NextWealth / CSR Policy

CSR Policy at NextWealth

1. Objective and Purpose

The key purpose of this Policy is to:

Outline the developmental areas in which NextWealth shall get involved in through its CSR activities.
Define governance structure for CSR management within NextWealth.
Serve as a guiding document aiding in identification, execution and monitoring the CSR projects.
Describe the treatment of surpluses from CSR activities.

2. Scope and Applicability

This Policy applies to all CSR projects that will be undertaken by NextWealth and shall fulfil all the requirements of Section 135 of the Companies Act, 2013. NextWealth shall ensure all these activities are over and above the normal course of business and are in line with Schedule VII of the Companies Act, 2013. This Policy will be periodically reviewed and updated in line with the relevant codes of legislation and best practices that can be adopted by NextWealth

CSR Policy is applicable to NextWealth and its branches which are mandated with the CSR expenditure obligations as per Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.

This policy is owned by Mahesh Kumar Tallam and reachable @ +91.9901888800 and mahesh@nextwealth.com

3. Policy / Process

3.1. Alignment with Organisation Values

NextWealth is guided by its core values that it has adopted since its inception. The CSR Policy is in alignment with its core values and is central to its CSR strategy.
Being Accountable for what we do: NextWealth strongly believes that it is accountable for contributing back in a meaningful way to the society.
For execution of its CSR objectives and to make a positive impact with its CSR activities, NextWealth desires to involve its employees too to create a sense of involvement and bring about social responsibility amongst them. Wherever necessary, NextWealth will partner and collaborate with NGOs / other similar organizations that have experience, knowledge, and a wider reach to meet its CSR objectives

3.2. Guiding Principles

CSR Purpose: To enable employment to students who have matriculation and above in rural/small towns (also in cities in exceptional case) focusing on women and persons with disability.
As an organisation we would adopt and adhere to the below mentioned guidance towards CSR initiative.

Awareness: We should know and have complete knowledge about the organisation that is being funded.
Measurable Impact: We should be in position to measure the actual impact of our CSR donation.
The Necessity: The entity being supported should be small and should have a real need of funds.

3.3. Areas of Focus

NextWealth has broadly selected four areas of focus under its CSR activities, as under:

Livelihood
Women
People with Disabilities – PWD

Livelihood:
Provide financial assistance to programs that provide vocational education and training to the needy.
The initiative could be supported through Skill India programme as a preference while it is not mandatory.

Women
Providing financial support to entities supporting women empowerment and support initiatives.

People With Disability:
Provide financial assistance to entities that are functioning in the areas of people with disabilities. (PWD))

3.4. Governance Structure

A governance structure at NextWealth is responsible for implementing and administering CSR Policy, in compliance with the requirements of Section 135 of the Companies Act, 2013.

The Board of Directors of NextWealth Entrepreneurs Private Limited and key members of the Management Team are accountable for the CSR projects undertaken by Organization.

NextWealth has constituted a CSR Committee at the Board level. The CSR Committee is supported by the CSR Team who are keen to make a difference to the society through its CSR initiatives.

3.5. CSR Committee

Organization has constituted Corporate Social Responsibility Committee (the “CSR Committee”) in line with Section 135 of the Companies Act, 2013 (the “Act”). The CSR Committee consists of following members of the Board and the Management Team:

Mahesh Kumar Tallam – Chairman
Mythily Ramesh – Director
Sugathan R – Member
Jayanth Samprathi – Member

CSR Committee means the Corporate Social Responsibility Committee constituted by the Board of the Company in accordance with the Act, consisting of three or more directors, out of which at least one director shall be an independent director.

The CSR Committee of NextWealth shall be responsible for:

Review of CSR activities in the Company.
Formulation of CSR Policy.
Monitoring of implementation of CSR Policy.
Recommend to the Board, modifications to CSR Policy as and when required.
Appraise to the Board the CSR expenditure done during the year.

3.6. CSR Team

Dedicated CSR team shall be constituted from among the employees at NextWealth, for implementing the CSR Policy and shall work under the guidance of CSR Committee and will be responsible for:

Execution of CSR Policy.
Identify projects and key initiatives pursuant to CSR Policy.
Facilitating allocation of funds to the projects as identified for CSR activities.
Monitoring CSR Projects to establish effectiveness of CSR efforts and appraise the same to CSR Committee.
Compilation of information & preparation of Annual Reports on CSR activities and presenting the same to CSR Committee.
Any other activity necessary to ensure achievement of CSR objectives.

3.7. CSR Budget

The total budget for the CSR projects in each fiscal year will be decided by the CSR Committee in accordance with applicable provisions of the Act and the CSR Rules. The CSR Committee shall propose to distribute the budget among the Areas to Focus or such of them as the CSR Committee may deem fit in each fiscal year, in such proportion and in a manner that meets the objectives of the CSR Policy.

For any reason if the CSR team is not able to follow the allocation agreed on in any of the Areas to focus described above, the same shall be utilized in such other Areas to focus as the CSR team may recommend with the reasons therefore, and the CSR Committee may approve.

4. Implementation Process

4.1. CSR Contributions
NextWealth will endeavour to contribute and spend at least 2% of the average net profits of NextWealth made during the three immediately preceding fiscal years or such amount as may be recommended by the CSR Committee from time to time in pursuance of this Policy.

4.2. Compliance, Monitoring and Reporting
4.2.1. Compliance

The CSR Team will plan, implement, monitor, and manage all CSR projects & activities for NextWealth and will work closely with the CSR Committees of the Boards of NextWealth and the Group companies as applicable.

The CSR Team will formulate implementation plans for the projects by clearly defining the following:

Activities to be undertaken.
Budgets proposed.
Period for implementation.
Responsibilities and authorities for implementation.
Results expected to be achieved post-implementation

4.2.2. Monitoring
Milestones will be decided for every project/activity undertaken, and the progress will be evaluated against the milestones defined in the implementation plan for each project/activity. The CSR Team will monitor the implementation and progress of the approved projects through appropriate mechanisms such as site visits, review meetings and progress reports etc. NextWealth will establish mechanisms to track data and monitor projects so that the CSR projects undertaken are implemented transparently and efficiently.

4.2.3. Reporting
The CSR Committee of the Board, based on reports presented by the CSR Team, will annually publish report on the CSR projects as a part of the Director’s report. The report will disclose information in the format as prescribed by the Section 135 of the Companies Act 2013.

The CSR Committee shall also submit a responsibility statement to the Board that the implementation and monitoring of the CSR Policy is in compliance with the approved Corporate Social Responsibility CSR Policy of NextWealth.

The CSR Policy on being approved by the Board shall be displayed on the website of NextWealth and any modifications carried out from time to time shall also be updated on the website of NextWealth, respectively.

4.3. Treatment of Surplus
Any surplus generated from CSR projects undertaken w. e. f. 2022-23 will be tracked and channelized into the CSR corpus.
These funds will be further used in development of the CSR projects and will not be added to the normal business profits.

5. Special Circumstance and Exception

Any Deviation to this policy must be approved by the CSR Committee, Finance, and the Board of Directors

6. Non-compliance and Consequence

Violation of this overtime policy is subject to disciplinary action, up to and including termination. If an employee, including Floor Supervisor and/or Manager, is suspected of violating the policy, he/she must undergo a thorough investigation. The circumstances of each violation will determine the severity of each scenario.