Our Board is central to our corporate governance framework and is supported by a number of committees to which certain board responsibilities have been delegated. The committees, in turn, formally report to the Board to ensure it remains fully updated about the activities.
The Board’s principal committees include the audit committee, nominations and remuneration committee, stakeholder and relationship committee, and CSR committee, with formally delegated duties and responsibilities, and terms of reference. From time to time, the Board may set up additional committees to consider specific issues when the need arises. The company secretary provides support for the Board’s principal committees.
The corporate governance framework promotes prudent and sound management in the long-term interest of the company and its shareholders. It is effective in promoting compliance of applicable corporate governance principles and standards.
The primary role of the audit committee is to ensure integrity of financial reporting and audit process, and to ensure robustness of the internal control and risk management systems.
As per the provisions of the Companies Act 2013 read with Companies (Appointment and Qualification of Directors) Rules, 2014, the Board of Directors of every company having more than one thousand shareholders, debenture-holders, deposit-holders and any other security holders at any time during a financial year, shall constitute a stakeholder relationship committee consisting of a chairperson who shall be a non-executive director and such other members as may be decided by the board.
Since the company has more than one thousand shareholders, the company has constituted the stakeholder relationship committee with executive, non-executive and independent directors as the members of the committee.
The stakeholder relationship committee considers and resolves the grievances of security holders of the company in close coordination with the company secretary.
As per section 135 of the Companies Act 2013, the company is mandated to constitute a corporate social responsibility (CSR) committee consisting of atleast three directors with atleast one independent director. Therefore, the company has duly constituted its CSR committee.
The company has enacted CSR policy. The vision of CSR policy is to empower the communities around our areas of operation towards development that is collaborative, progressive, inclusive and sustainable through optimal realization of human potential and responsible utilization of resources.
The company undertakes various CSR initiatives in close coordination with Essar Group Foundation. The Essar Group Foundation is the CSR arm of the Essar Group that is committed to maintaining the highest standards of CSR in its business activities and aims to make a difference wherever it operates. The Essar Foundation collaborates with key stakeholders, especially the local administration and institutions to facilitate development focused on education, livelihoods, women’s empowerment and health. It aspires to create lasting impacts, ultimately leading to positive change and sustainability. The Essar Foundation follows the 10 principles of the United Nations Global Compact (UNGC), undertakes interventions in line with the UN Millennium Development Goals within the framework of the Companies Act, 2013. It has impacted more than a million lives positively up to now across 500 villages in eight states of India.