Lok Sabha Question No. 3527 (UNSTARRED), answered on 2018-03-16
Subject: Compliance of CSR
Ministry: CORPORATE AFFAIRS
Asked by: DILIP KUMAR MANSUKHLAL GANDHI

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 3527 ANSWERED ON FRIDAY THE 16th MARCH, 2018/ PHALGUNA 25, 1939 (SAKA)

COMPLIANCE OF CSR

## QUESTION

3527.  SHRI DILIPKUMAR MANSUKHLAL GANDHI:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether  the  private  companies  and  Multi-national  Companies  (MNCs)  are  insensitive towards the society and spent very meagerly of their Corporate Social Responsibility (CSR) funds since 2015 till date;
- (b) if so, the details thereof indicating the names of the private companies and MNCs and the fund spent by them, year-wise;
- (c) the action taken by the Government against such private companies and MNCs; and
- (d) whether any concrete steps have been taken by the Government to make these companies responsible towards the society?

## ANSWER

THE MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS                                                                            (SHRI P. P. CHAUDHARY)

विधि और न्र्ार् एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री पी॰ पी॰ चौिरी )

(a) to (d) :   Section 135 of the Companies Act, 2013 ('the Act') mandates every company, including Multi-national Companies (MNCs), above the specified thresholds of turnover, or net worth, or net profit, to spend at least two per cent of the average net profits earned during the three immediately preceding financial years, on Corporate Social Responsibility (CSR) activities specified in Schedule VII  of  the  Act.  The  details  of  amount  spent  on  CSR  as  per  filings  made  by  companies  upto 30.11.2017 in the MCA21 registry for the years  2015-16 and 2016-17, is given in the Table below : CSR expenditure for the two Financial Years

| Financial Years   | Financial Years                  | 2015-16                           | 2015-16                        | 2016-17                           | 2016-17                        |
|-------------------|----------------------------------|-----------------------------------|--------------------------------|-----------------------------------|--------------------------------|
| Sl. No.           | Company Type                     | No. of companies reported for CSR | CSR Expenditure (in Rs. Crore) | No. of companies reported for CSR | CSR Expenditure (in Rs. Crore) |
| 1                 | PSUs                             | 397                               | 4163.09                        | 132                               | 1325.83                        |
| 2                 | Other Companies (including MNCs) | 18787                             | 9664.77                        | 6154                              | 3393.17                        |
|                   | Total                            | 19184                             | 13827.86                       | 6286                              | 4719.00                        |

Ministry has launched National CSR Data Portal on 19.01.2018 (www.csr.gov.in) which provides details of CSR eligible companies and their CSR expenditure.    Whenever violation of compliance of relevant provision of the Act regarding CSR is reported, the penal action under section 134 (8) of the Companies Act, 2013 is resorted to.

The Ministry has organized workshops throughout India to sensitize corporates for effective compliance of CSR provisions.

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