Lok Sabha Question No. 197 (UNSTARRED), answered on 2024-11-25
Subject: Utilisation of CSR Funds
Ministry: CORPORATE AFFAIRS
Asked by: Shri Y S Avinash Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 197 ANSWERED ON MONDAY, NOVEMBER 25, 2024/ 4 AGRAHAYANA, 1946

## (SAKA)

## UTILISATION OF CSR FUNDS QUESTION

## 197. SHRI Y S AVINASH REDDY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of the funds utilised and unutilised along with the major activities/ programmes undertaken by various public sector and private sector companies under Corporate Social Responsibility (CSR) during the last three years in the country, State/UT-wise including Andhra Pradesh;
- (b) whether  some  companies  utilise  CSR  funds  for  their  employees,  transport facilities, beautification of the area, providing better facilities in schools and hospitals and maintaining public relations;
- (c) if so, the details thereof; and
- (d) the  steps  taken/proposed  to  be  taken  by  the  Government  to  ensure  proper utilisation of CSR funds as per rules?

## 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) :  On the basis of annual filings made by Companies in the MCA21 registry, sectorwise & state-wise Corporate Social Responsibility (CSR)  spent by all public as well as private sector companies  during the last three financial years (FY) i.e  2020-21, 2021-22 & 2022-23 is attached as Annexure-I & Annexure-II respectively. Further, w.r.t unutilised CSR obligation 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.
- (b) & (c): Rule 2 (1) (d) (iv) of the Companies (CSR Policy) Rules, 2014 prescribes that CSR projects/ programmes/ activities that benefit only the employees of a company shall not be considered as CSR activities. The legal framework for CSR has been provided under Section 135 of the Companies Act, 2013 ('Act'), Schedule VII of the Act and Companies (CSR Policy) Rules, 2014.  Schedule VII of Companies Act, 2013 (Act) enlists  areas or  activities that may be  undertaken   by  a  company as   CSR.

(d) : Every eligible company has to constitute a CSR Committee comprising three or more directors. The Committee shall formulate and recommend the CSR policy which indicates the activities to be undertaken by the company in area or subject specified in Schedule VII. The Board of the company plans, decides, executes and monitors the  CSR  activities  of  the  company  based  on  the  recommendation  of  its  CSR Committee. 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.  The  details  of  CSR  activities,  Impact Assessment etc. are required to be reported by all the companies in the 'Annual Report on CSR' including annual action plan on CSR which is part of the Company's Board Report. The Board's Report including Annual Report on CSR is an important tool of communication by the Board of a company to its shareholders. 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 for public access and transparency.

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 framework is disclosure based and expenditure on CSR activities is required to be audited by the statutory  auditors  of  the  company.  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.

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## Annexure-I

## ANNEXURE REFERED TO IN REPLY OF LOK SABHA UNSTARRED QUESTION NO. 197 FOR 25.11.2024

| Sector-wise CSR expenditure from 2020-21 to 2022-23 (Amount in Rs. in crores)   | Sector-wise CSR expenditure from 2020-21 to 2022-23 (Amount in Rs. in crores)   | Sector-wise CSR expenditure from 2020-21 to 2022-23 (Amount in Rs. in crores)   | Sector-wise CSR expenditure from 2020-21 to 2022-23 (Amount in Rs. in crores)   | Sector-wise CSR expenditure from 2020-21 to 2022-23 (Amount in Rs. in crores)   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| S. No.                                                                          | Development Sector                                                              | FY 2020-21                                                                      | FY 2021-22                                                                      | FY 2022-23                                                                      |
| 1                                                                               | Agro forestry                                                                   | 20.90                                                                           | 34.27                                                                           | 65.07                                                                           |
| 2                                                                               | Animal welfare                                                                  | 193.55                                                                          | 168.79                                                                          | 315.98                                                                          |
| 3                                                                               | Armed Forces, Veterans, War Widows/ Dependants                                  | 84.05                                                                           | 47.22                                                                           | 62.27                                                                           |
| 4                                                                               | Art And Culture                                                                 | 493.13                                                                          | 248.34                                                                          | 441.02                                                                          |
| 5                                                                               | Conservation of natural resources                                               | 92.00                                                                           | 273.82                                                                          | 580.37                                                                          |
| 6                                                                               | Education                                                                       | 6,693.25                                                                        | 6,569.82                                                                        | 10,085.78                                                                       |
| 7                                                                               | Environmental Sustainability                                                    | 1,030.16                                                                        | 2,433.24                                                                        | 1,960.13                                                                        |
| 8                                                                               | Gender Equality                                                                 | 43.83                                                                           | 104.67                                                                          | 119.83                                                                          |
| 9                                                                               | Health Care                                                                     | 7,325.83                                                                        | 7,816.29                                                                        | 6,830.60                                                                        |
| 10                                                                              | Livelihood Enhancement Projects                                                 | 938.91                                                                          | 854.78                                                                          | 1,654.39                                                                        |
| 11                                                                              | Other Central Government Funds                                                  | 3,491.30                                                                        | 1,620.09                                                                        | 1,091.86                                                                        |
| 12                                                                              | Poverty, Eradicating Hunger, Malnutrition                                       | 1,407.58                                                                        | 1,896.95                                                                        | 1,232.62                                                                        |
| 13                                                                              | Rural development projects                                                      | 1,850.71                                                                        | 1,833.76                                                                        | 2,005.37                                                                        |
| 14                                                                              | Safe drinking water                                                             | 203.13                                                                          | 182.68                                                                          | 246.36                                                                          |
| 15                                                                              | Sanitation                                                                      | 338.97                                                                          | 313.26                                                                          | 429.91                                                                          |
| 16                                                                              | Senior citizens welfare                                                         | 56.47                                                                           | 79.58                                                                           | 132.87                                                                          |
| 17                                                                              | Setting up homes and hostels for women                                          | 44.52                                                                           | 100.92                                                                          | 48.53                                                                           |
| 18                                                                              | Setting up orphanage                                                            | 21.88                                                                           | 27.52                                                                           | 41.24                                                                           |
| 19                                                                              | Slum area development                                                           | 88.95                                                                           | 58.38                                                                           | 93.84                                                                           |
| 20                                                                              | Socio-economic inequalities                                                     | 149.81                                                                          | 164.90                                                                          | 154.01                                                                          |
| 21                                                                              | Special education                                                               | 209.24                                                                          | 190.52                                                                          | 305.67                                                                          |
| 22                                                                              | Technology incubators                                                           | 62.62                                                                           | 8.57                                                                            | 1.38                                                                            |
| 23                                                                              | Training To Promote Sports                                                      | 243.39                                                                          | 291.85                                                                          | 526.14                                                                          |
| 24                                                                              | Vocational skills                                                               | 717.65                                                                          | 1,034.18                                                                        | 1,164.19                                                                        |
| 25                                                                              | Women Empowerment                                                               | 206.00                                                                          | 261.34                                                                          | 396.99                                                                          |
| 26                                                                              | NEC (Not Elsewhere Covered)/Not Mentioned *                                     | 203.14                                                                          | 0.59                                                                            | 1.50                                                                            |
|                                                                                 | Total                                                                           | 26,210.95                                                                       | 26,616.30                                                                       | 29,987.92                                                                       |

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

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

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Annexure-II ANNEXURE REFERED TO IN REPLY OF LOK SABHA UNSTARRED QUESTION NO. 197 FOR

## 25.11.2024

| state-wise CSR expenditure from 2020-21 to 2022-23   | state-wise CSR expenditure from 2020-21 to 2022-23   | state-wise CSR expenditure from 2020-21 to 2022-23   | state-wise CSR expenditure from 2020-21 to 2022-23   | state-wise CSR expenditure from 2020-21 to 2022-23   |
|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
| S. No.                                               | State/UT                                             | FY 2020-21                                           | FY 2021-22                                           | FY 2022-23                                           |
| 1                                                    | Andaman And Nicobar                                  | 2.86                                                 | 9.71                                                 | 2.53                                                 |
| 2                                                    | Andhra Pradesh                                       | 719.81                                               | 656.79                                               | 954.65                                               |
| 3                                                    | Arunachal Pradesh                                    | 10.58                                                | 119.42                                               | 13.35                                                |
| 4                                                    | Assam                                                | 180.23                                               | 406.17                                               | 470.25                                               |
| 5                                                    | Bihar                                                | 89.89                                                | 165.97                                               | 235.37                                               |
| 6                                                    | Chandigarh                                           | 13.40                                                | 50.88                                                | 18.63                                                |
| 7                                                    | Chhattisgarh                                         | 325.63                                               | 305.29                                               | 596.11                                               |
| 8                                                    | Dadra And Nagar Haveli                               | 21.98                                                | 14.11                                                | 13.71                                                |
| 9                                                    | Daman And Diu                                        | 5.25                                                 | 4.13                                                 | 9.40                                                 |
| 10                                                   | Delhi                                                | 724.59                                               | 1,196.34                                             | 1,483.91                                             |
| 11                                                   | Goa                                                  | 41.92                                                | 45.43                                                | 58.16                                                |
| 12                                                   | Gujarat                                              | 1,461.60                                             | 1,604.26                                             | 2,008.42                                             |
| 13                                                   | Haryana                                              | 550.86                                               | 683.95                                               | 701.07                                               |
| 14                                                   | Himachal Pradesh                                     | 106.31                                               | 140.22                                               | 138.63                                               |
| 15                                                   | Jammu and Kashmir                                    | 35.56                                                | 50.68                                                | 71.22                                                |
| 16                                                   | Jharkhand                                            | 226.54                                               | 193.33                                               | 388.35                                               |
| 17                                                   | Karnataka                                            | 1,277.81                                             | 1,839.73                                             | 1,985.82                                             |
| 18                                                   | Kerala                                               | 290.67                                               | 239.73                                               | 351.60                                               |
| 19                                                   | Lakshadweep                                          | 0.01                                                 | 0.45                                                 | 0.02                                                 |
| 20                                                   | Leh & Ladakh                                         | -                                                    | 14.84                                                | 11.72                                                |
| 21                                                   | Madhya Pradesh                                       | 375.51                                               | 427.68                                               | 656.42                                               |
| 22                                                   | Maharashtra                                          | 3,464.81                                             | 5,380.41                                             | 5,497.32                                             |
| 23                                                   | Manipur                                              | 10.39                                                | 15.62                                                | 53.45                                                |
| 24                                                   | Meghalaya                                            | 17.63                                                | 19.63                                                | 21.73                                                |
| 25                                                   | Mizoram                                              | 0.97                                                 | 6.94                                                 | 10.99                                                |
| 26                                                   | Nagaland                                             | 3.57                                                 | 12.46                                                | 13.57                                                |
| 27                                                   | Odisha                                               | 578.16                                               | 670.32                                               | 987.70                                               |
| 28                                                   | Puducherry                                           | 12.43                                                | 9.31                                                 | 12.55                                                |
| 29                                                   | Punjab                                               | 158.46                                               | 184.89                                               | 247.57                                               |
| 30                                                   | Rajasthan                                            | 670.00                                               | 711.82                                               | 1,102.37                                             |
| 31                                                   | Sikkim                                               | 17.28                                                | 28.24                                                | 36.18                                                |
| 32                                                   | Tamil Nadu                                           | 1,174.07                                             | 1,432.06                                             | 1,562.48                                             |
| 33                                                   | Telangana                                            | 627.71                                               | 685.87                                               | 1,007.54                                             |
| 34                                                   | Tripura                                              | 9.29                                                 | 15.91                                                | 19.26                                                |
| 35                                                   | Uttar Pradesh                                        | 907.32                                               | 1,339.18                                             | 1,152.57                                             |
| 36                                                   | Uttarakhand                                          | 160.58                                               | 228.08                                               | 301.11                                               |
| 37                                                   | West Bengal                                          | 471.48                                               | 567.21                                               | 762.29                                               |
| 38                                                   | PAN India *                                          | 7,805.03                                             | 5,525.16                                             | 6,060.98                                             |
| 39                                                   | PAN India (Other Centralized Funds)                  | 3,491.30                                             | 1,613.57                                             | 948.81                                               |
| 40                                                   | NEC (Not Elsewhere Covered)/Not *                    | 169.47                                               | 0.52                                                 | 20.12                                                |
|                                                      | Mentioned Total                                      | 26,210.95                                            | 26,616.30                                            | 29,987.92                                            |

(Data upto 31.03.2024) (Source: Corporate Data Management Cell) * Companies either did not specify the names of state or indicated more than one state where projects were undertaken.

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