RGVN (NE) Microfinance Limited’s mission is to provide financial and other support services to the underprivileged households in the Northeast to improve their quality of life. RGVN (NE) MFL has undertaken various Social Performance Management (SPM) initiatives such as financial literacy, organizing health camps, technical assistance on dairy farming, piggery, duckery, skill building, awareness on issues like environmental protection, leadership roles for women and girls, health and nutrition and legal issues relating to women.
The CSR mission of RGVN (NE) MFL aims to ensure the socio-economic development through different participatory and need based initiates which are in the best interest of the poor and deprived sections of the society helping them in becoming self - reliant and ensure their sustainable development.
The Companies Act 2013 has introduced provisions on Corporate Social Responsibility (CSR), which rests on the ideology of give and take. The term CSR has been defined under the CSR Rules which includes but is not limited to:
The Corporate Social Responsibility Policy (Also to be reffered for Social Performance Management Policy) of the RGVN (NE) MFL (“the CSR policy”) sets out the broad framework guiding its CSR / SPM activities. The Policy also sets out the principles and the rules that need to be adhered to while taking up and implementing CSR activities to be undertaken as specified in Schedule VII of the Companies’ Act, 2013 (excluding the activities pursued in the normal course of business) and the expenditure thereon.
The key objective of this policy is to:
This CSR Policy is applicable to RGVN (NE) Microfinance Limited, which is mandated with the CSR expenditure obligations as per Sec. 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.
This policy, which encompasses RGVN (NE) Microfinance Limited (“the Company”) philosophy for delineating its responsibility as a corporate citizen and lays down the guidelines and mechanism for undertaking socially useful programmes for welfare and sustainable development of the community at large, is titled as the Corporate Social Responsibility Policy of RGVN (NE) MFL (“CSR Policy”).
4. CSR Governance Structure
RGVN (NE) Microfinance Limited shall have a 3 tier structure for the governance of CSR responsibilities under the Companies’ Act and Rules comprising of the Board, CSR Committee and the Head of the CSR/SPM Department. The roles and responsibilities of each of the tiers are as mentioned below:
5. CSR Activities
The key focus area for RGVN (NE) MFL CSR activities to be pursued is chosen in such a way that broad Mission and Vision of RGVN (NE) Microfinance Limited be fulfilled. Through it activities it aims to reach out to the poor and marginalized providing for a holistic transformation leading to creation of just and fair society. This implies addressing critical issues of the poor and the marginalized like education, health, sanitation, environment and skill development.
The following thrust areas have identified which are in line with the mandate under Schedule VII of the Companies Act:
1. Eradicating hunger, poverty and
malnutrition, promoting preventive
health care and sanitation and making
available safe drinking water.
1. Health Camps:
Promoting Health care including Preventive
Health care through awareness programmes,
health check-ups, provision of medicine &
treatment facilities, program for preventing
diseases , building immunity and providing
financial assistance as loans for medical
2. Health and nutrition awareness:
3. Welfare Loan:
2. Promoting education, including special
education and employment enhancing
vocation skills especially among
children, women, elderly, and the
differently abled and livelihood
Various skill development trainings such as:
a) Cutting and knitting
b) Doll making
c) Food processing
d) Plastic cane bag / artificial flower
f) Livestock farming training
g) Other skill based trainings
3. Promoting gender equality,
empowering women, setting up homes
1. Financial Literacy Training:
Financial literacy training to the clients
to make the poor women aware about
the importance of small savings &
investments and avoiding wasteful
expenditures so that they can prepare
a rational financial plan and build their
2. Promoting gender equality
empowering women through
a) Women leadership trainings
b) Awareness programme on women
rights and legal issues.
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.
1. Animal Treatment Camps:
5. Protection of national heritage, art and
buildings and sites of historical
importance and works of art; setting up
development of traditional art and
1. Contribute towards
reconstruction and restoration of historical
2. Provides financial support for promotion of
3. Organize public meetings and events for
promotion of traditional handicrafts; provide
funds and other support to promote their work
through online shopping sites.
4. Promote art and culture
6. Measures for the benefit of armed
forces veterans, war widows and their
Future Scope for extended activities.
7. Training to promote rural sports,
nationally recognized sports,
Paralympics sports and Olympic
1. Awareness programme for promotion of
2. Providing for financial support to poor
8. 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
1. Contribute to Prime Minister National Relief
2. Providing funds and loan for welfare of
9. Contributions or funds provided to
technology incubators located within
academic institutions which are
approved by the Central Government
1.Providing computers to academics
10. Rural development projects and Slum
Integrated agriculture development.
Organising awareness programme in rural
Farmers Knowledge through IT-enablement.
Contribute towards sustainable asset building
for villages in collaboration with village
Infrastructure Development for e.g. setting up
of schools, day care centre etc.
Any other activities / project / program as specified in Schedule VII of the Companies Act, 2013, as amended from time to time, subject to the approval of the Board.
6. CSR Funds:
The corpus for carrying on the previously mentioned activities would include the followings:
The “Net Profit” means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Companies’ Act, but shall not include the following:
Provided that net profit in respect of a financial year for which the relevant financial statements were prepared in accordance with the provisions of the Companies’ Act, 1956 shall not be required to be re-calculated in accordance with the provisions of the Act.
All the utilization certificates, agreements, invoices with actual spend will be diligently documented and the records shall be available as and when required for scrutiny by auditors or regulators or other stakeholder.
The following shall not be treated as expenditure under CSR activities:
Any other activities pursued in the normal course of business of the RGVN (NE) MFL.
CSR activity plan and the proposed budget is to be placed by the CSR department to the CSR committee of the Board for recommendation which is to be approved by the governing board for execution.
7. Delivery Channels:
The Board may decide the activities to be undertaken within the CSR/SPM vertical and implementation through Operations Department of the Organisation. CSR/SPM vertical will primarily drive the activities through the Operation Department of the Organisation. RGVN (NE) MFL may decide to build CSR/SPM capacities of its staff undertaking CSR/SPM activities and of the employees. The expenditure of such program shall not exceed 5% of the total CSR/SPM expenditure of the organisation in one financial year.
The Board may decide to undertake its CSR/SPM activities through a registered trust or a registered company as it may deem appropriate from time to time subject to the following conditions:
RGVN (NE) MFL shall give preference to the local areas and the areas around where it operates for spending the amount earmarked for CSR activities.
8. Monitoring and reporting requirements
The CSR Committee would be responsible for monitoring CSR initiatives, progress on approved activities/Projects and shortfalls in achieving the CSR plan, if any. The Head of the CSR/SPM Department shall provide a half-yearly progress report to the CSR Committee of the Board, which would inter alia include the following:
The CSR Committee shall be responsible to report to the Board on the status of achievement of the CSR initiatives and its activities on half-yearly basis. The CSR Committee shall also report significant CSR activities and achievements in the Director’s Report in the RGVN (NE) MFL Annual Report.
The Board’s report of RGVN (NE) MFL shall include composition of the CSR Committee, an annual report on the CSR, contents of the policy developed and implemented by RGVN (NE) MFL on CSR initiatives as per the format given in Annexure 1. In case entire budget is not spent in a financial year, reasons for the same shall be specified in the CSR report. The aggregate expenditure on CSR activities shall also be disclosed by way of notes to accounts.
The CSR Policy and programs will also be disclosed on the website after requisite Board approval.
A separate CSR Manual describing the system & procedure to be used for carrying out the CSR related activities of the organization may be drafted.
Annexure 1: Reporting format to the CSR Committee and Board for disclosure in the Board’s report
The Board’s Report
CSR Projects/Programs listed for implementation – As presented to the Board by the
CSR team at the start of the FY 2015-16
[Ref Section 135(3)(a) and (b)]
|S.No||Name/ Title of the CSR project or activity identified||Sector in which project is covered||Projects of programs (1) Local area or other (2) Specify the State and district where projects or programs were undertaken||Amount outlay (budget) project or programs wise||Amount spenton the projects or programs Sub-heads:(1) Direct expenditure on projects or programs (2) Overheads||Cumulative expenditure upto there porting period||Amount spent:Direct or through implementing agency|