CSR Policy

1. Purpose

This practice lays down the guidelines and mechanism for fulfilling Hartek Group’s obligations of Corporate Social Responsibility by undertaking socially useful programs for welfare and sustainable development of the community at large.

2. Scope

2.1 Applicable for Hartek Power Pvt. Ltd. (HPPL) & Hartek Solar Pvt. Ltd. (HSPL) for the activities undertaken in accordance with the Section 135 of the Act and the provisions contained in the CSR Rules.

2.2 This Practice shall apply to all the CSR projects undertaken, whether such a project is executed in collaboration with any other company (as defined in the Companies Act, 2013) or on its own.

3. Terminology

• CSR - Corporate Social Responsibility
• Act - Company’s Act, 2013 with amendments
• Rules - CSR Rules, 2014
• CSR Activities - Specified in Schedule VII to the Act

Ongoing Project - A multi-year project undertaken in fulfilment of its CSR obligation having timelines not exceeding three years excluding the financial year in which it was commenced.

4. Responsibility

4.1 Maintenance & Revisions of the Practice: This practice shall be maintained by Company Secretary and approved by Chairman of the Board. The Board of Directors can amend the practice as and when deemed fit. Any or all provisions of the CSR practice would be subject to revision/amendment in accordance with the regulations on the subject as may be issued by relevant statutory authorities, from time to time.

4.2 CSR Committee

• Recommend monitoring mechanisms to the Board.
• Periodically review project progress
• Ensure timely reporting and compliance.

4.3 Board of Directors

• Ensure that CSR implementation is in line with approved Practice.
• Review CSR reports submitted by the CSR Committee.

5. CSR Functioning

5.1 Key Objective: Hartek group, through its CSR activities, intends to participate in the overall development of society and encourage alignment with the Sustainable Development Goals (SDGS) related to gender sensitivity, skill enhancement, entrepreneurship development, research in education, Hygiene & Water, etc.

5.2 Criteria: CSR is applicable under following situations:

• Net Worth: ₹500 crore or more; or
• Turnover: ₹1,000 crore or more; or
• Net Profit: or ₹5 crore or more during the immediately preceding financial year

5.3 Program Selection: The Company will undertake / fund projects, programs or activities of the following nature and also undertake such other activities as may be approved by the Board as per Schedule VII of the Companies Act, 2013.

• Eradicating hunger, poverty and malnutrition, promoting health care, including preventive health care and sanitation, including contribution to the Swachh Bharat Kosh set-up by the Central Government for the promotion of sanitation] and making available safe drinking water.
• Promoting education, including special education and employment-enhancing vocational skills, especially among children, women, the 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 backwards groups.
• Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water, including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga.
• 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 art and handicrafts
• Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents, including widows.
• Training to promote rural sports, nationally recognized sports, paralympic sports and Olympic sports.
• Contribution to the Prime Minister's national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central government. For socio-economic development and relief and welfare of the scheduled caste, tribes, other backwards classes, minorities and women.
  (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
  (b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).
• Rural development projects.
• Slum area development.

5.4 CSR Expenditure

• Minimum Spending Criteria: The Company will spend a minimum of 2% of the average net profit of the preceding 3 years for CSR activities.

5.5. Implementation

• Modes of CSR Implementation (Rule 4 of Company’s Rule)
  (a) by the company itself
  (b) through eligible implementing agencies as prescribed under sub-rule (1).
  (c) in collaboration with one or more companies as prescribed under sub-rule (4)
  


• Eligible Criteria for implementing the Agency
  a)Entity established by the company itself or along with any other company – a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961.
  b)Entity established by the Central Government or State Government – a company established under section 8 of the Act, or a registered trust or a registered society.
  c)Statutory bodies – any entity established under an Act of Parliament or a State legislature.
  d)Other bodies – a company established under section 8 of the Act, or a registered public trust or a registered society, registered under section 12A and 80G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities.

5.6. CSR Reporting

• Annual Report: To be included in the Board’s Report as part of financial statement with following content:
  a)Brief outline of the CSR Practice.
  b)Composition of the CSR Committee.
  c)Average net profit of the company for the last 3 financial years.
  d)Prescribed CSR expenditure (2% of that average).
  e)Details of CSR amount spent (or unspent) during the year.
  f)Details of ongoing projects (including timelines and funds allocated).
  g)Reasons for unspent CSR amounts, if any.
  h)Transfer of unspent funds to specified accounts/funds.
  
• Filing with MCA – Form CSR-2.
• Disclosure on Website:
  a)CSR Practice b)Composition of the CSR committee c)Approved CSR projects

5.7. CSR Committee Formation

• Constitution: Minimum 2 directors on the CSR Committee.
• Relaxation – No CSR Committee Required if a) the CSR obligation is less than ₹50 lakh in a financial year b) there is no unspent amount.

5.8. The Reach

• Preference to the local area and areas around where it executes the projects

5.9. Surplus Funds from Projects:

• CSR activities shall not form part of the business profit of the company
• The surplus, if any, arising out of the CSR projects or programmes or activities will be ploughed back into the CSR activities.

5.10. Administrative Expenses:

• Maximum 5% of the total CSR expenditure of the company in a financial year shall be utilized for administrative expenses for all kinds.

6. Risks & Mitigation

• No risk identified.

7. Software

• Excel sheet to track progress and maintain records

8. Exclusion

• None

9. Annexures

• None