Lok Sabha Question No. 801 (UNSTARRED), answered on 2018-12-14
Subject: CSR
Ministry: CORPORATE AFFAIRS
Asked by: RAM SWAROOP SHARMA, RAVINDRA KUMAR PANDEY, NISHIKANT  DUBEY, RAJESH PANDEY

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 801

ANSWERED ON FRIDAY THE 14TH DECEMBER, 2018/

AGRAHAYANA 23, 1940 (SAKA)

CSR

## QUESTION

801.  SHRI RAM KUMAR SHARMA:

SHRI RAVINDRA KUMAR PANDEY:

SHRI NISHIKANT DUBEY:

SHRI RAJESH PANDEY:

Will the Minister of CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

be pleased to state:

- (a) whether the companies spend two per cent of their annual profit on activities  under  the  Corporate  Social  Responsibility  (CSR)  Act  in  the country and if so, the details thereof;
- (b) the total amount incurred/spent by these companies including Public Sector  Units  under  the  said  Act  during  the  last  three  year  and  the current year, State/year-wise;
- (c) whether these companies also made their contribution in the schemes being  implemented  by  the  Government  during  these  previous  years and if so, the expenditure incurred to them, scheme-wise;
- (d) the details of CSR funds spent especially in the sectors like education, health during the said period: and
- (e) the  number  of  corporates  which  failed  to  spend  any  amount  on  CSR and spent less than 20 per cent of CSR in these years respectively and the action taken by the Government on these corporates?

## ANSWER

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

विवि और न्र्ार् एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री

(

श्री पी॰ पी॰ चौिरी

)

(a)&  (b):    Section  135  of  the  Companies  Act,  2013  ('the  Act')  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 the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities specified in Schedule VII of  the  Act.    As  per  the  data  obtained  from  the  filings  made  by  the companies upto 30.06.2018

in the MCA 21 registry for the financial years 2014-15, 2015-16 and 201617,  the expenditure made by the  companies on CSR is given in the Table below:

CSR spend for the three Financial Years

|                    | 2014-15          | 2014-15                         | 2015-16           | 2015-16                         | 2016-17           | 2016-17                         |
|--------------------|------------------|---------------------------------|-------------------|---------------------------------|-------------------|---------------------------------|
| Year of Filing     | No. of Companies | Total Amount Spent (in Rs. Cr.) | No. of Compani es | Total Amount Spent (in Rs. Cr.) | No. of Compan ies | Total Amount Spent (in Rs. Cr.) |
| PSUs               | 380              | 2816                            | 438               | 4175                            | 372               | 3242                            |
| Private Compa nies | 16405            | 7249                            | 21060             | 10190                           | 19561             | 10222                           |
| Total              | 16785            | 10065                           | 21498             | 14365                           | 19933             | 13464                           |

The State/UT-wise details of CSR expenditure for the year 2014-15, 201516 and 2016-17 by the companies are Annexed.

- (c):   Yes, CSR funds of companies can be contributed to any Government scheme  provided  the  scheme  permits  participation  by  corporates.  The Ministry  does  not  maintain  CSR  spend  data  related  to  Government Schemes.    The  project-wise  details  of  all  companies  are  available  on National CSR Data Portal of this Ministry (www.csr.gov.in) which displays information  based  on  disclosures  made  by  the  companies  at  MCA21 Registry.
- (d)  :  As  per  the  data  obtained  from  the  filings  made by companies upto 30.06.2018 in MCA21 registry for the financial years 2014-15, 2015-16 and 2016-17, the details of amount spent on   Education and Healthcare  by the  companies are as below:
- (e):  The details of companies which failed to spend any amount on CSR and spent less than 20 per cent of CSR in three years are as follows:

| CSR Expenditure (in Rs. crores)   | CSR Expenditure (in Rs. crores)   | CSR Expenditure (in Rs. crores)   | CSR Expenditure (in Rs. crores)   | CSR Expenditure (in Rs. crores)   |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| SI. No.                           | Development Sectors               | 2014-15                           | 2015-16                           | 2016-17                           |
| 1                                 | Education                         | 2630.85                           | 4156.31                           | 4277.03                           |
| 2                                 | Healthcare                        | 1847.74                           | 2538.51                           | 2284.89                           |

| CSR Spent                         | No. of Companies which reported CSR expenditure   | No. of Companies which reported CSR expenditure   | No. of Companies which reported CSR expenditure   |
|-----------------------------------|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
|                                   | 2014-15                                           | 2015-16                                           | 2016-17                                           |
| More than zero but less than 20 % | 530                                               | 969                                               | 659                                               |
| Zero Spent                        | 9018                                              | 10563                                             | 9468                                              |

(Source: National CSR Data Portal)

Whenever, violation of CSR provision is noticed, the Registrar of Companies initiates action against such non-compliant companies after due examination of  records.  For  the  year  2014-15,  prosecution  against  284  companies  were sanctioned, out of which 33 companies have filed application for compounding. Ministry has established Centralized Scrutiny and Prosecution Mechanism  in  April,  2018  for  the  financial  year  2015-16  onwards  on  pilot basis  for  enforcement  of  CSR  provisions.  Based  on  scrutiny,  preliminary notices have been issued to 5,382 companies for financial year 2015-16.

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Annexure

## ANNEXURE REFERRED TO IN REPLY TO RAJYA SABHA UNSTARRED QUESTION NO. 801.

| STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   | STATE/UT-WISE CSR EXPENDITURE (IN RS. CRORES )   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| S. No                                            | State/UT(s)                                      | 2014-15                                          | 2015-16                                          | 2016-17                                          |
| 1                                                | Andaman And Nicobar                              | 0.29                                             | 0.55                                             | 0.83                                             |
| 2                                                | Andhra Pradesh                                   | 414.28                                           | 1,241.98                                         | 729.95                                           |
| 3                                                | Arunachal Pradesh                                | 11.05                                            | 1.48                                             | 23.61                                            |
| 4                                                | Assam                                            | 134.78                                           | 167.47                                           | 268.88                                           |
| 5                                                | Bihar                                            | 36.69                                            | 108.67                                           | 94.40                                            |
| 6                                                | Chandigarh                                       | 1.77                                             | 5.13                                             | 23.80                                            |
| 7                                                | Chhattisgarh                                     | 161.30                                           | 237.95                                           | 77.88                                            |
| 8                                                | Dadra And Nagar Haveli                           | 4.41                                             | 12.03                                            | 5.13                                             |
| 9                                                | Daman And Diu                                    | 20.05                                            | 2.13                                             | 2.63                                             |
| 10                                               | Delhi                                            | 237.44                                           | 479.14                                           | 478.61                                           |
| 11                                               | Goa                                              | 27.11                                            | 30.53                                            | 34.96                                            |
| 12                                               | Gujarat                                          | 313.45                                           | 559.15                                           | 779.86                                           |
| 13                                               | Haryana                                          | 187.41                                           | 367.34                                           | 346.55                                           |
| 14                                               | Himachal Pradesh                                 | 10.95                                            | 52.36                                            | 16.41                                            |
| 15                                               | Jammu And Kashmir                                | 43.71                                            | 103.03                                           | 41.04                                            |
| 16                                               | Jharkhand                                        | 79.56                                            | 118.17                                           | 94.62                                            |
| 17                                               | Karnataka                                        | 403.47                                           | 778.89                                           | 843.48                                           |
| 18                                               | Kerala                                           | 68.23                                            | 143.88                                           | 117.51                                           |
| 19                                               | Lakshadweep                                      | -                                                | 0.30                                             | -                                                |
| 20                                               | Madhya Pradesh                                   | 141.88                                           | 183.27                                           | 282.04                                           |
| 21                                               | Maharashtra                                      | 1,445.92                                         | 2,013.02                                         | 2,222.20                                         |
| 22                                               | Manipur                                          | 2.44                                             | 6.28                                             | 11.72                                            |
| 23                                               | Meghalaya                                        | 3.53                                             | 5.63                                             | 7.55                                             |
| 24                                               | Mizoram                                          | 1.03                                             | 1.07                                             | 0.08                                             |
| 25                                               | Nagaland                                         | 1.11                                             | 0.96                                             | 0.92                                             |
| 26                                               | Odisha                                           | 252.18                                           | 618.91                                           | 311.95                                           |
| 27                                               | Puducherry                                       | 2.02                                             | 6.35                                             | 7.48                                             |
| 28                                               | Punjab                                           | 55.61                                            | 69.05                                            | 67.18                                            |
| 29                                               | Rajasthan                                        | 299.76                                           | 493.96                                           | 318.89                                           |
| 30                                               | Sikkim                                           | 1.19                                             | 1.89                                             | 4.87                                             |
| 31                                               | Tamil Nadu                                       | 539.64                                           | 615.71                                           | 470.51                                           |
| 32                                               | Telangana                                        | 101.96                                           | 254.02                                           | 221.27                                           |
| 33                                               | Tripura                                          | 1.33                                             | 1.47                                             | 1.25                                             |
| 34                                               | Uttar Pradesh                                    | 148.90                                           | 417.13                                           | 312.72                                           |
| 35                                               | Uttarakhand                                      | 74.79                                            | 72.42                                            | 94.65                                            |
| 36                                               | West Bengal                                      | 194.86                                           | 411.71                                           | 274.71                                           |
| 37                                               | NEC/ Not Mentioned*                              | 26.94                                            | -                                                | 6.72                                             |
| 38                                               | PAN India*                                       | 4,614.89                                         | 4,783.26                                         | 4,867.45                                         |
|                                                  | Grand Total                                      | 10,065.93                                        | 14,366.29                                        | 13,464.30                                        |

*  Companies either did not specify the names of States or indicated more than one State where projects were undertaken.

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