ಕೃಷ್ಣಾ ಭಾಗ್ಯ ಜಲ ನಿಗಮ ನಿಯಮಿತ
ಸಾಂಸ್ಥಿಕ ಸಾಮಾಜಿಕ ಹೊಣೆಗಾರಿಕೆ ಕಾರ್ಯನೀತಿ
KRISHNA BHAGYA JALA NIGAM LIMITED
CORPORATE SOCIAL RESPONSIBLITY POLICY
- Corporate Social Responsibility (CSR) is a Company’s commitment to its stakeholders to conduct business in an economically, socially and environmentally sustainable manner that is transparent and ethical.
Stakeholders of Krishna Bhagya Jala Nigam Limited. (KBJNL) include persons directly impacted by the activities of employees, Government and non-Government organisations, local communities and their public representatives, Gram Sabhas and Panchayati Raj Institutions (PRIs) and society at large.
- KBJNL, a Government of Karnataka Company, is one of the largest Irrigation Infrastructure Company in Karnataka.
- The Companies Act, 2013 was notified in September, 2013. Section 135, which deals with the CSR Activities, has been made effective w.e.f. 1st April, 2014. The CSR Rules have also been effective w.e.f. 1st April, 2014. The CSR Policy of the Nigam is framed in the manner compliant with the Companies Act 2013 and the corresponding Rules.
- ACTIVITIES TO BE UNDERTAKEN UNDER CSR:
- The activities proposed to be undertaken under CSR shall include the activities mentioned in Schedule VII mentioned in Section 135 (3) (a) of the Companies Act, 2013. (Henceforth, the Companies Act, 2013 will be referred to as the ‘Act 2013’).
- The Nigam will give preference to the stakeholders directly impacted by its operation for CSR activities. Since such stakeholders are generally located in the periphery of the projects of the Nigam, KBJNL will accord priority for CSR activities in the local areas and neighbourhood areas and its operations.
- The Company will take into account its commitment to its stakeholders while selecting CSR activities provided such activities qualify as CSR activities under the Act, 2013.
- Priority will also be accorded for CSR activities in the districts of Northern Karnataka where the projects of the KBJNL are situated.
- The CSR activities will be undertaken as projects or programs or activities.
- However, the following activities will not be considered as CSR activities :
- Activities undertaken in pursuance of normal course of business of the Nigam.
- Activities that benefit only the employees of the Nigam.
- Activities taken up under R&R.
- Contribution of any amount directly or indirectly to any political party.
- Activities which the Board considers ad hoc and philanthropic in nature.
- Any activity not approved by the Board or CSR Committee.
- Administrative Setup :
3.1 Role of the Board of Directors :
(i) The Board Shall constitute a CSR Committee consisting of three or more Directors, out of which at least one Director shall be Independent Director.
(ii) Approve the CSR Policy for the Nigam.
(iii) Disclose the contents of the Nigam CSR Policy in the Report of the Board of Directors.
(iv) Ensure placing of the contents of the Nigam CSR Policy on the website of the Nigam.
(v) Ensure that the CSR Policy is implemented.
(vi) Approve the methodology proposed by the CSR Committee for transparent monitoring the progress of implementation of the CSR activities.
- Ensure that the Nigam spends annually at least two percent of the average net profit made during the three immediately preceding financial years on CSR Policy. [Average Net Profit must be calculated as provided for in Section 198 of the Act, 2013].
- Disclose the composition of the CSR Committee in Report of the Board of Directors.
- Make a mention in detail about the CSR policy and its implementation during the year in the Report of the Board of Directors.
- When the Nigam fails to spend the specified amount for CSR activities as prescribed above from the net profits, the Board must specify the reasons for inability to spend the said sum, in the above mentioned Report of the Board of Directors.
- The Board may delegate powers to the CSR Committee for ensuring implementation of the CSR Policy as it deems necessary,
3.2 Role of CSR Committee :
- Formulate and recommend to the Board, a CSR Policy.
- Indicate the activities to be undertaken by the Nigam as specified in Schedule VII.
- The CSR Committee may get a need assessment done for CSR project / program / activity through survey / study by in-house experts or by external agency. Further, recommendations of State / District Administration / Panchayat Raj Institutions, Water Resources Department of Government of Karnataka and other stakeholders may be considered for undertaking activities / projects under CSR. On identifying the requirement of the community, a project will be prepared indicating the need for community development activity, time-frame of implementation, action plan, budget requirement etc. Long-term projects shall be broken into medium and short-term plans and annual plans.
- Based on the Net Profits of the Nigam, recommend the amount of expenditure to be incurred on the CSR as per provisions of the Act.
- Approve the projects and programs to be undertaken by the Nigam in pursuance of the approved CSR Policy.
- Mode of Execution of CSR Activities :
- The CSR activities shall preferably be implemented in project mode. The implementation of various activities will be normally done by following transparent procedure as prescribed in the Karnataka Transparency of Public Procurement Act, 1999 and Rules thereunder.
- The Nigam may collaborate with other Corporations / Companies / Karnataka PSUs for undertaking projects or programs or CSR activities. [However, CSR Committees of respective PSEs / Companies should be in a position to report separately on such projects or programs in accordance with the Companies (CSR) Rules].
- As a matter of policy, the communities intended to be benefitted shall be consulted and closely involved in the process of identifying, planning and implementation of the CSR activities. Wherever possible, the local authorities and specialised agencies may also be similarly consulted and involved.
- Monitoring of CSR Activities :
- The CSR Committee will be responsible for setting up a transparent monitoring system of the CSR activities of the Nigam.
- The Board may be kept informed regarding the progress in implementation of CSR Policy and activities.
- Reporting :
- The Board’s report on CSR activities pertaining to a financial year commencing on 1st Day of April shall include an annual report on CSR containing particulars specified in the Companies (CSR) Rules.
- The Board shall disclose the contents of the CSR Policy in its Report and also have the same placed on the website of the Nigam as per the particulars specified in the Annexure to the Rules.
- If the Nigam fails to spend the specified amount from the net profits for CSR activities as prescribed in the Act, the Board must specify the reasons for inability to spend the said sum in the above mentioned Report of the Board of Directors.
6.2 Role of the CSR Committee :
(i) The CSR Committee will submit reports on implementation of CSR Policy to the Board of Directors as directed by the Board.
7.0 Funding of CSR activities :
- The Nigam will be required to spend annually at least two percent of the average net profit made during the three immediately preceding financial years on CSR Policy. [Average Net Profit must be calculated as provided for in Section 198 of the Act, 2013].
- Expenditure on building CSR capacity of personnel of Nigam as well as implementing agencies through institutions with established track records of at least three financial years shall be considered as valid CSR expenditure. However, such expenditure shall not exceed five percent of total CSR expenditure of the Nigam in one financial year.
- Any surplus funds arising out of CSR projects or programs or activities shall not form part of the business of the Nigam. The CSR Committee may recommend for approval of the Board schemes for utilising such funds for CSR activities.
- All expenditure incurred on the activities involved in the need assessment / baseline study, planning, implementation, monitoring and impact assessment of the projects will be included in the CSR expenditure. However, sincere efforts should be made to keep such expenditure at optimum levels.
- CSR expenditure shall include all expenditure including contribution to corpus for projects or programs relating to CSR activities approved by the Board on recommendation of its CSR Committee, but do not include any expenditure on item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Act.
8.1 This policy shall stand modified by the provisions of the Companies Act / Companies (CSR) Rules as amended from time to time and Government guidelines as and when these are in place and made enforceable.
- This policy would serve as the referral document for planning and selection of CSR activities, though, whenever in doubt, cross reference to Companies Act & Companies (CSR) Rules is advised to avoid any inconsistency with the latter.
- The power to modify / amend the CSR Policy will rest with the Board of Directors.
- The Managing Director will be responsible for framing the Rules in accordance with and in furtherance of the CSR Policy, as approved and as amended by the Board from time to time and also for the overall implementation of the CSR Policy in KBJNL.