CSR Policy

Shahi Exports Private Limited

Corporate Social Responsibility Policy, 2014-15

CSR Policy

Shahi Exports Private Limited

CONTENTS PAGE
1. About Shahi Exports Private Limited
2. Shahis approach to CSR
3. CSR under the Companies Act, 2013
4. Shahis CSR vision and focus areas
5. CSR expenditure for 2014-15
6. Modalities of execution for CSR projects
7. Governance
8. Monitoring and evaluation
9. Amendments

Annexure 1
Project details for 2014-15

CSR Policy

Shahi Exports Private Limited

1. ABOUT SHAHI EXPORTS PRIVATE LIMITED

Shahi Exports was established in 1974 and is the largest exporter of ready-made
garments in India, selling to buyers around the world. Headquartered in Delhi NCR,
with a strong base in Bangalore, we operate across 51 factories in six states and
produce 135 million garments per year. Over the years we have built a workforce of
1,00,000 who are at the heart of everything we achieve as a company. Our
principles/standards reflect our commitment to our people, and the value they bring
to our company:
Integrity and ethics
Respect for human values
Nurturing human talent
Continuous improvement
Customer delight

2. SHAHIS APPROACH TO CSR

2.1 Since our inception over 40 years ago, Shahi has been committed to being a
conscious manufacturer, steadily increasing our corporate responsibility. Over the
years we have strived to improve the lives of our workers, their families, the local
communities that surround us, and the environment we work in - creating shared
value across all our stakeholders. This is reflected in our approach to employment,
training, personal development, community interventions and environmentally
sustainable innovations.
We are also committed to upholding the values of our buyers around the world, and
work closely on creating working conditions and a value system that we can be
collectively proud of. Some of our most successful programmes have been
developed through our buyers and we continue to implement these programmes with
ongoing enthusiasm.
In recent years we have worked with researchers from world-class academic
institutions to better understand the human and business impact of our CSR and
responsible business initiatives. It is this constant drive to improve our performance,
and to understand the impacts of our actions that underpins Shahis attitude to
responsible practices.

CSR Vision: Championing conscious manufacturing

CSR Mission: Create pioneering programs that engage and
empower the Shahi community to build a better future

2.2 The Companies Act, 2013 has set out new parameters for Corporate Social
Responsibility (CSR) in India. It is the role of this Policy to align Shahis ongoing
responsible business initiatives with Section 135 of the Companies Act, 2013 and the
rules and notifications issued there under. This CSR Policy is for the financial year
2014-15.
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Shahi Exports Private Limited

3. CSR UNDER THE COMPANIES ACT, 2013

Under the Companies Act, 2013 (the Act), companies that meet certain prescribed
financial thresholds are required to invest at least two percent of the average net
profits of the company during the three preceding financial years in pursuance of its
CSR policy. CSR, under the Act, essentially means and includes development
programs or projects undertaken by a company in the thematic areas specified under
Schedule VII of the Act.
The Act also requires companies to constitute a CSR committee, formulate and
publish a CSR policy setting out projects undertaken by the company, file an annual
report on CSR activities in a prescribed format, and institute a transparent monitoring
mechanism for implementation of its CSR projects.

4. SHAHIS CSR VISION AND FOCUS AREAS

4.1 The apparel industry is the second largest employer in India after agriculture,
employing mostly women with little experience and education, and with limited
resources to conduct their household activities. Much of our workforce, their families,
and their communities fall into the Economically Weaker Section. It is this
community that guides our focus, and we have undertaken formal quantitative and
qualitative research to gather an evidence-based understanding of their needs, in the
pursuit of developing a truly co-created CSR strategy for Shahi. As such, our CSR
vision and focus areas are informed by the experiences of these workers and the
wider communities in which we operate, and on which we depend.
In addition, our 300-strong Human Resources team has a wealth of experience in the
on-ground realities of the communities in which we operate and the issues faced by
them. This knowledge is utilised to constantly refine our focus and activities.
4.2 Focus area: Womens Empowerment
More than 70 percent of Shahis factory workers are female, even though Indias
urban workforce is made up of only 13.8 percent women in total1. In this context,
womens empowerment and issues of gender have naturally become of critical
importance to us, and are perhaps the closest issue to our hearts and our business.
Within this focus area we strive to empower women through training, personal
development and awareness on social issues most relevant to women.
4.3 Focus area: Vocational Skills Development
As a people-powered company, developing skills and providing employment
opportunities has became another natural area for our social outreach. With a focus
on women, our activities in this area centre on providing technical and life skills to
those looking for employment in the garment industry, at no cost. We further strive to
create employment opportunities in our own factories wherever possible to close the
loop and create long-term livelihood opportunities.
4.4. Focus area: Health and Nutrition

Indiastat.com, "Workforce Participation Rate by Sex and Sector in India." 2010

CSR Policy

Shahi Exports Private Limited

Listening to the needs of our workers and community, health and nutrition has
become an important focus area for Shahi. Food security, access to healthy food,
and an understanding of health and hygiene are routinely cited as critical issues by
the beneficiaries of our CSR programmes, and so have become critical issues for us
too. Under this focus we address key, ongoing health issues such anaemia, we
provide food security programmes to disadvantaged communities, and we undertake
regular hygiene training sessions.
4.5 Focus area: Environmental Sustainability
Manufacturing in any industry has a necessary environmental footprint. With this top
of mind, we constantly strive to improve our environmental performance. Water, in
particular, is a critical resource in the garment industry and we are striving towards
becoming water-positive in the coming years, beginning with the implementation of a
major rain-water harvesting programme.

5. CSR EXPENDITURE FOR 2014-15

5.1 Shahi Exports will spend approximately INR 2,00,00,000 on CSR projects (refer
to Annexure 1) in 2014-15 in accordance with the Act.
In accordance with the provisions under the Act, the following activities are not
applicable for inclusion in Shahis reported CSR expenditure:
Projects or programmes or activities that benefit only the employees of the
company and their families;
Any activities undertaken in pursuance of the normal course of business of
the company;
Payments made as part of legal settlements, such as compensation, fines
and penalties; and
Core business activities that may have a community or societal benefit, for
example payment of taxes and royalties, and creation of employment.
Also, in accordance with the Act, any surplus arising out of the CSR projects or
programs or activities shall not form part of the business profit of Shahi Exports.
5.2 It is recognised by Shahi that some of the ongoing CSR activities we implement
in our factories and beyond will not qualify as CSR spend under the parameters of
the Companies Act. For reporting purposes, only those that comply with the Act shall
be counted within the allocated spend of INR 2,00,00,000.
5.3 Once programmes have been audited and evaluated against the inclusions and
exclusions of Clause 135, the final activities eligible for inclusion will be accounted
and included in the annual Directors Report. This policy commits that any underspend for the year 2014-15 shown in the annual report will be added to the budget
for 2015-16.
5.4 As per the rules laid out in the Companies Act, any over-spend for the year 201415 shall not be deducted from, or impact in any way, the budget allocation for 201516.

CSR Policy

Shahi Exports Private Limited

6. MODALITIES OF EXECUTION FOR CSR PROJECTS

Shahi Exports will execute its CSR initiatives through a combination of direct
implementation and through credible, non-profit organisations.
Directly implemented projects will be led by our HR, Sustainability and CSR teams
within a strong strategic and reporting framework.
Non-profit partners will have a proven history of success working in our focus areas,
strong ties to the communities we work with, and have more than three years of
experience in the field.
Annexure 1, attached, outlines the specific projects to be undertaken in 2014-15.

7. GOVERNANCE
The Board of Directors of Shahi Exports (SEPL) has established a Corporate Social
Responsibility Committee (the Committee) in compliance with Section 135 of the
Companies Act 2013. The Committee will consist of at least three SEPL Directors.
Independent members may be asked to periodically join the Committee as required.
The Committee will play an assessment and supervisorial role in SEPLs CSR by
following these actions:

Annual review and approval of the CSR Policy

Six-monthly basis review of the ongoing projects and budget
Suggestion of new projects to take on and partners to collaborate with
Creation of an annual report for the Board

The Board will appoint the Committee and membership will be reviewed annually.
For the Financial Year of 2014 - 2015, the Committee will consist of the following
members:

Harish Ahuja
Subhash Tiwari
J.D. Giri

Mr. Paul Ouseph and Mr. Anant Ahuja of the Company have been co-opted to the
Committee.

8. MONITORING AND EVALUATION

Embedded in Shahis commitment to responsible business is the rigorous evaluation
of projects, and ensuring these projects have a positive impact on our people,
communities and surrounding environment.
Our CSR activities are assessed through the following channels:

CSR Policy

Shahi Exports Private Limited

I.

Tracking of activities to understand if they are in line with project plans,

timelines and budgets
II. Monitoring of reach and outcomes to assess whether the short-term goals of
the projects have been met
III. Collecting and analysing impact data to understand how projects have
benefited the target area or beneficiaries
IV. Periodic external evaluations on some projects, as required, to ensure the
broader relevance of our activities and how to better design and implement
them
This information is collected through a variety of methods depending on the project,
including site visits, MIS, reports, interviews and case studies, on an ongoing basis.
Partner NGOs go through a due-diligence process and are also monitored
accordingly.
Performance and impact data will be aggregated annually, along with budget
utilisation, and will be published in the Directors Report, in accordance with the
Companies Act, 2013.

9. AMENDMENTS
This Policy may be periodically reviewed and amended by the CSR Committee with
approval from the Board.

CSR Policy

Shahi Exports Private Limited

Annexure 1
Project details for 2014-15
Project Name
and Modality of
Execution

Schedule VII
Theme

Project Objective
and Beneficiaries

Project Overview and

Implementation Schedule

PACE (Personal
Advancement and
Career
Enhancement)

(iii)
Empowering
women

Objective: To help
women gain
advancement in
work and life

Starting in 2007, PACE is an ongoing

Shahi project that provides life skills
training to empower women in their
home and work life. PACE also
provides a safe environment for
women to discuss and gather new
information on other issues from
healthcare, home management,
money management to violence
against women. Results have shown
that beneficiaries have improved
savings, increased confidence and
are better able to manage their home
life. Women enrolled in PACE train
once a week for 90 minutes. In order
to become PACE certified, a total of
72 hours should be completed.

- Direct
implementation

Water Sanitation
and Hygiene
(WASH) Initiative

Beneficiaries: Shahi
workers, vocational
trainees,
community
members

(i)
Promoting
healthcare and
sanitation

- NGO Partners
WaterAid and
Swami
Vivekananda
Youth Movement

Skill development
initiative
- Direct
Implementation

Objective: To
improve knowledge
and promote good
health
Beneficiaries: Shahi
workers, school
children,
community
members

(ii)
Employment
enhancing
vocational
skills

Objective: To
enhance the
employability of
unemployed, rural
youth
Beneficiaries:
Youth in rural
communities

Health awareness
and illness
prevention
- Direct

(i)
Promoting
healthcare and
eradicating
malnutrition

Objective: To
facilitate a better
quality of life
through health and
nutrition
8

A young initiative that started in

November 2014, WASH is an
education initiative that takes place
within Shahi factories, and in the
schools and communities that
surround them. By improving
knowledge in water, sanitation and
hygiene (WASH), Shahi hopes to
reduce illness and prevent
contamination and disease. WASH
training happens on an ongoing basis
in 40-minute sessions. A total of 32
hours is required per person to
complete the training.
Shahis skill development initiative
began in January 2013, with the aim
of linking one member of a rural
family to jobs in the organised sector,
and reducing poverty. Training
includes skills relevant to the
garment industry, as well as key life
skills that help youth attain, retain
and excel in their place of
employment. Training lasts for 45
days, upon which youth may choose
to join Shahi or other garment
manufacturers around the country.
Shahi regularly holds health camps
and awareness campaigns in and
around where our factories are
located, in order to provide much
needed health support. These

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Shahi Exports Private Limited

implementation

interventions
Beneficiaries: Shahi
workers, worker
families, community
members

Rainwater
Harvesting
- NGO Partner,
Water Literacy
Foundation

(iv)
Ensuring
Environmental
Sustainability

Objective: To
reduce our fresh
water footprint and
strive towards a
water positive
status.
Beneficiaries:
Environmental
benefit

Food Distribution
- Through Shahis
own NGOs,
Shahenshahi
Trust & Shri
Kamakshi Nitya
Annanda Trust

Namagaagi
Naave
- NGO Partner,
Bangalore
Medical Services
Trust

(i)
Eradicating
Hunger

Objective: To
provide access to
free, nutritious
meals to those in
need
Beneficiaries:
Disadvantaged
local communities
and pilgrims

(iii)
Empowering
Women
(i) Promoting
Healthcare

Objective: To
reduce gender
inequalities and
gender-based
violence
Beneficiaries:
Currently trialing
amongst Shahi
workforce.

include vaccination, dental and

health check-up camps. Within
Shahis factories, employees also
received iron tablets, as provided by
the ESI, to treat anemeia and
improve worker health. Interventions
happen at regular intervals
throughout the year, depending on
the need of each area.
In 2104-15 Shahi will implement
rainwater-harvesting technologies in
two of its units in Karnataka as a trial
phase with two more to follow in
2015-16. Through a combination of
roof-water collection and bore well
recharge we aim to save up to 160%
of a units fresh water consumption.
On completion of this trial phase,
Shahi will roll out similar technologies
across additional units.
Since 2002 Shahi has supported the
distribution of free food to those in
need in two locations in Tamil Nadu.
The project covers the total budget
for food distribution centres in each
location and the costs associated
with preparing and serving meals to
approximately 500 visitors daily. In
2014-15 Shahi will continue to
support these two locations.
Shahi works with Bangalore Medical
Services Trust to raise awareness
and build individual and collective
responsibilities to Gender Inequities,
Gender Based Violence, Alcohol
Abuse, Sexual & Reproductive
Health, and HIV/AIDS. The
awareness training includes four
topic sessions and involves 38 hours
of training per person.
This is a trial project for 2014-15,
which is to be piloted amongst
Shahis own workers in three units,
before being expanded to the
broader community.