Question : Inclusion of Pharma Companies under CSR

(a) the salient features of the Corporate Social Responsibility (CSR);
(b) the details of the funds sanctioned, allocated and utilized under CSR during the last three years and the current year, State/ UT-wise including West Bengal, Gujarat and Maharashtra;
(c) the details of the number of works done/being done under CSR so far along with their result;
(d) whether the Government is planning/proposing to include Pharma Companies under CSR; and
(e) if so, the details thereof and the reasons therefor?.

MINISTER OF STATE FOR LAW AND JUSTICE
AND CORPORATE AFFAIRS (SHRI P. P. CHAUDHARY)
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(a) to (e): Every company (including Pharma companies) having net worth of Rs. 500 crore or more or turnover of Rs. 1000 crore or more or net profit of Rs. 5 crore or more during 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 salient features of CSR provision inter-alia, are as under:
(i) Each such company is required to have its own CSR policy;

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(ii) Each such company to constitute a CSR Committee of the Board which shall provide mechanism for monitoring CSR activities while the Board is empowered to identify, implement and monitor its CSR activities.
(iii) Board''s report to members shall mention about details of CSR activities undertaken by the company or specify reasons for not spending or under spending.
(iv) CSR activities may be undertaken by a company itself or through implementing agencies established under section 8 of the Act or a registered trust or a registered society having a track record of undertakings such activities for three years. In case the implementing agency is established by the company itself or by the Central or State Government, the requirement of having a three year track record does not apply.
(v) CSR committee shall institute a transparent monitoring mechanism for implementation of the CSR projects or programs or activities undertaken by the company.
(vi) The expenditure on administrative overhead for undertaking the CSR activities shall not exceed 5% of total CSR expenditure of the company in one financial year.

The details of CSR expenditure, State/UT-wise (including West Bengal, Gujarat and Maharashtra) for the years 2014-15, 2015-16 and 2016-17 and the sector-wise expenditure on CSR are at Annexure A & B respectively.

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