Corporate Policy & Management Systems

Corporate Policy

Our Policy is :

  1. To provide design, engineering and project management services to develop safe, economical, constructable, operable and maintainable projects within agreed schedule by:
    • Satisfying applicable compliance obligations
    • Addressing the current and future requirements of customers and other relevant stakeholders
    • Adhering to related occupational health & safety, information security and environmental criteria
    • Ensuring reduction in re-work and cost of services through value engineering
  2. To create an adequate environment for occupational health and safety of our employees
  3. To minimize the adverse impact of organisational activities on environment

We are committed to :

  • Provide adequate resources for achieving the above
  • Continual improvement of the effectiveness of the quality, occupational health & safety, environment and information security management systems
  • Protection of environment through conservation of natural resources and prevention of pollution
  • Comply with applicable compliance obligations

We shall review the corporate policy periodically for the continuing suitability and adequacy

K. Sudhakar
Chief Executive

CSR Policy

Introduction

  1. L&T Chiyoda (Company / LTC) has developed a Policy comprising the philosophy to define its responsibility as a corporate citizen and lays down the principles and mechanisms for undertaking various programs in accordance with section 135 of the Companies Act 2013 for the community at large, is titled as the 'LTC CSR Policy'.
  2. The Policy shall apply to all the CSR programmes and activities undertaken by the Company at various locations for the benefit of diverse sections of the society.

Validity of CSR Policy

The Board may amend the CSR policy as may be required from time to time.

CSR Program Areas & Objectives

The Company will primarily focus on the following programs as part of its CSR. Details of the proposed CSR Projects for the year are provided in Annexure‚ÄźA.

  1. Healthcare & Sanitation
  2. Contribution to Prime Minister's National Relief Fund
  3. Education & Rural Development

CSR Budget

  1. The Board of Directors shall ensure that in each financial year, the Company spends at least 2% of the average net profit made during the three preceding financial years.
  2. The Company may collaborate or pool resources with other organizations to undertake CSR activities.
  3. In case of any surplus arising out of CSR projects the same shall not form part of business profits of the Company

Implementation

  • CSR program will be undertaken by the Company in areas selected for interventions. The Company may choose to undertake need assessments as and when they deem it required.
  • The time period/duration over which a particular program will be spread, will depend on its nature, extent of coverage and the intended impact of the program. However, looking at the size of the organisation and the funds available, it is advised that the Company should look for projects which can be completed in the short duration.
  • The Company may enter into partnerships with the government, business partners and communities to create multiplier effect of its social projects.
  • The mode of implementation of CSR programs will include a combination of direct implementation and partners such as NGOs, business partners, registered societies etc. The Company will select its partners after appropriate due diligence.
  • The Company may use the services of internal teams, expert agencies, consultancy firms etc. wherever required for carrying out base line surveys, guidance on project design and implementation, impact assessment surveys etc.
  • The teams responsible for implementing the various CSR projects are mentioned in the section on the Governance Structure of the Policy.

CSR Governance Structure

Role and responsibilities

The Board

The Board of Directors of the Company will be responsible for :

  • The approval of the CSR Policy of the Company.
  • Disclosing the content of the Policy in its report and place the Policy on the Company's website in such a manner as prescribed under Section 135 of the Companies Act 2013 read with the CSR Rules.
  • Ensuring that the social projects included in the Policy are undertaken by the Company.
  • Ensuring that the Company gives preference to the local areas around its operations for spending the amount earmarked for CSR projects.
  • Ensuring that it specifies the reasons in its report for not spending the earmarked amount in case the Company fails to spend such amount.

CSR Committee

  1. Composition of the CSR committee : The composition of the CSR Committee of the Board is as under:
  2. S. No. Name Designation Category
    1 K Ravindranath Chairman Director
    2 K. Murali Member Independent Director
    3 R. Venkatesh Member Director
    4 D. Sato Member Whole-time Director and Chief of Operations
  3. Responsibility of the CSR Committee
    • Formulate and recommend the CSR Policy to the Board for approval.
    • Monitor the Policy from time to time.
    • Recommend the amount of expenditure to be incurred on CSR projects.
    • Constitute a transparent monitoring mechanism for ensuring implementation of the CSR projects.

Unit level CSR Committee of Management

Responsibility of the Committee

  • The team shall seek guidance from the CSR Committee regarding policy, budget and implementation guidelines.
  • Spread awareness regarding the approved CSR policy and place it on the Company's website.
  • Prioritize the projects in line with thrust areas and overall CSR plan for the year.
  • Recommend projects to be undertaken during the financial year to the CSR Committee.
  • Recommend targets and timelines for implementation of developmental initiatives.
  • Apprise project performance periodically to the CSR Committee.
  • Facilitate effective implementation of CSR plan.
  • Allocate appropriate resources to achieve desired performance in alignment with CSR targets and initiatives.

Monitoring and Reporting Framework

Project Monitoring

The Company will institute a well-defined monitoring and evaluation mechanism to ensure that each CSR program has:

  1. Clear objectives developed out of the societal needs that may be determined through baselines studies and secondary research.
  2. Clear targets, time lines and measureable parameters wherever possible.
  3. A progress monitoring and reporting framework that is aligned with the requirements of the section 135 of the Companies Act and the CSR Rules.

The CSR progress monitoring authorities and the frequency of review is given below.

S. No. CSR Progress Review and Monitoring Authority Frequency of review
1 Board of Directors Annually
2 CSR Committee of Board Annually
3 Unit level CSR Management Committee Half-yearly

Budget monitoring

The Company will establish an accounting system to ensure project wise accounting of CSR spends.

Reporting Framework

The CSR Management Committee will monitor progress on CSR projects and CSR spend and report to the CSR committee periodically.
The Company will report CSR performance in its annual report as per the structure and format prescribed in the notified CSR Rules.

Annexure–A

Sr. No. Category CSR Project or activity identified Thematic areas which the project covers Geographical Coverage
a. Rural development Supporting quality and clean milk production Installation of Bulk Milk Chiller (BMC) at villages near Vadodara. Vadodara, Gujarat
b. Contribution to Prime Minister's National Relief Fund Relief and rehabilitation of the affected people due to natural calamities or any other disaster. Relief against natural calamity / disaster India
c. Education & Rural Development Promotion of education in rural area Distribution of School uniforms, notebooks and other educational material in schools in nearby villages Gujarat

Management Systems

Quality Assurance aspects are accorded high priority in project execution at LTC. To ensure smooth execution and complete satisfaction of client, LTC has established various system procedures as well as project specific procedures to meet the project requirements.

LTC is certified for following management systems

LTC has integrated Quality, Environment and OH&S Management Systems in the form of IMS (Integrated Management System).