CSR Policy

At Lal Sweets Private Limited (the “Company”), we are committed to the vision of creating a broader, sustainable and scalable impact in India. Our commitments toward Corporate Social Responsibility (“CSR”) include, but are not limited to, promotion of education, literacy, healthcare and food security, energy and climate change, and betterment of the society through respect for universal human rights and the environment, acting with integrity and accountability and operating responsibly and sustainably.

Corporate Social Responsibility is strongly connected with the principles of sustainability; an organization should make decisions based not only on financial factors, but also on the social and environmental consequences.

Therefore, it is the core corporate responsibility of the Company to practice its corporate values by adopting this policy as a strategic tool, to empower the stakeholders and society at large through sustainable economic development of its communities.

2- Effective Date: This policy has come into effect from 29th July

3- Scope & Applicability:

As per Section 135 of the Companies Act 2013 (“Act”) and Companies (Corporate Social Responsibility Policy) Rules, 2014, it is mandatory for every company having Net Worth of Rupees Five Hundred Crore (INR 500 Crore) or more, or Turnover of Rupees One Thousand Crore (INR 1,000 Crore) or more or a Net Profit of Rupees Five Crore (INR 5 Crore) or more during the immediately preceding financial year to implement a Corporate Social Responsibility (CSR) Policy and constitute a Corporate Social Responsibility Committee of the Board and spend at least 2% of its average Net Profit for the immediately preceding three financial years on Corporate Social Responsibility activities.

Further, if the CSR obligation of a Company is less than Rupees fifty lakhs (INR 50 lakhs), the requirement of constituting a Corporate Social Responsibility Committee of the Board shall not be applicable and all functions of such Committee shall be discharged by the Board of Directors.

The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act.

4- Objective:

• The main objective of the CSR Policy is to lay down guidelines for the Company to make CSR as one of the key focus areas to adhere to the Company’s global interest in environment and society that focuses on making a positive contribution to society through effective impact and sustainable development
• This Policy covers the proposed CSR activities to be undertaken by the Company and ensuring that they are in line with Schedule VII of the Act as amended from time to time. It covers the CSR activities which are being carried out in India only and includes strategy that defines plans for future CSR activates.

5- Constitution of CSR Committee:

The CSR Committee shall be constituted when the total CSR obligation of the Company exceeds INR 50 lakhs for a financial year.

6- CSR Activities/ Programmes/ Projects:

The following is scope within which CSR activities, programs, and projects that the Company may undertake.

1. Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;

2. Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;

3. Promoting gender equality, empowering women, setting up homes and hotels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
4. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga;
5. 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;
6. Measures for the benefit of armed forces veterans, war widows and their dependents, Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including
7. Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports;
8. Contribution to Prime Minister’s National Relief Fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Schedule Castes, the Scheduled Tribes, other backward classes, minorities and women;
9. (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and

    (b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs)

10. Rural development projects;
11. Slum area development; and
12. Disaster management, including relief, rehabilitation and reconstruction

 7- Implementation of CSR Activites:

The Company may carry out the CSR activities in accordance with the terms of this Policy, either on its own, or through a registered public trust or a registered society or through a company registered under Section 8 of the Companies Act, registered under section 12A and 80 G of the Income Tax Act, whether established by the Company, a subsidiary of the Company, an Associate Company of the Company or by a third party.

The Company may also collaborate with other companies to undertake projects, programs or CSR activities in such a manner that the CSR Committees of the respective companies are in a position to report separately on such projects or programs in accordance with the CSR Policy and the applicable CSR regulations from time to time in force.

If the Company chooses to carry out the CSR activities through a registered public trust or registered society or a Section 8 company incorporated under the Companies Act, registered under section 12A and 80 G of the Income Tax Act, which is established by a third party (“CSR Partner”), such CSR Partner shall meet the eligibility criteria as mentioned under the Companies Act, 2013 and the rules made thereunder.

 8- CSR Budget:

The total budget for the CSR projects will be decided by the Board of Directors.

9- Powers and responsibility of the Board of Directors:

The Board of Directors may revise/ amend this CSR Policy to bring the same in line with the guidelines or amendments issued from time to time by Government on the subject.

The Board shall ensure that the amount of surplus arising out of the CSR projects or programs or activities shall not form part of the business profit of a Company.

10- Monitoring & Reporting Framework:

The Company may receive requests for funding of projects from other companies/firms/NGOs/Trusts etc throughout the financial year. Its panel of experts will evaluate proposals received and projects will 

be prioritized by assessing their impact. On receiving recommendations, the Board will deliberate on the proposals and approve proposals for implementation at its discretion.

The Board shall:

• Review the implementation of the CSR programmes and the CSR audit reports periodically;
• Review the implementation and monitoring mechanism appropriately; and
• Satisfy itself that the funds so disbursed have been utilised for the purposes and in the manner as approved by it.

11- Failure of Spend CSR Money:

If the Company fails to spend the required CSR amount in a particular financial year, it shall be the duty of Board of Directors to report in their Annual Report pertaining to that particular Financial Year.

Also, the Company shall take necessary action for the unspent CSR amount during any Financial year as provided under Section 135(5) and 135(6) of the Companies Act, 2013 and the rules made thereunder.

12- Reporting:

The Board of Directors of the Company shall provide the following information in its report to its shareholders as well as on the website of the Company:

• Brief outline of the CSR Policy;
• Website link (if any) to CSR Policy and update on the CSR activities undertaken by the Company;
• Composition of CSR Committee, if
• Average net profits of the Company for last three financial years;
• Prescribed CSR expenditure;
• Total amount to be spent in a financial year and amount unspent, if any, along with the reasons;
• Manner in which the amount spent on CSR activities during a financial year in the following format:
• A description of the CSR activities;
• Sectors covered by the CSR activities;
• CSR activities Undertaken – (1) Local Area or Other; and (2) Specify the State and district where CSR activities were undertaken;
• Amount outlay (budget) for each of the CSR Activity;
• Amount spent on the CSR activities – (1) Direct Expenditure; (2) Overheads
• Amount spent – (1) Direct; (2) though the implementing agency; and
• Details of the implementing
• Reasons for the Company failing to spend the amount required under the Act (if any), on the CSR activities; and
• Responsibility statement from CSR Committee that the implementation and monitoring of CSR Policy is in compliance with CSR

13- Policy review and future amendment:

The Board shall review the CSR Policy from time to time and make suitable changes as may be required.