Corporate Social Responsibility


Corporate Social Responsibility

Every Company having:

  • Net worth of Rs. 500 Crore or more, or
  • Turnover of Rs. 1000 crore or more, or
  • Net Profit of Rs. 5 crore or more

during the immediately preceding financial year applicable is required to constitute a CSR Committee of the Board.

However, if a company ceases to meet the above criteria for 3 consecutive financial years then it is not required to comply with CSR Provisions till such time it meets the specified criteria.

CSR Committee should consist of 3 or more directors, out of which at least one director shall be an independent director. However, if a company is not required to appoint an independent director, then it shall have in 2 or more directors in the Committee.



CSR Policy 

CSR Policy elaborates the activities to be undertaken by the Company as specified in Schedule VII of the Act.

The CSR policy shall monitor the projects or programs.

The Board of  Directors  shall disclose contents of CSR policy in its report and the same shall be displayed on the company’s website, if any. The activities mentioned in the policy must be undertaken by the company


  1. The Board of Directors of every company on which CSR is applicable shall disclose the composition of the CSR Committee in Board Report.
  2. The Board of Directors  shall that ensure that the company spends, in every financial year, at least 2% of the average net profits of the company made during the 3 immediately preceding financial years, in pursuance of its CSR Policy.
  3. The CSR projects/programs/activities undertaken in India only shall amount to CSR Expenditure.
  4. The Company shall give preference to the local area and areas around it where it operates, for spending the amount earmarked for CSR activities and shall specify the reasons for not spending whole of earmarked amount (if it fails to spend some) in Board Report.
  5. The CSR projects or programs or activities not to be considered as CSR Activities:
    1. Expenses for the benefit of only the employees of the company and their families
    2. Contribution of any amount directly or indirectly to any political party

Schedule VII of Companies Act 2013

Activities which may be included by companies in their Corporate Social

Responsibility Policies

  • abolishing poverty, malnourishment and hunger, improvising health care which includes preventive health care and sanitation and making available safe drinking water.
  • improving gender equality, setting up homes and hostels for women and orphans
  • introducing the measures for reducing inequalities faced by socially and economically backward groups.
  • Safeguarding environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining a quality of soil, air and water which also includes a contribution for rejuvenation of river Ganga.
  • improvement in education which includes special education and employment strengthening vocation skills among children, women, elderly and the differently abled and livelihood enhancement projects.
  • areas for the advantage of skilled armed forces, war widows and their dependents
  • rural development projects
  • training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports.
  • Slum area development.
  • contributions or funds provided to technology incubators which are approved by the Central Government
  • contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development providing relief and welfare of the Scheduled Castes, the Scheduled and backward classes, minorities and women.
  • 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

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