Lok Sabha Question No. 5160 (UNSTARRED), answered on 2023-04-03
Subject: CSR Compliance
Ministry: CORPORATE AFFAIRS
Asked by: Su Thirunavukkarasar, Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 5160

ANSWERED ON MONDAY, APRIL 3, 2023/CHAITRA 13, 1945 (SAKA)

## CSR COMPLIANCE QUESTION

5160. SHRI THIRUNAVUKKARASAR SU: SHRI RAVNEET SINGH BITTU:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Corporate Social Responsibility (CSR) spending compliance has seen much improvement during the year 2022-23 and the number of companies failing  to  spend  even  a  penny  on  charity  has  also  decreased  and  some companies spent more than the prescribed amount;
- (b) if so, the details thereof during the last three years, year-wise;
- (c) whether the Government has introduced sweeping changes to the rule to make companies accountable and offer flexibility to spend extra and if so, the details thereof;
- (d) whether any sops/rewards are given to the top performing corporates in CSR spending and compliance; and
- (e) if so, the details thereof and if not, the reasons therefor?

## 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 CSR framework is disclosure based and CSR mandated companies are required to file details of CSR activities annually in the MCA21 registry.  All data related to CSR filed by companies in MCA21 registry is available in public domain at www.csr.gov.in.  On the basis of annual filings made by Companies in the MCA21 registry, the CSR expenditure by various public and private sector companies during the Financial Years (FY) 2018-19, 2019-20 and 2020-21 is given below:

| Particulars              | FY2018-19   | FY 2019-20   | FY 2020-21   |
|--------------------------|-------------|--------------|--------------|
| No. of Companies         | 25179       | 22953        | 18012        |
| CSR Expenditure (In Cr.) | 20,196.95   | 24,954.78    | 25,714.65    |

(Data upto 30.09.2022)      [Source: National CSR Data Portal]

Further, the companies are required to file CSR details for financial year 2021-22 on or before 31.03.2023.

Whenever  any  violation  of  CSR  provisions  is  reported,  action  against  such  noncompliant Companies is initiated as per provisions of the Companies Act, 2013 ('Act') after due examination of records and following due process of law. Now, the noncompliance  of  CSR  provisions  has  been  converted  as  a  civil  wrong  w.  e.  f.  22nd January, 2021.

(c) :  Yes Sir. The amendments in the Companies (CSR Policy) Rules, 2014 has been notified on 22 nd  January 2021 and 20 th  September, 2022. These amendments aim at strengthening the Corporate Social Responsibility (CSR) ecosystem by improving and strengthening  the  disclosures, simplifying  the  compliances,  bringing  in  more objectivity,  transparency  and  entrusting  more  responsibility  on  the  Board  of  the company. (d) & (e):  Yes Sir. On the recommendation of High Level Committee on CSR (HLC2015), the Ministry has instituted National CSR Awards to recognise companies for their outstanding contribution through CSR initiatives. The First National CSR Awards ceremony was held on 29 th  October, 2019. These awards (Winners and Honourable Mentions) are given to companies in three broad categories:  Corporate Awards for Excellence  in  CSR,  Corporate  Awards  in  CSR  in  Challenging  Circumstances  and Corporate Awards based on contribution to National Priority Areas such as education, health, women & child development, etc.

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