Lok Sabha Question No. 14 (UNSTARRED), answered on 2023-12-04
Subject: Unspent Amount under CSR by PSUs and PSBs
Ministry: CORPORATE AFFAIRS
Asked by: Ramdas Chandrabhanji Tadas

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 14 ANSWERED ON MONDAY, DECEMBER 4, 2023 AGRAHAYANA 13, 1945 (SAKA)

## UNSPENT AMOUNT UNDER CSR BY PSUs and PSBs QUESTION

14. SHRI RAMDAS C. TADAS

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of Public Sector Undertakings (PSUs) and private sector companies which  have  not  spent  any  funds  under  Corporate  Social  Responsibility  (CSR) during the last two years and the current year;
- (b) the number of such PSUs/companies/institutions throughout the country against which action has been taken;
- (c) whether  the  Government  has  received  complaints  regarding  manipulations  by such PSUs/ companies/institutions;
- (d) if  so,  whether  the  Government  has  set  up  any  Committee/authority which  can ensure proper use of CSR funds and monitor their activities;
- (e) if so, the details thereof; and
- (f) 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)  to  (c)  :  The  broad  framework  for  Corporate  Social  Responsibility  (CSR) has  been provided through Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014. 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 expenditure on CSR activities is required to be audited by the statutory auditors of the company.

Contd…2/ -

Further,  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 Board of the company is also required to disclose the CSR Policy implemented by the company in its Board report. Under Rule 4(5) of the Companies (CSR Policy) Rules, 2014 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. 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.

The CSR related disclosures are filed by the companies in the MCA 21 portal. 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.

On the basis of annual filings made by Companies in the MCA21 registry, the CSR expenditure  by  Public  Sector  Undertakings  (PSUs)  and  Non-PSUs  during  the  last three Financial Years (FY) i.e., 2019-20, 2020-21 to 2021-22 are given below:

(Data upto 31.03.2023)      [Source: National CSR Data Portal]

| CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   | CSR Expenditure by PSUs and Non-PSUs (Amount in Crore)   |
|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
| Nature of Company                                        | FY 2019-20                                               | FY 2019-20                                               | FY 2020-21                                               | FY 2020-21                                               | FY 2021-22                                               | FY 2021-22                                               |
| Nature of Company                                        | No. of Companies                                         | Amount Spent                                             | No. of Companies                                         | Amount Spent                                             | No. of Companies                                         | Amount Spent                                             |
| PSUs                                                     | 483                                                      | 5,310.12                                                 | 448                                                      | 4,486.27                                                 | 313                                                      | 4,313.46                                                 |
| Non-PSUs                                                 | 22,502                                                   | 19,655.70                                                | 20,392                                                   | 21,724.68                                                | 18,310                                                   | 21,619.34                                                |
| Grand Total                                              | 22,985                                                   | 24,965.82                                                | 20,840                                                   | 26,210.95                                                | 18,623                                                   | 25,932.80                                                |

Moreover, the companies are required to file the CSR details for the FY 2022-23 on or before 31.03.2024.

(d) to (f): No, Sir. 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  Government  does  not  issue  any specific direction to the companies to spend in any particular activity.

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