CSR Policy

Preamble

Kwality Ltd. defines Corporate Social Responsibility above the philanthropic activities and encompasses all related concepts such as corporate sustainability, business responsibility and corporate citizenship as the way a company balances it’s economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. The Company is in Dairy sector, which is an important primary source of livelihood for Indian rural families. Its main object is to provide rural employment and income generating opportunity particularly for small, marginal farmers and landless labour (men & women).

The Company shall continue to have among its objectives the promotion and growth of community residing in the vicinity of its plants, MCCs etc where it seeks to actively assist to uplift the social economy, standard of living and making this community self-reliant as community living around many of our factories comprises the weakest sections of rural and tribal India with no access to basic amenities. Kwality Ltd. has undertaken social volunteering practices long before the term corporate social responsibility was coined.

The Company has initiated structuring facilities through outsourcing to help the milk producers, who are directly linked in our commercial milk procurement activities. In order to help such farmers increase the productivity of their quality cattle and buffaloes, KDIL has provided, on a principal of no-profit-loss, good quality feed. Attempts are on to provide such other technical inputs as vaccinations, artificial insemination, and free advice on prevention and cure of common diseases.



Members

To meet the above objectives the CSR Committee was constituted by the Board of Directors in their meeting held on November 10, 2013 and comprises of following members:

Mr. Sanjay Dhingra Chairman & Managing Director
Mr. Sidhant Gupta Executive Director
Dr. Rattan Sagar Khanna Independent Director
Dr. Saraswat Member
Mr. Rajinder Singh Member
Mr. Sunit Shangle Member

The Board of Directors delegated to the CSR committee the duties and responsibilities inclusive but not limited to the following:

  • To formulate and recommend a CSR strategy & CSR policy to the Board
  • To Operationalize the institutional mechanism
  • To recommend activities for investment.
  • To develop the project in which the amount is to be invested
  • To recommend the amount of expenditure to be incurred
  • To ensure the minimum amount required by the law is invested/spend.
  • To monitor the policy from time to time.
  • To monitor the implementation mechanism.
  • To examine the alignment with schedule VII of the Companies Act 2013
  • A Business requirement reporting mandated by the SEBI has to be made.
  • To review the past as well as present CSR activities and their alignment.
  • Any other duties and responsibilities recommended by the Board.


  • CSR Policy

    The CSR activities shall be undertaken by the Company, as stated herein i.e in CSR policy, as projects or programs or activities (either new or ongoing), excluding activities undertaken in pursuance of its normal course of business. The Board decides to undertake its CSR activities approved by the committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under Section 8 of the Act or directly through itself or otherwise:
    Provided that –

  • If such trust, society or company is not established by the company or its holding or subsidiary or associate company, it shall have an established track record of three years in undertaking similar programs or projects;
  • The company has specified the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism.

  • The Company will 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 program in accordance with the CSR rules.
    The CSR projects or programs or activities undertaken in India only shall amount to CSR Expenditure. The CSR projects or activities that benefit only the employees of the Company and their families shall not be considered as CSR activities in accordance with Section 135 of the Act.
    Companies will build CSR activities of on their own as well as those of their implementing agencies through Institutions with established track records of at least three financials years but such expenditure shall not exceed five percent of total CSR expenditure of the Company in one financial year.
    Contribution of any amount directly or indirectly to any political party under section 182 of the Act, shall not be considered as CSR activity.


    CSR Activities

    The CSR policy of the company shall, inter-alia, include the following apart from the activities, projects, programs falling within the purview of the Schedule VII of the Act (Annexed as ‘Annexure -A’), namely :

  • Medical and health welfare facilities for the villagers including their animals.
  • Initiative in education especially for girl child including contributions for schools, scholarships or grants for higher education etc. 
  • Empowerment of the women of the village by forming Women Self Help Group and taking steps in providing them training in vocational activities, carrying out micro business activities etc. including educating them on women and child welfare, cleanliness and financial inclusion.
  • Helping the villagers in getting loans for animals, vehicles or even construction of pucca houses loan by tying up with banks.
  • Covering insurances of the villagers including medical, personal accident and animal insurance
  • Acting as an agent for villagers to help them in getting the benefits in the form of subsidies etc. from State and Central Government schemes for rural upliftment.
  • Other activities for the upliftment, providing education and employment and welfare of the villagers.

  • The CSR initiative may include the above mentioned activities but would not be restricted to the same. The CSR committee shall also monitor the process of such activities, projects or programs. The CSR Policy of the Company shall specify that the surplus arising out of the CSR projects, programs or activities shall not form part of the business profit of the company.

    Provided that the CSR activities does not include the activities undertaken in pursuance of normal course of business of the Company.

    Provided further that the Board of Directors shall ensure that activities included by a company in its Corporate Social Responsibility Policy are related to the activities included in Schedule VII of the Act.



    CSR Expenditure

    CSR Expenditure shall include all expenditure including contribution to corpus, for projects, 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 purview of Schedule VII of the Act.



    CSR Reporting

    The Board’s Report covered under these rules pertaining to a financial year commencing on an after 1st day of April, 2014 shall include an annual report on CSR containing particulars specified in Annexure ‘annexed herewith.



    Display of CSR activities on its website:

    The Board of Directors of the Company shall, after taking into account the recommendations of CSR Committee, approve the CSR policy for the Company and disclose contents of such policy in its report and the same shall be displayed on the Company’s website, if any, as per the particulars specified in the Annexure ‘B’ annexed herewith.