CORPORATE SOCIAL RESPONSIBILITY POLICY OF CLAY CRAFT (INDIA) PRIVATE LIMITED

According to Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 every company having net worth of Rupees Five Hundred Crore or more or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board.

In compliance of the above requirements, CLAY CRAFT (INDIA) PRIVATE LIMITED, has constituted Corporate Social Responsibility (CSR) Committee and formulated a Policy.

Further, CSR is not viewed as a responsibility but is rather a duty as a responsible corporate citizen. Since inception, the Company has been actively engaged in the area of social and community development.

CSR Committee

The Board of Directors of the Company shall constitute a committee called the “Corporate Social Responsibility Committee” (“CSR Committee”) in accordance with the provisions of Companies Act, 2013 and rules made thereunder. The CSR Committee will consist of 3 or more directors or such other number of directors as the Board of Directors of the Company may determine from time to time. The Board of Directors may change the composition of the CSR Committee from time to time in such manner as it thinks fit.

Subject to provisions of Companies Act, 2013 and rules made thereunder, the CSR Committee may meet at such intervals, in such manner and may carry out matters in such manner and function generally as it deems fit.

The terms of reference of the CSR committee shall be as per the applicable provisions of the Companies Act, 2013, as may be amended from time to time, including such functions as may be entrusted by the Board of Directors from time to time.

CSR Activities

The Board of Directors upon the recommendation of the CSR Committee have identified the following areas listed in Schedule VII of the Companies Act, 2013 for carrying out its CSR activities (Hereinafter referred to as ‘Identified Areas’):

  • Eradicating 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 projects;
  • Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
  • Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water;
  • Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts;
  • measures for the benefit of armed forces veterans, war widows and their dependents;
  • training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports;
  • 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 Castes, the Scheduled Tribes, other backward classes, minorities and women;
  • contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
  • rural development projects;
  • Slum Area Development;
  • Such other areas as may be included in Schedule VII of the Companies Act, 2013 from time to time.

The Projects / Programmes in the aforementioned Identified Areas would be of a continual nature requiring long-term commitment from the Company for which fixed implementation schedules cannot be specified.

The Projects / Programmes may be undertaken by the Implementation Agency or the Company directly provided that such projects / programmes are in line with the activities enumerated in Schedule VII of the Companies Act, 2013.

Area for CSR Activities

The Company shall ensure that in identifying its CSR Projects, preference shall be given to the local area and areas around which the Company operates. However, this shall not bar the Company from pursuing its CSR objects in other areas.

Implementation Agency

  1. The CSR activities of the Company may be undertaken directly by the Company or through such agency(ies) as the Company may deem fit, provided that such agency(ies) meets the eligibility criteria laid down under the applicable laws.
  2. The time period over which a particular programme or project will be executed will depend on the nature of the activity, its extent and objective sought to be achieved by the programme or project.

CSR Budget

For undertaking the CSR activities, the Company will strive to spend in each financial year a minimum of 2% of the average net profits of the previous three financial years. For this purpose, the net profit and average net profit shall be calculated in accordance with the provisions of the section 198 of the Companies Act, 2013 read-with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.

The surplus, if any arising out of the CSR projects or programs or activities shall not form part of the business profits of the Company, further, the CSR projects or programs or activities does not include the activities undertaken in pursuance of normal course of business of the Company.

Monitoring Mechanism

  1. The monitoring of CSR activities of the Company will be undertaken by the CSR Committee of the Company.
  2. The CSR Committee shall discuss the progress of each project undertaken and make any decision with respect to the project which it thinks fit.
  3. The Committee may require the Company / Implementation Agency to furnish such additional information or reports as it may require.
  4. The members of the Committee may either on their own and through their delegated representatives make periodic visits to the CSR sites to ascertain the progress of the CSR Projects / Programmes.
  5. 5.The members of the Committee shall also have the right to inspect and audit the books of accounts, records and other documents of the Company / Implementation Agency pertaining to the CSR activities of the Company, either by themselves or through the aid of external agencies.
  6. A report on CSR activities shall be prepared by the Committee on a yearly basis which shall be included in the Annual Report of the Company.

REVIEW OR AMENDMENT

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

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