(Companies Act 2013)

By
Sibani Swain
Economic Advisor
Ministry Of Corporate Affairs



What is CSR
CSR in Companies Act-2013
CSR Committee
Mandatory Disclosure(Boards Report)
Schedule VII
Educating Voters
CSR Rules


Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local
community and society at large
Lord Holme and Richard Watts

Corporate social responsibility encompasses not only what companies do with
their profits, but also how they make them. It goes beyond philanthropy and
compliance and addresses how companies manage their economic, social, and
environmental impacts, as well as their relationships in all key spheres of
influence: the workplace, the marketplace, the supply chain, the community, and
the public policy realm.
Harvard University


Companies Mandated to constitute a CSR Committee
Networth of Rs 500 Crore or more
Turnover of Rs 1000 Crore or more
Net profit of Rs 5 Crore or more
CSR Committee to have
Three or more directors
At least one is to be an independent director
Boards Report shall disclose the constitution of CSR Committee
CSR Committee will
Formulate CSR policy and recommend to board indicating the activities
to be undertaken as specified in schedule vii
Recommend the amount of expenditure to be incurred
Monitor CSR Policy from time to time


Board of Directors will
Approve CSR Policy
Ensure implementation of CSR policy
Disclose the contents of CSR policy in the Board report
Place the same on companys website, if any
Ensure CSR spending amounting to at least 2% of the average
net profit of the preceding three financial years
Boards Report shall specify the reasons for not spending the
specified amount
There is no penalty for failure to spend 2% of net profit on CSR
Eradicating extreme hunger & poverty
Promotion of education
Promoting gender equality and empowering women
Reducing child mortality and improving maternal health
Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and
other diseases
Ensuring environment sustainability
Employment enhancing vocational skills
Social business projects
Contributions to Prime Minister Fund or any other fund set up by the Central Government or the
State Governments for socio-economic development and relief and funds for the welfare of the
Scheduled Caste and Schedule Tribe
such other matters as may be prescribed

Thrust is on Womens participation in Electoral Process
Activities included in schedule VII of the Act covers Gender equality
and Womens empowerment
Corporates are free to formulate CSR policy including
projects/programme to be undertaken, amount to be spent,
community/geographical area to be covered etc.
The Act provides that the company shall give preference to the local
areas
Specifies operational provisions of the CSR policy
Hosted on MCAs Website on 9
th
September,2013 for inviting Public
Comments
Includes provisions for implementing agencies, pooling of resources by two
or more corporates, CSR coverage etc. as well as format for reporting
Feedback Received on Number of issues including
Activities covered under schedule VII
Tax exemption on CSR spending
Composition of CSR Committee
CSR rules are being finalized after taking into account stakeholders
comments.