MAI PROJECT SAB

Corporate Social Responsibility (CSR) Policy Framework

CSR Philosophy

MAI fosters a culture of caring, trust and continuous learning working as family members while meeting the expectations of stakeholders and society at large. As a responsible Corporate Citizen, the Company contributes towards inclusive growth by empowering communities and catalyzing development.

CSR Themes

The Company will primarily focus on “Building Strong Families” as part the CSR programe which will include, amongst others, the following verticals -

Mental Health - To provide accessible mental health resources and support services for employees and the broader community.

Education - shall ensure equitable access to quality education for underserved and marginalized communities, with a focus on children and adults.

Environment - shall engage with local communities on environmental projects. Also sponsor or participate in initiatives that address local environmental challenges.

CSR Budget

The Board of the company shall allocate at least 2% of the average profit (as required by the Companies Act, 2013)
Incase of any surplus arising out of CSR programs the same shall not form part of business profits of the Company and shall be ploughed back into the same project.
The Company is committed to adhering to the stipulations of the Act and CSR rules concerning the utilization of unspent CSR funds in the context of Ongoing projects.

CSR Governance Structure

The CSR Governance structure is detailed below,

Board Of Directors

CSR Committee

CSR Team

The Board

The Board of Directors of the Company will:

Approve CSR policy of the Company.

Ensure 2% mandatory spend of the average net profit of preceding 3 years.

Carry out activities which will qualify as CSR under Schedule VII of the Companies Act, 2013 and rules relating to CSR, as amended from time to time.

Undertake activities that qualify as CSR under Schedule VII of the Companies Act 2013 and rules relating to CSR, as amended from time to time based on urgency and need arising out of circumstances such as natural disasters and emergencies.

Approve the Annual Action Plan as recommended by the CSR Committee.

Disclose the Composition of CSR Committee, Framework and Policy, approved projects on the Company's website as prescribed under Section 135 of the Companies Act 2013.

Ensure that the company gives preference to the local areas around its operations for spending the amount earmarked for CSR projects.

Ensure that the Social programs undertaken are aligned to the CSR Policy of the Company and CSR funds disbursed have been utilized for the purposes and in a manner as approved.

Also specify reason in its report for not spending the armarked amount incase the Company fails to spend such amount for the fiscal financial year.

Authorize the CSR Committee to undertake urgent CSR activities in nature of disaster relief.

CSR Committee

The Board has formed the CSR Committee in accordance with the requirements of the Act. Responsibilities of CSR Committee:

Formulate and Recommend the CSR Policy to the Board for approval.

Recommend Annual Action Plan to the Board.

Recommend the amount of expenditure to be incurred on CSR programs.

Constitute transparent monitoring mechanism for ensuring implementation of the CSR program.

The Chief Financial Officer or the individual responsible for financial management shall certify that the funds disbursed have been utilized for the purposes and in the manner as approved by the Board.

CSR Team

Responsibilities of CSR Team:

Seek guidance from the Board and CSR Committee regarding policy, budget and implementation guidelines.

Prepare and submit annual action plan to CSR Committee.

Spread awareness regarding approved CSR policy.

Recommend targets and timelines for implementation of developmental initiatives.

Apprise project performance periodically to the Board and CSR Committee.

Facilitate effective implementation of Company's CSR plan different locations.

Implementation

The Company will implement CSR programs in specified areas. The Company will undertake impact assessments, if required.

The duration/period over which a particular program will be spread, will depend on its nature, extent of coverage and the intended impact of the program.

The Company may enter into partnerships with Government, Business partners and Communities to create multiplier effect of its social projects.

The mode of implementation of CSR programs will include a combination of direct implementation or through NGOs, Trusts, Academic institutions, Registered societies etc.

The Company will select its partners after appropriate due diligence and after complying with applicable laws and rules.

The Company may use the services of internal teams, employee vounteers, expert agencies, consultancy firms etc wherever required, for carrying our base-line surveys, guidance on program design and implementation, impact assessment surveys etc.

Monitoring, Evaluation and Reporting

The Company has constituted a mechanism to monitor and report the progress of its CSR programs. As per requirement Impact assessment will be conducted for the mentioned projects.

CSR programs frequency of progress review and monitoring by which entity is given below:

1. Board of Directors - Six-Monthly

2. CSR Committee - Periodic

3. CSR Team - Quarterly

The CSR Committee shall meet periodically as and when required with atleast two meetings of the Committee to be held in a year. The Quorum of the meeting shall be atleast two members.

The CSR Team will ensure effectiveness of CSR programs and spends through third party audits and report to the CSR Committee periodically. It will also ensure the Board Report will include an Annual Report on the CSR activities in the format specified under the Rules. Impact Assessment Reports will also be attached to the Annual report on CSR.

Understood