CORPORATE SOCIAL RESPONSIBILITY

Preamble

Dixon Technologies (India) Limited is committed to the vision of creating a more inclusive and better India. With this vision, the Company has formulated this Corporate Social Responsibility Policy.

Purpose

The key purpose of this policy is to:

  • Define what CSR means to us and the approach adopted to achieve our CSR goals
  • Define the kind of projects that will come under the ambit of CSR
  • Identify broad areas of intervention in which the company will undertake projects
  • Serve as a guiding document to help execute and monitor CSR projects
  • Elucidate criteria for partner implementation agencies
  • Explain the manner in which the surpluses from CSR projects will be treated

CSR Committee

Constitution

Pursuant to the provisions of Section 135 of the Companies Act, 2013 (“Act”), the Board of Directors shall constitute the Corporate Social Responsibility (CSR) Committee. The Members of Board Level CSR shall be as follows:

S.No. Name of the Director Designation in Committee
1 Mr. Sunil Vachani Chairman
2 Mr. Atul B Lall Member
3 Mr. R.C. Chopra Member

The Committee may authorise any member or members the job of implementation of the projects approved by the Committee.

Scope of the Committee

Following is the scope of the CSR Committee:

  • Formulation and recommendation to the Board, a corporate social responsibility policy and subsequent amendments as required from time to time;
  • Ensuring that the corporate social responsibility policy shall include/ indicate the activities to be undertaken by the companies as specified in Schedule VII of the Companies Act, 2013 and the rules made there under, from time to time excluding the activities undertaken in pursuance of its normal course of business;
  • Monitoring the corporate social responsibility policy by instituting a transparent monitoring mechanism for implementation of the corporate social responsibility projects or programs or activities undertaken by the Company from time to time;
  • Recommendation of the annual budget for the corporate social responsibility activities of our Company in compliance with the relevant statutory provisions;
  • Assistance to our Board to ensure that our Company spends towards the corporate social responsibility activities in every Fiscal, such percentage of average net profit/ amount as may be prescribed in the Companies Act, 2013 and/ or rules made thereunder;
  • Providing explanation to the Board if our Company fails to spend the prescribed amount within the financial year;
  • Providing updates to our Board at regular intervals of six months on the corporate social responsibility activities;
  • Regulation of its own proceedings subject to the terms of reference;
  • Reviewing and recommending the corporate social responsibility plan for the ensuing Fiscal to our Board;
  • Approval of any project that may come during the year and which is not covered in the corporate social responsibility plan up to such amount as may be prescribed by our Board from time to time; and
  • Performance of such other functions as the Corporate Social Responsibility Committee may deem appropriate after the approval of the Board, or as may be directed by the Board from time to time.

CSR ACTIVITIES & IMPLEMENTATION

CSR FOCUS AREAS

In accordance with the primary CSR philosophy of the Company and the specified activities under the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014, and any amendment(s) thereof, the CSR activities to be undertaken by the Company under this Policy shall be the activities relating to following as per schedule VII to the Companies Act, 2013 as may be amended from time to time:

  • eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation and making available safe drinking water including contribution to the Swach Bharat Kosh.
  • promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently able 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;
  • Disaster relief;

Other activities relating to:

  • 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;
  • rural development projects.
  • slum area development.

The provisions indicated above are broad-based and are intended to cover a wide range of activities as illustratively mentioned. While deciding the program or project to be undertaken based on the focus areas indicated, the Company shall ensure that the provisions are interpreted liberally and the essence thereof is strictly adhered to.
Every activity to be undertaken by the Company as above shall be approved by the CSR Committee (as defined herein). For the purpose of carrying out the CSR activities, preference shall be given to the local area and the areas around which the Company operates.

IMPLEMENTATION OF CSR ACTIVITIES

The Company may carry out the CSR activities in accordance with the terms of this Policy, either on its own, or through a registered trust or registered society or through a company registered under Section 8 of the Act, whether established by the Company, a subsidiary of the Company, an Associate Company of the Company or by a third party.
The Company may also collaborate with other companies to undertake projects, programs or CSR activities in such a manner that the CSR Committees of the respective companies are in a position to report separately on such projects or programs in accordance with the Policy and the applicable CSR regulations from time to time in force.
If the Company chooses to carry out the CSR Activities through a registered trust or registered society or a Section 8 company incorporated under the Act, which is established by a third party (“CSR Partner”), guidelines mentioned in this policy are required to be followed in choosing such CSR Partner.

GUIDELINES FOR CHOOSING A CSR PARTNER

CSR Partner shall be either a registered trust or a registered society under the applicable laws or a company incorporated under Section 8 of the Act with an established track record of 3 years in undertaking activities in the focus areas in which the Company intends to carryout CSR Activities.
The Company shall satisfy itself of the legal, financial and regulatory aspects of the CSR Partner to ensure ability to carry out CSR Activities on behalf of the Company.
The Company shall procure a project report from the shortlisted CSR Partners regarding the course of action that they intend to undertake, if chosen to implement a particular CSR Activity on behalf of the Company.
The Company shall, before executing the projects with CSR Partners, ensure that the specifications for the project or programs to be undertaken through the CSR Partners, the utilization of funds on such projects and programs and the monitoring and reporting mechanism are made clear.

CSR BUDGET

The total budget for the CSR projects will be decided by the CSR Committee. The Act mandates companies meeting the qualification criteria to allocate certain portion of its annual net profits (before tax) during the three immediately preceding financial years to be spent on CSR Activities that fall under purview of Schedule VII of the Act.

CSR Expenditure:

  • Net profit means profit more fully described under Rule 2(f) of the CSR Rules. The CSR expenditure shall include all expenditure including contribution to corpus or on projects or programs relating to CSR activities approved by the Board of Directors on the recommendation of its CSR Committee but does not include any expenditure on an item not in conformity or not in line with activities stated under Schedule VII of the Act.

Failure to spend the CSR Money

  • In case the Company fails to spend the above targeted amount in that particular financial year, the Committee shall submit a report in writing to the Board of Directors specifying the reasons for not spending the amount which in turn shall be reported by the Board of Directors in their Directors’ Report for that particular Financial Year. Surplus arising out of the CSR initiatives shall not form part of the business profits of the Company.

Treatment of Surpluses

  • Any surplus generated from CSR projects undertaken by us will be tracked and channelized into our CSR corpus. These funds will be further used in development of the CSR projects and will not be added to the normal business profits.