Lok Sabha Question No. 2375 (UNSTARRED), answered on 2019-07-08
Subject: Unspent CSR Funds
Ministry: FINANCE
Asked by: Ganesh Singh

## GOVERNMENT  OF INDIA MINISTRY OF FINANCE DEPARTMENT  OF FINANCIAL  SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 2375

TO BE ANSWERED  ON THE 8 TH  JULY  2019/ ASHADHA  17, 1941 (SAKA)

## 2375.  SHRI  GANESH  SINGH:

## Unspent CSR Funds

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether   the  funds profit   after  tax allocated   by   the  public   and  private   sector   banks   and other   financial   institutions under the  Corporate   Social   Responsibility (CSR)   has been  unspent during  the years  2014-15, 2015-16, 2016-17, 2017-18 and  2018-19;
- (b) if so, the  details  thereof  during  the said period,  bank-wise  and financial  institution-wise;
- (c) whether   the  Government   has  audited   the  CSR   funds unspent   by   the  said  public   and private  sector banks  and if so, the details  thereof  along  with  the reasons for unspent  CSR  funds; and
- (d) the amount  spent out of the said CSR  funds under various  heads in the State of Madhya Pradesh, district-wise including  Satna?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG  SINGH THAKUR)

- (a) and (b): As per input  given  by  the Ministry of Corporate  Affairs,  on the basis of filings  made by the companies  up to 20.10.2018  in the MCA  21 registry,  the details  of CSR  funds spent by  the companies,  including  banks  incorporated  under  the Companies  Act,  2013, for the financial  years 2014-15, 2015-16, 2016-17 and  2017-18 are at  Annex  I.

As per Reserve  Bank of India (RBI) inputs,  Public  Sector  Banks (PSBs) are not covered  by  the Companies  Act and hence the Corporate  Social  Responsibility (CSR)  policy  related  policies  of the Companies  Act are not applicable  to these banks.  RBI has issued guidelines  on Corporate Social  Responsibility, Sustainable  Development  and Non-Financial  Reporting  - Role  of Banks. These guidelines  do not mandate  CSR  as a percentage  of profits  after tax.

(c)  and  (d):   As  per  instructions issued  by   RBI in  respect   of  PSBs  and  the  provisions   of  the Companies  Act,  2013 in respect of companies,  audit  of expenditure  incurred  under CSR  forms part of the statutory  audit  of the PSB/company,  which  is carried  out by  auditors  appointed  by the PSB/company  concerned.

With  regard  to district-wise  amount  spent out of CSR  funds in the State of Madhya  Pradesh,  it is stated that  CSR  spending  includes  expenditure  on activities  that  are not attributable to specific locations  ( e.g., Swachh  Bharat Kosh and  National  Sports  Development  Fund).

## Lok Sabha Unstarred  Question  no. 2375,  for  answer on 8.7.2019,  regarding 'Unspent CSR Funds'

## Corporate  Social responsibility  (CSR) funds spent by the companies including Banks incorporated  under  the Companies Act,  2013

| Year of Filing   | FY 2014-15        | FY 2014-15                  | FY 2015-16        | FY 2015-16                  | FY2016-17         | FY2016-17                   | FY2017-18*        | FY2017-18*                  |
|------------------|-------------------|-----------------------------|-------------------|-----------------------------|-------------------|-----------------------------|-------------------|-----------------------------|
|                  | No. of Compa nies | Total Amount Spent (in Cr.) | No. of Compa nies | Total Amount Spent (in Cr.) | No. of Compa nies | Total Amount Spent (in Cr.) | No. of Comp anies | Total Amount Spent (in Cr.) |
| PSUs             | 380               | 2816.82                     | 461               | 4202.14                     | 407               | 3285.52                     | 76                | 1479.33                     |
| Non- PSUs        | 16405             | 7249.11                     | 21603             | 10325.45                    | 21063             | 10956.89                    | 3041              | 6886.02                     |
| Grand Total      | 16785             | 10065.93                    | 22064             | 14527.59                    | 21470             | 14242.41                    | 3117              | 8365.35                     |

Source:  Ministry of Corporate  Affairs

*Data upto 20.10.2018