Supreme Group of Industries (SGI) has invested in diverse projects which impact the lives of people in many ways and create value by helping in overall and holistic development of communities across multiple geographies.

Report to the Board of Directors of Supreme Group of Industries (SGI) Meaning of Corporate Social Responsibility: As per rule 2(d) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, "Corporate Social Responsibility (CSR)" means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Companies Act, 2013 in accordance with the provisions contained in these rules. CSR is a concept whereby companies not only consider their profitability and growth, but also interests of society and the environment by taking responsibility for the impact of their activities on the society, environment and communities in which they operate. CSR aims to fulfil expectations that society has from business and it is viewed as a comprehensive set of social policies, practices and programs that are integrated throughout the business operations. The concept of CSR has evolved over the years and it is now used as a strategy and a business opportunity to earn stakeholders' goodwill. Benefits of Corporate Social Responsibility: Business cannot exist in isolation; business cannot be oblivious to societal development. This has also been highlighted in Section 166(2) of the Companies Act, 2013. The social responsibility of business can be integrated into the business purpose so as to build a positive synergy between the two. Some of the points highlighting the benefits of CSR are depicted below: CSR creates a favourable public image, which attracts customers. Reputation or brand equity of the products of a company which understands and demonstrates its social responsibilities is very high. Customers trust the products of such a company and are willing to pay a premium on its products. Organizations that perform well with regard to CSR can build reputation, while those that perform poorly can damage brand and company value when exposed. Brand equity, is founded on values such as trust, credibility, reliability, quality and consistency. CSR builds a positive image encouraging social involvement of employees-officially or even personally, which in turn develops a sense of loyalty towards the organization, helping in creating a dedicated workforce proud of its company. The company's social involvement may assist in discouraging excessive regulation or intervention from the Government or statutory bodies, and hence gives greater freedom and flexibility in decision-making. The internal activities of the organisation have an impact on the external environment, since the society is an inter-dependent system. A business organisation has a great deal of power and money, entrusted upon it by society and should be accompanied by an equal amount of responsibility. In other words, there should be a balance between authority and responsibility. The atmosphere of social responsiveness encourages co-operative attitude between groups of companies. One company can advise or solve social problems that other organizations could not solve. Companies can better address the grievances of their employees and create employment opportunities for the unemployed. Financial institutions are increasingly incorporating social and environmental criteria into their assessment of projects. When making decisions about where to place their money, investors are looking for indicators of effective CSR management. In a number of jurisdictions, governments have expedited approval processes for firms that have undertaken social and environmental activities beyond those required by regulation. Factors influencing Board's CSR initiative Globalization—coupled with focus on cross-border trade, multinational enterprises and global supply chains — is increasingly raising CSR concerns related to human resource management practices, environmental protection, and health and safety, among other things. Governments and intergovernmental bodies, such as the United Nations, the Organisation for Economic Cooperation and Development (OECD) and the International Labour Organization (ILO) have developed compacts, declarations, guidelines, principles and other instruments that outline social norms for acceptable conduct. Advances in communications technology, such as the Internet, cellular phones and personal digital assistants, are making it easier to track corporate activities and disseminate information about them. Non-governmental organizations now regularly draw attention through their websites to business practices they view as problematic. Consumers and investors are showing increasing interest in supporting responsible business practices and environmental issues. Numerous serious and high-profile breaches of corporate ethics have contributed to elevated public mistrust of corporations and highlighted the need for improved corporate governance, transparency, accountability and ethical standards. However, being ethical and socially responsible by making a positive contribution to society may not be same. Citizens in many countries are increasingly demanding that corporations should meet standards of social and environmental care, no matter where they operate, including their supply chain. There is increasing awareness of the limits of government legislative and regulatory initiatives to effectively capture all the issues that corporate social responsibility addresses. Businesses are recognizing that adopting an effective approach to CSR can reduce risk of business disruptions, open up new opportunities, and enhance brand and company reputation. Effective CSR will depend on the mind set of executives of the corporate who are taking up CSR initiatives. CSR also depends on the implementing agencies with regard to their seriousness, integrity, honesty and attitude.