PREAMBLE
Corporate Social Responsibility is strongly connected with the principles of Sustainability. An organization should make decisions based not only on financial factors, but also on the social and environmental consequences. Therefore, it is the core corporate responsibility of Patanjali Ayurved Limited to practice its corporate values through its commitment to create a healthier society and coutry. Patanjali will act as a good corporate citizen, making CSR, a key business process. 

GUIDING PRINCIPLES 

PATANJALI recognises and is always committed towards sustainable development and inclusive growth. We strive to ensure strong corporate culture which emphasizes on integrating CSR values with business objectives. We also pursue initiatives related to quality management, environment preservation and social awareness.

DEFINITIONS
“Act” means the Companies Act, 2013 and the Rules framed thereunder, including anymodifications, amendments, clarifications, circulars or re‐enactment thereof.
“Board” means Board of Directors of the Company.
“Company” means Patanjali Ayurved Limited.

OBJECTIVES OF THE POLICY/ CSR VISION

• Improving nutrition awareness of Communities.
• Making India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the world.
• To protect the environment, make the business as an environment friendly and to ensure environment sustainability. 

SCOPE OF CSR POLICY
The policy would pertain to all activities undertaken by the Company towards fulfilling its corporate social responsibility objectives. The policy would also ensure compliance with section 135 of the Companies Act, 2013, Schedule VII of the Companies Act, 2013 and the rules made thereunder. 

COMPOSITION 

Composition of Committee shall be:

1. Shree Rakesh Mittal Ji : Chairman ( Executive MDirector)
2. Shree Ajay Kumar Arya Ji :  Member (Independent Director)
3. Sumedha :   Member ( Woman cum Independent Director) 

CSR ACTIVITIES
The committee shall carry out following activities under this policy::

1. Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;

1. Eradicating hunger, poverty and malnutrition, promoting, health care and sanitation including contribution to the Swach Bharat Abhiyan set up by the Central Government of the promotion of sanitation.

1. Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water;

1. Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts.,

1. Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes and other facilities for senior citizens.

IDENTIFICATION OF PROJECTS

1. While all the CSR programs are focused in India, the company shall give preference to the local areas near its manufacturing facilities and its Corporate Office and its subsidiaries.

1. The projects or programs shall not be undertaken in pursuance and part of the normal course of business.

1. The activities shall not include activities exclusively for the benefit of its employees and their family members and shall rather be for the benefit of public at large.

CSR THROUGH REGISTERED TRUST, SOCIETY, OTHERWISE 

The Board of Directors of the Company may decide to undertake CSR activities             approved bythe CSR Committee, through a registered trust or a registered society or a company establishedby the Company or its holding or subsidiary or associate company under section 8 of the Companies Act 2013 or otherwise. Provide that:

• If such trust, society or company is not established by the Company or its holding or subsidiary or associate company, it shall have an established track record of 3 (three) years in undertaking similar programs or projects;

• the Company has specified the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism.    

RESORCES

A specific budget is allocated for CSR activities for every financial year which shall be complying with the legal limits defined in Companies Act 2013 which presently is two per cent of the average net profits of the company made during the three immediately preceding financial years.

Budget for expenditure to be incurred on the focused activities to be covered,to achieve the aforesaid goal, would be decided by the CSR Committee from time to time.

The Corpus of the CSR activities would include the following amounts:

1. 2% of the average net profits
2. Any income arising therefrom and
3. Surplus arising out of CSR activities

The surplus arising out of the CSR activities will not be a part of business profits of the Company.

CSR COMMITTEE & ITS MEETINGS 

• CSR Committee – In compliance with the provisions of section 135 of the Act, a CSR Committee has been constituted by the Board. CSR Committee at all times comprise a minimum of 3 directors out of which at least 1 director would be an Independent Director. Constitution of the CSR Committee can be changed by the Board from time to time.

• Frequency of Meetings – the Committee will meet as and when required. 

• Quorum-  Minimum of two Members shall form the Quorum.

• Invitees –CSR Committee may at its discretion invite Associates/others, to attend and participate at the meeting.

• Secretary –The Company Secretary of the Company will act as a Secretary to the Committee.

• Resolutions – All decisions shall be taken by simple majority. In case of equality of votes on any matter, Chairman shall have a casting vote. The CSR Committee can also pass the resolution by circulation.

• Minutes – Minutes of the proceedings and resolutions of the CSR Committee meetings shall be signed and confirmed by the Chairman of the meeting. Minutes so signed and confirmed shall be conclusive evidence of such proceedings and resolutions.Minutes of all Committee meetings will be open for inspection at any reasonable time on reasonable notice by any member of the Board of Directors of the Company. 

ROLE AND DUTIES OF CSR COMMITTEE 

1. Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the CSR activities to be undertaken by the company.
2. Preference to be given to the local areas in its CSR Activities.
3. Recommend the amount of expenditure to be incurred on the each activity.
4. Fix the time schedule to complete the each CSR Activity.
5. Any other activity (ies) function as may be assigned by the Board from time to time. 

COMPLAINCE AND MONITORING 

The CSR committee shall have power to constitute such sub-committees as it may deem appropriate for the following:

• Implementation of the projects as may be approved or recommended by the CSR Committee.
• To monitor the CSR projects / programmes. 

COVERAGE OF THE POLICY  

The CSR activities should not be exclusively for the benefit of employees of the Company or their family members. 

AMENDMENTS

CSR Policy would be subject to revision/ amendment by the Board of Directors of the

Company based on the recommendations of the CSR Committee or else in accordance with the guideline on the subject as may be issued, from time to time.  

REPORTING

The company reports about its CSR activities along with its annual report. The information is also available on public domain and on company website.

REVIEW

This policy is framed pursuant to the provisions of the Companies Act 2013 and rules there under. In case of any subsequent changes in the provisions of the Companies Act 2013 or any other regulations which makes any of the provisions in the policy inconsistent with the Act or regulations, then the provisions of the Act or regulations would prevail over the policy and the provisions in the policy would be modified in due course to make it consistent with law.

This policy shall be reviewed by the CSR Committee as and when any changes are to be incorporated in the policy due to change in regulations or as may be felt appropriate by the Committee. Any changes or modification on the policy as recommended by the Committee would be given for approval of the Board of Directors.

IMPLEMENTATION 

The Committee may issue guidelines, procedures, formats, reporting mechanism and manuals in supplement and for better implementation of this policy as considered appropriate.

The Committee may Delegate any of its powers to one or more of its members.