CSR PROVISION
Section 135.
Corporate Social Responsibility
(1)
Every company having net worth of rupees 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
any financial year shall constitute a Corporate Social Responsibility Committee
of the
Board
consisting of three or more directors, out of which at least one director shall
be an
independent
director.
(2)
The Board's report under sub-section (3) of section 134 shall disclose
the
composition
of the Corporate Social Responsibility Committee.
(3)
The Corporate Social Responsibility Committee shall,—
(a)
formulate and recommend to the Board, a Corporate Social Responsibility
Policy
which shall indicate the activities to be undertaken by the company as
specified
in Schedule VII;
(b)
recommend the amount of expenditure to be incurred on the activities referred
to
in clause (a); and
(c)
monitor the Corporate Social Responsibility Policy of the company from time
to
time.
(4)
The Board of every company referred to in sub-section (1) shall,—
(a)
after taking into account the recommendations made by the Corporate Social
Responsibility
Committee, approve the Corporate Social Responsibility Policy for the
company
and disclose contents of such Policy in its report and also place it on the
company's
website, if any, in such manner as may be prescribed; and
(b)
ensure that the activities as are included in Corporate Social Responsibility
Policy
of the company are undertaken by the company.
(5)
The Board of every company referred to in sub-section (1), shall ensure
that the
company
spends, in every financial year, at least two per cent. of the average net
profits of
the
company made during the three immediately preceding financial years, in
pursuance of
its
Corporate Social Responsibility Policy:
Provided
that the company shall give preference to the local area and areas around it
where
it operates, for spending the amount earmarked for Corporate Social
Responsibility
activities:
Provided
further that if the company fails to spend such amount, the Board shall, in its
report
made under clause (o) of sub-section (3) of section 134, specify
the reasons for not
spending
the amount.
Explanation.—For
the purposes of this section “average net profit” shall be calculated
in
accordance with the provisions of section 198.
CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY
This Policy is called “Corporate Social Responsibility Policy” (“Policy”) and will be applicable to the Company from 13th February, 2015
SCOPE
The Company in the initial phase will focus on the following areas for CSR projects from amongst the activities specified under Schedule VII of the Companies Act, 2013 (Act):
i. Rural development projects,
ii. Promoting education, including special education and employment enhancing skills especially among children, women and the differently abled and livelihood enhancement projects,
iii. Contributing funds to technology incubators located within academic institutions which are approved by the Central Government.
POLICY
The Board shall constitute a CSR Committee in accordance with the Act. The Committee shall formulate and submit to the Board the policy for consideration and approval, recommend the CSR activities the Company may undertake in accordance with those listed in Schedule VII of the Act and the likely amount of expenditure associated with the activities.
The Board shall, with due attention to Section 135 of the Act for selection of any project, environmental impact, cost, timelines, sustainability, and other relevant factors,
- Consider and approve the policy formulated by the CSR Committee, subject to necessary changes/modifications as the Board may deem fit.
- Monitor effective utilisation of funds provided by the Company for CSR activities through appropriate checks and balances.
CSR CALCULATION SHEET
| Particulars |
|
2015-16 |
2014-15 |
2013-14 |
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| Total Revenues of the company |
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| Less: Extraordinary Income, if included in total revenue |
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| Profit from premium of shares/Debentures |
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| Profit from sales of Forfeited shares |
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| Profit in terms of capital natures (in terms of undertaking of company or any part of thereof) |
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| Profit from the sale of immovable property/fixed assets/any capital nature |
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| Any surplus change in carrying amount of an assets or liability recognized in equity reserves. |
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| Total Revenue after extraordinary Income |
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| Less: Total Operating expenditure including operating expenses (i.e. Raw material, wages, stock adjustments, selling and admin expenses) |
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| Operating Profit |
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| Less: Interest |
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| Profit before depreciation and tax |
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| Less: depreciation |
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| Profit before tax |
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| Add back if already included in total expenditure |
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| Income tax and any other tax or income |
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| Compensation, damages or other payments made voluntarily |
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| Loss of capital natures including loss on sale of undertaking of company or any part of thereof |
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| Any transfer to assets/liabilities revaluation reserves |
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| Net Profit according to Section 198 |
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| Average Profits |
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| CSR Budget ( 2% of average profits) |
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DEDUCTION TO BE MADE
| Sr. No. |
Deduction to be Made |
2015-16 |
2014-15 |
2013-14 |
| 1 |
Usual working charges |
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| 2 |
Directors Remuneration |
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| 3 |
Bonus or Commission |
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| 4 |
Any tax in the Nature of a Tax on abnormal or excess profits |
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| 5 |
Any tax imposed for special reasons |
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| 6 |
Interest on debentures issued by co. |
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| 7 |
Interest on mortgages executed and on loans secured by a charge |
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| 8 |
Revenue expenses on repairs |
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| 9 |
Outgoings inclusive of contributions under section 181 i.e to bonafide charitable and other funds |
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| 10 |
Excess of expenditure over income in previous years computed as per this section |
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| 11 |
Compensations/damages paid in virtue of legal liability |
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| 12 |
Insurance premium |
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| 13 |
Bad debts written off or adjusted |
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PAT AFTER ALL EXPENSES
|
Particulars |
2015-16 |
2014-15 |
2013-14 |
| Net Profit After Tax |
|
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| Add: |
Profit on sale of immovable property (original cost – WDV) |
|
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| Less: |
Premium on sale of forfeited shares, debentures |
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Profit on sale of immovable property (sale consideration – original cost ) |
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Surplus in p/l on measurement of Assets & Liabilities |
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| Less: |
Expenses Allowed |
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Usual working charges including |
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Ø Director’s Remuneration |
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Ø Bonus or commission paid to staff |
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Ø Tax on abnormal profits |
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Ø Tax on business profits imposed for special reasons |
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Ø Interest on debentures, loans |
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Ø Repair expenses other than capital expenditure |
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Ø Contribution to charitable trusts u/s 181 |
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Ø Depreciation |
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Ø Prior Period items |
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Ø Legal liability for compensation |
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Ø Insurance expenses |
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| Add: |
Expenses Disallowed |
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Ø Income tax |
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Ø Compensation made voluntarily |
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Ø Capital loss on sale of undertaking (not being losses on sale of assets) |
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TOTAL |
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Thanks & Regards,
CS Meetesh Shiroya
