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The document provides an overview of Rittal India Pvt Ltd, including its history, divisions, customers, and financial performance. It describes Rittal's enclosure systems and power distribution components divisions. Rittal has over 600 employees in India and aims to double its sales every 2.5 years. The document also discusses the business model canvas tool and the industrial profile of sheet metal manufacturing.

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0% found this document useful (0 votes)
164 views48 pages

Thanush Project

The document provides an overview of Rittal India Pvt Ltd, including its history, divisions, customers, and financial performance. It describes Rittal's enclosure systems and power distribution components divisions. Rittal has over 600 employees in India and aims to double its sales every 2.5 years. The document also discusses the business model canvas tool and the industrial profile of sheet metal manufacturing.

Uploaded by

dhanushmr
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 48

A Report on CSR polices in Rittal India Pvt Ltd

CHAPTER 1
DESCRIPTION OF THE COMPANY

1.1. Name of the Company


Innovation has always been at the core of Rittal's DNA, ever since its inception in 1961
as Rudolf Loh Elektrogerätebau in Rittershausen, founded by entrepreneur Rudolf Loh.
The company's guiding principle was simple: "Enclosures off the shelf, immediately."
In its very first year, Rittal introduced the world's first standard enclosure to the market.
In 1969, the company was renamed
Rittal in homage to its origins in
Rittershausen, Dietzhölztal. Over the
years, Rittal enclosures quickly gained
global recognition and became the
industry standard, a position they
continue to hold to this day
Fig 1.1 Rittal plant Germany
Source: www.rittal.in

Address of the Company


23, 24, KIADB Industrial Area, Veerapura Doddaballapura Yelahanka - Doddaballapur
Main Road, Bengaluru, Karnataka 561203

Number of Employees
Rittal India Private Ltd. has 600 employees. It was founded in 1969.

1.2 Divisions of the company


Rittal has steadily grown into the world's leading systems provider for
enclosures, power distribution, climate control, IT infrastructure, and software and
services since its founding in 1961. Currently, Rittal – The System provides you with a
well-coordinated system platform. It brings together creative productions, cutting-edge

M P Birla Institute of Management Page 1


A Report on CSR polices in Rittal India Pvt Ltd
engineering solutions, and global service to meet the most diverse needs. It serves a
wide range of industries, including equipment and plant engineering, automotive
manufacturing, and information technology.

1.2.1 Enclosure System Division


Enclosures of various sizes, both small and large PC Case & Enclosure System, System of the
Console, System of the Command Panel, System of the Command Panel, System of the
Command Explosion-proof enclosures, EMC-shielded enclosures, and other types of
enclosures are available. Enclosures made of polycarbonate.

1.2.2 Power Distribution Components Division


Networkingi racksi &i enclosures,i Enclosurei monitoringi system,i Walli mountedi enclosure,i
Datairacks,iModularitelecommunicationidistributorsi
\
1.2.3 Fiber Data communication Components Division
Datai racks,i Telecommunicationi racks,i modulari telecommunicationi distributors,i fibrei
optici distributioni enclosures,i Serveri racksi andi Structure,i Cablingi accessoriesi andi
standing,i Networkingi racksi andi enclosures,i Enclosurei monitoringi system,i walli mountedi
enclosure,i Datai racks,i Telecommunicationi racks,i modulari telecommunicationi
distributors,i fibrei optici distributioni enclosures,i Serveri racksi andi Structurei Thei
enclosuresi divisioni consistsi of The division of building systems.

1. Division of commercial products


2. A split of connected systems.
3. The division of industrial products and systems.
4. Division of lighting systems.
5. Medical technology and imaging.
6. Division of utility products.

1.3 Customer profile and market share


1. Your Rittal Manufacturer’s Service is always close at hand. Our highly qualified teams
are contactable around the clock, offering bespoke solutions

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A Report on CSR polices in Rittal India Pvt Ltd
2. The smooth running of your production facilities and high availability of your data
centre relies on uninterrupted processes. The Rittal Manufacturer’s Service offers
comprehensive service expertise, covering every aspect from installation and
commissioning, to maintenance and repairs, through to efficiency enhancements and
modernization.
3. Your one-stop provider: We respond to your growing demands for flexibility and rapid
response times with fast, off-the-shelf availability of original spare parts and a direct
line to our technical support team.
4. Manufacturer expertise: Our qualified service engineers with their expert knowledge
and understanding of industry and IT applications are always on hand to assist you.
Proximity to the customer: With 150 service locations and more than 1,000 service experts
worldwide, rapid response times are guaranteed. In Germany, our in-house team of more
than 50 service engineers ensures a local presence.

Service portfolio

Failures and performance losses cost time and money. With this in mind, our customers
worldwide have access to a particularly comprehensive range of services with customised
selection options, from configuration and commissioning through to after-sales services. We
guarantee fast, easy delivery of original spare parts, and troubleshooting either at your premises
or in one of our factories.

Here is a summary of financial information of Rittal Private Limited for the financial year
ending on 31/12/2021.

1. Revenue / turnover of Rittal Private Limited is over INR 500 cr


2. Net worth of the company has increased by 4.35 %
3. EBITDA of the company has increased by 56.86 %
4. Total assets of the company has increased by 11.91 %
5. Liabilities of the company has increased by 26.86 %
6. For a detailed balance sheet

M P Birla Institute of Management Page 3


A Report on CSR polices in Rittal India Pvt Ltd
Future Growth and Prospects

The overall goal for the next five years is to double sales every two and a half years, resulting
in a target of 4-5 times current sales. With India's rapidly growing automobile and machine
tool industries, as well as a surge in the use of enclosure air cooling for electronic drives. There
is a considerable market opportunity for inverters and crane applications in the process
industry. The primary purpose is to service both the enormous and developing domestic market
as well as the SAARC countries that India serves. Rittal. Because of their lights-out automation
technique, their equipment can generate customer components all night long, delivering the
highest level of production efficiency. Rittal provides all of the advantages of just-in-time
delivery to its customers. Customers should have a long and intimate relationship with Rittal.
They prefer to be seen as a collaborator, so that they may solve problems together in the most
cost-effective way possible. Their personal attention allows them to participate in the sheet
metal fabrication needs of their customers as well as offer ideas and suggestions that will
benefit your company.

1.4. Business Model Canvas Tool


The Business Model Canvas (BMC) is a strategic management tool that provides a concise and
effective way to define and communicate a business idea or concept. It is a one-page document
that outlines the fundamental elements of a business or product, structuring them in a visually
organized manner. In this study, the objective is to apply the BMC model to conduct a
feasibility study for the production and commercialization of semi-hard artisan cheeses
flavored with milk in a specific case study. It is important to clarify the concepts of business
plan and business model in this context. While a business plan is typically used to attract
investments from potential partners or request loans from financial institutions, it is a formal
document that presents a comprehensive image of the company to third parties, demonstrating
its economic-financial viability with a strategic long-term focus. Business plans are complex,
subject to uncertainty, and often involve a large number of elements that may not be applicable
in day-to-day operations.

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A Report on CSR polices in Rittal India Pvt Ltd
CHAPTER 2
INDUSTRIAL PROFILE

2.1. Introduction

The level of economic development is measured using industrial development as a benchmark.


All of the world's industrialised countries have a well-established and diverse industrial sector.
India has all of the prerequisites for industrial development. Its massive population size
provides inexpensive labour and a wide market for manufactured goods, in addition to its vast
and diverse natural resource endowment goods before the industrial revolution in Europe, India
was an industrially advanced country. India's industry was intertwined with its agriculture, and
domestic industries were an important element of the country's economy. Indian artisans and
craftsmen could weave cloth, build pottery and bamboo utensils, create jewellers and metal
wares, and create timber and leather goods.

2.2. Origin of Industry

The sheet metal business began in America in the 1730s, and the name sheet metal is self-
explanatory. It is made of copper, tern plant (lead coated) steel, galvanised iron, aluminium,
and brass, among other materials. It starts with a description of sheet metal's versatility as a
building material. Metal is rolled into sheets in a range of gauges utilizing machines.

2.3. Growth and Development of the Industry

The show features contemporary sheet metal applications, as well as the history of sheet metal
in America, as well as tools and manufacturing. Sheet metals - copper, terns plate (lead coated)
steel, galvanised iron, aluminium, and brass – are used to create the installation, which is
located on the west court of the museum's great hall. Sheet metal is also used in the heating
and ventilating systems of the Discovery Parks multi-tenant research centre in Vancouver, as
well as the stainless roof of the AT & T building in Kansas City. A massive ventilator and a
sheet copper urn are waiting to be compared and pondered. This introductory section, which
features a quirky glossy palm tree next to stainless steel kitchen cabinetry, should prove to be

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A Report on CSR polices in Rittal India Pvt Ltd
an eye opener for people unfamiliar with sheet metal's importance in contemporary architecture
and everyday life.

2.4. Organization Profile

Rittal is the world's largest enclosure system producer. It is part of the Fried helm Lok company
group in Germany. Since its inception in 1961, the company has grown to become the world's
leading enclosure producer. The Fried helm Lok group of companies today employs around
11000 people worldwide, with 19 manufacturing facilities, including 9 in Germany, 3 each in
the United States and the United Kingdom, and 1 each in Italy, Canada, France, India, Brazil,
and China. With companies in 60 countries and agents in over 100 countries, Rittal has a global
footprint. Rittal India Pvt Ltd is a wholly owned subsidiary of Germany's Rittal & Co. KG.
Rittal has grown to become one of the world's largest enclosure manufacturers. Rittal India Pvt
Ltd. fabricates sheet metal components and assists in the fabrication of subassemblies ranging
from simple to sophisticated. Rittal's skills include sheet metal fabrication and precision
engineering. Rittal India Pvt Ltd will be their partner from co-development to delivery, whether
customers demand engineering manufacture and design services, sheet metal prototype, low-
cost assembly, or supply chain management.

2.5. Back Ground

In the month of June 1995, Rittal began operations in India. Rittal items were imported from
Germany and introduced to Indian clients in the beginning. In November 1997, the facility in
India began operations. The market development phase went off without a hitch. Customers
accepted Rittal products as their first option because of their world-class quality. The
advantages of the latest technology, modular architectures, product variety, and a wide range
of accessories were soon recognised and accepted by Indian users. Rittal items were easily
distinguished by their quality and beauty by Indian users. The Rittal plant is 15350 square
metres in size and sits on a 13-acre plot. It is equipped with state-of-the-art machinery from
Germany, including nine folded roll forming machines, trumph shearing and bending
machines, hydraulic presses, and a paint plant. The plant also has a 10300 square metre stocking
facility to enable fast / ex-stock supply / service to our customers from four modification
centres in Delhi, Chennai, Pune, and Bengaluru. The plant also has a stocking facility of over

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A Report on CSR polices in Rittal India Pvt Ltd
10300 Sq, Meters rate to ensure immediate / ex-stock delivery / service to our customers from
four modification centre located at Delhi, Chennai , Pune and Bangalore.

2.6. Corporate Principles


Shared values separate the company's owners, management, and staff. Our successful
collaboration and social commitments reflect this.

1. Our employees' abilities and cooperation, together with their goal-oriented motivation,
are a vital asset of our organization.
2. We understand the link between the growth of skills and knowledge, motivation, and
organizational success. Finally, we promote and support our employees' participation
in training and further education, as well as their participation in the company's overall
success.
3. We consider our customers as partners who define the company's success.
4. We must fulfil our customers' demands and assist them in solving their problems
because they are our future guarantors.
5. In terms of quality, technical capability, range, and availability, our products and
services must provide demonstrable benefits to our consumers..
6. We must be faster and better than the competition on a daily basis, and we must
demonstrate this to our clients.
7. We must be faster and better than the competition on a daily basis, and we must
demonstrate this to our clients. As a result, we must always endeavour to produce ideas
and projects that can be implemented effectively.
8. Our goal is to build long-term and meaningful partnerships with our suppliers on a
partnership basis, ensuring our survival and positioning us to meet future difficulties.
9. This necessitates a strategic approach centred on quality, delivery service,
affordability, and cooperative issue resolution in the face of competition.
10. We put all of our efforts towards planning, developing, and delivering professional and
timely products and services at a low cost.
11. We are conscious of our obligations to the environment and the world we live in. As a
result, we want to be a part of shaping and improving it.
12. We keep the system running – faster, better, and everywhere.

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2.7 Nature of Business


Rittal India Pvt Ltd is a Multinational Corporation (MNC) based in India. Rittal India Pvt Ltd
is an ISO 9001-3000 certified firm that is now the market leader in the manufacturing of climate
control enclosures in India. A corporation with multiple locations and products. Rittal is used
in a wide range of industries, including industrial enclosures, IT solutions, transportation
technology, automation, and more. Rittal completes all responsibilities for a wide range of
application areas, always keeping the future in mind. Over 11000 employees throughout the
world are thinking and acting on behalf of customers – with in-depth industry knowledge,
practical experience, curiosity, and foresight. Rittal's objective is to make progress in all areas
and for all applications. Rittal is putting in a lot of effort into future solutions. This is their
tradition, and it is the key to their technological packaging innovation. Rittal, a leader in
comprehensive solutions, offers a glimpse into the future of communication technologies and
automation. Setting trends entails getting to know your clients, developing future safe
solutions, and looking ahead. Industrial Ethernet, nano-spraying, and Rittal cooling systems
are just a few of the many instances that demonstrate their dedication to this philosophy.

2.8. Rittal Power and Vision.


Rittal has steadily grown into the world's leading systems provider for enclosures, power
distribution, climate control, IT infrastructure, and software and services since its founding in
1961.

Currently, Rittal – The System provides you with a well-coordinated system platform. It brings
together creative productions, cutting-edge engineering solutions, and global service to meet
the most diverse needs. It serves a wide range of industries, including equipment and plant
engineering, automotive manufacturing, and information technology.

That is what “Rittal – The System, Faster – Better – Everywhere” is all about.

On your behalf, a team of 10,000 makes and develops Rittal – The System. Assuring your
success by staying on track. Take advantage of synergy opportunities with our sister company,
the world's largest software provider for cross-disciplinary engineering solutions. We never
lose sight of our social and environmental responsibilities.

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2.9. Products Profile

Rittal has long since progressed from simple housing and enclosure solutions to complex full
systems. Enclosures, mechanical and electrical component installations, climate control, and
computer-assisted monitoring are all now part of an integrated solution. and computer assisted
monitoring are all now part of an integrated solution.

2.9.1. Enclosure System

Enclosures of various sizes, both small and large PC Case & Enclosure System, System of the
Console, System of the Command Panel, System of the Command Panel, System of the
Command Explosion-proof enclosures, EMC-shielded enclosures, and other types of
enclosures are available. Enclosures made of polycarbonate.

2.9.2. Power Distribution Components

Networking racks & enclosures, Enclosure monitoring system, Wall mounted enclosure, Data
racks, Modular telecommunication distributors,

2.9.3. Fiber Data communication Components


Data racks, Telecommunication racks, modular telecommunication distributors, fibre optic
distribution enclosures, Server racks and Structure, Cabling accessories and standing,
Networking racks and enclosures, Enclosure monitoring system, wall mounted enclosure, Data
racks, Telecommunication racks, modular telecommunication distributors, fibre optic
distribution enclosures, Server racks and Structure The enclosures division consists of:

1. The division of building systems.


2. Division of commercial products
3. A split of connected systems.
4. The division of industrial products and systems.
5. Division of lighting systems.
6. Medical technology and imaging.
7. Division of utility products.

2.10 Type of Enclosures

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1. Enclosures.
2. Stainless steel aluminum
3. Stainless steel aluminum enclosure.
4. Power control centre stainless steel electrical cabinet enclosure.
5. Stainless steel cabinet motor control centre.

Rittal – The System. Faster- Better – Everywhere.

The sum of its components is more than the sum of its parts. The same may be said with
Rittal The System. With this in mind, we've combined our cutting-edge enclosures, power
distribution, climate control, and IT infrastructure components into a single system
platform for you. We create distinctive additional value for you by combining our vast
variety of software products with our global service.

2.11. Services

1. International project coordination including third party suppliers.


2. Support and maintenance services.
3. Global service with our in house service engineers.
4. Global spare parts service.
5. Plannable costs with individual maintenance contracts around globe.

2.12. On the way to becoming a market leader, you'll pass through a number
of checkpoints.

2.12.1. Innovative Made At Germany- The 1960s

1. 1961: The standard enclosure is invented: the AE is a highly fast type; Rittal is
founded.
2. In the Netherlands, the first Rittal agency is established in 1964.
3. Production of the big enclosure RS starts in 1969.

2.12.2. Rapid internationalisation – The 1970s

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1. 1971: Rittal establishes its first subsidiary in Sweden.
2. Fried helm Loh takes over as CEO in 1974.
3. In 1977, the company moved its headquarters to Herborn.
4. 1979: Additional European subsidiaries are create
2.12.3. Expansion overseas – The 1980s

1. The power distribution division was created in 1982.

2. 1983: Rittal opens a subsidiary in the United States with its own
manufacturing facility.

. 3. The temperature control section was established in 1982.

4. 1984: Establishment of own manufacturing plant in England.

2.12.4. The large-scale quality campaign – The 1990s

1.1991: Involvement in new German states begins, with a distribution


centre in Bad Kostritz.

2.1993: Expansion into Eastern Europe and Asia begins.

3. ISO 9001 certification in 1994, and ISO 14001 certification in 1997

4. 1997: Haiger opens a modern forwarding warehouse.

2.12.5. Global standards – The new millennium


1. RimatriX5 system solution for data centers released in 3004.
2. Rittal Service International is founded in 3007.
3. 3008: Rittal – The System, based on the TS 8 system platform, combines
consulting, products, and services.
4. 3011: The firm celebrates its 50th anniversary, and TS has over 7.7
million machines in use worldwide.

2.13. Production sites worldwide

1. The Urbana Plant, Ohio / USA.


2. The Bangalore Plant, India.
3. The Shanghai Plant, China.

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A Report on CSR polices in Rittal India Pvt Ltd
4. The Viareggio Plant, Italy.
5. The Plymouth Plant, United Kingdom.

2.14. Infrastructure facility

2.14.1. Travel Expenses while on Training / Conference / Corporate Visits.

Where lodging / boarding arrangements are provided by corporate / training


institutions, actual conveyance and other miscellaneous expenses, up to a reasonable
amount, will be reimbursed.

2.14.2. Lunch / Food Allowance

Lunch expenses, if applicable, during the local Official visit is reimbursed @ maximum
of Rs.150 /- subject to production of actual bills. Germany The Rittal Specialists in
cost-effective stainless steel serial production, tiny enclosures, operating and consoles,
and Hygienic Design series production. 8,000 m2 total production area.

2.15. Future Growth and Prospects

The overall goal for the next five years is to double sales every two and a half years, resulting
in a target of 4-5 times current sales. With India's rapidly growing automobile and machine
tool industries, as well as a surge in the use of enclosure air cooling for electronic drives. There
is a considerable market opportunity for inverters and crane applications in the process
industry. The primary purpose is to service both the enormous and developing domestic market
as well as the SAARC countries that India serves. Rittal. Because of their lights-out automation
technique, their equipment can generate customer components all night long, delivering the
highest level of production efficiency. Rittal provides all of the advantages of just-in-time
delivery to its customers. Customers should have a long and intimate relationship with Rittal.
They prefer to be seen as a collaborator, so that they may solve problems together in the most
cost-effective way possible. Their personal attention allows them to participate in the sheet
metal fabrication needs of their customers as well as offer ideas and suggestions that will
benefit your company.

M P Birla Institute of Management Page 12


A Report on CSR polices in Rittal India Pvt Ltd

CHAPTER 03
PROBLEM STATEMENT

3.1. Problem Statement

Withi thei increasingi integrationi ofi Corporatei Sociali Responsibilityi (CSR)i intoi businessi
functions,i iti hasi becomei cruciali fori companiesi toi evaluatei thei impacti ofi theiri actionsi
oni theiri marketi base.i Whilei noti alli CSRi activitiesi mayi havei tangiblei returnsi fori
companies,i iti isi essentiali fori themi toi recognizei thei benefitsi ini orderi toi encouragei
morei companiesi toi engagei ini CSRi initiatives.i Thesei benefitsi arei beingi usedi asi
measuresi ofi CSRi ini thei Indiani marketplace,i specificallyi targetingi thei populationi thati
cani besti understandi andi evaluatei thesei activitiesi wheni makingi decisions.i Ifi therei isi
noi correlationi betweeni thei independenti variablesi ini thisi researchi andi corporatei
reputation,i iti cani bei inferredi thati thei marketi hasi noti yeti reachedi ai pointi wherei CSRi
actionsi arei seeni asi indicatorsi fori corporatei reputationi decisions.

CSRi isi thei principlei thati holdsi organizationsi accountablei fori theiri impacti oni alli
relevanti stakeholders,i committingi toi behavingi fairlyi andi responsibly,i contributingi toi
economici developmenti whilei improvingi thei qualityi ofi lifei fori theiri workforce,i
families,i thei locali community,i andi societyi asi ai whole.i Ini India,i CSRi practicesi tendi
toi focusi oni whati isi donei withi profitsi afteri theyi arei made,i withi ani emphasisi oni
sustainabilityi ori responsiblei businessi practicesi thati consideri thei sociali andi
environmentali impactsi ofi businessi practicesi toi generatei profits.i Thisi convergencei isi
apparenti fromi thei preamblei toi thei drafti rulesi relatingi toi thei CSRi clausei withini thei
Companiesi Act,i 2013,i whichi emphasizesi integratingi stakeholdersi withi social,i
environmental,i andi economici objectives,i aligningi withi thei ideai ofi ai triplei bottomi linei
approach.i Thisi approachi isi alsoi evidenti ini thei Guidelinesi oni CSRi andi Sustainabilityi
fori Centrali Publici Sectori Enterprisesi issuedi byi thei DPEi ini Aprili 2013.

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CSR Legal Framework:


In 2009, the Ministry of Corporate Affairs (MCA) issued the Corporate Social Responsibility
Voluntary Guidelines, which marked a significant step towards addressing CSR in India. The
MCA had previously discussed the importance of CSR in the context of corporate governance
reforms in 2000, in the Report of the Task Force on Corporate Excellence. The 2009 Guidelines
outlined the key components of a CSR policy, such as care for all stakeholders, ethical
functioning, respect for workers' rights and welfare, human rights, environment, and social
development. In 2011, the MCA issued the National Voluntary Guidelines of Social,
Environmental & Economic Responsibilities of Business, which were based on inputs received
from various stakeholders across India. The 2011 Guidelines laid down nine principles for
businesses to promote inclusive economic growth, with an "apply-or-explain" principle urging
corporations to adopt all nine principles and report their adherence to the guidelines.

NVG PRINCIPLES

The National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities


of Business (NVGs) have established a common standard for companies to improve their CSR
efforts, particularly in the area of sustainability. These guidelines have been laid down by the
Ministry of Corporate Affairs to provide guidance to companies in addressing the expectations
of inclusive growth and imperatives of climate change, while aligning with national aspirations
and policies.

The Ministry of Corporate Affairs issued National Voluntary Guidelines in 2011, as a basis for
which organizations must function and voluntarily disclose practices of their firms. These span
nine areas identified below:

Principle 1: Businesses should conduct and govern themselves with Ethics,


Transparency and Accountability.
Principle 2: Businesses should provide goods and services that are safe and contribute
to sustainability throughout their life cycle.

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Principle 3: Businesses should promote the well - being of all employees.
Principle 4: Businesses should respect the interests of, and be responsive towards all
stakeholders, especially those who are disadvantaged, vulnerable and marginalized.
Principle 5: Businesses should respect and promote human rights.
Principle 6: Business should respect, protect, and make efforts to restore the
environment.
Principle 7: Businesses, when engaged in influencing public and regulatory policy,
should do so in a responsible manner.
Principle 8: Businesses should support inclusive growth and equitable development.
Principle 9: Businesses should engage with and provide value to their customers and
consumers in a responsible manner.

The above stated NVG Principles are applicable to all businesses irrespective of size, sector or
location. These NVGs were designed with the intent of assisting enterprises to become
responsible entities whereby they formulate their financial /business objective while
considering the impact on various diverse stakeholders including society and environment at
large.

Moreover, the National Voluntary Guidelines on Social, Environmental and Economic


responsibilities of business by the Ministry of Corporate Affairs indicates that governments
emphasize on CSR and engaging public and private companies and enhancing their
contribution toward lessening the gap between economic and social progress.

SEBI Guidelines:
In August 2012, the Securities and Exchange Board of India (SEBI) mandated the inclusion of
Business Responsibility Reports (BR reports) as part of the Annual Reports for the top 100
listed entities based on market capitalization at BSE and NSE as of March 31, 2012, as per
Clause 55 of the Listing Agreement. Other entities have the option to voluntarily include BR
reports in their Annual Reports, starting from December 31, 2012.

Department of Public Enterprise

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These guidelines, effective from April 1, 2013, are a revised version of the previous
comprehensive "Guidelines on Corporate Social Responsibility for Central Public Sector
Enterprises" issued by the Department of Public Enterprises (DPE) in April 2010. The revised
guidelines by the DPE now also take into account internal stakeholders, particularly employees,
in addition to external stakeholders, and include a dedicated section on sustainability reporting
and disclosure.

As per the "Guidelines on Corporate Social Responsibility and Sustainability for Central Public
Sector Enterprises" revised by the Department of Public Enterprises (DPE), Ministry of Heavy
Industries and Public Enterprises, each Central Public Sector Enterprise (CPSE) is required to
make a budgetary allocation for CSR and Sustainability activities/projects for the year with the
approval of its Board of Directors. The budgetary allocation is determined based on the Profit
after Tax (PAT) of the company in the previous year.

Table.3.1. DPE Guidelines on Corporate Social Responsibility


PAT of CPSE in the Range of budgetary allocation for CSR and sustainability
previous Year activities (as % of PAT in previous year)
Less than Rs.100crore 3%–5%
Rs.100crore to 2%–3%
Rs.500crore 1%–2%
Rs.500crore and above
Source: The revised guidelines by DPE, with effect from 1 April 2013

Accordingl tol thel policyl document,l “Corporatel Sociall Responsibilityl (CSR)l shouldl bel
viewedl asl al wayl ofl conductingl business,l whichl enablesl thel creationl andl distributionl
ofl wealthl forl thel bettermentl ofl itsl stakeholders,l throughl thel implementationl andl
integrationl ofl ethicall systemsl andl sustainablel managementl practices.”l Thel guidelinesl
coverl multiplel areasl forl CPSEl functioningl inl thel spherel ofl CSR.
1. Thel primel motivationl ofl CSRl andl Sustainabilityl isl bothl businessl gainl andl
sociall valuel creation,l throughl “sharedl valuel approach”.
2. Topl Managementl ofl publicl enterprisesl isl expectedl tol leadl initiativesl inl thisl
area.

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l Itl isl envisagedl thatl therel willl bel al “two-tierl structure,l comprisingl ofl al Boardl
levell committeel headedl byl eitherl thel Chairmanl andl /l orl Managingl Director,l orl
anl Independentl Director,l andl al groupl ofl officialsl headedl byl al seniorl executivel
ofl notl lessl thanl onel rankl belowl thel Boardl levell –l whichl thel CPSEsl arel
mandatedl tol create,l isl expectedl tol havel thel authorityl andl influencel tol bel ablel
tol steerl thel CSRl andl Sustainabilityl agendal ofl thel company.”
4. Priorl tol undertakingl al CSRl andl sustainabilityl project,l itl isl advisablel tol conductl
al baselinel surveyl asl partl ofl thel needsl assessmentl study.
5. Anyl unspentl budgetl allocatedl forl CSRl activitiesl inl al givenl yearl willl bel carriedl
overl tol thel nextl year,l andl anl explanationl mustl bel providedl forl anyl
underutilization.l Ifl fundsl remainl unspentl forl twol consecutivel years,l theyl willl
bel transferredl tol al separatel "Sustainabilityl Fund"l designatedl forl CSRl andl
sustainabilityl activities.
6. Thel focusl ofl thel guidelinesl isl onl thel sizel andl impactl ofl projects,l ratherl thanl
theirl number.
7. Tol optimizel resourcel utilizationl andl increasel impact,l CPSEsl arel encouragedl tol
collaboratel onl projects.
8. CPSEsl canl undertakel initiativesl relatedl tol promotingl integrityl andl ethicall
practices,l producingl sustainablel goodsl andl services,l contributingl tol inclusivel
andl equitablel development,l andl improvingl employeel andl laborl welfare,l
includingl safety,l security,l professionall growth,l andl healthyl workingl conditions.
9. CPSEsl arel requiredl tol selectl atl leastl onel projectl relatedl tol inclusivel growthl inl
al backwardl districtl andl environmentl sustainability.l Backwardl districtsl arel
definedl asl thosel identifiedl byl thel Governmentl ofl India'sl Planningl Commissionl
forl itsl Backwardl Regionl Grantl Fundl (BRGF)l Scheme.
10. CPSEsl mayl supportl reputedl andl recognizedl non-profitl organizationsl withl
expertisel inl training,l skilll development,l andl capacityl buildingl activitiesl thatl
promotel sustainablel developmentl andl inclusivel growthl andl contributel tol thel
realizationl ofl thel UNl Millenniuml Developmentl Goalsl throughl regionall orl
sectorall cooperation.

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Sectionl 135l ofl thel Companiesl Actl 2013:
Thel Companiesl Actl ofl 1956l didl notl havel anyl mandatoryl provisionsl forl Corporatel
Sociall Responsibilityl (CSR),l butl thel Companiesl Actl ofl 2013l changedl thatl withl thel
introductionl ofl Sectionl 135.l Thisl clause,l whichl wasl passedl byl bothl Housesl ofl thel
Parliamentl andl receivedl thel President'sl assentl onl 29l Augustl 2013,l mandatesl thatl
companiesl engagel inl CSRl activitiesl asl perl Schedulel VIIl ofl thel Act.l Thel Ministryl ofl
Corporatel Affairs,l Govt.l ofl Indial madel CSRl mandatoryl froml 1stl Aprill 2014l andl
notifiedl thel rulesl throughl twol documents:

1. Sectionl 135l ofl thel Companiesl Actl 2013l whichl outlinesl thel typesl ofl CSRl
activitiesl tol bel undertaken.
2. Thel Companiesl (CSR)l rules,l 2014,l whichl providesl guidelinesl forl companiesl tol
developl theirl CSRl program.

Thel CSRl committeel isl responsiblel forl developingl al detailedl planl onl CSRl activities,l
includingl thel expenditure,l thel typesl ofl activities,l rolesl andl responsibilitiesl ofl variousl
stakeholders,l andl al monitoringl mechanisml forl suchl activities.l Additionally,l thel
committeel ensuresl thatl alll incomel generatedl byl CSRl activitiesl shouldl bel creditedl
backl tol thel communityl orl CSRl corpus.

Thel mandatoryl CSRl provisionsl mayl bel classifiedl as:

(i) CSRl provisionsl whichl arel Universallyl applicablel tol alll companies
(ii) CSRl provisionsl whichl arel applicablel tol specifiedl companies,l isl represented.

Sectionl 166(2)l ofl thel 2013l Actl requiresl al directorl ofl al companyl tol actl inl goodl faithl
tol promotel thel objectsl ofl thel companyl forl thel benefitl ofl itsl membersl asl al whole,l
andl inl thel bestl interestsl ofl thel company,l itsl employees,l itsl shareholders,l thel
communityl andl forl thel protectionl ofl environment.

Specifically,l thel provisionsl underl Sectionl 135l requiresl companiesl with

1. Netl worthl ofl rupeesl fivel hundredl crorel orl more,

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2. Turnoverl ofl rupeesl onel thousandl crorel orl more
3. l Al netl profitl ofl rupeesl fivel crorel orl more

(i) tol appointl al CSRl Committeel ofl atl leastl 3l directorsl (onel independentl director),l
and

(ii) Underl thel guidancel ofl thel CSRl Committee,l spendl inl everyl financiall year,l atl
leastl twol perl centl ofl thel averagel netl profitsl ofl thel companyl madel duringl thel threel
immediatelyl precedingl financiall years,l inl pursuancel ofl itsl Corporatel Sociall
Responsibilityl Policy.

Whilel thel quantuml ofl CSRl spendingl alongl withl reportingl hasl beenl mandatorilyl setl
underl Sectionl 135,l therel isl somel inbuiltl flexibilityl inl thel lawl inl termsl ofl al
company’sl choicel ofl itsl CSRl activities.l Insteadl ofl rigidlyl definingl thel boundariesl ofl
CSR,l thel actl broadlyl specifiesl inl Annexurel VIIl ofl thel Act,l thel scopel ofl sociall
responsibilityl inl termsl ofl al listl ofl activitiesl thatl thel corporatel canl potentiallyl
undertake,l leavingl thel choicel ofl activitiesl tol itsl discretion.l Ifl thel companyl failsl tol
spendl suchl amount,l thel Boardl shalll givel inl itsl reportl thel reasonsl forl notl spending.l
Therel wasl nol provisionl alongl thesel linesl forl mandatoryl CSRl policyl andl CSRl spendsl
inl thel 1956l Act.l Sol farl asl compliancel tol Sectionl 135l isl concerned,l thel lawl adoptsl
al comply-or-explainl approach,l withl nol explicitl penaltiesl forl non-compliance.

Withl thel enactmentl ofl Sectionl 135l ofl thel Companiesl Act,l 2013,l asl observedl byl thel
Ministryl ofl Corporatel Affairsl inl thel Reportl onl thel Standingl Committeel onl Finance,l
Indial becamel thel firstl countryl tol includel provisionsl onl CSRl inl Companyl Lawl andl
makel CSRl expenditurel mandatoryl forl corporatesl basedl onl pre-specifiedl criteria.

Thel Boardl ofl companyl referredl tol inl sub-sectionl (1),l shalll ensurel thatl thel companyl
spends,l inl everyl financiall year,l atl leastl twol perl centl ofl thel averagel netl profitsl ofl thel
companyl madel enforcedl withl effectl froml 1-4-2014,l duringl thel threel immediatelyl
precedingl financiall years,l inl pursuancel ofl itsl Corporatel Sociall Responsibilityl Policy.

Thel companyl shalll givel preferencel tol thel locall areal andl areasl aroundl itl wherel itl
operates,l forl spendingl thel amountl earmarkedl forl Corporatel Sociall Responsibilityl
activities:l Providedl furtherl thatl ifl thel companyl failsl tol spendl suchl amount,l thel Boardl

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shall,l inl itsl reportl madel underl clausel (o)l ofl sub-sectionl (3)l ofl sectionl 134,l specifyl
thel reasonsl forl notl spendingl thel amount.l Forl thel purposesl ofl thisl sectionl “averagel
netl profit”l shalll bel calculatedl inl accordancel withl thel provisionsl ofl sectionl 198.

RATIONALl OFl CSRl BYl Rittall

Corporatesl havel progressedl froml thel traditionall assumptionl thatl purposel ofl businessl
isl onlyl tol makel profits.l Nowadaysl successl inl businessl dependsl notl onlyl onl quality,l
pricel andl conveniencel alonel butl alsol otherl elementsl likel ethicall businessl practices,l
healthyl Organizationall culture,l environmentall concern,l sociall responsibilityl andl sol on.l
Organizationl isl al vitall partl ofl thel societyl andl itl cannotl functionl inl isolationl froml thel
society.l Organizationsl havel al corporatel responsibilityl tol takel measuresl thatl protectsl
andl improvesl welfarel ofl societyl asl al wholel alongl withl theirl ownl interest.l
Organizationsl likel Rittall Indial Pvtl Ltdl l havel controll overl naturall resourcesl andl
financiall resourcesl inl netl worthyl percentage;l dol surelyl workl forl deliveringl highl
standardl ofl livingl inl society,l alongl withl contributingl towardsl economicl growth.l Butl
thenl alsol societyl hasl tol bearl burdenl ofl sociall costl inl somel orl otherl manner,l duel tol
variousl operationsl thatl arel conductedl inl organizationl likel Rittall Indial Pvtl Ltdl forl e.g.l
Rittall Indial Pvtl Ltdl usesl coall asl al majorl ingredientl tol producesl power,l thel by-l
productsl inl thel processl ofl generatingl powerl arel definitelyl havingl negativel impactl inl
thel surroundingl areas,l sol itl becomel vitall tol activelyl fulfill thel sociall responsibilitiesl
onl societall frontl byl suchl Rittall Indial Pvtl Ltd.l Asl al responsiblel corporatel organization,l
Rittall Indial Pvtl Ltdl preamblel envisions,l "tol bel thel world’sl largestl andl bestl powerl
producer,l poweringl India’sl Growth".l Itl isl steeredl byl thel mission,l "Developl andl
providel reliablel power,l relatedl productsl &l servicesl atl competitivel prices,l integratingl
multiplel energyl sourcesl withl innovativel &l eco-friendlyl technologiesl andl contributel tol
society".l Rittall Indial Pvtl Ltdl hasl establishedl thel followingl Corporatel Objectivesl onl
CSRl &l Sustainability:

Rittall Indial Pvtl Ltdl hasl madel al commitmentl tol dischargel itsl corporatel sociall
responsibilitiesl byl contributingl tol sustainablel powerl developmentl andl leadingl sectorsl
inl areasl ofl resettlementl &l rehabilitationl andl environmentl protection,l includingl
effectivel ash-utilization,l peripherall development,l andl energyl conservationl practices.l

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Thel companyl aimsl tol positivelyl impactl societyl atl large,l especiallyl thel communityl inl
thel neighbourhoodl ofl itsl operations,l byl improvingl theirl qualityl ofl life,l promotingl
inclusivel growth,l andl environmentall sustainability.l Rittall Indial Pvtl Ltdl isl
implementingl variousl communityl developmentl initiativesl underl itsl Initiall Communityl
Developmentl (ICD)l policy,l Rehabilitationl &l Resettlementl (R&R)l policy,l andl Policyl
forl Corporatel Sociall Responsibilityl (CSR)l &l Sustainabilityl tol improvel thel qualityl ofl
lifel inl thel neighbourhoodl community.

1. Initiall Communityl Developmentl Policy:

Rittall Indial Pvtl Ltdl 'sl ICDl policyl isl responsiblel forl preparingl thel rulesl ofl ICDl planl
thatl helpsl inl improvingl qualityl ofl lifel inl areasl wherel Rittall Indial Pvtl Ltdl proposesl
tol establishl newl plant/l operationall unitl atl pre-projectl stagel asl pre-R&Rl activities.

2.l Rehabilitationl andl Resettlementl Policy:

Thisl policyl isl responsiblel forl preparationl andl executionl ofl Rehabilitationl Actionl Planl
(RAP)l forl project-affectedl persons,l whichl includesl CDl planl forl affectedl villages,l
resettlementl colonies,l andl adoptedl villages.

3.l Communityl Developmentl Policy:

CDl policyl providesl forl regulatoryl principlesl onl preparation,l execution,l andl
documentationl ofl communityl developmentl activitiesl inl thel targetl villages,l whichl
shouldl bel inl continuationl withl RAPl phase.

4.l Disasterl awareness:

Rittall Indial Pvtl Ltdl focusesl onl thel areasl ofl “Readinessl andl capacityl buildingl ofl thel
community”l inl disasterl managementl processesl withl al dedicatedl Safetyl Group.l Rittall
Indial Pvtl Ltdl l partnersl withl governmentl andl privatel agenciesl tol toughenl andl
formalizel theirl rolel inl disasterl managementl processl tol preparel thel communitiesl
towardsl disasterl resilience.

l 5.l Environmentl activities:

Environment-relatedl initiativesl arel takenl carel byl al dedicatedl groupl calledl NETRAl
(Rittall Indial Pvtl Ltdl Energyl Technologyl Researchl Alliance).l Rittall Indial Pvtl Ltdl l

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takesl alll necessaryl precautionsl tol minimizel damagel donel tol environmentl duel tol itsl
operations.

Rittall Indial Pvtl Ltd.l l COMMUNITYl DEVELOPMENTl POLICY

Communityl Developmentl ofl Rittall Indial Pvtl Ltdl isl governedl byl thel following:

1. Rittall Indial Pvtl Ltdl aimsl tol bel al sociallyl responsiblel corporatel entityl andl setl
anl examplel inl areasl ofl resettlement,l rehabilitation,l communityl development,l
environmentall protection,l ashl utilization,l andl energyl conservationl inl thel sector.
2. Rittall Indial Pvtl Ltdl intendsl tol contributel tol sustainablel powerl developmentl
throughl itsl corporatel sociall responsibilityl (CSR)l initiatives,l benefitingl itsl
stakeholdersl suchl asl customers,l employees,l shareholders,l communities,l andl thel
environment.l Expendituresl relatedl tol staffl benefitsl arel notl includedl inl CSR.
3. Rittall Indial Pvtl Ltdl prioritizesl improvingl thel livesl ofl Projectl Affectedl Personsl
(PAPs)l throughl itsl ICDl planl formulatedl underl thel ICDl policy,l Rehabilitationl
Actionl Planl (RAP),l andl R&Rl policyl whilel establishingl newl projects.l Thel
companyl alsol emphasizesl developingl basicl infrastructurel inl PAPsl andl thel
surroundingl areas.
4. Asl al memberl ofl UN'sl Globall Compactl program,l Rittall Indial Pvtl Ltdl adheresl
tol itsl 10l principlesl inl thel areasl ofl humanl rights,l labour,l environment,l andl anti-
corruption.
5. Rittall Indial Pvtl Ltd'sl CDl policyl followsl thel guidelinesl onl CSRl forl Centrall
Publicl Sectorl Enterprises,l issuedl byl thel Departmentl ofl Publicl Enterprises,l
Ministryl ofl Heavyl Industries,l andl Publicl Enterprises,l Governmentl ofl India.

Scopel andl Coveragel ofl CDl Policy

1. Rittall Indial Pvtl Ltdl appliesl thisl Policyl forl CSRl &l Sustainabilityl tol alll CSRl
andl sustainabilityl activitiesl undertakenl byl thel companyl acrossl India,l includingl

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theirl formulation,l implementation,l monitoring,l evaluation,l documentation,l andl
reporting.
2. Thisl CDl policyl replacesl alll previousl policiesl andl guidelinesl relatedl tol CD,l
exceptl forl thel provisionsl relatedl tol CD/infrastructurel developmentl underl thel
existingl R&Rl policy.
3. Thisl policyl onlyl appliesl tol thel areasl thatl havel beenl explicitlyl identifiedl andl
approvedl duringl thel projectl planningl phase.
4. Thisl policyl conformsl tol thel provisionsl ofl Companiesl Actl 2013l andl DPEl
Guidelinesl onl CSR,l withl thel latterl prevailingl inl casel ofl anyl discrepanciesl
betweenl thisl policyl andl thel Companiesl Act.
5. Anyl newl provisionsl arisingl froml amendmentsl tol Companiesl Act,l 2013l orl rulesl
madel thereunderl willl bel incorporatedl intol thisl policy.

Rittall Indial Pvtl Ltdl CSRl -l INSTITUTIONALl SET-UP

CSRl Governancel structurel ensuresl thatl Rittall Indial Pvtl Ltdl integratel CSRl inl dayl tol
dayl operations.l CSRl divisionl inl Rittall Indial Pvtl Ltdl isl al threel tierl structurel –l
Corporate,l Regionl andl Stationl withl al separatel Boardl levell Committeel tol aide,l approvel
&l evaluatel CSRl activityl froml timel tol time.l Thel followingl three-tierl structurel isl
responsiblel forl implementingl CDl activities.

1. Thel Corporatel centerl isl responsiblel forl policyl matters,l preparationl ofl annuall
reports,l designingl trainingl programsl forl CDl staff,l approvingl CDAPs,l andl
facilitatingl fundsl allocationl tol stations.l CDl projectsl arel monitoredl everyl sixl
monthsl throughl regionall headquarters.
2. Regionall Headquartersl arel responsiblel forl implementingl CDl activitiesl andl
compilingl quarterlyl andl annuall reportsl forl submissionl tol thel Corporatel center.l
Theyl forml anl advisoryl committeel forl planningl andl observingl unit-levell CDl
projects,l monitorl andl reviewl thel formulationl andl implementationl ofl CDAPl andl
budgetl utilizationl ofl operatingl stationsl underl theirl control.
3. Operatingl Stationsl setl upl al dedicatedl CDl celll responsiblel forl needsl assessment,l
preparationl andl implementationl ofl CDAP,l andl reportingl onl physicall andl

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financiall progressl onl al monthlyl basis.l Theyl monitorl thel CDl projectsl andl
reviewl progressl asl perl planl monthly.
4. Rittall Indial Pvtl Ltdl Foundationl isl al trustl registeredl underl thel Trustl Actl
responsiblel forl nationall levell planning,l monitoring,l evaluation,l andl
documentationl ofl communityl developmentl projects.
5. Employeel Voluntaryl Organizationl forl Initiativesl inl Communityl Engagementl
encouragesl employeesl andl theirl familyl membersl tol volunteerl underl Employeesl
NGOsl bannerl andl facilitatesl planningl andl implementationl ofl recognizedl CSRl
&l Sustainabilityl projects.
6. CDl Staffl includesl dedicatedl developmentl experts/professionalsl atl alll levelsl –l
corporatel center,l regionall headquarters,l andl operatingl stations.
7. Publicl Informationl Centrel (PIC)l isl establishedl tol maintainl transparencyl andl
keepl PAPsl andl communityl informedl throughoutl thel formulationl andl
implementationl ofl CDl projects.
8. Villagel Developmentl Advisoryl Committeesl (VDACs)l arel establishedl tol
institutionalizel communityl andl locall administrations'l participation,l preparation,l
implementation,l andl monitoringl ofl ICD,l R&R,l andl CDl projects.
9. Rittall Indial Pvtl Ltdl focusesl onl creatingl awareness,l training,l andl capacityl
buildingl forl CDl staff,l EVOICEl staff,l andl VDACl onl integratingl sociall
processesl withl businessl processesl andl communityl engagement.l
Training/orientationl programsl arel organizedl regularly.

Rittall Indial Pvtl Ltdl CSRl PLANNINGl PROCESS:

Thel processl ofl CSRl includesl variousl stepsl tol bel followed,l thesel arel specifiedl below

1. Identificationl ofl CDl projectsl andl itsl area:


Preparationl forl CDl isl carriedl alongl withl R&Rl activities.l Firstl stepl beingl identificationl
ofl broadl levell ofl activities.l Thesel broadl levelsl ofl activitiesl arel closelyl interlinkedl
withl long-terml CDl goall andl stickl tol thel exercisel ofl sustainablel development.

2. Baseline/existingl Statusl Survey:

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CDl projectsl arel createdl withl long-terml goall forl facilitatingl thel basicl infrastructurel
andl civicl facilities,l alongl withl maintenancel methods.l Atl projectl end,l thel effectsl itl
createdl arel quantifiedl onl thel basisl ofl baselinel datal andl arel comparedl withl CDl goals,l
statel andl nationall developmentl goals,l andl MDGs.l Thel initiall baselinel surveyl donel
underl socio-economicl studiesl isl carriedl outl whilel makingl thel RAPl isl consideredl asl
baseline.

3. Needl Assessment:l Bottom-Upl Approach:


Bottom-upl approachl isl usedl inl planningl CDl projects.l Thel CDl projectsl forl Rittall Indial
Pvtl Ltdl l operatingl stationsl arel createdl onl thel basisl ofl needl assessmentl surveysl
(NAS).l NASl involvesl in-depthl village–stakeholderl consultationl andl gapl identificationsl
basedl onl surveysl andl analysis.l Basedl onl thel survey,l al detailedl projectl focusingl needsl
ofl PAPs,l communityl andl targetl villagesl arel preparedl alongl withl specificl deliverables,l
time-framel andl budget.l NASl triesl tol capturel thel needsl ofl thel mostl vulnerablel sectionl
ofl thel communityl asl well.

4. Synchronizingl withl developmentl plansl ofl statel andl centrall governments:


Quantifiablel deliverablesl ofl CDl projectsl isl laidl onl thel basisl ofl gapsl identifiedl
betweenl developmentl goalsl framedl atl statel andl nationall level,l andl thel existingl
situationl ofl thel CDA.l Thel CDl projectsl arel formulatedl tol synergizel withl nationall
developmentl goalsl andl effortsl shouldl bel madel tol contributel forl thel nationall andl statel
goals.

5. Preparationl ofl Actionl Plans:


Actionl planl involvesl vestingl PAPs,l communityl andl thel targetl villagesl inl phasedl
mannerl forl anl identifiedl plannedl period.

1. Long-terml plan:l Thisl isl forl 20l yearsl andl compliesl withl long-terml corporatel
plan.l Itl includesl overalll developmentl ofl identifiedl projectl area.l Therel shouldl
bel onlyl onel planl underl onel operatingl station.
2. Medium-terml planl (CDAP):l Medium-terml projectl planl isl fivel yearsl plan,l
whichl inl lucidl withl Rittall Indial Pvtl Ltdl l businessl plan.l Thel planl consistsl
ofl sectorl specificl projectsl likel education,l health,l andl infrastructurel

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developmentl inl thel projectl area.l However,l therel shalll bel onlyl onel medium-
terml planl (CDAP)l underl onel operatingl station.
3. Short-terml plan:l Al onel yearl planel inl syncl withl Rittall Indial Pvtl Ltdl 'sl
annuall targetl planl isl termedl asl Shortl terml plan.l Thel planl includesl activitiesl
undertakenl inl al particularl yearl tol fulfilll thel mediuml terml plans.l
6. Contentsl ofl CDAP:
Coverl title,l goal,l objectives,l mapl demarcatingl projectl area,l baselinel scenario,l needsl
assessment,l communityl participation,l linkagesl withl nationall goals,l projectl
implementationl mechanism,l associatedl risksl andl mitigationl measures,l deliverables,l
output,l outcome,l Organizationl andl staffing,l institutionall tie-ups,l timeline,l specificl startl
andl endl dates,l estimatedl budget,l financiall plan,l monitoringl andl evaluationl mechanism.l
Survey,l needl prioritization,l andl developmentl ofl al long-terml actionl planl arel thel
prerequisitesl forl allocationl ofl resourcesl underl thel CDAP.

7. Quantifiablel Targets:
Thel planl clearlyl identifiesl targetsl proposedl tol bel achievedl overl thel plannedl period.l
Forl eachl activity,l al groupl ofl quantifiablel metricl isl developedl forl reportingl anl
achievement.l Explicitl targets,l indicatorsl andl benchmarksl arel acknowledgedl basedl onl
nationall andl statel goals,l locall needsl andl existingl situations.

8. Budgetl andl Fundl Allocation:


Thel CDl activitiesl forl stationsl fallingl underl commerciall operationl arel plannedl underl
Operationl andl Maintenancel (O&M)l budgetsl ofl CSR.l Inl casel ofl newl projectsl andl
expansionl projectsl underl constructionl /commissioning,l thel CDl activitiesl arel plannedl
underl Capitall Budgetl forl R&Rl Fundl allocationl isl donel onl thel basisl ofl long-terml CDl
plans.l Itl isl estimatedl thatl 65%l ofl thel fundsl isl reservedl forl long-terml incrementall
plans,l 15%l isl forl entryl pointl andl otherl activities,l includingl activitiesl relatedl tol
continuationl ofl R&Rl actionl planl thatl may/mayl notl bel governedl byl CDl planl andl 20%l
willl bel forl maintenancel ofl infrastructurel developed.l Tol ensurel effectivel deliveryl alll
CDAPsl arel financedl inl segments.l Fundsl arel distributedl onl thel basisl ofl long-l terml
projectsl andl willl bel disbursedl onl yearlyl installmentl basis.

9. Implementation:

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Rittall Indial Pvtl Ltdl l makesl effortl tol decentralizel andl devolvel enactmentl ofl CDAPsl
tol locall NGOsl andl locall institutionsl inl anl orderlyl andl plannedl manner.l Rittall Indial
Pvtl Ltdl l recognizel andl teaml upl withl crediblel locall institutions/l nationall specializedl
institutions.l Thel specializedl agenciesl couldl bel thenl madel tol workl singlyl orl inl co-
ordinationl withl otherl agencies.l Rittall Indial Pvtl Ltdl l CDl corporatel centerl celll willl
developl al meansl tol verifyl thel reliabilityl andl credibilityl ofl thel specializedl agenciesl
recognizedl forl implementationl ofl CDl projects.

Internall monitoring:

Tol ensurel thel effectivenessl andl sustainabilityl ofl thel CDl projects,l al Jointl Committeel
composedl ofl representativesl froml VDAC,l CD,l andl thel locall governmentl isl establishedl
tol evaluatel thel projectsl onl al quarterlyl basis.l Thel involvementl ofl locall stakeholdersl isl
cruciall inl fosteringl al sensel ofl ownershipl withinl thel community.l Additionally,l CDl staffl
froml onel stationl conductsl annuall sociall auditsl ofl CDl projectsl implementedl byl otherl
stations,l andl vicel versa,l followingl relevantl guidelinesl andl reportingl theirl findings.

l l l Externall evaluation:

Thel effectivenessl ofl thel CDl projectsl isl alsol gaugedl vial reliablel externall agenciesl forl
providingl requiredl feedback,l andl inputsl tol articulatel andl improvel thel projectsl inl
future.l Everyl stationl getl reviewed/l evaluatedl inl itsl CDl projectsl byl al thirdl partyl atl
leastl oncel everyl twol years.l Thisl assessmentl shalll bel bothl concurrentl andl final.

l l Grievancel l Redressall :

Thel CDl celll atl thel regionall headquartersl regularlyl reviewsl thel CDl projectsl
implementedl byl operatingl stationsl onl al quarterlyl basis.l Thel regionall headsl ofl CSRl
holdl meetingsl tol discussl theirl findingsl andl providel inputl forl necessaryl policyl
interventionsl atl thel corporatel level.l Progressl isl reviewedl byl thel Directorl (HR)l onl al
half-yearlyl basis,l andl thel detailsl arel presentedl tol thel Rittall Indial Pvtl Ltd.l
management.l

10. Reporting:

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Alll operatingl stationsl atl Rittall Indial Pvtl Ltdl l sl followl al synchronizedl reportingl
format.l Thel reportingl formatl forl CDl projectsl isl asl perl thel guidelines.l Thel impactl
createdl byl CDl projectsl isl quantifiedl byl Rittall Indial Pvtl Ltdl l tol thel bestl possiblel
extentl withl baselinel data.l Existingl statusl surveysl arel createdl priorl tol initiationl ofl anyl
CDl project.l Rittall Indial Pvtl Ltdl l willl conductl periodicl reviewsl ofl thel programmesl
onl al quarterlyl basis.l Quarterlyl reviewl reportsl arel madel byl operatingl stations,l andl arel
sharedl withl communityl andl thel staff;l feedbackl willl bel takenl andl includedl intol thel
succeedingl actionl plansl asl welll asl inl thel finall annuall reports.l Rittall Indial Pvtl Ltdl l
createsl al separatel chapter/paragraphl onl thel variousl CDl activitiesl undertakenl includingl
thel factsl relatingl tol physicall andl financiall progressl intol itsl annuall report.l Rittall Indial
Pvtl Ltdl l hasl developedl anl interactivel portall onl CDl projectsl tol createl transparencyl inl
processl andl facilitatel monitoringl andl documentationl ofl thel CDl processes.l Rittall Indial
Pvtl Ltdl l alsol hasl al separatel Centralizedl Datal Managementl Systeml underl thel
Enterprisel Resourcel Planl forl CD.l Thel datal managementl systeml maintainsl archivesl andl
updatedl informationl accessiblel tol alll Operatingl Stations,l Regionall Headquartersl andl
Corporatel Center.

Thel Policyl forl CSRl &l Sustainabilityl isl availablel onl Rittall Indial Pvtl Ltdl 'sl websitel
andl intranetl forl externall &l internall stakeholders.l CSRl &l Sustainabilityl initiativesl arel
conveyedl tol stakeholdersl vial local/l nationall printl &l visuall media,l conferences,l
workshopsl andl otherl forums.l Internall workshops,l training,l newsl bulletins,l brochures,l
intranetl etc.l isl widelyl usedl tol createl awarenessl aboutl CSRl &l Sustainabilityl initiatives,l
amongl internall stakeholders.l Indicativel listl ofl Rittall Indial Pvtl Ltdl l -l CSRl &l
Sustainabilityl projects/l programs/l activitiesl asl perl schedulel VIIl isl illustrated.

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CHAPTER 4

DATA ANALYSIS

4.1. Internship Description

Rittal India Pvt Ltd effectively utilizes corporate communication and corporate social
responsibility as key components of their public relations (PR) strategy, which also serves as a
branding and positioning tool in the national and international markets. Rittal India Pvt Ltd's
advertising efforts have played a significant role in managing their PR strategy. Known for
their commitment to quality and services, Rittal India Pvt Ltd has leveraged corporate
communication and corporate social responsibility to maintain relationships with their staff and
clients. The company places a strong emphasis on maintaining a positive relationship with their
internal staff by providing various facilities, while also upholding their goodwill in the market
with their clients.

Rittal India Pvt Ltd has effectively managed crises by promptly responding to them. Their PR
strategies align with their corporate communication goals of sustainable growth and
positioning their brand in the national and international markets. The study suggests that Rittal
India Pvt Ltd utilizes various communication and media theories to create a positive impact on
society. However, it also indicates that Rittal India Pvt Ltd employs concepts such as Agenda
Setting, Opinion Leaders, and Propaganda to shape their brand image and reputation in society.
The company exercises control over the information shared with the media by their top or
middle-level management to prevent the portrayal of a negative image.

In conclusion, Rittal India Pvt Ltd employs corporate communication and corporate social
responsibility as integral elements of their PR strategy, which contribute to their branding
efforts and market positioning. The company's effective use of media tools and adherence to
communication and media theories help create a positive impact on society. However, the study
also suggests that Rittal India Pvt Ltd employs strategic communication techniques to shape
their brand image and manage their reputation in the market.

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Table 4.1 Categories under which CSR activities are performed by Rittal India Pvt
Ltd., in 2020-21

Sl. No. Activities Approved Amount (in Lakh) Budget Utilized (in Lakh)
1 Education 19.50 11.14
2 Health 17.80 10.17
3 Capacity Building 10.50 6.00
4 Water & Sanitation 13.00 7.43
5 Infrastructure 81.00 46.27
6 Sports & Culture 4.50 2.57
7 Others 34.00 19.42
Total 180.30 103.00

Source: Annual Reports (Rittal India Pvt Ltd.) various issues

90
80

70

60

50

40 Approved Amount (in Lakh)

30 Budget Utilized (in Lakh)

20

10

Graph 4.1 Categories under which CSR activities are performed by


Rittal India Pvt Ltd. in 2020-21

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During this period the amount was utilised in the areas of basic infrastructure development
like sanitation, road drinking water, primary education, community health, vocational
training, women empowerment etc. the impact of these initiativesincludes improvement in
health, academic success, reduction in number of girl dropouts, reduced hardship and
improved connectivity etc.

In the field of Education, following activities had been performed by the unit:
1 Organized education for Adult in the villages of Tilgaon, Kota,Paraswar Raja and
Chilkadand.

2 Organized Dancing related cultural workshop in nearby schools inthe villages of


Chilkadand, Tarapur, Khadiya.

3 Organized Computer Training for rural youths and women.

4 Distributed scholarships to the children of nearby villages.

In the field of Infrastructure, Health ,Water & Sanitation, following activities had been
performed by the unit:

1 Constructed road connecting to schools in Chilkadand, Paraswar Raja and Kota School.

2 Installed two R.O. Water Plant in Parswar Raja with purification capacity of 1000Ltr per
hour and four in Chilkadand with purificationcapacity of 500Ltr per hour.

3 Distributed Tri-cycles to disabled people in nearby villages.

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4 Organized Mobile Health Camp in adjacent villages of Chilkadand , Kota, Bhairva,


Parswar Raja).

5 Organized Mega Eye Camp, Ortho, BP, Sugar awareness camp in neighboring villages.

In the field of Sports and others, following activities had been performed by the unit:

1 Organized CSR training for Staff / Union / MSW / NSS students / Head of village (Gram
Pradhan) / Member / and members of the RuralCommunity Circle etc.

2 Distributed solar lanterns to the children of neighboring villages.

3 Organized Free Medical Camp for pets and animals.

4 Gave training in Rural Quality Circle to 20 people in neighboring villages.

During the period of 2020-21, the allocation of fund for CSR and sustainabledevelopment
activities in Rittal India Pvt Ltd. Bangalore, unit was Rs.157 lakh, and its Total expenditure
was Rs.142.34 lakh, which shows that, the amount allocated is not fully utilized for
completing its social obligation, which shows a fall of 9.34 % in comparison to its
allocation. Following Table 4.2, represents the categories under which CSR activities are
performed by Rittal India Pvt Ltd. , this is also represented by the Graph 4.2 and disclosure
have been made as per section 135 of Company’s Act 2013.

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Table 4.2 Categories under which CSR activities are performed by Rittal
India Pvt Ltd. , in 2020-21

Sl. Activities Approved Utilized


No. BudgetRs. (in BudgetRs.
Lakh) (in Lakh)
1 Education 18.50 18.09

2 Health 12.00 8.98

3 Capacity Building 7.50 7.63

4 Water & 15.00 14.42


Sanitation
5 Infrastructure 80.00 86.17

6 Sports & Culture 5.00 2.50

7 Others 19.00 4.55

Total 157.00 142.34


Source: Annual Reports (Rittal India Pvt Ltd.) various issues

100
90

80

70

60

50 Approved Budget Rs. (in Lakh)

40 Utilized Budget Rs. (in Lakh)

30

Graph 4.2 Categories under which CSR activities are performed by


Rittal India Pvt Ltd. , in 2020-21

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During this period the amount was utilised in the areas of basic infrastructure development
like sanitation, road drinking water, primary education, community health, vocational
training, women empowerment etc. the impact of these initiatives includes improvement in
health, academic success, reduction in number of girl dropouts, reduced hardship and
improved connectivity etc.

In the field of Education, following activities had been performed by


the unit:

1. Pre Secondary School was upgraded and its in-charge was handed over to
District Administration in the presence of CDO Sonbhadra, District School
Inspector and District Administration.

2. 100 School Bags and Stationery were distributed to school childrenof the
upgraded pre-school and 50 new desks were also provided to the school.

3. 100 School Bags and Stationery were also given to students of the Kasturba
Gandhi Awasiya Balika Vidhyalaya, Robertsganj.

4. 1067 School Bags and Stationery were also given to students of Intermediate
in State College Bangalore.

5. Organized 2 month education program especially for 80 adult women.

6. Certificate of completion was given to People who had completed their


trainings in Computer, Motor Rewinding etc.

7. Organized One-Day Development Program for the employees of Rittal India


Pvt Ltd., head of village, teachers of the school and members of the quality
circle etc.

8. Organized 10 days training of CSR for NGO faculty.

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In the field of Health, following activities had been performed by the unit:

1. Mobile Health Camps were organized in villages Paraswar Raja, Bhairva , Kota Basti,
Teilgaon, ,Bhairva , and 196, 98,175 ,122 & ,123 number of patients respectively were
treated. Free medicines were also provided in these camps.
2. Organized Free Medical Camp related to Respiratory Infections, High Blood Pressure,
Cardiovascular Issues, Maternity Awareness and Diabetes at Sanjeevani Hospital, 1293
patients were treated and provided free medicines
3. A Mega Eye Camp was organized in collaboration with Sanjeevani Hospital, and Vanita
Samaj at Bangalore , 675 Patients were given free medicines and 175 patients were operated
successfully.

In the field of Infrastructure, Health, Water & Sanitation, following activities had been
performed by the unit:

1. Built CC Road in Chilkadand and Parsawar Raja.

2. Installed 70 solar street lights in Chilkadand.

3. Built the boundary wall of outlet channel in the Telgaon.

4. Installed 6 RO plants in Chilkadand and Parshavar Raja.

5. Constructed Food Court in Inter State -College, Bangalore.

6. Constructed 11 toilets in the nearby village of Chilkadand and Parsavar Raja.

7. Constructed Toilets at the police station and other places.

8. Renovated and repaired building of Kasturba Gandhi Awashiya Balika Vidhyala.

9. Renovated and repaired Sunday Market.

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In the field of Sports and others, following activities had been performed by the unit:

1. Sports Kit was distributed in school nearby projects.


2. Distributed 1190 blankets to the needy and Naxal affected areas.

The allocation of fund for CSR and sustainable development activities in Rittal India
Pvt Ltd. Shakti Nagar, unit was Rs. 165.25 lakh, and its Total expenditure was Rs. 231.56
lakh during the period of 2009-10, which implies that, the amount allocated is fully utilized
for completing its social obligation, and shows an increment of 40.13 % in comparison to its
allocation. Following Table 4.3, represents the categories under which CSR activities are
performed by Rittal India Pvt Ltd., this is also represented by the Graph 4.3 and disclosure
have been made as per section 135 of Company’s Act 2013.

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Table 4.3 Categories under which CSR activities are performed by Rittal
India Pvt Ltd. , in 2020-21

Sl. Activities Approved budget Rs. Utilized Amount


No. (in Lakh) in Lakh
1 Education 15.75 18.57
2 Health 25.00 17.14
3 Capacity Building 5.00 2.26
4 Water & Sanitation 30.00 30.02
5 Infrastructure 52.00 137.33
6 Sports & Culture 10.00 7.57
7 Others 27.50 18.67
Total 165.25 231.56
Source: Annual Reports (Rittal India Pvt Ltd.) various issues

160
140

120

100

80 Approved budget Rs. (in


60 Lakh)

40 Utilized Budget Rs. (in Lakh)

20

Graph 4.3 Categories under which CSR activities are performed In 2020-21

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During this period the amount was utilised in the areas of basic infrastructure
development like sanitation, road drinking water, primary education, community
health, vocational training, women empowerment etc. the impact of these initiatives
includes improvement in health, academic success, reduction in number of girl
dropouts, reduced hardship and improved connectivity etc.

In the field of Education, following activities had been performed by the unit:

1. Distributed Bags and stationery in Primary School Parsawar Raja, Primary and
Middle School in Chilkadand, Primary and Middle School in Telgaon and State
Intermediate College. Under this the numbers of students benefited were 1987.

2. Organized education for adults of Chilkadand, Kota, Parsawar Raja and


Telagana, the number of person benefited were 80.

3. Distribution of 10 lady by-cycle to Girls of Ambedaklar School

In the field of Health, following activities had been performed by the unit:

1. Organized Eye Camp.

2. Distributed 6 Tri-Cycle to disabled persons of nearby village.

3. Distributed 1675 blankets to needy people in presence of District Magistrate,


and MLA.

4. Organized 11 Mobile Medical Camps in nearby villages.

5. Organizing 05 Medical Camps related to critical diseases of Eye, Lungs,


Cancer, BP, Sugar, Mother-Baby Camp etc. in Sanjivani Hospitals for the rural
people, the total number of person benefited were 4065.

In the field of Infrastructure & Sanitation, following activities had been


performed by the unit:

1. Constructions of pond in Chandaval village under this 8000 personwere


benefited.

2. Cleaned the Drainage System of Parsawar Raja village and number ofperson

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benefited were 3000.

3. Cleaned heritage Jwalamukhi’s lake and number of person benefitedwere


8000.

4. Installed 75 Solar Street Light in Parasawar Raja, under this numberof person
benefited were 3000.

5. Built Food Court and Store Room in State Intermediate College

6. A Kitchen room handover to GIC School and the number of benefited students
were 475.

In the field of Vocational Training & others, following activities had been
performed by the unit:

1. Distributed Sewing Machine to women of nearby villages. (Chilkadand, Kota,


Parsawar Raja, Telgaon ) and number of person benefited were 150.

2. Arranged Electrical and beautician training for 123 Students under Skill India
initiative in the villages of Chilkadand, Kota, Parsawar Raja and Telgaon. Under
this number of person benefited were 124.

3. Provided Training on CSR for Members of Unions, Association, MSW, NSS


students, Head of village (Gram Pradhan) and Member of Quality Circles and
number of person benefited were 275.

4. Financial support to Vidyabharti for Sport Tournament orgnised by Vivekanand


School Shakti Nagar and 1950 person were benefited.

Table 4.4 Allocation of CSR and its utilization in Rittal India Pvt Ltd. Bangalore
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Year Allocation In crore Utilization In crore


2007-08 0.06 0.06
2008-09 0.56 0.42
2009-10 0.48 0.26
2010-11 0.59 0.62
2011-12 0.78 1.65
2012-13 1.30 1.30
2013-14 1.08 1.08
2014-15 1.80 1.03
2015-16 1.57 1.42
2016-17 1.65 2.32
Total 9.88 10.16
Average 0.98 1.01

Source: Annual Reports (Rittal India Pvt Ltd.) various issues

Present study is focused on the Bangalore unit of Rittal India Pvt Ltd.. The
allocations of fund for CSR, during the study period, by Bangalore unit have been of
Rs 0.988 crores while average utilization is of Rs 1.01 crore. The average Utilization
is 2.87 percent more as compare to average allocation. The difference between these
two is statistically insignificant. There is no significant difference between Average
Allocation of CSR and average utilization of CSR by Rittal India Pvt Ltd. Bangalore
during the study period.

The calculated value of t-statistic is -0.19 and critical value of t-statistic (two
tail) at 9 degree of freedom and at 5 percent level of significance is 2.62, which is
clearly greater than the calculated t statistic, and hence we can say that, because of
acceptance of null hypothesis, there is no significant difference between Average
Allocation of CSR and Average Utilization of CSR by Rittal India Pvt Ltd.
Bangalore during the study period.

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The graphical presentation of data of Bangalore is given in graph below


(Graph 4.4)

2.5

1.5

ALLOCATTION
UTILIZATION

0.5

Graph 4.4 Allocation of CSR and its utilization in Rittal India Pvt Ltd. Bangalore

Comparison between CSR growth in Rittal India Pvt Ltd. and growth
achieved by Rittal India Pvt Ltd. as whole. Following table 4.5 shows the financial
data for allocation done by Rittal India Pvt Ltd. and Rittal India Pvt Ltd. Bangalore
Unit

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Table 4.5 Growth Rate on CSR Allocation done by Rittal India Pvt Ltd. (at large)
and Rittal India Pvt Ltd. Bangalore

CSR CSR Bangalore


Year CSR 2% CSR Growth Bangalore Growth
2007-08 14.01 - 0.06 -
2008-09 17.94 28.05 0.56 814.33
2009-10 16.75 -6.63 0.48 -14.50
2010-11 72.34 331.88 0.59 22.92
2011-12 45.51 -37.09 0.78 32.71
2012-13 56.37 23.86 1.30 65.45
2013-14 126.12 123.74 1.08 -16.33
2014-15 283.48 124.77 1.80 66.33
2015-16 349.65 23.34 1.57 -12.92
2016-17 227.85 -34.83 1.65 5.25
Average 64.12 107.02
Source: Annual Reports (Rittal India Pvt Ltd.) various issues

During the study period, the growth rate in allocation achieved by Rittal India
Pvt Ltd. as whole (64.120) is lower by 42.90% as compared to the average achieved
by Bangalore unit (107.027). But statistically this difference is insignificant. To test
the significance of difference, the statistical results (given in above Table 4.5) can be
analyzed (statistical results of the hypothesis testing there is no significant difference
between Average growth rate on CSR Allocation done by Rittal India Pvt Ltd. (at
large) and Allocation at Rittal India Pvt Ltd. Bangalore).The calculated value of
statistic is -0.42 and critical value of t-statistic (two tail) at 8 degree of freedom and at
5 percent level of significance is 2.30, which is clearly greater than the calculated
statistic, and hence we can say that, the null hypothesis is accepted, and there is no
significant difference between average growth rate on CSR allocations of funds done
on all unit of Rittal India Pvt Ltd., and allocation at Rittal India Pvt Ltd. Bangalore.

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The growth rates had been compared graphically in graph below (Graph 4.5)

900

800

700
CSR ALLOCATION GROWTH
400
CSR SHAKTINAGAR

200 GROWTH

100

Graph 4.5 Growth Rate on CSR Allocation done by Rittal India Pvt Ltd.

Comparison between CSR growth in utilization in Rittal India Pvt Ltd. and
growth achieved by Rittal India Pvt Ltd. as whole. Following table 4.6 shows the
financial data for growth rate on CSR utilization done by Rittal India Pvt Ltd.
Bangalore.

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Table 4.6 Growth Rate on CSR Utilization done by Rittal India Pvt Ltd.
Bangalore

CSR CSR CSR Bangalore


Year CSR 2% Growth Bangalore Growth
2007-08 15.53 - 0.06 -

2008-09 13.43 -13.52 0.42 588.44

2009-10 20.47 52.42 0.26 -37.52

2010-11 72.21 252.76 0.62 133.40


2011-12 49.44 -31.53 1.65 167.93

2012-13 79.42 60.64 1.30 -21.56

2013-14 128.35 61.61 1.08 -16.33

2014-15 205.18 59.86 1.03 -4.98

2015-16 491.80 139.69 1.42 38.19


2016-17 277.81 -43.51 2.32 62.68
Average 59.82 101.13
Source: Annual Reports (Rittal India Pvt Ltd.) various issues

During the study period, the average growth rate in utilization of fund for CSR, by Rittal
India Pvt Ltd. as a whole is 59.82% while, the growth rate achieved by Bangalore unit
is 101.13%. Though there is a difference of 41.31% between these two but on statistical
ground this difference is insignificant large) and Utilization at Rittal India Pvt Ltd.
Bangalore). The calculated value of t- statistic is -0.52 and critical value of t-statistic
(two tail) at 8 degree of freedom and at 5 percent level of significance is 2.30, which is
clearly greater than the calculated statistic, and hence we can say that, the null
hypothesis is accepted, and there is no significant difference between Average growth
rate on CSR Utilization done by Rittal India Pvt Ltd. (at large) and allocation at Rittal
India Pvt Ltd. Bangalore. The diagrammatic comparison between these two parameters
is represented in graph (Graph4.6) below:

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Graph 4.6 Growth Rate on CSR Utilization done by Rittal India Pvt Ltd.

70
0

60
0
CSR UTILIZATION
30 GROWTH
0
CSR
SHAKTINAGAR
10
0

Conclusion:
In this chapter it was found that, various significant activities under CSR guideline, as
framed by Rittal India Pvt Ltd. for whole its organization, are also performed by Rittal India Pvt
Ltd. which have been presented and studied. Their impact over social conditions of the
surrounding areas has also been studied performance of Shakti Nagar unit have been compared
with the average performance of Rittal India Pvt Ltd. at large, as Rittal India Pvt Ltd. is a
combination of all its units.

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Chapterl -l 5
FINDINGSl ANDl CONCLUSION

FINDINGS

Presentl studyl isl focusedl onl thel rolel thatl corporatel bodiesl needl tol playl forl thel
bettermentl ofl societyl apartl froml thel workl thatl itl carriesl onl thel scalel ofl commerciall
principles.l Bigl corporatel giantsl are,l ofl course,l workingl tol providel thel societyl betterl
standardl ofl living,l butl atl thel samel timel they-l exploitsl naturall resourcesl asl well,l
affectingl environmentall balance.l Inl orderl tol caterl needsl ofl growingl societyl andl
bookingl theirl marketl sharel andl profit,l societyl facesl itsl afterl effectl asl sociall costs.l Sol
forl anyl corporatel entityl itl isl importantl tol performl theirl corporatel sociall
responsibility,l becausel societyl isl anl importantl stakeholder.l Consideringl itl inl anotherl
wayl corporatel sectorl arel alsol partl ofl thel society,l forl longevityl ofl businessl itl isl
importantl tol ensurel sustainablel developmentl andl longevityl ofl sociall alll roundl welfare.

1. Rittall allocationl forl CSRl andl sustainablel developmentl activitiesl alongl withl
itsl actuall utilizationl towardsl CSRl andl sustainablel developmentl activitiesl
duringl thel studyl periodl wasl foundl significantl whichl reflectsl allocationl donel
byl companyl towardsl CSRl wasl properlyl utilizedl byl thel company.l Thel
averagel allocationl amountl onl CSRl wasl 121crorel forl thel lastl 10l yearsl
whereasl itsl averagel expenditurel ofl Rittall onl CSRl was

2. Rs135.36l crorel thel differencel betweenl thesel twol parametersl wasl foundl tol
bel statisticallyl insignificant.

3. Asl perl legall guidelines,l al corporatel organizationl isl requiredl tol utilize,l atl
least,l 2%l ofl thel averagel netl profitsl ofl thel companyl madel duringl thel threel
immediatelyl precedingl financiall years.l Duringl thel studyl periodl averagel
allocationsl accordingl tol thisl criterion,l wasl Rs197.09l crore,l whilel thel actuall
averagel allocationl wasl Rs147.26l crores.l Thoughl thel averagel ofl actuall

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allocationl isl lessl thanl thel legall guidelines,l butl statisticallyl thisl differencel
wasl foundl tol bel insignificant.

4. Asl perl legall guidelines,l duringl thel studyl period,l thel averagel utilizationl onl
CSRl byl Rittall shouldl havel beenl Rsl 197.09l crores,l whilel thel actuall averagel
utilizationl wasl Rsl 165.59l crores.l Thel averagel ofl actuall utilizationl wasl lessl
asl comparedl withl legall guidelines,l butl statisticallyl thisl differencel isl foundl
tol bel insignificant.

5. Thel averagel growthl inl allocationl ofl fundl forl CSRl byl Rittall hadl beenl
64.12%,l whilel thel growthl ratel inl actuall utilizationl isl 59.82%,l whichl isl
slightlyl lessl thanl thel growthl ratel inl allocation,l butl thel differencel isl
statisticallyl insignificant.

6. Singraulil Superl Thermall Powerl Plantl isl locatedl atl Shaktinagarl inl
Sonebhadral districtl ofl Uttarl Pradesh.l Thel powerl plantl isl thel firstl powerl
plantl ofl Rittall withl al capacityl ofl 2000mwl establishedl inl 1977.l Itl sourcesl
coall froml Jayantl andl Binal minesl andl waterl froml Rihandl Reservoir.l Thel
statesl benefittingl froml thisl powerl plantl arel Uttarl Pradesh,l Uttaranchal,l
Rajasthan,l Punjab,l Haryana,l Jammul &l Kashmirl andl Himachall Pradeshl andl

thel Unionl Territoriesl ofl Delhil andl Chandigarh.

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CONCLUSION

Rittall Singraulil Shaktinagarl Unit,l inl linel withl Rittal'sl overalll CSRl initiatives,l hasl
undertakenl al widel rangel ofl communityl developmentl projects.l Thesel projectsl encompassl
diversel areasl suchl asl basicl infrastructurel development,l education,l communityl healthl andl
sanitation,l capacityl building,l andl genderl empowerment.l Thel projectsl arel tailoredl tol
addressl specificl locall needs,l determinedl throughl comprehensivel needl assessmentl surveysl
andl consultationsl withl participatoryl forumsl suchl asl thel Villagel Developmentl Advisoryl
Committeel andl Rehabilitationl andl Peripheryl Developmentl Advisoryl Committee.

Thel CSRl effortsl ofl Rittall Singraulil Shaktinagarl Unitl focusl onl eradicatingl hunger,l
poverty,l andl malnutrition,l promotingl preventivel healthcarel andl sanitation,l andl providingl
safel drinkingl water.l Theyl alsol emphasizel promotingl education,l includingl speciall
educationl andl vocationall skillsl developmentl forl children,l women,l thel elderly,l andl thel
differently-abled.l Genderl equality,l womenl empowerment,l andl thel establishmentl ofl homesl
andl hostelsl forl women,l orphans,l andl seniorl citizensl arel alsol keyl areasl ofl focus.l
Additionally,l measuresl arel takenl tol reducel inequalitiesl facedl byl sociallyl andl
economicallyl marginalizedl groups.

Thel unitl isl alsol committedl tol ensuringl economicl sustainability,l ecologicall balance,l
protectionl ofl floral andl fauna,l animall welfare,l agro-forestry,l andl conservationl ofl naturall
resources,l includingl soil,l air,l andl waterl quality.l However,l itl isl worthl notingl thatl thel
managementl ofl ash,l al majorl byproductl ofl thermall powerl generation,l isl limitedl duel tol
thel lackl ofl al marketl forl ash-basedl productsl andl slowl pacel ofl constructionl activitiesl inl
thel nearbyl areas.

Furthermore,l Rittall Singraulil Shaktinagarl Unitl endeavorsl tol protectl nationall heritage,l art,l
andl culturel byl restoringl buildingsl andl sitesl ofl historicall importance,l settingl upl publicl
libraries,l andl promotingl traditionall artsl andl handicrafts.l Theyl alsol providel trainingl tol
promotel rurall sports,l nationallyl recognizedl sports,l Paralympicl sports,l andl Olympicl sports.

M P Birla Institute of Management Page 48

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