Corporate Social Responsibility [Companies Act 2013]
Applicability:
For Companies whose:
Net-worth exceeds Rs. 500 Cr OR
Turnover exceeds Rs. 1000 Cr OR
Net Profit exceeds Rs. 5 Cr.
The Co. shall spend minimum 2% of its average net profit during a block of three years. Net profit means Profit before tax
CSR Committee:
A CSR committee to be formed with our present directors as the committee directors.
MCA vide its notification dated 27.02.2014 has permitted CSR Implementation through Trust/Society. As per the notification, the Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under section 8 of the Act or otherwise.
Note: (1) The CSR activities shall be undertaken by the company, as per its stated CSR Policy, as projects or programs or activities (either new or ongoing), excluding activities undertaken in pursuance of its normal course of business. (2) The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under section 8 of the Act [Section 25 of old Co.s Act] or otherwise: Provided that- (i) if such trust, society or company is not established by the company or its holding or subsidiary or associate company, it shall have an established track record of three years in undertaking similar programs or projects; (ii) The company has specified the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism. (l) A company nay also collaborate with other companies for undertaking projects or programs or CSR activities in such a manner that the CSR committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules.
FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIf,S TO BE INCLUDED IN
THE BOARD'S REPORT:
1. A brief outline of the company's CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs
2. The Composition of the CSR Committee.
3. Average net profit of the company for last three financial years
4. Prescribed CSR Expenditure (two per cent. Of the amount as in item 3 above)
5. Details of CSR spent during the financial year.
6. (a)Total amount to be spent for the financial year;
(b) Amount un-spent , if any;
(c) Manner in which the amount spent during the financial year is detailed below
The Board of Directors of the company shall, after taking into account the recommendations of CSR Committee, approve the CSR Policy for the company and disclose contents of such policy in its report and the same shall be displayed on the company's website.
Reference used: Relevant paras of: Companies (Corporate Social Responsibility Policy Rules 2014. Rules effective w.e.f 1st Day of April, 2014. Notification in this regard dated 27th Feb 2014.
