Corporate Social Responsibility

Option 1

S t deep D tt (BFT/18/503)
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 Index
• Portfolio
• C.S.R Policies
• C.S.R Activities

 Portfolio

•Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is
India’s largest passenger car maker.
•Maruti Suzuki is credited with having ushered in the automobile revolution in the country.
•Making a small beginning with the iconic Maruti 800 car, Maruti Suzuki today has a vast
portfolio of 16 car models with over 150 variants.
•The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a
state of the art R&D centre in Rohtak, Haryana.
•The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint
venture between the Government of India and Suzuki Motor Corporation, Japan in
February, 1981.
• Presently, Suzuki Motor Corporation owns equity of 56.2%. The Company’s shares are
traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

 C.S.R Policies
Maruti Suzuki India Limited (‘Company’) has developed its Corporate
Social Responsibility Policy (‘Policy’) in accordance with section 135
of the Companies Law 2013 and the rules made there under.

•CSR Approach and Prioritie

•Company will remain ahead in energy conservation at all it’s
manufacturing units and would produce goods that consume fewer
natural resources
•Company will develop products and services to ful ll desires of the
customers and help them during natural calamities
•The company will extend its technological and managerial support to
its suppliers and dealers for their pro table and sustainable growth
•Company would encourage and recognise its employees for
volunteering in the spirit of serving the community and sharing their
skills and expertse
•Company will partner with government, NGOs and other
organisations for the welfare of society especially Underprivileged
people.
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 Maruti Suzuki’s social initiatives focus on three primary area,

• Road Safety
• Vocational Training
• Community development.
•The company also runs an employee volunteering programme called e-
Parivartan and operates two schools

Road Safety:
a) Driving Training: In FY 18-19, the Company trained around 4,00,000 people at the 7 Institutes of Driving Training and
Research (IDTRs) and 16 road safety knowledge centers (RSKC). Additionally, 12 Automated Driving Test Centres are being
set up in association with the Transport Department of Delhi, to reform the drivers’ license issuance system
At the IDTR situated in Vadodara, over 14,000 tribal youth have been trained since 2009, of which more than 60% have gained
employment
Create a large pool of professionally trained drivers.
• The Company will sponsor driving training of existing and new drivers from underprivileged and economically weaker sections of
society to enhance their employable skills.
• The Company will provide refresher training course to commercial vehicle drivers (autorickshaw, truck, bus drivers etc.) to enhance
their driving skills, knowledge of traffic rules and to improve their health and safety.
• The Company will especially focus on women and youth in improving their driving skills.
• The Company will invest in content development, new methods of driving training, construction and development of new training
facilities, improvement in existing facilities and introduction of new technologies with an objective of improve the quality of
training and reduce training cost.
b) Road Safety Education:
The Company undertook two important road safety projects in the National Capital Region using state-of-the-art technologies.
Partnering with Delhi Police, the Company implemented Speed Violation Detection System (SVDS) and Red Light Violation
Detection System (RLVDS) in February 2019 for improved enforcement of traf c rules. Additionally, 12 Automated Driving
Test Centres are being set up in association with the Transport Department of Delhi, to reform the drivers’ license issuance
system.
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Skill Development:
a) Upgradation of Government Vocational Maruti Suzuki partners with ITIs for their
and Technical Training Institutes: The overall upgradation programme includes
Company will improve quality of training by 1. Basic infrastructure developmen
upgrading infrastructure, facilitate overall
development of students and staff, provide 2. Repair and maintenance of machine
industry exposure to students and staff and 3. Provision of teaching aid
offer industry oriented add-on courses in 4. Industry exposure to students and faculties
Government Industrial Training Institutes
(ITIs) to make students industry ready. The 5. Development of an Institute devolopment
Company will also upgrade ITI Teacher’s plan. Etc
Training Institute and Government
Polytechnics to provide better skill training for
youth.
b) Skill enhancement in automobile trade:
The Company will enhance skills of youth
studying automobile trade at Industrial Training
Institutes (ITIs) and Polytechnic (government
and private) to enhance their employment
opportunities in automobile service workshops.
The project will include upgradation of training
facilities, training of trainers, provision of
study material and practical training.
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Community Programme Areas

a) Water and Sanitation: Depending on local needs and in consultation with the community, the Company
undertakes projects to improve availability of clean drinking water, upgrade solid and liquid waste
management facilities, create useful rural assets, and support economically weaker households in construction
of domestic toilets to minimise open defecation.
The Company will supplement these efforts with awareness campaigns and community-led initiatives to
manage these assets and sustain the benefits.
b) Education: In partnership with the local community and the government education department, the
Company will upgrade infrastructure of Government schools and focus on improving the learning level and
all-round development of students and youth in the communities.
The Company will offer scholarships to the meritorious students from underprivileged and economically
weaker communities to help them pursue higher education and job oriented technical and vocational training.
The Company will also offer scholarships to children orphaned as a result of road accidents to support their
education and training.
c) Health: The Company will assess the health care needs of the local community and undertake projects to
provide health care facilities.


 CSR Initiatives 2020
• Maruti Suzuki India Limited is developing a
100-bed hospital in Sitapur, Gujarat. The rst
phase of the project with 50 beds is expected
to be operational by April 2021. The facility is
being developed in partnership with
Ramanbhai Foundation, Ahmedabad
• The Company is also setting up a school in
Sitapur, Gujarat, in partnership with Podar
Education Network. Its primary wing is
expected to become functional from June
2021
• The facility, spread over 7.5 acres, will be one of
its kind in the area with emergency care and
super-specialty medical services. This project will
supplement the Company’s onging efforts of
supporting community health centers in villages
through upgradation of medical infrastructure.
Residential support facilities will be provided to
the hospital staff.
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• In wake of the lockdown due to COVID19 pandemic, Maruti Suzuki India
Limited has undertaken various initiatives to support communities around
its manufacturing facilities in Haryana
• The Company is using its canteens to prepare meals for the temporary
workmen and student trainees staying in village communities around the
Gurugram and Manesar plants
• It has distributed over 5,400 cooked food packets in the nearby
communities. So far, 120,000 food packets have been distributed in
the last three weeks
• Company is supporting the local administration by providing 500
kits of dry ration every day, being distributed in the nearby villages
and include daily use items. It has distributed nearly 10,000 such
packet
• Besides, fresh and clean drinking water is available from Maruti
Suzuki’s 17 Water ATMs installed across 16 villages. The access to
the water ATMs is open and water is dispensed with strict social
distancing norms
• Water ATMs have a capacity to generate over 1,000 litres of drinkable
water per hour
 CSR Budget CSR Committee:

• The Board of Company ensures that in each

financial year, the Company spends at least 2%
of the average net profit made during the
immediate three preceding financial years.
• The unutilized CSR budget from the 2% of the
average net profit will be parked in a CSR Fund
(Corpus) created by the Company.
• This Fund would also include any income
arising there from and any surplus arising out
of CSR activities.
• In case of any surplus arising out of CSR
projects the same shall not form part of
business profits of the Company.
• The Company may collaborate or pool
resources with other companies (its subsidiary
companies) to undertake CSR activities.
• Maruti Suzuki India Limited spent over Rs.
168.2 Crore (Rs. 1,682 million) on Corporate
Social Responsibility (CSR) projects in FY
2019-20

 Roles and responsibilities

The Board: pursuance of the Policy.

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

• Ensuring that the Company spends, in every

financial year, at least 2% of the average net
profits of the Company made during the three
immediately preceding financial years in














CSR Coordinating Team
1. Composition of the CSR
Coordinating Team: The
Company’s existing CSR &
Sustainability Department under
Corporate Planning Division will
be the CSR Coordinating Team.
2. Responsibility of the CSR
Coordinating Team:
Act as central coordinating point
for the CSR implementing
departments.
Coordinate with the implementing
departments for project designing
in compliance with the section 135
of the Companies Act and the CSR
Rules.
Plan annual budgets for CSR
projects in coordination with the
implementing departments and
make a proposal to the CSR
Committee.
Interface with various
implementing departments within
the Company to ensure effective
implementation of CSR projects.
Report to the CSR Committee the
progress on CSR projects and
status of CSR expenditure half
yearly.
Documentation and reporting of all
CSR activities of the Company in
pursuit of the Companies Act and
the CSR Rules.
Monitoring and Reporting
Framework
Project monitoring
The Company will institute a well-
defined monitoring and evaluation
mechanism to ensure that each
social project has:
1. Clear objectives developed out
of the societal needs that are Reporting framework
determined through baselines
studies and research. 1. The Company monitors progress on CSR projects and CSR
2. Clear targets, time lines and spend and report to the top management quarterly and the CSR
measureable parameters wherever Committee half yearly.
possible. 2. The Company will report CSR performance in its annual
3. A progress monitoring and
reporting framework that is aligned
report as per the structure and format prescribed in the notified
CSR Rules.
with the requirements of the
section 135 of the Companies Act
3. The Company will share its CSR performance with its
and the CSR Rules. various stakeholders through its annual Sustainability Report,
The CSR progress monitoring media, conferences, brochures, short films etc.
authorities and the frequency of
review is given below.
THANK YOU