SHORT TITLE & APPLICABILITY:
1.1.1This policy, which encompasses the company’s philosophy for delineating its responsibility as a corporate citizen and lays down the guidelines and mechanism for undertaking socially useful programmes for welfare & sustainable development of the community at large, is titled as the ‘Aavas CSR Policy’.
1.1.2 This policy shall apply to all CSR initiatives and activities taken up at the various work‐centres and locations, for the benefit of different segments of the society, specifically the deprived, underprivileged and differently able persons.
1.1.3 The Company (‘Aavas’) has to make CSR expenditure of prescribed amount, if it is having net worth of INR 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 the immediately preceding financial year.
1.2. CSR VISION STATEMENT & OBJECTIVE:
1.2.1. In alignment with vision of the company, Aavas, through its CSR initiatives, shall continue to enhance value creation in the society and in the community in which it operates, through its services, conduct & initiatives, so as to promote sustained growth for the society and community, in fulfillment of its role as a Socially Responsible Corporate, with environmental concern.
1.2.2. The objective of the CSR Policy is to:
2.1. Funding & Allocation:
2.1.1. For achieving its CSR objectives through implementation of meaningful & sustainable CSR programmes, Aavas will allocate 2% of the average net profits of the company made during the three immediately preceding financial years, as its Annual CSR Budget.
CSR expenditure shall include all expenditure including contribution to corpus, or on projects or programs relating to CSR activities approved by the Board on the recommendation of its CSR Committee, but does not include any expenditure on an item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Companies Act, 2013.
2.1.2. From the annual CSR Budget allocation, a provision will be made towards the following expenditure heads, on a year on year basis:
Aavas as responsible Corporate Citizen shall contribute in the following activities:
2.1.3. Any unspent/unutilized CSR allocation of a particular year, will be carried forward to the following year, i.e., the CSR budget will be non‐lapsable in nature.
3.1. Identification of thrust areas and strategic initiatives:
3.1.1.For purposes of focusing its CSR efforts in a continued and effective manner, the following thrust areas / projects / programs have been identified:
4. CONSTITUTION & RESPONSIBILITIES OF CSR COMMITTEE
4.1The company has duly constituted CSR committee comprising of 3 Directors out of which at least one director shall be an independent director in compliance with section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014.
Company Secretary shall be the secretary of Committee.
The quorum necessary for the transaction of business agenda at the meeting of committee shall be two Members. A duly convened meeting of the Committee at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretions vested in or exercisable by the Committee.
The Committee shall meet not less than twice a year and at such other times as the Chairman of the Committee shall require.
Duties of CSR Committee:
As per sub section (3) of section 135 of the Companies Act, 2013, the duty of the committee shall be as follows;
Based on the recommendations of the CSR Committee, the Board to approve the CSR Policy for the company and ensure that the activities as included in CSR Policy are undertaken by the company.
Duties of Board:
5.1 CSR programmes / projects shall be undertaken to the best possible extent within the defined ambit of the identified ’thrust areas’
5.2 The time period/duration over which a particular programme shall be spread, shall depend on its nature, extent of coverage and the intended impact of the programme.
5.3 Company shall synergize its efforts with the State Governments, District Administration, Local Administration as well as Central Government departments, Agencies, Fund managers, organizations, etc., for fulfilling its corporate social responsibility, if required.
5.4 Project activities identified under CSR are to be implemented by specialized agencies, which could include ‐ Voluntary Organizations (VOs) formal or informal Elected local bodies, Institutes/Academic Institutions, Trusts, Govt/Semi Govt./Autonomous organisations, Professional Consultancy organization etc.
5.5 The process for implementation of CSR programmes/ project shall involve the following steps:
5.5.1 Identification of programmes at Corporate and work centre level will be done by means of the following:
5.5.2 Area of CSR activities: Aavas shall strive to focus that its CSR Activities are concentrated in nearby areas where business operation of Aavas is carried at H.O. or Branch level.
5.6 CSR REPORTING AND DISCLOSURE:
5.6.1. The Board’s Report of a company pertaining to a financial year shall include an annual report on CSR containing particulars as specified in the Act.
5.6.2. The Board’s Report of a company pertaining to a financial year shall include an annual report on CSR containing particulars as specified in the Act.
5.7 Powers for approval
5.8 Executing agency/Partners:
5.9 Agreement between Aavas & Executing agency:
5.9.1 Once the programmes approved by the CSR Committee of the Board, if required, any of Senior team members shall enter into an agreement with Executing Agency/Implementing Agency of CSR Programmes.
6. MONITORING AND FEEDBACK
6.1. To ensure effective implementation of the CSR programmes undertaken at work centre, a monitoring mechanism will be put in place by the committee/sub‐committee.
6.2 Appropriate documentation of the Aavas CSR Policy, annual CSR activities, executing partners, agreements, report and expenditure entailed will be undertaken on a regular basis and the same will be reported to the Committee and/or Board.
6.3The CSR Committee has power to appoint authorized officials, employees of the Company, any consultant and professional to monitor CSR programmes.
7.1. Any or all provisions of the CSR Policy would be subject to revision/amendment in accordance with the guidelines on the subject as may be issued from Government, from time to time.
7.2. 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.
7.3 Companies may build CSR capacities of their 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 including expenditure on administrative overheads, shall not exceed five percent of total CSR expenditure of the company in one financial year.
7.4 Any surplus arising from any CSR Programmes shall be used for other CSR activities. In no case surplus arising out of CSR projects or programmes or activities will form part of the business profit of Aavas.
7.5 The total expenditure towards administrative and other overheads for the CSR projects or programmes or activities cannot be more than 5% of total CSR fund for a year.
7.6 Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act.
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