Introduction

Petronash is an industry leader with proven track record in integrated package solutions and provides value offering and services to maximize value for our customers. With manufacturing and engineering facilities in Dubai and Abu Dhabi in the UAE, Dammam in Saudi Arabia, Doha- Qatar, and Chennai-India and with regional presence across the globe.

Petronash continues to dominate global markets by delivering unmatched customer service and engineering solutions to our clients to achieve tangible productivity. We continuously invest in new and advance technology to increase reliability, drive efficiency bolster safety, and contribute to the world’s energy development and socio-economic growth. Across the world, our technologies are helping customers reach their energy goals.

Petronash as a group is involved in various CSR activities and in India Petronash Engineering Services as a corporate entity would like to contribute to the upliftment of the under privileged. Petronash Engineering Services has formulated a policy for the Corporate Social Responsibility as per the advice and approval of the board of directors.

The term “corporate social responsibility” (CSR) refers to the idea that businesses should integrate social and other beneficial concerns into their operations voluntarily for the benefit of their stakeholders and society at large. This idea aims to make businesses more socially responsible and environmentally conscious.

However, Section 135 of the Companies Act, 2013 (“Act”) provides that certain companies must mandatorily contribute a certain amount towards CSR activities.

As per the Act, ‘Corporate Social Responsibility’ means and includes but is not limited to:

  • Projects or programs relating to activities specified in Schedule VII to The Act.
  • Projects or programs relating to those activities which are undertaken by the Board of Directors of a company in ensuring the
  • Recommendation of the CSR Committee of the Board as per declared CSR Policy along with the conditions that such policy will cover subjects specified in Schedule VII of the Act.

CSR Applicability

The provision of CSR applies to every company fulfiing any of the following conditions in the preceding financial year: Net worth of more than Rs.500 crore Turnover of more than Rs.1000 crore Net profit of more than Rs.5 crore

  • Net worth of more than Rs.500 crore
  • Turnover of more than Rs.1000 crore
  • Net profit of more than Rs.5 crore

Objectives & Principles

The policy’s Objective is to outline Petronash approach to corporate social responsibility (CSR) in accordance with Section 135 of the Companies Act of 2013 and any applicable rules that may be amended over time.

The principles of this policy are to reach out to the marginalised and underprivileged population to address underlying challenges of this society, thereby creating opportunities to improve livelihood and helping people to create better society. Petronash will mainly focus on following areas which are aligned with Section VII of Companies Act
2013.

  • Education and skill development
  • Environmental sustainability including water and sanitation, green energy, afforestation
  • Livelihood
  • Health & Nutrition
  • Humanitarian response– relief and rehabilitation programs

Notwithstanding the main focus areas, as mentioned above, the Company may also undertake CSR activities in other areas as contained in Schedule VII to the Companies Act, 2013 if so, recommended by the CSR Committee and approved by the Board of the Company.

Governance Structure, Approach

Board of Directors

Petronash Board of Directors will be responsible for the following:

  • To form a CSR committee and approve the CSR policy while considering the recommendations of the CSR Committee.
  • To ensure the Company spends a minimum of 2% of the average net profits made during the three immediately preceding financial years as per CSR policy.
  • To approve Projects, Program and activates with budget as proposed by CSR Committee as per Schedule VII of the Companies Act, 2013.
  • Define manner of execution / implementation, modalities of utilisation of funds and monitoring and reporting mechanism
  • Make disclosures in the Board report as per clause (o) of sub-section (3) of section 134 including particulars specified in Annexures to the CSR rules
  • In case CSR spending does not meet 2% as per CSR Policy, the reasons for the unspent amount, and details of the transfer of unspent amount relating to an ongoing project to a specified fund (transfer within a period of six months from the expiry of the financial year).
CSR Committee

Petronash CSR Committee will be responsible for the following:

  • Formulate and review CSR policy and seek approval from the Board of Directors of the Company
  • Identify projects, programs, and activities which aligns as per the budget for the year with the Board of Directors and seek approval. And
  • implement the activities either through the Implementation Partner or directly through its own team.
  • Propose manner of execution / implementation, utilisation of funds and monitoring and reporting mechanism to the Board.
  • Spend the allocated amount on CSR activities once approved by the Board of Directors and create a transparent monitoring mechanism of CSR initiatives.
  • Submit periodic reports to the Board for the activities undertaken (If applicable).

The Board may alter the said plan at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect.

Implementation and Monitoring Mechanism

Implementation

Petronash will be preforming CSR activities mentioned in Schedule VII of Companies Act 2013 through a Trust or directly through its own team. If CSR team decides to undertake a long-term project (More than 3 Months) through Trust or by themselves. Committee should submit their Annual Plans with clearly prepared Quarterly milestones.

Monitoring Mechanism

The CSR Committee and the Board shall monitor execution of various approved projects, programs and activities as listed in the annual action plan. Robust reporting mechanism will also aid in monitoring proper utilisation of funds and create impact on the ground in terms of building a more inclusive society.