Introduction

Corporate Social Responsibility (CSR) is a concept whereby organizations serve the interests of society by considering the impact of their activities on customers, employees, shareholders, communities and the environment in various aspects of their operations.

CSR is a Company’s commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders. CSR is, therefore, closely linked with the practice of Sustainable Development. CSR extends beyond philanthropic activities and reaches out to the integration of social and business goals.

DEFINITIONS

1. Corporate Social Responsibility (CSR) means and includes but is not limited to:
   Project or programs relating to activities specified in Schedule VII to the Companies Act, 2013 (‘Act’)
2. CSR Committee means the Corporate Social Responsibility Committee of the Board referred to in Section 135 of the Act.
3. CSR Policy relates to the activities to be undertaken by the Company as specified in Schedule VII to the Act and the expenditure thereon.
4. Net profit means the net profit of the Company as per its financial statement prepared in accordance with applicable provisions of the Act (Section 198), but shall not include the following viz;

1. (i) Any profit arising from any overseas branch or branches of the Company, whether operated as a separate company or otherwise and
2. Provided that net profit in respect of a financial year for which the relevant financial statements were prepared in accordance with the provisions of the Companies Act, 1956 shall not be re-calculated in accordance with the provisions of the Act.

VISION

R. K. Transport and Constructions Limited (“the Company”) primarily recognizes that, a Company, being a business citizen, should go beyond having profit-making objectives. It should also develop the society within its reach and accordingly, take initiative to contribute towards welfare of various segments of society by undertaking socially, environmentally and economically. The company’s vision is to align with that of the society and integrate sustainable development of the community and society into the company’s business model.
In alignment with vision of the company, R. K. Transport and Constructions Limited, through its CSR initiatives, will continue to enhance value creation in the society and in the community in which it operates, through its service and Community, in fulfillment of its role as a Socially, Responsible Corporate, with environmental concern.

OBJECTIVE

This CSR Policy aligns with Section 135 of The Companies Act, 2013 and is in accordance with the Companies Rule, 2014 as amended from time to time. R. K. Transport and Constructions Limited undertakes CSR initiatives to:

1. Promote principles of social responsibility and inclusive growth through awareness and support
2. Strengthen the trust of its stakeholders, including society at large.

FOCUS AREAS

The R. K. Transport and Constructions Limited will undertake CSR activities that

• Promote education and livelihood enhancement.
• Promote food for life
• Ensure environmental sustainability.

R.K. Transport and Constructions Limited will undertake CSR activities as per the above focus areas and these will include:

• Skills training for youth.
• Livelihood enhancement projects focusing on rural communities.
• Environmental, safety and awareness sessions for micro, small and medium enterprises.
• Any other project approved by Board of Directors and aligned to Schedule VII of Section 135 of the Companies Act, 2013 and

CSR EXPENDITURE

The annual CSR Budget will be approved by the Board of Directors on recommendation of the CSR Committee. Two percent of the average net profits of the Company for three immediately preceding financial years will be earmarked as CSR Budget

In case of the Company spends an amount in excess of requirement of the CSR Budget specified for the said financial year, such excess amount may be set off against the requirement to spend CSR in immediate succeeding three financial years. In such case, the Board of Directors will pass a resolution to that effect.

GOVERNANCE STRUCTURE, ROLES AND RESPONSIBILITIES:

The Company will constitute a CSR Committee with three or more directors, of which at least one director will be an Independent Director. Details of CSR Committee members are provided in Roles and responsibilities of the CSR Committee and the Board of Directors with respect to CSR is given below:

The Board of Directors will:

• Approve CSR Policy of R.K. Transport and Constructions Limited, based on recommendation of the CSR Committee
• Review and monitor CSR Policy on the recommendation by the CSR Committee of the Board as per the Section 135 of the Companies Act,2013
• Review and satisfy itself that the funds so disbursed have been utilized for the purposes and in the manner as approved by it and the Chief Financial Officer or the person responsible for financial management shall certify to the effect
• Ensure that the administrative overheads shall not exceed five percent of total CSR expenditure of R.K. Transport and Constructions Limited for the financial year
• Disclose the composition of the CSR Committee, CSR Policy and CSR projects approved by the Board on R.K. Transport and Constructions Limited’s official website

The CSR Committee of the Board will:

• Recommend to the Board a CSR Policy
• Formulate and recommend to the Board, an annual action plan in pursuance of its CSR Policy. The annual action plan will include:
  • The list of CSR projects that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act
  • The modalities of utilization of funds and implementation schedules for the projects
  • Monitoring and reporting mechanism for the projects and
  • Details of need and impact assessment, if any, for the projects undertaken by R.K. Transport and Constructions Limited.
• Formulate and recommend to the Board, an annual action plan in pursuance of its CSR Policy. The annual action plan will include:
• Monitor the spends and implementation of the CSR projects

CSR MONITORING AND REPORTING FRAMEWORK:

In compliance with the Act and to ensure funds spent on CSR Activities are creating the desired impact on the ground a comprehensive Monitoring and Reporting framework has been put in place.

The CSR Committee shall monitor the implementation of the CSR Policy through periodic reviews of the CSR activities.

The respective CSR personnel will present their annual budgets alongwith the list of approved CSR activities conducted by the Company to the CSR Committee together with the progress made from time to time as a part of the evaluation process under the monitoring mechanism.

CSR COMMITTEE

Members of CSR Committee:

1. Mr. Vijay Agrawal Dashrath Prasad Mishra – Independent Director (Chairman)
2. Mr. Dashrath Prasad Mishra– Independent Director
3. Mr. Amar Agrawal - Director

FREQUENCY OF MEETINGS:

The meetings of the Committee could be held at such periodic intervals as may be required.

QUORUM

Minimum two (2) members shall constitute a quorum for the Committee meeting.

CHAIRMAN

In the absence of Chairman, the members of the Committee present at the meeting shall choose one amongst them to act as Chairman.

MINUTES OF THE COMMITTEE MEETING:

Proceedings of all meetings must be minuted and signed by the Chairman of the Committee and tabled at the subsequent Board and Committee meeting.

DISCLOSURE OF THE POLICY:

The CSR policy recommended by the CSR Committee and approved by the Board shall be displayed on the Company’s website and shall be disclosed in the Board’s report as well.