Corporate Social Responsibility (CSR)
Scope of CSR
Every Company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee.
Since average net profit of the Company is rupees five hundred crore or more, Company is required to form Corporate Social Responsibility Committee as provided in Section 135 of the Companies Act, 2013 and rules made thereunder. Also, Company shall spend 2% of the average net profits of the company made during the three immediately preceding financial years on CSR activities.
In the absence of Corporate Social Responsibility Committee and the CSR policy during the financial year, the Company could not spend 2% of the average net profits of the preceding three years, i.e FY ended 31-3-2014, 31-3-2013 and 31-3-2012, which amounted to Rs. 27.83 lakhs. The CSR Committee will ensure compliance of the CSR provisions in the current year as required by section 135(2) of the Companies Act, 2013 read as the Companies (CSR Policy) Rules, 2014.
A specific budget will be allocated for CSR activities. The amount will be approved by the Board on the recommendation of the CSR Committee.
The Company’s involvement in its CSR project and details of work executed and progress made will be communicated through its websites, annual reports, in-house journals and media.
Treatment of Surplus
It is specifically stated here that surplus, if any, arising out of CSR projects or programmes or activities shall not form part of the business profit of the Company and shall be redeployed in the projects.
The Company will set up a monitoring process for implementation of the CSR projects and periodic reporting to the CSR Committee in compliance with the requirement of Section 135 of the Companies Act, 2013.
The Company expects participation of its employees in the CSR projects it undertakes. The projects are expected to create a strong bond between the community and the local set up where the Company runs its hotel. The Company would be actively involved in skill enhancement of boys and girls in hospitality business and opportunities could be provided to the deserving ones for employment in the Company.
Composition of CSR Commitee
The composition of the CSR Committee is as under:
- Mr. Suraj Shah- Chairman
- Mr. Dinesh Khanna
- Mr. Jagdish Khanna
The CSR Committee will meet at least twice a year to review progress in the chosen activity and will report to the Board annually.