1. Policy Statement

1.1 Mercury Fabrics Private Limited (the “Company”) believes that Corporate Social Responsibility (“CSR”) extends beyond the ambit of business and should focus on a broad portfolio of assets – human, physical, environmental and social.

1.2 This Policy is framed pursuant to the provisions of Section 135 of the Companies Act, 2013.

2. CSR Vision

Promote sustainable and inclusive development as a responsible corporate citizen.

3. CSR Objective

Promote a comprehensive and integrated development through social and economic transformation.

4. Core CSR Commitments (Programs / Activities)

• Addressing identified needs of the underprivileged through initiatives directed towards:
  • improving livelihood,
  • alleviating poverty,
  • promoting education,
  • Sports and skill development,
  • empowerment through vocational skills,
  • promoting health and well-being and
  • establishing hospitals, old age homes etc.
• Ensuring environmental sustainability, ecological balance and protection of flora and fauna, conducting activities which promote biodiversity, conducting activities which promote ecological sustainability.
• Any other activity falling within the scope of Schedule VII of the Companies Act, 2013 which would enable the Company to achieve its CSR objectives.
• The CSR programs / activities of the Company, as above, are related / will relate to the activities included in Schedule VII of the Companies Act, 2013.

5. CSR Governance and Implementation

The Company would be carrying on its CSR programs / activities through the contributions made by the Company to various Trusts which will be utilized for CSR programs / activities on behalf of the Company.

6. Monitoring of CSR Activities

The CSR Committee of Directors of the Company will recommend to the Board of Directors of the Company the amount of expenditure to be incurred on CSR programs/activities, monitor the CSR Policy of the Company and review its implementation by the Company.

7. CSR Reporting and Communication

The Company will report on the progress of its CSR initiatives in its Annual Report.

8. Corporate Social Responsibility Committee (CSR Committee)

• The Board of Directors will constitute a CSR Committee consisting of 2 or more directors. The CSR Committee would formulate and recommend the draft CSR Policy to the Board of Directors and the Board of Directors would approve the Policy.
• The Board would approve and adopt any changes in the CSR Policy subject to prevailing provisions of laws in this regard. The CSR Committee is responsible for decision making with respect to the CSR Policy.
• The CSR Committee will meet as appropriate to review and monitor the implementation of CSR programs /activities of the Company.

9. Budget

• The Board shall ensure that a minimum of 2% of the average net profits of the Company of the last 3 years is spent on the CSR programs / activities of the Company.
• In case at least 2% of the average net profit of the Company of the last 3 years is not spent in a financial year, reasons for the same shall be specified in the Board’s report.
• In case at least 2% of the average net profit of the Company of the last 3 years is not spent in a financial year, the unspent CSR amount shall be transferred to the fund as specified in the Act within 6 months from the end of the financial year and the reasons for non spending the amount shall be specified in the Board’s report.
• All expenditure towards the CSR programs / activities will be diligently documented.
• Any surplus generated out of the CSR programs / activities of the Company will not be added to the normal business profits of the Company.