CSR Policy

Corporate Social Responsibility policy adopted by CreditAccess Grameen Limited (Formerly known as Grameen Koota Financial Services Pvt Ltd)

1. Introduction

CreditAccess Grameen Limited (‘the Company”) in compliance with Section 135 of the Companies Act, 2013, is incorporating in its structure Corporate Social Responsibility projects through this Corporate Social responsibility (CSR) Policy and includes guiding principles for selection, implementation and monitoring of activities as well as formulation of the Annual Action plan. This Policy covers all the internal dimensions of the CSR structure and further captures and sets out the process of implementation of the CSR related activities.

2. Objective

To ensure implementation of a policy framework that stimulates, fosters, recognizes, supports and facilitates continuing growth and application of the best practice in CSR.

To bring sustainable development in the identified areas (as specified below) selected by the CSR committee as the focal point of the Company’s CSR Policy.

3. Scope

This Policy shall apply to all the CSR projects undertaken in any branch or office of the Company, whether such project is executed in collaboration with any other company or on its own.

4. CSR Committee

Board of Directors of the Company shall constitute a Board Committee to govern and oversee the CSR activities of the Company. The Committee shall be headed by independent directors and majority of committee members shall be of non-executive nature.

The CSR Committee of the Board will meet at least once in every 6 (six) months in a year.

The Committee shall formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy, which shall include the following, namely:

1. the list of CSR projects or programmes that are approved to be undertaken during the relevant financial year in areas or subjects specified in Schedule VII of the Act;
2. the manner of execution of such projects or programmes as specified in the Companies (CSR Policy) Rules;
3. the modalities of utilisation of funds and implementation schedules for the projects or programmes;
4. monitoring and reporting mechanism for the projects or programmes; and
5. details of need and impact assessment, if any, for the projects undertaken by the company:

Provided that Board may alter such plan at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect.

5. Identified Areas for CSR Projects

 In consonance with the activities specified in the Schedule VII of the Companies Act, 2013, the Company’s CSR Committee has identified the below areas, for implementation of its CSR activities:

• Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water.
• Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly and the differently abled and livelihood enhancement projects.

Provided, notwithstanding the above, there is no restriction on the Company to undertake such other activities as may be allowed under Schedule VII of the Companies Act, 2013.

6. Implementation

The Company shall implement its CSR activities through CreditAccess India Foundation, a Section 8 company, which is incorporated specifically for the purpose of implementation of CSR activities of group companies.

7. Locus of CSR Projects

The CSR Projects shall be implemented in all the operational areas of the Company as the Company expands its operations.

8. Structure of CSR Projects

The Company’s CSR Projects neither include any activity undertaken in the normal course of business of the Company nor include contribution to any political party under Section 182 of the Companies Act, 2013.

For the accomplishment of the above identified areas under Point 5 above, the Company shall work in partnership with CreditAccess India Foundation to develop & implement the projects as suggested by the CSR Committee and duly approved by the Board of Directors.

9. Finance for CSR Projects

The Company shall present to its CSR Committee the Annual Plan of activities along with budgets beginning of every financial year.

CSR Committee shall present to the Board the details of the projects & budgets approved. The Company shall release 50% of the amount provided within 30 days of approval of the annual audited financial statements and balance within 6 months of first release after ascertaining the progress.

The Company shall submit a half yearly progress and status report on the activities and budgets utilized in line with the CSR requirements under the Companies Act to the CSR Committee.

The Company may engage an external evaluator (either CA or any other professional firm) to evaluate the project achievements and verify & confirm utilization of the budgets on an annual basis at its own cost.

Overhead expenditure incurred shall not exceed five percent of the total CSR contribution made by the Company in the respective financial year or such other percentage as may be permitted from time to time.

10. Reporting and Monitoring

CSR Committee of the Company shall monitor the implementation of the CSR projects as required under the Companies Act 2013 and whether the funds provided by the Company are utilized in accordance with the approved plans and report to the Board of Directors.

CreditAccess India Foundation shall provide detailed report of CSR activities carried out as well as budgets utilized in the prescribed format to the Company’s CSR committee.

The Board of Directors shall submit a report in the prescribed format which shall be annexed to the Directors’ Report pursuant to sub-section (3) of the section 134 of the Companies Act, 2013.

If for any reason CreditAccess India Foundation is not able to utilize the entire funds provided by the Company, such unutilized funds shall be treated in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as may be amended from time to time.