Corporate Social Responsibility (CSR) Policy

1. Introduction

Vertotech Aerospace Ltd. (hereinafter referred to as "the Company") recognizes its responsibility to contribute positively to society and the environment beyond its business operations. The Corporate Social Responsibility (CSR) Policy outlines the Company's commitment to sustainable development and its focus on creating a positive impact on communities, the environment, and the economy. This policy is in accordance with the Companies Act, 2013, and the rules made thereunder, as amended from time to time.

2. Objective

  • Outline the Company's CSR initiatives and focus areas.
  • Establish a framework for the planning, execution, and monitoring of CSR activities.
  • Ensure compliance with regulatory requirements related to CSR.

3. Scope and Applicability

This policy applies to all CSR activities undertaken by the Company and is applicable to the Board of Directors, CSR Committee, and all employees involved in CSR initiatives. The policy covers all projects and programs that the Company plans to undertake as part of its CSR activities.

4. CSR Vision and Mission

Vision:

To contribute to sustainable development by engaging in initiatives that improve the quality of life and create a positive impact on the environment, communities, and society at large.

Mission:

To implement CSR activities that align with the Company's core values, focusing on social welfare, environmental sustainability, and economic development.

5. Focus Areas

  • Education: Supporting initiatives that enhance access to quality education, particularly for underprivileged children. Promoting vocational training and skill development programs to enhance employability.
  • Healthcare: Providing support for healthcare initiatives, including medical camps, health awareness programs, and access to quality healthcare services. Contributing to efforts aimed at improving maternal and child health.
  • Environmental Sustainability: Promoting activities related to environmental conservation, including afforestation, water conservation, and waste management. Supporting initiatives that encourage the use of renewable energy and reduce carbon footprints.
  • Community Development: Enhancing the quality of life for communities through infrastructure development, sanitation, and access to clean drinking water. Supporting programs aimed at the economic empowerment of women, youth, and marginalized communities.
  • Disaster Relief and Rehabilitation: Providing assistance and support during natural disasters and emergencies, including relief, rehabilitation, and rebuilding efforts.

6. CSR Committee

Composition:

The CSR Committee shall consist of three or more Directors, with at least one independent Director, as appointed by the Board of Directors.

Role and Responsibilities:
  • Formulate and recommend the CSR Policy to the Board for approval.
  • Recommend CSR activities to be undertaken, the amount of expenditure, and the manner of implementation.
  • Monitor the CSR activities periodically and ensure compliance with the CSR Policy.
  • Report on the CSR activities to the Board of Directors.

7. Implementation

CSR Budget:

The Company shall allocate a minimum of 2% of its average net profits made during the three immediately preceding financial years for CSR activities, in accordance with Section 135 of the Companies Act, 2013.

Execution:
  • CSR activities shall be implemented through:
    • Direct engagement by the Company or its employees.
    • Collaboration with registered trusts, societies, or NGOs that have a track record of at least three years.
    • Partnerships with government initiatives or public sector undertakings.
  • Geographical Focus: The Company shall prioritize CSR activities in the regions where it operates, including its facilities, offices, and communities surrounding these locations. However, the Company may also undertake CSR initiatives in other parts of the country based on need.

8. Monitoring and Reporting

  • Monitoring Mechanism: The CSR Committee shall oversee the implementation and monitoring of CSR projects. The Company shall establish internal controls and monitoring mechanisms to ensure effective implementation and impact assessment of CSR activities.
  • Impact Assessment: The Company shall conduct impact assessments of CSR activities to evaluate their effectiveness and make necessary adjustments to maximize the positive outcomes of its initiatives.
  • Reporting: The CSR Committee shall report the status of CSR activities, including expenditure incurred and outcomes achieved, to the Board of Directors. The Company shall also disclose its CSR activities in its Annual Report, as required by the Companies Act, 2013, and applicable rules.

9. Review and Amendment

The CSR Committee shall periodically review this policy to ensure its relevance and alignment with the Company's objectives and regulatory requirements. Any amendments to the CSR Policy shall be approved by the Board of Directors.

10. Conclusion

Vertotech Aerospace Ltd. is committed to conducting its business responsibly and contributing to the well-being of society. This CSR Policy serves as a guiding document to ensure that the Company's CSR initiatives are aligned with its values and create a sustainable impact on the communities and environment.

Date of Adoption: [Insert Date]

Approved by: Board of Directors, Vertotech Aerospace Ltd.