Lok Sabha Question No. 93 (STARRED), answered on 2015-12-04
Subject: Corporate Social Responsibility
Ministry: CORPORATE AFFAIRS
Asked by: MANOJ RAJORIA, DUSHYANT SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 93 ANSWERED ON FRIDAY THE 4th DECEMBER, 2015/ AGRAHAYANA 13, 1937(SAKA)

## CORPORATE SOCIAL RESPONSIBILITY

## QUESTION

*93. DR. MANOJ RAJORIA: SHRI DUSHYANT SINGH:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) whether the Government has made any assessment of public and private sector  companies  fulfilling  their  obligations  under  the  Corporate  Social Responsibility  (CSR),  if  so,  the  details  and  findings  thereof,  and  if  not,  the reasons therefor;
- (b) whether all public and private sector companies have been mandated to spend at least two per cent of their average net profits for activities under the CSR, if so, the details thereof since inception of Scheme, sector-wise;
- (c) whether the Government proposes to issue new norms for CSR, if so, the details thereof including mechanism put in place by the Government to monitor the activities and utilization of funds by the companies under CSR;
- (d)  the  details  of  work  including  developmental  work  in  rural  areas  of  the country done/proposed to be done by the companies under CSR during each  of the last three years and the current year, state/UT-wise; and
- (e) whether the Government has prepared any scheme to hand over a minimum of five villages to the corporate houses  for comprehensive development, if so, the details thereof?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS

कारपोरेट कार्य मंत्री

(SHRI ARUN JAITLEY)

(

श्री अरुण जेटली (

(a) to (e):  A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN ANSWER TO PART (a) TO (e) OF LOK SABHA STARRED  QUESTION  NO.  93  FOR  4TH  DECEMBER,  2015  REGARDING CORPORATE SOCIAL RESPONSIBILITY.

(a):  The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013, and rules made thereunder have come into force from 01.04.2014. The year 2014-15 was the first year of implementation of CSR by  companies  under  the  legislation.  The  Board  of  the  company,  eligible  to comply  with  the  CSR  provisions  of  the  Act,  is  mandated  to  make  annual disclosure on CSR in the Board's report. The companies are still in the process of filing their Annual Reports with the Ministry.  Details about the number of companies, both public and private sector, fulfilling their CSR obligations are expected to be available after requisite filings are made by companies.

(b):  Section 135 (1) of the Companies Act, 2013 mandates every company with a turnover of Rs. 1000 crores or more; or a networth of Rs. 500 crores or more; or a net profit of Rs. 5 crore or more to spend at least two per cent of their average net profits earned during three immediately preceding financial years on CSR activities. (c):  The Ministry does not propose to issue new norms for CSR at present. The responsibility of monitoring the activities and utilisation of CSR funds by the companies under CSR is vested with the Board of the company under the Act. Government has no role to play in this regard. (d):  The details of activities undertaken by companies under CSR are expected to be available after requisite annual disclosures are made by companies. (e): The provision under the Act, does not envisage any role for the Government in formulation of CSR Scheme / Project / Programme of companies.

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