CSR Policy
Corporate Social Responsibility
The provisions of Section 135 of the Companies Act 2013 started applying to Multani Pharmaceuticals from 2018 onwards, as the company reported pre-tax profits of over five crores by the end of 31st March 2018
Our Emeritus Chairman, Mr Pradeep Multani, believes in integrating social, environmental, and ethical responsibilities in the governance of businesses as it helps ensure long-term success, competitiveness, and sustainability. He claims that CSR makes business sense as companies with an effective CSR policy come to be perceived as socially responsible, which leads to customers preferring their products and services more than others.
Corporate Social Responsibility
Section 135 of the 2013 Act deals with mandatory CSR provisions. It states that compliance with CSR is mandatory if the company (whether private or public) meets any one of the following criteria:
- Net worth of Rs.500 crore or more, or
- Turnover of Rs.1000 crore or more or
- Net profit of Rs.5 crore or more during any financial year.
Since Multani Pharmaceuticals Limited met the last criteria, it had to constitute a CSR committee with three or more directors. Excluding unlisted and private companies, at least one of the three directors in every committee has to be independent.
The CSR Committee of the Board of Multani Pharmaceuticals will review the policy from time to time, based on the changing needs and aspirations of the target beneficiaries, and make suitable modifications when necessary.
Our Board of Directors, our Management, and all our employees subscribe to the philosophy of compassionate care. We believe and act on an ethos of generosity and compassion, characterised by a willingness to build a society that works for everyone. This is the cornerstone of our CSR policy.
Multani Pharmaceuticals, as a responsible corporate entity, aims to supplement the role of the Government in bringing about sustainable development and enhancing societal welfare.
In line with the activities specified in Schedule VII, the CSR committee of Multani Pharmaceuticals wishes to undertake the following projects or programs:
- 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 vocation skills, especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
- promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old-age homes, day-care centres, and other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
- ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources, and maintaining the quality of soil, air, and water;
- 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;
- measures for the benefit of armed forces veterans, war widows, and their dependents;
- training to promote rural sports, nationally recognised sports, paralympic sports, and Olympic sports;
- contribution to the Prime Minister’s National Relief Fund 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;
- contributions or funds provided to technology incubators located within academic institutions approved by the Central Government;
- rural development projects;
- any other measures with the approval of the Board of Directors on the recommendation of the CSR Committee subject to the provisions of Section 135 of the Companies Act, 2013 and rules made thereunder.
Obligatory Provisions
- The calculation of the net profit, for determining mandatory spending of 2%, will be carried out as per the requirements of Section 198 of the Act. However, profits from overseas branches and any dividends received from companies that comply with CSR provisions will be excluded from this calculation.
- The Board of Multani Pharmaceuticals Limited may decide to undertake its CSR activities, as recommended by the CSR Committee, through a registered trust/society/company established by the company or its holding or subsidiary or associate company under Section 135 of the Companies Act, 2013 and rules made thereunder.
- The company must spend at least 2% of the average net profits accumulated during the three immediately preceding financial years. While spending the committed funds, the company shall accord preference to local areas around which the company operates.
- In case Multani Pharmaceuticals fails to spend the designated CSR funds, it shall specify the reasons for the same in its Directors’ Report. The amount spent on CSR activities has to be disclosed through a note in the profit and loss account.
- The CSR activities to be undertaken by Multani Pharmaceuticals will exclude any activity undertaken in pursuance of its normal course of business. Furthermore, activities exclusively done for the benefit of Multani Pharmaceuticals Limited’s employees or their families shall be excluded from the purview of CSR.
- The tax treatment of CSR spent will be in accordance with the Income Tax Act as may be notified by CBDT.
- Any contributions made to political parties u/s 182 of CA,2013 shall not be given any credit. Only projects or activities undertaken in India will be considered part of the mandatory spending limit. Companies can spend up to 5% of total spending in any financial year to build the capacities of their CSR personnel or the agencies through which their CSR activities are carried out.
- The Board’s report of a company shall annex a report on CSR activities undertaken during the year as per the format provided in the Rules. The prescribes format requires the company to provide information concerning the CSR policy of the company, the constitution of the committee, the mandatory amount to be spent on CSR, details of the amount spent, and reasons for any unspent amount.
- The company needs to display their CSR policy and information on CSR activities as per the prescribed format.
Implementation
Our Emeritus Chairman, Mr Pradeep Multani, will take on the role of the mentor, while the onus for the successful and time-bound implementation of the CSR activities/projects is on the CSR team. To measure the impact of CSR work, a social satisfaction survey/audit will be carried out by an external agency.
Multani Pharmaceuticals Limited shall forge collaborative partnerships with the Government, the District Authorities, the village Panchayats, NGOs, and other like-minded stakeholders. It will help widen the company’s reach and leverage the collective expertise, wisdom, and experience of all partners.