Slide is quick snapshot of prevailing provision of Companies Act 2013 on Corporate Social Responsibility. this will help you for quick revision and understanding of same . Hope you like it. Suggestion & advises are heartly invited. thankyou!!

1. Section 135
Companies Act ,2013
CS Shifali Singh

3. CSR is a management concept whereby companies integrate Social and
Environmental concerns in their business operations and interactions with
their stakeholders.
Generally, it is understood as the way in which a company achieves a
balance of ECONOMIC, ENVIROMENTAL and SOCIAL imperatives, while at
the same time addressing the expectations of the shareholders and
stakeholders.

4. Universally
applicable to all
companies
Section 166(2)
(duties of directors)
Applicable to
specified
companies
Section 135 (mandatory
minimum spends on
specified CSR activities
every financial year

5. Section 166(2) requires a director of
company :
 To act in good faith
 For the benefit of its members as whole
 In the best interests of
The company
Its employees
Its Shareholders
The Community
For the protection of environment.

6. Criteria for applicability of CSR
u/s 135(1)
Either of the following 3 criteria
Turnover during
FY Rs. 1000
crores and more
Net Profit during
FY Rs. 5 crore or
more
Net worth
Rs.500 crore or
more

7. Mandatory CSR obligation
under section 135
Constitute
CSR
Committee of
Directors
Formulate
CSR Policy
Undertake
CSR
activities as
CSR Policy
Mandatory CSR
spends of min.
2% of average
net profit in
every FY

8. CSR Committee of the board consisting of:-
 Three or more directors
 Out of which at least one
director should be
INDEPENDENT DIRECTOR.

9. Exception:-
i. An unlisted Company or a Private Company
 Not require to appoint Independent Directors
ii. A Private Company
 Can constitute CSR Committee with 2 director
iii. Foreign Company
 Committee shall comprise at least 2 person of which one
shall be as specified in section 380(1)(d) and another
person shall be nominated by the foreign Company

10.  Formulate and recommend to the board, a
Corporate Social Responsibility
Policy which shall indicate the
activities to be undertaken by
the company as specified in
Schedule VII.
 Recommend the amount of expenditure to
be incurred on the activity.
 Monitor the CSR Policy of the company
from time to time.

11.  After taking into account the
recommendations made by the CSR Committee,
approve the CSR Policy for the company.
 Disclose contents of such Policy in its report.
 Place the Policy on the Company’s Website
 Ensure that Company are undertaking the
activities of policy

12.  Company should spend in every financial year at least 2% of
the Average Net Profit of the company made during the three
immediately proceedings Financial year
 Preceding Three financial year is in pursuance of its CSR Policy.
Preference to the local area and
area around it where it operates,
for sending the amount
earmarked for CSR activities

13.  Eradicating hunger, poverty and
malnutrition.
 Promoting preventive healthcare and
sanitation
 Making available safe drinking
water
 Promoting education
 Livelihood enhancement project
 Empowering women
 Setting up homes and hostels for women
and orphans
 Setting up old age home

14.  Ecological Balance
 Ensuring Environmental Sustainability
 Animal welfare
 Protection of Flora and Fauna
 Protection of National heritage, art and
Culture
 Contribute to specified
Government Funds
 Rural Development Project
 And many more.

15. Contravention of section 135:-
Company who is in default or such other person
shall be punishment with:
 Fine extended to Rs.10,000
----And----
 Contravention continues, further fine extended
to Rs. 1000 for every day.

16. Thank you