Management’s vision:

The Board of Directors and management of the Devan Hospital committed to lay down guideline to make CSR a key business process for sustainable development of the society. It has, as its objectives, to undertake projects/programs primarily in underprivileged and needy sections of society which will enhance the quality of life and economic well-being of the communities in and round our plant and society at large.

Areas covering CSR activities:

The scope of the CSR activities of the Company will primarily try to cover the areas as specified in Schedule VII of the Companies Act, 2013 and may extend to other specific projects/ programs as permitted under the law from time to time. To summarise, the following activities shall be part of company’s CSR activities:

  • Eradicating hunger, poverty and malnutrition, promoting health care and sanitation;
  • Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
  • Promoting gender equality, empowering women, setting up homes and hostel for women and orphans, setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward group;
  • Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation natural resources and maintaining quality of soil, air and water;
  • Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art, setting up public libraries, promotional and development of traditional arts and handicrafts;
  • Measures for the benefit of armed forces veterans, war widows and their departments;
  • Training to promote rural sports, nationally recognised sports, paralympic sports and olympic sports;
  • 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 the Scheduled Castes, the Schedule Tribes, other backward classes, minorities and women;
  • Contribution or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
  • Rural development projects;
  • Slum area development;

Exclusion from CSR:

The following activity shall not form part of the CSR activities of the Company:-

  • The activities undertaken in pursuance of normal course of business of a company.
  • CSR projects/programs or activities that benefit only the employees of the Company and their families.
  • Any contribution directly/indirectly to political party or any funds directed towards political parties or political causes.
  • Any CSR projects/programs or activities undertaken outside India.

CSR Committee:

The Board of Directors shall constitute a CSR Committee comprising three or more directors out of which at least one director shall be an independent director as stated in Section 135(1) of the Companies Act, 2013 read with Rule 5(1) of Companies (Corporate Social Responsibility Policy), Rules, 2014. The CSR Committee shall submit periodical reports to the board of directors.

Sanctioning Process:

The Company shall prepare an Action Plan in the beginning of every Financial Year containing the amount it is required to spend in that Financial Year as well as the tentative allocation of funds for the Financial Year under different heads of activities, as per the CSR Policy of the Company and the relevant provisions of the Companies Act, 2013. The Action Plan shall be placed before the CSR Committee and the Board of Directors of the Company for approval.

For operational convenience, there shall be two level of sanctioning authorities for approving the funds that will be required for carrying out the CSR activities. The proposals for funding of projects not exceeding an amount of Rs. 5 lakhs, for each such project during a Financial Year, shall be placed before the Managing Director for sanction after ascertaining that such projects qualify under the requirements of the Companies Act, 2013 particularly the Schedule VII of the Act, the CSR Policy of the Company and covered by the allocation of fund in the Action Plan for the year. The proposals for funding of projects exceeding the amount of Rs. 5 lakhs for each project during a year shall be placed to the CSR Committee for approval.

Implementation Process:

CSR activities would be implemented by the Company in the following manner:

  • Direct funding;
  • Through registered trust/organisation;
  • Agency – either Government or Private;
  • In collaboration with other companies undertaking projects/programme in CSR activities; or
  • in such other manner as it may deem appropriate, expedient and beneficial;

The Company may also coordinate with the other Group Companies/Associate Companies so as to take a joint approach in CSR activities. However, in all such cases it has to be ensured that each such joint projects/ modules of projects may be specifically identified for each such Group Companies/ Associate Companies.

Disbursement process:

Every financial year, at least 2% of the average net profits made during the 3 preceding financial year shall be spent in pursuance of CSR policy. The Company shall disburse amounts not exceeding 25% of the amount sanctioned for a project on receipt of complete information, as required by the CSR team. The CSR team of the Company shall advise the Accounts Dept. when such advance payment shall be made. All subsequent disbursements shall be in stages depending on the progress of implementation after the CSR team is satisfied about the progress of implementation based on documentary evidences and, if considered necessary by them, after physical inspection. All disbursements by the Accounts Dept. shall be only after the CSR team advises the Dept. about the amount and timing of such disbursements. Under exceptional circumstances, the Managing Director may authorize release of funds not exceeding 10% of the sanctioned amount pending such verification of progress of implementation/ receipt of documents.

Disbursement process:

Devan has always sought to excel in all that it does, seeking to attain the highest standards of sustainability and ethicality as a transparent and morally responsible institution. It has committed itself to the core value of combining care with compassion and competence in keeping with the spirit of the nobility of its profession and prides itself in the selfless manner in which it has gone about, keeping its tryst with medical destiny.

Monitoring Process:

The Monitoring process of CSR activities will be determined by the CSR Committee on a case-to-case basis depending upon the nature of the CSR activity and the manner of implementation. Wherever any CSR activity is implemented through an approved implementation agency, suitable certificates from such agency shall be obtained on utilization of the funds provided by the Company and reports on the status of implementation and/or completion of the project, as the case may be, will be obtained by the Company.

Progress of identified CSR projects would be monitored by the CSR Committee quarterly. Monitoring Process:

The CSR team shall identify projects, submit proposal for sanction after ascertaining eligibility, monitor the progress of implementation and oversee the release of funds from time to time. For the purpose of verification of progress of implementation, particularly physical inspection at the site, the CSR team may use the services of the local Audit Firms and also, as and when considered appropriate by them, may take the assistance of the employees of the Company, Group/ Associate Companies based at locations near the project site when the cost of the sanctioned project does not exceed Rs. 5 lakhs in a year. In all other cases, the CSR team itself has to carry out the verification and inspection. The CSR team shall also ensure that it receives a report on the rogress of implementation of each of the projects and actual end-use of funds once a quarter.

The expenditure actually incurred for salaries, travelling, boarding and lodging and overheads of the CSR team upto an amount not exceeding 5% (or such other amount as may be approved under the Act from time to time) shall be included in the CSR expenditure.

Surplus arising out of CSR Activities:

In the event of any surplus that may arise out of the CSR projects or programmes or activities funded or implemented by the Company, such surplus shall not form part of the business profit of the Company.