Corporate Social Responsibility (CSR) Policy

Introduction
Lovexa is not only dedicated to business success but also to making a positive impact on society and the environment. This Corporate Social Responsibility (CSR) Policy outlines our commitment to operate in an economically, socially, and environmentally sustainable manner, while recognizing the interests of all our stakeholders. It provides a framework for how Lovexa integrates social and environmental concerns in our business operations and interactions. This policy is guided by globally recognized CSR principles and, where applicable, complies with Indian CSR regulations (specifically the Companies Act, 2013 and related rules for CSR).
At Lovexa, we define CSR as the responsibility of our company to contribute to social betterment beyond our primary economic activities. We strive to be a good corporate citizen wherever we operate.

CSR Vision and Objectives
Our vision is to drive positive change through our resources, expertise, and reach. The core objectives of Lovexa’s CSR initiatives are:

• To contribute to the sustainable development of communities where we operate, in areas aligned with national and local priorities.
• To ensure environmental sustainability and minimize the ecological footprint of our operations and products.
• To promote a workplace culture of social responsibility among employees, encouraging them to participate in volunteering and giving.
• To engage in ethical business practices that safeguard stakeholder interests (customers, employees, partners, shareholders) and uphold human rights.
• To comply with all mandatory CSR requirements under law (for instance, in India, to undertake and report CSR activities as per Section 135 of the Companies Act, 2013 when the company falls under its ambit).

Applicability
This CSR Policy applies to lovexa.ai and its subsidiaries. It comes into effect once Lovexa meets the criteria specified under relevant laws (for example, in India: having a certain net worth, turnover, or net profit that triggers mandatory CSR as per the Companies Act). Even when not mandatory, Lovexa may voluntarily adopt CSR projects as part of our corporate values.
For Indian operations: if in any financial year Lovexa meets the threshold (net worth of INR 500 crore or more, OR turnover of INR 1000 crore or more, OR net profit of INR 5 crore or more), we will constitute a CSR Committee and spend at least 2% of the average net profits of the preceding three years on CSR activities, in accordance with the law.

Focus Areas of Engagement
Lovexa’s CSR efforts will focus on certain key areas where we believe we can have meaningful impact. These areas are chosen keeping in mind the United Nations Sustainable Development Goals (SDGs), the Schedule VII of India’s Companies Act (which lists permissible CSR activities), and Lovexa’s own values:

1. Education and Skill Development: Promoting education, including special education, and vocational skills especially among children, women, elderly, and the differently-abled. For example, supporting digital literacy programs, scholarships for underprivileged students, or partnering with NGOs to improve school infrastructure and learning outcomes in underserved communities.
2. Healthcare and Well-being: Supporting initiatives that improve health outcomes, such as preventive healthcare camps, maternal and child health programs, nutrition and sanitation projects, mental health awareness, and assistance for differently-abled or elderly populations. We may also contribute to measures for combating epidemics/pandemics or health emergencies (as seen during COVID-19, companies contributed to relief).
3. Environmental Sustainability: Ensuring ecological balance and environmental conservation. This includes tree plantation drives, support for renewable energy or energy efficiency projects, waste management and recycling initiatives, water conservation and clean water projects, and efforts to reduce pollution. Within our operations, we aim to implement green practices (reducing plastic use, sustainable packaging for our products, carbon footprint reduction by optimizing logistics, etc.). We also support biodiversity conservation projects as relevant.
4. Community Development and Poverty Alleviation: Engaging in projects that uplift underprivileged sections of society. This can encompass rural development projects, livelihood enhancement for marginalized communities, women empowerment programs (like self-help groups, micro-entrepreneurship training), and supporting infrastructure development in needy areas (roads, lighting, community centers, etc.). Eradicating hunger, poverty and malnutrition by supporting food distribution programs or community kitchens also falls here.
5. Emergency Relief and Humanitarian Aid: Providing relief and rehabilitation in the face of natural disasters (floods, earthquakes, etc.) or other emergencies. Lovexa will, when possible, donate to or collaborate with relief funds and agencies (for example, contributing to the PM/CM Relief Fund in India or local disaster response NGOs) to aid in emergency response and rebuilding efforts.
6. Employee-Driven Initiatives: Encouraging our employees to volunteer and participate in CSR. We may organize employee volunteering days for community service (like teaching at a local school for a day, participating in cleanliness drives, blood donation camps, etc.). We might also consider matching contributions for employee charity donations or setting up a payroll giving program for interested staff.

While the above are broad focus areas, we remain flexible to undertake any other projects in line with our CSR objectives, especially those listed as valid CSR activities under law (like promoting gender equality, care homes, measures for armed forces veterans, sports promotion, art and culture preservation, and so on) based on societal needs and our strategic decisions.

Governance and CSR Committee
Whenever Lovexa is required to implement CSR as per Indian law, we will form a CSR Committee of the Board. This committee will typically consist of three or more directors (with at least one being an independent director, if applicable). The CSR Committee’s responsibilities will include:

• Formulating and recommending this CSR Policy to the Board and any amendments when needed.
• Identifying and recommending specific CSR projects, along with budgets, to the Board for approval.
• Overseeing the implementation of CSR activities – this could involve selecting implementation partners (like credible NGOs or trusts), setting timelines and targets, and monitoring progress.
• Ensuring that the CSR spending each year meets the mandated 2% of average net profits (if applicable) or as per internal targets if we voluntarily choose a budget.
• Reporting to the Board (and in the annual report) on which projects were undertaken, the amount spent, results achieved, and any unspent amounts with reasons (as per compliance requirements).
• Ensuring compliance with the Companies Act and Rules (for Indian entities), such as transferring any unspent CSR funds to the specified accounts (e.g., Schedule VII funds or an escrow for ongoing projects) as required.

For Lovexa operations outside India or where not legally mandated, the spirit is similar – there will typically be a management-level CSR team or coordinator who plans and executes social initiatives, with oversight from senior leadership. Ultimately, the Board of Lovexa will have oversight of global CSR strategy to ensure alignment with our values and transparency.

Implementation Strategy
Lovexa will implement CSR projects via:

• Direct Programs: We may create and execute projects directly, by dedicating internal teams or resources. For example, conducting a training workshop ourselves or distributing relief materials directly by our staff.
• Collaborations with NGOs/Partners: Often, working with specialized Non-Governmental Organizations (NGOs), community-based organizations, or government programs can maximize impact. We will select partners that have a strong track record, domain expertise, and alignment with our goals. Proper due diligence (checking their credentials, compliance, and impact history) will be done. We may enter into MOUs or agreements clearly outlining the project scope, deliverables, and monitoring mechanism.
• Contributions to Funds: In some cases, we may contribute to recognized funds as part of CSR (such as the Prime Minister’s National Relief Fund, or PM CARES Fund in India, or other funds permitted by law which count as CSR contribution).
• Employee Volunteering: As mentioned, harnessing our workforce enthusiasm through volunteering drives will be part of implementation. While volunteer hours per se may not count as CSR spending, they amplify the impact and foster a culture of giving back.

Each chosen project will have a clear plan – defined objectives, target beneficiaries, timelines, and measurable indicators of progress/success. For example, if we sponsor a digital literacy program for 200 youth in a community, we’d outline how many training hours, expected improvement in IT skills, and perhaps job placements or certifications earned at the end.
We will also consider geographical focus: we aim to support communities local to our offices and operations (to be a good neighbor) as well as other underdeveloped regions of need across India or other countries we operate in. We might prioritize projects in regions where Lovexa’s presence is significant (as a way to give back to that locale), but not exclusively.

CSR Budget and Spending
Each financial year, based on profitability and legal requirements:

• Lovexa’s Board will approve a CSR budget. In India, if mandated, this will be at least 2% of the average net profits of the last three years. Even if not mandated, Lovexa may voluntarily allocate a certain percentage of profits or a fixed amount to CSR reflecting our commitment.
• The budget will be allocated among chosen projects. Administrative overheads for CSR activities will be kept within the limits prescribed by law (for instance, under Indian rules, the administrative overheads should not exceed 5% of total CSR expenditure).
• Any surplus arising out of CSR projects (say, some return from a project or unused material) will be plowed back into CSR funds for further use in CSR and not counted as business profit.
• If for some reason the full budgeted amount is not spent in the year, the reasons will be reviewed by the CSR Committee and appropriate actions taken (e.g., carry-forward to next year’s projects as per law, or transfer to a government fund if required for unspent mandatory CSR in India). Lovexa’s intent is to fully utilize the CSR funds in meaningful projects each year.

Monitoring and Reporting
Monitoring is crucial to ensure that the intended outcomes of CSR initiatives are achieved:

• Each CSR project will have a monitoring plan. This could include periodic progress reports from implementing agencies, site visits by our CSR team, feedback from beneficiaries, and impact assessment studies for major projects.
• The CSR Committee and/or management will review progress at least on a quarterly basis. We will track key metrics (for example: number of beneficiaries served, improvements recorded, funds utilized vs. budget, etc.).
• For large or long-term projects, mid-course corrections might be made if something isn’t working as expected. We value transparency – if a project faces challenges, we acknowledge and address them rather than brushing them under the rug.

Reporting:

• An annual CSR report will be part of Lovexa’s Annual Report (as required by law for Indian entities). This will detail the CSR activities carried out, amounts spent, and results, in the prescribed format. It will be signed by the CSR Committee and Board as needed, confirming that the implementation is as per the CSR Policy.
• We will also share stories and updates about our CSR initiatives on our website and other communication channels. This keeps our stakeholders informed and engaged. It also serves to inspire others and share knowledge.
• Lovexa may also undergo external evaluations or audits of certain CSR projects to verify outcomes and compliance.

Employee and Stakeholder Participation
We believe CSR is most impactful when it’s a company-wide ethos. We encourage:

• Employees: to contribute ideas for social initiatives (we might have an internal idea portal for CSR suggestions), volunteer for causes supported by Lovexa, or even help identify genuine needs in communities that Lovexa could address. We may provide certain allowances for employees who volunteer (like time off for volunteering, or safety and training for volunteer work, etc.).
• Customers: to be part of our CSR journey. For example, we might run occasional cause-related campaigns where a portion of sales in a period goes to a charity, or allow customers to donate reward points or small amounts at checkout to a featured cause which Lovexa will forward to an NGO. We ensure transparency for any such campaigns.
• Partners: to collaborate on CSR. Sometimes our business partners (sellers, suppliers) might want to join hands on a community project – we welcome joint efforts that align with this policy, as long as roles and contributions are clearly defined.

Compliance with Indian CSR Regulations
Since Lovexa operates (or plans to operate) in India, we explicitly state compliance with the Indian CSR mandate when applicable:

• Formation of CSR Committee as required.
• Adherence to the list of activities in Schedule VII of the Companies Act for project selection.
• Not contributing to activities that are not considered CSR under the law (like activities exclusively for employees, or political contributions).
• Filing of the annual CSR report and any other filings (such as Form CSR-2 with the Registrar of Companies, if mandated).
• In case of any changes in the law (for example, a revised definition of CSR or new rules), this policy will be updated to reflect those.

Review of Policy
The CSR Committee will review this CSR Policy at least annually to ensure it remains relevant to current laws and the company’s vision. Changes, if any, will be recommended to the Board for approval. The updated policy will be made available on Lovexa’s website and communicated appropriately.

Conclusion
Lovexa’s commitment to CSR is a fundamental part of our identity. We believe that businesses have an important role to play in addressing social and environmental challenges. By empowering communities, caring for the environment, and operating ethically, we not only enhance our brand and stakeholder trust, but, more importantly, we help create a better world.
Every small step – a child educated, a tree planted, a life saved, a family empowered – counts. And we are proud to take these steps as part of Lovexa’s journey. We invite our stakeholders to support and join us in this mission of holistic and inclusive growth.
For any queries or suggestions related to Lovexa’s CSR initiatives, please contact us at [email protected].