet at least  twice in a year to discuss and review the CSR activities and policy. The quorum shall be two members are required  to be present for the proceeding to take place. The Chairperson and members of the committee of the committee are as follows:

  •  Sri Jashabir Tripura, Chairman, TFDPC Ltd                       :                     Chairman
  • Sri Rameshwar Das, Managing Director, TFDPC Ltd           :                       Member
  • Sri Madan Das, Board of Director, TFDPC Ltd                    :                       Member

Meeting of CSR Committee

CSR Committee of TFDPC LTD will meet at least two times in a financial year. Once in 1st quarter of the year to discuss last year’s performance & to implement currents year’s framework for CSR activities, and second time in the last (4th ) quarter to monitor the implementation of current years CSR activities.  Apart from these two  meetings, the committee may meet as often as its members deem necessary to call  a meeting to perform & discharge, the duties & responsibilities of the committee.

Duties & responsibilities of the committee.

1.  Periodical review of CSR activities undertaken by TFDPC Ltd. The CSR activities shall be guided by the list of activities specified in schedule VII of Companies Act.

2. Formulate & Recommend CSR activities to undertaken by TFDPC Ltd.

3. Institute a transparent mechanism & system for caring out CSR activities.

4. Prepare an annual report of CSR activities undertaken by TFDPC Ltd in a financial year and submit to the Board.

5. Approve expenditure for CSR within the limit vested to the Chairman for sanction. Beyond that limit, recommend to the Board for approval.

6. Monitoring the utilization for the sanctioned expenditure for CSR activities.

Responsibilities of the Board

1. Approve the CSR policy and ensure that the policy is being followed.

2. Ensure that statutory as per statutory requirement, in every financial year,  at least 2% of the average net profit made during immediate preceding three years, in pursuance the policy approved.  

3. Ensure that CSR activities undertaken by TFDPC Ltd shall be guided by the list of activities specified in schedule VII of Companies Act.

4. Ensure the disclosure of CSR policy & brief of CSR activities undertaken by TFDPC Ltd.

5. Director Report to include:

a. Brief Content of CSR policy & composition of CSR committee.

b. Annual report of CSR committee regarding  activities undertaken by TFDPC Ltd in a financial year.

c. Reasons for failure to incur expenditure at least 2% of the average net profit made during immediate preceding three years, for CSR activities.

6. To deicide that TFDPC will incur CSR activities directly or indirectly.

Administration of CSR Projects

TFDPC Ltd   may meet its CSR obligations by funneling its activities  on its own or through a third party, such as a society, trust, foundation or Section 8 company (i.e., a company with charitable purposes) that has an established record of at least  five  years in CSR-like activities.

 Funding

1.  TFDPC Ltd  will set aside, for annual CSR activities, an amount equal to 2% of the average net profits of the Company made during the three immediately preceding financial years. Any unutilized CSR allocation fund of a particular year, will be carried forward to the next financial year i.e. the CSR budget will be non lapsable in nature.

2.  The tax treatment of CSR spent will be in accordance with the Income Tax Act, 1961 as may be notified by the central board of Direct taxes.

Budget

I. Board of Directors of TFDPC Ltd shall ensure that in each financial year the Company spends at least 2% of the average Net Profit made during the three immediate preceding financial years.

II. As per section 135 of the Companies Act, TFDPC Ltd will  report reasons for under pending of the allocated CSR budget of the current financial year in the template provided by the Ministry of Corporate Affairs. This reporting will be done Annual Report and signed off by the Board of Directors.

III. In case of any surplus arising out of CSR projects the same shall not form part of business profits of the Company 

IV. TFDPC Ltd may collaborate or pool resources with other companies to undertake CSR activities, through any non-profit organization, if required.

CSR Expenditure

1.  In every financial year, at least 2% of the average net profit made during immediate preceding three years, in pursuance the policy approved. Net Profit shall mean the Net Profit (PADIT) as per the Profit & loss accounts in accordance with Companies Act 2013.

2. CSR Expenditure shall mean all expenditure in respect of an any specific project or programme relating to approved CSR activities.

3. CSR Expenditure shall not include any expenditure that is not accordance with list of activities specified in schedule VII of Companies Act.

4. CSR Expenditure shall not include any expenditure for project or programme outside India.

5. CSR Expenditure shall not include any expenditure that provide direct or indirect monitory or non-monitory benefit to TFDPC Ltd.

6. Surplus of arising out any CSR project or activity shall not form a part of TFDPC’s profit.

7. CSR Expenditure shall not include any expenditure as donation to contribution to any political body or political activates, directly or indirectly.

8. CSR Expenditure shall not include any expenditure for any projects / active=tiers relation to normal courses of TFDPC’s business.

9. CSR Expenditure shall not include any expenditure direct or indirect benefit for TFDPC’s workers/ employees & their family only.

10. CSR activities should be undertaken by the companies in project/ programme mode [as referred in Rule 4 (1) of Companies CSR Rules, 2014]. One-off events such as marathons/ awards/ charitable contribution/ advertisement/ sponsorships of TV programmes etc. would not be qualified as part of CSR expenditure.

11. Expenses incurred by companies for the fulfillment of any Act/ Statute of regulations (such as Labour Laws, Plantation Laws etc.) would not count as CSR expenditure under the Companies Act.

12. Salaries paid by the companies to regular CSR staff as well as to volunteers of the companies (in proportion to company’s time/hours spent specifically on CSR) can be factored into CSR project cost as part of the CSR expenditure.

 Display

TFDPC will publish on its website, CSR policy & brief of CSR activities undertaken by TFDPC Ltd on regular basis.

 Director Report, which is part of yearly annual report of TFDPC Ltd to include:

a. Brief Content of CSR policy & composition of CSR committee.

b. Annual report of CSR committee regarding  activities undertaken by TFDPC Ltd in a financial year.

c. Reasons for failure to incur expenditure at least 2% of the average net profit made during immediate preceding three years, for CSR activities.

Review & Amendments to the policy

The Board of Directors on its own and/or on the recommendation of CSR committee can amend its policy as and when required deemed fit. Any or all provisions of CSR Policy would be subjected to revision/amendment in accordance with the regulations on the subject as may be issued from relevant statutory authorities, from time to time.