Lok Sabha Question No. 83 (UNSTARRED), answered on 2021-07-19
Subject: CSR Funds of Corporate Houses
Ministry: CORPORATE AFFAIRS
Asked by: Asaduddin Owaisi

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UNSTARRED QUESTION NO. 83 ANSWERED ON MONDAY THE 19 th  JULY, 2021/ ASHADHA 28, 1943 (SAKA)

## CSR FUNDS OF CORPORATE HOUSES

## QUESTION

83. SHRI ASADUDDIN OWAISI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether it is a fact that corporate houses spend a huge sum on Corporate Social Responsibility(CSR) for the welfare of workers and local people in the country and if so, the details thereof;
- (b) whether due to corona virus corporate houses changed their strategy by setting up  hospitals,  oxygen  plants  in  the  area  of  their  operation  and  if  so,  the  details thereof;
- (c) whether the Government has asked the corporate houses to establish hospitals, testing facilities and other health facilities for their workers and local people;
- (d) if so, the instructions issued by the Government to corporate houses to take up health infrastructure under CSR; and
- (e) the number of corporate houses that have helped the local people in fighting the disease?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE)  OF  THE  MINISTRY  OF  PLANNING  AND  MINISTER  OF  STATE  IN  THE MINISTRY OF CORPORATE AFFAIRS                                             [RAO INDERJIT SINGH]

(a) to (d): Section 135 of the Companies Act, 2013 ('Act') mandates every company 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 to undertake Corporate Social Responsibility (CSR) activities.  CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor the CSR activities of the company based on the recommendation of its CSR Committee.  All  data  related  to  CSR  filed  by  companies  in  the  MCA21  registry  is available in public domain at www.csr.gov.in.  On  the  basis of  filings  made by  the

companies  in  MCA21  registry,  CSR  amount  spent  by  various  companies  in  the financial years 2017-18, 2018-19 and 2019-20 respectively are given below:

|                                | Financial Year 2017-18   | Financial Year 2018-19   | Financial Year 2019-20   |
|--------------------------------|--------------------------|--------------------------|--------------------------|
| No. of Companies               | 21,455                   | 24,965                   | 21,349                   |
| CSR expenditure (in Rs. Crore) | 13,909                   | 18,728                   | 21,231                   |

(Data upto 31.03.2021) [Source: National CSR Data Portal]

Ministry vide General Circular no.10/2020 dated 23.03.2020 clarified that CSR funds may be spent by the companies for various activities related to COVID-19 under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 ('Act') which relates to promotion  of  health  care,  including  preventive  health  care  and  sanitation,  and disaster  management.  Further,  Ministry  vide  General  Circular  no.05/2021  dated 22.04.2021 and General Circular no.09/2021 dated 05.05.2021 clarified that spending of  CSR  funds  by  the  companies  for  setting  up  makeshift  hospitals  and  temporary COVID care facilities and 'creating health infrastructure for COVID care', 'establishment of medical oxygen generation and storage plants' 'manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19 respectively, are eligible CSR activities.

(e) As per the Act, financial statements and board report containing disclosure about CSR, for the ongoing financial year 2021-22, are required to be filed only after the end of financial year.

******