Lok Sabha Question No. 2258 (UNSTARRED), answered on 2024-12-09
Subject: Transparency and Accuracy in CSR Figures
Ministry: CORPORATE AFFAIRS
Asked by: Dr. Shivaji Bandappa Kalge, Shri Shankar Lalwani, Smt. Aparajita Sarangi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2258

MONDAY, DECEMBER 9, 2024/AGRAHAYANA 18, 1946 (SAKA)

## TRANSPARENCY AND ACCURACY IN CSR FIGURES

## QUESTION

2258.   Smt. Aparajita Sarangi: Dr. Shivaji Bandappa Kalge: Shri Shankar Lalwani:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a)  the  measures  taken  by  the  Government  to  promote  greater  transparency  and accuracy in CSR figures;
- (b) whether there exists any schemes to facilitate CSR;
- (c) if so, the salient features of the schemes along with its present status;
- (d) the details of the achievements made under the scheme so far; and
- (e) the details of the CSR fund allocated to Health and Education sector by various PSUs like REC, PFC, NTPC, NHPC to Maharashtra State/district-wise?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS   AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA]

(a): The legal 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.

Under the Act, every CSR mandated company has to constitute a CSR Committee. The Committee  shall  formulate  and  recommend  the  CSR  policy  and  the  Board  of  the company plans, decides, executes and monitors the CSR activities of the company based on its recommendations.

Contd….2/ -

The Board of the company is required to disclose the CSR Policy implemented by the company in its Board report and the Board of the company has to satisfy itself that the  funds  so  disbursed  have  been  utilised  for  the  purposes  and  in  the  manner  as approved by it, and the Chief Financial Officer or the person responsible for financial management shall certify to the effect. Further, in case of ongoing project, the Board of a Company shall monitor the implementation of the project with reference to the approved  timelines  and  year-wise  allocation  and  shall  be  competent  to  make modifications,  if  any,  for  smooth  implementation  of  the  project  within  the  overall permissible time period. The details of CSR activities, Impact Assessment etc. are required to be reporte d  by  the  companies  in  the  'Annual  Report  on  CSR'  including annual action plan on CSR which is part of the Company's Board Report. Further, those companies  who  have  their  websites  are  required  to  make  disclosures  such  as composition of CSR Committee, CSR Policy and CSR projects approved by Board on their  website.  The  CSR  framework  is  disclosure  based  and  expenditure  on  CSR activities  is  required  to  be  audited  by  the  statutory  auditors  of  the  company.  The Ministry has notified the Companies (Auditor's Report) Order, 2020, ('CARO, 2020') applicable from FY 2021-22 which requires auditors to state details of any unspent CSR amount. The Government does not issue any direction on which activity or area Company shall spend. The companies are required to disclose the contents of its CSR Policy in its report and place it on the company's website.

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 safeguards for CSR activities implemented by the companies. Whenever 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.

## (b), (c) and (d): There is no such scheme to facilitate CSR.

(e): There is no provision of allocation of CSR funds under the Companies Act, 2013. On the basis of annual filing, district wise CSR expenditure by PSUs on Health and Education Sector in Maharashtra from financial years 2020-21 to 2022-23 is attached at Annexure-I

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## ANNEXURE REFERED TO IN REPLY OF LOK SABHA UNSTARRED QUESTION NO. 2258

Annexure-I FOR 09.12.2024

| District wise CSR expenditure by PSUs on Health & Education Sector in Maharashtra from   | District wise CSR expenditure by PSUs on Health & Education Sector in Maharashtra from   | District wise CSR expenditure by PSUs on Health & Education Sector in Maharashtra from   | District wise CSR expenditure by PSUs on Health & Education Sector in Maharashtra from   | District wise CSR expenditure by PSUs on Health & Education Sector in Maharashtra from   |
|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
| S.No.                                                                                    | District                                                                                 | FY 2020-21                                                                               | FY 2021-22                                                                               | FY 2022-23                                                                               |
| 1.                                                                                       | Ahilyanagar (Ahmednagar)                                                                 | 0.08                                                                                     | 0.09                                                                                     | -                                                                                        |
| 2.                                                                                       | Akola                                                                                    | 0.16                                                                                     | 0.34                                                                                     | -                                                                                        |
| 3.                                                                                       | Amravati                                                                                 | -                                                                                        | -                                                                                        | 0.59                                                                                     |
| 4.                                                                                       | Chhatrapati Sambhajinagar (Aurangabad)                                                   | -                                                                                        | 0.30                                                                                     | 0.40                                                                                     |
| 5.                                                                                       | Beed                                                                                     | -                                                                                        | 0.56                                                                                     | 0.10                                                                                     |
| 6.                                                                                       | Bhandara                                                                                 | 0.10                                                                                     | 1.07                                                                                     | 1.61                                                                                     |
| 7.                                                                                       | Buldhana                                                                                 | 0.00                                                                                     | 2.04                                                                                     | 1.96                                                                                     |
| 8.                                                                                       | Chandrapur                                                                               | 1.14                                                                                     | 0.27                                                                                     | 0.11                                                                                     |
| 9.                                                                                       | Dharashiv (Osmanabad)                                                                    | 0.46                                                                                     | 0.47                                                                                     | 0.04                                                                                     |
| 10.                                                                                      | Dhule                                                                                    |                                                                                          | 0.05                                                                                     | -                                                                                        |
| 11.                                                                                      | Gadchiroli                                                                               | 4.05                                                                                     | 11.90                                                                                    | -                                                                                        |
| 12.                                                                                      | Gondia                                                                                   | -                                                                                        | -                                                                                        | -                                                                                        |
| 13.                                                                                      | Hingoli                                                                                  | -                                                                                        | -                                                                                        | -                                                                                        |
| 14.                                                                                      | Jalna                                                                                    | -                                                                                        | 1.81                                                                                     | 1.33                                                                                     |
| 15.                                                                                      | Kolhapur                                                                                 | 0.17                                                                                     | 0.10                                                                                     | 0.30                                                                                     |
| 16.                                                                                      | Latur                                                                                    | -                                                                                        | 0.02                                                                                     | -                                                                                        |
| 17.                                                                                      | Mumbai City                                                                              | 4.15                                                                                     | 146.00                                                                                   | 161.12                                                                                   |
| 18.                                                                                      | Mumbai Suburban                                                                          | 0.45                                                                                     | -                                                                                        | 0.49                                                                                     |
| 19.                                                                                      | Nagpur                                                                                   | 0.41                                                                                     | 60.91                                                                                    | 16.17                                                                                    |
| 20.                                                                                      | Nanded                                                                                   | 0.20                                                                                     | -                                                                                        | 0.01                                                                                     |
| 21.                                                                                      | Nandurbar                                                                                | 5.34                                                                                     | 2.28                                                                                     | 1.57                                                                                     |
| 22.                                                                                      | Nashik                                                                                   | 4.70                                                                                     | 4.37                                                                                     | 8.91                                                                                     |
| 23.                                                                                      | Palghar                                                                                  | 0.28                                                                                     | 0.04                                                                                     | -                                                                                        |
| 24.                                                                                      | Pune                                                                                     | 1.23                                                                                     | 5.94                                                                                     | 2.22                                                                                     |
| 25.                                                                                      | Raigad                                                                                   | 12.18                                                                                    | 4.60                                                                                     | 14.49                                                                                    |
| 26.                                                                                      | Ratnagiri                                                                                | 0.27                                                                                     | 0.03                                                                                     | 0.40                                                                                     |
| 27.                                                                                      | Sangli                                                                                   | -                                                                                        | 0.10                                                                                     | 0.21                                                                                     |
| 28.                                                                                      | Satara                                                                                   | 0.00                                                                                     | 0.09                                                                                     | 0.35                                                                                     |
| 29.                                                                                      | Sindhudurg                                                                               | -                                                                                        | 0.55                                                                                     | 1.26                                                                                     |
| 30.                                                                                      | Solapur                                                                                  | -                                                                                        | -                                                                                        | 0.45                                                                                     |
| 31.                                                                                      | Thane                                                                                    | 1.17                                                                                     | 16.10                                                                                    | 1.87                                                                                     |
| 32.                                                                                      | Wardha                                                                                   | -                                                                                        | 2.13                                                                                     | -                                                                                        |
| 33.                                                                                      | Washim                                                                                   | -                                                                                        | 0.97                                                                                     | 0.52                                                                                     |
| 34.                                                                                      | Yavatmal                                                                                 | -                                                                                        | 0.03                                                                                     | 0.72                                                                                     |
| 35.                                                                                      | NEC/Not Mentioned*                                                                       | 144.14                                                                                   | 12.86                                                                                    | 8.59                                                                                     |
|                                                                                          | Total                                                                                    | 180.68                                                                                   | 276.04                                                                                   | 225.77                                                                                   |

(Data upto 31.03.2024) (Source: Corporate Data Management Cell)

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

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