Lok Sabha Question No. 1741 (UNSTARRED), answered on 2018-07-27
Subject: Inclusion of Pharma Companies under CSR
Ministry: CORPORATE AFFAIRS
Asked by: George Baker, PARBHUBHAI NAGARBHAI VASAVA, ANIL SHIROLE

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1741 ANSWERED ON FRIDAY THE 27th JULY, 2018/ SHRAVANA 5, 1940 (SAKA)

## INCUSION OF PHARMA COMPANIES UNDER CSR

## QUESTION

1741.  SHRI GEORGE BAKER:

SHRI PARBHUBHAI NAGARBHAI VASAVA:

SHRI ANIL SHIROLE:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)
- the salient features of the Corporate Social Responsibility (CSR);
- (b) the details of the funds sanctioned, allocated and utilized under CSR during the  last  three  years  and  the  current  year,  State/  UT-wise  including  West Bengal, Gujarat and Maharashtra;
- (c) the details of the number of works done/being done under CSR so far along with their result;
- (d) whether the Government is planning/proposing to include Pharma Companies under CSR; and
- (e) if so, the details thereof and the reasons therefor?.

## ANSWER

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  (e):    Every  company  (including Pharma companies)  having net worth of Rs. 500 crore or more or turnover of Rs. 1000 crore or more or net profit of Rs. 5 crore or more during the immediately preceding financial year shall ensure that company spends, in every financial year, at least 2% of the average net profits of the company made during the three immediately financial years on Corporate Social Responsibility (CSR) activities in areas or subjects specified in Schedule VII  of  the  Companies  Act,  2013  ('Act').  The  salient  features  of  CSR  provision inter-alia, are as under:
- (i) Each such company is required to have its own CSR policy;

कारपोरेट कार्य मंत्री

- (ii) Each such company to constitute a CSR Committee of the Board which shall provide mechanism for monitoring CSR activities while the Board is empowered to identify, implement and monitor its CSR activities.
- (iii) Board's  report  to  members  shall  mention  about  details  of  CSR activities  undertaken  by  the  company  or  specify  reasons  for  not spending or under spending.
- (iv) CSR activities may be undertaken by a company itself or through implementing agencies established under section 8 of the Act or a registered  trust  or  a  registered  society  having  a  track  record  of undertakings such activities for three years. In case the implementing agency is established by the company itself or by the Central  or  State  Government,  the  requirement  of  having  a  three year track record does not apply.
- (v) CSR committee shall institute a transparent monitoring mechanism for  implementation  of  the  CSR  projects  or  programs  or  activities undertaken by the company.
- (vi) The  expenditure  on  administrative  overhead  for  undertaking  the CSR activities shall not exceed 5% of total CSR expenditure of the company in one financial year.

The  details  of  CSR  expenditure,  State/UT-wise  (including  West  Bengal, Gujarat and Maharashtra) for the years 2014-15, 2015-16 and 2016-17 and the sector-wise expenditure on CSR are at Annexure A & B respectively.

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ANNEXURE-A ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1741 STATE/UT-WISE CSR EXPENDITURE DURING FY 2014-15, FY 2015-16 AND 2016-17

| 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)                                                       |
|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Sl . No.                                                                              | State/ UT                                                                             | 2014-15                                                                               | 2015-16                                                                               | 2016-17*                                                                              |
| 1                                                                                     | Andaman & Nicobar Islands                                                             | 0.29                                                                                  | 0.54                                                                                  | 0.07                                                                                  |
| 2                                                                                     | Andhra Pradesh                                                                        | 403.91                                                                                | 1,220.54                                                                              | 101.69                                                                                |
| 3                                                                                     | Arunachal Pradesh                                                                     | 11.03                                                                                 | 1.49                                                                                  | 7.98                                                                                  |
| 4                                                                                     | Assam                                                                                 | 133.07                                                                                | 166.81                                                                                | 38.28                                                                                 |
| 5                                                                                     | Bihar                                                                                 | 36.20                                                                                 | 108.15                                                                                | 36.90                                                                                 |
| 6                                                                                     | Chandigarh                                                                            | 1.73                                                                                  | 5.08                                                                                  | 4.17                                                                                  |
| 7                                                                                     | Chhattisgarh                                                                          | 158.89                                                                                | 236.22                                                                                | 14.85                                                                                 |
| 8                                                                                     | Dadar & Nagar Haveli                                                                  | 2.54                                                                                  | 12.03                                                                                 | 1.65                                                                                  |
| 9                                                                                     | Daman & Diu                                                                           | 20.05                                                                                 | 2.13                                                                                  | 0.83                                                                                  |
| 10                                                                                    | Delhi                                                                                 | 214.24                                                                                | 468.18                                                                                | 229.87                                                                                |
| 11                                                                                    | Goa                                                                                   | 26.60                                                                                 | 30.25                                                                                 | 10.54                                                                                 |
| 12                                                                                    | Gujarat                                                                               | 296.53                                                                                | 550.98                                                                                | 152.04                                                                                |
| 13                                                                                    | Haryana                                                                               | 176.29                                                                                | 364.22                                                                                | 107.87                                                                                |
| 14                                                                                    | Himachal Pradesh                                                                      | 9.30                                                                                  | 51.71                                                                                 | 10.57                                                                                 |
| 15                                                                                    | Jammu & Kashmir                                                                       | 40.57                                                                                 | 103.02                                                                                | 27.83                                                                                 |
| 16                                                                                    | Jharkhand                                                                             | 75.86                                                                                 | 115.70                                                                                | 24.24                                                                                 |
| 17                                                                                    | Karnataka                                                                             | 382.79                                                                                | 730.64                                                                                | 202.71                                                                                |
| 18                                                                                    | Kerala                                                                                | 64.30                                                                                 | 129.24                                                                                | 50.94                                                                                 |
| 19                                                                                    | Lakshadweep                                                                           | 0.00                                                                                  | 0.30                                                                                  | 0.00                                                                                  |
| 20                                                                                    | Madhya Pradesh                                                                        | 137.15                                                                                | 178.94                                                                                | 213.48                                                                                |
| 21                                                                                    | Maharashtra                                                                           | 1,372.34                                                                              | 1,810.45                                                                              | 702.37                                                                                |
| 22                                                                                    | Manipur                                                                               | 1.57                                                                                  | 5.93                                                                                  | 6.03                                                                                  |
| 23                                                                                    | Meghalaya                                                                             | 3.52                                                                                  | 3.86                                                                                  | 2.99                                                                                  |
| 24                                                                                    | Mizoram                                                                               | 1.03                                                                                  | 1.08                                                                                  | 0.08                                                                                  |
| 25                                                                                    | Nagaland                                                                              | 1.11                                                                                  | 0.95                                                                                  | 0.45                                                                                  |
| 26                                                                                    | Odisha                                                                                | 249.50                                                                                | 604.26                                                                                | 191.43                                                                                |
| 27                                                                                    | Pondicherry                                                                           | 1.81                                                                                  | 6.31                                                                                  | 3.71                                                                                  |
| 28                                                                                    | Punjab                                                                                | 53.86                                                                                 | 68.17                                                                                 | 20.17                                                                                 |
| 29                                                                                    | Rajasthan                                                                             | 271.36                                                                                | 472.46                                                                                | 84.99                                                                                 |
| 30                                                                                    | Sikkim                                                                                | 1.03                                                                                  | 1.90                                                                                  | 2.12                                                                                  |
| 31                                                                                    | Tamil Nadu                                                                            | 498.89                                                                                | 597.60                                                                                | 202.53                                                                                |
| 32                                                                                    | Telangana                                                                             | 94.89                                                                                 | 248.57                                                                                | 64.56                                                                                 |
| 33                                                                                    | Tripura                                                                               | 1.16                                                                                  | 1.47                                                                                  | 0.60                                                                                  |
| 34                                                                                    | Uttar Pradesh                                                                         | 138.64                                                                                | 406.93                                                                                | 120.34                                                                                |
| 35                                                                                    | Uttarakhand                                                                           | 69.99                                                                                 | 71.50                                                                                 | 30.74                                                                                 |
| 36                                                                                    | West Bengal                                                                           | 178.61                                                                                | 399.89                                                                                | 121.12                                                                                |
| 37                                                                                    | Pan India**                                                                           | 4,434.12                                                                              | 4,650.39                                                                              | 1,928.26                                                                              |
| Grand Total 9,564.77 13,827.86 4,719.00 *Filings up to 30.11.2017 have been factored. | Grand Total 9,564.77 13,827.86 4,719.00 *Filings up to 30.11.2017 have been factored. | Grand Total 9,564.77 13,827.86 4,719.00 *Filings up to 30.11.2017 have been factored. | Grand Total 9,564.77 13,827.86 4,719.00 *Filings up to 30.11.2017 have been factored. | Grand Total 9,564.77 13,827.86 4,719.00 *Filings up to 30.11.2017 have been factored. |

********

## ANNEXURE -B

ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1741 SECTOR-WISE CSR EXPENDITURE FOR FY 2014-15,  FY 2015-16 AND FY 2016-17

| 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.                           | Sectors                                                                                           | 2014-15                           | 2015-16                           | 2016-17*                          |
| 1                                 | Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation            | 2,382.27                          | 4,330.21                          | 1,201.37                          |
| 2                                 | Education/ Differently Abled/ Livelihood                                                          | 3,021.47                          | 4,689.81                          | 1,605.05                          |
| 3                                 | Rural development                                                                                 | 1,031.02                          | 1,327.57                          | 628.56                            |
| 4                                 | Environment, Animal Welfare, Conservation Of Resources                                            | 812.31                            | 901.80                            | 306.68                            |
| 5                                 | Swachh Bharat Kosh                                                                                | 94.52                             | 323.24                            | 89.35                             |
| 6                                 | Any Other Funds                                                                                   | 272.58                            | 322.63                            | 137.70                            |
| 7                                 | Gender equality / Women empowerment / Old age homes / Reducing inequalities                       | 172.63                            | 331.50                            | 122.60                            |
| 8                                 | Prime Minister's National Relief Fund                                                             | 211.04                            | 206.08                            | 109.81                            |
| 9                                 | Encouraging Sports                                                                                | 53.36                             | 134.76                            | 51.73                             |
| 10                                | Heritage Art and Culture                                                                          | 113.62                            | 114.90                            | 49.64                             |
| 11                                | Slum Area Development                                                                             | 101.07                            | 13.60                             | 1.97                              |
| 12                                | Clean Ganga Fund                                                                                  | 4.64                              | 32.52                             | 22.97                             |
| 13                                | Other Sectors ( Technology Incubator And Benefits To Armed Forces, Admin Overheads and others** ) | 1,294.24                          | 1,099.24                          | 391.57                            |
|                                   | Total Amount (in Rs. Crore)                                                                       | 9,564.77                          | 13,827.86                         | 4,719.00                          |

*Filings up to 30.11.2017 have been factored. **not specified

*******