Lok Sabha Question No. 152 (STARRED), answered on 2018-07-27
Subject: Corporate Social Responsibility
Ministry: CORPORATE AFFAIRS
Asked by: HEMANT TUKARAM GODSE, KRUPAL BALAJI TUMANE

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 152 ANSWERED ON FRIDAY THE 27th JULY, 2018/ SHRAVANA 5, 1940 (SAKA)

## CORPORATE SOCIAL RESPONSIBILITY

## QUESTION

*152. SHRI GODSE HEMANT TUKARAM: SHRI KRUPAL BALAJI TUMANE:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a)  whether the Government has details of those companies which spend funds on education  and  health  facilities  earmarked  under  Corporate  Social  Responsibility (CSR);
- (b)  if  so,  the  details  thereof  including  the  number  of  Public  Sector  Undertakings (PSUs) and private companies along with the total CSR funds incurred by them on health and education activities as well as other activities during the last three years and if not, the reasons therefor;
- (c)  whether the Government intends to make any such provision to institutionalize the utilization of CSR funds by PSUs/private companies, if so, the details thereof and if not, the reasons therefor;
- (d)  whether  the  Government  has  received  complaints  regarding  misuse  or  no expenditure  of  CSR  funds  by  PSUs/private  companies/institutions  and  if  so,  the details thereof along with the action taken by the Government against them; and
- (e)  whether  the  Government  is  also  considering  to  set  up  a  Regulatory  and Monitoring  Authority  for  CSR  or  an  empowered  Committee  to  ensure  proper utilization of funds/monitoring the activities under CSR by PSUs/ private companies, if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS                                    (SHRI PIYUSH GOYAL)

(

कारपोरेट कार्य मंत्री

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

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श्री पीर्ूष गोर्ल )

## STATEMENT REFFERED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION  NO.  152*  FOR  27 TH   JULY,  2018  REGARDING  CORPORATE  SOCIAL

RESPONSIBILITY. (a) & (b): 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  the  immediately preceding financial year shall ensure that company spends, in every financial year, atleast  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  such  companies  which  spend  funds  on  education  and  health  facilities including other activities under CSR is as per Annexure. (c)  to  (e):  As  per  section  135  of  the  Act,  every  eligible  company  including  PSUs  is required to undertake CSR activities and the Board of the company is empowered to monitor CSR activities. There is no proposal before the government for setting up a Regulatory and Monitoring Authority. As per second proviso to section 135 (5) of the Act, if the company fails to spend the prescribed amount, the Board of a company shall specify the reasons for not spending the amount and disclose the same in the Board's  Report.  Further,  the  Ministry  receives  various  queries  and  complaints  on compliance  of  CSR  by  companies  and  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 STARRED QUESTION NO. 152* Details of CSR Expenditure on Education and Health related activities

|   Sl. No. | Financial Years   | Education/ Differently Abled/ Livelihood (Rs. In Crores)   | Health/ Eradicating Hunger/ Poverty and malnutrition/ Safe drinking water / Sanitation (Rs. In Crores)   |
|-----------|-------------------|------------------------------------------------------------|----------------------------------------------------------------------------------------------------------|
|         1 |                   | 3,021.47                                                   | 2014-15 2,382.27                                                                                         |
|         2 | 2015-16           | 4,689.81                                                   | 4,330.21                                                                                                 |
|         3 | 2016-17*          | 1,605.05                                                   | 1,201.37                                                                                                 |

## Details of CSR Expenditure PSUs and Non-PSUs

| Financial Years   | Financial Years   | 2014-15                           | 2014-15                        | 2015-16                           | 2015-16                        | 2016-17*                          | 2016-17*                       |
|-------------------|-------------------|-----------------------------------|--------------------------------|-----------------------------------|--------------------------------|-----------------------------------|--------------------------------|
| Sl. No.           | Company Type      | No. of companies reported for CSR | CSR Expenditure (in Rs. Crore) | No. of companies reported for CSR | CSR Expenditure (in Rs. Crore) | No. of companies reported for CSR | CSR Expenditure (in Rs. Crore) |
| 1                 | PSUs              | 315                               | 2673.85                        | 397                               | 4163.09                        | 132                               | 1325.83                        |
| 2                 | Other Companies   | 14629                             | 6890.92                        | 18787                             | 9664.77                        | 6154                              | 3393.17                        |
|                   | Total             | 14944                             | 9564.77                        | 19184                             | 13827.86                       | 6286                              | 4719.00                        |

## SECTOR-WISE CSR EXPENDITURE FOR FY 2014-15,  FY 2015-16 AND FY 2016-17

|         | CSR                                                                                            | CSR      | CSR       | CSR       |
|---------|------------------------------------------------------------------------------------------------|----------|-----------|-----------|
| 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  |

* not specified

**Filings up to 30.11.2017 have been factored

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