The concept of Corporate Social Responsibility (CSR) has gained prominence from all avenues. Organizations have realized that government alone will not be able to get success in its endeavour to uplift the downtrodden of society. The concept of CSR has been looked upon as closely linked with the principle of sustainable economic development, which requires the organizations to make decisions not only based on financial factors but also on immediate and long term social & environmental consequences of their activities.
Ministry of Corporate Affairs has notified Section 135 of the Companies Act, 2013 and Schedule VII thereto along with the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter “CSR Rules), effective April 01, 2014.
This Corporate Social Responsibility Policy (hereinafter “CSR Policy) of Grow Money Capital Private Limited (GMCPL) has been prepared pursuant to Section 135 of the Companies Act, 2013 and the CSR Rules. This CSR policy should serve as the referral document for all CSR-related activities at GMCPL.
a) “Act” means the Companies Act, 2013.
b) "Corporate Social Responsibility (CSR)" means and includes but is not limited to:-
c) "CSR Policy" relates to the activities to be undertaken by GMCPL as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of GMCPL, if any;
d) "Net profit" means the net profit of GMCPL as per its annual financial statements prepared in accordance with the applicable provisions of the Act,
In alignment with the vision of the company, GMCPL, as its CSR initiatives, will continue to enhance value creation in the society and in the community in which it operates, through its services, conduct and initiatives, so as to promote sustained growth for the society and community in fulfilment of its role as a Socially Responsible Corporate with environmental concern.
In every financial year, GMCPL shall, with the recommendation and approval of its Board of Directors, make a budgetary allocation for CSR and Sustainability activities /projects for the year. The budgetary allocation will be at least two percent of the average net profits of GMCPL made during the three immediately preceding financial years. The Company shall give preference to the local area(s) around it where it operates, for spending the amount earmarked for CSR activities.
CSR expenditure shall include all expenditure including contribution to corpus, for projects or programs relating to CSR activities approved by the Board but does not include any expenditure on an item not in conformity or not in line with activities covered under the purview of Schedule VII to the Act. The surplus arising out of the CSR projects or programs, or activities shall not form part of the business profits of GMCPL.
The CSR activities shall be undertaken by GMCPL, as per its stated CSR Policy, as projects or programs or activities (either new or ongoing), excluding the activities undertaken in pursuance of its normal course of business.
GMCPL may join hands and the resources for undertaking CSR activities with any other Company or with any Civil Society Organizations or Government bodies or registered trusts or registered society or Section 8 companies, etc. or otherwise:
CSR projects or programs or activities undertaken in India only shall amount to expenditure towards CSR activities. The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with Section 135 of the Act.
GMCPL may build CSR capacities of its own personnel as well as those of their 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.
Contribution of any amount directly or indirectly to any political party under Section 182 of the Act, shall not be considered as CSR activity.
As per the Schedule VII read with Section 135 of the Companies Act, 2013, the following activities would be allowed as a part of CSR activities by GMCPL:
The above list is illustrative and not exhaustive.
The Board of Directors shall formulate a plan for efficient implementation of identified projects. Such a plan shall inter alia contain milestones and deadlines;
5.2 As per requirement, the Company may engage specialized agencies/ NGOs/Trusts/ Government or Semi-Government organizations/ private agencies for any assignment, who have requisite expertise of carrying out the identified activities/ programmes. The Board may discontinue any CSR activity, if the implementation of the said CSR activity is found that the implementation of the same is practically not feasible, at its sole discretion;
5.3 Implementation plans for the CSR activities shall be drawn by Board of Directors.
6.1. To ensure effective implementation of the CSR Programs undertaken, a monitoring mechanism will be put in place.
6.2 CSR Programs undertaken by the Company shall be reported in the Annual Report.
7.1 In pursuance to Section 135 of the Act, GMCPL shall through its Board of Directors shall:
a) The quorum necessary for the transaction of business at the meeting shall be 1/3rd of its total strength or two directors, whichever is higher, with at least one Independent Director.
The Board shall:
8.1 Annual Reporting
The Board's Report of Grow Money Capital Private Limited for the financial year commencing from 1st day of April, 2019 shall include an annual report on CSR containing particulars as specified in the Annexure to the CSR Rules, 2014.
8.2 Company’s Website
The Board of Directors of GMCPL shall disclose contents of such Policy in its report and the same shall be displayed on the Company's website, if any, as per the particulars specified in the Annexure to the CSR Rules, 2014.
FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE BOARD’S REPORT