Annual Report on Corporate Social Responsibility (CSR)for the financial year 2015-16

[Pursuant to Section 135 of the Companies Act, 2013 read withRule 8(1) the Companies (Corporate Social Responsibility Policy) Rules, 2014]

1. A brief outline of the Company’s CSR policy, including overview of projects or programs proposed to be

undertaken and a reference to the web-link to the CSR policy and projects or programs:

The main objective of the HUDCO CSR Policy shall be to operate in economically, socially and environmentallysustainable manner in consultation with its stakeholders so as to ensure upliftment of the marginalised and under-privileged sections of the society to promote inclusive socio-economic growth, empowerment of downtrodden,capacity building, environment protection, promotion of green & energy efficient technologies, development ofbackward regions by specially focusing on the projects relating to habitat sector & benefit of the poor. In line withthese objectives, HUDCO CSR Policy’s Thrust Areas are to extend support/taking up Projects related to Provisionof basic amenities viz, sanitation through provision of toilets/community/pay & Use toilets etc., provision ofdrinking water and Night Shelter for shelterless, etc., slum redevelopment including environmental improvement,setting up homes and hostels for women and orphans, setting up old age homes, training/capacity buildingprogrammes of skill and livelihood development, for promoting education, including special education todifferently abled, proposals of sustainability, the preservation and restoration of heritage sites/buildings ofhistorical importance for enhancement of culture and Rural development projects, etc.

In line with these thrust areas, during the year 2015-16, HUDCO has extended support for the projects of NightShelters for shelterless in urban areas, sanitation projects, skill training and maintenance of public spaces/facilitiesetc. in various states/cities. In addition to this, disbursement of CSR assistance was also extended for the proposalssanctioned in the earlier years in line with the guidelines issued by Deptt. of Public Enterprises for CPSEs on CSR& Sustainability for their implementation.

The CSR Policy and other information on CSR is available on HUDCO Website at: http://www.hudco.org

2. The Composition of the CSR Committee:

As on 31st March, 2016, the Composition of the CSR Committee was as under:

(i) Dr. M. Ravi Kanth, CMD, HUDCO - Chairman

(ii) Shri Rajiv Ranjan Mishra, Govt. Director, MoHUPA - Member

(iii) Shri Rakesh Kumar Arora, DF, HUDCO - MemberProf. Sukhadeo Thorat, Independent Director was the member of CSR Committee till the completion of his tenureon 09th October 2015. Further, after nomination of Independent Directors on the Board of HUDCO theIndependent Director shall be inducted into the CSR Committee.

3. Average Net Profit of the Company for last three financial years:

The Average Net Profit (calculated as per the provisions of the Companies Act, 2013) of the company for last three

financial years is ` 1112.24 crore.

4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above)

Prescribed CSR Expenditure (two per cent of the amount as in item 3 above) is ` 22.24 crore.

5. Details of CSR spent during the financial year :

(a) Total amount to be spent for the financial year : ` 22.25 crore

(b) Amount unspent, if any; : During the year an amount of Rs 11.86 crore has been committed againstwhich an amount of ` 3.10 crore has been disbursed to the implementingagencies and the balance amount shall be disbursed on physical/financialprogress and an amount of ` 8.76 crore is yet to be disbursed. Further,an amount of ` 1.63 crore has been also disbursed for the proposalssanctioned in the year 2014-15 and an amount of ` 3.13 crore has beenalso disbursed for the proposals sanctioned in earlier years. In line withthe provisions in the Guidelines on CSR and Sustainability for CPSEsissued by Deptt. of Public Enterprises, the unspent amount from thebudget allocation has been carried forward for taking up the activitiesfor which the amount was allocated in subsequent years.

(c) Manner in which the amount spent during the financial year is detailed below:

Sl. CSR Project/ Activity Sector in which Projects or Amount Amount Cumulative Amount spent Direct orNo. identified the project is programs outlay spent on the expenditure through Implementing agency

covered (1) Local Area (Budget) proposals or up to theor other (2) Projects or programs reporting

Specify the State programs sub heads periodand District wise (1) Direct

where projects expenditureof programs was on projects

taken or programs(2) Over

heads1 Construction of Night Measures for Jalandhar/ 33.90 Yet to be Not applicable Jalandhar Municipal

Shelters reducing the Punjab disbursed Corporationinequality faced Chennai / Tamil 39.00 9.75 9.75 Chennai Corporationby socially and Nadueconomically

Gopeshwar, 26.00 ( in Lac)₹ 6.50 Nagar Palika Parishad, Chamolibackward Groups

6.50

Chamoli/Uttarakhand

Tinsukia/Assam 45.48 6.00 6.00 Tinsukia Development AuthorityKollam/ Kerala 69.80 Yet to be Not applicable Kollam Corporation

disbursed2 Construction of -do- Chennai/ Tamil 60.00 15.00 15.00 Tamil Nadu Police Housing

Rehabilitation block in Nadu Corporation LimitedCentral Prison-I at Puzhal inChennai

3 Model Project of ‘Sustainable -do- Gadag/ 100.00 25.00 25.00 GADAG- BETAGARI MunicipalResidential Cluster” Karnataka Corporation,comprising of 21 housingunits for the EWS (SC/ST)

4 Construction of Public Toilets Sanitation Mokokchung/ 35.00 8.75 8.75 Mokokchung MunicipalNagaland Corporation (MMC)

8.82 Yet to be Not applicable State Urban Developmentdisbursed Agency (SUDA), UP.

Darbhanga/ 17.10 4.27 4.27 Darbhanga Nagar NigamBihar

5 Installation of precast RCC Sanitation Haldwani/ 79.50 19.87 19.87 Nagar Nigam Haldwani –underground Municipal waste Uttarakhand Kathgodamcollection bin system at 16locations

6 Development of Waddepally Environmental Warangal/ 90.00 22.50 22.50 Greater Warangal MunicipalTank Bund, installation of Improvement Telangana Corporation (GWMC)28W LED Solar lightingsystem and O&M for a periodof 3 years

7 Renovation and O&M Environmental South Sikkim/ 60.00 Yet to be Not applicable Tourist & Civil Aviation Deptt.for a period of 3 years of Improvement Sikkim disbursed Govt. of SikkimSiddheswara Dham Complexin Namchi district, SouthSikkim

8 Development, Upgradation of Environmental Vijayawada/ 100.00 25.00 25.00 Vijayawada MunicipalRajiv Gandhi Park and Dr. K Improvement Andhra Pradesh Corporation (VMC), AndhraL Rao Park and maintenance Pradeshfor three years at Vijayawada

9 Development, Beautification Environmental Palacole/ Andhra 65.00 16.25 16.25 Palacole Municipality, Andhraand Maintenance of Improvement Pradesh PradeshShambuni Chervu Palacole

10 Maintenance of Central Bus Environmental Agartala / 20.00 5.00 5.00 Tripura Road TransportDepot & IBT Complex at Improvement Tripura Corporation (TRTC)Agartala

11 Skill Development Vocational Skills Delhi/Delhi 208.20 126.70 126.70 National Safai KaramcharisProgramme to Safai Finance & DevelopmentIn various 48.70 Yet to be Not applicableKaramcharis, Scavengers and districts of West disbursed Corporation (NSKFDC)their dependents Bengal / West

Bengal12 Skill training of Persons with Vocational Skills In various 79.20 19.20 19.20 National Handicapped Finance

Disability (PwDs) districts and Development Corporation(NHFDC)

Grand Total 1185.70 309.79 309.79

Note: HUDCO being a financial institution having no specific geographical area and as such, CSR activities are spread across all over the country.

6. In case the Company has failed to spend the two per cent of the average net profit of the last three financial years

or any part thereof, the Company shall provide the reasons for not spending the amount in its Board report.

During the year an amount of ` 11.86 crore has been allocated for implementation of socially beneficial proposalssuch as construction of Night Shelters, Sanitation projects, skill training and maintenance of publicspaces/facilities etc., in various states/cities all over the country on the recommendations of the CSR Committee ofBoard and an amount of ` 7.86 crore has been released to various implementing agencies for implementation of theproposals including the proposals sanctioned in the earlier years, out of which ` 3.10 crore was released for theproposals sanctioned during the current year and the balance amount of ` 4.76 crore has been released for theproposals sanctioned in the earlier years.

The entire amount could not be utilised due to the reasons that in many proposals, concerned agencies could not achieverequired physical/ financial progress and submit the utilisation certificates for the CSR assistance to be released, due todelay in obtaining required approvals, finalization of tenders, etc. resulting in delay in implementation of the proposalsand consequent release of subsequent instalments of the CSR assistance and in some proposals, where CSR assistance issanctioned, documentation could not be completed by the concerned agencies in time and in view of this 1st installmentof sanctioned CSR assistance couldn’t be released. Further, in line with the guidelines issued by Deptt. of PublicEnterprises (DPE) on CSR & Sustainability, the unspent amount is being carried forward.

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is

in compliance with CSR objectives and Policy of the Company.

HUDCO CSR activities are carried out in accordance with the objectives/thrust areas identified in the CSR Policyapproved by the Board of Directors of Company on the recommendation of the CSR Committee of Board. In linewith the approved CSR Policy, the proposals are monitored by the concerned Regional Offices of HUDCO forensuring the utilisation of CSR assistance released and the status is being reported to the CSR Committee ofBoard, periodically.

Sd/-Dr. M Ravi Kanth

Chairman, CSR Committee andChairman & Managing Director

DIN:01612905

Skill Up-gradation Training Centre , Ongole, Andhra Pradesh under HUDCO - CSR Activities