The National Scheduled Castes Finance & Development Corporation (NSFDC)
The National Scheduled Castes Finance & Development Corporation (NSFDC) was incorporated on 8th February 1989 as a Company 'not for profit' under the Companies Act, 1956 (now under Section-8 of Companies Act, 2013). NSFDC’s vision is “to be the leading catalyst in systematic reduction of poverty through socio-economic development of Scheduled Castes working in an efficient, responsive and collaborative manner with channelizing agencies and other development partners”. NSFDC has been providing concessional loans to its target group for income generating activities through State Channelising Agencies (SCAs) and other Channelising Agencies with an objective to eradicate poverty and promote prosperity. Thus, the major activity of the Corporation falls under Schedule-VII of the Companies Act, 2013.
The corporation has been sponsoring other activities from its “Excess of Income over Expenditure” for the welfare of its target group that include Skill Development Training, Awareness Campaign and Marketing Assistance. NSFDC has also been making a concerted effort to leverage CSR funds from profit making Central Public Sector Enterprises (CPSEs) for organising Skill Development Training for the target group primarily in the operational areas of the donor CPSEs.
In alignment with the vision of the corporation, NSFDC, through its CSR&SD initiatives, shall continue to undertake projects for systematic reduction of poverty through socio-economic development of Scheduled Castes. This Policy shall be called the “NSFDC - Corporate Social Responsibility & Sustainable Development Policy” and shall come into force w.e.f. the 1st April, 2016.
The aim of the Policy is to ensure that the Corporation becomes a socially responsible corporate entity by contributing towards a) promoting sustainable livelihoods of the Scheduled Castes living below DPL; and b) improving the quality of life of the society at large.
Being a Socially responsible Corporate entity, NSFDC would take initiative to:
a)Promote inclusive growth and equitable development in society while assigning importance to regional and gender disparity through skill development and other innovative initiatives for the Scheduled Castes ;
b)Assign high priority to environmental sustainability and climate change issues while assisting the target group to reduce poverty by promoting green business initiatives; and
c)Promote organizational integrity and ethical business practices through transparency in disclosure and reporting procedures.
Reducing and ultimately eliminating poverty among target group is a fundamental aspiration of the NSFDC. NSFDC shall provide assistance to CSR&SD projects that promotes sustainable economic growth of the Scheduled. NSFDC shall promote economic growth that focuses on addressing income, gender and regional disparities along with environmental sustainability. NSFDC shall use innovative approaches and partnerships for realising these objectives. In addition, measures will be adopted towards improving internal capacities and efficiencies for the delivery of services and enhancing development effectiveness of the NSFDC and its CSR partners. NSFDC shall join hands and the resources for undertaking joint ventures for greater social impact. NSFDC shall make efforts to take up long gestation high impact projects preferably in areas with high concentration of Scheduled Castes from the budget allocated for the CSR&SD activities. NSFDC will continue to leverage CSR funds from profit making CPSEs for CSR&SD activities.
The CSR&SD projects will have a multi-tiered governance mechanism. The Corporate Social Responsibility Committee shall- (a) Formulate and recommend to the Board, a CSR&SD Policy which shall indicate the activities to be undertaken by NSFDC (b) Recommend the amount of expenditure to be incurred on the activities; (c) Review the CSR&SD Policy of NSFDC from time to time; and d) Institute a transparent monitoring mechanism for implementation of the CSR&SD projects or programs or activities undertaken by the NSFDC.
The CSR&SD plans shall be identified and formulated in collaboration with the partner organisations of the NSFDC that include State Channelising Agencies, Channelising Agencies, Training Partners and other development partners.
The CSR&SD activities proposed in the Annual Plan shall also be prepared in line with the relevant notification/circulars issued by the concerned Ministries. Any project or program that benefits the employees or their families shall not be considered as CSR&SD activities.
All proposals for CSR&SD activities shall be first examined by the Internal Committee for CSR constituted by the CMD, NSFDC. After they are found suitable, proposals shall be put up to CSR committee of Directors for their consideration following the due approval process in NSFDC.
The Board of Directors shall ensure that NSFDC spends, in every financial year, at least two per cent of the average net profits of the company made during the three immediately preceding financial years. For the purposes of ascertaining the CSR Budget “average net profit” shall be calculated in accordance with the provisions of section 198 of the Companies Act, 2013. If NSFDC fails to spend the earmarked amount, the Board shall, in its report, specify the reasons for not spending the said amount. CSR Budget will not lapse and unutilized funds shall be transferred to a CSR Reserve fund, which shall be utilized in the subsequent years.
The CSR&SD activities shall be coordinated at Corporate Office by the Internal Committee for CSR. This Committee shall be accountable to the CSR Committee constituted by the Board which shall oversee the CSR&SD activities.
The Board would be apprised of the status of CSR&SD projects in every six months by the CSR Committee.
a)NSFDC shall highlight the overall achievements of its CSR&SD initiatives in its Annual Report.
b)NSFDC shall display its CSR&SD activities on its website.
c)There shall be an attachment to statements laid by the company in its annual general meeting i.e. a report by the Board of Directors having details about the policy formulated and implemented on CSR&SD and the initiatives taken during the year.
a)In case of any doubt with regard to any provision of the Policy and also in respect of matters not covered herein, the interpretation and decision of the CMD, NSFDC shall be final.
b)Any or all provisions of the CSR&SD Policy would be subject to revision/amendment in accordance with the guidelines on CSR&SD issued by the DPE from time to time on the subject.