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AMBUJA CEMENTS LIMITED

CSR POLICY

CSR POLICY OF AMBUJA CEMENT INDIA LIMITED


(As approved by the Board vide Resolution no.10 passed at its meeting held on________,
2016 and as amended till date)

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Heading
Preamble
Title & Applicability
Definitions
CSR Vision Statement and Guiding Principles
Resources
Funding & Allocation, Mode of Implementation
CSR Plan
CSR Committee
Implementation
Monitoring & Feedback
General
Annexure-I

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1. PREAMBLE
At Ambuja Cements Limited, we are committed to the Nurturing Life' credo. Our Strategic
Corporate Social Responsibility (CSR) initiatives are to actively work towards the 'Nurturing
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Life' Goals. The Ambuja Cements has since inception always laid great emphasis on its
responsibilities not only to the wellbeing of its stakeholders but also to the larger
communities in the areas in which its companies operate.
2. TITLE & APPLICABILITY
2.1 This policy encompasses the companys philosophy for delineating its responsibility as a
corporate citizen and lays down the guidelines and mechanism for understanding socially
useful programmes for welfare & sustainable development of the community at large is titled
as the Ambuja Cements CSR Policy
2.2 This policy is in compliance of section 135 of the Companies Act, 2013 and the
Companies (Corporate Social Responsibility Policy) Rules, 2014 (the Rules).
2.3 This policy shall be effective from the date of its adoption and approval of by the Board
of Directors of Ambuja Cements.
3. DEFINITIONS
3.1 The words and expressions used in this Policy are defined as under
(a) Act means the Companies Act, 2013.
(b) Annexure means Annexure appended to this Policy.
(c) Board means Board of Directors of the Company.
(d) Company or (ACF) means Ambuja Cement Foundation group.
(e) CSR Committee means the Corporate Social Responsibility Committee of the Board of
Directors of the Company referred to in section 135 of the Act.
(f) Corporate Social Responsibility (CSR) means the responsibility of the Company to
undertake the projects and programmes relating to the activities covered under the subjects
enumerated in Schedule VII of the Act and approved by the Board in pursuance of
recommendations of the CSR Committee.
(g) CSR Activities means the activities of the Company as per this Policy.

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(h) CSR Rules means the Companies (Corporate Social Responsibility Policy) Rules, 2014
notified on 27th February, 2014 by the Government of India, Ministry of Corporate Affairs
and any amendments thereof from time to time.
3.2 The words and expressions used and not defined in this Policy shall have the same
meanings respectively assigned to them in the Act or CSR Rules.
4. CSR VISION STATEMENT AND GUIDING PRINCIPLES
In alignment with the vision of the Ambuja Cement Foundation group through its CSR
initiatives is committed towards building a sustainable enterprise for the benefit of its present
and future generations of stakeholders and will continue to enhance value creation in the
society and in the community in which it operates as a Socially Responsible Corporate.
5. RESOURCES
5.1 FUNDING & ALLOCATION
For achieving its CSR objectives through implementation of meaningful & sustainable CSR
programmes, ACF shall endeavor to allocate the following as its Annual CSR Corpus:
i)

2% of average net profits made during the three immediately preceding financial

ii)
iii)

years, as prescribed under the Companies Act, 2013 and the Rules;
Any income arising therefrom; and
Surplus arising out of CSR activities.

It is clarified that surplus arising out of CSR projects/ programs shall not form part of
business profits of the Company.
5.2 MODE OF IMPLEMENTATION
a) CSR programs, projects or activities, will be implemented through one or more of the
following methods:

i) Directly by the Company;

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ii) Any other Registered Trust, Society or Section 8 Company (i.e. Company registered under
Section 8 of the Companies Act, 2013) with an established track record of at least three years
in carrying on activities in related areas and duly approved by the ACF CSR Committee;
iii) In collaboration with other organizations.
b) The allocated CSR budget or Corpus will be utilized for CSR activities undertaken within
India, which are not:
i) exclusively for the benefit of employees of the Company or their family members; or
ii) Undertaken in pursuance of normal course of business of the Company.
6. CSR PLAN
ACF shall prepare its Annual CSR Plan at the beginning of each Financial Year according to
the availability of resources on recommendation of the CSR Committee and approval of the
Board.
The CSR activities (Projects / Programmes) which SIL plans to undertake shall be the
activities falling within the purview of Schedule VII of the Companies Act, 2013 as amended
from time to time and does not include the activities undertaken in pursuance of normal
course of business of the company.
The Projects, programs or activities to be undertaken by the Company pursuant to the Policy,
along with modalities of execution are outlined in Annexure-I attached hereto.
7. CSR COMMITTEE
7.1 ACF CSR Committee which will be ultimately responsible for the CSR projects
undertaken will report to Board.
*Members of CSR Committee currently comprises of:1. Mr. Kumar
2. Mr. Ashesh
3. Ms. Indrani
7.2 Responsibilities5 | Page

1. Formulate and update our CSR policy, to be approved by the Board


2. Suggest areas of intervention to the Board
3. Approve projects that are in line with the CSR Policy
4. Put monitoring mechanism in place to track the progess of each project
5. Recommend the CSR expenditure to the Board who will approve it.
7.3 Composition
a. The Committee shall be consisting of three or more directors, out of which at least one
director shall be an independent director.
b. Minimum of 2(two) Directors, shall form a quorum, out of which at least one director
shall be an independent director.
c. The composition of the Committee members shall be disclosed in the Annual Report.
d. The term of the Committee members shall be co-terminus with the Directorship held in the
Company.
e. The Committee shall meet periodically and at such intervals as may be required.
f. The Company Secretary of the Company shall act as the Secretary to the Committee.
g. The confirmed minutes of the Committee meetings shall be placed before the Board.
8. IMPLIMENTATION
8.1 The time period for implementation of the programme will depend on its nature, extent
of coverage and the intended impact of the programme.
8.2 CSR Programs shall be implemented with active participation of the local community,
wherever possible, and in consultation with the State Government for policy and strategic
purposes and local administration at village, block and district levels for operational
purposes, wherever applicable. These implementations will also be synergized with the
initiatives

undertaken

by

the

State

Government,

District

Administration as well as Central Government Departments.

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Administration,

Local

8.3 While all CSR programs will be focused in India, the Company shall give preference to
the local areas
8.4 While identifying long term programmes, all possible efforts shall be made to define the
following:
a) Programme objectives
b) Baseline survey- It would give the basis on which the outcome of the programme would be
measured.
c) Implementation schedules - Timelines for milestones of the programme.
d) Responsibilities and authorities
e) Major results expected and measurable outcome.
8.5 Powers for approval
a) Corporate Social Responsibility Committee (CSR Committee) of the Board shall formulate
and recommend to the Board a CSR policy of the Company for a Financial Year including the
amount of expenditure to be incurred on CSR programs, projects and activities.
b) The Board shall, after taking into account the recommendations made by the CSR
Committee, consider and approve the CSR Policy as it may consider appropriate.
c) The Board of Directors of the Company shall ensure that Company spends the requisite
amounts specified under the Companies Act, 2013 on CSR activities failing which it shall
specify in its report the reason for not spending the amount.
d) The Board or CSR Committee shall delegate necessary powers for execution and
implementation of the CSR Policy. The delegation shall also include powers for meeting the
requirements arising out of immediate & urgent situations.
9. MONITORING AND FEEDBACK
To ensure effective implementation of the CSR programmes, the Company shall put in place,
suitable monitoring mechanism.
9.1 The progress of CSR programmes under implementation will be reported to the
Chairman, CSR Committee on quarterly basis.
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9.2 CSR Committee shall periodically monitor the progress of CSR projects, programs and
activities incorporated in the CSR Policy and shall hold review meetings at least twice in a
year.
9.3 CSR Policy will be displayed on the Companys corporate website.
9.4 An Annual report on CSR containing the particulars as prescribed under the Companies
(Corporate Social responsibility Policy) Rules, 2014 shall form part of Annual Report of the
Company.
10. GENERAL
10.1 In case of any doubt with regard to any provision of the CSR Policy and also in respect
of matters not covered herein, a reference should be made to the CSR Committee.
10.2 The Company reserves the right to modify, cancel, add, or amend its CSR Policy subject
to the provisions of the Companies Act, 2013 and Rules framed thereunder.
Introduction
1. Gujarat Ambuja Cements has grown by leaps and bounds in the first 25 years. Ambuja
Cements owns some of state-of-the-art manufacturing facilities equipped with
advanced technological instrumentation. The company also excels in the system for
the prevention of hazards to the work force and the production units.The outstanding
growth of the company was due to the use of ethical trade practices and the
commitment of a dedicated work force. The superb management was an added bonus
to the company which fueled further growth.The Company had been taking steps for
CSR with abundant caution after the enactment of the Companies Act, 2013.
2. At Ambuja Cements Ltd., the Corporate Social Responsibility (CSR) has been an
integral part of the way we have been doing our business since inception. For more
than 25 years, the Companys CSR initiatives has played pivotal role in improving the
lives of the communities and society at large and in & around our operations with an
objective to energize, involve and enable them to realise their potential. This has also
enabled us to fulfil our commitment to be a socially responsible corporate citizen.
3. Today we have one of the countrys leading CSR engagements. Ambujas earliest
initiatives in community development date back to the 1990's long before the term
corporate social responsibility was even coined. The company launched its Village
Welfare Scheme, as a full-fledged function at the corporate office and all its cement
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plants with a large team comprising social scientists, teachers, medical personnel,
civil engineers and experts in agriculture, sanitation and crafts. The Company had
been taking steps for CSR with abundant caution after the enactment of the
Companies Act, 2013 in more effective way.
4. In keeping with this tradition, the company has a team of young CSR specialists based
at our corporate office and factories who serve the neighbouring community that
comprises the weaker sections of rural and tribal India to provide them some access to
basic amenities, health, education and livelihoods.

I. OBJECTIVE
The main objective of Ambujas CSR policy is
i.

To lay down guidelines to make CSR a key business process for sustainable

ii.

development of the society.


To directly/indirectly undertake projects/programs which will enhance the quality of
life and economic well-being of the communities in and around our plant and society

iii.

at large.
To generate goodwill and recognition among all stake holders of the company.

II. OUR RESPONSIBILITIES


A) Towards our communities- We will involve communities surrounding our operations to
bring about a positive change in their lives through holistic, sustainable and integrated
development.
B) Towards our Customers- We will build gainful partnerships with the customers to
understand their needs and provide right product and service solutions. We will adopt and
actively encourage the best and fair business practices and shall endeavour to build solid
bonds with them.
C) Towards our Business Partners- We will support our suppliers to cultivate ethical and
fair business practices and give preference over other to those who demonstrate this.
D) As a Corporate Citizen -We reaffirm our commitment to conduct our business with
environmental accountability. We will endeavour to adopt environment-friendly technologies

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and energy efficiency in our operations while continuously monitoring and reducing
emissions
E) Responsibilities toward our Employees- We will foster a work culture with high ethical
principles and standards and encourage our employees to perform with total integrity,
commitment and ownership. We will do all we can to support their professional growth and
recognise high achievers.
We will continue to raise the bar of our OH&S standards and guidelines. We recognise that
our employees and contractors deserve to work in safe and healthy work environment and
will make it our responsibility to ensure zero harm to people.
III. CSR mainstay
CSR activities at Ambuja shall be carried out through
1. Ambuja Cement Foundation (ACF) Ambuja Cement Foundation (ACF) was
established way back in 1993 as a social development arm of the Company. ACF work
exclusively with rural communities on issues related to Water Resource Management, Agro &
skill based livelihood generation, Health, education, womens empowerment and rural
infrastructure.
The Ambuja Cement Foundation was established way back in 1993 and is the Corporate
Social Responsibility wing of Ambuja Cements Ltd. that works with the rural communities
surrounding Ambujas manufacturing sites. The Foundation is engaged in a variety of peoplecentric, integrated rural development projects. Since inception, the foundation has expanded
its reach and diversified its programmes to include as many members of its stakeholder group
as possible. While working with the participation of the people, ACF has held its mission
statement central to all its operations. The Foundation has presence in twelve states across the
country and is engaged in programmes like Natural Resource Management, Agro based and
skill based livelihoods and improvement of health status, educational support and economic
enhancement
2. Ambuja Vidya Niketan Trust (AVNT)
Ambuja Vidya Niketan Trust (AVNT) is a non-profit making trust promoted by Ambuja
Cements Ltd.for providing educational facilities to the wards/dependents of employees of
Ambuja Cement Ltd. and children of the Villages around the plant / projects of the Company.
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AVNT operates 5 schools across India, affiliated to C.B.S.E. Board. The school provides an
ambience to motivate learners to be creative in their responses, adopt a positive approach, to
explore and innovate, there by upholding the quest for knowledge. The values and skills
which the students acquire in the process of learning go a long way in guiding and helping
them to meet the challenges of life and achieve their goals and aspirations.
3. Collaboration with other Companies undertaking projects/programs in CSR activities.
4. Contribution / donation made to such other Organization / Institutions as may be permitted
under the applicable laws from time to time.
5. Directly by the Company for fulfilling its responsibilities towards various stakeholders.
IV. CSR Activities:The scope of the CSR activities of the Company will cover the following areas but not
limited to the same and may extend to other specific projects/ programs as permitted under
the law from time to time.
Area Activities/Initiatives/Programs
1a. Eradicating hunger, poverty and malnutrition- Agro Based livelihoods, Better Cotton
Initiatives, Agriculture Development, Krishi Vigyan Kendra.
1b. Promoting health care including preventive healthcare and sanitation - Health and
Sanitation Development programs, medical camps, programs for HIV Aids etc.
1c. Providing safe drinking water- Drinking water programs, construction of check dams,
dykes, ponds, links, channels, wells and water storage tanks.
2 Promoting education, including special education and employment enhancing vocation
skills especially among children, women, elderly, and the differently abled and livelihood
enhancement projects;
Construction and running of schools and libraries, vocational training and special education
institutes, providing financial assistance and scholarships for higher education. Undertaking
and skills and entrepreneurship programs.
3 Women Empowerment and Facilities for Senior Citizens-

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Setting up centres and institutions for women & senior citizenship.


Promoting SHGs amongst women for undertaking income generating activities.
4 Ensuring environmental sustainability, ecological balance, protection of flora and
fauna, animal welfare, agro forestry, conservation of natural resources and maintaining
quality of soil, air and water;
Horticulture plantation, agro farm forestry, afforestation, projects on nonconventional energy
(biogas), animal husbandry programs, forest conservation projects, water resource
management and soil conservation, promoting micro-irrigation etc.
5 Promotion and protection of art & culture
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;
Activities/programs or any financial contribution for the benefit of armed forces and their
families.
7 Training to promote rural sports, nationally recognised sports, paraolympic sports
and Olympic sports;
Financial contribution towards the development of sports culture and related activities and
also encouraging the youth talent.
8 Contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government;
A scheme to be framed for the purpose of developing and upgrading the technology in the
academic institution for a better future.
9 Contribution/Financial Assistance Contribution to Prime Ministers 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

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10 Rural development Projects, Rural infrastructure projects and agriculture


development programs and projects.
Projects/Schemes related to the development of agriculture by implementing various schemes
and support the local farmers of the area and also an attempt to link the remote areas from the
Central Town.

Signatures DirectorAman Ashesh


Dy. Managing Director & CEO Chairman
Aditi Indrani and Dinesh Kumar

Drafted and reviewed by


In House Legal Advisor
Adv. Ankita Prakash & Adv. Bhanu Prakash

Date: 11.13.2016
DIN: XXXX2013034

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