For Hindustan Copper Limited (HCL) Corporate Social Responsibility (CSR) is the Company’s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner while recognizing the interests of its stakeholders.
Even much before CSR became mandatory; HCL recognized that its business activities have both direct and indirect impacts on the society and strived to integrate its business processes with the social processes in order to enable creation and distribution of wealth for the betterment of its stakeholders in an ethical and transparent manner. It is committed to sustainable development and to meet the interests of its stakeholders. It is also committed to continuously upgrade its CSR initiatives in order to make a positive impact on the people staying in and around the areas of its mining Units on a continuous basis.
The objectives of HCL’s CSR activities are as follows.
a. In conformity to the provisions of the Companies Act, 2013, read with Companies (Corporate Social Responsibility Policy) Rules, 2014 and the CSR Guidelines issued by Department of Public Enterprises [DPE] from time-to-time, to indicate the CSR projects that HCL plans to undertake.
b. To create value for the stakeholders and society that is fundamentally linked to HCL’s core business and operations through its initiatives for their sustainable development.
c. To enhance value creation for the community around HCL’s areas of operation by fostering goodwill among the stakeholders towards the Company by enhancing their quality of life.
d. To carry out developmental initiatives in order to meet the calls of the present without compromising the ability of future to meet its needs.
HCL’s CSR philosophy is centered on the idea of creating shared value focusing on the Triple Bottom-line approach (People, Planet & Profit). The thrust of CSR shall be on capacity building, empowerment of communities, inclusive socio-economic growth, environment protection, promotion of green and energy efficient technologies, development of backward regions as well as upliftment of the marginalized and under-privileged sections of the society. Further, the surplus, if any, arising out of the CSR projects or activities shall not form part of the business profit of HCL.
For Hindustan Copper Limited, the Corporate Social Responsibility is a planned set of activities taking into consideration the Company’s capabilities, expectations of the communities living in and around the areas of its operation as well as where it has its presence, targeted to have a significant positive impact in the long term. The aim is to play a catalytic role in the sustainable socio-economic development in the regions where the industry is located or where its interests lie, attempting to create an enabling working environment for HCL as well as income generation opportunities for the community keeping sight of sustained regional development.
a. The CSR projects in the Company shall be implemented under the guidance of the Board’s Sub-Committee on CSR comprising of three or more Directors out of which at least one Director shall be an Independent Director.
b. The CSR Sub-Committee of the Board shall have the following responsibilities.
(i) Formulate and recommend CSR policy to the Board for approval.
(ii) Recommend for approval of the Board the amount of expenditure to be incurred on the activities in a financial year along with projects to be undertaken earmarking funds for broad area-wise projects.
(iii) Monitor from time to time the implementation of the CSR projects undertaken by the Company.
c. A Nodal Officer for CSR at Corporate level – preferably one rank below the Board level - shall coordinate Company’s CSR initiatives and shall be assisted by a team of designated officers.
d. A Nodal Officer for CSR at Unit level shall coordinate Unit’s CSR initiatives.
Scope of activities
The scope of HCL’s CSR programmes shall be governed by the provisions of Schedule VII of the Companies Act, 2013 and shall include the following broad heads.
HCL being a CPSE with pan-India operations, the amount earmarked for CSR activities in a financial year shall be utilized as under subject to the recommendation of the Board’s Sub-Committee on CSR and approval of the Board of Directors.
a. The CSR initiatives shall be taken up primarily in and around areas of HCL Units, within a radius of 15-20 Km. At least 75% of the amount earmarked for CSR activities shall be spent in these areas.
b. Of the remaining 25% of the CSR allocation after (a) above, around 15-20% may be utilized in areas beyond 15-20 Km. of the Unit but within the State in which the Units are located.
c. Up to a maximum of 5% of the amount earmarked for CSR activities may be utilized any where in India to be decided by the CMD.
HCL shall, in every financial year, spend at least 2% of the average net profits of the Company made during the three immediately preceding three financial years on its CSR activities as per the provision of Companies Act, 2013. CSR Budget shall be allocated for each financial year with the approval of the Board of Director on the recommendation of the Board’s Sub-Committee on CSR. Every endeavor shall be made to spend the entire annual CSR budget in that year itself. However, the unspent CSR amount, if any, would be carry forward to the next year.
a. The identification of CSR activities at Unit / Corporate level shall be done by any one or combination of the following methods.
(i) In-house planned projects.
(ii) Proposals from District Administration / local Govt. body/public representatives etc.
(iii) Proposals/Requests from a registered & specialized body for providing financial assistance for carrying out specific CSR initiative subject to the condition that it fulfils the criteria as prescribed in the statute in this regard. (Proposals to be considered only after checking the credibility of the proposing body through evaluation of necessary documents. Site visits may also be made if required).
b. On the basis of identified CSR activities / projects, the Annual CSR Plan shall be prepared by the CSR departments of the Units in advance.
c. The Annual Plan shall be scrutinized and examined by the respective Unit – CSR Committee. The Annual Plan recommended by the Unit – CSR Committee would then be put up for recommendation of the subsequent level(s) of authorities as per due procedure. The Annual Plan finalized at the Plant/Unit level shall then be sent to Corporate CSR.
d. After moderation, if any and compilation it shall be put up to the CSR Committee as constituted under Section 135(1) of the Companies Act, 2013 and Section 5 of the Companies (CSR) Rules, 2014.
e. The CSR Committee shall consider and recommend the comprehensive Annual Plan to the HCL Board for its approval. Attempts shall be made to complete the process before commencement of the next financial year.
f. The plan as approved by the Board shall be communicated to Units for implementation.
g. The CSR Annual Plan may, however, be amended/modified at any time during the financial year as per the procedure detailed above. Units may propose addition / deletion / modification - with proper justification - of project / activity after getting it duly recommended from the respective competent authorities for inclusion / removal from the CSR Plan. On receipt of such proposals, CSR Committee may consider recommending suitable modification in the CSR Plan for approval of the Board.
h. CMD, HCL shall be authorized for reappropriation of projects within the overall financial outlay which may be informed to the Board.
The approved CSR Annual Plan shall form part of this policy.
The CSR activities / projects listed in the approved Annual Plan shall be implemented using internal resources or through collaborating with NGOs / specialized agencies / trusts / institutions / foundations / societies / Government bodies etc. in accordance with the provision of Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014. They may also be undertaken through agencies as defined at Section 4(2) and Section 4(3) of the Companies (CSR) Rules, 2014.
The following shall be the monitoring mechanism in this regard.
a. The CSR Nodal Officers in each Unit shall be responsible for monitoring of CSR activities at every stage on day-to-day basis. They shall keep track of the progress of the CSR activities on a regular basis through status check from implementing agency, site visits etc. and also obtain feedbacks from the targeted beneficiaries.
b. The progress report of CSR activities at Units - in the format prescribed under Companies (CSR Policy) Rules, 2014 - shall be submitted by the Unit CSR Nodal Officers to the Corporate CSR Nodal Officer on a monthly basis which shall then be submitted to the Board’s Sub-Committee on CSR for information.
a. The contents of the CSR Policy shall be disclosed in the Director’s Report forming part of the Company’s Annual Report. It shall also be placed on the Company’s website in the prescribed format. It shall include the following.
(i) A brief outline of the CSR Policy, including overview of projects undertaken and a reference to the web link to the CSR policy and projects.
(ii) Composition of the Board’s Sub-Committee on CSR.
(iii) Average net profit for last three Financial Years and the Prescribed CSR Allocation (Budget).
(iv) The details of amount spent on CSR during the financial year in the prescribed format.
(v) In case HCL fails to spend the 2% of average net profit of the last three FYs or any part thereof, the Report shall disclose reasons for the same.
(vi) A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and policy of the Company.
b. The report would be signed by Director (Personnel) or Chairman of the CSR Committee.
HCL reserves the right to modify, cancel, and / or amend any of the provisions of this policy in accordance to the prevailing statute.
Notwithstanding any clause in this Policy, no action pertaining to CSR activities shall be taken in contravention of the provision of Section 135 of the Companies Act, 2013 and of the Companies (Corporate Social Responsibility Policy) Rules, 2014.
This policy has been framed in compliance to the provisions of Section 135(3)(a) of the Companies Act, 2013 and Section (6) of the Companies (CSR) Rules, 2014 and approved by the Board of Directors in its meeting held on 13/11/2014 based on the recommendations of the Board’s Sub-Committee on CSR in its meeting held on 29/10/2014.
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