CSR Policy

K.P.R. AGROCHEM LIMITED
CSR POLICY

PREAMBLE:

With the notification of Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014 every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year 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 said Corporate Social Responsibility Committee shall formulate a policy on Corporate Social Responsibility Policy to the Board for adopting the same by the Board.

The Company, which is required to constitute a Corporate Social Responsibility Committee as state in Section 135 of the Companies Act, 2013 shall spend in every financial year atleast 2% of the average net profits of the Company made during three immediately preceding financial years. The amount of 2% as specified above shall be spend strictly as per the Corporate Social Responsibility Policy as approved by the Board in accordance with the recommendations received from the Corporate Social Responsibility Committee, duly constituted under Secretion 135 of the Companies Act, 2013.

PHILOSOPHY

For K.P.R. Agrochem Limited Corporate Social Responsibility is not just a statutory requirement under the Companies Act, 2013 but K.P.R. Agrochem Limited recognises it as its responsibility towards the society as a good corporate house.

Corporate Social Responsibility is strongly connected with the principles of Sustainability; an organization should make decisions based not only on financial factors, but also on the social and environmental consequences. Therefore, it is the core corporate responsibility of K.P.R. Agrochem Limited to practice its corporate values through its commitment to grow in a socially and environmentally responsible way, while meeting the interests of its stakeholders.

K.P.R. Agrochem Limited recognizes that its business activities have wide impact on the society in which it operates, and therefore an effective practice is required giving due consideration to the interests of its stakeholders including shareholders, customers, employees, suppliers, business partners, local communities, society at large and other organizations. K.P.R. Agrochem Limited endeavours to make CSR a key business process for sustainable development. K.P.R. Agrochem Limited is responsible to continuously enhance shareholders wealth; it is also committed to its other stakeholders to conduct its business in a more accountable manner that creates a sustained positive impact on society. K.P.R. Agrochem Limited is committed towards aligning with nature; and has adopted eco-friendly practices.

K.P.R. Agrochem Limited believes that in the strategic context of business, enterprises possess, beyond mere financial resources, the transformational capacity to create game-changing development models by unleashing their power of entrepreneurial vitality, innovation and creativity. In line with this belief, K.P.R. Agrochem Limited will continue crafting unique models to generate livelihoods and environmental capital. Such Corporate Social Responsibility ("CSR") projects are far more replicable, scalable and sustainable, with a significant multiplier impact on sustainable livelihood creation and environmental replenishment. These initiatives are independent of the normal conduct of K.P.R. Agrochem Limited’s business. Programmes, projects and activities (collectively "CSR Programmes") carried out in this regard are the subject matter of this Policy.

As a corporate entity, K.P.R. Agrochem Limited is committed towards sustainability. Ongoing dialogues with shareholders provide valuable approach with an objective that each business decision takes into account it’s social and environmental impacts and plans.

ACTIVITIES TO BE UNDERTAKEN BY K.P.R. Agrochem Limited:
The Corporate Social Responsibility Committee Constituted for this purpose under Section 135 of the Companies Act, 2013 shall do all such acts, deeds and things to achieve the following objectives:

  • eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation, including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water:
  • promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
  • 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;
  • ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water, including contribution to the Clean Ganga Fund setup by the Central Government for rejuvenation of river Ganga;
  • protection of national heritage, alt 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:
  • measures for the benefit of armed forces veterans, war widows and their dependents;
  • training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;
  • contribution to the P me 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;
  • contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
  • rural development projects;
  • slum area development; and
  • such other activities as may be allowed under the provisions of the Companies Act, 2013 read with rules made thereunder.

IMPLEMENTATION:

At the beginning of every financial year the Board shall transfer an amount, which shall not be less than 2% of the average net profits of the Company made during three immediately preceding financial years to a separate account, which shall be specifically earmarked for the purpose of undertaking the Corporate Social Responsibility as enshrined in this Corporate Social Responsibility Policy.

The Investment in the Corporate Social Responsibility activity shall be project based or programs or activities (excluding activities undertaken in pursuance of K.P.R. Agrochem Limited’s normal course of business) as may be determined by the Board from time to time on the recommendation of the Corporate Social Responsibility Committee. The Board shall have absolute right to abandon any project/program/activity at any time, if it feels the project has lost it purpose.

The Board can undertake the Corporate Social Responsibility project/program or activity as approved by the Corporate Social Responsibility Committee on its own, through registered trust, through registered society or through any other form/means as may be allowed under the applicable laws.

GOVERNANCE

Every year, the Corporate Social Responsibility Committee will place for the Board's approval, a Corporate Social Responsibility Plan delineating the Corporate Social Responsibility Programmes to be carried out during the financial year and the specified budgets thereof. The Board will consider and approve the Corporate Social Responsibility Plan with any modification that may be deemed necessary. However the Board is empowered to make changes to such Corporate Social Responsibility Plan from time to time at the recommendation of the Corporate Social Responsibility Committee.

The Corporate Social Responsibility Committee will assign the task of implementation of the Corporate Social Responsibility 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 Corporate Social Responsibility Programmes as determined by the Corporate Social Responsibility Committee within the specified budgets and timeframes and report back to the Corporate Social Responsibility Committee on the progress thereon at such frequency as the Corporate Social Responsibility Committee may direct.

The Corporate Social Responsibility Committee shall review the implementation of the Corporate Social Responsibility Programmes once a quarter and issue necessary directions from time to time to ensure orderly and efficient execution of the Corporate Social Responsibility Programmes in accordance with this Policy.

Once every six months the Corporate Social Responsibility Committee will provide a status update to the Board on the progress of implementation of the approved Corporate Social Responsibility Programmes carried out during the six month period.

CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

Corporate Social Responsibility expenditure will include all expenditure, direct and indirect, incurred by the K.P.R. Agrochem Limited on Corporate Social Responsibility Programmes undertaken in accordance with the approved Corporate Social Responsibility Plan. Moreover, any surplus arising from any Corporate Social Responsibility Programmes shall be used for Corporate Social Responsibility. Accordingly, any income arising from Corporate Social Responsibility Programmes will be netted off from the Corporate Social Responsibility expenditure and such net amount will be reported as Corporate Social Responsibility expenditure.

The Investment in the Corporate Social Responsibility activity shall be project based or programs or activities (excluding activities undertaken in pursuance of K.P.R. Agrochem Limited’s normal course of business) as may be determined by the Board from time to time on the recommendation of the Corporate Social Responsibility Committee. The Board shall have absolute right to abandon any project/program/activity at any time, if it feels the project has lost it purpose.

The Board can undertake the Corporate Social Responsibility project/program or activity as approved by the Corporate Social Responsibility Committee on its own, through registered trust, through registered society or through any other form/means as may be allowed under the applicable laws.

GOVERNANCE

Every year, the Corporate Social Responsibility Committee will place for the Board's approval, a Corporate Social Responsibility Plan delineating the Corporate Social Responsibility Programs to be carried out during the financial year and the specified budgets thereof. The Board will consider and approve the Corporate Social Responsibility Plan with any modification that may be deemed necessary. However the Board is empowered to make changes to such Corporate Social Responsibility Plan from time to time at the recommendation of the Corporate Social Responsibility Committee.

The Corporate Social Responsibility Committee will assign the task of implementation of the Corporate Social Responsibility Plan within specified budgets and time frames to such persons or bodies as it may deem fit.

The persons/bodies to which the implementation is assigned will carry out such Corporate Social Responsibility Programs as determined by the Corporate Social Responsibility Committee within the specified budgets and time frames and report back to the Corporate Social Responsibility Committee on the progress thereon at such frequency as the Corporate Social Responsibility Committee may direct.

The Corporate Social Responsibility Committee shall review the implementation of the Corporate Social Responsibility Programs once a quarter and issue necessary directions from time to time to ensure orderly and efficient execution of the Corporate Social Responsibility Programs in accordance with this Policy.

Once every six months the Corporate Social Responsibility Committee will provide a status update to the Board on the progress of implementation of the approved Corporate Social Responsibility Programs carried out during the six month period.

CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

Corporate Social Responsibility expenditure will include all expenditure, direct and indirect, incurred by the K.P.R. Agrochem Limited on Corporate Social Responsibility Programs undertaken in accordance with the approved Corporate Social Responsibility Plan. Moreover, any surplus arising from any Corporate Social Responsibility Programs shall be used for Corporate Social Responsibility. Accordingly, any income arising from Corporate Social Responsibility Programs will be netted off from the Corporate Social Responsibility expenditure and such net amount will be reported as Corporate Social Responsibility expenditure.

 

 

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