CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) 

Corporate social responsibility (CSR) is a business model that helps a company be socially accountable—to itself and the public. By practicing corporate social responsibility, also called corporate citizenship. companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental in line with the requirement under the Sec.135 of the Companies Act 2013 and to engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them. Kerala State Beverages Corporation (KSBC) The greatest contributor to the state exchequer is keen on discharging its Corporate Social Responsibilities, which can be understood from the number of CSR proposals approved for funding.

CORPORATE SOCIAL RESPONSIBILITY POLICY (CSR POLICY) OF KERALA STATE BEVERAGES (M&M) CORPORATION LIMITED

• Title and applicability
• The document describes the Corporate Social Responsibility Policy (“CSR policy”) of Kerala State Beverages M&M Corporation Ltd. (“KSBC” or “the company”). It includes KSBC’s vision, mission and other relevant attributes of Corporate Social Responsibility.
• The CSR policy shall be guided by KSBC’s corporate philosophy of respect for the individual and the society at large.
• The CSR policy has been formulated in accordance with Section 135 of the Companies Act 2013 and the CSR Rules 2014 and the relevant amendments / notifications / circulars.
• The CSR policy shall apply to all CSR programs of KSBC

• Vision and Mission

KSBC is committed to provide financial assistance for proposals contributing to the welfare of society, by supporting causes in various fields, including healthcare, promoting education, providing drinking water, welfare of differently abled, promoting sports and other rural development activities.
In pursuance of our vision,  KSBC desires to be a ‘Company for government and society”,  we are dedicated towards fulfilling the social objectives through various CSR activities. The Company shall make its endeavour to positively impact and influence the Society, for its sustainable development.

• 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.
KSBC’s 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. KSBC’s CSR Policy has been created with the purpose to outline its CSR focus areas, review mechanism, execution process and reporting mechanism.

• Responsibility of the Board of Directors

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

• To approve the CSR Policy & disclose the contents of such policy in its report and also place it on the Company’s website;
• Ensure that the activities proposed in the CSR Policy are undertaken;
• Ensure that as far as possible, 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;

• CSR Committee

5.1.     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.
The Board of Directors shall be empowered to take decision for making or effecting changes in the constitution of the CSR Committee.
The composition of CSR Committee shall be disclosed in the Board of Directors’ Report.
5.2.     Responsibilities of the CSR Committee

• To formulate & recommend to the Board of Directors, a CSR Policy indicating the activities to be undertaken as specified in Schedule VII of the Companies Act, 2013 and modify / amend the same as required;
• To develop and institutionalize a CSR reporting mechanism in line with Section 135 and Rule 8 of the Companies Act 2013;
• To ensure that KSBC corporate website displays the approved CSR policy of the company
• To monitor the CSR Policy, Projects and Programs from time to time.

5.3.     Meetings of CSR Committee
The CSR Committee shall meet at least once in six months. The meeting shall be held either at the registered office of the company or any other place, as may be decided by the members.
Physical presence of a minimum of two members of the committee shall constitute the quorum.
5.4.     Notice of Meeting
At least three days advance notice of every meeting, specifying the day, place and timing of Meeting and the general nature of the business to be transacted there at shall be given to the members. In case of urgency, a meeting may be convened by shorter notice.

• Areas of CSR Activities

The Company is hereby devoted to direct its CSR resources, to a reasonable extent, for improving the quality of life of the people by focusing on the social causes, including but not limited to the following areas:

• Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation, including contribution to various missions and agencies constituted by the State Government for the promotion of such activities and making available safe drinking water;
• Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
• 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;
• 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 Fundset-up by the Central Government for rejuvenation of river Ganga;
• 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;
• Measures for the benefit of armed forces veterans, war widows and their dependents;
• Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports;
• 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, and other backward classes, minorities and women;
• Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
• Rural Development Projects; and
• Slum area development
• Activities related to promotion of road safetyas suggested vide General Circular No. 21/2014 dated 18.06.2014 issued by Ministry of Corporate Affairs

EXCLUSIONS:
Following activities shall be excluded from the CSR expenditure of KSBC:

• Activities which are exclusively for the benefit of employees of the company or their family members even if commixing under the above categories;
• Activities undertaken in pursuance of normal course of business of the Company;
• Direct or indirect contribution to political parties;
• Expenditure on item/s not in conformity with Schedule VII of the Companies Act 2013;
• 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.
• Projects relating to construction of roads, culverts and similar works for which budget provision is available in the Government Budget.

• Geographies and beneficiaries

7.1.     Geographies
KSBC will give first preference to the projects and proposals within the state of Kerala for spending the amount earmarked for CSR activities.
7.2.    Beneficiaries
The beneficiaries of KSBC’s CSR programs may be the following categories of people:

• Children/students
• Women
• Weaker sections of the society
• Others – society at large
• Implementation mechanism

Due to lack of expertise in CSR project implementation, the company would provide fund for implementation for various eligible activities proposed and approved by Government department/certifies registered trusts, societies and / or section 8 (previously section 25) companies with an established track record of at least one year in carrying on activities in the related areas or as suggested by Ministry of Corporate Affairs vide circulars/notifications.
The Company may also take up such projects for direct implementation if found necessary.
The company may also 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 of CSR Expenditure 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 as given below:

• Monitoring of CSR programs

The KSBC shall obtain necessary reports and certificates with regard to the implementation of CSR programs funded by KSBC on a periodical basis. On-site physical verification and monitoring would also be undertaken at least once a year if necessary 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