CSR Policy
1. Contextual Framework
1.1 Introduction to MRIBS
1.1.1 MUTHOOT RISK INSURANCE AND BROKING SERVICES PRIVATE LIMITED ("MRIBS") is a company of Muthoot Pappachan Group (MPG), which carries on the business of Insurance Brokers in all branches of Insurance (Life & General). The Company has a Broker License from the Insurance Regulatory and Development Authority (IRDA).
1.2 Policy Applicability
1.2.1 This policy, which reflects the company's philosophy and mission, is designed to portray its commitment to be a responsible corporate citizen and presents the strategies and methods for undertaking social programs for the well-being and sustainable development of the local community in which it operates.
1.2.2 This policy applies to all CSR initiatives and activities taken up at the various work centers and locations of MRIBS for the benefit of various segments of society, with emphasis on the underprivileged. Each CSR activity of MRIBS is channelized through the Muthoot Pappachan Foundation.
1.3 Foundation's Objectives and HEEL Framework
1.3.1 Muthoot Pappachan Foundation (MPF) is a Public Charitable Trust formed in the year 2003 as the CSR arm of the MPG to facilitate CSR activities for the entire Group entities. Planning and implementing various CSR activities towards the set objectives of the organization and facilitating the CSR programmes of various group companies of MPG is the major responsibility of MPF.
1.3.2 The entire range of CSR activities implemented by the selected group entities for the initial phase will be streamlined and facilitated through Muthoot Pappachan Foundation. The CSR programs of Muthoot Pappachan Foundation are bound by the theme HEEL: Health, Education, Environment, Livelihood. Each entity will be leading its own CSR initiative within the HEEL framework, specifically involving their staff and customers.
1.3.3 Aligning with the vision of the company, MRIBS will continue increasing value creation in the community in which it operates, through its services and CSR initiatives planned and implemented by MPF, so as to stimulate well-being for the community, in fulfillment of its role as a responsible corporate citizen.
The objective of the MRIBS CSR Policy is to:
- Build a framework of CSR activities with a philanthropic approach in line with business unit objectives, which also benefits the organization at large;
- Shape sustainability for the organization by engaging the community;
- Build a corporate brand through CSR; and
- For other stakeholders, make it an integral part of the company's DNA, so much so that it has to be an organic part of the business.
1.3.5 The over-arching framework of HEEL will not only guarantee consistency among the selected entities but also full compliance with the CSR requirements mandated by the Companies Act, 2013. HEEL will allow MPF to remain focused on selected issues while adopting a systematic and professional approach to its work. Under the aegis of MPF, each entity will be leading its own CSR initiative within the HEEL framework, specifically involving their staff and customers.
2. Resources
2.1 Budget and Fund Allocation
2.1.1 In order to achieve its CSR objectives through implementation of CSR programs by MPF, MRIBS will allocate 2% of the average Profit Before Tax (PBT) of the previous three years to create its Annual CSR Budget. Consequently, MRIBS will also comply with the law obliging mandatory CSR as described in section 135 of the Companies Act, 2013.
3. Planning
3.1 Identification of Focus Areas and Strategic Initiatives
The CSR efforts of MRIBS will be facilitated through MPF through continuous and effective methods. The CSR programs are primarily bound by the theme HEEL:
- Health
- Education
- Environment
- Livelihood
Any other activity as permitted under Schedule VII (Section 135) of the Companies Act, 2013 as decided by the CSR Committee may also be taken up.
4. Implementation
4.1 The above described CSR activities will be implemented by MPF on behalf of MRIBS either directly or in collaboration with other non-profit organisations.
4.2 The duration of each program will be related to the nature of the program and its impact.
4.3 CSR activities involving substantial financial commitment, undertaken for periods of three years or above, will be considered as "flagship programs" and will have greater significance.
4.4 MPF will ensure that the CSR programs financed by MRIBS will be executed in the areas where the company has business presence.
4.5 The programs will be implemented by MPF in collaboration with specialised organisations wherever required, in consultation with MRIBS.
4.6 The implementation phase is based on the following steps:
- 4.6.1 Map existing ecosystem: thoroughly evaluating the existing scenario in which the company operates. This step is crucial in order to assess the existing potential and find relevant partners to collaborate with.
- 4.6.2 Create: designing programs and selecting partners.
- 4.6.3 Enable: commencing collaboration with the selected actors and investing the resources needed to shift from the planning to the action phase.
4.7 Powers for Approval
4.7.1 The CSR Budget for each financial year is to be approved by the Board at the beginning of each financial year with due recommendations of the CSR Committee.
4.7.2 For meeting requirements arising out of immediate and urgent situations, the MRIBS CSR Committee is authorised to approve proposals within the overall budget limits. The approvals given by the CSR Committee as stated above shall be reported to the Board for ratification.
4.8 Criterion for Identifying Executing Organisations
4.8.1 MPF on behalf of MRIBS will identify external executing organisations that will implement the CSR programs. Each executing organisation (NGOs/voluntary organisations) needs to fulfil the following requirements:
- Has been in existence for a minimum of three years;
- Is registered under Trust/Society/Section 8 Company;
- Possesses a valid Income Tax Exemption Certificate;
- The antecedents of the NGO/organisation are verifiable and subject to confirmation;
- Has sufficient infrastructure facilities including office, e-mail id and necessary resources to implement the projects;
- Has prior experience in the relevant field;
- Is located in the area of planned activities with local knowledge; and
- Has an articulated shared vision/purpose beyond the registration documents.
4.9 After the approval of the CSR budget, for partnership programmes, MPF and the concerned NGO/organisation will be required to enter into a formal written agreement.
5. Monitoring and Feedback
5.1 In order to ensure effective implementation of the CSR programs, a monitoring mechanism will be put in place. The progress of the programs will be communicated and reported to MPF on a monthly basis. Additionally, an annual CSR report is also to be submitted by MPF.
5.2 The Foundation will conduct impact studies on a regular basis, especially on the flagship programs. For conducting such impact studies, MPF can engage suitable consultants if required, in consultation with MRIBS.
5.3 The Foundation will communicate with the beneficiaries in order to obtain feedback about the programs.
6. Governance
The implementation of the CSR activities will be monitored by the CSR Committee of the Board.
6.1 Role of the Board of Directors
The MRIBS Board of Directors is committed to assume the following roles:
- Approving the CSR policy recommended by the CSR Committee;
- Disclosing the CSR policy contents in each corresponding Board Report;
- Making the CSR Policy public on the company website; and
- Approving the annual CSR Budget recommended by the CSR Committee.
6.2 CSR Committee
6.2.1 The MRIBS CSR Committee will be responsible to:
- Formulate the CSR strategy and activities;
- Recommend the annual budget based on MRIBS's profit before tax in the previous three consecutive years; and
- Regularly monitor MRIBS's CSR policy.
6.3 MRIBS CSR Committee consists of the following Directors:
- Mr. Thomas John Muthoot
- Mr. Thomas George Muthoot
- Mr. Thomas Muthoot
7. Reporting
7.1 Contents of the Report
The MRIBS Board of Directors shall incorporate in the Board's report an annual report on CSR containing the following particulars:
- A brief outline of the company's CSR Policy, including an overview of projects or programs proposed to be undertaken and a reference to the web link to the CSR policy and projects or programs;
- The composition of the CSR Committee;
- Average net profit of the company for the last three financial years;
- Prescribed CSR expenditure (2% of the amount of the net profit for the last three financial years);
- Details of CSR spent during the financial year; and
- In case the company has failed to spend 2% of the average net profit of the last three financial years, the reasons for not spending the amount.