Broad overview about CSR.

1. Partnering your value journey

2. Corporate Social Responsibility{CSR}
Partnering your value journey

3. Partnering your value journey
No
Yes
Yes
Partnering your value journey
Thinking of Forming a Company?
Are you Aware of the Various
compliance of companies Act
,2013?
Even heard the Term CSR?
Section 135 of the Companies Act
,2013 deals with the provision of
CSR
Have a Quick Glance of it on the
trailing slide.
Yes
No
No

4. Partnering your value journey
What is Corporate Social Responsibility?
Corporate Social Responsibility (CSR , also called corporate conscience, corporate citizenship or sustainable responsible
business/Responsible business ) is a form of corporate self regulation integrated into a business model.
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to
itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship,
companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and
environmental.
To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and
the environment, instead of contributing negatively to them.

5. Partnering your value journey
Applicability of CSR provisions in India
* To all
companies
that have
either of the
above in any
FY.
Net Worth of 500
Crore or more
Annual Turnover of
1000 Crore or more
Net Profit of 5 Crore
or more
During any of
the three
preceding of
FY.
* All Companies means every company including its holding or
subsidiary and foreign company having its branch office or project
in India

6. Partnering your value journey
(1)Turnover :
Sale of goods+sevices
(include other income)
“Net profit”(as per section 198)
Net profit before tax xx
Less:
Capital profit from sale of fixed asset xx
Investments above cost(not carrying amount) xx
Extraordinary items xx
Add:
Penalties xx
Net profit after depreciation as per Schedule-II xx
(2)”Net worth "means that aggregate value of paid up share capital xxx
Add: Reserve made out of profits and securities premium xxx
Less: Unrealized profit or revaluation reserve (xx)
Less: Accumulated losses (xx)
Less: Deferred expenditure (xx)
Less: Misc. exp. not written off (xx)
Net Worth
Definition of Turnover, Net worth and Net profit before tax

7. Partnering your value journey
Amount of CSR to be spend and list of Activities as per Schedule –VI of Companies Act 2013
-Board shall ensure that the
company spends In every
financial year 2% the average net
profit of the company.
- Average Net profit means net
profit as per section 198 of the
companies Act excluding
-- Profits from overseas branches.
-- Dividend income from company
covered under section 135
What Amount of CSR to be spend?
Any other
matter as
may be
prescribed.
Social
Business
Projects
Gender
Equality
Contribution
COVID-19 PM
CARES FUND
Promotion of
education
Women
Empowerment

8. Partnering your value journey
Ineligible expenditure for CSR activities
Spends to
promote CSR
Admin spends on
employee salary /
agency for CSR / rent
of office used for CSR
beyond 5% of CSR
Expenditure
incurred in the
normal course of
business.
1
2
3
4
5
Spends on
employees
or their
families
Spends
outside
India

9. Partnering your value journey
Mode of expenditure
The Board of the company may decide to undertake its CSR activity
A Registered Trust
Registered SocietyA company established under Section 8
of the Companies Act, 2013
Through
Established or setup by
Company on its own or along with
any other company for CSR activities
Central government
Or
State government
Other such institution having track
record of 3 years in undertaking CSR
projects
OROR
Mode of expenditure for CSR

10. Partnering your value journey
Role of the Board and CSR committee
If your company need to pay CSR then there is a
responsibilities of Board or CSR committee?
Role of Board of
Director CSR committee
Form a CSR committee
Ensure implementation of the
activities under CSR
Approve the CSR policy
Disclose reasons for not spending
the amount (if applicable)
Ensure 2% spend
Three or more directors with at least one
independent director
Recommend activities and the amount
of expenditure to be incurred
Formulate and recommend a CSR policy
to the board
Monitor the CSR policy from time to time

11. Partnering your value journey
Other Important Aspects
Some Other Aspects
Accounting for
CSR spends and
tax aspects
Disclosure in
Notes to Financial
Statement
Accrual basis of accounting.
No C/F hence no deferment of CSR expenses
No provision required for deficit in spending of CSR
fund. Only disclosure is required in Director’s Report.
No C/F hence no deferment of CSR
expenses
It’s a non-deductible tax expense as it is not an
expense but appropriation of profit in substance
Gross Amount required to be spent by
the company during the year
Details of Related party transaction e.g,
contribution to a trust controlled by the company
Amount spent during the year
For more details
contact us.

12. ECONOMY and VISION
what our client say about us
Knowledge of our
people differentiates us,
hence our constant
endeavor is to invest in
people and strive for their
growth. We aim to embody
the value of “Grow people,
grow business”
what our client say about us
Commitment to the clients, it’s
a privilege to serve our clients, hence a
value proposition that the advise and
service offered should stand the test of
time.
what our client say about us
Accountability towards society, What ever we do as
Professionals and individuals, we are microcosm of a larger human
experience. Hence, any work we do should not be counter productive for
the human experience of the society we live in.
what our client say about us
Responsibility towards
our profession is the value
that defines our professional
existence, hence is the primary
guide for RKCA associates.
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13. Who we are
In an age of business where
attention and existence is at its
peak, we are proud of the fact that
our heritage spans 5 decades in the
Legal, Accounting and Finance
sectors. As a group of self driven
>100 professionals with 12 offices in
India, connected with 6500
professionals in 70 Countries,
we are your
Local Advisor with
Global Expertise
Why we exist
We exist to accelerate the prowess of
Entrepreneurial energy of India.
Our mission is to enable Economic Vision
of entrepreneurs by providing deep
understanding of legal and finance, use
process of co-creation to partner their
value journey
How we work
Extreme focus on expert
understanding of law, Accounting
and Taxsystems, connection to
financial institutions, use of data
analytics, and process of co-
creating the business
opportunities and challenges to
assist your wealth/value objective
is our routine job.
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14. Asia
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Europe
TBA
GET IN TOUCH
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Dubai
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Hyderabad
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Mumbai
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