IIFL Capital Services Ltd (Formerly known as IIFL Securities Ltd)
(hereinafter referred to as “IIFLCSL”) is one of the key capital
market players in the Indian financial services space. IIFLCSL along
with its subsidiaries offers advisory and broking services, financial
products distribution, institutional research and investment banking
services.
IIFLCSL is guided by IIFL Group’s vision to become the most respected
brand in the financial services space in India. To realize this
vision, IIFLCSL recognizes the importance of contributing to
sustainable social transformation. The approach to the business
focuses on one hand; on building trust, knowledge and delivering
quality service to its customers and on the other; to provide timely
assistance to its customers.
IIFLCSL strongly believes that Corporate Social Responsibility (CSR)
is connected with the principles of sustainable growth.
The Corporate Social Responsibility Policy (hereafter referred to as
‘Policy’) of IIFL Capital Services Ltd has been designed in accordance
with Section 135 of the Companies Act, 2013 (hereafter referred to as
‘Act’) to lay down the guidelines for undertaking CSR initiatives at
IIFLCSL and its subsidiaries in accordance with the Companies
(Corporate Social Responsibility Policy), Rules, 2014 (hereafter
referred to as ‘Rules’). This Policy lays down the guiding principles
or rules that shall apply to all CSR programs/projects to be
undertaken by the Company and its subsidiaries as per Schedule VII of
the Act.
2. Purpose
The key purpose of this policy is to:
Define the broad development areas that IIFLCSL shall undertake
Outline the governance structure for management of CSR activities
within the company
Serve as a guiding document to help identify, execute and monitor
CSR projects
Explain the manner in which the surpluses from the CSR projects
will be treated
3. Policy Statement
IIFLCSL’s CSR Policy and projects are steered by its values, which can
be summarized in one acronym – FIT, which stands for:
Fairness: To everybody - government, stakeholders, customers,
employees and society.
Integrity: Honesty. we never compromise on it.
Transparency: We are transparent about whatever we do.
By embedding these values in its CSR approach, IIFLCSL aims to
undertake initiatives that create sustainable growth and empower the
underprivileged sections of the society.
4. Scope of CSR Policy
This Policy applies to all CSR projects undertaken by IIFLCSL and
fulfils all the requirements of Section 135 of the companies Act 2013.
IIFLCSL shall ensure all these activities are over and above the
normal course of business and are in line with Schedule VII of the
Companies Act 2013. The Policy will be periodically reviewed and
updated in line with relevant codes of legislation, international
standards and best practices followed globally.
5. IIFL Foundation
IIFL Foundation was constituted under section 8 of the Companies Act,
2013, to act as the umbrella organization for managing and
implementing all CSR projects of IIFL and its Group companies. The
Foundation partners with implementation agencies that best fit the
Group’s values and priorities. The Foundation is working towards
achieving its vision ‘to eradicate girl child illiteracy and inspire
them for higher education’. IIFL Foundation has registered with the
Central Government by filing the form CSR-1 and has received its CSR
Registration Number of CSR00002470.
6. Key Focus Areas
The CSR projects undertaken by IIFL Foundation are clubbed under the
heading HELP (Health, Education, Livelihood and Poverty alleviation).
Focus area
Focus area
Initiatives and projects
6.1 Health
IIFL Foundation’s primary focus is on promoting preventive
healthcare, undertaking healthcare initiatives and supporting
medical research institutions. The objective is to enhance
healthcare access, especially to the disadvantaged and
underprivileged sections.
Aarogya
COVID-19 prevention
Mega health camps
Distribution of oxygen concentrators
6.2 Education
IIFL Foundation believes that a literate population can catapult
India towards realizing its demographic dividend. Education is
one of the key focus areas for CSR for the foundation. The focus
is on providing education to out-of-school girls, setting up and
upgrading educational facilities and supporting institutes for
higher education. Special focus shall be levied over promotion
of education in rural areas and among female population to
enhance literacy rate of girls.
Sakhiyon Ki Baadi
Volunteering
Maa Baadi centers
Construction of schools
Mobile schools
Scholarships
6.3 Livelihood
IIFL Foundation has identified the key strengths and limitations
of people belonging to its communities. Accordingly, it has
identified animal husbandry, women employment and promotion of
local art and craft as its key focus areas.
Animal husbandry
Women employment
e-Mela
6.4 Poverty alleviation
IIFL Foundation has been fulfilling the aspirations of customers
belonging to all sections of the society. The Foundation has
focused actively on promoting financial literacy among its
communities.
Financial literacy
In addition to the above, IIFL Foundation will also continue to make
contribution to several schemes of the governments, undertake active
disaster relief activities, drive environment sustainability and
promote sports. It may also undertake one-time projects based on the
needs of the communities.
The Foundation will continue to add more initiatives under each of its
focus areas from time to time.
7. Partnering Organizations
IIFL Foundation undertakes its CSR activities in multiple ways such
as:
Utilizing the contributions received by the Foundation
Working with implementing agencies
Undertaking collaborative projects with other corporates
The Foundation executes the CSR responsibilities either (i) directly,
by executing and implementing programs permitted under Schedule VII
and approved by the CSR Committee or (ii) by entering into
partnerships with implementing organizations registered in India and
having a track record of service, performance, governance and
accountability.
8. Governance Structure
IIFLCSL has constituted a robust and transparent governing mechanism
to oversee the implementation of its CSR Policy, in compliance with
the requirements of the Section 135 of the Companies Act 2013.
At the helm of this mechanism is the Board of Directors, who is
ultimately accountable for the CSR projects undertaken by the company.
IIFLCSL has constituted a CSR Committee at the Board level. The CSR
Committee is supported by the Chief Financial Officer (CFO), IIFL
Foundation’s CSR Team and comprises representatives from IIFLCSL as
well as IIFL Foundation.
CSR Governance Structure
9. Responsibilities of the Board of Directors
The Board of Directors of IIFLCSL will be responsible for:
Nominating a CSR Committee comprising minimum three Directors
Approving the CSR policy after taking into account the
recommendations made by the CSR committee
Ensuring that the Company shall, in each of the financial year spend
at least the amount on CSR initiatives as has been prescribed by the
Companies Act, 2013 and the rules made thereunder from time to time
Ensuring that primarily the activities as included in CSR Policy of
the company are undertaken
Monitoring that in every financial year, funds committed by the
Company for CSR activities are utilized effectively and
implementation is regularly reviewed.
Reporting / providing the details as may be prescribed by the Act
and the rules made thereunder.
10. CSR Committee
IIFLCSL has constituted a CSR Committee, established by Resolution
of the Board of Directors of the Company (The ‘Board’) and is to be
known as the ‘CSR Committee’. It shall report to the Board and
oversee CSR matters.
The CSR Committee shall consist of three or more Directors – out of
which one will be independent director.
The CSR Committee may invite any person as they may deem fit to
attend meetings of the CSR Committee when required, notwithstanding
that they are not members of the CSR Committee.
Quorum shall be two members personally present at the meeting. A
duly convened meeting of the CSR Committee at which a quorum is
present shall be competent to exercise all or any of the
authorities, powers and discretions vested in or exercisable by the
CSR committee.
The Company Secretary / Assistant Company Secretary shall act as the
secretary of the CSR Committee and shall keep a record of the
membership of and the dates of any changes to the membership of the
CSR Committee. He / She shall be responsible to record the minutes
of the Meeting.
Meetings shall be held at such times as the CSR Committee deems
appropriate, and in any event shall be held not less than two times
in a financial year.
CSR Committee will be governed by the Companies Act, 2013 and rules
made there under and Company’s Articles of Association regulating
the meetings and proceedings of the Directors.
Meetings of the CSR Committee shall be convened by the Company
Secretary / Assistant Company Secretary at the request of the
Chairman or any member thereof.
CSR Activities shall be activities as specified in Schedule VII of
the Companies Act, 2013, and as amended by the Ministry of Corporate
Affairs from time to time.
The CSR Committee may at the expense of the Company investigate any
matter within its terms of reference. It is authorized to seek any
information that it requires from any employee in order to perform
its duties and all employees are required to cooperate with any
requests made by the CSR Committee.
The CSR Committee may at the expense of the Company secure external
professional advice and attendance of third parties with relevant
experience and expertise at meetings of the CSR Committee, if it
considers this necessary.
The CSR Committee shall have all necessary authority to carry out
its duties and responsibilities. Without limitation to the
generality of the foregoing, the Committee shall have the authority
to engage (including authority to approve fees and other retention
terms) and terminate the engagement of any Social Responsibility
consulting firm to provide data or recommendations with respect of
CSR projects.
IIFLCSL shall provide and make available to the Committee, as it may
determine, funds for undertaking CSR activities and to pay
compensation to any advisers engaged by the Committee.
The CSR Committee is empowered to frame, review and modify the
criteria / processes for selecting the projects, laying down the
criteria for performance evaluation of the projects, selecting the
implementation entities / partners and decide on any matter that it
may deem pertinent to effectively discharge its responsibilities.
CSR Committee shall monitor the implementation of the CSR Policy
through periodic reviews of the activities of the external agencies
/ NGOs in compliance with the Act and ensure that funds spent on CSR
programmes are creating the desired impact.
10.1 CSR Team
This team is at the core of all CSR activities at IIFL Foundation. It is
responsible for ensuring effective implementation of all CSR projects.
Key responsibilities of the IIFL Foundation’s CSR team include:
Execution of the decisions taken by the CSR Committee
Identification of the project and the partner
Conducting due diligence on the partner
Implementing and assessing impact
Report periodically to the CSR Committee
Review progress of projects every quarter
10.2 CSR Advisory Committee
The Advisory Committee constituted by IIFL Foundation shall provide
inputs to the CSR team to help them plan and implement CSR projects.
11. Third Party Implementing Bodies
It is the responsibility of the CSR Committee, while the
implementation modality of a CSR project/ program is defined, to
ensure that the external body that would execute the said project /
program is clearly identified. In case the external body is a NGO or
an Agency other than an NGO, it shall meet the following criteria:
Have a permanent office/address in India;
Be a registered society under Societies’ Registration Act or a Sec
25 Company (Registered under the Companies Act, 1956) or a Sec 8
Company (Registered under the Companies Act, 2013)
Be registered under CSR 1 certification guidelines
Have a track record of at least three financial years
Have verifiable antecedents and verifiable credentials
Maintains duly audited annual accounts
Preferably possess a valid Income‐tax Exemption Certificate
12. CSR Budget
The total budget for the CSR projects is decided annually in accordance
with the goals and priorities of IIFLCSL.
13. Approach for Utilizing the CSR Budget
The CSR Committee decides on the following aspects of utilizing the
CSR amount:
Percentage of total amount to be contributed to the Foundation for
undertaking earmarked projects
Percentage of total amount to be used for directly funding the
implementing organizations and/or for collaborative projects with
corporates, if any
Amount to be contributed towards the corpus of the Foundation
Any income arising from the contributions received by the Foundation
and surplus arising out of the CSR activities will be used for CSR
projects only
Amount to be contributed for building the capacities of the CSR
team. Such expenditure, including expenditure on administrative
overheads, will be subject to the limits prescribed under the
Companies Act, 2013 and CSR Rules.
14. Project Life-Cycle
IIFL Foundation plans, implements, monitors and manages all CSR projects
of IIFLCSL. The Foundation works closely with the CSR Committees of the
Board of IIFLCSL, the CSR team and the CSR Advisory committee to
identify projects that are in alignment with the vision and goals of the
company.
Following the approval of the Boards of the companies of IIFLCSL and
the Chief Financial Officer, the CSR team formulates implementation
plans for the projects specifying the following:
I. Activities to be undertaken
II. Budgets proposed
III. Time frame of implementation
IV. Responsibilities and authorities for implementation
V. Results expected to be achieved post implementation
The IIFL Foundation is responsible for ensuring the smooth execution of
all CSR projects undertaken by the Group. The Foundation choses to
implement the projects by itself or ensures that projects are awarded to
implementation agency that is a Registered Trust or a Society or a
Section 8 Company. Potential partner NGOs must have a clearly explained
mission and vision and should be able to provide their latest audit,
annual reports and registration forms according to 80G/12A.
14.1 Monitoring
The IIFL Foundation’s CSR team monitors the implementation and progress
of the approved projects through appropriate mechanisms such as site
visits, review meetings and progress reports. Mechanisms to track data
and monitor projects are being established to ensure the transparency
and efficiency of the implementation process. The projects are evaluated
against the milestones defined in the implementation plan of the
project. The CSR team presents monitoring reports of the projects to the
Board of Directors/CSR Committee on a periodic basis.
14.2 Reporting
The Board of the company holds the responsibility that Funds of CSR are
utilized for the purposes and in the manner as approved by it and the
Chief Financial Officer, certifying its effect.
The CSR Committee of the Board, based on the reports presented by the
CSR team, annually publishes report on the CSR projects as a part of the
Directors’ report. The report discloses information in the format
prescribed by the Section 135 of the Companies Act of 2013. The CSR
Committee also submits a responsibility statement to the Board that the
implementation and monitoring of the CSR Policy is in compliance with
the approved CSR Policy of the company.
The CSR Policy and any modifications made thereof, once approved by the
Board, are being displayed on the website of the Company.
15. Impact Assessment
In pursuance to the subsection (5) of section 135 of the Act, for an
average CSR obligation of ten crore rupees or more, in the three
immediately preceding financial years, an impact assessment, through an
independent agency, of the CSR projects having outlays of one crore
rupees or more, and which have been completed not less than one year
before undertaking the impact study, shall be conducted.
16. Treatment of Surpluses
Any surplus generated from the projects undertaken by the Foundation are
being tracked and channelized into the CSR corpus of the Foundation.
These funds will be further used in development of the CSR projects and
will not be added to the normal business profits.
17. Policy Review
This CSR Policy shall be reviewed once in three years and suitable
improvisations shall be done as required.
The CSR policy shall be subservient to the provisions of the
Companies Act, 2013, and Rules made there under, from time to time.
18. Contact
For queries related to CSR policy, please write to us at:
csr@iifl.com.
