corporate social responsibility policy of tetra pak...

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CORPORATE SOCIAL RESPONSIBILITY

POLICY OF

TETRA PAK INDIA PRIVATE LIMITED

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CONTENTS

SR.NO. PARTICULARS PAGE NO.

Preamble 3

Necessity for Policy on CSR 4

I. Applicability 5

II. Defining our CSR Policy 5

III. Constitution of the CSR Committee 6

IV.

Composition of CSR Committee of the Board

(a) Chairman of the CSR Committee

(b) Members of the CSR Committee

6

V. Roles and Responsibilities of the CSR Committee 7

VI. Meetings of the CSR Committee 8

VII. Activities currently undertaken under CSR Programme 8

VIII. Addition of CSR Activity not being a part of approved

CSR Programme 9

IX. Quorum of the Meeting 9

X. Rules governing CSR Policy 10

XI. Implementation Schedules of CSR Activities, Funding,

Allocation and Tax Treatment of CSR Spend 12

XII. Role of the Board of Directors 13

XIII. Amendment in CSR Policy 14

Annexure A: Format of the Annual Report on CSR initiatives 15

Annexure B: Schedule VII of the Companies Act, 2013 24

Annexure C: Definitions 25

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Preamble

Corporate Social Responsibility (CSR) is the process by which an

organisation thinks about and evolves its relationships with

stakeholders for the common good and demonstrates its

commitment towards society by adopting appropriate business

processes and strategies. Companies should conduct their business

in such a way that it brings about a positive overall impact on society

and the environment.

CSR cannot be equated with charity or mere donations. It is a way of

conducting business - by which corporate entities visibly contribute

to the social good. Socially responsible companies do not limit

themselves to using resources to engage in activities that enhance

their profits. They use CSR to integrate economic, environmental and

social objectives with the company’s operations and growth.

Further, the Tetra Pak Group, being a member of the UN Global

Compact, ensures that its subsidiaries and group companies are

always in accordance with the UN Global Compact principles on

environment in conjunction with CSR.

http://www.unglobalcompact.org/COPs/detail/6278

http://www.unglobalcompact.org/COPs/detail/6278

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Necessity for Policy on CSR

Business organisations do not operate in a vacuum. They depend wholly

and solely on society for their survival. Societies provide resources such as

labour, material and infrastructure. This holds every business enterprise

responsible socially, economically, ethically and morally towards the

environment in which it operates.

As per this principle, business entities are expected to manage their

operations in such a way as to enhance economic growth, increase

competitiveness, and at the same time ensure environmental protection

and promote social responsibility along with consumer interest.

Being a packaging company, the nature of products manufactured by

Tetra Pak India Private Limited (“the Company”) is such that it has an

impact on the environment and utilisation of natural resources - and as

such, the Company has a social responsibility towards the society / country

where it operates by producing environmentally friendly products.

At Tetra Pak, we live by our motto ‘Protects What’s Good’. Protecting food

has long been at the very heart of our business. But it goes further: it is about

protecting people - our employees, the communities in which we operate,

and society. And it is about protecting futures - by developing products and

services that will support the future growth of our customers and by acting

and operating in ways that best protect the environment. We are

committed to fulfil these responsibilities by creating a socially and

environmentally sustainable policy which will bring considerable

environmental benefits / protection to society and at the same time ensure

upliftment of the society on various fronts.

Taking these points into consideration, the Company, in consonance with

the legal framework on Corporate Social Responsibility, hereby frames the

policy to fulfil its larger social, economic, ethical and moral responsibilities

while balancing environmental sustainability.

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I. Applicability

This is applicable from 1 April 2014

II. Defining our CSR Policy

This policy encompasses the Company’s philosophy for delineating its

responsibility as a corporate citizen and lays down the guidelines and

mechanisms for undertaking socially useful programmes for the welfare

and sustainable development of the community at large.

Aligned with our vision to make food safe and available everywhere

and our global sustainability commitment, the Company aims to:

Promote food safety and environment sustainability by educating

consumers across all strata of society

Create awareness and build infrastructure to improve the education,

health and lifestyles of underprivileged communities

Minimise our impact on the environment by building a recycling

ecosystem to help collect and recycle used beverage cartons

Tetra Pak India’s CSR policy will therefore focus on 3 pillars:

Food Safety, Health & Nutrition

Education

Environment

Tetra Pak will also contribute to specific disaster management programmes

under these identified areas.

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III. Constitution of CSR Committee

For effectively carrying out the objectives mentioned above, the

Company has constituted a Corporate Social Responsibility Committee

(CSR Committee) of the Board as per the provisions mentioned in the

Companies Act, 2013, read together with the CSR Rules, 2014, as

amended from time to time, to ensure that the purpose of this policy is

being effectively served.

IV. Composition of CSR Committee

of the Board:

(a) Chairman of the CSR Committee:

Managing Director of the Company shall be the Chairman of the CSR

Committee.

(b) The members of the CSR Committee shall be:

i. Managing Director

ii. Finance Director

In addition, the Committee shall also include the following members:

i. Communication Director

ii. Legal Counsel & Company Secretary

iii. Environment Director

iv. Sr. Manager Corporate Communication

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V. Role and Responsibilities

of the Committee

In accordance with the Companies Act, 2013, read together with the CSR

Rules, 2014, as amended from time to time, the following are the key

responsibilities of the CSR Committee. It shall:

1. Formulate the CSR policy and recommend the same to the Board for its

approval

2. Be responsible for the identification, selection, planning and execution of

various programmes / projects and activities under CSR

3. Recommend the CSR activities / projects and the amount to be expended

on such activities / projects, to the Board that the Company will undertake

during the relevant financial year

4. Monitor the implementation of the CSR activities / projects from time to time

5. Prepare a transparent monitoring mechanism to ensure implementation of

the projects / programmes / activities proposed to be undertaken by the

Company

6. Provide a Responsibility Statement in the Annual Report, stating that the

implementation and monitoring of the CSR policy is in compliance with the

CSR objectives of the Company in letter and in spirit

7. Interact with governmental and non-governmental bodies as and when

required in relation to implementation of CSR activities / projects under this

policy

8. Ensure receipt of Utilisation Certificates along with Statement of Expenditure,

duly certified by a chartered accountant of repute, by the organisations /

institutions to whom CSR Fund is allocated / by whom CSR Fund is spent

9. Review performance of the Company in the area of CSR and decide the

priority of the activities to be undertaken

10. Ensure that the conduct of the CSR Policy is in line with the overall

Sustainability Objective of the Tetra Pak Group

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VI. Meetings of the CSR Committee

During every financial year, the CSR Committee will meet at least three

times for the purpose of reviewing and monitoring the progress of CSR

activities including the amount spent on each of the activities / projects.

VII. Activities proposed under

CSR Programme

The following activities are proposed under CSR policy for 2014-15:

-

Promoting environment sustenance with a special focus on recycling of post

consumer waste of used cartons to minimize the adverse impact on the environment

and promoting conservation of natural resources; Creating awareness amongst the

society through projects such as “Project Search”, “Leadearthship”, “Doh Bin”etc.

Improving educational infrastructure in village communities, including those around

the Company’s factory in Chakan, Pune.

Arranging health camp for the rag picker community in different parts of India.

Undertaking projects for providing safe drinking water and sanitation facility in select

villages, arranging health camps for to rural community, promoting tree plantation

etc.

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VIII. Addition of CSR Activity not being a

part of approved CSR Programme

The Committee shall be authorised to recommend additional activities

that are not a part of the annual approved CSR Programme if it is

noticed during the financial year that the amount spent on approved

CSR activities / projects is not as per agreed schedule. The same will be

ratified by the Board of Directors.

IX. Quorum of the meeting

The quorum of the meeting shall be 2 (two) directors present in person

at the meeting.

X. Rules governing the CSR Policy:

In view of the provisions of the Companies Act, 2013, read together with

the CSR Rules, 2014, as amended from time to time, the Company is

obliged to observe the below-mentioned provisions with respect to CSR

Policy:

1. The Company may generally conduct such programmes and

projects as CSR activities (either new or ongoing) excluding those

activities undertaken by the Company in the normal course of its

business operations and for the benefit of employees or their

relatives.

2. The Company shall undertake its CSR activities only within India.

3. The Company may conduct or implement its CSR programmes or

any particular project or activity through trusts, societies, or

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companies established under Section 8 of the Act, operating in India

and that such organisations have an established track record of at

least three years in carrying on activities in related areas. Provided

that before considering any such trusts, societies, or Section 8

companies for the purpose of allocating funds, the Company should

conduct a comprehensive due diligence of such organisations to

ensure its expertise or track record in social projects and also to

ensure its political neutrality.

4. Where the Company has set up an organisation registered as a trust,

or Section 8 company, or a society, or a foundation, or any other

form of entity operating within India in order to facilitate the

implementation of its CSR activities, the following conditions shall be

applicable:

a. The Company (Contributing Company) shall specify the

projects / programmes to be undertaken by such an

organisation for utilising funds provided by it

b. The Company (Contributing Company) shall establish a

monitoring mechanism to ensure that the allocation is spent

for the intended purpose only.

5. The Company shall ensure that necessary details of its CSR initiatives

are mentioned in the Directors’ Report of the relevant financial year

and on the Company’s website in the prescribed format. (As per

Annexure A)

6. The Company shall consider only those activities as CSR activities

that are not solely carried out for the benefit of employees of the

Company or their family members. It may also encourage its

employees to actively and voluntarily participate in the CSR

initiatives undertaken by the Company.

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7. The Company may act in association with other companies and

pool the resources to undertake CSR activities.

8. The corpus of the CSR activities would include the following:

a. 2% of the average net profits for the three preceding financial

years

b. The surplus arising out of CSR activities of the previous year

9. In no case shall the surplus arising out of CSR activities form a part of

business profits of the Company.

10. Reporting pertaining to CSR activities of the Company will be done

on an annual basis.

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XI. Implementation Schedules of CSR

Activities, Funding, Allocation and

Tax Treatment of CSR spend

1. The CSR activities as approved by the Board will be implemented

during the relevant financial year as per the implementation

schedule recommended by the CSR committee and approved by

the Board.

2. The Company will allocate 2% of average of its net profits of the

three preceding financial years made by the Company during every

block of three years as its Annual CSR Budget to achieve its CSR

objectives through implementation of meaningful and sustainable

CSR programmes.

3. Tax treatment of the CSR spend of the Company during every

financial year shall be in accordance with the provisions of the

Income Tax Act, 1961, and rules framed under it as notified by the

Central Board of Direct Taxes (CBDT) and as amended from time to

time.

4. In any financial year, if the Company fails to spend the required

amount as mentioned above, it shall specify the reasons for not

spending the same in its Annual Report on CSR Activities.

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XII. Role of the Board of Directors

The Board shall perform the following duties so far as the CSR Policy of

the Company and the activities relating thereto are concerned:

1. Approve the Corporate Social Responsibility Policy for the Company

after considering the recommendations made by the CSR Committee

2. Disclose the contents of the Company’s CSR Policy in the Directors’

Report and shall also place it on the Company's website

3. Ensure that the activities included in the CSR Policy of the Company are

undertaken by the Company

4. Ensure that the Company spends at least two per cent (2%) of the

average net profits of the Company made during the three

immediately preceding financial years in every financial year

5. Ensure that preference is given to the local area / areas around it where

it operates for spending the amount allocated for CSR activities.

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XIII. Amendment in CSR Policy

Any modification / amendment in the CSR Policy shall be carried out by

the CSR Committee with the prior approval of the Board of Directors of

the Company.

Notwithstanding anything contained in this Policy, the contents of the

Policy shall be read in conjunction with all other relevant policies,

presently applicable to the Company. The consent / permission under

this Policy shall not be considered / construed in derogation with or as

an exemption from the requirement of getting consent under any other

policy in force / applicable to the Company.

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ANNEXURE A

Report on CSR Activities

(Pursuant to Section 135 of the Companies Act, 2013)

The CSR policy encompasses the Company’s philosophy for delineating

its responsibility as a corporate citizen and lays down the guidelines and

mechanisms for undertaking socially useful programmes for the welfare

and sustainable development of the community at large.

Objectives:

Promote food safety and environment sustainability by educating

consumers across all strata of society

Create awareness and build infrastructure to improve the education,

health and lifestyles of underprivileged communities

Minimise our impact on the environment by building a recycling

ecosystem to help collect and recycle used beverage cartons

Focus Areas:

Food Safety, Health & Nutrition

Education

Environment

Composition of CSR Committee of the Board:

(c) Chairman of the CSR Committee:

Managing Director of the Company shall be the Chairman of the CSR

Committee.

(d) The members of the CSR Committee shall be:

I. Managing Director

II. Finance Director

III. Cluster Vice President

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a. In addition, the Committee shall also include the following members:

IV. Communication Director

V. Legal Counsel & Company Secretary

VI. Environment Director

VII. Sr. Manager Corporate Communication

Financial Details:

Section 135 of the Companies Act, 2013, and Rules made thereunder

prescribes every company having a net worth of INR 500 crores or more or

turnover of INR 1000 crores or more or net profit of 5 crores or more during

any financial year shall ensure that the Company spends at least 2% of the

average net profits of the Company’s three immediate preceding financial

years.

Particulars Amount (INR)

Average net profits of the Company for last 3

financial years.

1,137,241,765.67

Prescribed CSR expenditure (2% of the average

profits as computed above)

22,744,835.00

Details of CSR expenditure during the financial year.

a) Total amount to be spent on CSR expenditure 22,744,835.00

b) Amount spent 24,318,137.00

c) Amount unspent NIL

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Details of amount spent during financial year in INR:

We hereby affirm that the CSR policy, as approved by the Board, has been implemented and

the CSR committee monitors the implementation of the CSR projects and activities in

compliance with CSR objectives.

For and on behalf of the Board of Directors.

Kandarp Singh Ambalika Rana

Managing Director Finance Director

Date: 26 September, 2015

Sr.

No.

CSR project/

activity identified

Sector

Location of the

project/program

Amount

outlay

(budget)

(Lakhs)

Amount

spent on the

project/

programme

(Lakhs)

Cumulative

spend upto

to the

reporting

period

(Lakhs)

Amount spent:

Direct/

through

implementing

agency*

1.

Support My School

Campaign (a Joint

Venture with Coca

Cola)

Publicity Haryana- Mewat

Dist,

20,00,000/- 20,00,000/- 20,00,000/- SRF Foundation

2.

Go green (awareness

among shoppers)

Publicity Mumbai ,Delhi

and Bangalore

42,00,000/- 38,86,295/- 38,86,295/- RUR Green Life

Private Limited

and SAHAAS

3.

Collection awareness

campaign (health

camps for waste pickers,

recycling

meet/conferences)

Publicity South India,

Chandigarh and

Delhi.

1,23,00,000/- 1,08,97,095/- 1,08,97,095/- SAHAAS,

Development Links

Foundation, Waste

Vise Trust, Indian

Pollution Control

Association, Bal

Vikas Dhara and

Shooonya.

4.

Infrastructure support to

recyclers

Infrastructur

e

Sikkim-Gangtok

J&K- Kargil unit

Chandigarh and

South India

24,00,000/- 26,18,750/- 26,18,750/- Direct/Gajannan

traders and

Vividha Enterprises

5. Chakan Community

support- (Building of

School library, health

camps, tree plantation)

Publicity Pune-Chakan 9,55,000/- 10,55,347/- 10,55,347/- Direct

6. Project Search Environment India 38,60,649/- 38,60,649/- 38,60,649/- The Energy and

Resource Institute

(TERI)

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Details of Implementing Agencies

SRF Foundation

(Established in January 2009)-

The SRF Foundation (formerly known as the Society for Education and Welfare

Development) was set up as the corporate social responsibility (CSR) wing of SRF

Limited, a leading multi-business entity engaged in textiles, chemicals, packaging

films, and engineering plastics.

Activities – The Foundation builds on the heritage of its founders, the late Sir Shri

Ram and late Dr Bharat Ram, who both believed in contributing to society

particularly through education. SRF Foundation has set up the well known Shri

Ram Schools in Gurgaon and New Delhi, as well as the SRF Vidyalaya in Chennai.

In addition, the Foundation is intimately connected with the running of the well-

known Lady Shri Ram College for Women.

It currently runs various programs to improve the quality of education in India.

RUR Green Life Private Limited

Rur Greenlife Private Limited is a Private Company incorporated on 13 October

2008. It is classified as Indian Non-Government Company. RUR is

an environment organization run by young mothers, with a vision to make families

eco-conscious who will convert their waste into an useful form.

http://www.dnaindia.com/topic/environment

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Saahas

(Established in 2001)-

Saahas was registered as a not- for- profit under the Society’s Act in 2001. It has

FCRA (Foreign Contribution Regulation Act) certification and can accept foreign

contributions.

Activities - It demonstrate how waste can be converted into resources. The not-

for-profit continues to focus on building capacities of public institutions like the

Municipal Corporation as well as support progressive policies around waste

management.

Today across Bangalore, Saahas programs convert 7 tons of waste everyday into

a range of resources. Since 2013, they have also started operations in Chennai.

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Development Links Foundation

(Established in 2007) -

It is a Non Government Organization registered under Societies Registration Act,

1860. It is an initiative to create synergy for sustainable development through

linking various components, resources and stake holders of society.

Activities - Development Links Foundation work towards the objective of

sustainable development through creation of networks and links between

different sectors of society.

Its approach is to interlink various resources in society and create synergy for

development of the same.

In doing so the primary focus is utilization of available resources human or

otherwise. Thus it works for creating opportunities for every resource of the society

to be utilized.

This is done through various programs such as:

- Waste management with special emphasis on reducing, reusing, recycling

and composting.

- Health and Education for children of under privileged and women.

- Education for children with specific learning disorders.

- Provision of skill based training to underprivileged.

- Livelihood generation programs.

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Waste Wise Trust


Waste Wise Trust (WWT) is a non-profit organization that provides socially and

environmentally responsible solid waste management services to the corporate

sector in Bangalore.

Its objective is to change the face of Informal waste picking activities and giving it

the dignity it deserves.

Activities - Waste pickers organized to collect waste from townships, apartments,

commercial areas. Engaged as WW staff (32).43 engaged as collectors/sweepers

in commercial areas. 17 employed to collect dry waste from establishments and

sort/sell it.

It has a comprehensive approach that involves: Waste reduction, segregation,

proper storage, reuse, recycling and scientific disposal of all forms of waste

produced by human activity, leading to environmental protection. The valuable

contribution of the poor who are involved in waste picking and related activities

are to be highlighted to enable them to secure a dignified status in the society.

Professional and sustainable waste management services are offered to

apartments, offices, banks and other institutions. The revenue generated is used

to give employment, better working conditions and economic returns to the

waste pickers.

It Provides sanitation facilities for slum dwellers and related activities to improve

the existing conditions of waste pickers.

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Indian Pollution Control Association (IPCA)

(Established in 2001)-

The Indian Pollution Control Association (IPCA) is not-for-profit, non-government

organization (NGO) registered under the Societies Registration Act, 1860, Foreign

Contribution Registration Act and Section 80 G of the Income Tax Act and

entitled with Central Pollution Control Board at national level.

IPCA comprises of a multi-faceted group of environmentally conscious individuals

who are from the business, legislative, legal, engineering, finance, energy and

environmental sectors.

Activities - IPCA is an organization which is engaged in creating environmental

awareness and implementing Integrated Solid Waste Management System. IPCA

is providing its services of Solid Waste Management to various corporate,

industries, educational institutes and residential colonies.

IPCA examines the practices currently in vogue, assess their suitability in the light

of the existing regulations, developed cost effective and environmentally sound

techniques and strategies. IPCA strives to encourage wise recycling of the

municipal solid waste for the benefit of nation`s economy and environment

sustainability.

IPCA provides excellent oversight and management capabilities for our sponsors

and work with the community, local NGOs and Trusts.

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Bal Vikas Dhara (BVD)

(Established in 2005) –

A community that takes ownership of child rights issues.

Location: 12 slum areas in the South West District, Delhi

Activities - Bal Vikas Dhara (BVD) mainly works in the areas of awareness

generation among the communities, non-formal education, and vocational skill

building for the adolescent girls, self help groups and mahila panchayat. The

organisation advocates for inclusion of women in development efforts to change

the lives of children.

BVD has been successful in building a community perspective on the need for

education. They also focus on - implementation of RTE and sensitisation on health

issues like immunisation and institutional deliveries. BVD has mobilized the

community for formation of youth groups and Shrishti - a child rights activist group.

The Energy And Resource Institute (TERI)


TERI was established in 1974, with the initial focus on documentation and

information dissemination. Research activities, initiated towards the end of 1982,

were rooted in TERI’s firm conviction that efficient utilization of energy and

sustainable use of natural resources would propel the process of development.

Activities - All activities in TERI, the largest developing-country institution working

towards sustainability, move from formulating local- and national-level strategies

to shaping global solutions to critical issues. TERI has established regional centres in

Bengaluru, Goa, Guwahati, Mumbai and the Himalayas.

TERI has also set up affiliate institutes – TERI-NA, Washington, DC, USA, and TERI

Europe, London, UK – and also have a presence in Japan, Malaysia, and the UAE.

************************************************************************

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ANNEXURE B

SCHEDULE VII OF COMPANIES ACT, 2013

The Following are the activities that may be included by companies in their corporate

social responsibility policies. They are activities relating to:

1. Eradicating hunger, poverty and malnutrition, promoting preventive health

care and sanitation making available safe drinking water.

2. Promoting education, including special education and employment

enhancing vocation skills especially among children, women, elderly, and the

differently-abled and livelihood enhancement projects.

3. Promoting gender equality, empowering women, setting up homes and hostels

for women and orphans, setting up old age homes, day care centres and such

other facilities for senior citizens and measure for reducing inequalities faces by

socially and economically backward groups.

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.

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 developments of traditional arts and handicrafts.

6. Measures of benefits of armed forces veterans, war widows and their

dependents.

7. Training to promote rural sorts, nationally recognized sorts and Olympic sports.

8. Contributions and funds provided to technology incubators located within

academic institutions which are approved by the Central Government.

9. Contribution to the Prime Minister's National Relief Fund or any other fund set up

by the Central Government for socio-economic development and relief and

welfare of schedules castes, the scheduled tribes, other backward classes,

minorities and women.

10. Rural development projects.

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ANNEXURE C

DEFINITIONS

1. “Net Profit” shall mean net profit of the Company as per its financial statements

prepared in accordance with applicable provisions of the Act but shall not include:

i. Any profit arising from any overseas branch or branches of the Company,

whether operated as a separate company or otherwise and;

ii. Any dividend received from any other company in India, which are covered

under and complying with the provisions of Section 135 of the Act.

Note: “Average Net Profit’ shall be calculated in accordance with the provisions of section 198 of the

Companies Act, 2013.

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