CSR Policy

1. Objective :

In terms of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time, this policy on Corporate Social Responsibility of the Company has been formulated by the Corporate Social Responsibility Committee of the Company and approved by the Board of Directors vide its resolution dated 29th December,2016.This Policy shall act as a guideline for the Company for undertaking Corporate Social Responsibility (“CSR”) activities enumerated under Schedule VII of the Companies Act, 2013 and in particular for supporting local communities on a variety of socially desirable activities with a view to enable high impact of the same and to ensure visible and measurable outcomes of the funds deployed towards such activities.

2. CSR Mission :

Khyati Chemicals will focus its CSR efforts on promoting preventive health care and sanitation and making available safe drinking water.The Company shall also focus its CSR efforts for General Public particularly financially weak and physically Challanged. The Company aims for the upliftment of the underprivileged people.

It may, however, undertake and support projects/ programmes in the other areas as may be approved by its Committee that also are permissible activities as per the relevant provisions of the Act and the Rules.

3. Board of Directors Role:

The Board of Directors (“Board”)of the Company would constitute and reconstitute the CSR Committee (“Committee”) as may be considered necessary. The following shall be the functions of the Board:

  • The Board shall, after due consideration, approve of any changes or amendments to the Policy.
  • Disclose contents of the Policy in its report and also place it on the Company's website.
  • Approve the projects and allocation of funds under the Policy.
  • Ensure that the activities as are included in the Policy are undertaken by the Company.
  • Ensure that the Company spends, in every financial year, at least 2% (two per cent) of the average net profits of the Company made during the 3 (three) immediately preceding financial years, in pursuance of its Policy.
  • Ensure that the Company gives preference to the local area and areas around it where it operates, for spending the amount earmarked for the activities under this Policy.
  • Delegate the powers to the officials of the Company for timely compliance with the applicable laws and rules.
  • If the Company fails to spend the amount earmarked for the activities specified under this Policy, the Board shall, in its report made under the relevant provisions of the Companies Act, 2013, specify the reasons for not spending the amount.

4. CSR Committee Role:

In compliance with the requirements of the Companies Act, 2013 and the Rules made thereunder, the Company has constituted a CSR Committee consisting two Directors.

1.Rajiv N Bhandari
2.Shubha R Bhandari

The Committee shall indicate activities that are in compliance with Companies Act, 2013 and the Rules made there under. The Committee shall decide projects to be undertaken as well as allocation of Funds.

5. CSR Expenditure :

The Company spends, in every financial year, at least 2% (two per cent) of the average net profits of the Company made during the 3 (three) immediately preceding financial years. The term “average net profit” shall be calculated in accordance with the provisions of Section 198 of the Companies Act, 2013.

CSR expenditure shall include all expenditure incurred by the Company including contribution to corpus for projects or programmes relating CSR activities approved by the Board, in accordance with this Policy as well as the Companies Act, 2013 but shall not include any expenditure on an item not in conformity or not in line with activities which fall within the purview of Schedule VII of the Companies Act, 2013.

The surplus arising out of the CSR activities, if any, will not be considered as a part of the business profits of the Company. The CSR projects or programmes or activities undertaken in India only shall amount to CSR expenditure.

6. Implementation Monitoring:

The Committee shall ensure a transparent monitoring mechanism for implementation of the CSR activities undertaken by the Company.

7. Disclosure:

Company shall include in its Annual Report, the following information:

  • An overview of the CSR activities.
  • Average Net Profit of the last three Financial Years.
  • Composition of the CSR Committee.
  • Prescribed expenditure for CSR activities.
  • Details of the amount spent during the financial year including total amount to be spent for the financial year, amount unspent if any, manner in which the amount spent during the financial year in the prescribed format.
  • In the event that the requisite sum (at least 2% of the Company’s average net profits made during every block of three years, on activities permissible under the Companies Act, 2013 in pursuance of the Company’s Policy) is not spent in any given year, the reasons for the same shall be specified in the Board’s Report.
  • Responsibility statement of the Committee that the implementation and monitoring of the Policy is in compliance with the objectives of the Policy.

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