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You are here: Home / imp / Can you explain the Indian Companies Act 2013 in relation to CSR?

Can you explain the Indian Companies Act 2013 in relation to CSR?

Corporate Social Responsibility or CSR is a mandate that has been introduced in the rules of the Government of India’s Companies Act,differently-abled 2013 under Section 135 in the year 2014. It mandates the companies that have an annual turnover of 1000 crores or more or a net worth of 500 crores or more or a net profit of 5 crores or more to spend a minimum of 2% of its net profit for social welfare and community development. 

Suggested Areas of Activities for companies to implement their CSR in PROJECT MODE are:  (as per Schedule VII)

  • Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swachh Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;
  • promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently-abled and livelihood enhancement projects;
  • promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, daycare centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
  • ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining the quality of soil, air and water including contribution to the Clean Ganga Fund set up by the Central Government for rejuvenation of river Ganga;
  • 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 art and handicrafts;
  • measures for the benefit of armed forces veterans, war widows and their dependents;
  • training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports;
  • contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Govt. for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
  • contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Govt.
  • rural development projects
  • slum area development.

 

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