Corporate Social Responsibility (CSR) Programme

  1. Brief outline of the company’s CSR Policy including overview of projects or programme proposed to be undertaken and reference in web link to the CSR policy and projects or programme.
    • Brief about CCI:
      The Cotton Corporation of India (CCI) is a cotton trading organization under the administrative control of Ministry of Textiles, Govt. of India. It is the nominated nodal agency of Govt. of India to undertake price support operations in cotton in the event when market prices of kapas touched the support price level announced by Govt. of India.
    • Concept of CSR:
      • The Department of Public Enterprises (DPE), vide their letter F.No.15(3)/2007-DPE(GM) dated 9th April 2010 has introduced Corporate Social Responsibility for Central Public Sector Enterprises. The CSR was included in MOU from the year 2010-11 onwards. As envisaged in the guidelines of CSR, the corporate performance needs to be matched in terms of economic impact, social impact and environmental impact; commonly called the "Triple Bottom Line".
      • The Ministry of Corporate Affairs (“MCA”) vide its notification dated February 27, 2014 has notified section 135 and Schedule VII of Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014. Pursuant to which Companies are required to make expenditure on “CORPORATE SOCIAL RESPONSIBILITY (CSR)” activities which we have already undertaken which is with the compliances of DPE Guidelines. The Companies (Corporate Social Responsibility Policy) Rules, 2014 have come into force from 1st April 2014.
      • Taking into consideration of aforesaid CSR guidelines, CCI has been involved in various CSR activities to generate community goodwill, create social impact and visibility. The outline of CCI’s CSR policy is as under:
        1. CSR Vision Statement:
          • The Corporate Social Responsibility (CSR) is a planned set of activities for CCI which is targeted to have a significant positive impact in the long term taking into consideration the Corporation's capabilities, expectations of the communities living in and around the areas of its operation as well as where it has its presence.
          • The aim is to play a catalytic role in the sustainable socio-economic development in the regions where it is located or where its interests lie, attempting to create an enabling working environment for CCI as well as sustained regional development.
        2. CSR Mission:
          • To serve the interests of society by taking responsibility for the impact of Corporation’s activities on customers, employees, shareholders, communities and the environment in all aspects of its operations.
          • Commitment to operate in an economically, socially and environmentally sustainable manner, while recognising the interests of its stakeholders.
          • To closely linked with the practice of sustainable development and extends beyond philanthropic activities and reaches out to the integration of socio-economic and business goals to secure sustainable competitive advantage.
          • Ensure benefits to the smallest unit i.e. village, panchayat, block or district depending upon operations and resource capability of the Corporation.
          • To be involved in CSR activities as long term sustainable socio-economic development irrespective of loss/profit and expenditure limit of 2% of the average net profits of the company made during the three immediately preceding financial years.
        3. Web link to CSR Policy:
          • Annual Report on CSR activities is also available at the website of the Corporation at www.cotcorp.gov.in
  2. Composition of the CSR Committee:
    Corporate Social Responsibility (CSR) is being implemented in CCI under the guidance of Board level sub-committee headed by CMD. Name & designation of Board level sub-committee are as under:
    Designation Category
    Chairman-cum-Managing Director Chairman
    Director (Finance) Member
    Director (Marketing) Member

    The terms of reference of the Committee is given below:

    • Formulate and recommend CSR policy to the Board for approval.
    • Recommend the amount of expenditure to be incurred on the CSR activities in a financial year along with CSR projects to be undertaken earmarking funds for area-wise projects.
    • Monitor from time to time the implementation of the CSR projects undertaken by the Company.

  3. Average net profit of the company for last three financial year:
    The financial results of the Corporation in the last three years are as follows:
    Net Profit (PAT) Rs. Crores
    PAT: F.Y. 2012-13 32.70
    PAT: F.Y. 2013-14 59.84
    PAT: F.Y. 2014-15 22.59
    Total: 115.13
    Average Net Profit (PAT): 38.377
  4. Prescribed CSR expenditure (two percent of the amount as in item 3 above):
    As per the Companies (Corporate Social Responsibility Policy) Rules, 2014 at least 2% of the average net profits of the company made during the three immediately preceding financial years should be allocated to CSR. In view of these guidelines, Rs. 76.75 lakhs (i.e. 2% of average net profit as given on point no. 3) was allocated for undertaking CSR activities for 2015-16.
  5. Details of CSR spent during the financial year :
    1. Total amount to be spent for the financial year:
      2% of the average net profits made during the three immediately preceding financial years i.e. Rs. 76.75 lakhs
    2. Amount unspent, if any:
      Nil.
    3. Manner in which the amount spent during the financial year 2015-16 is detailed below:

      Sr.
      No.

      Targeted CSR Activities

      Budget
      (Rs. in Lakhs)

      School/Village Name

      Expenditure
      (Rs. in Lakhs)

      1.

      Construction of toilets for girls in High or Higher Secondary School with running water facility

      34.35

      Akola, Maharashtra:

        Savitribai Phule zilla Parishad Girls High School, Damle chowk, Akola

        Savitribai Phule High School, Gokul Colony , Akola

        Zilla Parishad Mahatma Gandhi High School, Hiverkhed

      11.94

       (Project implemented
      through NGO)

      Auragabad, Maharashtra:

        Zilla Parishad Primary School, Wakodi,

        Zilla Parishad Primary School, Masod

      10.44

       (Project implemented through State Govt.)

      Rayagada, Orissa:

        Zilla Parishad Girsl Higher Secondary School, Lanjigarh, Block, Orissa

      12.00
      (Project implemented through State Govt.)

      Total (1):

      34.38

      2.

      Scholarship to girls’ students from the Primary Producers family based on the marks secured in last higher secondary examination conducted by State of Central Board.

      0.90

            Zilla Parishad schools in Akola and Kalamnuri Taluka of Aurangabad, Maharashtra.

      0.60
      (Project implemented through State Govt.)

            Zilla Parishad Girls Higher Secondary school in Lanjigarh, Block, Orissa

      0.30

       (Project implemented through State Govt.)

      Total (2):

      0.90

      3.

      Any other activities as per schedule VII of companies act 2013:

       

      a)    Rural development project: Contract farming with FLD programme in backward districts in the states of Karnataka, Tamil Nadu & Maharashtra

      8.50

            Vayalapady, Siruganupur and thungapuram Perabbular District, Tamil Nadu: 250 Nos. FLD

      3.95

      (Project implemented through SAU)

            Yarragal of Sindagi Talukar, Bijapur District, Karnataka: 150 Nos. FLD

      2.77
      (Project implemented through SAU)

            Bhusawal and Erandol in jalgaon District Maharashtra : 100 Nos. FLD

      1.92

      (Project implemented through SAU)

      Total (3a):

      8.64

      b)   Contribution to Swachh Bharat Kosh

      25.00

      Swachh Bharat Kosh, Department of Expenditure, Ministry of Finance, Government of India, New Delhi

      25.00

      c)    Contribution towards Clean Ganga Fund

      8.00

      National Mission for Clean Ganga, Government of India, New Delhi

      8.00

      Total:

      76.75

       

      76.92

  6. Reasons for not spending the 2% of average net profit of last three financial years:
    Not Applicable
  7. Responsibility statement of the CSR Committee:
    The implementation and monitoring of CCI’s CSR Policy is in compliance with CSR objectives and Policy of the Company.

    (M.M. Chockalingam)

    Director (Marketing)

    (Pradeep Kr. Agarwal)

    Director (Finance)

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