Grasim Industries Limited

Corporate Social Responsibility Policy

Introduction:
Our CSR policy has been framed in conformity with the stipulations specified by the
Ministry of Corporate Affairs, Companies Act, 2013 and subsequent amendments from
time to time to date. It is mandatory for all of our Group Companies to adhere to this
policy.

For us in the Aditya Birla Group, reaching out to underserved communities is part of
our DNA. We believe in the trusteeship concept. This entails transcending business
interests and grappling with the “quality of life” challenges that underserved
communities face and working towards making a meaningful difference to them.
Grasim Industries Limited (“the Company”) is a part of Aditya Birla Group, it fully
subscribes to this policy.

Our vision is –
“To actively contribute to the social and economic development of the communities in
which we operate. In so doing, in sync with the United Nations Sustainable
Development Goals build a better, sustainable way of life for the weaker sections of
society and raise the country’s human development index.” (Mrs. Rajashree Birla,
Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development).

Scope
Planning and conceptualisation, formulation, collaboration, implementation,
monitoring, evaluation, documentation, and reporting constitutes its key planks.

Guiding Principles
Implementation process: Identification of projects
All projects are identified in consultation with the community in a participatory manner,
literally sitting with them and gauging their basic needs. We recourse to the
participatory rural appraisal mapping process. Subsequently, based on a consensus
and in discussion with the village panchayats, and other stakeholders, projects are
prioritized.

Arising from this the focus areas that have emerged are education, healthcare,
sustainable livelihood, sports, infrastructure development, and espousing social
causes. All of our community projects/programmes are carried out under the aegis of
The Aditya Birla Centre for Community Initiatives and Rural Development and are
implemented directly by the Company or through implementing agencies, Section 8
Companies, Trusts, Societies etc. in line with the Companies Act, 2013. The activities
are in line with Schedule VII of the Companies Act, 2013 as indicated:

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In Education, our endeavour is to spark the desire for learning and knowledge at
every stage through • Formal schools • Balwadies • Quality elementary education •
Aditya Bal Vidya Mandirs • Girl child education • Non formal education.
In Healthcare our goal is to render quality health care facilities to people living in the
villages and elsewhere through • our hospitals. • Primary health care centres • Mother
and Childcare projects • Immunization programmes with a thrust on polio eradication
• Programmes to address malnutrition. • Anganwadi • Adolescent health • Health care
for visually impaired, and differently abled • Preventive health care through awareness
programmes • Non communicable diseases • Safe drinking water • Sanitation &
hygiene

In Sustainable Livelihood our programmes aim at providing livelihood in a locally

appropriate and environmentally sustainable manner through • Formation of Self Help
Groups for women empowerment • Skill Enhancement and Vocational training •
Partnership with Industrial Training Institutes • Agriculture development and better
farmer focus • Animal Husbandry • Soil and Water conservation • Watershed
development. • Agro Forestry • Renewable sources of energy.

In Infrastructure Development we endeavour to set up essential services that form

the foundation of sustainable development through • Basic infrastructure facilities •
Housing facilities.

To bring about Social Change, we advocate and support • Dowry less marriage •
Widow Remarriage • Awareness programmes on anti-social issues • De-addiction
campaigns and programmes • Espousing basic moral values. • Gender equality.

Activities, setting measurable targets with timeframes and performance

management.

Prior to the commencement of projects, we carry out a baseline study of the villages.
The study encompasses various parameters such as – health indicators, literacy
levels, sustainable livelihood processes, and population data - below the poverty line
and above the poverty line, state of infrastructure, among others. From the data
generated, a 1-year plan and a 4-year rolling plan are developed for the holistic and
integrated development of the marginalized. These plans are presented at the Annual
Planning and Budgeting meet. The one Year plan is the annual plan and the 4-year
rolling plan is a multi-year project undertaken in fulfilment of our CSR obligation. Here
the timelines for completion do not exceed three years excluding the financial year in
which the project began. All projects/programmes are assessed by a reputed external
agency. Alongside projects are monitored every quarter, measured against targets
and budgets. Wherever necessary, midcourse corrections are affected. The surplus,
if at all, arising out of the projects/programmes do not form part of the business profit
of the Company and are ploughed back into the CSR activities within a period of six
months of the expiry of the financial year.
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Organizational mechanism responsibilities
The Aditya Birla Centre for Community Initiatives and Rural Development provides the
vision under the leadership of its Chairperson, Mrs. Rajashree Birla. The CSR
committee of Directors at the Board level comprises of:

▪ Mrs. Rajashree Birla, Chairperson

▪ Ms. Anita Ramachandran, Independent Director
▪ Mr. Harikrishna Agarwal, Managing Director
▪ Permanent Invitee: Dr. (Mrs.) Pragnya Ram, Group Executive President, CSR,
Legacy Documentation & Archives

This vision underlines all CSR activities. Every Manufacturing Unit has a CSR Cell.
Every Company has a CSR Head, who reports to the Group Executive President
(CSR, Legacy Documentation & Archives) at the Centre. At the Company, the
Business Director takes on the role of the mentor, while the onus for the successful
and time bound implementation of the projects is on the various Unit Presidents and
CSR teams. To measure the impact of the work done, a social satisfaction survey /
audit is carried out by an external agency.

All projects/programmes are placed before the CSR committee. The modalities of
execution and the implementation schedules are presented to the Board. The Board
reviews the annual action plan, which includes resource requirements and allocation
across interventions and locations. Importantly, the impact assessment study is also
reviewed by the Board. The decision regarding taking up CSR activities shall vest with
the Board of Directors of the Company within the ambit of Schedule VII, Section 135
of the Companies Act 2013, CSR Rules 2014 and the rules made thereafter.

A robust implementation structure, monitoring process and a team of professionals is

in place at the Company units.

To measure the impact of the work done, a social satisfaction social audit / impact
assessment study is carried out by a third party.
Partnerships
Collaborative partnerships are formed with the Government, the District Authorities,
the village panchayats, NGOs, funding agencies, community-based organizations
(CBOs) and other like-minded stakeholders. All NGOs / collaborating organisations
have to be registered under 12A and 80G of the Income Tax Act, 1961 and should
have a CSR Registration Number. The company may collaborate with other Aditya
Birla Group companies, or other companies with similar developmental objectives for
undertaking CSR projects or programmes in such a manner that the CSR committees
of respective companies are in position to report separately on such projects or
programmes in accordance with these rules. This helps widen the Company’s CSR
reach and leverage upon the collective expertise, wisdom and experience that these

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partnerships bring to the table. In collaboration with FICCI, we have set up Aditya Birla
CSR Centre for Excellence to make CSR an integral part of corporate culture. The
Company engages with well-established and recognized programs and national
platforms such as the CII, FICCI, ASSOCHAM to name a few, given their commitment
to inclusive growth.

Budgets
A specific budget is allocated for CSR activities. The budget is project driven.
The Budget provision towards CSR initiatives shall be at least 2% (two percent) of the
average net profit of the Company (PBT) made during the 3 immediately preceding
financial years calculated in terms of Section 198 of the Companies Act, 2013.

If the budget allocated in a year remains un-utilized, the Board shall in its report explain
the reasons for the unspent amount. The surplus arising out of CSR shall not form part
of business profit and shall be ploughed back into the same project.

Based on the emerging needs, every year, a specific budget is allocated for CSR
activities. List of activities to be undertaken by the Company along with financial
allocation against each activity will be recommended by the CSR Committee and
approved by the Board of Directors of the Company.

CSR Expenditure
CSR expenditure shall include all expenditure including contribution to corpus, or on
projects or programs relating to CSR activities approved by the Board on the
recommendation of its CSR Committee.

CSR Reporting
The Board of Directors takes into account the recommendations of the CSR
Committee. The CSR Policy is approved by the Board, and it is posted on the
Company’s website.

Furthermore, the annual CSR report shall form a part of Board’s Report. It will include
the impact assessment study. All CSR projects with an outlay of Rs.1 crore or more
will be assessed for impact through an independent agency. These projects have to
span a year of work before the impact study is taken.

Information dissemination
The Company’s engagement in this domain is disseminated on its website, Annual
Reports, in- house journals and through the media. The Company shall disclose the
composition of CSR Committee, CSR Policy and projects approved by the Board on
their website for public access.

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Review of Policy
The Board of Directors based on the recommendation of CSR committee may alter or
amend this policy, which nevertheless will be reviewed after a 3-year interval. During
the applicability of this policy, in case of any perceived conflict between the Companies
Act, 2013 or Rules made thereunder & the policy, due to any amendments to the
Companies Act, 2013 or the Rules, the former shall prevail in all circumstances.

Management Commitment
Our Board of Directors, our Management and all of our employees subscribe to the
philosophy of compassionate care. We believe and act on an ethos of generosity and
compassion, characterized by a willingness to build a society that works for everyone.
This is the cornerstone of our CSR policy.

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