Transcript Corporate social responsibility

Corporate
Social Responsibilty
-Ahmedabad Chapter Programme
21.03.2015
Umesh Ved
Practicing Company Secretary
CORPORATE SOCIAL
RESPONSIBILITY
“When
the wind blows there are
those that build walls and then
there are those that build
windmills”
CONCEPT


The responsibility of the enterprises for their
impacts on society
Integration of factors such as social,
environmental, ethical, human rights , etc.
CSR IN INDIA



Traditionally-philanthropic activity
Moved from institutional building to community
development
Largely restricted to community development
135- COMPANIES ACT, 2013

Mandatory for every company( listed, unlisted
public or private, holding, subsidiary and foreign)
complying any one of the following:
Turnover> 1000crore INR
 Net Worth> 500 crore INR
 Net Profit> 5crore INR


Spends in every financial year atleast 2% of the
average net profits of the company during the 3
immediately preceding financial years
CSR ACTIVITIES
PART OF CSR ACTIVITES

Swach Bharat Kosh
&
Contribution to Clean Ganga fund
CSR ACTIVITES

Co. may undertake CSR activities through
Registered Trust or
A registered society or
A co. its holding or subsidiary
established under under section 8
 May collaborate with other companies
 Activities that benefit only the emlpoyees of the
company and their family not a part of CSR
activity
CONSTITUTION OF CSR COMMITTEE



3 or more directors with atleast 1 independent
Director
A company without independent director can
have a committee without an independent
director
If a private company has only two directors, the
committee can have only two directors
ROLE OF CSR COMMITTEE



Formulate and recommend a CSR policy to the
Board
Recommend activities and amount of expenditure
to be incurred
Monitor CSR policy form time to time
ROLE OF THE BOARD
Form a CSR committee
 Approve the CSR policy
 Ensure implementation of the activities under
CSR
 Ensure 2 % Spend
 Disclose reasons for not spending the amount(if
applicable)

CSR POLICY

It shall inter-alia include:
a list of CSR projects or programs within the
purview of the Schedule VII of the Act.
monitoring process of such projects or programs

Policy to specify the surplus arising out of the
CSR projects or programs not to form part of
business profit of the company.
CSR EXPENDITURE

It shall include all expenditure related to CSR
activities as per Schedule VII and doesnot
include expenditure on any item not in confirmity
with the activities mentioned under Schedule VII
CSR REPORTING



Form a part of Board’s Report
In case of a Foreign Company, BS file under
Section 381(1)(b) shall contain an Annexure
regarding report on CSR
After considering the recommendations of CSR
committee , the contents of CSR policy shall be
displayed on company’s website.
CASE STUDY
Facts:
Company to build to labour camps for the
workers
 Proposed to be constructed by march, 2016
 Workers will be residing form 2016 to 2019
 Labour camps to be handed over to Village
Panchayat after completion of project in 2019
 The same can be used for the purpose of
Schools
Hospitals
Any other utility for public interest

QUESTIONS

Camps required to be handed in one go or in
phases over certain years from 2019 onwards
When will the CSR spent be considered?
when expenditure is incurred for building the
camps?
or at the time when they are handed over?
 How will the amount spent be considered in the
books of the company?

THANK YOU