The CSR Bill
Companies Act 2013
In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013.
The CSR provisions within the Act is applicable to companies with an annual turnover of Rs.1,000 crore and more, or a net worth of Rs. 500 crore and more, or a net profit of Rs. five crore and more. It requires companies to spend at least 2% of their average net profit in the previous three years on CSR activities.
These rules which will be applicable from the fiscal year 2014 – 15 onwards, also requires companies to set-up a CSR committee consisting of their board members, including at least one independent director.
Moreover, Schedule VII of the Act suggests that while communities must be the focus, companies must also foray beyond it, and integrate CSR into its core operations. Given below is a list of activities that is recognized by this law as CSR.
List of activities under Schedule VII
* Promotion of Education
* Eradication on extreme hunger and poverty
* Reducing child mortality and improving maternal health
* Environmental sustainability
* Social business projects
* Combating HIV-AIDS, malaria and other diseases
* Gender equity and women empowerment
* Contribution to Prime Minister’s relief fund and other such state and central funds
* Employment enhancing vocational skills