Lok Sabha Question No. 3930 (UNSTARRED), answered on 2022-03-28
Subject: Use of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: Shriniwas Dadasaheb Patil, K. Muraleedharan

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 3930 ANSWERED ON MONDAY, MARCH 28, 2022/ CHAITRA 7, 1944 (SAKA)

## USE OF CSR FUNDS

## QUESTION

3930. SHRI SHRINIWAS PATIL:

SHRI K. MURALEEDHARAN:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the total amount of the Corporate Social Responsibility (CSR) fund allocated and spent by the companies in the country in various sectors like education, health, etc., during the last three years and the current year;
- (b) whether the Government has monitored the spendings of the CSR fund, if so, the details thereof; and
- (c) the number of companies which have failed to spend any amount under CSR and spent less than 20 per cent of CSR fund during the said period?

## 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  (c):    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.  Section  135  of  the  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 spend  at  least  two  per  cent  of  the  average  net  profits  of  the  company  made  over immediately preceding three financial years towards CSR as per the CSR Policy of the Company. Schedule VII of the Act indicates the activities that can be undertaken as CSR. Under the Act, CSR is a Board driven process and the Board of the company is empowered to plan, decide, execute and monitor CSR activities based on the recommendations of its CSR Committee.

The CSR framework is disclosure based and CSR mandated companies are required to file details of CSR activities annually in the MCA21 registry. 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  safeguards  in  this  regard.  As  per  the  legal framework, in case a company spends less than the amount required to be spent under their CSR obligation, the Board is required to specify the reasons for not spending in the Board's  report  and  to  treat  the  unspent  CSR  amount  in  the  manner  as  prescribed  in Section 135 (5) and (6) of the Act. The non-compliance of CSR provisions is a civil wrong w. e. f. 22 nd  January 2021. Whenever any violation of CSR provisions is reported, action against such non-compliant Companies is initiated as per provisions of the Act after due examination of records and following due process of law.

All data related to CSR filed by companies in MCA21 registry, including data on expenditure incurred by Companies on CSR, is available in public domain at www.csr.gov.in. On the basis of the filings made by the companies in the MCA 21 registry, Development Sector-wise details of CSR funds spent by all the companies during the Financial Year (FY) 2018-19, 2019-20 and 2020-21 are at Annexure.

The data for FY 2020-21 is subject to change as the levy of additional fees for the late filing has been relaxed till 15.03.2022. Further, filings for FY 2021-22 are required to be made only after the end of current financial year.

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Annexure

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 3930 FOR 28.03.2022

| Development Sector-wise CSR Expenditure (in Rs. Cr.)   | Development Sector-wise CSR Expenditure (in Rs. Cr.)   | Development Sector-wise CSR Expenditure (in Rs. Cr.)   | Development Sector-wise CSR Expenditure (in Rs. Cr.)   | Development Sector-wise CSR Expenditure (in Rs. Cr.)   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| S.N.                                                   | Development Sector                                     | FY 2018-19                                             | FY 2019-20                                             | FY 2020-21                                             |
| 1                                                      | Agro Forestry                                          | 64.75                                                  | 67.35                                                  | 17.22                                                  |
| 2                                                      | Animal Welfare                                         | 98.28                                                  | 105.34                                                 | 139.83                                                 |
| 3                                                      | Armed Forces, Veterans, War Widows/ Dependents         | 90.18                                                  | 61.91                                                  | 66.18                                                  |
| 4                                                      | Art And Culture                                        | 225.08                                                 | 932.74                                                 | 396.97                                                 |
| 5                                                      | Clean Ganga Fund                                       | 8.11                                                   | 6.63                                                   | 7.22                                                   |
| 6                                                      | Conservation Of Natural Resources                      | 173.55                                                 | 159.20                                                 | 78.62                                                  |
| 7                                                      | Education                                              | 6,092.46                                               | 7,155.31                                               | 5,056.49                                               |
| 8                                                      | Environmental Sustainability                           | 1,364.21                                               | 1,461.31                                               | 799.91                                                 |
| 9                                                      | Gender Equality                                        | 51.81                                                  | 82.93                                                  | 26.79                                                  |
| 10                                                     | Health Care                                            | 3,605.54                                               | 4,887.64                                               | 5,474.62                                               |
| 11                                                     | Livelihood Enhancement Projects                        | 906.77                                                 | 1,077.10                                               | 654.60                                                 |
| 12                                                     | Other Central Government Funds                         | 730.96                                                 | 930.44                                                 | 1,327.85                                               |
| 13                                                     | Poverty, Eradicating Hunger, Malnutrition              | 1,189.66                                               | 1,147.95                                               | 977.95                                                 |
| 14                                                     | Prime Minister's National Relief Fund                  | 320.67                                                 | 796.98                                                 | 1,452.94                                               |
| 15                                                     | Rural Development Projects                             | 2,428.88                                               | 2,289.02                                               | 1,671.50                                               |
| 16                                                     | Safe Drinking Water                                    | 227.42                                                 | 252.99                                                 | 175.06                                                 |
| 17                                                     | Sanitation                                             | 506.66                                                 | 521.64                                                 | 292.45                                                 |
| 18                                                     | Senior Citizens Welfare                                | 44.97                                                  | 52.18                                                  | 37.61                                                  |
| 19                                                     | Setting Up Homes And Hostels For Women                 | 57.01                                                  | 47.78                                                  | 28.22                                                  |
| 20                                                     | Setting Up Orphanage                                   | 12.89                                                  | 36.47                                                  | 9.58                                                   |
| 21                                                     | Slum Area Development                                  | 51.06                                                  | 42.91                                                  | 16.63                                                  |
| 22                                                     | Socio-Economic Inequalities                            | 167.84                                                 | 214.64                                                 | 85.47                                                  |
| 23                                                     | Special Education                                      | 185.90                                                 | 196.81                                                 | 178.59                                                 |
| 24                                                     | Swachh Bharat Kosh                                     | 95.50                                                  | 53.37                                                  | 148.14                                                 |
| 25                                                     | Technology Incubators                                  | 32.09                                                  | 53.50                                                  | 50.55                                                  |
| 26                                                     | Training To Promote Sports                             | 308.87                                                 | 301.92                                                 | 212.57                                                 |
| 27                                                     | Vocational Skills                                      | 798.11                                                 | 1,165.12                                               | 574.14                                                 |
| 28                                                     | Women Empowerment                                      | 236.34                                                 | 259.26                                                 | 135.24                                                 |
| 29                                                     | NEC/ Not Mentioned*                                    | 87.61                                                  | 503.40                                                 | 267.29                                                 |
| Grand Total (in Cr.)                                   | Grand Total (in Cr.)                                   | 20,163.18                                              | 24,863.84                                              | 20,360.25**                                            |

(Data upto 31.12.2021) [Source: National CSR Data Portal]

* Companies either did not specify the names of Sectors or indicated more than one Sector where projects were undertaken.
- ** Data for FY 2020-21 is subject to change as the levy of additional fees for the late filing has been relaxed till 15.03.2022.

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