Business Statistics

Group Assignment

Xavier institute of Management

Bhubaneswar

Under the Guidance of: Group 10

Prof. Bhabesh Sen BM Sec-F

Xavier Institute of Management Group Members:

Bhubaneswar Abhineet Joshi-UM16376

Abhijeet Mishra-UM16374

Aakash Gupta-UM16373

GyanMohan Tudu-UM16370

Md. Sarfaraz Hussain-UM16372

1
 Table of Contents
1. Corporate Social Responsibility.................................................................3
2. Laws Regarding CSR activities in India..3
2.1 Applicability
2.2 CSR Committee and Policy
2.3 Activities Under CSR
2.4 Local Area
3. Bharat Electronics Limited.5
3.1 Company Background
3.2 CSR Policy Statement
3.3 Areas of Initiative
3.4 CSR Committee structure..6
3.5 Budget Regulations
4. Company Background-Intel..7
4.1 Company Background
4.2 CSR Policy Statement8
4.3 Constitution of CSR Committee and Budget Regulations
5. Comparison.8
6. References.10

2
 CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or
responsible business) is a form of corporate self-regulation integrated into a business-model. CSR policy
functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance
with the spirit of the law, ethical standards and national or international norms. With some models, a
firm's implementation of CSR goes beyond compliance and engages in actions that appear to further some
social good, beyond the interests of the firm and that which is required by law. The aim is to increase long-
term profits and shareholder trust through positive public relations and high ethical standards to reduce
business and legal risk by taking responsibility for corporate actions. CSR strategies encourage the
company to make a positive impact on the environment and stakeholders including consumers,
employees, investors, communities, and others.

LAW REGARDING CSR ACTIVITIES IN INDIA

India`s Companies Act 2013 (Companies Act) has introduced several new provisions which changes the
face of Indian corporate businesses. One such new provisions is Corporate Social Responsibility (CSR). The
concept of CSR rests on the ideology of give and take. Companies take resources in the form of raw
materials, human resources etc. from the society. By performing the task of CSR activities, the companies
are giving something back to the society.

Ministry of Corporate Affairs has recently notified in Section 135 and Schedule VII of the Companies Act
as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 (CRS
Rules) which has come into effect from 1 April 2014.

Applicability

Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a Company
i.e.

(a) Net worth of the company to be Rs500 Crores or more

(b) Turnover of the company to be Rs1000 Crores or more

(c) Net profit of the company to be Rs5 Crores or more.

Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also
applicable to branch and project offices of a foreign company in India.

CSR Committee and Policy

Every qualifying company requires spending of at least 2% of its average net profit for the immediately
preceding 3 financial years on CSR activities. Further, the qualifying company will be required to constitute

3
a committee (CSR Committee) of the Board of Directors (Board) consisting of 3 or more directors. The CSR
Committee shall formulate and recommend to the Board, a policy which shall indicate the activities to be
undertaken (CSR Policy); recommend the amount of expenditure to be incurred on the activities referred
and monitor the CSR Policy of the company. The Board shall take into account the recommendations made
by the CSR Committee and approve the CSR Policy of the company.

The term CSR has been defined under the CSR Rules which includes but is not limited to:

Projects or programs relating to activities specified in the Schedule; or

Projects or programs relating to activities undertaken by the Board in pursuance of
recommendations of the CSR Committee as per the declared CSR policy subject to the condition
that such policy covers subjects enumerated in the Schedule.

This definition of CSR assumes significance as it allows companies to engage in projects or programs
relating to activities enlisted under the Schedule. Flexibility is also permitted to the companies by allowing
them to choose their preferred CSR engagements that are in conformity with the CSR policy.

Activities under CSR

The activities that can be done by the company to achieve its CSR obligations include eradicating extreme
hunger and poverty, promotion of education, promoting gender equality and empowering women,
reducing child mortality and improving maternal health, combating human immunodeficiency virus,
acquired, immune deficiency syndrome, malaria and other diseases, ensuring environmental
sustainability, employment enhancing vocational skills, social business projects, contribution to the Prime
Minister's National Relief Fund or any other fund set up by the Central Government or the State
Governments for socio-economic development and relief and funds for the welfare of the Scheduled
Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters as
may be prescribed.

Local Area

Under the Companies Act, preference should be given to local areas and the areas where the company
operates. Company may also choose to associate with 2 or more companies for fulfilling the CSR activities
provided that they are able to report individually. The CSR Committee shall also prepare the CSR Policy in
which it includes the projects and programs which is to be undertaken, prepare a list of projects and
programs which a company plans to undertake during the implementation year and also focus on
integrating business models with social and environmental priorities and process in order to create share
value.

The company can also make the annual report of CSR activities in which they mention the average net
profit for the 3 financial years and also prescribed CSR expenditure but if the company is unable to spend
the minimum required expenditure the company has to give the reasons in the Board Report for non-
compliance so that there are no penal provisions are attracted by it.

4
 BEL (Bharat Electronics Limited)
Company Background

BEL is an Indian state owned company that has its core business in the area of Aerospace and Defense. It
was setup in the year 1954 to indigenously produce communication equipment and now producing state
of the art equipment. It is producing specialized electronic equipment like RADAR, Weapon system, Tank
electronics etc. for Indian defense service as well as products for civilian like electronic voting machine,
Tablet PC, Solar powered traffic signal system, access control system.

BEL has undertaken various CSR activities and it has a well-defined CSR structure. BEL has undertaken
innumerable CSR activities like setting up hospital in Udupi, donating money for Andhra Pradesh Cyclone
affected areas, setting up new school buildings for various primary schools and many such activities and
continues to do them. BEL has set up educational institutions, including a special school for the mentally
challenged. It has also set up hospitals, fine arts clubs and sports facilities. These and other welfare
initiatives ensure a good quality of life for employees and their dependents. Some of these facilities also
serve the local community.

CSR Policy Statement

BEL recognizes and accepts the corporate social responsibility it shoulders whereby it resolves to serve
the environment that has sustained the activities and endeavors of BEL over the years. BEL is committed
to its stakeholders to conduct CSR activities in an economically, socially and environmentally sustainable
manner that is transparent and ethical.

Areas of Initiative

1. Eradicating hunger, poverty and malnutrition, promoting health care including preventive health
care sanitation including contribution to Swachh Bharat Kosh set up by the central government
for the promotion of sanitation and making available safe drinking water.
2. Promoting education, including special education and employment enhancing vocation skills
especially among children, women, elderly and differently abled and livelihood enhancement
projects.
3. Promoting gender equality, empowering women, setting up homes and hostels foe women and
orphans, setting up old age homes, day care centers and such other facilities for senior citizens
and measures for reducing inequalities faced by socially and economically backward groups.
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 including contribution to clean Ganga fund set up by government for the rejuvenation of
the river Ganga.
5. Protection of natural heritage, art and culture including restoration of buildings and sites of
historical importance and works of art, setting up public libraries, promotion of development of
traditional arts and handicraft.

5
 6. Contribution to prime Ministers Relief Fund or any other fund set up by Central Government for
Socio-economic development and relief and welfare of Schedule Castes, Schedule Tribes, other
backwards classes, minorities and women.
7. Contribution of funds provided to technology incubators located within academic institution
which re approved by central government.

CSR Committee structure

It has 3 levels namely Board Level, Apex committee level and Working committee level. Board level will
be headed by the Chairman and managing director. Apex committee by the head HR of different units and
the working committee will consist of group of official who will work full time/need based basis on the
CSR activities of BEL.

Budget Regulations

In every Financial Year, the company budgetary allocation for CSR expenditure for year shall be at least
2% of average net profits of the company made during immediate three preceding financial years. Average
net profit shall be calculated in accordance with the provision of section 198 of the Act. This needs to be
approved by the board. The company shall strive to maximize its spending on CSR.

The allocated funds for CSR activities of the financial year shall be utilized during the year. However, the
unspent amount will not lapse and will, instead be carried forward to the next year. Also the reasons for
failure to spend the required amount on CSR activities shall be brought out in Directors report.

6
 Intel Technology India Pvt. Limited

Company Background

Intel is a leader in the design and manufacturing of advanced integrated digital technology platforms. A
platform consists of a microprocessor and chipset, and may be enhanced by additional hardware,
software, and services. They sell these platforms primarily to original equipment manufacturers (OEMs),
original design manufacturers (ODMs), and industrial and communications equipment manufacturers in
the computing and communications industries. These platforms are used across the compute continuum,
in notebooks (including Ultra book devices), 2 in 1 systems, desktops, servers, tablets, phones, and the
Internet of Things (including wearables, retail devices, and manufacturing devices). They also develop and
sell software and services primarily focused on security and technology integration. Intels vision is if it is
smart and connected, it is best with Intel. As a result, their strategy is to offer complete and connected
platform computing solutions, and to continue to drive Moores Law.

CSR Policy Statement

Corporate social responsibility is an integral part of the governance and business practices of Intel
Technology India Pvt. Ltd. While the ambit of Intel Indias CSR practice is much larger, the following section
details the Companys CSR policy and spends made.

A) Education
Intel India supported the efforts of the government to improve the quality of education systems
for education transformation, and thereby creating opportunities for economic and social
development.
Intel India also conducted programs to improve quality and accessibility to education with
technology, and actively supported Indias inclusion and innovation agenda, thereby contributing
to the countrys national competitiveness and economic growth.
Intel India took the following initiatives:
(i) K-12 education programs for Teachers, Teacher Educators and Principals to enable them
to enhance student learning in classrooms.
(ii) Higher Education Programs to empower technology institutions, facilities & students in
reputed technology institutions across India by advocating excellence in Curriculum,
Research, Innovation and Entrepreneurship.
(iii) Digital Literacy programs like the Intel Learn Easy Steps Program for adult learners with
little or no experience with computers, who are in need of basic technology skills.

B) Women Empowerment
Through its long standing commitment to development of local communities, Intel India believes
that empowering girls and women is crucial to Indias progress on almost all development
indicators. Accordingly, Intel India supported the governments charter of promoting gender
equality and empowering women through a number of initiatives to promote women owned
businesses.

7
 C) Volunteering
Under the Intel Involved Matching Grants Program, Intel enabled its employees to invest their
time and skills at qualified government schools and NGOs. The eligibility employee hours thus
spent volunteering were matched with a monetary grant to the nonprofit from Intel Foundation
through an additional sum allocated by the Intel Foundation over and above the program budget.

Constitution of CSR Committee

The Board of Directors has constituted the CSR Committee
(i) Kumud Madhok Srinivasan
(ii) Arun Vasudev Rao
(iii) Tiffany Doon Silva

Comparison
Bharat Electronics Limited
Average net profit of the company- 1, 26,146.76 Lakhs
Prescribed CSR expenditure- 2,522.94 Lakhs.
Total Amount to be spent in the financial year- 789.27 Lakhs + (1,780.22 Lakhs)*

*In line with DPE guidelines, Project wise provision has been made in the books for amount yet to be
spent against the respective project.

Csr project Sector in which the Project area Amount outlay(in

project is covered Lakhs)
Construction of Promoting health Karnataka 383
medical word etc &
supply of medical
equipment
Construction of class Promoting education Karnataka , Andhra 364.30
rooms in educational Pradesh
institutions
Construction of cc road Restoration of Andhra Pradesh 20.00
under ap govt plan for buildings & sites of
improving smart & historical importance
heritage village-
Kuchipudi
Construction of class Promoting health care, Karnataka 439.28
rooms ,toilets, science sanitation and
block education
e-sagu-IT driven `Rural development Telengana 35
personalized Agri-
facilitator
Improving adopted Promoting Sanitation Maharashtra 591.55
villages under Swachh
Bharat Abhiyan

8
Skill training program Enhancing vocational Maharashtra 44
skills
Contributing to Asian Promoting Olympic New Delhi 65
shooting Olympic Sports
qualifying games
Improving road safety, Environmental Hyderabad 430
environment and Educational and public
cleanliness awareness
Green initiative at INS Ensuring Gujarat 75.00
Vasura environmental
sustainability
CSR admin overheads 122.36

Total 2569.49

INTEL INDIA
CSR REPORT FOR THE FINANCIAL YEAR 2015

The above mentioned figures are in Indian Rupees

9
 References

1. http://www.intel.in/content/www/in/en/corporate-responsibility/corporate-responsibility-
report-overview.html
2. http://www.bel-india.com/
3. http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
4. https://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-
responsibility-in-india.pdf
5. http://www.mondaq.com/india/x/366528/Corporate+Governance/Corporate+Social+Respon
sibility+Indian+Companies+Act+2013

10