Lok Sabha Question No. 1933 (UNSTARRED), answered on 2022-12-19
Subject: Use of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: Manoj Kishorbhai Kotak, Raksha Nikhil Khadse

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1933 ANSWERED ON MONDAY, DECEMBER 19, 2022/ AGRAHAYANA 28, 1944 (SAKA)

## USE OF CSR FUNDS

## QUESTION

1933. SHRI MANOJ KOTAK: SHRIMATI RAKSHA NIKHIL KHADSE:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of the funds spent by public and private sector companies under Corporate Social Responsibility (CSR) in the last five years;
- (b) whether the Government has audited CSR funds spent by the said companies and if so, the details thereof including the CSR funds spent for activities in Maharashtra;
- (c)  whether  the  Government  has  set  up  a  high  level  committee  to  review  the  existing  CSR framework; and
- (d) if so, the details thereof including the recommendations of the committee to develop a more strong and clear CSR regulatory and policy framework?

## 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):  The  broad  framework  for  Corporate  Social  Responsibility  (CSR)  has  been  provided  under Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. All data related to CSR filed by companies in MCA21 registry is available in public domain and can be accessed at www.csr.gov.in. On the basis of annual filings made by Companies in the MCA21 registry, the CSR spent by various public and private sector companies during the Financial Years (FY) 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 respectively are given below:

|                                   | FY 2016-17        | FY 2016-17             | FY 2017-18        | FY 2017-18             | FY 2018-19        | FY 2018-19             | FY 2019-20        | FY 2019-20             | FY 2020-21        | FY 2020-21             |
|-----------------------------------|-------------------|------------------------|-------------------|------------------------|-------------------|------------------------|-------------------|------------------------|-------------------|------------------------|
| Nature of Company                 | No. of Compa nies | Amount Spent (INR Cr.) | No. of Compa nies | Amount Spent (INR Cr.) | No. of Compa nies | Amount Spent (INR Cr.) | No. of Compa nies | Amount Spent (INR Cr.) | No. of Compa nies | Amount Spent (INR Cr.) |
| Public Sector Undertakings (PSUs) | 552               | 3,296.51               | 540               | 3,651.02               | 618               | 4,224.07               | 478               | 5,307.64               | 335               | 4,480.70               |
| Non-PSUs                          | 19003             | 11,098.04              | 20981             | 13,447.19              | 24561             | 15,972.88              | 22475             | 19,647.14              | 17677             | 21,233.95              |
| Grand Total                       | 19555             | 14,394.55              | 21521             | 17,098.20              | 25179             | 20,196.95              | 22953             | 24,954.78              | 18012             | 25,714.65              |

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

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

(b): The CSR architecture is disclosure based and companies are required to file details of CSR activities annually in the MCA21 registry. The CSR mandated companies are required to provide additional information in its Profit & Loss Account regarding amount of expenditure incurred on CSR activities, which is required to be audited by the statutory auditor of the company. Further, the Board of the company is also required to disclose in Board report, the CSR Policy developed and implemented by the company, including the details like funds earmarked, expenditure made, implementing  agencies  appointed  etc.  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 sufficient safeguards in this regard.

On the basis of annual filings made by companies in the MCA21 registry, details of CSR spent by companies in the State of Maharashtra during FY 2016-17 to FY 2020-21 are given below:

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

| State                 | FY 2016-17   | FY 2017-18   | FY 2018-19   | FY 2019-20   | FY 2020-21   | Grand Total   |
|-----------------------|--------------|--------------|--------------|--------------|--------------|---------------|
| Maharashtra (INR Cr.) | 2,414.80     | 2,797.53     | 3,147.66     | 3,348.82     | 3,426.31     | 15,135.12     |

(c) & (d): Yes Sir. The Ministry had set up a High Level Committee (HLC-2018) to review the existing CSR framework and make recommendations to develop a more robust and coherent CSR regulatory and policy framework, and underlying ecosystem. The HLC-2018 had submitted its report on 07 th  August, 2019 which is available in public domain at www.mca.gov.in. Based on the recommendations of HLC-2018, the Ministry carried out amendments in the Section 135 of the  Companies Act, 2013 ('Act') through Companies (Amendment) Act, 2019 and Companies (Amendment)  Act,  2020  and  amendments  in  the  Companies  (CSR  Policy)  Rules,  2014  vide notification dated 22 nd  January, 2021.

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