Expenditure and every company including its subsidiary or holding, and a foreign company mentioned under clause (42) of section 2 of the Act having its project office or branch office in India, which fulfills the specified criteria in sub-section (1) of section 135 of the Act shall comply with the provisions of section 135 of the Act and these rules.
Given that net worth, foreign company of the Act net profit or turnover shall be computed in accordance with the profit and loss account of such prepared company in accordance with the provisions of clause(a) of sub-section (1) of section 381 and section 198 of the Act.
Every company including its subsidiary or holding company and a foreign company mentioned under clause (42) of section 2 of the Act having its branch project or office in India, which fulfills the mentioned criteria in sub-section(1) of section 135 of the Act shall comply of section 135 of the Act with the provisions and these rules.
Given that net-worth, net-profit of a foreign company of the Actor turnover shall be computed in accordance with balance-sheet and profit and loss account of such prepared company in respect with the provisions of clause (a) of sub-section (1) of section 381 and section 198 of the Act.
Every company to be company covered which ceases under sub-section (1) of section 135 of the Act for three consecutive financial years shall not needed to —
a, Constitute a CSR committee and
b, Comply with the contained provisions in sub-section (2) to (5) of the mentioned section,
till such time it meets the specified criteria in sub-section (1) of section 135.
The CSR activities shall be undertaken by the company as per it mentioned CSR Policy, as programs or projects or activities (either ongoing or new) excluding undertaken activities in pursuance of its business normal course.
The company board may decide to undertake its CSR activities approved by the CSR committee, through a registered society or registered trust or a established company by the company or its holding or subsidiary or associate company under section 8 of the Act or otherwise.
Provided that –
i, if such trust, company or society by the company is not established or its holding or subsidiary or associate company, it shall have an track record of three years established in undertaking same projects or programs;
ii, The company has mentioned the programs or the project to be undertaken through these entities, the utilization modalities of funds on such projects and the monitoring and programs and reporting mechanism.
A company may also collaborate with other companies for projects undertaking or programs or CSR activities in such a manner that the CSR companies respective are in a position to separately on projects such or programs in respect with these rules.
Subject to provisions of sub-section (5) of section 135 of the Act, the CSR projects or activities undertaken in India or programs only shall amount to CSR Expenditure.
The CSR projects or activities or programs that only benefit the company benefit and their families shall not be considered as CSR activities in respect with section 135 of the Act.
Companies may build CSR capacities of their personnel own as well as those of heir implementing agencies through institutions with established track records of at least three financial years but such expenditure shall not exceed five per cent of total expenditure CSR of the company in one financial year.
Any amount contribution directly or indirectly to any political party under section 182 of the Act, shall not be taken as CSR activity.
The mentioned companies in the rule 3 shall constitute CSR Committee as under:—
a, an unlisted public company or a covered private company covered under sub-section (1) fo section 135 which is not needed to appoint an independent director pursuant to sub-section (4) of section 149 of the Act, shall have its CSR committee without such director.
ii, a private company having two directors only on its Boards shall constitute CSR committee with two directors such.
In accordance to a foreign covered company under these rules. the GSR committee shall compromise of at least two persons of which one person shall be indicated under clause (d) of sub-section (1) of section 380 of the Act and another person by the foreign company shall be nominated.
The CSR committee shall institute a monitoring transparent mechanism for the CSR projects implementation or activities or programs undertaken by the company.
The company CSR policy shall, inter alia, include namely the following:-
a, a list of projects CSR or programs which a company plans to undertake falling within Schedule VII of the Act with the purview, specifying execution modalities of such programs or project and schedules implementation for the same; and
Given that the CSR activities does not include the undertaken activities in pursuance of business of a company of normal course.
Further given that the Board of Directors shall make sure that included activities by a company in its Corporate Social Responsibility Policy are related to the included activities in Scheduled VII of the Act.
The company CSR policy shall indicate that the surplus of the CSR projects arising out or activities or programs shall not form the business part profit of the company.
CSR Expenditure shall include all including expenditure contribution to corpus for programs or projects relating to CSR approved activities by the board on the recommendation of its committee CSR, but does not include any expenditure on an item not in conformly or with activities not in line that fall within the purview of Schedule VII of the Act.
The Board’s company report covered under these rules pertaining to a commencing financial year on or after 1st day of April 2014 shall include an CSR annual report containing specified particulars in Annexure
In case of a foreign company, the filed balance sheet under sub-clause (b) of sub-section (1) of section 381 shall contain an regarding Annexure CSR report.
CSR display activities on its website.
The Board of Directors of the company shall, after considering into account the CSR committee recommendations approve for the company the CSR policy and disclose such policy contents in its report and the same shall be displayed on the website of the company if any, as per the specified particulars in the Annexure.
FORMAT FOR THE ANNUAL REPORT ON CSR ACTIVITIES TO BE INCLUDED IN THE REPORT OF BOARD’S
A brief outline of the CSR’s policy of the company’s, including the projects overview or proposed programs to be undertaken and a reference to the web-link to the policy of CSR and programs or programs.
The CSR committee Composition.
Average company net profit for last three years of the financial years of the company.
Prescribed CSR Expenditure (two per cent of the amount as in item above 3)
CSR details spend during the financial year.
Unspent amount, if any;
Manner in which the spent amount during the financial year is mentioned below.
In case the company has failed to spend two per cent of the net profit average of the last three financial years or thereof any part, the company shall provide the reasons for not spending the amount in its report of the Board.