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CSR POLICY

DETAILS OF CORPORATE SOCIAL RESPONSIBILITY POLICY

1

Santhosh Kumar Rai Boliyar

Chairman

2

G.Sheela

Member

3

Shobha.H.V

Member

 

Corporate Social Responsibility Policy

 

 1.Introduction:

 

The Mysore Electrical Industries Limited (“The MEI”) (“Company”), established in the year 1945, is the first among the pioneers for having brought switchgear in India. Seven decades ago, The MEI engaged itself in the manufacturing of High-Quality Switchgear, Motor Control Gears and Solid-State Electronic Relays and Instrument Transformers used in switchgear and other Industrial Applications.

Being a public sector undertaking of the Government of Karnataka, Today, The MEI provides a wide range of contemporary high-calibre electrical equipment with extensive areas of application and is a leading national and international supplier in countries including Australia, Singapore, United Arab Emirates, Ceylon, Burma and many others.

The Company has evolved to carve a niche for itself in the electronics market and has succeeded time and again in achieving exemplary growth and upholding their brand worthiness.

The vision of the Company envisages primarily in Research and Development activities to keep ahead of time owing to Technological changes and Market requirements. The MEI, consistently goes to great lengths to maintain excellent quality standards to be a prominent competitor and sustain their reputation. The Quality Policy ensures Total Customer Satisfaction through consistent improvement, corrective and preventive action on customer complaints and regular management reviews.

 2.Corporate Social Responsibility Policy:

The Corporate Social Responsibility Policy (“CSR Policy”) that the company undertakes to implement depicts its responsibility towards the society and the environment in direct or indirect relation to its activities. In order to be a responsible corporate citizen, The MEI aims to empower communities by fostering socio-economic development among the deprived and marginalized sections of the society. The Company aspires to place a higher importance on contributing social good to society and thereby improving livelihood amongst the community. 

The MEI hereby, commits itself to the wellbeing of the local communities, the society at large and environment protection and sustainability.

In this regard, the Company has made this policy which encompasses the Company’s philosophy for delineating its responsibility as a diligent Corporate Citizen and lays down the guidelines and mechanism for undertaking socially useful programmes for welfare & sustainable development of the community at large titled as the “Corporate Social Responsibility (CSR) Policy” pursuant to the Companies Act, 2013 and the rules made thereunder. The Board may upon recommendation of the CSR Committee, amend and/or modify this CSR Policy as and when necessary.

3.CSR Policy Objectives:

The CSR Policy of MEI aims to achieve, consolidate and strengthen Good Corporate Governance including adopting socially and environmentally responsible business practices that balance the Company’s financial profit with social well-being.

The MEI intends to pursue CSR programs primarily in the areas that fall within the economic vicinity of the Company’s operations in order to be able to supervise efficiently and embark maximum impact on development. The MEI strongly believes on building the required capabilities that aids in self-reliance of the community members giving keen importance particularly to woman and children for social and economic development.

Taking into consideration, The MEI’s receptiveness towards environment protection and sustainability, the CSR Policy is also prospected towards the essential need to protect our environment and promote environment sustainability among our community in order to serve the future generations. In light of the fact, The MEI is a prime manufacturer and mover of electrical applications, it is an important aspect of the conduct of business to be responsible towards the nature and strive to maintain ecological balance and environment conservation.

The overall goal is to promote sustainable and inclusive development as a Responsible Corporate Citizen. This goal will be achieved through the following broad Objectives:

     a. Comprehensive and integrated community development focusing on but not limited to communities most directly impacted by and in the vicinity of The MEI.

     b. Innovative and sustainable solutions for environmental conservation.

     c. Prioritization and all-round integration of environmental and social issues into the planning, designing and implantation of infrastructure development.

     d. Improved access to formal, informal and vocational education with a focus on the under privileged and marginalized communities.

     e. Contribution to national and local efforts for relief / rehabilitation in times of natural disasters on a need basis.

      f. Development and promotion of sporting talent.

      g.Ongoing promotion of healthy and safe workplaces and wellbeing of contractual workers.

      h.Active participation in disaster management initiatives for prevention and emergency response based on the comparative strength of The MEI.

 

 4.Focus Areas:-

MEI CSR areas targets inclusive growth of all stakeholders under the categories, mentioned under Sch. VII of The Companies Act, 2013 and amendments thereof. These primarily fall under:

  • Drinking water,
  • Sanitation,
  • Education,
  • Healthcare,
  • Social development,
  • Livelihood opportunities and environment protection.
  • Rural Development projects.
  • Education and vocational skills (incl. Educational Infrastructure)
  • Other additional items under Sch VII of the Companies Act, 2013 as may be prescribed from time to time.

5.Governance Structure

 A three-tier governance structure shall be responsible for implementing CSR activities at MEI and this includes the CSR Committee of the Board.

 

 BOARD

CSR COMMITTEE

MD/PROJECT HEADS

 

Roles and Responsibilities of Board

  • To approve the CSR projects & programmes including the annual action plan formulated and presented by the CSR Committee for spending of the prescribed CSR budget.

 

  • Alter the recommended annual action plan at any time during the financial year, if required, as per the recommendation of CSR Committee, based on the reasonable justification to that effect.

 

  • Ensure that the Company spends, in every financial year, at least 2% of the average net profits made during the three immediately preceding financial years, in pursuance, of its CSR Policy.

 

  • Ensure that the Company, treats the CSR Spends i.e. CSR surplus, excess expenditure and unspent CSR funds as per the modalities prescribed in the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021.

 

CSR Committee:

  • CSR Committee consists of the following Members:-
  1. Chairman of Board - Chairman;
  2. Managing Director, MEI - Member; and
  3. Deputy Secretary – (FRR&BCC), Finance Department, GoK - Member
  • The Company shall give preference to local area and areas around it where it operates for spending the amount earmarked for CSR activities.

 

  • The CSR Committee shall formulate and recommend to the Board CSR expenditure to be incurred and an annual action plan in pursuance of the CSR policy, which shall include the following, namely: -

 

  • The list of CSR projects and programmes that are proposed to be undertaken in areas or subjects specified in Schedule VII of the Companies Act, 2013;

 

  • The manner of execution of such projects and programmes;

 

  • The Modalities of utilization of funds and implementation schedules for the projects or programmes;

 

  • Monitoring and reporting mechanism for the projects or programmes; and

 

  • Details of need and impact assessment, if any, for the projects to be undertaken.

 

6.CSR Fund Management:

  • The Board shall ensure that the Company spends, in Every Financial Year, at least 2% of average net profits of the company made during the three proceeding financial year, in pursuance of its CSR policy.
  • If the Company fails to spend such amount, the Board shall, in its report, specify the reasons for not spending the amount, and unless the unspent amount relates to ongoing project, transfer such unspent amount to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year.
  • Any amount remaining unspent, pursuant to any ongoing project, fulfilling such conditions as may be prescribed, undertaken by the company in pursuance of its CSR Policy, 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 the financial year in a scheduled bank to be called the “Unspent Corporate Social Responsibility Account”, such amount shall be spent by the Company in pursuance of its obligation towards the CSR 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.

7.CSR Implementation and Expenditure:

  • To implement the Company’s CSR Programmes through Company personnel or through external implementing agencies fulfilling the criteria laid down under the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (and as amended from time to time). In such cases, the Company will specify the CSR Programmes which may be undertaken by those external implementing agencies.
  • The administrative overheads shall not exceed five percent of total CSR expenditure of the Company for the financial year.
  • Any surplus arising out of the CSR activities shall not form part of the business profit of the company and shall be ploughed back into the same project and shall be transferred to the Unspent CSR Account and spent in pursuance of CSR policy and annual action plan of the Company or transfer such surplus amount to a Fund specified in Schedule VII, with in a period of six months of the expiry of the financial year.
  • Where the company spends an amount in excess of its CSR obligation, such excess amount may be set off against the requirement to spend upto immediate succeeding three financial year subject to the conditions that –
    • The excess amount available for set off shall not include the surplus arising out of the CSR activities.         
    • The Board of the Company shall pass a resolution to that effect.
    • The CSR amount may be spent by the Company for creation or acquisition of a capital assets, which shall be held by –
    • A company established under Section 8 of the Act, or a Registered Public Trust or Registered Society, having charitable objects and CSR Registration Number.
    • Beneficiaries of the said CSR project, in the form of self-help groups, collectives, entities or
    • A public authority.

 8.Impact Assessment:

  • A company having the obligation of spending average CSR amount of Rs.10 Crore or more in the three immediately preceding financial years shall undertake impact assessment.

 

  • Impact assessment to be done by an independent agency.

 

  • Impact assessment to be done in respect of CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study.

 

  • The impact assessment reports shall be placed before the Board and shall be annexed to the annual report on CSR.

 

  • Impact assessment expenditure for a financial year shall not exceed five percent of the total CSR expenditure for that financial year or fifty lakh rupees, whichever is less.

9.Disclosures

  • The Board of the Company shall disclose the composition of the CSR Committee and CSR Policy and Projects approved by the Board on the website.

 

www.mei.karnataka.gov.in

Last Updated: 09-08-2022 11:33 AM Updated By: Approver


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