CSR Policy

Lafarge Umiam Mining Pvt. Ltd. (a company incorporated in India — hereinafter referred to as “the Company”), a subsidiary of LafargeHolcim Bangladesh Ltd (LHBL), Bangladesh, is in the business of limestone and shale related mining in Meghalaya, India. The mines are captive mines for across—border cement manufacturing plant set up by LHBL in Bangladesh.

As a responsible corporate citizen, the Company is committed towards sustainable development, pursuing a strategy that combines industrial know—hovv with performance, value creation, respect for community and local cultures, environmental protection and the conservation of natural resources and energy.

The Company has been contributing to the societal wealth creation for the last several years through its independent undertakings / contributions as well as through the Special Purpose Vehicle (the “SPV”). The SPV was set up following the Order of the Hon‘b|e Supreme Court of India dated April 12, 2010 vis-a-vis a direction of the Ministry of Environment Forests and Climate Change (MoEFCC), Government of India through its letter No. F.No.8-640007-F.C. dated April 22, 2010. On July 6, 2010 the SPV was set up by the Government of Meghalaya through a notification. –

The SPV’s main objective is to carry out developmental activities in and around the areas affected by the diversion of 116.589 l-la of land in Nongtrai – Shella, East Khasi Hills District. The SPV Society {the “SPVS” or the “Society”) functions as the apex implementing and coordinating organization in this regard. Development initiatives in the area under the Society conform to the directives of the Hon’ble Supreme Court of India.

The Company deposits Rs. 90/- per tonne of the limestone mined. The capacity of the limestone mining is presently fixed at 20,00,000 tonnes per annum. This gives the maximum annual fund flow of Rs. 18.00 crores to the SPV. The money so collected is utilized by the SPV in collaboration with the Local Durbars to fund welfare projects mandated upon it including the development activities that revolve around the sectors of health, education, agriculture, irrigation, and general economy in the area around the mining area of S0 kms solely for the local community and welfare of Tribals.

The Company is committed to undertake Corporate Social Responsibility (CSR) activities in accordance with the provisions of Section 135 of the Indian Companies Act, 2013 and its related Rules.

Notwithstanding the foregoing and in line with the regulatory expectations, the Company is hereby putting in place a formal policy as a further guide towards its social commitment going forward.

Aims and Objectives:
In line with the Sponsor Groups CSR Principles, the Company’s CSR Policy seeks to:

  • Develop a long-term vision and strategy for the C0mpany’s CSR objectives.
  • Establish relevance of potential CSR activities to the Company’s core business and create an overview of activities to be undertaken, in line with Schedule VII of the Companies Act, 2013.
  • Promote projects that are:
  • Sustainable and create a long term change;
  • Have specific and measurable goals in alignment with the Company’s philosophy;
  • Address the most deserving cause or beneficiaries.
  • Establish a process and mechanism for the implementation and monitoring of the CSR activities.

Committee composition:
In terms of section 135 of the Companies Act, 2013 and rules made there under the CSR Committee of the Board shall be composed of at least three (3) Directors (the “CSR Committee”).

Members of the CSR Committee may be replaced by any other member of the Board.

Committee meetings:
Meetings shall be held at such intervals as the CSR Committee deems appropriate, and in any event shall be held not less than twice a year.

Duties & responsibilities of the CSR Committee:

  • The CSR Committee shall formulate and recommend the internal processes and activities to be undertaken by the Company as mandated by the Board. The CSR Committee shalt be guided by the list of activities specified in Schedule VI! to the Companies Act, 2013 and rules notified there under from time to time.
  • The CSR Committee shall Institute a transparent mechanism for implementation of the CSR projects and activities and monitor implementation of the CSR policy from time to time.
  • The CSR Committee shall ensure disclosure of the content of the CSR policy in the report of the Board of Directors & website of the Company.
  • The Company shall undertake the CSR activities directly. The Board of the Company may, in the future, decide to undertake and implement its CSR activities through a registered trust or registered society or a Section 8 company (Non-profit entity) established by the Company under Section 8 of the Act.

CSR expenditure:
The Board shall ensure that the Company spends or earmarks at least 2% of its average net profit during the preceding three financial years arrived at as per Section 198 of the Companies Act, 2013 and any income arising there from. The surplus arising out of the CSR activities of the Company shall not, in any event, form part of the business profits of the Company and as such shall not be included therein.

CSR activities – projects:
The Company’s core CSR team has been fulfilling the Company‘s CSR commitment, for the past several years. The Company has focused on projects relating to the following activities in areas around its Nongtrai Limestone Mine and related infrastructure covered falling within Nongtrai and Sheila Villages, which also fulfills the requirement given under the proviso to Section 135(5) of the Companies Act, 2013.

– Health Services: .

  • Mobile Health Clinic with Free consultation and medicines.
  • Medical Assistance and transportation facility during Medical Emergencies
  • Community Health Camps, Eye Camps and Cataract operations.
  • Awareness Programmes.
  • Other related activities in relation to health services

– Support for Education:

  • Sponsorship to Local Schools surrounding the Project Area.
  • Augmentation of salaries to teachers from local schools surrounding the Project Area,
  • Awareness programmes, Tree Plantation drives, the holding of Competition programs during Environment Day celebrations.
  • Scholarship for bright students.
  • Other related activities in relation to support for education

– Employment and livelihood enhancing vocational skills and projects.
Promote ‘sustainable development activities which includes:

  • Weaving, Bee Keeping,
  • livelihood enhancement & promotion, Self Help Group (SHG),
  • Skills Development.
  • Other related activities in relation to promotion of livelihood

Social Events: Encourage Sheila and Nongtrai villages to organize sporting events / tournaments and social events.

Promotion of flora and fauna: Protection and propagation of the indigenous Khasi Mandarin orange plants at Nongtrai village and other activities related to protection of flora & fauna.

Strengthening rural infrastructure in areas relating to housing, drinking water, road connectivity, housing, drinking water, sanitation and other related infrastructure development activities

The Company may on specific approval! recommendation of the Board of Directors also undertake ‘other’ CSR activities in line with the Schedule VII of the Companies Act, 2013.

Implementing CSR activities:

  • The implementation and execution of the CSR activities/projects shall be carried out through the Company’s CSR department, headed by the CSR Manager.
  • The Company partners with government agencies, SPV Society, NGO’s, and the local Durbars etc for implementation of its CSR programs. Resources are leveraged for implementation of plan, without creating any parallel facility or any duplication.

CSR department team capabilities:
The Company may build and enhance the CSR capabilities and skills of its own personnel through institutions with established track record of minimum three financial years. The expenditure shall not exceed 5% of the total CSR expenditure of the Company in one financial year

Evaluation, Monitoring and Reporting:

  • Each of the CSR projects and programmes would have clearly defined output, outcome and process indicators which will have to be reported on at specified frequencies, which will be at least bi-annually.
  • All projects and programmes will be monitored by the Company’s CSR team based on regular field visits. The monitoring process will cover both programme and financial reviews.
  • The CSR Manager }person(s) responsible for overseeing CSR initiatives shall prepare and submit an implementation report on a half-yearly basis to the CSR Committee of the Company. Half-yearly reports for the period ending, June 30 and December 31 shall be submitted within ten (1 D) days of the end the half-yearly term in the format detailed under the Companies Act. 2013.
  • The CSR Manager shall circulate the half yearly report to members of the CSR Committee either at the meeting of the CSR Committee or prior to il after the meeting using email or any other communication mode. The Chairman of the CSR Committee shall in turn update the Board on the status of the various CSR initiatives at each meeting of the Board.

CSR Review. Audit. Reporting:
The CSR Committee shall be apprised on the implementation of the CSR activities and the progress shall be monitored on a hal1·yearIy basis.

Records relating to the CSR activities and the CSR expenditure shall be meticulously maintained. The Records shall be submitted for reporting and audit.

The financial audits of the implementing agencies shall also be done through periodic audits. In this regard the Company may appoint independent external consultants for carrying out such audits.

The Directors’ Report of the Company will include a section on CSR reporting as specified in the Companies (Corporate Social Responsibility Policy) Rules. 2014 as amended from time to time.

Website display:
The Company shall display on its website (www.lumpI.com) the contents of its CSR Policy and other information as may be required to be displayed pursuant to the applicable provisions of the Companies Act, 2013.

This Policy may be reviewed and amended from time to time.