Lok Sabha Question No. 141 (STARRED), answered on 2016-11-25
Subject: Corporate Social Responsibility
Ministry: CORPORATE AFFAIRS
Asked by: KIRRON KHER, NISHIKANT  DUBEY

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 141 ANSWERED ON FRIDAY THE 25th NOVEMBER, 2016/ AGRAHAYANA 4, 1938(SAKA)

## CORPORATE SOCIAL RESPONSIBILITY

## QUESTION

*141. SHRIMATI KIRRON KHER: SHRI NISHIKANT DUBEY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) whether  companies,  both  public  and  private  sector  are  required  to spend certain percentage of their profit on welfare/ development activities, as  part  of  Corporate  Social  Responsibility  (CSR)  and  if  so,  the  details thereof;
- (b) the  funds  utilised  and  major  activities  undertaken  by  various  Public Sector Undertakings (PSUs) and private sector companies under the CSR during the last three years, company type-wise;
- (c) the  number  of  Gram  Panchayats  provided  CSR  funds  under  Sansad Adarsh Gram Yojana, State-wise;
- (d)  whether  instances  of  non-compliance  of  CSR  Policy  Rules,  2014 guidelines have been reported during the above period, if so, the details thereof and the corrective action taken by the Government thereon; and
- (e) whether the Government has stressed the need for efficient implementation of CSR, and if so, the details thereof?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS     (SHRI ARUN JAITLEY)

कारपोरेट कार्य मंत्री ( श्री अरुण जेटली (

(a)

to (e):  A Statement is laid on the Table of the House. *****

STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED  QUESTION  NO.  141  FOR  25TH  NOVEMBER,  2016  REGARDING CORPORATE SOCIAL RESPONSIBILITY.

(a): Section 135 of the Companies Act 2013, mandates every company 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  three immediately  preceding  financial  years,  in  pursuance  of  Corporate  Social Responsibility (CSR).

(b):  An  assessment  of  CSR  expenditure  of  7334  companies,  for  which information  has  been  compiled  for  the  year  2014-15,  indicates  that  142 Public  Sector  Undertakings  (PSUs)  and  2997  Private  Sector  companies together have spent Rs. 8803 crore during 2014-15 as summarised below: CSR Expenditure during 2014-15 (in Rs. Crore)

| Sr. No.   | Company Type             |   Total companies |   No. of Companies with CSR expenditure |   No. of Companies with no CSR expenditure |   Actual CSR expenditure (in Rs. Crore) (2014-15) |
|-----------|--------------------------|-------------------|-----------------------------------------|--------------------------------------------|---------------------------------------------------|
| 1.        | PSUs                     |               226 |                                     142 |                                         84 |                                              2497 |
| 2.        | Private Sector Companies |              7108 |                                    2997 |                                       4111 |                                              6306 |
|           | Total                    |              7334 |                                    3139 |                                       4195 |                                              8803 |

(c):    CSR  funds  are  permitted  to  be  leveraged  under  various  government programmes including the 'Saansad Adarsh Gram Yojana'.  State-wise and Sector-wise CSR expenditures, including that in Rural Development are at Annexures I and II.

(d): Show cause notices have been issued by Registrars of Companies to 496 companies for non-compliance of section 135 read with section 134 (3) (o) of the Companies Act, 2013, and rules made thereunder.

(e):  Yes,  Madam.    With  a  view  to  facilitate  implementation  of  CSR  by companies in compliance with provisions of Companies Act, 2013, and rules made thereunder, the Ministry has issued clarificatory circulars and FAQs on 18.06.2014 and 12.01.2016 respectively.

- *****

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.141 STATE/UT-WISE CSR PROJECTS UNDERTAKEN DURING FY 2014-15

|   Sl. No. | States         |   Actual CSR expenditure (in Rs. Crore) | Sl. No.   | States                   |   Actual CSR expenditure (in Rs. Crore) |
|-----------|----------------|-----------------------------------------|-----------|--------------------------|-----------------------------------------|
|         1 | Maharashtra    |                                 1101.71 | 20        | Bihar                    |                                   15.08 |
|         2 | Gujarat        |                                  291.65 | 21        | Kerala                   |                                   57.25 |
|         3 | Tamil Nadu     |                                  446.98 | 22        | Himachal Pradesh         |                                    5.29 |
|         4 | Karnataka      |                                  363.05 | 23        | Goa                      |                                   24.29 |
|         5 | Rajasthan      |                                  251.98 | 24        | Manipur                  |                                    1.35 |
|         6 | Uttar Pradesh  |                                  123.14 | 25        | Arunachal Pradesh        |                                   10.45 |
|         7 | Andhra Pradesh |                                  167.85 | 26        | Chandigarh               |                                    0.69 |
|         8 | West Bengal    |                                  243.32 | 27        | Meghalaya                |                                    1.8  |
|         9 | Madhya Pradesh |                                  176.41 | 28        | Sikkim                   |                                    0.41 |
|        10 | Delhi          |                                  139.75 | 29        | Tripura                  |                                    0.34 |
|        11 | Haryana        |                                  107.62 | 30        | Nagaland                 |                                    0.08 |
|        12 | Orissa         |                                  214.31 | 31        | Pondicherry              |                                    1.1  |
|        13 | Jammu &Kashmir |                                   74.6  | 32        | Andaman &Nicobar Islands |                                    0.81 |
|        14 | Chattisgarh    |                                  275.37 | 33        | Dadar &Nagar Haveli      |                                    1.83 |
|        15 | Telangana      |                                   88.53 | 34        | Daman &Diu               |                                   20.04 |
|        16 | Uttarakhand    |                                   24.53 | 35        | Lakshadweep              |                                    0.59 |
|        17 | Punjab         |                                   23.71 | 36        | Mizoram                  |                                    0.16 |
|        18 | Assam          |                                  106.84 | 37        | Others*                  |                                 4353.17 |
|        19 | Jharkhand      |                                   86.87 |           | Total                    |                                 8803    |

*****

## Annexure-II

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO.141 Development Sector wise CSR expenditure (FY 2014-15)

| Sr. No.   | Subject in Schedule VII                                                                                                         |   CSR Expenditure (In ₹ Crores) |
|-----------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
| 1.        | Health / Eradicating Hunger, Poverty &Malnutrition / WASH                                                                       |                         2245.58 |
| 2.        | Education/ Differently Abled/ Livelihood                                                                                        |                         2728.11 |
| 3.        | Gender Equality / Women Empowerment / Old Age homes / Reducing Inequalities                                                     |                          325.96 |
| 4.        | Environment &Animal Welfare                                                                                                     |                         1212.63 |
| 5.        | Heritage Art &Culture                                                                                                           |                          157.2  |
| 6.        | Encouraging Sports                                                                                                              |                          159.64 |
| 7.        | PMNational Relief Fund                                                                                                          |                          192.24 |
| 8.        | Rural Development                                                                                                               |                         1016.98 |
| 9.        | Slum Development                                                                                                                |                          122.75 |
| 10.       | Swatch Bharat Kosh                                                                                                              |                          121.47 |
| 11.       | Clean Ganga Fund                                                                                                                |                           19.25 |
| 12.       | Any other fund                                                                                                                  |                           36.31 |
| 13.       | Other Sectors of Schedule VII (incl. Technology Incubator and Benefits to armed forces, Adm. Overheads, Contribution to Corpus) |                          305.5  |
| 14.       | Others (*)                                                                                                                      |                          159.38 |
|           | Total                                                                                                                           |                         8803    |

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