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CSR Mandate of Companies

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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 Allocation

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CSR Mandate of Companies

  1. 1. CSR Provision of the Companies Act 04/25/14 1 Webinar for NGOs Conducted by: Soumitra Ghosh (Founder CEO, CSO Partners)
  2. 2. Applicability CSR policy and reporting Program sectors Scope for NGO partnership Financial allocation
  3. 3. 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
  4. 4. 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 persons One: 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 company Other: nominated by the foreign company CSR governance : CSR Committee
  5. 5. 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 committee Approve 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
  6. 6. Applicability CSR policy and reporting Program sectors Scope for NGO partnership Financial allocation
  7. 7. CSR policy
  8. 8. Targeting
  9. 9. Disclosure •Display CSR activities on the website •Annual report on CSR
  10. 10. Disclosure
  11. 11. Reporting on CSR spend CSR project/activity identified Sector in which the project is covered Projects/ program 1) Local area or other 2) State and district of the project/progr am Project/ Program wise budget (Amount outlay) Amount spent on the projects/progr ams Sub heads 1)Direct expense 2) Overheads Cumulative expenditure up to the reporting period Amount spent direct or through impleme ntation agencies
  12. 12. Applicability CSR policy and reporting Program sectors Scope for NGO partnership Financial allocation
  13. 13. 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,
  14. 14. Schedule VII
  15. 15. Schedule VII
  16. 16. Applicability CSR policy and reporting Program sectors Scope for NGO partnership Financial allocation
  17. 17. Scope of partnership
  18. 18. Implementation
  19. 19. Applicability CSR policy and reporting Program sectors Scope for NGO partnership Financial allocation
  20. 20. Budget allocation
  21. 21. Companies act will lead to a huge investment on CSR initiatives
  22. 22. 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
  23. 23. For further clarifications and guidance please contact: soumitra.ghosh@csopartners.org.in

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