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With the enactment of new Companies Act, 2013 and the rules framed there under by the Central Government during February, 2014 the mandatory provisions of the Corporate Social Responsibility (CSR) Policy have been formally introduced for its adherence by all the Indian Companies which fulfills the criteria as envisaged under Section 135 of the Companies Act, 2013. The Ministry of Corporate Affairs has also issued guidelines indicating various activities to be undertaken by a Company under CSR _ vide notification No. 1/15/2013 - CL-V dated:27.2.2014 which shall come into force w.e.f 01.4.2014. In this background, it is necessary to respond to this reform measures undertaken by the Government.

The Mission of KS&DL

Karnataka Soaps and Detergents Limited has a clear vision for alround development of Company. The VISION — 2014 sets the goal and suggests the strategies and plans necessary to achieve the vision. The vision of the KS&DL is embodied in the following statement.

“The vision of KS&DL will leverage latest soap manufacturing technology and information technology by imbibing professional management techniques to improve its functional activities, Transparency, Business and to transform itself into a modern professional organization in the Fast Moving Consumer Goods (FMCG) market in India and also to spread its fragrance in the FMCG Global Market.”

The CSR commitment of KS&DL positions its social and environmental consciousness as an integral part of its business plan and its commitment to all its stake holders including consumers, shareholders, employees, local communities and the society at large.

Policy Statement

The CSR Policy of KS&DL aims to achieve, consolidate and strengthen Good Corporate Governance including socially and environmentally responsible business practices that balance financial profit with social well being. The KS&DL is committed to the well being of the local communities and the society at large.

To pursue CSR programs primarily in the areas that fall within the economic vicinity of the Company’s operations to enable close supervision and ensure maximum development impact and to develop the required capabilities and self reliance of beneficiaries at the grass roots, especially women and children, in the belief that these are the prerequisites for social and economic development.

Goal & Objectives

The overall goal is to promote sustainable and inclusive development as a Responsible Corporate Citizen. This goal will be achieved through the following broad Objectives:

(a) Comprehensive and integrated community development focusing on but not limited to communities most directly impacted by and in the vicinity of KS&DL and its Branch Office locations.

(b) Innovative and sustainable solutions for environmental conservation.

(c) Prioritization and all round integration of environmental and social issues into the planning, designing and implementation of infrastructure development.

(d) Improved access to formal, informal and vocational education with a focus on the under privileged and marginalized communities

(e) Contribution to national and local efforts for relief / rehabilitation in . times of natural disasters on a needs basis.

(f) Development and promotion of sporting talent.

(g) Ongoing promotion of healthy and safe workplaces and well being of contractual workers.

(h) Active participation in disaster management initiatives for prevention and emergency response based on the comparative strength of the KS & DL.

Activities / Areas of focus under CSR

The Company has drawn its areas of focus under CSR schemes within overall provisions of the act and activities covered under schedule VII thereto inter-alia covering:

  1. a) Literacy / education/ cultural development
  2. b) Safe drinking water/health/sanitation
  3. c) Skill development for sustainable income generation and livelihood
  4. d) Ensure environment sustainable and agro forestry.
  5. e) Eradicate hunger, poverty and malnutrition.
  6. f) Promote gender equality and empowering women
  7. g) Old age homes/day care centres for senior citizens and orphans
  8. h) Promotion of use of non- conventional energy
  9. i) Promote water harvesting and its conservation measures.
  10. j) Assistance to handicapped and mentally challenged children and under privileged children in the society.
  11. k) Promote awareness programme against social evils such as alcoholism, aids etc, and to spread awareness of legal rights and responsibilities.
  12. l) Assistance to the victims of natural calamities such as floods, earthquake epidemics etc.
  13. m) Promotion of cultural social and sports activities.
  14. n) Protection of national heritage, art and culture and public libraries.
  15. o) Promote rural development projects such as roads, bridges, community halls and other civic amenities.

The activities / focus areas as above are only illustrative and not exhaustive, any other items not covered under the above heads but failing within the provisions of the companies act will be added as and when needed in future.

Applicability of CSR and Constitution of a Committee

Every Company having net worth of Rs.500 crore or more, OR turnover of Rs.1000 crore or more OR a net profit of Rs.5 crore or more during any financial year shall constitute a CSR Committee of the Board and also includes its holding or subsidiary and a Foreign Company having its branch or project office in India. The Corporate Social Responsibility functions of KS&DL will be co-ordinated and monitored by a CSR Committee to be constituted under the aegis of Chairman, KS&DL. Accordingly, the CSR Committee consisting of the following Members has been constituted by the Chairperson of KS&DL in consultation with the senior Management as under


Sri. Mahesh B. Shirur, IFS, Managing Director



Sri. L. Chandrashekar Nayak, IAS, Director on the Board



Smt. N. R. Jaganmatha, Director on the Board


The CSR Committee will;

  1. a) Formulate and recommend to the Board a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the Company as specified in Schedule VII of the Companies Act, 2013.
  2. b) Recommend the amount of expenditure to be incurred on the activities referred to in clause (a); and
  3. c) Monitor the Corporate Social Responsibility Policy of the Company from time to time.

Project Monitoring Unit / Organizational Mechanism

The Company has constituted a Project Monitoring Unit consisting of the following Executives of the Company as under:-


General Manager (Finance)



General Manager (P&M)



General Manager (Marketing)


The amount released under CSR will be monitored by this unit at regular intervals and submit its report considering both physical and financial progress in implementation of projects / programmes / activities to the CSR committee.


The Board duly considering the recommendation of the CSR committee shall approve CSR policy of the Company and will disclose the contents of the policy in its report to members and also on the Company’s website. The Board shall also ensure that the activities included in CSR policy are under taken by the Company during the relevant financial year for its implementation within the overall policy and provisions of Companies Act thereto.

Accordingly, the issue relating to the formulation of CSR policy was discussed in the 224th & 225th meeting of Board of Directors held on 29th March 2014 & 28t October 2014 respectively and after detailed deliberation, the Board approved the CSR policy of KS&DL and the registration of CSR Trust of KS&DL of Juridical of Sub registrar.

Allocation of Funds

The following modus-operandi shall be followed in the allocation of funds :

  1. a) The CSR Budget, which shall be 2% percentage of net profit after tax of the organization in the previous financial year, as per the MCA Guidelines on CSR, shall be got approved by the KS & DL Board.
  2. b) The said amount shall be transferred to a newly created Non- lapsable Fund of KS&DL, from where funds will be transferred to the account of those Organizations contracted for implementation including specialized agencies Based on the proposed and approved annual plan for the activities undertaken by them
  3. c) The CSR Committee will be responsible for coordinating necessary audits and other compliances of all the CSR activities through the engagement of experts.
  4. d) Money unutilized, if any, in the previous year will be carried forward and included in the budget for the next year.

CSR Governance and Expenditure

  1. Every year the CSR and Project Monitoring Committee will place for the Board’s approval, a CSR plan delineating the CSR programs to be carried out during the financial year and the specified budgets thereof. The Board will consider and approve the CSR plan with any modification that may be deemed necessary.
  2. The persons/bodies to which the implementation is assigned will carry out such CSR programs as determined by CSR Committee within the specified budgets and timeframes and report back to the CSR committee on its progress thereon at such frequency as the CSR Committee may direct.
  3. The Project Monitoring unit shall review the implementation of CSR programs once a quarter and issue necessary directions from time to time orderly and efficient execution of CSR Programs in accordance with this policy.
  4. At the end of every financial year, the CSRS. The expenditure
    modality will be as follows:-
  5. Advance payment will be made to implementing organizations for initiating project implementation after the receipt of bank guarantee equivalent to the advance amount. Subsequent installments will be transferred as per agreed terms on submission of funds utilization certificate to CSR Committee. The CSR Committee will approve release of the next installments after reviewing the programmatic progress as per agreed timelines and deliverables.
  6. The CSR fund will be maintained and it would be the responsibility of the project incharge to submit the monthly MIS to the CSR Committee regarding the expenditure and the progress of the project.
  7. The project implementing authority will be authorized to incur expenditure equivalent to the amount determined by the KS&DL .
  8. after the recommendation by the CSR committee, the in-principle approval will be conveyed to the concerned KS&DL office within 10 working days for starting the Implementation.
  9. CSR expenditure shall include all expenditure, direct and indirect incurred by the Company on such CSR Programs undertaken in accordance with the approved CSR plan. Any surplus arising from any CSR Programs shall be used for CSR. Accordingly, any income arising from CSR programs shall be netted off from the CSR expenditure and such net amount will be reported as CSR expenditure.

Broad guidelines for consideration of the proposal and approval of CSR projects/ programmes and activites.

1) Individual proposals have to be within the framework of the CSR Projects / programmes / activities.

2) Every CSR proposal has to be projectised, inter-alia covering its activities, time frame, financial requirements, organizational responsibilities outcome/excepted result and sustainable aspects.

3) Appropriate financial powers will delegated to the CSR committee for consideration, approval release of funds under the overall frameworks of CSR policy.

4) The phase wise release of funds will be clearly defined in the proposal to ensure proper utilization and submission of periodical progress reports of both physical and financial programmes/ projects/ activities.

5) The release of funds will be phased out in installments for the project programme/ activities with initial disbursement of 1/3 of amount approved by the Board.

6) So as to enforce commitment on the part of the promoters of the project, it is necessary to bring 10% of the project cost by promoters themselves or by the supporting project for consideration/approval on the proposal of contribution under CSR by HGML. In the case of the projects/programme in the medical sector, the benefits of treatment of employees/dependents n concessional rates will be explored, and required understanding put in place for its usage.

7) The projects sanctioned under CSR may be named after KS&DL wherever applicable, and necessary plaques in this regard will be put up by the projects concerned.

Implementation Strategy

The CSR projects/activities shall be implementred in three ways as under:-

  1. Directly by KS&DL.
  2. Through NGOs/ Voluntary Organizations/ Trusts
  3. Through concerned State / District Authorities.


In addition to the continuous monitoring of the activities by a separate Project Monitoring Unit, all the CSR activities and expenses incurred in connection with implementation of plans/programs under CSR activities of the Company will be subject to audit by the Company Auditors.


The CSR policy of the Company as enumerated above is only illustrative in nature and will be amended from time to time to be in line with the overall applicable provisions of Companies Act as amended from time to time and Rules framed there-under.

Last Updated: 08-03-2021 11:32 AM Updated By: KSDL Approver

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