A. Every Company having:-
(i) Net worth of Rs 500.00 Crore or more during Financial Year or
(ii) Turnover of Rs 1000.00 Crore or more during Financial Year or
(iii) Net profit of Rs 5 Crore or more
Shall constitute the corporate social Responsibility committee.
B. The Committee Consist of Minimum 3 director out of which 1 shall be independent director.
-Provided that an unlisted company or private company which is not require to appoint independent director shall have CSR Committee without the such director.
-Provided that a private company having the 2 director on its board shall have CSR Committee with such 2 director.
C. Every Company which ceases to follow the above 3 condition for 3 Consecutive financial year shall not be require to follow the provision of sec 135.
II. Schedule VII –Activity on which amount is to be spend treated as CSR.
In Detailed Schedule VII as per company act 2013
♦ Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water:
♦ Especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
♦ Promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
♦ Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water;
♦ Protection of national heritage, alt and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts:
♦ Measures for the benefit of armed forces veterans, war widows and their dependents;
♦ Training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;
♦ Contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women;Online GST Certification Course by TaxGuru & MSME- Click here to Join
♦ Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Govemment.
♦ Rural development projects.”
|Shortcut to Remember
|(i) Bhuke to Khana Deke
(ii) Education ko Badati hai
(iii) Gender Equality ko
(iv) Child Mortality ko
(v) Malaria ko Kam krke
(vi) Environment ko Sustain Banati hai
(vii) Vocational Skills ko Bda ke
(viii) Business project Badati hai
|Extreme Hunger and Poverty.
Promoting the Gender Equality
Reducing the Child Mortality
Combating with the Human Immune
Deficiency virus Like AIDS,Malaria
Ensuring Environmental Sustainability
Promoting the Vocational Skills
Enchancing the Business Projects
Following Expenditure are not treated as a CSR
i) Any amount Contributed to political party is not treated as a CSR.
(ii) Any project/Programme which benefits the employees or their family is not treated as CSR.
(iii)Any activity undertaken by company during the normal course of business is not treated as CSR.
How much amount is to be spend on CSR
Atleast 2% of average net profit made by company in preceding 3 financial years.
Net profit means
Profit before Tax xxx
(-) Foreign Subsy/Branch Profit (xxx)
(-) Dividend rec from company which is (xxx)
Covered under the provision of Sec 135
Total Net Profit xxx
If company not spend the amount on CSR then Board of Directors shall specify the reason for not spending the amount on CSR on its Report i.e. Board Report