Pursuant to Section 135 of the Companies Act, 2013 (the Act) read with the Companies (CSR Policy) Rules, 2014 (the Rules), the Company put in place a the Corporate Social Responsibility Policy of Parekhplast India Limited (“CSR Policy”) for the Company as per approval given by the Board of Directors of the Company at its meeting held on 16th January, 2016. The said Act and Rules in this regard have been substantially amended with effect from 22 January 2021, necessitating changes to be made in the CSR Policy.
Accordingly, a revised Policy has been framed for adoption by the Board of Directors incorporating the necessary changes. This Policy shall supersede the earlier Policy and shall come into immediate effect.
CSR Policy is a positive step and the company appreciates the decision taken by the Government of India. Legal framework of CSR is an edge to Corporate Charitable/reformative approach towards the Society to which the Corporate is belonging to. By introducing the separate section for CSR in Companies Act, 2013, the Government has given legal recognition to their community development approach.
The management of the Parekhplast India Limited expresses its willingness and support to the CSR concept, its legal framework and shall be abided to it.
As per amended provisions of Section 135 of Companies Act, 2013 and the Rules made thereunder, the Company does not require to constitute Corporate Social Responsibility Committee (“CSR Committee”) as obligation to be spent CSR does not exceed Rs.50,00,000/-
Board of Directors of the Company may re-constitute the Committee, as and when required to do so, by following the provisions of the Companies Act, 2013 and rules made thereunder.
The Board of Directors shall exercise powers and perform the functions pursuant to section 135 of the Companies Act, 2013 and CSR Rules notified with regard thereto.
Pursuant to Schedule VII of the Companies Act, 2013, the Board of Directors has approved the following activities as “CSR Activities”. The Board of Directors has reviewed the said activities alongwith section 135 of the Companies Act, 2013, Schedule VII and other applicable rules, regulations, notifications etc., issued/to be issued from time to time.
Any other activities which may be included by Ministry of Corporate Affairs (MCA by way of any amendment to Schedule – VII or otherwise included by way of clarification, order or circulars by MCA.
The CSR projects or programs or activities undertaken by the Company as per the Company’s CSR Policy in India only shall amount to CSR Expenditure in accordance with the provisions of the Act. The Company will prefer to take up projects for spending the amount earmarked for CSR at local areas and areas where the Company operates.
The Company shall allocate the budget for CSR activities. The minimum budgeted amount for a financial year shall be 2% of the average net profit of three immediate preceding financial years. The Company may allocate more fund/amount than the amount prescribed under section 135 of the Companies Act, 2013, for the CSR activities for any financial year. The CFO or the person responsible for financial management shall approve and certify that the total fund to be utilized only for CSR activity for the respective financial year.
CSR expenditure shall include all expenditure including contribution to corpus for projects or programs’ relating to CSR activities approved by the Board but does not include any expenditure on an item not in conformity or not in line with activities which fall within the approved CSR activities.
Out of approved CSR activities, the Board shall decide which activity/project should be given priority for the respective financial year. While arriving at the decision of the activity to be undertaken for the respective year, the Board shall analyze the basic need of the community/ area in which the Organization operates or at the place where its registered office is situated. The Board shall record its findings and prioritised the CSR activities.
After prioritizing the activity the Board shall finalise the detail implementation Project/programme, including planning for expenses against the total budget allocated for CSR activities.
At organisational level for implementation of agreed CSR activity, The Board shall ensure that the CSR activities are undertaken by the Company itself or through a registered and eligible Implementation Agency. The team or respective department shall monitor the implementation process from time to time, on behalf of the Board and place a report to the Board regarding the progress of the activity implementation, on a quarterly basis. The respective department or implementation team would be responsible for reporting of any irregularity to the Board on immediate basis.
The Board of Directors shall constantly monitor the implementation of the CSR activities. The Board shall place a progress report, including details of expenses, before the Board on quarterly basis. The
Role of the Board of Directors
The Board is responsible to undertake CSR activities as per the approved CSR Policy. Apart from quarterly reporting to the Board about the implementation of CSR activity, a detail report containing the implementation schedule, total budget allocated, actual expenses incur, surplus arising, if any, result achieved, further work to do in the concern CSR activity, Recommendation for the CSR activities for next year etc. should be placed before the Board for its consideration. Any surplus arising out of the fund allocated for CSR activity shall not be the part of the business profit of the Company.
Our Board of Directors, our Management and all of our employees subscribe to the philosophy of compassionate care. We believe and act on an ethos of generosity and compassion, characterized by a willingness to build a society that works for everyone. This is the cornerstone of our CSR policy.
Our Corporate Social Responsibility policy conforms to the relevant section of the Corporate Social Responsibility and Rules made thereunder Companies Act, 2013 and amendment(s) to be made thereto in future.