CSO Partners in collaboration with CII conducted a CSR Online Educational Series exclusively for NGOs. This is the second presentation in the series
It covers the following topic
- CSR Provision Applicablility
- CSR Policy and Reporting
- Program Sectors
- Scope for NGO Partnership
- Financial Allocation
3. Applicability
•It will also apply to foreign companies registered in India
•Net profit will not include dividend income received from another Indian
company following the provisions of the companies law or from profits of
its own overseas branches
4. CSR Committee consisting of three
or more directors, out of which at
least one director shall be an
independent director
Unlisted public company or
private company can have a
committee without such an
independent director
A private company having
only two directors on its
boards shall constitute its
committee with two such
directors
For foreign company, committee should have at least two persons
One: Resident in India authorized to accept on behalf of the company service of process and
any notices or other documents required to be served on the company
Other: nominated by the foreign company
CSR governance : CSR Committee
5. Role of CSR Committee and the
board
• Formulate and recommend a
CSR policy
• Recommend activities and
amount of expenditure to be
incurred
• Monitor the policy from time
to time
Constitute a CSR committee
Approve a CSR policy (indicating
the list of activities along with the
expenditure) & publish the same
in its report and on the website
Spend at least 2% of average net
profit during the three
immediately preceding financial
years. If not, specify the reasons
for not spending the amount
Ensure that the activities as are
included in CSR policy of the
company are undertaken by the
company
CSR CommitteeCSR Committee
BoardBoard
11. Reporting on CSR spend
CSR
project/activity
identified
Sector in
which the
project is
covered
Projects/
program
1) Local area
or other
2) State and
district of
the
project/progr
am
Project/
Program
wise
budget
(Amount
outlay)
Amount spent
on the
projects/progr
ams
Sub heads
1)Direct
expense
2) Overheads
Cumulative
expenditure
up to the
reporting
period
Amount
spent
direct or
through
impleme
ntation
agencies
13. Schedule VII
MCA has informed High Court that Schedule VII to include promoting healthcare including preventive healthcare. This would encompass the
entire health care area, including the treatment of diseases, etc,
22. Of the 9000 eligible companies…..
39% of the projected
investment is anticipated
to be contributed by top
200 companies (Rs.58740
million)
Companies Investment (Million Rs.)
200 58,740
8800 1,21,260
Source: Emerging Philanthropy in India
Subsection 4 of clause 149
Every listed public company shall have at least one-third of the total number of directors as independent directors and the Central Government may prescribe the minimum number of independent directors in case of any class or classes of public companies.
Clause d of subsection 1 of 380 clause
the name and address or the names and addresses of one or more persons resident in India authorised to accept on behalf of the company service of process and any notices or other documents required to be served on the company;