Lok Sabha Question No. 1965 (UNSTARRED), answered on 2018-12-21
Subject: Social Audit of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: PRALHAD VENKATESH JOSHI, DEVJI MANSINGRAM PATEL

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO.  1965

ANSWERED ON FRIDAY THE 21st DECEMBER, 2018

AGRAHAYANA 23, 1940 (SAKA)

## SOCIAL AUDIT OF CSR FUNDS

## QUESTION

1965. SHRI PRALHAD JOSHI:

SHRI DEVJI M. PATEL:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)  whether  the  lack  of  social  audit  of  the  utilisation  of  Corporate  Social Responsibility  (CSR)  funds  has  made  it  convenient  for  the  public  sector  and private sector enterprises to misuse the funds earmarked under CSR;
- (b) if so, whether the Government proposes to make provision of spending 80 per  cent  funds  only  on  panchayats,  schools,  hospitals  and  primary  health centres and if so, the details thereof;
- (c) whether it is being planned to upload the complete details of CSR funds of all  the  public  and  private  sector  industries  including  the  details  of  funds allocated, the funds spent and the name of the institution on website to ensure transparency and if so, the details thereof;
- (d) whether the Government is also planning to upload the criteria of selection and rating of NGOs on the Department's website and if so, the details thereof; and-
- (e) whether the Government has asked the Public Sector Companies to select the districts on the guidelines of Planning Commission to spend their CSR funds and  if  so,  the  details  thereof  indicating  the  names  of  all  the  public  sector companies including Oil and Natural Gas Corporation (ONGC) and Concord India along with the names of the districts selected along with the funds spent by the said PSUs during the last three years?

ANSWER

THE 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) to (c) : Section 135 (3) & (4) of the Companies Act, 2013 (the 'Act') empowers the Board of the company, and its CSR Committee to select contd…..2/-

कारपोरेट कार्य मंत्री

-2- programmes / projects / activities to be undertaken, allocation and utilization of CSR funds towards such activities, selection of implementing agencies (if any) and to monitor the same. Section 135 (5) read with Section 134 (3) (o) of the Act mandates the Board to disclose in its report, the CSR Policy developed and implemented by the company, including the details like funds earmarked, expenditure made, implementing agencies appointed etc. The details reported in the annual financial statement of the company are required to be audited by the auditor of the company under the Act.

To ensure transparency and accountability in utilization of CSR funds, Ministry of Corporate Affairs has launched National CSR Data Portal (www.csr.gov.in) displaying disclosures made by companies in MCA21 registry.

(d) :  No such proposal is under consideration of the Government.

(e): The Department of Public Enterprises (DPE) is the nodal department for all Public Sector Undertakings (PSUs). As reported by DPE, vide 'Guidelines on CSR for CPSEs dated 10.12.2018 it has inter-alia been recommended to give preference to aspirational districts while undertaking CSR activities. Information on funds spent by CPSEs in specific districts is not maintained by DPE.

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