Lok Sabha Question No. 5156 (UNSTARRED), answered on 2022-04-04
Subject: Decrease in CSR Spendings
Ministry: CORPORATE AFFAIRS
Asked by: T. R. Paarivendhar

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 5156 ANSWERED ON MONDAY, APRIL 4, 2022/ CHAITRA 14, 1944 (SAKA)

## DECREASE IN CSR SPENDINGS QUESTION

## 5156. DR. T.R.PAARIVENDHAR:

Will the Minister of CORPORATE AFFAIRS  be pleased to state:

- (a) whether the social spending by companies mandated by law plunged by a sharp 64.24  per  cent  in  the  pandemic  year  of  2020-21  and  contributions  towards Corporate  Social  Responsibility(CSR)  slumped  to  Rs.8,828  crores  compared  to Rs.24,689 crore spent in the preceding financial year and if so, the details thereof;
- (b) whether the number of companies engaged in CSR activities dropped by about 93 per cent during the pandemic year and if so, the details thereof; and
- (c) the action being taken or proposed to be taken by the Government to increase CSR  spending  and  also  increase  the  number  of  companies  to  engage  in  CSR activities?

## 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): No, Sir. As per the filings made by the companies in the MCA21 registry, an  amount  of  Rs.  20,360.25  crores  have  been  spent  by  8633  companies  under Corporate  Social  Responsibility  (CSR)  in  Financial  Year(FY)  2020-21  (data  upto 31.12.2021) as against Rs. 24,863.84 crores by 22,664 companies in FY 2019-20.

As per the Companies Act, 2013 ('Act'), the companies are required to hold Annual General Meeting (AGM) within six months from the end of financial year. Thereafter, financial statements and board report containing disclosure about CSR are to be filed in MCA21 within 30 days of the AGM. In view of the disruption caused by COVID19  pandemic,  Registrars  of  Companies  had  accorded  extension  of  time  till  30 th November,  2021  for  conduct  of  AGMs  by  companies.  The  Ministry  vide  General Circular No. 01/2022 dated 14.02.2022 had relaxed the levy of additional fees till 15.03.2022 for filing of financial statement in respect of the financial year 2020-21 and thus the data  regarding  number of companies as well as their CSR spent for financial year 2020-21 is subject to change.

(c) : The Ministry of Corporate Affairs has been undertaking various initiatives by way of making necessary amendments in the CSR provisions of the Act and issuing clarifications including Frequently Asked Questions (FAQs) to create an enabling environment for the CSR mandated companies, to facilitate effective implementation of CSR projects and to develop a CSR eco-system. The Ministry also constituted  two  High  Level  Committees  (HLC)  to  review  the  CSR  framework, developed National CSR data portal, instituted National CSR Awards to recognise companies that have made positive impact on the society through their innovative and  sustainable  CSR  initiatives  and  issued  various  clarifications  allowing  CSR expenditure towards COVID-19 related activities.

******