In every financial year, the CSR Committee shall determine whether the provisions of Section 135 of the Act for mandatory CSR spend are applicable to the Company and accordingly, determine the CSR Expenditure Budgeted for the financial year.
CSR Expenditure Budgeted shall include all expenditure including contribution to corpus or on projects/programmes relating to the CSR Activities. For achieving the CSR objectives through implementation of meaningful and sustainable CSR programmes, the Company shall allocate the following as its annual CSR Expenditure Budgeted:
Any surplus arising out of CSR Activities shall not form part of the business profits of the Company and the same shall be spent on CSR activities.
If the Company is unable to spend the prescribed 2% of its average net profit as mentioned above, the committee will review the reasons for the same and place the same with justification to the Board.
The Company will report reasons for not spending the entire Budget outlay for CSR allocated in any financial year. The unutilized fund would remain part of the corpus and get carried forward for the next year for expenditure thereon. The Company has to provide reason for not spending such amount in that financial year. Further, it will not dilute the fund allocation requirement for such next financial year.
To comply with the obligations, the CSR Committee may also decide to contribute amount of CSR Budget, either wholly or partially towards Corpus of any foundation provided under Schedule VII (as amended from time to time).
List of CSR Activities falling within the purview of Schedule VII of the Act and which the Company may to undertake on related lines:
Activities relating to:
(i) Eradicating extreme hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation and making available safe drinking water;
(ii) Spreading joy and doing things for the benefit of the poor and needy kids
(iii) Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
(iv) Promoting gender equality, empowering women, reducing child motility, improving maternal health, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
(v) Combating human immunodeficiency virus, acquired immune deficiency, syndrome, malaria and other diseases; employment enhancing vocational skills;
(vi) Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water;
(vii) Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts;
(viii) Measures for the benefit of armed forces veterans, war widows and their dependents;
(ix) Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports;
(x) Contribution to the Prime Minister’s National Relief Fund or any other-fund set up by the Central Government or State Government for socio-economic development and relief and for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women;
(xi) Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;
(xii) Rural development projects; slum area development/re-development;
Explanation.— For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.”
(xiii) Social projects and programs/projects that benefit the society;
(xiv) Any other activities in relation to the above and all other activities which forms part of CSR as per Schedule VII of the Companies Act, 2013 (the “Act”) and rules made thereto, as amended from time to time. (Collectively referred to as “CSR Activities”).