CorporateSocialResponsibilityPolicy

FortisHealthcareLimited

FinalAugust2014

INDEXOFCONTENTS
Sl.No.

Index

PageNos.

1.

BACKGROUND

2.

PHILOSOPHY

3.

OBJECTIVE

4.

APPLICABILITY

5.

LEGISLATION

6.

DEFINITION

7.

POLICYSTATEMENT

8.

ORGANISATION

9.

PROGRAMMES

10.

ROLES&RESPONSIBILITIES

11.

SOURCEOFSUPPORT

12.

MONITORING

10

13.

REPORTING/DISCLOSURE

10

14.

REPORTINGFORMATS&TEMPLATES

11

15.

KEYCONTACTS

11

AnnexureI

12

FinalAugust2014

BACKGROUND

Fortis Healthcare Limited (hereinafter referred as Fortis/Company) is a health services

company.

FindingitsorigininthevisionofitspromoterstoprovideIndiawithaworldclasshealthdelivery
system,FortishasgrownfromitsfirsthospitalinMohali,establishedin2001,tomorethan65
healthcarefacilitieslocatedacrossIndiaandtodayalsospansacrossalliedhealthcareverticals
suchasdiagnostics,primarycare,daycarespecialtybesideshospitals.

Operating under the stated Vision of saving & enriching lives, the organization has identified
patientcentricity,integrity,teamwork,ownershipandinnovationasitscoreoperatingValues.
Further in providing guidance on its conduct, the Company has chosen to articulate the
following,amongstothers,principlesunderitsCodeofConduct
Conductouroperationsinanhonestandfairmannerwithintegrityandopenness
Respect human rights, dignity and legitimate interests of all individuals directly and
indirectlyassociatedwithus
Provide a safe, healthy work and business environment to all persons directly and
indirectlyassociatedwithus
Atalltimesensureconduct,whichsustains,enhancestheglobalreputationandimageof
theorganization
Inthecontextoftheaboveandinordertobringclaritytoitspositionvisvissocialactivities,
thecompanynowwishestoformallycommunicateitspositionasamemberofthecommunity
andestablishforbothinternalandexternalstakeholders,itsphilosophy,guidingprinciplesand
areasoffocusthatitwouldasanorganizationseektopromoteinthearenaofCorporateSocial
Responsibility(CSR).
Thisdocumentisinkeepingwiththecurrentmaturityoftheorganizationandisexpectedto
evolvewiththegrowthoftheorganization,dynamicneedsofsocietyandthecommunityin
whichthecompanyoperates.
This policy is a forwardlooking aspirational document, which establishes the parameters and
foundationuponwhichtheCorporateSocialResponsibilityinitiativeswouldbebuilt:
a. undertheleadershipanddirectionoftheCompanysBoard
b. withactiveparticipationofitsseniorleadershipandallemployeesand
c. in partnership under a spirit of togetherness with any such partner who shares a
commonvisionandobjectiveofmakingapositiveimpactonsociety,andwishingtoleave
thisworldandhumanityinabetterplacethantheoneweinherited.

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PHILOSOPHY

Fortisbelievesandstrivestowardsahealthierhumanity.

Fortis believes in sustainable development, growing our business in a socially and

environmentallyresponsibleway,whilemeetingthelegitimateinterestsofourstakeholders.

Fortis believes it, along with all its employee members, is an important participant of society
andassuchhasanobligationtoparticipateanddrivesocialchangenotonlyintheareasofits
competencebutalsoinsuchwhichimpactitsexistenceandsustainability.

Fortisbelievesintakinganactiveroleandresponsibilityinempoweringcommunitiesinwhichit
operates through social development initiatives which drive positive change and support its
objectiveinimprovingandsustainingthehealthandwellbeingofhumanity.

Fortis's corporate social responsibility aims at being linked to sustainable development;

economic, social and environmental requirements of society as a whole and of future
generations.

OBJECTIVE

As a healthcare provider, Fortis through this Policy and its initiatives under CSR aims at:

Creatinganddrivingpositiveimpactandoutcomesinsocialdevelopment
Working to increase expertise and advances in healthcare capacity building to serve
societyandthecommunityitoperatesinandthroughtheirhelpimprovethehealthand
qualityoflife.
Sustainable investment towards fulfilling its obligations as a member of society and
enhancing its relationships with all its stakeholders and communities including its
employees
Fulfillingitssocialresponsibilitiesalongsideitsnormalbusinessactivities

Asstatedearlierourpoliciesandobjectiveswillevolve,andovertimeharmonizeourlongterm
and short term goals in CSR. Our ultimate goal is to wholesomely and positively impact the
communities we are associated with irrespective of linkage to our core operating areas of
healthcaredelivery.Intheshorttermandconsistentwiththatviewweproposetoutilizeand
leverageourcompetenciesandworkinareasassociatedwithhealthcare.

FinalAugust2014

APPLICABILITY

ThispolicyisapplicabletoFortisandallitssubsidiarieswhetherfallingundertheSection135of
theActornot.

InanefforttomaximizetheimpactofCorporateSocialResponsibilityactivitiesasundertaken
underthepresentpolicy,itisthestatedintentiontoalignsuchprogramsofgroupcompanies
either by designating the Fortis identified vehicle as their special designated vehicle/s for
corporatesocialresponsibilityorbyhavingthemcontributeandparticipateintheestablished
programs.

It is also the stated intention of Fortis to alignand partner with external partners in the true
spirit of togetherness to maximize the impact and contribution to social development and
change. In that regard while this Policy may provide a foundation and context for such
alignments,thescopeofthisPolicyisnotmeanttorestrictopportunitiesforanysuchalliance

whichcanbestructuredtomeettheneedsofthepartneranditsobjectives.

LEGISLATION

While this Policy is the stated position of the Company in the area of Corporate Social
Responsibility and finds its independent justification under the Philosophy and business
objectivesoftheorganization,italsohaslinkagetotheregulatoryrequirementsasprescribed
undertheCompaniesAct,2013andRulesestablishedthereunder.

InthatcontexttheCorporateSocialResponsibilityPolicyisalignedandsubjecttothefollowing
legislationsandrulesestablishedthereunder:

1. Section135oftheCompaniesAct,2013;
2. Companies(CSRPolicy)Rules2014;
3. ScheduleVIIoftheCompaniesAct,2013;and
4. General circulars as issues by the Ministry of Corporate Affairs from time to time,
including:
CirculardatedJune18,2014,issuedbyMinistryofCorporateAffairs

DEFINITION

1. "ActmeanstheCompaniesAct,2013;

2. Average Net Profit means the profit calculated in accordance with the provisions of
Section198oftheAct.

FinalAugust2014

3. CompanymeansFortisHealthcareLimited.

4. CSR Committee means the Committee as constituted by the Board of Directors of the
CompanyincompliancewithSection135oftheActandrulesmadethereunder;

5. "Netprofit"meansthenetprofitoftheCompanyasperitsfinancialstatementpreparedin
accordancewith the applicable provisions of the Act, but shall not include the following,
namely:

i) any profit arising from any overseas branch or branches of the Company, whether
operatedasaseparatecompanyorotherwise;and
ii) any dividend received from other companies in India, which are covered under and
complyingwiththeprovisionsofSection135oftheAct:

Provided that net profit in respect of a financial year for which the relevant financial
statementswerepreparedinaccordancewiththeprovisionsoftheCompaniesAct,1956,
shallnotberequiredtoberecalculatedinaccordancewiththeprovisionsoftheAct.

6. Net worth means the aggregate value of the paidup share capital and all reserves
createdoutoftheprofitsandsecuritiespremiumaccount,afterdeductingtheaggregate
valueoftheaccumulatedlosses,deferredexpenditureandmiscellaneousexpenditurenot
writtenoff,aspertheauditedbalancesheet,butdoesnotincludereservescreatedoutof
revaluationofassets,writebackofdepreciationandamalgamation.

7. RulesmeantheCompanies(CorporateSocialResponsibilityPolicy)Rules,2014.

8. Turnover means the aggregate value of the realization of amount made from the sale,
supply or distribution of goods or on account of services rendered, or both, by the
Companyduringafinancialyear.

WordsandexpressionsusedandnotdefinedhereinabovebutdefinedtheActand/orRules
shallhavethesamemeaningsrespectiveassignedtothemintheActand/orRules,asthecase
maybe.

POLICYSTATEMENT

Asaresponsiblecompany,savingandenrichinglives,improvingandmanagingthehealthofits
customers and serving the community all converge to define the purpose of Fortiss core
business.

Drawingfromitsvisionandmissionstatement,throughCSRFortisseekstoproactivelyengage
withsocietybyworkingwithcommunitiestoimprovetheirwellbeinginacompassionateand
sensitivemanner.FortisseekstobringfocustocommunitywelfareinHealthcare.
FinalAugust2014


WithinthisoverarchingPolicy,thecompanywillimplementitsCorporateSocialResponsibility
initiatives,underthefollowingprinciples:

Adopt Mother & Child as the primary focus for CSR intervention. Starting with
healthcare, overtime the areas will include education, environment and capacity
buildingforsustainedwellbeing.
The initiatives will be targeted to the needs of the disadvantaged, vulnerable and
marginalized1sectionsofsociety
To achieve tangible outcomes such initiatives would be structured to focus on 23
importantconcernswithinMother&Child
Efficiency,sustainabilityandrelevancewillbedrivingprinciplesofallprogrammes.
Inclusiveandcollaborativeparticipation(internalandexternal)wouldformthebaseof
all CSR initiatives and programs. Includes the creation of employee engagement
opportunitiestosupport,encourageandembedsocialconsciousnessanddevelopafeel
goodfactorintheirprofessionallife
BuildandleveragepartnershipswithlikemindedIndividuals,CorporatesandInstitutions
forachievingpositivechange.

ORGANISATION

ThecompositeCSRwork,definedundertheFrameworkofthisPolicy,maybedonethrough:
1. FortisCSRFoundationaSection8Companyand/or
2. Point of Care Delivery Locations including Fortis Hospitals, Clinics and other
establishmentsoftheCompany

CumulativelytheobjectivewouldbetoensurecompliancewithSection135oftheCompanies
Act 2013. Besides the same and to specifically clarify, the Company either by itself or in
partnership with others may initiate or continue to pursue such other social improvement
initiativeswhetherlistedunderScheduleVIIoftheActornot.

PROGRAMMES

AreasofinterventionunderMother&Child:
(toconcentrateCSReffortsononly23areasaswouldbedecidedbytheCSRCommittee)

1NationalVoluntaryGuidelinesonSocial,Environmental&EconomicResponsibilitiesofBusiness(MCAJuly2011)GuidingPrinciple4.

FinalAugust2014

Nutrition

Applicability
(underScheduleVIIoftheCompaniesAct2013)
Malnutrition
Promotingpreventivehealthcare
Promotingeducation
Ruraldevelopmentprojects

Disability

SpecialEducation
EmploymentenhancingVocationalskills
PreventiveHealthcare
ArmedForceVeterans

AdolescentEducation

Promotingpreventivehealthcare
Promotinggenderequality
Empoweringwomen
Promotingeducation
Ruraldevelopmentprojects

CreatingAwarenessand
DisbursementofInformation
(importantMCHhealthconcerns)

Promotingpreventivehealthcare
MakingavailablesafedrinkingWater
Promotingsanitation
Ruraldevelopmentprojects

DomesticViolence

Empoweringwomen
Measuresforreducinginequalitiesfacedbysociallyand
economicallybackwardgroups
Settinguphomesandhostelsforwomenandorphans

CapacityBuildinginthearenaof
Health

S.No.

1.

2.

3.

4.

5.

6.

Programmes

EmploymentenhancingVocationalskills
Livelihoodenhancement
Empoweringwomen
Promotingpreventivehealthcare
Forarmedforcesveterans,warwidowsandtheirdependents
Ruraldevelopmentprojects

The above list is illustrative and not exhaustive CSR Committee is authorized to consider
activities that may or may not fall in this list and also consider the activities which may be
specifiedbytheMinistryofCorporateAffairsfromtimetotimeunderScheduleVIIoftheActin
exerciseofitspowerunderSection135oftheAct.AllactivitiesundertheCSRactivitieswillbe
environmentfriendlyandsociallyacceptable.

ROLES&RESPONSIBILITIES

Operational responsibility to the Corporate Social Responsibility Programs resides with the
CompanysSeniorManagement,championedandleadbytheCSRLead.

Otherslistedbelowareexpectedtogivetheirfullcooperationinensuringthatthecompany
implementstheapprovedannualplans,complieswithanyrelevantchangeinlegislation,meets
newCSRrequirementsandidentifyareasinneedofimprovement.

FinalAugust2014

A. FHLBoard
ConstitutionoftheCSRCommittee;
ApprovaloftheCSRPolicyconsideringrecommendationsofCSRCommittee;and
EnsurethattheactivitiesasincludedinCSRPolicyareundertakenbytheCompany
SupporttheCSRPolicyimplementationbygivingitvisibilityunderadequate,timely
andimpactfulcommunication

B. CSRCommittee
FormulationandrecommendationtotheBoard,ofaCorporateSocialResponsibility
Policy;
RecommendationofCSRactivities/programstobeundertakenbytheCompany
underthePolicy;reviewingandapprovingtheannualbudgetthereon;and
MonitoringtheexecutionandadherencetotheCSRPolicyandannualplansona
continuesbasis;and
InstitutionalizingatransparentmonitoringmechanismforimplementationoftheCSR
projectsorprogramsoractivitiesundertakenbythecompany.

C. FHLManagement
RecommendtheAnnualOperatingPlan(AOP);
Proposetheannualbudgets(longtermandshortterm);
ReporttoCSRCommitteeaspertheapprovedschedule;and
CreateCSRreportstobepresentedtotheBoard.

D. CSRLead
FormulateandproposethestrategyforCorporateSocialResponsibilityactivitiesas
perthecompanysphilosophy(inalignmentwithstatute)andotherwise;
DesignandproposeCSRPrograms
DesignandproposethestructuretothesupportFortisCSRFoundation
EnsureexecutionofCorporateSocialResponsibilityprojects/programsasperthe
approvedplan;
Identify,buildandleverageexternalpartnershipstowardscommonobjectivesinthe
arenaofCSR
Liaisonwitheligibleagenciesforsmoothimplementationofinitiatives;and
SuperviseandmanagetheCSRteamsandinterdependenciesintheareaofCSR
ReportprogresstoManagementandtheCSRCommittee
Createprojectapplicationandreportingformats.
Createvisibilityofthepolicyandimplementedinitiatives

SOURCEOFSUPPORT

FinancialSupport:
Allocationofbudgetonannualbasisbythecompany
FinalAugust2014

Contributionsfromtheemployeesandstakeholders
Corpuscontributionbythecompany
Externalcontributionfrompartnersandstakeholders

PersonnelSupport
Fortisemployeesasvolunteers
Otherlikemindedcorporatesaimingtocreateapositivedifferenceinthesociety

MONITORING

1. CorporatesocialresponsibilityactivitieswillbemonitoredbytheCSRCommitteeunderan
organizationalstructurecreatedandapprovedbyitforFortisCSRFoundation.
2. FortisCSRFoundation,supportedbyathirdPartyEligibleAgency/Entitywhererequired,
willprepareandsubmitquarterlyreport(s)totheCSRCommitteehighlightingtheoutlays
and outcomes of the programs/projects in specific details for review by the CSR
Committee.
3. Every six months the Board of Directors of the Company will review the reports of CSR
CommitteeoftheCompanyonimplementationofCSRprograms/projects.
4. The CSR Committee will evaluate, review, approve and monitor CSR projects on a Cost
BenefitandImpactAnalysis.Theproposalwouldincludedetailstotheamountoffinancial
involvement,indirectcostsimpact,detailedprojectreportandplan.
5. External help for the development and execution of such programs may be sought per
scaleandneeddeterminedbytheCSRLead.

Apartfromabovementionedreports,theFortisCSRFoundation/ThirdPartyEligibleAgency/
EntitywillalsosubmitthefollowingtoCSRCommitteeonaregularintervals:

a. A Feasibility and Impact Assessment of continuing a particular program implemented

throughanexternalagencyorviatheinternalCSRdeliveryvehicle;and
c. Quarterly&annualreport(s)toCSRCommitteehighlightingtheoutcomesandchallenges
oftheprogram/projectsinspecificdetailalongwithafinancialreport.
d. Utilization certificate with statement of expenditure duly certified by a Chartered
Accountantwillbesubmittedbythesuchorganization(s)/agency(ies);and
e. Confirmationtocompliancetootherlegalandstatutoryrequirementsasnecessary

REPORTING/DISCLOSURE

Apart from the reporting requirement as mentioned hereinabove in the Policy, following
regulatorydisclosurerequirementsalsoneedtobecompliedinrelationtoCSRactivitiesofthe
Company.
CompositionoftheCSRCommitteeshallbedisclosedintheBoardReport;

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TheBoardReportshallincludeanannualreportonCSRactivitiesinprescribedformat(by
MCA) containing specified particulars i.e. Brief Outline of CSR Policy, its content the
AverageNetProfitforthelast3FYsandtheprescribedCSRExpendituresetc.;
Ifthecompanyfailstospendtheprescribedamount,theBoardshall,initsreportspecify
thereasonsfornotspendingtheamount;and
The content of Corporate Social Responsibility (CSR) Policy shall be displayed on the
company'swebsite,ifany
AcomprehensiveannualCSRReportdetailingtheinitiativeswithrelevantannexuresand
photographs along with account statement (all inclusive) shall be created and
communicatedforinternalcompanyrecords.

REPORTINGFORMATS&TEMPLATES

FormatofReportingforDirectorsReport: AsperAnnexure1

KEYCONTACTS

Contactfollowingforqueriesrelatedto:

a. CSRPolicy:
EVPCentralServices/jasbir.grewal@fortishealthcare.com

HeadCSR/sakina.baker@fortishealthcare.com/01244921033

b. Finances:
ManagerFinance/rajneesh.mittal@fortishealthcare.com/01244921033

c. Compliance: CompanySecretary/rahul.ranjan@fortishealthcare.com/01244921033

Preparedby:

Reviewedby:

Recommendedby:

Approvedby:

FinalAugust2014

11

AnnexureI

FORMAT
ANNUALREPORTONCSRACTIVITIESTOBEINCLUDEDINTHEBOARD'SREPORT

1. A brief outline of the company's CSR policy, including overview of projects or programs
proposedtobeundertakenandareferencetotheweblinktotheCSRpolicyandprojectsor
programs.
2. TheCompositionoftheCSRCommittee.
3. Averagenetprofitofthecompanyforlastthreefinancialyears
4. PrescribedCSRExpenditure(twopercent.oftheamountasinitem3above)
5. DetailsofCSRspentduringthefinancialyear.
a. Totalamounttobespentforthefinancialyear;
b. Amountunspent,ifany;
c. Mannerinwhichtheamountspentduringthefinancialyearisdetailedbelow

S.No.

CSR
projector
activity
identified

Sectorin
which
the
projectis
covered

Projectsor
programme:
(i)Localareaor
other
(ii)Specifythe
stateordistrict
wherethe
projectsor
programmeswas
undertaken

Amount
outlay
(Budget)
projector
programme
wise

Amountspent
onprojector
programs:
Subhead:
1.Direct
expenditureon
projector
programme;
2.Overheads

Cumulative
expenditure
uptothe
dateof
reporting

Amountspent:
Director
through
implementing
agencies*

Total

*Givedetailsofimplementingagencies.
6. Incasethecompanyhasfailedtospendthetwopercentoftheaveragenetprofitofthe
lastthreefinancialyearsoranypartthereof,thecompanyshallprovidethereasonsfornot
spendingtheamountinitsBoardreport.
7. AresponsibilitystatementoftheCSRCommitteethattheimplementationandmonitoring

ofCSRPolicy,isincompliancewithCSRobjectivesandPolicyofthecompany.

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