csr mandate of companies
DESCRIPTION
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 AllocationTRANSCRIPT
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CSR Provision of the Companies Act
04/10/23 1
Webinar for NGOsConducted by: Soumitra Ghosh (Founder CEO, CSO Partners)
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ApplicabilityCSR policy and reportingProgram sectorsScope for NGO partnershipFinancial allocation
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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
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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 personsOne: 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 companyOther: nominated by the foreign company
CSR governance : CSR Committee
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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 committeeApprove 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
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ApplicabilityCSR policy and reportingProgram sectorsScope for NGO partnershipFinancial allocation
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CSR policy
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Targeting
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Disclosure
•Display CSR activities on the website•Annual report on CSR
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Disclosure
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Reporting on CSR spend
CSR project/activity identified
Sector in which the project is covered
Projects/ program
1) Local area or other2) State and district of the project/program
Project/ Program wise budget (Amount outlay)
Amount spent on the projects/programs
Sub heads1)Direct expense2) Overheads
Cumulative expenditure up to the reporting period
Amount spent direct or through implementation agencies
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ApplicabilityCSR policy and reportingProgram sectorsScope for NGO partnershipFinancial allocation
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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,
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Schedule VII
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Schedule VII
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ApplicabilityCSR policy and reportingProgram sectorsScope for NGO partnershipFinancial allocation
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Scope of partnership
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Implementation
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ApplicabilityCSR policy and reportingProgram sectorsScope for NGO partnershipFinancial allocation
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Budget allocation
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Companies act will lead to a huge investment on CSR initiatives
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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