CSR Policy

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CSR Policy of the Company

The Company’s CSR Policy is as follows:

  1. 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.
  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 including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga.
  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 art 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 Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)] or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women;
  9. Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government;
  10. Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).]
  11. Rural development projects
  12. Slum area development.
  13. Disaster relief funds/ projects and such other activities as the Board may consider being appropriate.

(Required under the Companies Act, 2013 and Rules made thereunder) Formulated and recommended by the Corporate Social Responsibility Committee (“CSR Committee”) on 12/12/2021 and approved by the Board of Directors of the Company at its meeting held on 27/02/2022.

Policy Framework:

  • The President of India on August 29, 2013 provided assent to the Companies Act, 2013 (the “Act”).
  • Section 135 of the Act which stipulates the provisions relating to Corporate Social Responsibilities for companies was notified on February 27, 2014 and became effective April 1, 2014 “CSR Provisions”).
  • TBF NIDHI (KUMBAKONAM) LIMITED (“TBF” or “the Company”) falls within the scope of the aforesaid CSR Provisions.

Purpose

The Companies Act, 2013 has brought greater emphasis on CSR with rules that provide guidance on minimum CSR spend, focus areas, implementation mechanism and reporting to the shareholders of the company.

TBF CSR Policy has been designed keeping in view the company’s business vision, its CSR vision and long-term social objectives that the company wants to achieve. TBF CSR Policy has been created with the purpose to outline its CSR focus areas, review mechanism, execution process and reporting mechanism.

Scope of CSR for the Company

Projects undertaken by the Company over and above normal course of business and within the ambit of core areas are classified as CSR activities/projects

Corporate Social Responsibility Projects (“CSR Project”) shall mean and include all programs, projects, activities, health camps, contribution to relief funds, charitable donations, and education grants, sponsorships that contribute to the overall sustainable development of local communities and thereby helps in welfare of the society at large.

Responsibility of the Board of Directors

The responsibility of the Board of Directors shall be as under:

  1. To approve the CSR Policy & disclose the contents of such policy in its report and also place it on the Company’s website;
  2. Ensure that the activities proposed in the CSR Policy are undertaken;
  3. Ensure that the company spends, in every financial year, at least 2% of average net profits of the company made during the 3 immediately preceding financial years, as required under Section 135 of the Companies Act, 2013 & Rules made thereunder;
  4. If company fails to spend the sum as mentioned above, then the Board shall, in its Report specify the reasons for not spending the amount.

CSR Committee

Constitution of CSR Committee

A Corporate Social Responsibility Committee (“the CSR Committee”) has been constituted by the Board of Directors to oversee the CSR agenda of the Company. The committee has been formed as per the requirements of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014.

Board of Directors shall be empowered to take decision for making or effecting changes in the constitution of the CSR Committee.

Board of Directors shall be empowered to take decision for making or effecting changes in the constitution of the CSR Committee.

The terms of reference of the CSR Committee shall include the following:

  1. To identify the Corporate Social Responsibility projects/activities/ programs to be undertaken by the Company (“CSR activities”), in alignment with Schedule VII of the Act.
  2. To formulate the Corporate Social Responsibility Policy (“CSR Policy”) interalia, to include the CSR activities, specify the modalities of execution, implementation schedules and recommend the same to the Board of Directors.
  3. To recommend to the Board of Directors the amount of expenditure to be incurred on the CSR activities, for each financial year of the Company.
  4. To devise suitable transparent monitoring mechanism for monitoring progress/ status of implementation of the CSR activities.
  5. To monitor CSR Policy from time to time and revise the same as and when needed.
  6. To carry out such other functions, as may be prescribed by the Act or CSR Rules or as may be delegated by the Board, from time to time

Core CSR areas identified by the Company for CSR (“CSR Areas”):

Section 135 of the Companies Act, 2013 and Rules made thereunder stipulates that the CSR Projects must fall within the purview of Schedule VII of the Act.

In accordance with the statutory requirements and keeping the Company philosophy at priority, the CSR Committee identified the following thrust areas in line with our CSR goals:

The following is the list of CSR projects or programs which the Company may undertake pursuant to Schedule VII of the Companies Act, 2013:

  1. Eradicating hunger, poverty and malnutrition, promoting healthcare, 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 centers 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, agro forestry, 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 recognized sports, Para-Olympic 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. Rural development projects;
  11. Slum area development
  12. Any other measures with the approval of Board of Directors on the recommendation of CSR Committee subject to the provisions of Section 135 of Companies Act, 2013 and rules made there-under.

Exclusions

Following activities shall be excluded from the CSR expenditure of TBF:

  1. Activities which are exclusively for the benefit of employees of the company or their family members;
  2. Activities undertaken in pursuance of normal course of business of the Company;
  3. Direct or indirect contribution to political parties;
  4. Expenditure on item/s not in conformity with Schedule VII of the Companies Act 2013;
  5. Surplus arising out of CSR projects shall not form part of the business profits of Company instead the same will be further used for CSR purposes only.

Geographies and beneficiaries

Geographies

TBF will give preference to the local areas around its operations for spending the amount earmarked for CSR activities. TBF’s operations are mainly concentrated in the following areas:

  1. in and around the areas of its Registered Office
  2. in and around the areas of its Branch Offices
  3. TBF may undertake CSR activities in any other area in India as may be decided, from time to time

Beneficiaries

The beneficiaries of TBF’s CSR programs may be the following categories of people:

  1. Children / students
  2. Women
  3. Weaker sections of the society
  4. Abandoned Senior Citizens
  5. Others – society at large

Implementation Mechanism

The company may conduct / implement CSR programs by itself and/or through registered trusts, societies and / or section 8 (previously section 25) companies with an established track record of at least three years in carrying on activities in the related area/s or as suggested by Ministry of Corporate Affairs vide circulars/notifications.

The company may collaborate or pool resources with other companies to undertake CSR activities and any expenditure incurred on such collaborative efforts would qualify for computing the CSR spending.

The progress will be reported to the CSR Committee during the committee meetings.

The progress on CSR programs undertaken by the Company will be reported in the Annual Report in the format prescribed by the CSR Rules 2014.

Format for Annual Report

Monitoring of CSR programs

The TBF CSR team shall be responsible for day-to-day management of CSR related activities of the company. The team shall periodically report to the CSR committee regarding the financial and programmatic progress of CSR projects.

All projects undertaken by TBF shall be monitored on a regular basis. On-site monitoring would also be undertaken at least once a year to ensure on-track implementation.

The CSR team shall be empowered to appoint an external third party to monitor / review / audit the progress (financial and programmatic) of the CSR projects.

Effective Date

The CSR Policy shall be effective from the date of its approval by the Board of Directors. This Policy document shall supersede the earlier CSR Policy. Provided, however, that all the acts done in pursuance of the earlier CSR Policy shall stand ratified and covered under this policy.

Amendments to the CSR Policy

CSR Policy may be updated to align it with the changing requirement or changes in the legal and regulatory framework. Any revision in the Policy shall be approved by the Board of Directors.

CSR POLICY APPROVED ON BEHALF OF BOARD OF DIRECTORS ON THIS 27/02/2022 AT KUMBAKONAM.

Sd/-[KOMANDUR RANGARAJAN ELAYAVILLI BASHYAM]

CHAIRMAN
DIN: 05234845