Annual Report 2016 - 2017 15

Kitex CSR

The Key activities/ initiatives of Kitex CSR conducted during the FY 2016-17 are detailed below:

Agriculture

Promoting sustainable agricultural practices is the main focus areas of Kitex CSR initiatives. It includes participative and group farming in over 1100 acres of farmland with the full co-operation of farmers in Kizhakkambalam Panchayat. Out of this, 1000 acres were used for rice farming, vegetable framing and fruits cultivation. More farm development equipments and other mechanical devices were procured and put into operation for better yield and financial improvements. A total of Rs. 7 lakhs have been spent cumulative upto this year end.

Safe Drinking water and water Security

The programme focuses on supply of drinking water to some of the backward colonies located near the factory premises at Kizhakkambalam. Twenty permanent and forty portable water tanks were constructed during the last year. Safe drinking water was provided to backward areas

of panchayat.

Kitex is investing in building capacities of communities to harvest and conserve water. This has been achieved by building water harvesting structure, blending modern technologies with local situations. Kitex has initiated dredging of all canals in and around Kizhakkambalam by removing accumulated wastes and thereby making it useful for the agriculture and drinking. The company has constructed check dams, farms ponds, 290 wells (some are under construction) and identified 510 wells for the purpose of maintenance in the last year. It has also budgeted for side protecting of canal for safe drinking water.

Education

In order to improve the quality in teaching and learning process in education, the Company has budgeted smart Class (One is already implemented) equipped with modern amenities. This would benefit a large number of students. The company has also provided two school buses to Kumanod and Choorakode UP Schools. Your company have been providing noon meal to students. Your company is also funding for basic infrastructure of schools for quality education. We have spent

Agriculture Drinking Water Education Food Security

A total of Rs. 7 lakhs have been spent cumulative upto this year end.

Kitex has constructed check dams, farms ponds, 290 wells (some are under construction) and identified 510 wells for the purpose of maintenance in the last year.

The company has spent Rs. 19 lakhs on education and allied activities during the year under review.

an amount of Rs. 9 lakhs extended to needy families in Kizhakkambalam Panchayat area during the year.

Corporate Social Responsibility

Kitex Garments Limited16

Rs. 19 lakhs on education and allied activities during the year under review.

Food Security Programme

Your company extended distribution of essential food materials including vegetables at very moderate subsidized prices (which is almost half the market prices) twice a week to those poor and needy families. This benefit was funded with an amount of Rs. 9 lakhs in Kizhakkambalam Panchayat area during the year.

Health Care

Your Company takes care of the health of society by providing Regular Health and Medical Check-up Camps. Free medicines were distributed and follow up medical facilities were extended on a regular basis to the needy members. Your Company through its ‘mother and child’ initiative, is working on women’s health in semi-urban and rural areas with specific focus on nutrition like egg and milk to pregnant women and children of less than 5 years. Continuing with the program of good health to all in Kizhakkambalam, the company extends its ambulance services to the needy on demand at the shortest time at free of cost. This is basically for patients who have to undertake dialysis on a regular basis in the primary Health Centre. It has incurred an expenditure of Rs. 3.5 lakhs under this head.

Housing

Your Company has introduced housing scheme ‘Ente Veedu Scheme’ in the year 2016 whereby 200 houses including sanitation, colony

renovation, toilets etc.. were planned for construction. Out of total, 35 houses are completed. In Njaraloor Colony under Kizhakkambalam Panchayat, 37 houses is almost getting completed. 28 houses are under planning stage in Velangu Colony. It has spent around Rs. 1.35 Crores for this project during the year under review.

Infrastructural development

Your company is developing the basic infrastructure in and around Kizhakkambalam Panchayat by broadening the exiting roads, development of new roads, side protection on both sides of the road, improving drainage facilities, scientific rain water harvesting and other allied activities. It has identified around 510 street light posts for upgrading to LED lights, thereby conserving the energy for the future. Transformation of street light to LED light is in progress and the company has purchased new mobile crane under this programme. It has invested 4.34 Crores for the infrastructure development during the last year.

A new beginning for employment generation

Your Company has started new scheme ‘Adugramam Padhadhy’ farms whereby ten goats per cage is provided on request from families in Kizhakkambalam panchayath free of cost. The scheme is already commenced and this would be extended to cow and poultry farming.

It is estimated that by extending the above programs, your company have generated more than one lakh job hours of employment for the local population in Kizhakkambalam Panchayat

Health Care Housing Infrastructure Employment

The company has incurred an expenditure of Rs. 3.5 lakhs under this head.

The company has spent around Rs. 1.35 Crores for this project during the year under review.

The company has invested 4.34 Crores for the infrastructure development during the last year.

more than one lakh job hours of employment for the local population in Kizhakkambalam Panchayat

Annual Report 2016 - 2017 51

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES – 2016-17

(As per Rule 8 (1) of Companies (Corporate SocialResponsibilitypolicy)Rules,2014)

A. Brief outline of the company’s CSR policy

Kitex Garments Limited (KGL) CSR policy isfocusedondemonstratingcareforthesocietythrough its focus on Eradicating Hunger andPoverty, Education and Skill Development,ensuringgoodHealth&Wellness,EnvironmentSustainability and making available SafeDrinking Water. While reaching out tounderserved communities as a part of ourHERITAGE, we believe in the trusteeshipconcept. This entails transcending businessinterestsandgrapplingwiththe"qualityoflife"challengesthatunderservedcommunitiesface,and working towards making a meaningfuldifference to them. The Projects undertakenwillbewithinthebroadframeworkofScheduleVIIoftheCompaniesAct,2013.

Our vision is – "to effectively contribute tothe social and economic development of thecommunitiesinwhichweoperate.Indoingsowe intend to build a better, sustainable wayof life for theweaker sections of society andraisethecountry'shumandevelopmentindex".Our Vision converges on Corporate Social Responsibility for Kizhakkambalam, where we dream to make this Panchayath the best in the State among the total 978 Panchayaths.

Our CSR policy includes:

1. To pursue a corporate strategy that enablesrealization of the twin goals of shareholdervalueenhancementandsocietalvaluecreationin a mutually reinforcing and synergisticmanner.

2. To implement Social Investments / CSRprogrammesprimarilyintheeconomicvicinityof yourCompany's operationswith a view toensuring the long term sustainability of suchinterventions.

3. To contribute to sustainable development inareas of strategic interest through initiativesdesigned in a manner that addresses thechallenges faced by the Indian societyespeciallyinruralIndia.

4. Tocollaboratewithcommunitiesandgroupstocontributetothenationalmissionoferadicatingpoverty and hunger, especially in rural areas,through superior farm and agri-extensionpractices, soil andmoisture conservationandwatershed management, conservation anddevelopmentofforestresources,empoweringwomen economically, supplementingprimary education and participating in ruralcapacitybuildingprogrammesandsuchotherinitiatives.

5. TosustainandcontinuouslyimprovestandardsofEnvironment,HealthandSafetythroughthecollectiveendeavourofyourCompanyanditsemployeesatalllevelstowardsattainingworldclassstandardsandsupportotherprogrammesand initiatives, internal or external, for thepreventionofillnessandcombatingofdiseasesasmaybeconsideredappropriatefromtimetotime.

6. To encourage the development of humancapital by expanding human capabilitiesthroughskillsdevelopment,vocationaltrainingetc.andbypromotingexcellenceinidentifiedculturalfields.

Details of CSR activities undertaken in the currentyear are available in our weblink: www.facebook.Twenty20Kizhakkambalam. Further detailsof Company’s CSR policy is available in www.kitexgarments.com

B. Composition of the CSR Committee

KitexGarmentsLimitedhas setupCorporateSocial Responsibility Committee (CSRCommittee) as per the requirement of theCompaniesAct,2013.ThemembersoftheCSRCommitteeason31stMarch,2017are:

i. Mr.SabuM.Jacob-Chairman

ii. Mr.K.L.V.Narayanan-Member

iii. Mr.BenniJoseph-Member

iv. Mr.C.P.Philipose–Member

C. Average net profit of the company for last three financial years: ` 133,63,59,286

D. Prescribed CSR Expenditure (two per cent of the amount as in Item C above): ` 2,67,27,184

E. Details of CSR Spend during the financial year

i. Total amount spent for the financialyear:`6,09,41,516

ii. AmountUnspent,ifany;None.

iii. Mannerinwhichtheamountwasspentduring the financial year is detailedbelow.

Annexure - E to the Directors Report

Kitex Garments Limited52

(Amountin`inlacs)

(1) (2) (3) (4) (5) (6) (7) (8)

Sr.

No.CSR project or activity identified

Sector in which the Project is covered

Projects or programs

Amount outlay (budget)

project or Program wise

Amount spent on the projects or programs

Cumulative expenditure upto to the reporting

period

Amount spent: Direct

or through implementing

agency

Sub Heads

(1) Localareaorother (1) DirectexpenditureonProjectsorPrograms

(2)SpecifytheStateanddistrictwhereprojectsorprogramswasUndertaken

(2)Overhead

1 Agriculture Environmentsustainability

Local Area covered by Kizhakkambalam Panchayat in Ernakulam District in State of Kerala

3,45,038 7,00,905(DirectexpenditureonPrograms)

7,00,905

Directly by the Company

2 Education Promotingeducation 9,40,202 19,09,913(DirectexpenditureonPrograms)

19,09,913

3 House construction

Environmentsustainability 66,34,083 1,34,76,369(DirectexpenditureonPrograms)

1,34,76,369

4 Food Supply Eradicating hunger, povertyandMalnutrition

4,45,839 9,05,670(DirectexpenditureonPrograms)

9,05,670

5 Water Supply Making available safedrinkingwater

145,846 2,96,267(DirectexpenditureonPrograms)

2,96,267

6 Medical Promoting health includingpreventivehealthcare

1,64,329 3,33,815(DirectexpenditureonPrograms)

3,33,815

7 Road Development

Environmentsustainability 2,13,24,663 4,33,18,577(DirectexpenditureonPrograms)

4,33,18,577

Total Spent 3,00,00,000 6,09,41,516 6,09,41,516

G. In case the company has failed to spend the two percent, of the average net profit of the last three financial years or any part thereof, the company shall provide the reasons for not spending the amount in its Board report. NotApplicable.TheCompanyhasspentabovetherequiredamount.

Our Responsibility

TheResponsibilityStatementoftheCorporateSocialResponsibility(CSR)CommitteeoftheBoardofDirectorsoftheCompanyisreproducedbelow:

‘TheimplementationandmonitoringofCorporateSocialResponsibility(CSR)Policy,isincompliancewithCSRobjectivesandpolicyoftheCompany.’

Sabu M. Jacob Benni Joseph April28,2017 Chairman&ManagingDirector MemberKizhakkambalam &ChairmanofCSRCommittee CSRCommittee (DIN:00046016) (DIN:01219476)