Lok Sabha Question No. 1826 (UNSTARRED), answered on 2023-02-13
Subject: CSR Compliance
Ministry: CORPORATE AFFAIRS
Asked by: Aparajita Sarangi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1826

ANSWERED ON MONDAY, FEBRUARY 13, 2023/MAGHA 24, 1944 (SAKA)

## CSR COMPLIANCE QUESTION

## 1826. SHRIMATI APARAJITA SARANGI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  whether  the  Government  monitors  the  Corporate  Social  Responsibility  (CSR) contribution commitments of corporates across the country;
- (b)  if  so,  whether  Indian  companies are meeting their CSR requirement and if so, the details  thereof and if not, the measures the Government undertakes to increase CSR compliance;
- (c) the details of CSR projects undertaken by companies in 2021-2022 in Odisha;
- (d) whether the Government has noted the decrease in CSR spending in 2021-2022 and issued  any  guidelines/notice  to  companies  who  have  spent  less  than  the  mandated amount under CSR as per Companies Act, 2013 provisions; and
- (e) if so, the details thereof?

## 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) & (b): The Corporate Social Responsibility (CSR) framework is disclosure based and companies are required to file details of CSR activities annually in MCA21 registry. The Government monitors the compliance of CSR provisions through the disclosures made by the companies in the MCA 21 registry. The CSR mandated companies are required to provide additional information in their Profit & Loss Account regarding the amount of expenditure incurred on CSR activities and the same is required to be audited by the statutory auditors of the company. Further, the Board of the company is also required to disclose  the  CSR  Policy  implemented  by  the  company  in  its  Board  report.  Thus,  the corporate  governance  framework  along  with  the  existing  legal  provisions  such  as mandatory disclosures, accountability of the CSR Committee and the Board, provisions for statutory audit of accounts of the company etc. provide adequate scope to review the works done by them.

Whenever any violation of CSR provisions is reported, action against such non-compliant companies  are  initiated  as  per  provisions  of  the  Companies  Act,  2013  after  due examination of records and following due process of law. Further, the amendments in the Companies  (CSR  Policy)  Rules,  2014  as  notified  on  22nd  January,  2021  and  20 th September, 2022 have strengthened the CSR eco-system by bringing more objectivity, transparency, entrusting more responsibility on the Board and enlarging the disclosures by the companies.

(c) to (e): The companies are required to file the CSR data for the FY 2021-22 on or before 31.03.2023. However, on the basis of annual filings made by the Companies in the MCA21 registry, the District-Wise and Development Sector-Wise CSR spent by the companies in the  state  of  Odisha  during  the  Financial  Year  (FY)  2020-21  are  at  Annexure-I  &  II respectively.

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| District-Wise CSR Expenditure in Odisha (Amount in crore)   | District-Wise CSR Expenditure in Odisha (Amount in crore)   | District-Wise CSR Expenditure in Odisha (Amount in crore)   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| Sr. No.                                                     | District                                                    | FY 2020-21                                                  |
| 1                                                           | Angul                                                       | 1.13                                                        |
| 2                                                           | Balangir                                                    | 10.06                                                       |
| 3                                                           | Balasore                                                    | 0.91                                                        |
| 4                                                           | Bhadrak                                                     | 8.40                                                        |
| 5                                                           | Boudh                                                       | 0.25                                                        |
| 6                                                           | Cuttack                                                     | 4.91                                                        |
| 7                                                           | Dhenkanal                                                   | 3.37                                                        |
| 8                                                           | Ganjam                                                      | 13.23                                                       |
| 9                                                           | Jagatsinghpur                                               | 5.41                                                        |
| 10                                                          | Jajpur                                                      | 6.81                                                        |
| 11                                                          | Jharsuguda                                                  | 6.82                                                        |
| 12                                                          | Kalahandi                                                   | 8.12                                                        |
| 13                                                          | Kandhamal                                                   | 0.04                                                        |
| 14                                                          | Kendrapara                                                  | 0.44                                                        |
| 15                                                          | Kendujhar                                                   | 5.80                                                        |
| 16                                                          | Khordha                                                     | 111.41                                                      |
| 17                                                          | Koraput                                                     | 13.79                                                       |
| 18                                                          | Mayurbhanj                                                  | 0.96                                                        |
| 19                                                          | Nabarangpur                                                 | 0.38                                                        |
| 20                                                          | Nayagarh                                                    | 0.05                                                        |
| 21                                                          | Nuapada                                                     | 0.04                                                        |
| 22                                                          | Puri                                                        | 10.54                                                       |
| 23                                                          | Rayagada                                                    | 2.63                                                        |
| 24                                                          | Sambalpur                                                   | 0.39                                                        |
| 25                                                          | Sundergarh                                                  | 8.42                                                        |
| 26                                                          | NEC/ Not mentioned*                                         | 343.29                                                      |
|                                                             | Grand Total (in cr.)                                        | 567.63                                                      |

(Data up to 30.09.2022)   [Source: National CSR Data Portal]

*Companies either did not specify the names of district or indicated more than one district  where projects were undertaken.

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 1826 FOR 13.02.2023

| Development Sector-Wise CSR Expenditure in Odisha (Amount in crore)   | Development Sector-Wise CSR Expenditure in Odisha (Amount in crore)   | Development Sector-Wise CSR Expenditure in Odisha (Amount in crore)   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| Sr. No.                                                               | Development Sector                                                    | FY 2020-21                                                            |
| 1                                                                     | Agro Forestry                                                         | 0.07                                                                  |
| 2                                                                     | Animal Welfare                                                        | 1.87                                                                  |
| 3                                                                     | Armed Forces, Veterans, War Widows/ Dependants                        | 0.02                                                                  |
| 4                                                                     | Art And Culture                                                       | 4.24                                                                  |
| 5                                                                     | Conservation of natural resources                                     | 1.12                                                                  |
| 6                                                                     | Education                                                             | 113.45                                                                |
| 7                                                                     | Environmental Sustainability                                          | 14.22                                                                 |
| 8                                                                     | Gender Equality                                                       | 0.56                                                                  |
| 9                                                                     | Health Care                                                           | 83.04                                                                 |
| 10                                                                    | Livelihood Enhancement Projects                                       | 20.74                                                                 |
| 11                                                                    | Poverty, Eradicating Hunger, Malnutrition                             | 8.71                                                                  |
| 12                                                                    | Rural Development Projects                                            | 240.26                                                                |
| 13                                                                    | Safe Drinking Water                                                   | 2.44                                                                  |
| 14                                                                    | Sanitation                                                            | 3.02                                                                  |
| 15                                                                    | Senior Citizens Welfare                                               | 2.34                                                                  |
| 16                                                                    | Setting Up Homes And Hostels For Women                                | 0.16                                                                  |
| 17                                                                    | Setting Up Orphanage                                                  | 0.94                                                                  |
| 18                                                                    | Slum Area Development                                                 | 14.13                                                                 |
| 19                                                                    | Socio-Economic Inequalities                                           | 1.71                                                                  |
| 20                                                                    | Special Education                                                     | 2.03                                                                  |
| 21                                                                    | Training To Promote Sports                                            | 15.33                                                                 |
| 22                                                                    | Vocational Skills                                                     | 34.38                                                                 |
| 23                                                                    | Women Empowerment                                                     | 2.88                                                                  |
| Grand Total (in cr.)                                                  | Grand Total (in cr.)                                                  | 567.63                                                                |

(Data up to 30.09.2022)   [Source: National CSR Data Portal]

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