CERA - Corporate Social Responsibility Policy

Corporate Social Responsibility Policy

Real progress occurs when privileges are balanced with the responsibilities towards society. Your Company has always laid emphasis on progress with a social commitment. We believe strongly in our core values of empowerment and betterment of not only the employees but also our communities. Following this principle, the company has developed a comprehensive approach towards promoting and facilitating various aspects of our surrounding communities, work-force and their families.

(1) CSR Objective:

The objective of the company’s CSR Policy is to frame guiding principles for identifying, execution and monitoring of CSR activities, its review from time to time, taking necessary corrective actions and reporting of the CSR activities to CSR Committee/Board of Directors. The whole idea is for the betterment of local community, employees and nearby society.

(2) CSR activities:

Cera Sanitaryware Limited is a Public Limited Company, one of the leading Ceramic manufacturer and Bath Room Solution provider in the organized sector of the country and also an active player in non-conventional energy. The company’s production facilities are situated at Kadi, Mehsana district, Gujarat State.

The company has started CSR activities through launching of ‘The Vidush Somany Education Programme’ with the aim of empowering young students by facilitating basic education of high standards. With the support of Government Schools the programme has been successful in benefiting nearly 960 students in Kadi town of Mehsana district, Gujarat State, during the year 2012-13. The company is also conducting special coaching classes for the school students in Kadi, Kundal and nearby villages in North Gujarat at no extra charges with the approval of the District Education Officer (primary) in Mehsana district, Gujarat State. The company is also providing Computer education facilities in the Mehsana district, Gujarat State.

The company has its own registered trust CERA FOUNDATION through which the company proposes to carry out its CSR activities.

(3) Need for the CSR Policy:

Ministry of Corporate Affairs, Government of India has notified Section 135 being provision relating to CSR with effect from 1st April, 2014 and also notified rules namely the Companies (Corporate Social Responsibility Policy) Rules, 2014 which also came into effect from 01.04.2014. The said provisions are applicable to the company having:

(a) net worth of Rs.500 crores or more OR

(b) turnover of Rs.1000 crores or more OR

(c) net profit of Rs.5 crores or more for the year ended 31.03.2014.

Any company satisfying any one of the above criteria shall ensure that the company spends, in every financial year at least 2 per cent of the average net profits of the company made during the three immediately preceding financial years in pursuance of its CSR policy.

The company should give preference to the local area and areas around it where it operates for spending the amount earmarked for CSR activities.

As the company is fulfilling the criteria, as required by the Companies Act, 2013 the company has formed CSR Committee of its directors. The CSR Committee has recommended the CSR policy to the Board of Directors. The Board of Directors, at their meeting held on 12.06.2014 has approved the CSR policy of the company.

(4) Areas of operation and CSR activities:

The company’s production facilities are situated in Kadi, Mehsana district, Gujarat State and as such its CSR activities will be executed in the State of Gujarat and will also donate appropriate amount to the Welfare Trusts, which have undertaken the CSR activities as specified in the Companies Act, 2013 and rules made there under. The areas of operations for CSR activities shall generally be in the district of Mehsana, Gujarat State. However, the areas in the adjoining districts may also be covered if the CSR Committee thinks it appropriate.

The CSR activities to be carried out by the company will be through its operational welfare trust Cera Foundation. However, the same can be decided by the CSR Committee from time to time.

The company proposes to carry out CSR activities in the following functional areas subject to the approval of CSR Committee/Board of Directors from time to time:

– eradicating hunger and malnutrition

– promoting preventive health care

– promoting education, including special education

– employment enhancing vocational skills among women

– empowering women

(5) Allocation of funds:

Cera Sanitaryware Limited shall allocate at least 2 per cent of the average net profits of the company made during the three immediately preceding financial years towards the CSR activities as mentioned here above.

The CSR Committee will spend funds on the CSR activities or programme or projects as may be approved by the CSR Committee and/ by the Board of Directors and/or donate funds to the welfare trusts operational in the CSR activities as specified by the Companies Act, 2013 and rules made there under.

(6) Implementation of the CSR activities.

The primary responsibility for carrying out the CSR activities will be on CSR Committee/Board of Directors of the company duly supported by following CSR execution team:

(1) Shri S.N. Dhaka , V.P. (HR & IR)

(2) Shri Rajesh B. Shah, C.O.O. (Fin & Comm)

(3) Ms. Deepa Vinod H.R. Manager

(4) Ms. Bhumika Patel CSR Officer

The CSR execution team may form small group of employees for carrying out CSR related activities under its supervision as and when the need arises.

If required a local man including villagers and Sarpunch may also be included as a coordinator or as a link man to achieve the target as well as ensuring participation of local representative in formulating the CSR activities in order to obtain the maximum benefit for the community.

In case of need, close coordination may also be undertaken with Central/State/Local Government/NGOs to strengthen the CSR activities. If the CSR Committee is satisfied it may also donate appropriate funds to any NGO or local body if they are operating in line with CSR activities and thereby contributing indirectly for the attainment of desired results in the area of CSR activities.

(7) Monitoring and Review of CSR projects/activities:

All CSR activities shall be monitored by the CSR Committee on quarterly basis. The Review discussions shall be held among the Committee members and/CSR execution team and other participants for further improvement. Feedback will be obtained from the local representatives to ensure that benefits of such activities should reach to the local community. For educational programmmes, the review may be conducted by taking proper exams of the beneficiaries by independent qualified person(s) and corrective action may be taken as and when necessary.

(8) Disclosure in the Board of Directors Report and display on Company’s website.

As required by the provisions of the Companies Act amd Rules made there under, required particulars of the CSR activities will be displayed on the website of the Company and will also be disclosed in the Report of the Board of Directors of the company.

(9) Policy documents to be referred for implementation of CSR activities.

(a) CSR policy of Cera Sanitaryware Limited

(b) Provisions of the Companies Act, 2013 relating to CSR and rules made there under.

(c) Any subsequent notification / circular / amendments / modification / revision / addendum to the aforesaid acts and rules issued by the Ministry of Corporate Affairs, Govt. of India.

(10) General:

(a) The company reserves the right to modify, cancel, add or amend any of the above activities/rules/guidelines within the broad parameters of the provisions of Companies Act, 2013 and rules made there under.

(b) In case of any doubt with regard to any of the provisions of the policy and also in respect of any matters not covered therein, the interpretation and decision of the Chairman of the CSR Committee/ Board of Directors shall be final.

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