CSR Policy

CORPORATE SOCIAL RESPONSIBILITY POLICY

[IN TERMS OF SECTION 135 OF THE COMPANIES ACT, 2013 READ WITH CORPORATE SOCIAL RESPONSIBILITY POLICY RULES, 2014]

1. INTRODUCTION

The Company has developed its CSR Policy in accordance with Section 135 of the Companies Act 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014 notified by the Ministry of Corporate Affairs, Government of India. This Policy, henceforth called “ETPL CSR Policy”, underlines the guiding principles and mechanisms for undertaking various CSR activities/ programs by the Company.

2. VISION STATEMENT & CSR PHILOSOPHY

ESENNAR TRANSFORMERS aims and believes in Quality Culture and Distinguishes itself as one of the Market leader in Design, Manufacturing and Supply of High quality Transformers with a strong commitment to enhance customer satisfaction through continual improvement of quality systems and performance of employees to achieve excellent business results.

3. OBJECTIVES

The objectives of the ETPL CSR Policy are to:

• Contribution to activities that is beneficial to the society and community at large.
• Engage with the Company’s key stakeholders in matters related to CSR activities.
• Handling Corporate Social Responsibility program for the company
• Initiating and monitoring progress of community initiatives
• Evaluating the progress of community initiatives.

4. CSR COMMITTEE

In compliance with the requirements of Section 135 (1) of the Act, the Company shall constitute a CSR Company with a minimum of 2 directors. The Committee shall meet at least twice a year.

In line with the CSR Rules framed thereunder, the CSR Committee shall be responsible to the Board for—

1. Formulating the CSR Policy and proposing revisions as and when required subject to the approval of the Board of Directors;
2. Recommending CSR projects in appropriation with the thematic areas in pursuance and as specified in Schedule VII and investments to be incurred thereof;
3. Identifying and recommending CSR project life cycle management process including identification and recommendation of appropriate implementation agency, as applicable;
4. Institutionalizing transparent and effective monitoring mechanism;
5. Monitor progress of the CSR projects on a regular basis;
6. Identify the need and review outcomes of such impact assessment studies;
7. Formulate, recommend and modify/ alter whenever necessary, the Annual Action Plan;
8. Report to the Board, the status of CSR activities and contributions made etc.; and
9. Any other activity(ies)/functions, as may be assigned by the Board.

5. CSR IMPLEMENTATION

6. CSR BUDGET

The amount towards CSR will be approved by the Board upon the recommendation of the CSR Committee.

7. CSR ACTIVITIES

1. The Company’s thrust on being socially responsible entity; it will continue to engage in those areas that strengthen the CSR philosophy of the company, which will help in sustainable development of the Country and bring Social, Environmental and Economic balance in the area in which the company operates.
2. The CSR projects are broadly categorized under the following thematic areas as:
   • Education
   • Health
   • Women Empowerment
   • Environment
   • Community Development
   • Housing
   • Skill Training
   • Youth empowerment

8. Annual Action Plan:

The CSR Committee shall formulate and recommend to the Board, an Annual Action Plan. The Board may alter the Annual Action Plan at any time during a financial year, as per the recommendation of the CSR Committee, based on the reasonable justification to that effect. Annual Action Plan shall include the following:

• the list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII to the Act;
• the manner of execution of such projects or programmes as specified in the Rules;
• the modalities of utilization of funds and implementation schedules for the projects or programmes;
• monitoring and reporting mechanism for the projects or programmes; and
• details of need and impact assessment, if any, for the projects undertaken by the Company.

9. UNDERTAKING CSR ACTIVITIES IN PROJECT MODE:

The CSR activities identified by the CSR Committee and approved by the Board shall be implemented in a project mode either directly or through implementing agency(ies),

10. ENGAGEMENT OF PROFESSIONALS/CONSULTING ORGANIZATIONS:

The Company may engage Professionals or Consulting Organizations for designing, monitoring and evaluation of the CSR activities as per the CSR policy as well as for capacity building of its own personnel for CSR.

11. ADMINISTRATIVE OVERHEADS:

The Board shall ensure that the Administrative Overheads shall not exceed 5% of total CSR expenditure of the Company for the financial year.

12. IMPACT ASSESMENT

The Company shall undertake impact assessment, through an independent agency, of its CSR projects having outlays of Rupees one crore or more, and which have been completed not less than one year before undertaking the impact study.

The impact assessment reports shall be placed before the Board and shall be annexed to the annual report on CSR.

13. COST OF IMPACT ASSESSMENT:

The Company may incur an amount up to 5% of the total CSR expenditure for that financial year or Rupees fifty lakh, whichever is less and the same shall be considered as CSR expenditure for that financial year.

14. MONITORING & EVALUATION FRAMEWORK

The CSR Committee will ensure a transparent monitoring mechanism for ensuring effective implementation of the CSR activities proposed to be undertaken by the Company.

The CSR Committee will ensure that the CSR activities are undertaken in compliance with this CSR Policy and in a project or programme mode with clearly defined project deliverables, implementation schedules, processes and budgets as given in the Annual Action Plan.

The CSR Committee will monitor the projects and programmes to ensure that they are being carried out in compliance with this CSR Policy and the Act. The CSR Committee shall also apprise to the Board of Directors about the progress of CSR project/ programmes/ activities including expenditure incurred by the implementing agency(ies) till the allocated budget is fully utilized.

In case of the Ongoing Project(s), the Board shall monitor the implementation of the project with reference to the approved timelines and year-wise allocation and shall be competent to make modifications, if any, for smooth implementation of the project within the overall permissible time period.

The Board shall satisfy itself that the funds so disbursed have been utilized for the purposes and in the manner as approved by it and the Chief Financial Officer shall certify to the effect.

15. CAPACITY BUILDING

The Company may build CSR capacities by providing suitable training to its own personnel as well as those of implementing agencies through recognized institutions.

16. DISCLOSURES

The CSR Committee shall prepare an annual report on CSR, in the format prescribed under the Act and such report shall be included in the Board’s report annexed to the financial statements. The report shall be signed by the Chairman of the CSR Committee and Managing Director of the Company.

The Company shall host the contents of the CSR Policy on its website, if any, in such manner as may be prescribed.