Question : Implementation of CSR

(a) whether the Government has the details of the CSR fund used for the social cause of the society in last four years and if so, the details thereof;

(b) whether the Government has no role to keep a check on spending of mandatory profit under Corporate Social Responsibility (CSR) by Public and Private Sector Companies in the country, if so, the details thereof and the reasons therefor;

(c) the manner in which the Government unearthed clandestine activities adopted by the companies to get rid of their mandatory spending under CSR;

(d) the number of companies against which the Government has taken penal action for non-compliance of the provisions of the companies Act, 2013 pertaining to CSR during each of the last four years and the current year, Company-wise; and

(e) the details of the funds spent on various projects by the said companies under their CSR during the said period, Project-wise?

MINISTER OF STATE FOR LAW AND JUSTICE
AND CORPORATE AFFAIRS (SHRI P. P. CHAUDHARY)
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(a) to (e) : Every company having networth of Rs. 500 crore or more or turnover of Rs. 1000 crore or more or net profit of Rs. 5 crore or more during
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the immediately preceding financial year shall ensure that company spends, in every financial year, at least 2% of the average net profits of the company made during the three immediately financial years on Corporate Social Responsibility (CSR) activities in areas or subjects specified in Schedule VII of the Companies Act, 2013 (‘Act’). The details of CSR expenditure of such companies including development sector-wise is as per Annexure.

Further, section 135 (3) & (4) of the Act, empower the Board of the company and its CSR Committee to take decisions regarding allocation of CSR funds for items enlisted in Schedule VII of the Act. Whenever violation of CSR provision is reported, the Registrar of Companies initiates action against such non-compliant companies after due examination of records. For the FY 2014-15, prosecution against 254 companies were sanctioned out of which 33 companies have filed application for compounding. In addition to this, Ministry has established Centralized Scrutiny and Prosecution Mechanism in April, 2018 for the financial year 2015-16 onwards on pilot basis for enforcement of CSR provisions.

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