RPG group – CSR initiatives overview & Saksham program brief

Indian scenario & the way forward

CSR Rules under sec 135 of the Companies Act 2013

June 2014

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Vision & Mission

VisionVisionTo be recognised as the most favoured Indian employer who is responsible and ethical, contributing positively to the world we live in

RPG Foundation

Goals

▪ Engaging with and contributing to our communities around – Educate & Empower

▪ Being an eco-efficient company that believes in sustainable growth and makes it a part of its DNA

▪ Actively participate in the nation’s effort to bridge the huge shortfall of skilled (technical) manpower

▪ School/community development program around all our 20 plants & offices

▪ Set-up company-wide volunteering programs

▪ All plants to work towards Zero-Nett consumption of natural resources

▪ Establish sustainability communications and reporting on performance (internal & external)

▪ Adopt Govt. ITIs to deliver relevant and quality courses

▪ Initiate technical Education at Govt schools

▪ Identify and engage with underprivileged schools/communities for English and Life skill programmes

▪ Sensitise and motivate all employees to go Green and incorporate it into the Group strategy

▪ Revamp the adopted ITIs to be Industry-oriented. Change the mindset of Govt school students to realise the potential of Tech Education

Initiatives

Approach

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CSR Programs & Strategy

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Key initiatives taken

▪ Akshar program --

English taught at Govt Schools Class 4 onwards.

▪ Saksham I –

Adoption of Govt Technical Schools for improvement with special emphasis on technical subjects Class 9 & 10

▪ Go Green --

Water-20%,Power-20% reduction, Zero discharge

▪ Sakham II & III – Post SSC Continue Class 11 & 12.

Followed with a one-year apprenticeship at our factories.

▪ ITI adoption –

Under govt PPP Scheme – we signed with three ITI s Swayam – Train women for a career in driving.

**Only 16% of India’s Top 100 listed companies (by Rev) have a Corpt Responsibility Strategy in place

**KPMG 2011 Survey

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RPG CSR Highlights under 4 areas: May ‘141.EMPLOYABILITY : •Saksham – a six year program Class 8 to 12 + I year apprenticeship:•2012-13 (Pilot) – 4 Schools/centre (757 students). 2013-14 – 15 Schools/centres

(6869)• Launched Saksham in Govt Technical Schools in 8 cities of Maharashtra & Gujarat •Improved upon the 30 key initiatives on– Infra, curriculum, methods,

teachers/students. •RPG Fdtn empanelled in State Technical Syllabus Comm to revise the 20 yr old

syllabus. •Shri SRamadorai (TCS), Chairman NSDA, wants Tatas to adopt the Saksham program

b) ITI adoption program:•Three ITI s under our CSR initiatives for improvement under the Govt PPP Scheme . •Student dev program, infra dev, Tech staff visit to industry, MIS in place. •Leadership workshop for 25 Principals and officials of Govt schools & ITI s.

•Ceat Swayam women drivers initiative launched in Mumbai in Oct 2013.•Identified all stakeholders across Govt, Corporates, NGOs, taxi operators, trainers etc.•1350 women addressed. 1st batch of 20 started the 3 months training in March’14.•2nd batch of 18 women launched in Bhandup at CEAT Community centre.•3rd batch due in June’14 in partnership with MERU Cabs outfit META driving school.

>>>> Women need to 1st deal with “resistance within” before they get started…..

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CSR Highlight : May ’14 (contd)2. EDUCATION: Akshar program (In 9 cities, 71 schools, with 8520 students)• Proficiency in English program at Govt School from class 4 to 9. Empowering them.•Incorporated School English syllabus into Akshar content.•Two Sessions per class/week. Our own teachers visit Schools with projector/laptop

3. ENVIRONMENT :•LED lamps installed RPG House, will install shortly at Plants as replacement.•RPG House: Rain water Harvesting in place & STP commissioned in March 14.•Dry Waste Management at HO launched in Feb 13, now a sustainable program.•All 12 plants under environment monitoring chart – working towards 20% reduction in consumption of natural resources in the next 3 years.

4. Community Development at Plant locations: •Nine plants have launched community development programs on various fronts – health, education, and livelihood, soft/life skills to youth, women and adolescents. •Tied-up with USAID for Health awareness program films/content on Mother& Child.

Note: Majority of the CSR initiatives at RPG were only started in early 2012

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Saksham ProgramTechnical Education at Schools & beyond

Three Stages: (A journey of Six Years) (3 + 2 + 1 = 6 years)

Yr 2015

8000 students 15 Schools 3 States 8 Cities 15 Tech Centres

Only one of its kind across 5 cities. In 9 Govt tech schools of Maharashtra and 2 schools in Gujarat. Engaged with 5880 students

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SAKSHAM – Its three Areas of Focus at Schools

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Series of engagements & students support system in place

8 Visit: http://www.rpggroup.com/corporate_citizenship/overview/overview.aspx

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SL NO ACTIVITIES1

Admission into Class 8 moved up by four times, in 2012-13 to 13-14 . (Note: These two schools had zero admissions the previous two years of starting Saksham.

2 Seventeen BMC Upper primary Schools (Up to Class 7) visited in Feb-June to seek admissions into Class 8 of GTHS ( Govt Tech High Schools)

3 Two NGOs & four Social workers engaged for these efforts on admission drive.4 Six Parents/community meeting conducted to garner admissions5 Aptitude mapping conducted for Class 8 & 9th students – post admissions

6Counseling sessions conducted & students profile documented with recommendations from the Psychologist.

8 100% attendance awards distributed monthly to students -- to make regular attendance a habit9 “Quarterly Merit Awards” given- emphasis is on student’s all round improvement quarter on quarter

10 Soft skill training to all students (1050) of these four govt tech schools11 49 Staff members- offered subject refresher courses & also trained in soft skills.12 Additional English communication classes for students13 Result analysis of all unit test & mid term done. Parent and teacher counseling done periodically. 14 Root cause analysis done for poor results using applied QC tools. Action plan drawn for correction.

15 Mentoring of students by 22 MBA interns - duration 40 hr over 3 mths. Recorded high benefit.

Various initiatives under the program- “Saksham”

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16 eClasses introduced - resulted in improved attendance and learning both for students & teachers17 Organised teachers & students visits to other Tech Institutes like NTTF Morbad, Industry etc.18 Hobby classes - Art Therapy session, sports for development - to deal with youth aggression.19 Medical check up camp: General, Eye, Dental camps & Midday Meal to improve their health20 Books purchased for Library and implemented its usage under reward scheme for Librarian.21 Remedial classes for weaker students regularly conducted by Pratham team22 Staff vacancies, govt red tape etc dealt with through high level of advocacy/perseverance.23 Infra related activities resolved and established basic facilities in place24 Brand building activities initiated - to give a sense of pride to the students/parents about the School.25 Connected with private / aided technical schools to enable sharing of best practices.

26 Employee intervention/volunteerism - to help in student retention thru mentorship.27 Industry partnerships for special training of staff & students with: Godrej, L&T, NTTF, Schneider Elec.

28Implemented monthly review meetings with principals, HO officials, chaired by the Director Tech Edn.

29 Got inducted into the State committee for vocationalisation of high schools in Maharashtra30 Conducted a 2 day workshop for school staff/principals -created a VISION & MISSION document.

continued......initiatives under Saksham

A 360 degree engagement for a holistic development of these schools…a unique program indeed

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V2 (Elements of Mechanical Technology)

V3(Elements of Electrical and Electronic Technology)

Engineering Drawing Engineering Drawing

Computer Technology Computer Technology

Basic Electricity Basic Electricity

Fitting and Rural Technology Fitting and Rural Technology

Welding Welding

Plumbing Electrical Machine & Domestic Appliances

Carpentry Elements of Electronics

Auto Engineering

*This syllabus (optional under SSC) is being revised now after 10+ years to industry needs

SSC Board offers technical subjects also *

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|Government of India Confidential, April 2011

Total Employment (million people)

Why SAKSHAM?Potential for large scale skilling

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Opportunity to be the “Skill Capital of the World”; orA recipe for Disaster !!!

Manufacturing & Construction

Automobile

New Job Creation between 2012 and 2022 (million people)

10.7 million

Source : NSDC

IT/ ITeS

103.3 million

*Source: Shri Ramadorai’s NSDC presentation

43.2 million

156.1 million*

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Employability scenario- advantage India

RAMADORAI of NSDC on Skill status in the World v/s India:-Scenario: In 2020, the average age of Indian will be only 29 years old, compared with 37 in China/US, 45 in West Europe and 48 in Japan, making India one of the young nations in the world. The age advantage, as per World Bank, will continue for at least 3 decades till 2040.We would probably never get a chance like this to leverage our human resources to help grow our country economically.  Reality: Huge task to fill GTHS seats. Godrej struggles to fill their–Welding sessions. Today, we are operating at half our capacity and half our productivity levels. Of India’s 1.2 billion people, 60 per cent is in the working age group. However, only 5 percent of India’s labor force in the age group19-24 years is estimated to have acquired any formal training. Yet, our economy had until recently clocked an impressive growth. Imagine what is possible if we could leverage our demographic dividend fully!Quite clearly, India’s potential is yet to be fully exploited.

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Companies Act 2013 – CSR Rules

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CSR Rules under sec 135 of the Companies Act 2013

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Section 135-Companies Act

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• CSR contribution will be 2% of average net profit before tax for last three financial years• A 3 member CSR committee be appointed including one independent director. • Mandatory reporting on CSR. Develop CSR policy indicating activities as per Schedule VII• Preference to be given to the local areas nearby which it operates• CSR Committee shall consist 3 or more directors with at least one director as an independent director

Salient Features

CSR Expenditure

• CSR Expenditure shall include all activities approved by board and recommended by CSR excluding activities not in line with Schedule VII of the act

• Expenditure related to CSR capacity building of own personal and implementing agencies shall not exceed 5% of the total CSR expenditure

Mode of Implementation

• CSR activities can be implemented through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under section 8 of the act provided company must specify the projects, the modalities of fund utilization and monitoring & reporting mechanisms

o In case not established by any of the three above, it shall have an established track record of 3 years in undertaking similar projects

• A company can collaborate with other companies for undertaking CSR projects or programmes but respective companies should be in a position to report separately in accordance with the rules

Boards' Report for a financial year commencing on or after April 1st , 2014 must include annual report on CSR containing particulars specified in annexure . This CSR report should include•Reasons for not spending 2 % of average net profit

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Schedule VII

• Eradicating hunger, poverty and malnutrition, promoting preventive heath care and sanitation and making available safe drinking water.

• Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently-abled and livelihood enhancement projects.

• Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups.

• 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.

• Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts.

• Measures for the benefit of armed forces veterans, war widows and their dependents.

• Training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports.

• Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the central government for socio-economic development and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women.

• Contribution to technology incubators within academic institutes.

• Rural development projects.

17 Items underlined indicate areas where NLS operates its CSR to an extent

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