GL BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH

Plot No-2, Knowledge Park-III, Greater Noida

Subject Name: Corporate Governance & Business Ethics

Winter Assignment: “PATANJALI”

Submitted By: Submitted To:

Tushar Gupta GM17208 Komal Kapoor

Sourabh Awasthi GM17196

Vaishnavi Walia GM17213

Swati Maan GM17202

1. Analyze the current level of ethics adopted by the organization based on their
code of conduct in the industry. For this it is expected that reports and news
about the organization would be collected from Economic Times, Wall Street
Journal, and OECD.

Yoga pause? Ramdev's Patanjali is caught in 6 body locks

NEW DELHI: Patanjali Ayurved could be far from overtaking India's FMCG market leader
Hindustan UnileverNSE 0.39 % as Baba Ramdev desires. In April last year, Ramdev said
Patanjali's target was Rs 20,000 crore to Rs 25,000 crore turnovers in the next three to five years.
But it seems the company is far from the ambitious finishing line. It closed the last financial year
at around the same level as the previous fiscal year’s revenue, Rs 10,000 crore.

However, there could be a bigger worry for Patanjali than flat revenues. According to a recent
Credit Suisse report, consumer offtake has declined in many product categories. While the
company continues to hold sway over toothpastes with Dant Kanti, and in ghee, incremental
gains in these categories are said to have declined. "Patanjali is facing headwinds with FY18
sales growth flat YoY after a 100% CAGR for the past four years. Several categories are seeing
declining offtake levels, most prominent among them being honey and hair care. Even strong
segments such as toothpaste are seeing market shares plateau," says the report.

1. Brand fatigue setting in due to the lack of renovation

2. Inability to crack general trade distribution
3. Dilution of the ayurvedic credentials due to excessive extension
4. Strong competitive response from large companies with their own Ayurvedic offerings
5. Sharp drop in advertising spends by the company
6. Low media coverage of Patanjali

Read more at:

//economictimes.indiatimes.com/articleshow/65340177.cms?utm_source=contentofinterest&
utm_medium=text&utm_campaign=cppst

Conclusion: This news from Economics Times describe the ethical behavior of Patanjali that it
created its brand image from Yoga with the help of brand ambassador Baba Ramdev and using
it Patanjali branding, Although consumer offtake has declined in many product
categories.
2. Analyze the CSR initiatives adopted by the organization and how it has been
useful in better corporate financial performance.

Corporate social responsibility

Introduction:
Patanjali is working towards a better nation, healthier society and wealthier farmers. It
personifies the essence of Corporate Social Responsibility because profits of Patanjali Ayurved
Ltd are not for any individual but are for the betterment of the society.
This theme is reflected in the every aspect of our working and management. Our focus area are
education and healthcare.

CSR Budget
The total budget for the CSR projects is decided by the CSR Committee in accordance with
applicable provisions of the Act and the CSR Rules.

Activities:
· Kushthrogi
· Research and development
· Patanjali Gramodyog
· Patanjali Food Research

Focus Area:
Modern Education through Gurukul System
· For girl child
· For poor students
Healthcare
· Facilities
· Research and Development

Monitoring Mechanism:
To ensure transparency and effective implementation of the CSR programs undertaken by PAL,
a robust monitoring mechanism will be instituted, providing for periodic monitoring at multiple
hierarchies using following indicative means:
· Monthly Progress Report
· Quarterly Progress Report
· Video Conferencing Site
· Visits Documentary evidence including photographs, films and videos.
· Other in – house monitoring mechanisms, as determined by Work Centre CSR Review
Committee/CSR Task Force at Corporate Office.
Approach:
1. Working through trusts, societies established by Patanjali Ayurved Ltd.
2. Collaborating with various organization, registered as Trust or Section 8 company under the
Companies Act, 2013 or Society or NGOs or any other form of non-profit entity incorporated
in India that specialize in activities covered under our focus area.
3. Contribution to various funds which are aligned with our Vision and Mission e.g.

· Prime Minister’s National Relief Fund

· Any other fund set up by the Central Government for :
 socio-economic development and relief.
 for the welfare of Scheduled Castes, the Scheduled Tribes, other Backward classes,
minorities and women

3. Critically evaluate the leadership style of the CEO, Chairman and MD on

their ethical values and corporate conduct. Discus the core leadership values
that have been imbibed by them.

Yogrishi Swami Ramdev Ji

Yogrishi Swami Ramdev Ji was born to Smt. Gulab Devi and Shri Ram Niwas in a village of
Haryana. He had his early education in a village school. At the age of 14 he was admitted to the
Gurukul at Kalwa (near Jind, Haryana) where under the blessed tutelage of Acarya Shri Baldevji
he studied Sanskrit and Yoga, and earned a postgraduate (Acarya) degree with specialization in
Sanskrit Vyakaraṇa, Yoga, Darsana, Vedas and Upaniṣads, later he was very much inspired by
the life and writings of Maharṣi Dayanand Saraswati and he thoroughly studied Satyartha
Prakasa, RG Vedadi Bhasya Bhumika etc. Along-side the magnetism of Maharsi. Patanjali as an
exponent of Yoga, Sanskrit Grammar and Ayurveda continued to exert its influence on him.He
has explained in detail the benefits accruing from yoga in his two popular hindi books on the
subject: 1. Yoga Sadhana evam Yoga Chikitsa Rahasya, 2. Praṇayama Rahasya
 Acharya Balkrishna Ji
Acharya Balkrishna Ji (born 25 July, 1972), a multi-faceted personality, is a popular authority on
Ayurveda and a renowned medicinal plant expert. He is a companion of Swami Ramdev who is
known for Yoga Revolution in the World and a founding pillar of Patanjali Yogpeeth and Divya
Yoga Madir (Trust). He is a man who has uplifted the spiritual tradition of ancient saints.
Acharya Balkrishna Ji is a renowned scholar and a great guide under whose guidance and
leadership Ayurvedic treatment and research has touched new dimensions. Indians regard
Acharyaji as an empowerer of Ayurvedic system of medicine. His efforts have significantly
contributed to the social, cultural, educational and economic aspects of India along with the
establishment of remarkable standards in the domains of literature and therapy at a global level.

4. Provide a critical evaluation of the Board of Directors of the company with

respect to their composition, expertise, experience and how it has helped the
company achieve its success.

PATANJALI AYURVED LIMITED wants to conduct its affair in fair and transparent manner
by adopting the highest standards of professionalism, honesty, integrity and ethical behavior. The
honesty, integrity and sound judgment and performance of the Directors and the Senior
Management are key criteria for the success and for building a good reputation of the Company
also it can help Management/employees to increase their commitment towards the organization.
Therefore, the Company has made this policy to comply with the formal annual evaluation made
by the Board of Directors of its own performance (self-appraisals) and that of its committees and
individual Directors as mentioned under the provisions of 134(3)(p) of the Companies Act,
2013. The Nomination & Remuneration Committee shall evaluate the performance of each
Board of Director as per subsection (2) of Section 178 and based on the functions of the Board of
Directors as indicated under Schedule IV (as per section 149) annexed to the Companies Act,
2013 and the Rules made there under.
OBJECTIVE:
This Policy aims to:

 Ensure compliance of the applicable provisions of the Companies Act, 2013 (as amended or
re-enacted from time to time) relating to the evaluation of performance of the Directors and
the Board.
 Manage the affairs of the company in transparent manner.
 To adopt the ethical business policies.
 To strive for promoting healthy competition in the market and thereby to sustain the interest
of the consumers.
 To implement good corporate governance.

Meet the trimurti that drives Baba Ramdev's Patanjali

Three key functions—business development, daily functioning and supply chain—are managed
by three persons close to Ramdev. We profile them below :

Balakrishna, the brain

A confidant of Baba Ramdev, Acharya Balkrishna holds a 94% stake in Patanjali Ayurved, but
he doesn't take home a salary. Yet, he works for 15 hours a day, even on Sundays and other
holidays during the year. He claims he hasn't taken a single day's leave.

He works daily from 7 am to 10 pm through the week. He says he is doing the job of five people.
When he began the journey 10 years ago on personal loans, Balkrishna didn't think Patanjali
would come this far.

Bharat, the backroom boy

Ram Bharat, the younger brother of Ramdev, avoids limelight and does not like to be
photographed. He is said to be the backroom boy of Patanjali, taking care of all of its day-to-day
operations. He is a self-effacing man and does not claim to be in any important position in the
company. He says he is just part of the team and a mere sevak (servant).

"Bharat handles the daily operations and manages most of the running around, and is actually the
backend of the company while Baba and Acharya strategise on the company's growth vision,"
Abneesh Roy of Edelweiss Securities told ET last year after visiting the Patanjali headquarters.

Aditya, the long arm

This 30-year-old entrepreneur from King’s College London and CEO of the Pittie Group has
taken Patanjali places. Patanjali was a niche brand before Pittie stepped in and put it on shelves
all over India. As sole distributor of Patanjali products, Pittie played a big role in putting
Patanjali in the league of India's FMCG giants.
5. Evaluate the key learning from Kumar Mangalam Birla Committee report,
Narayan Murthy report on corporate governance and Uday Kotak report on
corporate governance.

Corporate governance is a concept, rather than an individual instrument. It includes debate on the
appropriate management and control structures of a company. It includes the rules relating to the
power relations between owners, the board of directors, management and the stakeholders such
as employees, suppliers, customers as well as the public at large.

Corporations around the world are increasing recognizing that sustained growth of their
organization requires cooperation of all stakeholders, which requires adherence to the best
corporate governance practices. In this regard, the management needs to act as trustees of the
shareholders at large and prevent asymmetry of benefits between various sections of
shareholders, especially between the owner-managers and the rest of the shareholders.

In India, corporate governance initiatives have been undertaken by the Ministry of of Corporate
Affairs (MCA) and the Securities and Exchange Board of India (SEBI). The first formal
regulatory framework for listed companies specifically for corporate governance was established
by the SEBI in February 2000, following the recommendations of Kumarmangalam Birla
Committee Report. It was enshrined as Clause 49 of the Listing Agreement. Further, SEBI is
maintaining the standards of corporate governance through other laws like the Securities
Contracts (Regulation) Act, 1956; Securities and Exchange Board of India Act, 1992; and
Depositories Act, 1996.

The Ministry of of Corporate Affairs had appointed a Naresh Chandra Committee on Corporate
Audit and Governance in 2002 in order to examine various corporate governance issues. It made
recommendations in two key aspects of corporate governance: financial and non-financial
disclosures: and independent auditing and board oversight of management. It is making all
efforts to bring transparency in the structure of corporate governance through the enactment of
Companies Act and its amendments.