CSR Polici - Agarwal Coal Corporation

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AeRnwnl Conl CoRpoRRrroN Pvr. LrD.
Regd. Office: "Matra Kripa",2 Chameli park, Near Goyal Nagar, Ring Road, lndore_452016
Corporate Office: "Agarwal House", 2nd Floor, 5; yeshwant Colony, lndore-452003
CSR
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CSR
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1. Conaparuy pRonle
Overview
The flagship company
ofthe Aqarwai Group with a turnover of INR Two
Thousand Five Hundred crores
is one of the rargest ,mporter and trader
of coar in India. In the rast fiscar year the
company impo,-ted
nearly Eight Million Tonnes of coal in the
Indian Subcontinent.
However, Group is having consortium
of companies which operate together backing
Agarwal coar in its
endeavors They include the Indian sister
concerns, Agarwar Fuer corporation pvt.
Ltd.,
Agarmin coar
washery pvt Lfd. ,the internationar partner
based in siigapore Agarwar coar corporat,on
pte. Ltd. &
(5)
the transportation partner Agarwal Transport
Co rporatio n- pvt. Ltd.
The Two Hundred emproyee's
strong consortium has an experience
the coa industry, it has operations at Twenty-Four
Indian & Tw
of more than thirty_five years
in
from Richards Bay in south Africa. The
consortium ,,,r, .*::1;_';f,;::1"ffi.#.::"i"..:.:
of the Industries. The companies together
offer a comprete mine to prant
strategicalry in crose reach
::#ilr::'#at'rtt:Iers
which include cement, steet, power,
Textires, Brick Chambers,
p"p",'l.o
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Agarwal Coar imports high quarity
non-coking steam coarfrom Indonesia
& 50uth Africa; it arso dears with
aii subsidiaries of Coar India Ltd. through
E-Auction. At the coar
f..rr.,.n.r, uno shipping contracts done
by the company are in symphony with
internationa,y procraimed coar price
indices and shipping freight
indices in order to qet the best possibre
dears in the internationar markets.
As a part of the risk
management policy the company follows
a strong and dynamic hedging policy
in order to reduce the
impact of the highry voratire foreign
exchange murtut. agarwur coar emproys
sophisticated enterprise
resource planning software (ERp)
throughout
vs:'irvur its
rrr uu)rrress
business iodel
llrocel
seamlesslyand
!_
efiiciently.
''
to rntegrate all our
r
business processes
During its long voyage since its incorporatjon
in 1973 till date, the company
has grown and made
miraculous progress under the expert
direction and farsighted business
approach of Mr. Vinod K.
Agarwal - The Managing Director.
He possesses commendable business
intellect
determ ination.
CSR
and indomitable
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Policy
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Services
Agarwal Coal Corporation Pvt. Ltd. is a leading supplier of coal in India, it offers a complete mine to plant
solution to its customers. Agarwal Coal imports various qualities of coal from Indonesia & South Africa, it
also trades in various qualities of Indian Coal, The company with the assistance of its sister concern
Agarwal Transport Corporation Pvt. Ltd. has presence in the entire logistics chain involved in the supply of
coal which ensures effortless and timely delivery to the customers. The different formats of delivery which
the company offers are
High Seas Sale
o
Delivery at the Port
o
r Delivery at the Plant
Tax-Paid Sale
o
o
Delivery at the Port
Delivery at the plant
The company in all also stocks a million tonnes of coal at various Indian ports throughout the year,
it
maintains high quality standards with the coal being inspected at various stages by recognized
and
accredited inspection agencies. The company also provides expert advice to the industries on
the best
type of coal suited for the plant & inventory management. Being one of the highest volume suppliers
of
coal Agarwal Coal has a distinctive edge over its competition in every aspect of the business.
Group Ventures and Activities
Group believes that information technology is the future of business and thus he has
amalgamated
information technology in a large number of business processes. His business interests are
spread across
the following verticals:-
Coal Trading
& Transportation
Agarwal Coal Corporation Pvt. Lto.
Agarwal Coal Corporation (S) Pte. Ltd.
Agarwal Fuel Corporation Pvt. Ltd.
Agarmin Coal Washery Pvt. Ltd.
Agarwal Transport Corporation pvt. Ltd.
CSR
Policy
Vehicle Finance
.
Ad Manum Finance Ltd.
Education
Chameli Devi Group of Institutions
Chameli Devi Institute of professional Studies.
Construction & Real Estate
Agarwal Real City Pvt. Ltd.
Sanjana Park
Emerald Court
Wind Power Generation plants
Mr' Vinod K Agarwal MD of the Agarwal Coal is actively involved in
various social service activities in the
capacity of trustee
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o
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guardian of various social organizations viz.
InternationalVaishyaFederation
Friends of Tribal Society, Indore Chapter.
Salasar Dham Vikas Samiti, Salasar, Rajasthan
Siddhapeeth Shree Annapurna Ashram Charitable Trust, Nashik
Sanstha Agrasen Sewa, Indore
Jila Jind Salasar Dharmarth Trust, Jind, Haryana.
Lala Ramkumar Agarwal Aushadhalaya Evam Sewa Sadan,
Salasar.
Chamelidevi Agarwal Sewa Sadan, Salasar.
Agarwal Samaj Kendriya Samiti, Indore.
Agarwal Youth Federation , Indore
Lion's Greator club oflndia
CSR
Policy
2. Group's Social Activities
Whenever Agarwal Coal takes a step forward towards profitable growth, it also makes a sincere effort to
bring the society a step forward through its social initiatives. In order to fulfill its responsibility towards the
society the company invests a sizable part
development of the county at large.
of its net profit towards the welfare of the society & the
To earn from every penny one invests in business is difficult but to yield the desired results from every
penny invested in philanthropic initiatives is even more difficult thus in order to maximize the benefits
to
the society from its initiatives Agarwal Coal has chalked out the following areas of interest for its CSR
initiatives.
Health Care
Inf rastructura I development
Education
Environmental Protection
Health Care
Sound Health is the basic need of human sustenance, thus Agarwal Coal has taken the following
step; to
improve the infrastructure and equipment associated with health care Donation of Dialysis Machines to Robert Nursing Home,lndore
Renovation of Operation Theatre, Robert Nursing Home Indore
Donation of Mobile Limb Replacement Centre, Lion,s Greater Club oflndla
Lala Ram Kumar Agarwal Aushdhalaya, Salasar Rajasthan
A facility set up to provide basic health care facilities to the population residing in the rural
su
areas
rrounding Salasar.
The M.D. of Agarwal Coal Mr. Vinod Agarwal has also established a foundation in association
with the
members of the Agarwal Samaj, which intends to provide free health insurance to the hundreds
of
needful
who are deprived of the best medical facilities.
CSR
Policl
Infrastructural Development
Agarwal Coal is of the belief that good infrastructure is the corner stone of community
development, thus
Agarwal Coal has built some sizeable projects in order to create world-class infrastructure
for the benefit
of a ll.
.
Chameli Devi Agarwal sewa sadan, Salasar Dham Rajasthan. A one hundred rooms
lodging
facility with modern amenities for the pilgrims who travel from far off places to Salasar Dham.
' chameli Devi
Agarwar sabha Graha Evam Udyan, sarasar Dham
Rajasthan.
A high standards community hall set up along side a park in order to facilitate community events,
recreation, weddings, religious gatherings and various other types of events that
population wants to conduct. The park also comprises of a staggeringly
Statue.
.
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the
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rurar
(61 Feeo Hanuman
Donation of Computer Systems, Mahesh Drishtiheen Kalyan Sanstha,Indore
Renovation of Hostels, Madhya pradesh Drishtiheen Kalyan Sangh, Indore
The company is supporting the Annapurna Trust, Indore in building a massive religious
hermitage and
temple at Nashik, Maharashtra.The company has arso supported Agarwar samaj
to a great extent in
building up necessary infrastructure which benefits the masses.
Education
Agarwal Coal has partnered with a foundation called 'Friends of the Tribal Society,
which does the
amazing job of imparting education to tribal children dwelling in remote areas
which are
totally aloof
from the urban and even the rural setup, Agarwal Coal supports fifteen such schools
with the help of FTS.
Agarwal Coal also supports various other organizations in their endeavor of
providing the necessary amenities such as schoor infrastructure, books
underprivileged students.
supporting education by
&
paying fees for the
Environmental Protection
"Energy Conservation is the order of the day.,, In this era when the whole world
is aiming at energy
generation through non-conventional energy resources, we have installed
totally nine wind power
generation plants in Madhya pradesh, Rajasthan and Maharashtra generating
Seven MW of electricity,
with a view to promote the cause of environment protection.
CSR Polic
3. Conponnrr
socnr
Corucrpr:
Rrspor{srerr.rrv (csR) pHrr.osopuv
&
corporate social Responsibility refers to the responsibility
to society that extends beyond stockholders
or
investors in the firm. That's the responsibirity of
course is to make money or profits for
the owners. These
other sociar stakeholders typica[y incrude consumers,
emproyees, the community at rarge, government
and the natural environment.
corporate Social Responsibility is strongly connected
with the principles of Sustainability.
An organization
shourd make decisions based not onry on financiar
factors, but arso considering the sociar
and
environmental consequences As a corporate
citizen receiving various benefits out of
society therefore it
is the co-extensive responsibirity to pay
back in return to the society in terms
of herping needy peopre by
providing foods' crothes etc, keeping the
environment crean and safe for the society
iy ,ar.r"ring to tr,,"
best industriar practices and adopting best
technorogies, and so on. Jt is the company,s
intent to make a
positive contribution to the society in which
the Company operates.
CSR
Polic/
4. PnrRMele
Promoters of the company are already involved
in various social activities and actively
contributing
towards society especially in following areas:
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Education
Healthcare
Charity and donations
Relig ious
Now' the companies act, 2013 has introduced the
idea of csR to the forefront and through
its discloseor-explaln mandate, is promoting greater transparency
and disclosure. Schedule VII of the act, which
lists
out the csR activities, suggests communities
to be the focal point. on the other hand, by discussing
a
company's rerationship to its stakehorders and integrating
csR into its core operations.
Agarwal Coal takes a step forward towards profitable
growth; it also makes a sincere effort
to bring the
society a step forward through its social initiatives.
In order to fulfill its responsibility towards
the society
the company invests a sizable part of its net profit
towards the welfare of the society &
the development
of the country at large.
To earn from every penny one invests in business
is difficurt but to yield the desired resurts
from erery
penny invested in philanthropic initiatives
is even more difficult thus in order
to maximize the benefits to
the society from its initiatives
The Companies Act, 2013
In India, the concept of CSR is qoverned by
crause r.35 0f the companies Act, 2013,
which was passed by
both Houses of the parriament, and had received
the assent of the president of India on
29th August 2013.
The CSR provisions within the Act is applicable
to the companies with an annual turnover
of 1000 crore
INR and more, or a net worth of 500 crore
INR and more, or a net protit of 5 crore
INR and more.
The new rures, which wilr be appricable from
the fiscar year 2o!4-r5 onwards, also require
companies to
set-up a csR committee consisting of their board
member, including at reast one independent
director.
The Act encourages companies to spend
at least 2% of their averaqe net profit in
the previous three years
on csR activities. The CSR rures define net profit
as the profit beiore tax as per the books
of accounts,
excluding profits arising from branches outside
India.
The Act rists out a set
of activities erigibre under csR. companies may
imprement these activities taking
into account the local conditions after seeking
board approval. The indicative activities
undertaken by company under CSR have been
specified under Schedule VII of the Act.
CSR
Policy
which can be
Governance
Clause 135 of the Act lays down the guidelines to be followed by companies while developing their
CsR
programme. The csR committee will be responsible for preparing a detailed plan on CsR
activities,
including the expenditure, the type of activities, roles and responsibilities of various stakeholders and
monitoring mechanism for such actlvities. The CSR committee can also ensure that all the kinds of income
accrued to the company by way of CSR activities should be credited back to the community or CSR
corpuS.
Reporting
The new act requires that the board of the company shall, after taking into account the recommendations
made by the CSR committee, approve the CSR policy for the company and disclose its contents in their
report and also publish the details on the company's official website, if any in such manner as may
be
prescribed. If the company fails to spend the prescribed amount, the board, in its report, shall
specify the
reasonS.
CSR:
Planning and strategizing
clause 135 of the companies Act, 2013 requires a csR committee to be constituted by the board
of
directors. They will be responsible for preparing a detailed plan of the CSR activities includlng, decisions
regarding the expenditure, the type of activities to be undertaken, roles and responsibilities
of the
concerned individuals and a monitoring and reporting mechanism. The CSR committee will also
be
required to ensure that all the income accrued to the company by way of CSR activities is credited
back to
the CSR corpus.
This is an excellent starting point for any company new to csR. In case a company already practices
csR,
this committee should be set up at the earliest so that it can guide the alignment of the company,s
activities with the requirements of the Act.
For effective implementations, the CSR committee must also oversee the systematic development
of a set
of process and guidelines for
CSR
to deriver its proposed value to the company, incruding:
One-time processes such as developing the C5R strategy and Operationa lising the
institutional
mechanism
Repetitive processes such as the annual CSR policy, due diligence of the implementation partner,
project development, pro.iect approval contracting, budgeting and payments, monitoring,
impact
measurement and reportinq and communication
A set of such enabling processes, their inter-relationship and the sequence in which they need
to be
developed have been identified below:
CSR
Policy
4
€SR Process
Developing a CSR Strategy
And policy
O
perationa lising the
lnstitutional mechanism
Due diligence of the
lmplementation partner
Project development
Project Approval
Fina lising the arrangement with
the implementing agency
lntpleme ntation pa rtn er
Progress monitoring
And reporting
@
lmpact measurement
Report consolidation
and communication
while developing these processes, no standard set of recommendations
exist for all companies. However,
an overview of the required details, the actjvities required
to be completed for each of these processes
along with some additional guidance on critjcal issues has been provided
below:
Developing a CSR strategy and poticy
The companies Act, 2013 requires every company to put
out its csR poricy in the pubric domain. The
guidance provided in the Act and the rures on what constitutes
a csR poricy are that it shourd:
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Exclude normal business activities of the company.
contain a rist of the csR projects or programmes which the
company pran to undertake during
the implementation year
while speciiying the annuar report requirements, the rures go
on to say is that the company must provide:
CSR Pol
A brief outrine of its csR poricy, incruding ,the statement
of intent refrecting the ethos of the
company, broad areas of CSR interest and an overview
of activities to be undertaken,
A web rink to the csR poricy incruding'the fu, rist of projects,
activities and programmes
proposed to be undertaken by the company,
since most of the development requires long-term
commitments and their impact often takes a
whlle to
accrue, a good csR practice requires that a company
that is serious about its csR should deverop
a rongterm (three to five years) vision and strategy which is reviewed
annuafly and the annuar basis.
To avoid confusion regarding terms rike poricy,
strategy, project and programme, brief expranation
has
been provided here:
'
'
c5R strategy refers to what the company expects
to achieve in the next three to five years and
incorporates the vision, mission and goars on
the trroader rever. It arso entrairs r,o* ii ptun,
to
achieve these in terms of organization and approach.
c5R poricy refers to what the company expects to
achieve over the next year. This is arigned
with
the requirements of the Companies Act, 2013.
Programme goars
wi, be achieved through a series of
individuar projects and,
a
series of
individuar projects and, a project.refers to a set
of interventions, typicary in a specific
aeography
and addressing a specific stakehorder group,
with a definite set of goars, beginning and
end and a
b-dget attached to il.
Each project in turn
project goals.
wi,
consist of a number of activities.
A, of which contribute towards the
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CSR
Policy
5. colrposrrroN oF THE csR
Collurrer
A CSR committee of the board rn
out of whom at reast one is an independent director.
This composrtron wi1 be discrosed in the
boards'
report as per sub-sections (3) of section 134.
The CSR committee shall:
- formulate and recommend a
C5R poricy
Schedule VII of the Act.
to the board indicating the activities
as specified in
- recommend the amount of expenditure to be
incurred on the activities indicated in the poricy
monitor the CSR policy regularly.
Agarwal Coal is a closely held private limited
company. Thus minimum two directors
are necessary for
com position of CSR committee.
The CSR committee of the board comprises
of:
1.
2.
3.
Shri Vinod K Agarwal _ MD
Shri Surendra prasad Shukla _ Director In
charge
N4r. Ivl. R. Sheikh _ Secretary of the
committee
6. RrspolsrBlrrry
oF THE csn
Couuunrrr
The CSR committee shall:
'
Formurate and recommend to the board, a csR poricy, which
shal indicate the activities to be
u
r
.
nd erta ken
Recommend the amount of expenditure to be incurred on the activities
referred above
Monitor the
CSR policy of the company
from time to time
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CSR PoliCy
7. CSR AcrrvrrrEs
The first step towards formalizjng CSR projects
in a corporate structure is the constitution
committee as per the specifications in the companies
Act, 2013 crause 135.
List of activities under Schedule VII
CSR PoliCy
of a
CSR
CsR committee after studied the local areas situations finds the scope
of CSR activities can be undertaken
and recommends the following activities:
EDUCATION:
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Promotion of education
Vocational skill training for enhancement of employability
Empowering women
Support t o Technical /Vocational courses for their self-development.
Awareness programmes on girl education.
Counseling of parents
special attention on education, training and rehabirjtation
children/persons.
of mentaly & physicafly chalenged
'
spreading legal awareness amongst people and disadvantageous sections
of the society about
their rights & remedies available.
'
Promotion of rechnical
r
courses in Engg, Science, Commerce, Nursing, Management, Medicine.
Provide fees for a period of one year or more to the poor and merjtorious,
preferably girl students
& Professional Education by supporting educational institutions offering
of the co|ege in the operationar area of the company to enabre them to get
uninterrupted
education.
'
Provide schorarship for Tution fee, Bus fee, Hoter Feer etc. for a period
of one year or more to the
poor and meritorious, preferabry girr students of the coflege in the
operationar area of the
Company to enable them to get uninterrupted education.
SPORTS
AND CULTURE
Promotion of sports and curturar Activities at rocar rever and nationaly
recognized sports.
Promotion/Development
of sports activities in
nearby virages by conducting
tournaments like Table Tennis, Football, Kabaddi and Khokho etc.
Providing sports materiars for FootbaI, VoleybaI, Hockey sticks etc.
or
sponsoring
to the younq and
tarented
villagers.
Promotion of Nationar rever teams. sponsorship of Nationar rever events
rerated to technicar and
management ed ucation / skill.
sponsorship of Culturai event to restore Indian curturar rraditions and Varues.
Possibility of providing facilities for physically handicapped persons
may be explored.
CSR
Policy
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Construction
construction of dwelling units for economically weaker sections to reducing inequalities faced by
socially and economically backwards groups.
construction of hostel accommodation for women or individuals of the age of 65 years or more.
Rural development projects and slum area development.
CSR ncuvITIEs To BE UNDERTAKEN THROUGH TRUST
The committee identifies and recommends the activities can be implemented through the registered trust
namely MAA CHAIRITABLE TRUST (MCr) promoted by Agarwat group only. Managing trustee is Mr vinod
K Agarwal. This trust has established in 2002 and is running engineering and management institutes.
The
detail of institutes is as under:
Year of Establishment
2006
Cou rses
B,E.
Sanctioned Intake
2550
Approved by
AICTE, New Delhi
Affi iated by
RGPV, Bhopa I
Name of The Director
Dr. S. Rajashekharaiah
Name of the Dean
/
Principal
&
2014
IVl
BA
Dr. C.N.S.
B.S.C., B.COM.
&
B.B,A.
300
& DAVV,Indore
Mu(hy
MP. GoVt.
DAVV, Indore
Dr. S. Rajashekharaiah
Dr. Gu lnar Sharma
L
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Cornmittee has visited institute and conducted various meetings with director, dean and academic heads
of the institutions to find out the following area of Above csR activities which can be undertaken:
1.
The Trust is operating a fund in the name of Chameli Devi Education fund. This fund is actually
established io give subsidy in tution fee mainly and other fees also. There is a separate law, rules
and regulations have been framed for providing subsidy to meritous or needy students. so
committee recommends board to contribute the amount in this fund. Contribution wlll be orven
as per need.
2.
The Committee recommends to contribute the amount through MCT for undertaking identified
various CSR activities (point no 6) like scholarship, vocational courses, promotion of sports and
cultural activity etc.
CSR
Policy
.
3.
The committee finds that a course named srx srGMA
Green Bert and MICRosoFT ED_ VANTAGE
pRoGRAr\4 can be considered
as csR activities to enhance the emproyabirity
of the students of
this institute. Details of these courses are as under;
Basic level of GREEN BELT
International Association for Slx Sigm- Ce;ifk-atG
Lean Sigma Consultants
Recog nition and acceptabjlity
Gtobalty recognized and accepted by
Training mode
At the
Recognition and acceptability
Globally recognized and accepted by all the corporates
a industries
Training mode
off campus support
CSR
PoliC/
institutes
by expert
iitihE corporate-lEIi'uiiries-
trainers assigned
by Lean Sigma
8. CorusonrruM oR pool oF coMpANIEs
The committee finds out the possibility of pooling
of resources for csR activities. committee identified
the two other group companies which quarify for -sR
under section r.35 0f the act. These .orp.niu,
small size company and having nominal amount to contribute
in csR activities. The committee finds that
if there wi, be a consortium of company works for csn
tiren it wiI be more effective and viabre for
group. lt will give strength to the group for
activery participation in csR activities in
ro*
,rl
cost and control-
Each consortium member wirr report separatery
to board of
The committee recommends the following consortium:
1. Agarwal Coal Corporation pvt Ltd
2. AgarwatFuel Corporation pvt Ltd.
3. Ad-Manum Fina nce Ltd.
Ir
CSR
Policy
,.f
op".."tionrt
the directors of the respective company.
9. Aruourrtr
ro
BE spENT rru
CSR AcrrvrrrEs
A sum of Rs. 62.22 Lakhs is to be spent under CSR rules.
The company's Average Net profit of the rast three years
is carcurated as under:
Agarwal Coal Corporation A^. Ltd.
Particulars
Net Profit before Tax
20L4
2073
2012
356,417,000
353,061,468
223,506,63r
Less:
Dividend Received
Profit on Sale ofAssets
80,41.5
Add:
Fixed Assets Written Off
Loss on Sale of Shares
Loss on Sale
t
,tt
CSR Polic
of fixed AssEG
34,000
L03,980
r40,292
725,699
16,310
20,694
10. MorunoRrNG
MEcHANTSM
The committee recommends following mechanism
to ensure the T rust will implement the company's
csR
activities effectively and utirize funds for the intended purpose:
r"
2
3
The company wifl authorize a person to audit
the accounts rerated to fund given to trust.
The company is authorized secretary of the committee
the same to Board of Directors.
to get the report from CDGI and present
Director and Dean of the institutes wi, submit monthry
reports to the company about progress of
the CSR activities implemented. This report will includes:
a.
b.
c.
Amgunt requested to disburse
Actual amount disbursed
Amount utilize till date head wise
d.
Unutilized amount where you kept
Ledger copy of fund given to trust
f.
Planning for next month
s.
Last month comparison report between actual
and planned. explain the reason
deviation.
h.
Report if any change in policy or planning.
if
any