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CSR Policy

Kusum Healthcare Private Limited
CORPORATE SOCIAL RESPONSIBILITY POLICY

  • Reviewer: – Corporate Social Responsibility Committee
  • Approver: – Board of Directors

1. Introduction

Kusum Healthcare Pvt Ltd (“Kusum” or the “Company”) is deeply committed to fulfilling its responsibility as a corporate citizen and integrating it into the Company’s core business strategy. Kusum’s guidelines and mechanism for undertaking socially beneficial programs for the welfare & sustainable development of the community at large is titled the “Kusum CSR Policy.”

2. Applicability

Kusum’s CSR Policy has been prepared in accordance with Section 135 & Schedule VII of the Companies Act, 2013 (“Act”) along with Companies (CSR Policy) Amendment Rules 2021 (“Rules”).

3. Board Responsibility

The Board of KUSUM will be responsible for:

  • approving the CSR policy as formulated by the CSR Committee
  • ensuring that the Company spends at least 2% of the average net profit before taxation of the previous three financial years in each financial year.
  • ensuring that every financial year funds committed by the Company for CSR activities are utilized effectively and regularly monitoring implementation.
  • disclosing in its Annual Report the names of CSR Committee members, the content of the CSR policy, and ensuring annual reporting of its CSR activities on the Company

4. Constitution of the CSR Committee

The board constituted the “CSR Committee” on April 15, 2014. The Committee shall consist of at least two directors of the Company as members of the Committee. Board reconstituted the CSR Committee on April 1, 2021. The present constitution of the CSR Committee is as follows:

Mr. Badri Prasad Gupta

Chairman

Mr. Sanjeev Gupta

Member

Mr. Chand Rashekhar Tippasandra Gowripathi

Member

The Board has the authority to reconstitute this Committee from time to time.

5. Roles and Responsibilities of the Committee:

The roles and responsibilities of the Committee shall be the following:

  • Formulate, monitor, and recommend to the Board the CSR Policy in compliance with Section 135 of the Companies Act 2013
  • Identify activities to be undertaken as per Schedule VII of the Companies Act 2013
  • Recommend to the Board modifications to the CSR Policy as and when required
  • Recommend to the Board the amount of expenditure to be incurred on the activities undertaken
  • Review the performance of the Company in the area of CSR, including the evaluation of the impact of the Company’s CSR activities
  • Review the Company’s disclosure of CSR matters
  • Approving the budgetary allocation funds to various units/groups monitoring the CSR activities.
  • Consider other functions, as defined by the Board, or as may be stipulated under any law, rule, or regulation.

6. Meetings and Quorum

The committee shall hold meetings as and when required. Two members present shall form the quorum for the meeting of the Committee.

7. CSR Funding And Allocation

KUSUM shall spend in each financial year at least 2% of the average net profits before taxation of the Company made during the three immediately preceding financial years. The total budgetary allocation shall be approved by the Board of Directors.

The CSR Committee will review any unspent CSR allocation of a particular year, and a decision would be taken on whether the unspent amount should be carried over to the subsequent year/s. The CSR Committee, while determining the requirement for carrying over to next year, will consider various factors like availability of desired projects, utilization trend, practical aspects of spending the required amount in a particular timeframe, and best interests of all the stakeholders.

However, the reason for not being able to spend shall be disclosed.

8. CSR Projects/Activities

The thrust of CSR shall be in the following areas, with special attention to the development of weaker/marginalized/underprivileged sections of the society, including SC/ST/OBC/ Minorities, women and children, BPL families, old and aged, physically challenged, etc.

  • eradication of extreme hunger, poverty, and malnutrition, promoting preventive health care and 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 project.
  • contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities, and women
  • contribution to Corpus of a Trust/Society/Section 8 companies etc. where such entities are created exclusively for undertaking CSR activities or where the corpus is created solely for a purpose directly relatable to the subject covered in Schedule VII of the Act.
  • upliftment of the Marginalized and Underprivileged Sections of the Society by providing Education (Free literacy program at various centers in slum/backward areas) and Aiding Institutions of Differently Abled/Disabled/ Handicapped persons
  • Community Healthcare
    • General / specialized Health camps
    • Specialized Medical treatment for reducing child mortality and improving maternal health.
    • Health Awareness camps (HIV/AIDS, General Health, etc.
  • Such other activities may be permitted under the laws.
 

The CSR activities shall be as per Schedule–VII (notified on 27.02.2014 by Ministry of Corporate Affairs) as part of the Companies Act, 2013, and KUSUM’s CSR activities are arranged according to Schedule-VII.

9. Selection & Need Assessment of CSR Projects/ Activities

All the requests/applications from Villagers/Gram Sabha’s / Panchayat / Ward Members/NGOs/ Trusts/ Societies/Beneficiaries/ Government authorities etc. shall be scrutinized and screened by CSR Cell and then their need assessment would be arranged. The need assessment/baseline survey shall be carried out through in-house expertise and recourses.

However, in the case of specialized CSR projects/activities for which in-house capacity is not available, the baseline survey/need assessment shall be carried out by specialized agencies.

In any case, the Company shall maintain the documentary evidence of having got the needed assessment study done through its own expertise and resources, or through some specialized agencies, or having accessed reliable data in this regard from recognized authoritative secondary sources.

10. Approval of CSR Projects/Activities

All the CSR projects/activities shall be approved by CSR Committee and ratified by the Board of Directors.

11. Planning, Implementation & Monitoring

CSR initiatives will be implemented either directly by the Company or through Kusum Charitable Trust which shall act as its implementing agency which is a registered trust and having an established track record of at least 3 years in undertaking CSR activities for which the grant is being given. This Trust is also registered under section 12A and 80 G of the Income Tax Act, 1961 (43 of 1961). The Company may engage International Organisations (as defined in Clause 2(g) of the Companies (Corporate Social Responsibility Policy) Rules 2014) for designing, monitoring, and evaluation of CSR Projects as well as capacity building of their personnel. The Company may also collaborate with other companies to undertake CSR projects, provided the CSR Committees of the respective companies are able to report separately on such projects.

The CSR policy is implemented as per the Act and the Rules. The CSR policy will be implemented ensuring that all projects/programs as budgeted are duly carried out. CSR spending will be closely monitored and funds shall be released against verified utilizations as per the approved work plans. This may include monthly field visits, comprehensive documentation, and regular interaction with beneficiary communities. Further, CSR spending will be audited in an accountable and transparent manner.

Reporting

  • The contents of the CSR Policy shall be disclosed in the Director’s Report forming part of the Company’s Annual Report. It shall also be placed on the Company’s website in the prescribed format. It shall include the following.
    • A brief outline of the CSR Policy, including an overview of projects undertaken and a reference to the web link to the CSR policy and projects.
    • Composition of the Board’s Sub-Committee on CSR.
    • Average net profit for last three Financial Years and the Prescribed CSR Allocation (Budget).
    • The details of the amount spent on CSR during the financial year are in the prescribed format.
    • A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy are in compliance with CSR objectives and policy of the Company.
  • The report would be signed by the Director (Personnel) or Chairman of the CSR Committee.

12. Policy Review

This Policy is framed based on the provisions of the Companies Act, 2013 and the rules thereunder. n case of any subsequent changes in the provisions of the Companies Act, 2013 or any other regulations which make any of the provisions in the Policy inconsistent with the Act or regulations, then the provisions of the Act or regulations would prevail over the Policy and the provisions in the Policy would be modified in due course to make it consistent with the law.

This Policy shall be reviewed by the Corporate Social Responsibility Committee as and when any changes are to be incorporated in the Policy due to changes in regulations or as may be felt appropriate by the Committee. Any changes or modifications to the Policy as recommended by the Committee would be given for approval by the Board of Directors.

This Policy is dated April 1, 2021.

For and on behalf of the

Corporate Social Responsibility Committee of Kusum Healthcare Pvt Ltd

Badri Prasad Gupta

Chairman of the Corporate Social Responsibility Committee