Corporate Social Responsibility

Preamble

The Company’s (Avon Cycles Limited) CSR initiatives are inspired by the opportunity to contribute towards sustainable future and its nourishment. The Company’s corporate strategy ensures inculcating social developments as an integral part of its business enterprise and to contribute to make substantial improvements in the social framework of the nearby community.

Definitions

  • Act” means the Companies Act, 2013 and Rules framed thereunder;
  • “Company” The words “This Company”, “The Company”, “Company” wherever occur in the policy shall mean “Avon Cycles Limited”.
  • “Corporate Social Responsibility (CSR)” means and includes but is not limited to :-
    (i) Projects or programs relating to activities specified in Schedule VII to the Act; or
    (ii) Projects or programs relating to activities undertaken by the Board of Directors of the Company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the Company subject to the condition that such policy will cover subjects enumerated in Schedule VII of the Act.
  • “CSR Committee” means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act.
  • “CSR Policy” relates to the activities to be undertaken by the Company as specified in Clause of ‘Focus Areas’ of this policy or Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company.

Interpretation

Words and expressions used and not defined in this Policy shall have the same meaning assigned to them in the Companies Act, 2013 or rules made thereunder and any other Guidelines/ Regulation(s) promulgated by other statutory authorities and any amended(s) thereto from time to time.

Establishment

Incorporated in 1951, Avon Cycles Limited is AVON Group’s flagship company. It is a family business promoted by the house of Pahwas. Sh. Onkar Singh Pahwa of the second generation leads the team as Chairman and Managing Director; sons Rishi Pahwa and Mandeep Pahwa assist as Directors.

Work

Within the Group, they make almost all parts for their bicycles. The bicycle facility is spread over a land site 145,000 square meters, producing two million numbers annually; most modern plants and machinery systems, comparable to the best in the world, are employed. The company distinguishes itself as the Largest Manufacturer Exporter from India. It has enjoyed such status for several years in a row.

CSR Initiatives

Alive to its CSR the company supports and runs Mata Kaushalya Devi Pahwa Charitable Trust in the home city’s rural neighbourhood.

Some key tips to consider:

  • Strive to be authentic – do not try to be a company you are not. Be honest. You will gain much greater respect if you are candid.
  • Solicit support from all internal departments and consider creating an employee task-force representing many facets of the business. Employees will want to help and contribute if it’s supported from the top of the organization.
  • Create a list of your company’s sustainability commitments. Doing so will enable you to map your strategy going forward. These will be your guiding principles.
  • Create means for measurement and reporting. Develop key performance indicators (KPIs) to track and set up a timeline so as to be consistent in reporting.
  • Consider engaging a communication firm that specializes in CSR.
  • Continue to fine-tune and evolve your strategy and consider trying some of the very innovative new CSR communications platforms that exist on the market today.
  • The corporate responsibility to respect human rights, meaning that companies should avoid infringing on the rights of others and address negative impacts with which they are involved; and
  • The need for greater access to effective remedy for victims of business- related human rights abuses, through both judicial and non-judicial means.

This CSR policy is applicable to AVON Cycles Limited as it is mandated with CSR expenditure obligation as per section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended from time to time.

Eradicating Extreme Hunger & Poverty:
  • Providing food to disaster hit areas
  • Providing mid day meals to schools
Promotion of Education:
  • Financial assistance for construction of hostels, school buildings, classrooms etc.
  • Providing furniture/ computers/ laboratory equipments to schools
  • Scholarships to meritorious students
  • Girl child education
Ensuring Environment sustainability:
  • Tree plantation
  • Rain water harvesting
  • Anti insects fogging treatments in villages
Social business projects:
  • Adoption of villages
  • Providing sanitation facilities/ Toilets
  • Providing drinking water
  • Arranging mass marriages
  • Widow re-marriage
  • Homes for homeless
  • Installation of hand pumps/ bore wells/ submersible pumps
  • Construction of elevated water tanks
  • Providing water tap connection
  • Providing water coolers/ aqua guards/ water purifiers etc. to schools/ community
Combating HIV/ AIDS and other diseases (Preventive health care):
  • Organizing medical camps/ eye care camps/ pulse polio camps/ blood donation camps etc.
  • Providing medicines to poor
  • Mobile clinics
  • Providing ambulance to medical centres
  • Providing wheel chairs to poor patients
  • Providing financial assistance to hospitals
  • Opening health care centres
  • Providing camps/ medical services in disaster hit areas
  • Eradicating hunger, poverty and malnutrition, promoting preventative health care and sanitation (including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation) and making available safe drinking water;
  • promoting education including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects
  • promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and other such facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups
  • ensuring environmental sustainability, ecological balance, protections of flora and fauna, animal welfare, agro forestry, conversation of natural resources and maintaining quality of soil, air and water (including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga).
  • protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts
  • measures for the benefit of armed forces veterans, war widows and their dependents
  • training to promote rural sports, regionally recognized sports, Paralympics sports
  • contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women
  • contributions or funds provided by technology incubators located within academic institutions which are approved by the Central Government
  • rural development projects;
  • slum area development – where the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.

The implementation of the CSR policy and execution of projects, programmes and activities undertaken by the Company shall be carried out under the overall superintendence, control and guidance of the CSR Committee. The CSR Committee shall closely monitor such activities and may also further constitute internal monitoring groups and/or sub-committees for different projects, programmes and activities, as may be required from time to time. The minutes of the meetings of the CSR Committee shall be placed before the Board of Directors for their information. The Board of Directors shall have the power to make amendments, suggest new measures and/or otherwise amend the powers of the CSR Committee from time to time. The contents of the CSR policy as amended from time to time shall be disclosed in the Board’s Report and shall also be placed on the company’s website viz avoncycles.com

A Corporate Social Responsibility Committee has been constituted by the Board of Directors of the Company in pursuance of section 135, based on the results of preceding three years namely-2011-12, 2012-13 and 2013-14. This Committee comprises 3 Directors including one Independent Director.

  • Shri Onkar Singh Pahwa
  • Shri Rishi Pahwa
  • Shri B.D. Arora – Independent Director

Brief profile of the Members of this Committee is given as below:

Sh. Onkar Singh Pahwa (Chairman cum Managing Director) (DIN: 01189248)

Sh. Onkar Singh Pahwa is the Chairman cum Managing Director of Avon Cycles Limited. He holds the position of Managing Director at Avon Fitness Machines Pvt. Limited and is also a Director at Pahwa Estates and Holdings Pvt. Limited and Nimbua Greenfield (Punjab) Limited. He is graduate in the field of Arts. He has rich experience of 38 years in cycles industry. In addition, Sh. Onkar Singh Pahwa actively participate in social welfare activities and take various education development initiatives. He, with his family, make regular contribution to Kaushalya Devi Pahwa Trust which works for treatment of patients suffering from diseases or accidents; establish, promote, support and run medical and/or educational institutions and other establishments for giving medical relief and education to public.

Shri Rishi Pahwa (Whole time Director) (DIN: 00286399)

The Managing Director of Pahwa Estates & Holdings Pvt. Limited, Sh. Rishi Pahwa holds Bachelor’s degree in Commerce obtained from Punjab University. He handles areas of purchase and works in Avon Cycles Limited. He has considerable experience of 15 years in this industry.

Sh. B.D. Arora (Independent Director) (DIN: 03512551)

Sh. B.D. Arora, by profession, is an Advocate, working in independent capacity since long. He handles Labour Law matters alongwith allied laws.

The Board of the company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company under section 8 of the Act established by the company or otherwise:

Provided that:
  • If such trust, society or a company is not established by the company, it shall have an established track record of three years in undertaking similar programs or projects;
  • The company has specified the projects and programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism
Contribution to Corpus of a Trust/ Society/ section 8 companies etc. will qualify as CSR expenditure as long as
  • The Trust/ society/ section 8 companies etc. is created exclusively for undertaking CSR activities or
  • Where the corpus is created exclusively for a purpose directly relatable to a subject covered in Schedule VII of the Act.