CSR Policy

POLICY ON CORPORATE SOCIAL RESPONSIBILITY  OF AMBICA STEELS 

1. THE COMPANY

Ambica Steels Limited is a stainless steel manufacturer headquartered at Delhi and having its factories located at Sahibabad, Ghaziabad, (UP). Our company has the capacity of production of around 60,000 tons of stainless steel every year and currently serving arround 56 countries as exporter.  Ambica Steels Limited is holding three star export house status and certified authorized economic operator (AEO) tier – 2 level from the ministry of customs, Government of India.

Ambica Steels Limited has the certification of iso 9001-2015, iso 14001-2015, as 9100 aerospace, norsok and many more.

2. LEGAL FRAMEWORK OF CSR IN INDIA

The Companies Act 2013 (hereinafter referred to as ‘the Act’), has introduced the concept of CSR in law. It mandates qualifying companies to constitute a Corporate Social Responsibility Committee to effectively monitor CSR activities of the Company. Further the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as “CSR Rules”) lays down the framework and modalities of carrying out CSR activities which are specified in Schedule VII of the Act.

Notwithstanding any provision mentioned in this Policy, any change thereto with respect to the legal framework of Corporate Social Responsibility as specified in Section 135 of the Companies Act, 2013 read with CSR Rules, shall have effect including the statutory amendment and modifications thereto in the legal provisions. 

The Board of Directors of the Company has the responsibility of formulating the Corporate Social Responsibility Policy (“Policy”) for the Company, identifying & addressing the progress achieved in the area of Corporate Social Responsibility (“CSR”) & fostering a culture of global responsibility that contributes to the creation of value & making CSR a key business process for sustainable development of the society.                                                                                   

3. OBJECTIVE & PURPOSE OF POLICY

The purpose of this Policy is to:-

• Establish the basic principles & general framework of action for the management of the CSR practices undertaken by the Company;
• Develop meaningful strategies for the effective implementation of the CSR Policy for engaging all the stakeholders;
• Directly/indirectly undertake projects/programs which will enhance the quality of life & economic well-being of the communities in & around the society at large;
• Celebrate local sustainability achievements and share good practices with the network.

This Policy shall apply to all CSR initiatives and activities taken up by the Company in India, to support the economic and social development of the Indian community.

4. CSR COMMITTEE
5. 1. CONSTITUTION
      1. Pursuant to section 135 of the Act, members of the CSR Committee constituted by the Board shall comprise the following directors. The Board shall have the power to re-constitute the CSR Committee as may be required to achieve the objectives of this Policy.

1. 1. 2. The CSR Committee may identify and authorize the person(s) on behalf of the Company to deal with and report on the matters related to implementation of the CSR activities. The concerned person(s) should have suitable background, and report directly to the CSR Committee or a member nominated by the CSR Committee.
2. 1. 3. The CSR Committee shall have the authority to obtain professional advice from external sources and have full access to information contained in the records of the Company as well as the powers to call any employee / external consultant or such other person(s) and for such purpose as may be deemed expedient for the purpose of accomplishment of CSR objectives of the Company.
          
3. 2. POWERS & DUTIES OF THE COMMITTEE
4. 1. 1. Formulate and recommend to the Board, a CSR Policy which shall indicate the activities to be undertaken by the Company as detailed in the Schedule VII to the Act;
      2. Recommend the CSR Budget;
      3. Recommend the amount of expenditure to be incurred on the activities referred to in the CSR Policy;
      4. Spend the allocated CSR amount on the CSR activities once it is approved by the Board of Directors of the Company in accordance with the Act and the CSR Rules;
      5. Approve to undertake CSR activities in collaboration with other companies/firms/NGOs etc. and to separately report the same in accordance with the CSR Rules;
      6. Create transparent monitoring mechanism for implementation of CSR Initiatives in India;
      7. Submit the Reports to the Board in respect of the CSR activities undertaken by the Company
          
5. 3. MEETINGS

Members of the Committee may participate in the meeting in accordance with the provisions of the Companies Act, 2013 and CSR Rules. The CSR Committee may meet, if required, at a mutually agreed time and place. Minutes of the CSR Committee shall be placed before the Board for noting.

5. CSR ACTIVITIES

 

1. 1. ACTIVITIES FOR CSR

In accordance with the CSR activities of the Group, and the activities specified under Schedule VII of the Act, CSR activities of the Company shall have the following thrust areas:

 

1. 2. DISQUALIFYING ACTIVITIES FOR CSR

In accordance with the CSR Rules which prohibit undertaking of projects and programs that are implemented by the Company for benefit of the employees of the Company and their families, and CSR activities implemented outside India, such activities by the Company shall not be considered for inclusion in the CSR Report. Any amount directly or indirectly contributed towards any political party under Section 182 of the Act shall not be considered as CSR Expenditure. Activities that are undertaken by the Company in pursuance of its normal course of business will not be considered as CSR activities.

 

1. 3. EXECUTION PROCESS​​​​​​
2. 1. 1. The Company may undertake its CSR activities (either new or ongoing) as approved by the CSR Committee.
3. 1. 2. The CSR projects or programs 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. 
4. MONITORING MECHANISM

To ensure effective implementation of the CSR programs / activities outlined in the CSR Policy and execution of the identified CSR Projects, if any, the Committee may appoint an internal monitoring group comprising of three members. The progress of CSR programs under implementation will be reported to the Board of Directors on periodically. The CSR Policy and its implementation shall be evaluated amongst others, on the following criteria:

• Technical appraisal of the project;
• Financial appraisal of the project especially the cost estimates and the funding arrangement
• Time chart/ project schedules and funding requirements for each stage
• Project Documentation

Reports of the impact of the CSR activities done by the Company shall be submitted to the Board of Directors to determine the status and if required, the effectiveness of CSR activities of the Company.

7. REPORTING MECHANISM

CSR Committee will obtain feedback from beneficiaries about the programmes and report the same to the Board of Directors along with its comments. Appropriate documentation of Company’s CSR Policy, annual CSR activities, executing partners, and expenditure entailed will be undertaken on a regular basis.

8. DISCLOSURES

The Board’s report, being a part of the Annual Report shall disclose the composition of the CSR Committee, the contents of such Policy, the CSR initiatives undertaken and such other details as may be required as per CSR Rules, 2014. This CSR Policy shall also be placed on the website, if any, of the Company.

9. POLICY REVIEW AND FUTURE AMENDMENTS

The Committee may annually review its CSR Policy from time to time and make suitable changes as may be required and submit the same for the approval of the Board.