CONTENT

TOPIC PAGE NO.

1. Introduction 1
2. Ways to practice CSR 1
3. Applicability of Corporate Social
Responsibility to Companies 2
4. Role of Board of Directors in CSR 2
5. Organization Selected 2
6. CSR initiative of WBSEDCL 3-6
7. Financial Details of CSR Program
in the Year 2016-17 6
8. Reasons for amount Unspent 6
  Introduction

Consumers consider more than quality goods and services when

choosing a brand. Many are prioritizing corporate social responsibility (CSR),
and holding corporations accountable for effecting social change with their
business beliefs, practices and profits. In fact, some will even turn their back on
their favorite companies if they believe they're not taking a stand for societal
and environmental issues.

Undertaking socially responsible initiatives is truly a win-win situation.

Not only will your company appeal to socially conscious consumers and
employees, but you'll also make a real difference in the world.

 Ways to practice CSR

1. Environmental efforts: One primary focus of corporate social responsibility

is the environment. Businesses regardless of size have a large carbon footprint.
Any steps they can take to reduce those footprints are considered both good
for the company and society.

2. Philanthropy: Businesses can also practice social responsibility by donating

money, products or services to social causes. Larger companies tend to have a
lot of resources that can benefit charities and local community programs.

3. Ethical labor practices: By treating employees fairly and ethically, companies

can also demonstrate their corporate social responsibility. This is especially
true of businesses that operate in international locations with labor laws that
differ from those in the United States.

4. Volunteering: Attending volunteer events says a lot about a company's

sincerity. By doing good deeds without expecting anything in return,
companies can express their concern for specific issues and support for certain
organizations.
  Applicability of Corporate Social Responsibility to Companies

Corporate Social Responsibility is required for all companies viz. private

limited company, limited company. The following companies are necessary to
constitute a CSR committee:

 Companies with a net worth of Rs. 500 crores or greater, or

 Companies with a turnover of Rs. 1000 crores or greater, or
 Companies with a net profit of Rs. 5 crores or greater.
If any of the above financial strength criteria are met, the Corporate
Social Responsibility (CSR) provisions and related rules will be applicable to the
company. These companies are required to form a CSR committee consisting of
its directors. This committee oversees the entire CSR activities of the Company.

 Role of Board of Directors in CSR

The board of directors of a company plays a significant role in CSR

activities of the company. The role of Board is as follows:

i. Approval of the CSR policy.

ii. Ensuring its implementation.
iii. Disclosure of the contents of CSR policies related to its report.
iv. Placing the same on Company’s website.
v. Ensuring that statutory specified amount is spend by the company
with reference to CSR activities.

It’s significant to note that there is no penalty if the particular amount is

not spent on CSR activities. In such case, the board’s report must identify the
reason for such short spending.

 Organisation Selected:

West Bengal State Electricity Distribution Company Limited (WBSEDCL).

 Net worth of Company (in crores) : 2146.00 *

 Average Net Profit for last 3 years (in laks) : 2015.00 *
(* Note: All data as per Annual Reports & Accounts, 2016-17, WBSEDCL)

 CSR initiative of WBSEDCL

 WBSEDCL with its broader mission to become the best power
distribution company in the country shall stride for the development of the
society as a whole and its customers, service providers and employees in
particular, to the extent its resources afford and with certain broad principles
on ‘Corporate Social Responsibility'.

WBSEDCL is taking part in Corporate Social Responsibility Schemes for

improvement of socio-economic conditions under jurisdiction of WBSEDCL like
Construction of School Building, Road Development Works, Tube well
installation, Free Medical Camp, Computer Distribution to Local High School
etc.

 SHORT TITLE AND COMMENCEMENT:

The policy is called "West Bengal State Electricity Distribution Company

Limited Corporate Social Responsibility Policy-2014" and has been effective on
and from 1" April, 2014.

 OBJECTIVES:

The Company with its broader mission to become the best power
distribution company in the country strides for the development of the society
as a whole and its customers, service providers and employees in particular, to
the extent its resources allow and with certain broad principles on Corporate
Social Responsibility.

 WBSEDCL'S APPROACH TOWARDS CORPORATE SOCIAL

RESPONSIBILITY:

The approach of WBSEDCL towards Corporate Social Responsibility

would be oriented to identify and formulate CSR projects/programs as per
statutory requirement and to implement them with full involvement and
commitment in a time bound manner. In cases where other
agencies/organizations are involved, approach would be to focus on
collaboration and partnership. It will also provide financial assistance in the
form of grant-in-aid assistance, contribution etc.

 AIMS AND OBJECTIVES:

 As a responsible corporate entity, WBSEDCL will consistently strive for
opportunities to meet the expectation of its stake holders by pursuing the
concept of sustainable development with focus on undertaking statutorily
required CSR projects/programs within India. Note: CSR activities of WBSEDCL
should be carried out in a win-win situation/ perspective where the society
would be benefited from such activities at the same time image of the
Company would be shining as the pay-back/ return on investment.

 ACTIVITIES UNDER CSR:

WBSEDCL would endeavor to adopt an integrated approach to address

the community, societal & environmental concerns by taking up a range of the
following activities, which shall be taken up strategically, in a focused manner
to the extent possible and allowed as per the CSR policy.

 SCOPE OF CSR:

For attaining the above aims and objectives the following activities can
be undertaken under Corporate Social Responsibility:

i. eradicating hunger, poverty and malnutrition, promoting preventive

health care and sanitation and making available safe drinking water
ii. promoting education, including special education and employment
enhancing vocation skills especially among children, women, elderly,
and the differently abled and livelihood enhancement projects
iii. 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 measures
for reducing inequalities faced by socially and economically backward
groups
iv. 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
v. 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 development of traditional
arts and handicrafts
 vi. measures for the benefit of armed forces veterans, war widows and
their dependents
vii. training to promote rural sports, nationally recognized sports,
Paralympic sports and Olympic sports
viii. 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
Scheduled Tribes, other backward classes, minorities and women
ix. contributions or funds provided to technology incubators located
within academic institutions which are approved by the Central
Government
x. rural development projects.

 PROHIBITED ACTIVITIES UNDER CSR:

The Company will abstain from carrying out following activities under
CSR which may create dissatisfaction among any section of the Society:

i. activities concerned with religion like construction of temple/mosque

etc.
ii. activities disturbing social harmony in any manner
iii. contribution of any amount directly or indirectly to any political
party.

 MONITORING:

The effectiveness of CSR activities will be evaluated by the CSR

Committee with assistance from external agencies, if required, for getting
required feedback & inputs to formulate & improve the CSR activities in future.

 ALLOCATION OF FUNDS:

The Board of the Company shall ensure that the company spends, in
every financial year at least two per cent of the average net profits of the
Company made during the three immediately preceding financial years. A
major portion will be allocated for carrying out CSR activities in project affected
areas. Allocation of funds will be based on the proposals submitted and the
overall availability of funds.
  GENERAL:

Surplus, if any arising out of the CSR projects or programs of activities

shall not form part of the business profit of the Company. The power to
interpret, administer and right to minor modification/amendment to the policy
shall rest with CMD whose decision shall be final and binding. The Company
reserves the right to modify, cancel, add or amend any of the provisions in the
policy.

 Financial Details of CSR Program in the Year 2016-17

 Prescribed CSR Expenditure (2% of the average net profit)(in lakh) :
40.30 *
 Amount Sanctioned for CSR (in lakh) : 66.27 *
 Amount Spent (in lakh) : 17.70 *
 Amount Unspent (in lakh) : 48.57 *
(* Note: All data as per Annual Reports & Accounts, 2016-17, WBSEDCL)

 Reasons for amount Unspent

An amount of 29,76,022/- (Rupees twenty nine lakh seventy six

thousand twenty two only) sanctioned in favour of Lowakui School and Tribal
Village Community Hall at Baghmundi, Purulia for permanent infrastructure,
could not be spent within F.Y. 2016- 17 as the design & planning of the
structure to be constructed took some more time for finalization. It is expected
that the work would be completed within the financial year 2017-18. Despite
execution of all the sanctioned CSR Scheme for the F.Y. 2016-17 except
aforesaid one involving additional amount of 18,34,430/- (Rupees eighteen
lakh thirty four thousand four hundred thirty only) the same has not been
shown under expenditure head as the release of payment could not be
accomplished within 31 March, 2017.