Kinara Capital envisions a financially inclusive world where every entrepreneur has equal access to capital. It transforms lives, livelihoods and local economies by providing fast and flexible loans without property collateral to small business entrepreneurs in India.
Our CSR Strategy is driven by the theme “Transformation”. Kinara Capital foresees CSR to drive the impact for marginalized group of society through various CSR campaign and programs.
The main objective of the CSR Policy is to lay down guidelines for impacting and transforming lives. In this aspect, our focus will be on the areas mentioned below:
Scope & Coverage
The CSR activities of the Company shall include, but not limited to any or all of the sectors/activities as may be prescribed by Schedule VII of the Companies Act, 2013 amended from time to time. Further, the Company will review the sectors/activities from time to time and make additions/ deletions/ clarifications to the above sectors/activities.
Section 135 of the Companies Act, 2013 prescribes that the companies which meets the specified criteria shall allocate at least 2% of the average net profit made during the three immediate preceding financial years.
“Average net profit” shall be calculated in accordance with the provisions of Section 198 of the Companies Act, 2013
The CSR expenditure shall include all expenditure including contribution to corpus or on projects or programs relating to CSR activities approved by the Board of Directors on the recommendation of CSR Committee but does not include any expenditure on an item not in conformity or not in line with activities stated under Schedule VII of the Act.
Expenditure on CSR capabilities
The Company may build CSR capabilities of their own personnel as well as of their Implementing Agencies and such expenditure shall not exceed 5% of the total CSR spend of the Company as stated in the Rules from time to time. Determination of whether a particular expenses fall within this 5% cap can be decided in consultation of the Chief Financial Officer of the Company based on the clarification available from time to time in this regard.
Failure to spend the CSR Money
If the Company fails to spend the required amount in a particular financial year, it is the duty of the Committee to submit a report in writing to the Board of Directors specifying the reasons for not spending the amount, which in turn shall be reported by the Board of Directors in their Annual Report pertaining to that particular Financial Year
Surplus, if any, arising out of the CSR projects or programs or activities shall not form part of the business profit of the Company.
The Company may either undertake CSR activities on its own or collaborate or pool resources to undertake CSR activities, through any non-profit organization, if required.
Pursuant to Schedule VII of the Act and the CSR Rules, the Company shall undertake CSR activities included in its Annual CSR Plan, as recommended by the CSR Committee at the beginning of each year. The Committee is authorized to approve any modification to the existing Annual CSR Plan or to propose any new program during the financial year under review.
Annual CSR Plan
The Annual CSR Plan is a yearly plan of CSR activities that would be placed before the Board of Directors of the Company based on recommendation of its CSR Committee which outlines inter alia the following aspects of CSR initiatives of the Company:
Implementation of CSR Initiatives
The Company may directly or through a registered trust, society or Company established under Section 8 of the Companies Act, 2013 undertake CSR activities in accordance with Rule 4 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 for purposes directly relatable to programs covered under Schedule VII of the Act.
It is expressly allowed under the CSR Rules that the Company may collaborate with any other Company or association formed in this regard subject to approval by CSR Committee, to implement CSR activities and the same shall form a part of the Annual CSR Plan.
Disqualifying Activities for CSR
As per the CSR Rules, the contents of the CSR Policy shall be included in the Board’s Report and the same shall be displayed on the Company’s website.
The administration and execution of identified CSR projects, programs and activities shall be carried out under the control and supervision of the Internal Committee formed for this purpose. The Internal Committee shall submit its report on quarterly basis to the CSR committee formed under the Act, which shall be responsible for overall monitoring of the CSR activities.
The CSR Committee shall report about the progress of such activities/projects/programs to the Board at least once in every six months or as and when required by the Board.
Further, the Board of Directors may revise/ amend this CSR Policy based on the recommendations of the CSR committee or to bring the same in line with the guidelines or amendments issued from time to time by Government on the subject.