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Corporate Social Responsibility Policy for FY 2015-16


With the passage of the new Companies Act, 2013, the mandatory provisions of the Corporate Social Responsibility (CSR) Policy have been formally introduced for its adherence by Indian Companies. The industry has responded positively to this reform measures undertaken by the Government. In the case of HGML, the practice of CSR is not new as it is being followed since many years particularly keeping in view the fact that the Hutti Gold mines area is in one of the most backward areas, namely, the Hyderabad-Karnataka region.

II. Objectives

The main objectives of the CSR policy is to lay down guidelines for CSR activities of HGML, in compliance with the requirements of new Companies Act, 2013 and rules made there-under with specific emphasis to identify and help the under privileged and the under developed areas in and around the operational areas of HGML in particular, and other areas in the State of Karnataka, in general.

III. CSR Committee

The Board has re-constituted a CSR committee of four Directors of the Board as under:
1) Sri Ziyaullah S, IAS - Chairman
2) Sri Naveen Raj Singh, IAS - Member
3) Sri S S Pattana Shetti, IAS - Member
4) Smt. L. Rajeshwari - Member

The CSR Committee will:
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 forming part of Section 135 of the Companies Act, 2013.

b) recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and

c) monitor the Corporate Social Responsibility Policy of the company from time to time.

Project Monitoring Unit/organisational mechanism:
The company has constituted a Project Monitoring Unit consisting of four Sr. Officers from within the Company as under:

a) Sri. Vijaykumar Patil, Dy. General Manager (Engg), Hutti Gold Unit - Chairman

b) Sri. B.K. Devraj, Sr. Engineer (Mech), Ingaldhal, Chitradurga - Member

c) Sri. Balaji, Sr. Engineer (Civil), Hutti Gold Unit - Member

d) Sri. N. Karriyappa Anwari, Dy. Manager (HR), Hutti Gold Unit - Member

e) Sri. Manikappa Biradar, Dy.Manager(Admin) PS to ED, Hutti Gold Unit - Member

f) Sri. A. Gururaj, Dept. Assistant, R.O, Banagluru. - Member

g) Sri. Abdual Khadar, Dy. Manager (F & AC), Hutti Gold Unit - Co-ordinator

The amount released under CSR will be monitored by this unit at regular intervals and submit its report considering both physical and financial progress in the implementation of the projects /programmes/ activities to the CSR Committee.

IV. Board

The Board, duly considering the recommendations of the CSR committee shall approve CSR policy of the company and will disclose the contents of the policy in its reports to members and also on the company's website. The Board shall also ensure that, the activities included in the CSR policy are undertaken by the company during the relevant financial year for its implementation within the overall policy frame work, and the provisions of Companies Act thereof.
Activities/ Areas of focus on CSR As per the provisions of 135 of Companies Act, 2013, the activities to be covered under CSR are notified by way of schedule VII forming part of the Companies Act. The details of the same is as under:
Activities relating to :-
i. eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;
ii. promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
iii. 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;
iv. 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.
v. 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 arts and handicrafts;
vi. measures for the benefit of armed forces veterans, war widows and their dependents;
vii. training to promote rural sports, nationally recognised sports, Paralympic sports and Olympic sports;
viii. contribution to the Prime Minister's National Relief Fund and 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;
ix. contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
x. rural development projects.
xi. slum area development, as notified by the appropriate authority. The activities as above will undergo amendments/changes if any to be notified by Government from time to time.

V. Budget provision

HGML considering its profits will make a budget provision for implementing projects under CSR as per the provisions of Section 135 of the Companies Act, 2013. During the FY 2016-17, the company has, considering the average profits of the preceding three years, made a budget provision of Rs.170 lakhs, with sub-allocation as under( lakhs) :

  Proposed area-wise apportion of expenses
CSR activities under Schedule VII of the Companies Act, 2013. Zone-I Hutti& Satellite Mines & Raichur Dist & Chitradurga Taluk. Zone-II Rest of Hyd-Kar Zone-III Rest of State Approved amount
  Amount re-earmarked for FY 2016-17
a) Govt. Sector 51.00 17.00 17.00 85.00
b)NGOs/ Others 51.00 17.00 17.00 85.00
Total 102.00 34.00 34.00 170.00
  Percentage-wise proposed expenditure
a) Govt. Sector 30% 10% 10% 50%
b)NGOs/ Others 30% 10% 10% 50%
Total 60% 20% 20% 100%

VI. Broad guidelines for consideration of the proposals and approval of CSR projects/programmes and activities.

1) All eligible organisations/Institutions/Trusts/AOPs/Companies including companies formed with charitable objectives /Boards & Corporations/Govt. institutions/State & Dist. Authorities such as Deputy Commissioners and Zilla Panchayaths, State Regional and other/Dist. level departments, can apply for contribution under CSR provided such applicants are from Zone-I, II & III above.

2) The proposal on CSR should contain the following details:

a) Request letter

b) Name of the projects

c) The cost of the project together with its plan and cost estimates and means of finance thereof.

d) Time limit for completion of the project

e) Copy of the Board of management approval for the project.

f) Copy of byelaws / trust deed/ memorandum of articles of association or such other laws applicable to the concerned institution. The Trust seeking contribution under CSR should have been established without profit motive/share of profits to the trustees.

g) An undertaking letter that the institution will abide by the terms and conditions of the CSR policy of HGML.

h) In case of Trusts/ NGO's, in addition to the approval of the Registrar of societies; it should be ensured that the concerned NGOs/Trusts, also possess certification/recognition from the concerned State/Central Govt. department/s, wherever applicable.

3) Individual proposals have to be within the framework of the CSR projects/programmes/activities.

4) Every CSR proposal has to be projectised, inter-alia covering its activities, time frame, financial requirement, organisational responsibilities / commitments on timely completion of the project.

5) The proposals received may be subject to preliminary inspection by Project Monitoring Unit so as to consider its overall eligibility under the scope of CSR Policy of the Company.

6) The release of funds will be phased out in instalments for the project programme/activities with initial disbursement of 1/3 of the amount approved by the Board and further release of funds phase wise will be determined and advised to project authorities so as to ensure proper utilisation and submission of periodical progress reports of both physical and financial programmes/projects/activities. The projects sanctioned under CSR upto Rs.5.00 lakhs may be considered for disbursement in one instalment.

7) The promoters contribution in each of the projects considered for funding under CSR shall be mandatory, to the extent of 10% in the case of areas earmarked in Zone-I, and 20% in the case of Zone-II and Zone-III.These conditions will not apply for contribution under CSR in the Govt. sector

8) The maximum limit under CSR shall be Rs.1.00 cr per project in case of projects sponsored under CSR by the Govt. or Govt. Institutions and Rs.50.00 lakhs per project in case of projects sponsored by NGO's/Trusts/Others in the private sector. In case of expansion of an existing project sancitoned under CSR HGML,the expansion proposal can be considered as a separate project for the purpose of its consideration under the ceiling limit of CSR. The requirement of the ceiling limits/s will be project parse even if they are taken up by the same trust/s

9) The projects sanctioned under CSR may be documented in the name of HGML wherever applicable, and necessary plaques in this regard be put up by the project/s concerned.

10) The amount released under CSR will be subject to inspection by Project Monitoring Unit at regular intervals till the completion of the project.

11) The organisation will have to furnish utilisation and completion certificate on the projects sanctioned under CSR and an undertaking in this regard has to be furnished by the concerned institution, before availing disbursement.

12) The concerned institution has to refund the un-utilised amount sanctioned and released by HGML under CSR.

13) The institution concerned has to utilise the funds meant for the project in a transparent manner. In case of contribution to Govt. companies/ institutions the provisions of KTPP Act have to be followed in utilisation of funds released by HGML under CSR.

14) In case of project/s partly sanctioned by HGML, the concerned institution has to give an undertaking as to how the balance amount will be met by them for completion of the project/s under CSR.

15) The company reserves the right to recall the amount released under CSR without assigning any reasons in case if it comes to the notice of HGML that the amount released for the project is not utilised for the same.

16) The institution should provide an undertaking before disbursement that:

a) It has not availed contribution under CSR from another company, in cases where the project is fully funded by HGML and with the management contribution.
b) The contribution to be availed from other Companies, will not exceed the cost of the project including the amount sanctioned by HGML.
17) The institution has to furnish alongwith application for sanction under CSR exemption certificate/s if any issued by IT the following cases:

a) Section 80G - Donations

b) Section 35 - Expenditure on scientific research

c) Section 35 AC - Expenditure on eligible projects/schemes
approved by the National Committee of GOI
d) Section 35 CCA - Expenditure on rural development programme

e) Section 35 CCD - Expenditure on skill development projects.

f) Any other exemption certificates as applicable under CSR.

VII.Implementation Strategy

The CSR projects/activities shall be implemented in two ways as under:-
1) Through NGOs/Voluntary Organisations/Trusts themselves.
2) Through concerned State/District authorities such as the Deputy Commissioners of the Dists. and Zilla Panchayaths, State Regional and other/Dist. level departments/organisations.

VIII. Audit

In addition to the continuous monitoring of the activities by a separate Project Monitoring Unit, all the CSR activities and expenses made thereon will be subject to audit by the Company Auditor/s as well.


The CSR policy of the company as above is only illustrative and will be amended from time-to-time within the overall provisions of the Companies Act and rules made thereunder.

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