*MAHYCO PRIVATE LIMITED

POLICY ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

* The amendments to the CSR Policy have been recommended by the CSR Committee at its Meeting held on 28^th September, 2020 and adopted by the Board of Directors at its Meeting held on 28^th September, 2020.

# The amendments to the CSR Policy have been approved by the Board of Directors at its Meeting held on 20^th March 2024.

 

I. OBJECTIVE

This policy has been formulated in compliance with Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules 2014 as amended from time to time.

II. HISTORICAL BACKGROUND TO CSR INITIATIVES.

Late Dr. B. R. Barwale, Founder Chairman of Mahyco, had a strong conviction for value-based education which is paramount to the economic and social well-being of the society. The Company respectfully acknowledges his visionary efforts to make available, affordable quality education and medical facility, particularly in the hinterland of Marathwada. His immense contributions in the field of education is truly reflected in thousands of successful students passing out of the educational institutions & most modern eye care Centre at Jalna, which has helped lakhs of eye patients, established and supported by him over the years, and contributing responsibly for building an equitable and prosperous society. His legacy is being carried on by Shri Rajendra B Barwale and the family members, not only in the field of education and eye care, but also by supporting the under-privileged and economically weaker sections of the society and contributing in their growth and development.

III. OUR PHILOSOPHY & VISION.

*Mahyco Private Limited is committed to operate and grow its business in a socially responsible manner with a vision to be an environment friendly corporate citizen. CSR activities at Mahyco Private Limited towards social development will focus on under-privileged sections of the society and with this aim it shall attempt to bring the people into the mainstream by providing them facilities for their education, healthcare and self-employment.

The Company is committed to operate in an economically, socially and environmentally sustainable manner while recognizing the interest of its stakeholders. The aim of CSR Policy is to identify and lend a helping hand to the under-privileged and economically weaker sections of the society and to contribute in their growth and development.

The CSR policy of the Company aims to align its philosophy to initiate measures and pursue socially useful programs with the objectives and activities of CSR as envisaged in the Companies Act, 2013 and the Rules made thereunder. This policy was formulated and recommended by the CSR Committee and adopted by the Board of Directors at its Meeting held on 22^nd September, 2016. The provisions of the policy are as per the provisions of Companies Act, 2013 and Rules made there under. Going forward, the Board may, upon the recommendation of the CSR Committee amend or modify this CSR Policy as and when considered necessary.

IV. CONSTITUTION, COMPOSITION AND TERMS OF REFERENCE OF CSR COMMITTEE.

• The Board of Directors at its Meeting held on 18^th December 2015 constituted the Corporate Social Responsibility Committee as required under Section 135 of the Companies Act, 2013 to decide and monitor the implementation of the projects/programs to be carried out as Corporate Social Responsibility within the purview of Schedule VII of the said Act.


• #The CSR Committee of the Board has been reconstituted with the following Members with effect from 20th March 2024:-

1. Shri. R. B. Barwale (Chairman of the CSR Committee)
2. Shri. Shirish R. Barwale, Director & Member
3. Dr. (Smt) Usha B Zehr, Director & Member
4. Shri Subbarao Appemane, Permanent Invitee without voting rights.

1. In the absence of the CSR Committee Chairman, those members present in the Committee Meeting shall elect one of them to chair the meeting.
2. The Committee may be reconstituted from time to time by the Board of Directors of the Company as and when considered necessary.
3. Minimum of (2) members shall constitute a quorum for the Committee Meeting.
4. The Committee shall meet atleast two times in a year – One meeting in April to June quarter and one in January to March quarter.
5. The Committee
   • shall formulate and recommend the CSR Policy to the Board for approval;
   • shall monitor the Policy from time to time;
   • shall recommend to the Board the amount of expenditure to be incurred by the Company on CSR activities;
   • shall formulate and recommend to the Board the Annual Action Plan including amendments thereto;
   • shall recommend any alteration in the annual action plan at any time during the year and update, if any, required to the CSR Policy;
   • shall identify the activities to be undertaken as per Schedule VII of the Companies Act 2013 and the Rules made thereunder (as amended/modified from time to time)
   • shall be responsible for execution and implementation of the individual projects, which will include modalities of utilization of the CSR funds, and implementation schedules of projects or programmes, monitoring and reporting mechanism for the projects or programmes and details of need and impact assessment for the projects undertaken by the Company.
   • shall carry out any other function as may be mandated by the Board from time to time and/or enforced by any statutory notification;
   • shall approve and execute urgent CSR activities in the nature of disaster relief and inform the Board subsequently of the same;
   • shall recommend the CSR Report to be annexed to the Directors Report to the Board of Directors of the Company.
   • may delegate its responsibility to any of the officer(s) of the Company as and when felt necessary.

V. #CSR ACTIVITIES:

The Company may undertake CSR activities including any projects/activities as may be specified /added/amended/ by the Ministry of Corporate Affairs, Government of India from time to time in this regard and in accordance with SCHEDULE VII read with Sec 135 of Companies Act, 2013.

However, Company will focus its CSR efforts on communities it engages with, through its operations – R&D centers, Processing units, and the key markets supporting social causes enabling them to lead complete, healthy and meaningful lives. The Company will also focus its interventions in following key areas of CSR activities which are aligned with Schedule VII of the Companies Act read with the applicable CSR Rules including but not limited to: -

1. Health, nutrition
2. Education, livelihood
3. Environment / Water
4. Technology dissemination

Company CSR initiatives in the above areas will also help to contribute to Sustainable Development Goals (SDGs) of United Nations, particularly SDG 1, 2, 3, 4 and 6, 8, 11 in varying degrees making the world a better place for tomorrow.

The CSR Committee may also execute and implement CSR programs of subsidiaries and / or its group companies and report to the Board of the respective companies' status of their CSR programs and their implementation.

VI. AMOUNT OF EXPENDITURE TO BE INCURRED ON THE CSR ACTIVITIES:

The Company will endeavor to spend the following amounts for CSR activities in pursuance of this Policy:

1. In every financial year, at least two percent of the "average net profits" of the Company made during the three immediately preceding financial years. The "average net profits" shall be calculated in accordance with the provisions of section 198 of the Companies Act, 2013 and the rules made there under from time to time.
2. Any Surplus arising out of CSR activities/Projects/Programs shall be used only for CSR.
3. In the absence of Net Profits in any financial year, the Company may endeavor to spend such feasible amount as it may decide subject to the approval of the Board of Directors of the Company.
4. #Any amount spent in surplus of the requirements in any financial year shall, with the approval of the Board, be set-off against the CSR liability of the succeeding financial year(s)as may be permitted from time to time as per the provisions of the Companies Act 2013 read with the Rules thereunder.

VII. #MODALITIES OF EXECUTION/IMPLEMENTATION:

1. The CSR activities shall be undertaken by the Company as per this Policy. The Company will undertake CSR activities as stated in the Annual Action Plan with their execution modalities and implementation schedules as approved by the CSR Committee from time to time in accordance with the powers delegated by the Board.
2. The CSR Committee may, under the above areas, identify and recommend to the Board "on going project(s)" that requires multiyear implementation but not having timelines exceeding three years excluding the financial year in which it commences and may also designate some of the existing CSR Projects as an "ongoing project" and such ongoing projects shall be selected, implemented, monitored and reported in accordance with the applicable CSR provisions.
3. The Company would implement the CSR programmes through Company personnel, implementation agencies and /or through partnerships with authorized expert agencies, NGOs and Government. In cases where the implementation is through external agencies, the CSR Committee would monitor the implementation.
   
   

While identifying the CSR projects, following broad criteria will be kept in mind for evaluating the projects for shortlisting:-

• To be in the CSR focus areas of the company and its CSR Policy.
• To be with in geographical area of the operations of the company
• Duration of the project – medium term of over one year and less than three years preferred.
• Clear quantified measures of impact on the targeted groups
• Ability for employees to engage and participate in projects through time contribution.
  
  

In addition, the Company will encourage Employees and their families to actively participate and volunteer their time to such identified projects wherever possible.

VIII. #ROLE OF BOARD:

The role and responsibility of the Board shall include:

1. Approval of the CSR Policy including amendments, if any, when necessary.
2. Approve the CSR budget and the Annual Action Plan for each Financial Year as recommended by the CSR Committee;
3. Review and approve the recommendations, if any, made by the CSR Committee on the CSR Policy and /or the Annual Action Plan, as may be considered appropriate. The Board can delegate to the CSR Committee, the approval of the CSR Projects, within the broad parameters and ceiling limits for CSR expenditure as laid down by the Board from time to time.
4. Ensure that the CSR activities are undertaken as per the CSR Policy and the Annual Action Plan
5. Approve the CSR Report as recommended by the Committee to be annexed to the Directors Report.

#Contribution to bona fide charitable and other funds (DONATIONs)

In addition to implementing CSR projects and programs under Section 135 of the Companies Act, 2013 and rules made thereunder, the CSR Committee is also authorized to contribute upto 5% of the average net profits of the Company for the immediate three preceding financial years to charitable institutions and other funds as "Donations" under the applicable provisions of Section 181 of the Companies Act, 2013.

The Committee may formulate criteria for identifying the charitable and other institutions or causes for which donations can be made, which shall be approved by the Board.

The Committee shall at the end of each financial year or at such periods as may be decided by the Board furnish the details of donations made during the year / year to date.

#Guiding Principles for the Formulation of Annual Action Plan :-

Programs / Activities/ initiatives within the framework of Schedule VII of Section 135 of the Companies Act, 2013.	Upper limit (Rs)	Lower limit (Rs)	Modalities of Execution - Whether Direct/ thru implementing Agency which meets the criteria specified under Rule 4 of the CSR Rules	Implementation Criteria / Schedule	Monitoring, Evaluation and impact	Whether it is an "ongoing project?" If yes, details of the same
1) Health, nutrition
2) Education, livelihood
3) Environment / Water
4) Technology dissemination

#The CSR Committee to decide and execute/implement the CSR projects falling within the above criteria and limits and report/update the same to the BOD at the end of the FY.