Lok Sabha Question No. 1825 (UNSTARRED), answered on 2018-07-27
Subject: Implementation of CSR
Ministry: CORPORATE AFFAIRS
Asked by: BHARTRUHARI MAHTAB, SANJAY SHAMRAO DHOTRE, BHARATENDRA SINGH, VINOD CHAVDA, RAHUL RAMESH SHEWALE

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1825 ANSWERED ON FRIDAY THE 27th JULY, 2018/ SHRAVANA 5, 1940 (SAKA)

## IMPLEMENTATION OF CSR QUESTION

1825. SHRI BHARTRUHARI MAHTAB:

SHRI SANJAY DHOTRE KUNWAR:

SHRI BHARATENDRA:

SHRI VINOD LAKHAMASHI CHAVDA:

SHRI RAHUL SHEWALE:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री

be pleased to state:

- (a) whether the Government has the details of the CSR fund used for the social  cause  of  the  society  in  last  four  years  and  if  so,  the  details thereof;
- (b) whether the Government has no role to keep a check on spending of mandatory profit under Corporate Social Responsibility (CSR) by Public and Private Sector Companies in the country, if so, the details thereof and the reasons therefor;
- (c) the manner in which the Government unearthed clandestine activities adopted by the companies to get rid of their mandatory spending under CSR;
- (d) the  number  of  companies  against  which  the  Government  has  taken penal action for non-compliance of the provisions of the companies Act, 2013  pertaining  to  CSR  during  each  of  the  last  four  years  and  the current year, Company-wise; and
- (e) the  details  of  the  funds  spent  on  various  projects  by  the  said companies under their CSR during the said period, Project-wise?

## 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  having  networth  of  Rs.  500  crore  or  more  or turnover  of  Rs.  1000  crore  or  more  or  net  profit  of  Rs.  5  crore  or  more during

Contd…..2/-

-2- 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 details of CSR expenditure of such companies including development sector-wise is as per Annexure.

Further,  section  135  (3)  &  (4)  of  the  Act,  empower  the  Board  of  the company and its CSR Committee to take decisions regarding allocation of CSR funds for items enlisted in Schedule VII of the Act. Whenever violation of  CSR provision is reported, the Registrar of Companies initiates action against such non-compliant companies after due examination of records. For the FY 2014-15, prosecution against 254 companies were sanctioned out  of  which  33  companies  have  filed  application  for  compounding.  In addition to this, 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.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 1825 CSR EXPENDITURE FOR FY 2014-15, FY 2015-16 AND FY 2016-17

|   Sl. No | Financial Year   |   No. of Companies | Total Amount Spent (in Rs. Crores)   |
|----------|------------------|--------------------|--------------------------------------|
|        1 | 2014-15          |              14944 | 9,564.77                             |
|        2 | 2015-16          |              19184 | 13,827.86                            |
|        3 | 2016-17*         |               6286 | 4,719.00                             |

## 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. Crores)                                                                     | 9,564.77                            | 13,827.86                           | 4,719.00                            |