Corporate Social Responsibility (CSR) Policy

  • Preface

    RIECO Industries Limited (“RIECO” or “the Company”) is committed to improve the lives of the society in which it operates. The Company strives to create a positive impact on the communities it serves and on the environment. The Company is committed not just to profits, but also towards leaving a deeper imprint on the society as a whole. We understand that there is a need to strike a balance between the overall objectives of achieving corporate excellence vis- à-vis the company’s responsibilities towards the community.

  • Objective

    The objective of the policy is to actively contribute to the social, environmental and economic development of the society in which we operate.

  • Definitions

    The terms defined in this Corporate Social Responsibility (“CSR”) Policy shall have the meanings herein specified and terms not defined shall have the meanings as defined in the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014, including any statutory modifications or re-enactments thereof.

    • “Act” means the Companies Act, 2013 including any statutory modification or re-enactment thereof.
    • “Associate Company” in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
      Significant influence means control of at least 20% (Twenty per cent) of total voting power, or control of or participation in business decisions under the agreement.
    • “Average Net Profit” means profit calculated as per Section 198 of the Companies Act, 2013, and Rules made thereunder.
    • “Board” means the Board of Directors of the Company
    • “Board’s Report” shall mean report of the Board of Directors prepared in accordance with section 134(3) of the Companies Act, 2013, and Rules made thereunder.
    • “Company” means RIECO Industries Limited
    • “CSR” means Corporate Social Responsibility.
    • “CSR activities” means the activities or projects or programs as recommended by the CSR Committee and approved by the Board, undertaken by the Company from time to time in any one or more of the areas falling under the Schedule VII to the Companies Act, 2013
    • “CSR Committee” means the Committee of the Board constituted under section 135 of the Companies Act, 2013, and Rules made thereunder, for the purpose of administration of CSR activities, supervising the adherence of this CSR Policy and the matter incidental thereto.
    • “CSR Policy” means the Corporate Social Responsibility Policy as set out herein and as amended or modified from time to time.
    • “CSR Rules” means Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.
    • “Independent Director” means a non-executive director of the Company within the meaning of section 2(47) and 149 of the Companies Act, 2013 and Rules made thereunder.
    • “Holding Company” means a Company within the meaning of section 2(46) of the Companies Act, 2013, and Rules made thereunder.
    • "Net profit" means the net profit of the Company as per its financial statement prepared in accordance with the applicable provisions of the Act but shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of Section 198 of the Act.
    • “Subsidiary Company” means a Company within the meaning of section 2(87) of the Companies Act, 2013 and Rules made thereunder.
    • The Company shall undertake the activities (either new or ongoing) as recommended by the CSR committee and approved by the Board in accordance with the provisions of Section 135 of the Companies Act, 2013 read with Schedule VII and CSR Rules.
      • Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation 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 centers 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 Fund set-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, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows ;
      • Training to promote rural sports, nationally recognized sports, paralymic sports and olympic sports;
      • Contribution to the Prime Minister’s National Relief Fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Page 5 of 7 Fund (PM CARES Fund) or any other fund set up by the Central Government for socio-economic development and relief and welfare of the scheduled castes, tribes, other backward classes, minorities and women;
      • (i) Contributions to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
        (ii) Contribution to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs);
      • Rural development projects
      • Slum area development (The term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.
      • Disaster management, including relief, rehabilitation and reconstruction activities
    • The CSR activities (either new or ongoing) shall be undertaken by the Company in accordance with this policy.
    • Subject to the provisions of section 135(5) of the Act, the CSR projects or programs or activities undertaken in India only shall qualify for CSR expenditure.
    • The CSR programs or projects or activities that benefit only the employees of the Company and their families shall not be considered as CSR activities in accordance with the Act.
    • Contribution of any amount directly or indirectly to any political party under section 182 of the Act shall not be considered as CSR activity
    • Companies may build CSR capacities of their own personnel as well as those of their implementing agencies through Institutions with established track records of at least three financial years but such expenditure including expenditure on administrative overheads shall not exceed five percent of total CSR expenditure of the company in one financial year.

    Any surplus arising out of the CSR projects or programs or activities shall not form part of the business profit of a company

    • As per the provisions of Companies Act, 2013, the Board shall ensure that the Company spends in every financial year, at least 2% (Two per cent) of the average net profits of the Company made during the three immediately preceding financial years.
    • CSR Committee shall recommend the amount of expenditure project wise to be incurred annually to the Board for its consideration and approval.
    • CSR expenditure shall include all expenditure including contribution to corpus, for projects or programs relating to CSR activities approved by the Board on the recommendation of its CSR Committee, but does not include any expenditure on an item not in conformity or not in line with activities which fall within the areas or subjects specified in Schedule VII of the Act.
    • Any amount remaining unspent as per the CSR Policy, such amount shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.
    • If the company spends an amount in excess of the requirements provided under this sub-section, such company may set off such excess amount against the requirement to spend under this sub-section for such number of succeeding financial years and in such manner, as may be prescribed.
    • The Board may decide to undertake its CSR activities approved by the CSR Committee through
      • a company established under Section 8 of the Act or a registered trust or a registered society, established by the company, either singly or alongwith any other company, or
      • a company established under Section 8 of the Act or a registered trust or a registered society, established by the Central Government or State Government or any entity established under an Act of Parliament or a State Legislature
        (Provided that- if, the Board of a company decides to undertake its CSR activities through a company established under section 8 of the Act or a registered trust or a registered society, other than those specified in this sub-rule, such company or trust or society shall have an established track record of three years in undertaking similar programs or projects; and the company has specified the projects or programs to be undertaken, the modalities of utilisation of funds of such projects and programs and the monitoring and reporting mechanism”. A company may also collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR Committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules.)

    CSR Committee shall monitor periodically the implementation of the projects / programs / activities undertaken by the Company and report to the Board on a regular basis the progress of CSR activities.


    The Board's report shall include the following particulars:

    • A brief outline of the company's CSR Policy, including overview of projects or programs proposed to be undertaken and a reference to the web- link, if any, to the CSR policy and projects or programs;
    • The composition of the CSR Committee;
    • Average net profit of the company for last three financial years;
    • Prescribed CSR Expenditure (2% of the amount of the net profit for the last 3 financial years);
    • Details of CSR spent during the financial year;
    • In case the company has failed to spend 2% of the average net profit of the last three financial years, reasons thereof;
    • A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.
    • CSR Policy is subject to revision/amendment in accordance with the guidelines as may be issued by the Government, from time to time.
    • The Board may review the policy from time to time based on changing needs and aspirations of the target beneficiaries and make suitable modifications, as may be necessary.
    Policy approved by the Board Board Meeting held on 22nd January, 2021
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