This Corporate Social Responsibility (hereinafter referred to as ‘CSR”) Policy is framed in terms of the Companies Act, 2013 (hereinafter referred to as ‘the Act) read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 (here in after referred to as ‘the CSR Rules), as amended from time to time.
Philosophy
Recognizing that business enterprises are economic organs of society and draw on societal resources, it is USI belief that a company’s performance must be measured by its Triple Bottom Line contribution towards building economic, social and environmental capital. USI believes that in the strategic context of business, enterprises possess beyond mere financial resources the transformational capacity to create game changing development models by unleashing their power of entrepreneurial vitality, innovation and creativity. In line with this belief, USI will continue crafting unique models which have a significant multiplier impact on sustainable livelihood creation and environmental replenishment. These initiatives are
independent of the normal conduct of USI’s businesses and are aligned to the activities listed in Schedule
VII read with Section 135 of the Act and the CSR Rules.
Programmes, projects and activities (hereinafter collectively referred to as ‘CSR Programmes) carried out
in this regard are the subject matter of this Policy.
CSR Policy
It is UST’s Policy to direct its CSR Programmes, inter alia, towards achieving one or more of the following promoting education; promoting healthcare including preventive healthcare; providing sanitation and drinking water; and providing relief and assistance to victims of disasters and calamities.
The Company aims:
- To pursue CSR Programmes primarily in areas that fall within the economic vicinity of the Company’s operations to enable close supervision and ensure maximum developmental impact;
- To carry out CSR Programmes in relevant local areas to fulfil commitments arising from requests by government/ regulatory authorities/ associations;
- To provide equal opportunities to beneficiaries of the CSR Programmes;
Implementation
The Company’s CSR Programmes will be implemented through
- Company personnel, or
- External implementing agencies, or
- such other Trusts, Societies, Foundations.
In case SR Programmes are implemented through external agencies, the programmes to be undertaken by those agencies or Trusts will be specified, and it will be ensured that such programmes are covered in the Objects laid down in the respective Trust Deeds/ Memoranda and Articles of Association of the external agencies.
Governance
- The Sustainability Committee will review, monitor and provide strategic direction to the Company’s CSR and sustainability practices towards fulfilling its Triple Bottom Line objectives. The Committee will also guide the Company in crafting unique models to support creation of sustainable livelihoods together with environmental re-generation.
- Every year, Sustainability Committee will place for the approval of the Board of Directors of the Company (hereinafter referred to as “the Board’), an annual CSR Project Summary report (hereinafter referred to as ‘CSR Plan’) delineating the CSR Programmes to be carried out during the financial year, including the budgets thereof, their manner of execution, implementation schedules, modalities of utilization of funds, and monitoring & reporting mechanism for the CSR Programmes.The Board will consider and approve the CSR Plan with such modification that may be deemed
necessary; the CSR Plan may also be modified by the Board during the financial year, on the
recommendation of the Sustainability Committee. - The Management team will ensure that the Company’s CSR Programmes address major development challenges of the country and are aligned with the priorities of the Government. The Management team will also assign the task of implementation of the CSR Plan within specified budgets and timeframes to such persons or bodies as it may deem fit, and ensure implementation thereof.
CSR Expenditure
- It will be the Company’s endeavour to spend in every financial year, two percent of its average net profits during the three immediately preceding financial years (or such other limit as may be prescribed under the Act), on CSR Programmes in pursuance of this Policy.
- The CSR expenditure will include all expenditure, direct and indirect, incurred by the Company on CSR Programmes undertaken in accordance with the CSR Plan.
- Any surplus arising from the CSR Programmes will be used for CSR activities within six months from the end of the relevant financial year. Accordingly, any income arising from CSR Programmes will be netted off from the CSR expenditure and such net amount will be reported as CSR expenditure.
- If CSR expenditure in a financial year exceeds the statutory limit, such excess may be set-off against CSR expenditure for the next three financial years with the approval of the Board, on the recommendation of the Sustainability Committee.
- This Policy will be posted on the Company’s corporate website and web link thereto will be disclosed in the Board’s Report of the Company.
- In the event of any inconsistency between this Policy and the applicable laws, the applicable laws prevail.
- This Policy Will be reviewed by the Board, on the recommendation of the Sustainability Committee, as and when deemed necessary.