CSR Policy
INTRODUCTION
Creating a positive impact
Elcom is committed to Corporate Social Responsibility (CSR). We believe that businesses have a responsibility to give back to the communities in which they operate. Our CSR policy is aligned with the Companies Act, 2013, and we are committed to spending 2% of our annual net profits on CSR activities.
Our Philosophy & Vision
Elcom International Pvt. Ltd. (EIPL) recognizes that the business organizations are economic organs of society & Company’s performance must be measured by its contribution to building economic, social & environmental capital.
Corporate Social Responsibility (CSR) is strongly connected with the principle that an organization should make decisions based not only on financial factors; but also on the social consequences. Therefore, it shall be the core corporate responsibility of EIPL to practice its corporate values through its commitment to grow in a socially and environmentally responsible way.
EIPL recognizes that its business activities have a wide impact on the society in which it operates. The Company shall endeavor to make CSR a key business process for sustainable development. EIPL is responsible to continually enhance shareholder’s wealth. EIPL is also committed to its other stakeholders to conduct its business in an accountable manner that creates a sustainable positive impact on society.
Keeping in line with section 135 of the Companies Act, 2013; the Board of Directors of EIPL Shall be responsible to
- Suggest the Areas of operations for CSR
- Monitor the CSR spending each year
CSR Programs
Keeping in the line with Section 135 & Schedule VII of the Companies Act, 2013, EIPL shall endeavor to identify and focus on the following areas for CST expenditure
- Basic Health
- Education
- Social Security
- Road Safety
- Cleanliness
- Skill Development
- Any other areas included in Schedule VII of the Companies Act, 2013 not specified above.
CSR Spend
The Companies Act, 2013 prescribes that the companies which meet the criteria specified u/s 135 shall allocate certain portion of its annual net profits (calculated as per Sec. 198) at present 2% during the three immediately preceding financial years to be spent on CSR Activities that fall under the categories specified under Schedule VII of the Act.
CSR Expenditure
Net profit for the purpose of allocation towards CSR means profit more fully described under Rule 2(f) of the CST Rules. The CSR expenditure shall include all expenditure including contribution to corpus or on projects or programs relating to CSR activities recommended and approved by the Board of Directors but does not include any expenditure on an item not in conformity or not in line with activities stated under Schedule VII of the Act.
Failure to spend the CST Money
If the Company fails to spend the required amount in a particular financial year, it is the duty to submit a report in writing specifying the reasons for not spending the amount, which in turn shall be reported by the Board of Directors in their Annual Report pertaining to that particular Financial Year.
Implementation & Governance of CSR Programs
EIPL shall be committed to implement & govern CSR programs in the following manner.
- To implement CSR programs through Company personnel or through external implementing agencies.
Every year, the Board would approve a CSR plan to be carried out during the financial year and the specified budgets thereof. - The Board of Directors will assign the task of implementation of CST plan within specified budgets and time frames to such persons or bodies as it may deem fit.
- The persons/bodies to which in implementation is assigned will carry out CSR programs as per directions of the Board of Directors.
- At the end of every financial year, the Board of Directors will review the CSR spending.
Disclosures
The Board report will include an Annual Report on the CSR activities in the format specified under the CSR Rules.
Any changes in the CSR Policy arising out of statutory amendments will be reviewed and approved by the Board. Any other internal changes will also be reviewed by the Board.
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