Corporate Social Responsibility (CSR)

(Pursuant to section 135 read with Companies (Corporate Social Responsibility Policy) Rules, 2014

Applicability on every company including branch office or project office of foreign companies

  • Net Worth of Rs.500 Crore or more,  OR
  • Turnover of Rs. 1000 Crore or more,  OR
  • Net Profit or Rs. 5 Crore or more

During immediately preceding financial year

CSR Activities

CSR activities shall include activities in below areas or subject related to following:-

  • Eradicating hunger, poverty, malnutrition, sanitation, etc
  • Promoting education especially among children and women, gender equality, reduce inequality among backward groups.
  • promoting gender equality, empowering women or allied activities
  • ensuring environmental sustainability, ecological balance, protection of flora and fauna
  • contribution to Clean Ganga Fund set up Central Government
  • protection of national heritage, art and culture including restoration of buildings of historical importance and works of art.
  • Promotion and development of traditional arts and handicrafts
  • measures for the benefit of armed forces of veterans, war widows and their dependents
  • Promotion of Rural Sports, nationally recognised sports, paralympic sports and olympic sports
  • Contribution to PM National Relief Fund or other fund set up by the Central Government for social and economic development
  • Contributions to technology incubator approved by CG.
  • Rural Development projects.
  • Slum Area Development
  • Disaster Management

Modes of Conducting CSR Activities & Restrictions/Limitations there of

MODES

CSR ACTIVITIES MAY BE CONDUCTED THROUGH

  • a company established under section 8 of the Act, or
  • a registered trust, or
  • a registered society

established by the company, either itself or along with any other company

OR

established by the Central Government or State Government or any entity established under an Act of Parliament or a State legislature.

OR

Can be conducted through Section 8 company or trust or society (other than above) but condition is:-

  • It shall have an established track record of three years in undertaking similar programs or projects.
  • the company has specified the projects or programs to be undertaken, the modes of utilisation of funds of such projects and programs and the monitoring and reporting mechanism.

COLLABORATION WITH OTHER COMPANIES

  • CONDITION
  • CSR committees of the respective companies, are in position to report separately on such projects or programs.

UNDERTAKE CSR ACTIVITIES ON THEIR OWN AS WELL AS THROUGH IMPLEMENTING AGENCIES THROUGH INSTITUTIONS

  • CONDITION
  • having established track record of at least 3 financial years .
  • Such expenditure along with expenditure on administrative overheads shall not exceed 5% of total CSR expenditure in one financial year.

LIMITATIONS:-

  • The CSR activities/programs/projects undertaken in India only, be considered as CSR expenditure.
  • Contribution to political party shall not be treated as CSR Activity.

The CSR activities/programs/projects that benefit the employees and their families of the company shall not be considered as CSR activities

Non Applicability

If a company ceases to fulfill the criteria of applicability, for a period of consecutive three financial years, the company will not be required to have a CSR Committee and incur expenditure on CSR activities.

Penalty

Fine to company – Rs. 50,000 to Rs. 25 lakh

Every officer in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

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