As per section 135 of the Companies Act, 2013, every company having Net worth of ₹500 crores or more, or turnover of ₹1000 crores or more, or a net profit of ₹5 crores or more in preceding financial year shall constitute a Corporate Social Responsibility (CSR) Committee, in order to undertake activities that would come under the purview of CSR activities. Company should also formulate CSR policy in this regard.
The objective of Corporate Social Responsibility is to benefit the society by improving the quality of the individual, their families and local communities at large. Serving the needy people is the top priority of Asirvad Microfinance Ltd. The Company has already started to engage in improving the life of the poor and the needy people by providing microfinance business but the eagerness of the company to help more under privileged people does not end here. The company, through CSR activities, shall participate in the overall development of the society.
Ethics, Transparency & Accountability
Asirvad Microfinance Ltd is committed to maintain ethical value, transparency and accountability. Further, the company will not engage in business practices that are abusive, unfair and corrupt.
List of CSR Activities
At least 2% of the average net profit of the preceding three financial years to be spent on CSR activities every year by the company.
Composition of CSR Committee:
The CSR committee shall consists of minimum three team among which one shall be Indpendent Director.
Role of CSR Committee:
The CSR Committee constituted in pursuance of Section 135 of the Companies Act, 2013 shall be required to carry out the following activities:
a) Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII
b) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); andc) Monitor the CSR policy of the company from time to time.
CSR through Company/ Trust/ Society
The company may undertake CSR activities through Asirvad Development Foundation and/or Manapurram Foundation
Disclosures in the Annual Report of the Board
The Annual Report of AMFL shall include an annual report on CSR activities on the format annexed to rules framed under Section 135, which shall include, inter alia, the following information:
While preparing the Statement of Profit and Loss, AMFL shall disclose by way of notes, the amount of expenditure incurred on CSR activities
Display of CSR Policy on the website of AMFL:
The CSR Policy shall be placed on the website of AMFL.
Surplus arising out of CSR Activities:
Surplus arising out of CSR activities, if any, shall not form part of the business profit of the company.
Amendment to the Policy
The Board of team on its own and/or on the recommendation of CSR committee can amend its policy as and when required. Any or all provisions of CSR Policy would be subjected to revision/amendment in accordance with the regulations on the subject as may be issued from relevant statutory authorities, from time to time.