Last updated on March 25th, 2025
This policy in relation to the Corporate Social Responsibility ("CSR") of Farmart Service Private Limited, is referred to as the "CSR Policy" and shall include any alterations, amendments, or modifications made from time to time.
Corporate Social Responsibility (hereinafter referred to as ‘CSR’) is the way and mean through which corporates can repay the obligations made by the Society by contributing the resources in its various forms as required for the efficient operation of the Business. Corporate Social Responsibility is strongly connected with the principles of sustainability. Organization should make decisions based not only on financial or operational factors, but also on the social and environmental consequences. Therefore, it is the core corporate responsibility of the Company to practice its corporate values through its commitment to grow in a socially and environmentally responsible way, while meeting the interests of its stakeholders. This CSR policy is framed in terms of the Companies Act, 2013 (hereinafter referred to as 'the Act') read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 (hereinafter referred to as 'the CSR Rules'), as amended from time to time.
2.1 FarMart’s CSR policy will aim to work towards the following objectives:
Reducing food loss and waste
Increasing income and livelihoods for smallholder farmers
Promoting education in the field of food studies
Reducing carbon emissions and environmental impact of the food supply chain
2.2 Contribution to the eligible charitable Trust registered under Societies Act for promotion of these objectives.
2.3 Promotion and Financing any other activities to be advised by the Govt. or approved by the Board of Directors (‘Board’) from time to time.
2.4 Promote eligible Trusts and Societies and/or encourage eligible trusts and societies or other implementing agencies, registered under section 8 of the Companies Act, who are engaged in promoting the above objectives solely with our company or jointly with any other companies.
2.5 To establish a process and mechanism for the implementation and monitoring of the CSR activities for the Company
The CSR Rules are applicable to Indian Companies or subsidiaries of Indian Companies and Foreign Companies operating in India and having net worth of Rs. 500 Crores or more or turnover of Rs. 1000 Crores or more or a net profit of Rs. 5 Crores or more during the immediately preceding financial year.
The CSR Policy shall apply to all CSR projects / programmes / activities undertaken by the Company in accordance with the clauses contained herein and section 135 of the Companies Act 2013 read with Companies (Corporate Social Responsibility) Rules, 2014 including all statutory modifications / amendments made thereof.
4.1 The Board shall constitute a Corporate Social Responsibility Committee of the Board for the purpose of preparing a detailed plan of the CSR activities including decisions regarding the expenditure, types of the activities to be undertaken by the company or agencies like Trust/s, Societies, individuals etc. to implement such CSR activities, roles and responsibilities of such Trusts, Societies, individuals etc., monitoring and reporting mechanism.
4.2 The Board of the Company shall after considering the recommendations made by the CSR Committee, approve the CSR policy for the Company and disclose contents of such policy in its report and also place it on the Company’s website. The Board shall ensure that the activities as are included in CSR policy of the Company are undertaken by the Company, ensure that the Company spends in every financial year, at least 2% of the average net profits of the company made during the 3 immediately preceding financial years. If the Company fails to spend such amount, the Board shall in its report specify the reasons for not spending the amount. The Company shall give the preference to the local areas.
4.3 The Directors of the Company are responsible for Disclosure of information in the Directors’ report under Section 134(3)(O) of the Act, specifying reasons for not spending the required amount for CSR activities.
5.1 Purpose
The Corporate Social Responsibility (CSR) Committee of the Company will be formed by the Board of Directors of the Company to assist the Board in carrying out its responsibilities as per the CSR Policy of the Company.
5.2 Composition of the CSR Committee
The CSR initiatives/activities of the Company will be identified and initiated by the CSR Committee comprising 2 (two) or more members of the Board. The Board has the power to appoint any Director, remove any such Director so appointed and appoint another in his place. Any such appointment and/or removal shall be made by a resolution of the Board.
a. At each meeting of the CSR Committee, the members of the CSR Committee shall elect one of them as the Chairman of the Meeting.
b. The Board will have the power to reconstitute CSR Committee as and when required from time to time.
However, where the amount to be spent by a company under section 135 (5) does not exceed Rs. 50 lakh, the requirement for the constitution of the CSR Committee shall not be applicable and the functions of such Committee in such cases be discharged by the Board of Directors.
5.3 Meetings
The CSR committee may meet as and when required. The CSR Committee shall be entitled to invite any person to attend its meetings and participate in the discussion and deliberations if it thinks fit.
5.4 Quorum
The quorum necessary for the transaction of business of CSR Committee shall be 2 members or 1/3rd of the total Committee members, whichever is higher. A duly convened meeting of the Committee at which a quorum is present shall be competent to exercise all or any of the authorities, powers and discretions vested in or exercisable by the Committee as provided herein and delegated by the Board from time to time.
5.5 Invitees to the CSR Committee
The CSR Committee may, at its discretion, invite employees of the Company or other persons as it may deem fit, from time to time to participate in the meetings of the CSR Committee and assist the CSR Committee in the implementation of the CSR Policy. Invitees to the CSR Committee meetings shall be entitled to participate in the deliberations of the CSR Committee but will not be entitled to vote at the meetings of the CSR Committee.
5.6 Scope of the CSR Committee
The CSR Committee has been set up to:
Formulate and recommend to the Board CSR Policy which shall indicate the activities to be undertaken by the Company as detailed in the Schedule VII to the Act.
Review the CSR policy from time to time / once in a year or such other periodical intervals as may be required.
Estimate and compute the amount of expenditure to be incurred on CSR activities on an annual basis or project to project basis. All the expenditure to be incurred towards CSR activities shall be reviewed by the Board, subject to such monitory ceilings as may be prescribed by the Act. Unutilized CSR budget of a particular year to be permitted for carryover to the next financial year as per the provisions of the Act.
Monitor the CSR initiatives and Policy of the Company from time to time.
Formulate and recommend to the Board, an annual action plan in pursuance of the CSR policy, containing such matters as prescribed in the Act or the CSR Rules.
Perform such other functions as may be required to be performed by the CSR Committee under the Act or the CSR Rules.
6.1 The Company, upon the recommendation of its CSR Committee and with necessary approval of the Board, can undertake activities as part of its corporate social responsibility initiatives, which are defined in Schedule VII of the Companies Act 2013. Broadly, the company would focus on the following strategic areas.
Reducing food loss and waste
Approximately 40% of agricultural produce is lost or wasted due to inefficiencies in the postharvest supply chain, inadequate storage facilities, and lack of market access. We want to take up initiatives that help reduce these inefficiencies in the supply chain.
Supporting research and innovation projects focused on minimizing post-harvest losses.
Partnering with organizations working on food redistribution to ensure surplus food reaches those in need.
Funding awareness campaigns to promote best practices in storage, processing, and distribution.
Increasing income and livelihoods for smallholder farmers
89% of all farmers in India are smallholder farmers with landholdings of less than 2 acres and incomes falling below sustenance levels. With correct capacity building on advanced agri practices and diversification of income, we can help these farmers build flourishing businesses using their lands.
Investing in capacity-building programs that provide smallholder farmers with skills and knowledge to improve productivity.
Supporting initiatives that enhance market access and fair pricing mechanisms for farmers.
Collaborating with NGOs and social enterprises to create diversified income streams for rural farming communities.
Promoting education in the field of food studies
There is a lack of formal education around food systems at primary, secondary, as well as higher education levels. We want to build future leaders who can innovate and solve the complex challenges of hunger and food insecurity.
Providing scholarships and grants for students pursuing studies in sustainable agriculture, food technology, and related fields.
Supporting educational programs that raise awareness about sustainable food systems and nutrition.
Reducing carbon emissions and environmental impact of the food supply chain
The agricultural supply chain is a significant contributor to carbon emissions, with conventional farming practices and logistics playing a major role.
Funding projects that promote sustainable farming practices such as agroforestry, precision agriculture, and regenerative farming.
Supporting renewable energy adoption and energy efficiency improvements in agricultural operations.
Investing in research and partnerships aimed at measuring and mitigating carbon emissions in the food supply chain.
6.2 The CSR Activities will be carried out in a manner that the preference is to undertake the CSR Activities in and around the local areas where the Company operates.
6.3 Based on the scope of activities set out in paragraph 6.1 above, the CSR Committee shall provide recommendations to the Board with respect to specific CSR Activities that may be undertaken by the Company.
6.4. The Board shall ensure that appropriate designated staff or personnel provide adequate assistance (viz. data collection, survey, quotations and costs involved etc) to the CSR Committee to enable it to make necessary recommendations to the Board. For this purpose, the CSR Committee may also approach external consultants for necessary assistance as it may deem fit at such costs as may be approved by the Board.
6.5. The following details of any CSR Activities to be undertaken by the Company shall be presented to the Board by the CSR Committee along with its recommendations:
The objectives and expected results of the CSR Activity;
The relevant sector and the nature of the CSR Activity;
The focus area/ location for implementation of the CSR Activity;
The amount to be allocated towards the CSR Activity;
The indicative timelines for completion of the CSR Activity;
Whether the CSR Activity should be undertaken by the Implementation Group or any Implementing Agency or in collaboration with any other company; and
Such other details as it may deem necessary
6.6. In case any of the CSR Activities to be undertaken are anticipated to be long term, then a detailed estimate on implementation schedule or milestones should be submitted by the CSR Committee to the Board.
6.7. Based on the recommendations of the CSR Committee, the Board shall approve the following:
The specific CSR Activities that should be undertaken by the Company from time to time;
The amount that should be deployed towards such CSR Activity;
Whether the CSR Activities will be undertaken directly by the Company or through an Implementing Agency or in collaboration with any other companies [and record reasons for the same].
a) The activities to be undertaken by the Company as CSR activities shall be the projects/ programs relating to the activities/ subjects specified enumerated in the Schedule VII of the Companies Act, 2013 or any amendment thereto or modification thereof from time to time.
b) CSR activities may be initiated/ implemented/ executed by the Company; Or through:
i. A registered trust, registered society, registered NGO or by a company established by the Company or its subsidiary or associate company under Section 8 of the Companies Act, 2013.
ii. If such trust, society or company is not established by the Company or its holding or subsidiary or associate company, the eligible CSR activities will be undertaken in collaboration with a specialized organization institution or agency which has an established track record of at least three years in undertaking CSR projects or in carrying on permissible CSR activities. iii. An agreement/ contract or any other written communication will be executed by the Company.
c) The Committee shall from time to time decide/recommend to the Board on, CSR activities to be undertaken, the geographical area covered, agencies or trusts or NGO’s with which the projects/activities are to be undertaken, the amount to be spent on various projects whether ongoing or fresh or new projects.
d) CSR Committee shall have full discretion to specify or modify the modalities of execution of CSR projects or programs and to determine implementation schedule.
e) While deciding on the CSR activities, priority shall be given to the needs and requirements of communities or local area and areas around, in the vicinity of the Registered Office as well as various showrooms of the Company are situated.
f) The CSR activities shall be undertaken within India.
8.1. There is no maximum ceiling for CSR expenditure by the Company. However, as per section 135 of the Act, the board shall ensure 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 year. The net profit means, as calculated under Section 198 with other adjustments as referred in Rule 2(h) of CSR Rules. The surplus, if any, arising out of CSR projects or programs or activities shall not form part of the business profits of the Company.
8.2. The expenditure for various projects, programs and activities are to be decided at the initial stage by the Company and such projects, programs and activities are to be approved by the CSR Committee of the Board. Once these projects, programs are approved by the CSR Committee, expenses for such activities may be permitted by the Company.
Various CSR activities, projects and programs are to be monitored by the Company and progress is to be reported to be CSR committee of the Board at periodical intervals.
The contents of the CSR policy of the Company as approved by the Board shall be displayed in the Companies official website.