Mumbai: For CSR implementation, Zydus Lifesciences Limited has established a wholly owned subsidiary under Section eight Companies Act 2013. The Zydus Medical College and Hospital in Dahod was established to serve and cater to the needs of patients at an affordable cost and providing the
state of art medical education.
The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there are no unspent CSR amounts for the year requiring a transfer to a Fund specified in Schedule VII to the Act or special account in compliance with the provisions of sub-section (6) of section 135 of the said Act. Accordingly, reporting under clause (xx) of the Order is not applicable for the year.
During the Financial Year that ended on March 31, 2022, the Company was required to contribute an amount of Rs 269.23 mio. [rounded off to Rs. 270.00 mio. (Rupees Two Hundred Seventy Million only)] (Rs. 27 Crore), being the 2% (two percent) of the average net profits of the previous 3 (three) financial years, calculated as per the provisions of section 198 of the Companies Act, 2013.
(a) Two percent of the average net profit of the Company as per section 135(5)- Rs. 269.23 mio. (rounded off to Rs. 270.00 mio.) (Rupees Two Hundred Seventy Million only)
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years – Nil
(c) Amount required to be set off for the financial year, if any – Rs. 100.00 mio. (Rupees One Hundred Million only)
(d) Total CSR obligation for the financial year (7a+7b-7c) – Rs. 170.00 mio. (Rupees One Hundred Seventy Million only)
Based on the recommendation of the CSR Committee, the Board of Directors at its meeting held on August 11, 2021, passed a resolution to set off an amount of Rs. 100.00 mio. (Rupees One Hundred Million only) during the Financial Year ended on March 31, 2022, out of the total excess contribution of Rs. 531.00 mio. (Rupees Five Hundred Thirty-One Million only). Based on the recommendation of CSR Committee, Board at its meeting held on May 20, 2022 passed a resolution that out of the balance amount of Rs. 431.00 mio. (Rupees Four Hundred Thirty-One Million only), an amount of Rs. 180.00 mio. (Rupees One Hundred Eighty Million only) will be set off against the total amount to be contributed towards CSR during the Financial Year ending on March 31, 2023.
Taking into consideration the above, the Company has contributed an amount of Rs 170.00 mio. (Rupees One Hundred Seventy Million only) towards CSR on education and healthcare, including preventive healthcare and infrastructure development. EY has carried out CSR Impact Assessment on the CSR projects undertaken by the implementing agency.
Ramanbhai Foundation and Zydus Foundation. Under its flagship programme, Zydus Shrishti, the Company carries out extensive work in the field of education, health and research. The focus of these programs is to develop communities, it forms a part of, inclusive education and creates knowledge platforms for the research community.
In line with its policy, the Company has contributed to education, healthcare and social outreach programmes and a majority of its CSR spending in the previous financial year has been in these areas. To serve the needs of the patients and bring world-class medical education to the rural interiors of Gujarat, the Company manages the Zydus Medical College and Hospital at Dahod.
The Hospital till now has provided critical medical services to 7,488 COVID-19 patients who were admitted to the hospital and 35,962 OPD patients who have been treated for COVID so far since March, 2020.
Contribution to Zydus Foundation, a wholly owned subsidiary of the Company, is a company incorporated under Section 8 of the Companies Act, 2013
The services of the Hospital during the ongoing pandemic were lauded by the Ex-Chief Minister of Gujarat, Shri Vijaybhai Rupani. The Zydus Medical College is the first Medical College to be set up in Dahod and 750 students are currently enrolled in the MBBS programme.
Reaching out to make a difference in the community, the Company also extends support to the School for Deaf and Mutes Society. Established in the year 1908, the school for the Deaf and Mutes Society is one of the oldest organizations working in the field of education and rehabilitation of persons with hearing, speech, and visual impairment.
The ZMCH strives to achieve its vision to establish a world-class institute of medical education and to train, in a spirit of collegiality with a standard of excellence, outstanding clinicians and leaders in medicine and science. The Zydus Hospital and Medical College derive its ethical framework.
Aligning its mission and corporate social responsibility, the Company continues to create healthier, happier communities globally. Zydus Shrishti, the Company’s CSR programme focuses on the areas of health, education and research.
The company’s vision of social responsibility aligns with themes of good health, happiness, joy, growth, togetherness, discovery, learning, exploration, development, transformation, and ambitions. The group’s CSR initiative, Zydus Srishti, strives to create value and impact on a variety of aspects, including health (Swaasthya), education (Shiksha), research (Shodh), and outreach (Saath).
Dahod is one of the most backward districts with a large tribal population. As per Rural Health Statistics 2015, Dahod had one (1) district hospital, one (1) sub-divisional hospital, thirteen (13) Community Health Centres and eighty-five (85) Primary Health Centres. As per the Audit Report (General and Social Sector) for the FY 2014-15, the bed strength of District Hospital Dahod was 150 as against the required bed strength of440 as per Indian Public Health Standards (IPHS). Furthermore, as per the audit, serious inadequacies in the infrastructure of the District Hospital Dahod were observed hampering the service delivery.
The organisation has developed meaningful relationships with internal and external stakeholders. The Company has developed a CSR Policy in accordance with section 135(4)(a) of the Company’s Act and CSR Rules, as amended from time to time.
Pursuant to section 135 of the Act and Rules made thereunder, the Board has constituted a CSR Committee under the Chairmanship of Pankaj R. Patel. Other members of the Committee are Dharmishtaben N. Raval and Dr. Sharvil P. Patel.
The Company has framed a CSR Policy in compliance with the provisions of section 135(4)(a) of the Act and Rules made thereunder, as amended from time to time and for the time being in force. The Company has outlined the following thrust areas in the CSR Policy:
i) Healthcare / Medical Facility
ii) Skill Development / Empowerment
iii) Community Development
iv) Education / Knowledge Enhancement
v) Infrastructure Development
vi) Environment Protection
vii) Others as may be decided
The Board, on the recommendation of the CSR Committee, approved the CSR spending, apart from others, for financing / re-financing of maintenance of infrastructure facilities of the hospital (healthcare) and medical college (education) by Zydus Foundation, a section 8 and wholly owned subsidiary company, which runs hospital and medical college at Dahod, Gujarat.
The foundation provides hospital services to patients and education-related facilities to medical students. The objective of ZF includes, amongst others, helping the marginalized and economically weaker sections people of society.
CSR Committee
Pankaj R. Patel, Chairman of the CSR Committee, Non-Executive Chairman; Dr. Sharvil P. Patel, Member of the CSR Committee, Managing Director and Ms. Dharmishtaben N. Raval Member of the CSR Committee Independent Director
