1.1 The Corporate Social Responsibility (CSR) Policy of Shipping Corporation of India (hereinafter referred as SCI) is issued within the framework mentioned hereunder:
i. Section 135 of the Companies Act, 2013 (hereinafter referred as Act)
ii. DPE Guidelines on CSR issued from time to time
iii. Ministry of Corporate Affairs Notification on Amended CSR rules effective from
22nd January, 2021.
1.2 This Policy supersedes the previous “CSR Policy” approved by the Board of Directors (hereinafter referred as BoD) of SCI held on 18.08.2016.
1.3 This policy is consistent with the Act and Rules on CSR framed by MCA and the policy directions on the subject issued by the Government from time-to-time.
1.4 Whenever any amendments are made by MCA on the subject, the same shall be duly incorporated in the policy document. As per the Act, modification/ amendment to the Policy will be approved by the Board of Directors of SCI on the recommendation of the CSR Committee of the Board.
2. AIMS & OBJECTIVES
2.1 SCI as a responsible corporate citizen aims to channelize its performance along social, economic and environment dimensions. The policy objective of CSR initiatives is accordingly to achieve common social well being and empowerment. SCI recognizes CSR as a tool towards conducting business responsibly and shall endeavor to conduct its business operations and activities in a socially responsible and sustainable manner at all times.
2.2 CSR is aligned and integrated with SCI’s business goals, plans and strategies. The philosophy and spirit of CSR shall be embedded in the core values of the company and will be imbibed by the employees across all horizontals and verticals and shall permeate into all activities, processes, operations and transactions of the enterprise.
3. VISION & MISSION
The vision and mission for CSR activities at SCI are stated below:
To be a Corporate with its business strategies, policies and actions aligned with wider social concerns through sustainable initiative in socially relevant matters including education, health & environment.
SCI aims at spending a defined portion of its net profit for the betterment of society through :
i.Financial and other assistance to students pursuing maritime related studies belonging to socially weaker sections.
ii.Efforts for improving community health in slums and areas inhabited by weaker sections.
iii.Programmes and efforts for supporting environment protection and enhancement.
iv.Promoting, encouraging and supporting the social and cultural heritage and traditions of our society.
v.Proactive actions for well being of the society as per the needs.
vi.Incorporating sustainability in business plans, strategies and processes.
vii.Providing support in times of national disaster.
4. ORGANIZATIONAL STRUCTURE
4.1 As per subsection (1) of the Act, in order to steer the Company’s Policy on CSR, to oversee the implementation of CSR activities/ projects in the company, the CSR committee of the Board (Tier I Committee) will constitute of :
i. C&MD (Chairman of the committee)
ii. One or more Independent Director
iii. One or more Whole Time Director
iv. Director (Personnel & Administration)- Ex officio member & Convener of the committee
As per clause (3) of subsection (1) of the Act, the broad functions of the CSR Committee of the Board shall be as under:
i. Formulate and recommend a CSR Policy to the Board, which shall include the Annual Action Plan indicating the activities to be undertaken by the company as specified in Schedule VII of the Companies Act, manner of execution of projects, modalities of utilization of funds and implementation schedules and monitoring and reporting mechanism; (Annual Action Plan attached at Annex-1)
ii. Recommend the amount of expenditure to be incurred on the CSR activities referred to in clause (a);
iii. Monitor the Corporate Social Responsibility Policy of the company from time to time.
iv. Institute a transparent monitoring mechanism for implementation of the CSR projects/programs/activities.
v. Monitor implementation of CSR activities on quarterly basis.
vi. Approve programs / projects / activities
vii. Approve projects/programs/activities which are outside SCI’s focus areas.
4.2 Tier II Committee:
To coordinate the CSR initiatives on day to day basis, a Tier II Committee will be constituted comprising of the following :
i. Head of Personnel & Administration Department – Ex officio Nodal Officer
ii. 2 representatives from P&A who handle CSR
iii. 1 representative from Finance department.
5. FOCUS AREAS FOR INITIATIVES
5.1 The CSR policy of SCI aims at promotion, upliftment, empowerment, development and equality in the society through education and awareness.
5.2 SCI’s CSR initiatives will target specific areas for optimum use of resources. SCI’s focus will be on sustainable development and inclusive growth to address the basic needs of the deprived, under privileged, neglected and weaker sections of the society.
5.3 The target areas of SCI’s CSR initiatives will adhere to the Schedule VII of the Companies Act, 2013 & Amendment to Schedule VII (hereinafter referred as Schedule) and any such other activity as directed by GOI-MoS and DPE.
6.1 An Action Plan with the detailed break up of projects/programs activities to be undertaken will be approved by the Board.
6.2 Any projects/programs activities in areas other than listed in Schedule VII will be taken up on the approval of the Board.
6.3 CSR projects / programs / activities will be implemented directly by SCI or through implementing partners/specialized agencies
6.4 The minimum eligibility criteria of an implementing partner will be as follows:
i. Such entity must be a registered public trust, or a registered society or a company registered under Section of the act or any specialized agency established by the act of Central Government / State Government having minimum three years of experience post registration in handling activities of similar nature.
ii. Experience of working with any Government Body or Public Sector Enterprise will be preferred.
iii. In addition to registration under respective act, the implementing agency should also be registered under the provisions of 80G of the Income Tax Act. However the selecting authority can request any other qualification from the applicants while selecting the implementing partners.
6.5 CSR activities will be implemented by SCI or by the implementing agencies as specified at point 6.3 & 6.4 above. MoU’s / Letter of Commitment will be signed with the implementing agency and the monitoring/ evaluation of the project will be ensured by way of the following parameters:
i. Base line survey containing the present status of the target group / area and the need.
ii. Nature and content of the programme / project.
iii. Specific deliverables
iv. Target group of the programme with details of beneficiaries
v. Commencement date and closure date of the programme / project.
vi. Setting Milestones
vii. Monitoring and reporting at each milestone and measurement at final stage.
viii. Names / qualifications / experience of the persons involved in execution.
ix. Particulars of approvals / consent of the government / local government bodies and / or other agencies / bodies where required.
x. Estimated budget and phasing of disbursement, monitoring by SCI / SCI partner(s).
7. FINANCIAL RESOURCES
7.1 In alignment with The Companies Act, 2013 the corporation shall earmark as Annual CSR Budget, at least 2% of the average of net profits of the company made during the three immediately preceding financial years.
7.2 The unutilized / unspent amount allocated related to Ongoing CSR Projects / Not related to ongoing CSR Projects will not lapse and shall be treated as per the MCA notification dated 22nd January, 2021 w.r.t. Amendment in CSR Rules.
7.3 Any surplus arising out of the CSR & Sustainability projects/programs / activities will not form part of the business profit of the Company and shall be treated as per the MCA notification dated 22nd January, 2021 w.r.t. Amendment in CSR Rules
7.4 Expenditure incurred incurred on base line survey, needs assessment study, monitoring & audit, social impact assessment studies etc and on capacity building programmes such as training, workshops, seminars, conferences etc through reputed institutions and on corporate communication strategies for engagement of all stakeholders, whether internal or external, to implement the CSR agenda of SCI, would be accounted for as CSR expenditure but such
expenditure shall not exceed 5% of total CSR expenditure in one financial year.
8.1 Monitoring process will be a done through a three tier mechanism through :
a. CSR Tier I Committee on quarterly basis.
b. CSR Tier II Committee on regular basis.
c. Third Party Impact Assessment of major projects will be carried out on annual basis.
9.1 Needs Assessment/ Base Line Survey:
Before taking any final decision on the selection of any CSR activity/ project/ program, needs assessment study and/or base line survey or assessment of stake holder consultation will be done, as far as possible, to assess the needs of the intended beneficiaries for a realistic assessment of the resource inputs required for the expected level of social/ economic/ environmental impact through the implementation of the activity/ project. The data/
information collected through this exercise/ study before the commencement of the project will be used in impact assessment after completion of the project or program. The needs assessment study may be done through SCI’s own resources/ through specialized agency based on the accessed reliable data from recognized authoritative sources, in this regard.
9.2 Impact Assessment:
The ultimate test of the success of any CSR project or program is the social, economic or environmental impact thereof. After the completion of the project or program and necessary minimum gestation period i.e. one year from the date of completion of the project, an impact assessment study will be conducted of all such projects whose “minimum outlay is Rs 1 Crore or more or in the case where average CSR obligation to SCI of preceding three
financial years is Rs 10 crore or more”, to ascertain the degree of its success, or failure with reference to the project report prepared at the commencement of the project or program. SCI will utilize the services of specialized external agencies for impact assessment study.
10. REPORTING AND DISCLOSURE
10.1 SCI shall report and disclose the contents of CSR and activities implemented by SCI for the benefit of all stakeholders through the following:
a. Official website: www.shipindia.com
b. Annual Report