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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Corporate Social Responsibility (CSR) Rules Finalised
Feb 28, 2014

Notifications were issued on 27 February to give effect to Section 135 and Schedule VII of the Companies Act, 2013, which relate to Corporate Social Responsibility (CSR) related spending by companies. The concerned rules have been finalised after extensive consultations with all stakeholders. The Rules provide for the manner in which CSR Committee shall formulate and monitor the CSR Policy, manner of undertaking CSR activities, role of the Board of directors therein and format of disclosure of such activities in the Board’s report.

The following important new activities have been included in Schedule VII:

  • Promoting preventive healthcare and sanitation and making available safe drinking water;
  • Setting-up homes and hostels for women and orphans; setting-up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
  • Ensuring ecological balance, protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and maintaining quality of soil, air and water;
  • Livelihood enhancement projects;
  • Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting-up public libraries; promotion and development of traditional arts and handicrafts;
  • Measures for the benefit of armed forces veterans, war widows and their dependents;
  • Training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;
  • Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
  • Rural development projects.

Under the new law, every company having a net worth of Rs.500 crore or more or revenue above Rs.1,000 crore or a net profit above Rs.5 crore needs to spend at least 2% of the average net profits for the past three years on CSR activities specified by the government, which does not include political funding.

Areas that have been defined by the government in the CSR policy include eradicating hunger, poverty and malnutrition; promoting preventive healthcare and sanitation; and the Prime Minister Relief Fund, among others. The policy will also consider measures for the benefit of armed forces veterans, war widows and their dependents.

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