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TMI BlogCompanies (Corporate Social Responsibility Policy) Amendment Rules, 2021X X X X Extracts X X X X X X X X Extracts X X X X ..... ads" means the expenses incurred by the company for 'general management and administration' of Corporate Social Responsibility functions in the company but shall not include the expenses directly incurred for the designing, implementation, monitoring, and evaluation of a particular Corporate Social Responsibility project or programme; (c) "Annexure" means the Annexure appended to these rules; (d) "Corporate Social Responsibility (CSR)" means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act in accordance with the provisions contained in these rules, but shall not include the following, namely:- (i) activities undertaken in pursuance of normal course of business of the company: Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject to the conditions that- (a) such research and development activities shall be carried out in collaboration with any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lti-year project undertaken by a Company in fulfilment of its CSR obligation having timelines not exceeding three years excluding the financial year in which it was commenced, and shall include such project that was initially not approved as a multi-year project but whose duration has been extended beyond one year by the board based on reasonable justification; (j) "Public Authority" means 'Public Authority' as defined in clause (h) of section 2 of the Right to Information Act, 2005 (22 of 2005); (k) "section" means a section of the Act. (2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act. ". 3. In the said rules, in rule 3, in sub-rule (2), in clause (b), for the words, brackets and figure "sub-section (2) to (5)", the words, brackets and figure "sub-section (2) to (6)" shall be substituted. 4. In the said rules, for rule 4, the following rule shall be substituted, namely:- "4. CSR Implementation. - (1) The Board shall ensure that the CSR activities are undertaken by the company itself or through - (a) a company established under section 8 of the Act, or a registered p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be competent to make modifications, if any, for smooth implementation of the project within the overall permissible time period. ". 5. In the said rules, in rule 5, for sub-rule (2), the following sub-rule shall be substituted, namely:- "(2) The CSR Committee shall formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy, which shall include the following, namely:- (a) the list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act; (b) the manner of execution of such projects or programmes as specified in sub-rule (1) of rule 4; (c) the modalities of utilisation of funds and implementation schedules for the projects or programmes; (d) monitoring and reporting mechanism for the projects or programmes; and (e) details of need and impact assessment, if any, for the projects undertaken by the company: Provided that Board may alter such plan at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect. ". 6. In the said rules, rule 6 shall be omitted. 7. In the said rules, for rule 7, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance sheet filed under clause (b) of sub-section (1) of section 381 of the Act, shall contain an annual report on CSR containing particulars specified in Annexure I or Annexure II, as applicable. (3) (a) Every company having average CSR obligation of ten crore rupees or more in pursuance of sub-section (5) of section 135 of the Act, in the three immediately preceding financial years, shall undertake impact assessment, through an independent agency, of their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study. (b) The impact assessment reports shall be placed before the Board and shall be annexed to the annual report on CSR. (c) A Company undertaking impact assessment may book the expenditure towards Corporate Social Responsibility for that financial year, which shall not exceed five percent of the total CSR expenditure for that financial year or fifty lakh rupees, whichever is less. ". 9. In the said rules, for rule 9, the following rules shall be substituted, namely:- "9. Display of CSR activities on its website. - The Board of Directors of the Company shall mandatorily d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pent for the financial year: Total Amount Spent for the Financial Year. (in Rs.) Amount Unspent (in Rs.) Total Amount transferred to Unspent CSR Account as per section 135(6). Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5). Amount. Date of transfer. Name of the Fund Amount. Date of transfer. (b) Details of CSR amount spent against ongoing projects for the financial year: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. No. Name of the Project. Item from the list of activities in Schedule VII to the Act. Local area (Yes/No). Location of the project. Project duration. Amount allocated for the project (in Rs.). Amount spent in the current financial Year (in Rs.). Amount transferred to Unspent CSR Account for the project as per Section 135(6) (in Rs.). Mode of Implementa tion - Direct (Yes/No). Mode of Implementation - Through Implementing Agency State. District. Name CSR Registration number. 1. 2. 3. TOTAL (c) Details of CSR amount spent against other than ongoing projects for the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the capital asset(s). (b) Amount of CSR spent for creation or acquisition of capital asset. (c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc. (d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset). 11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5). Sd/- (Chief Executive Officer or Managing Director or Director). Sd/- (Chairman CSR Committee). Sd/- [Person specified under clause (d) of sub-section (1) of section 380 of the Act] (Wherever applicable). 11. In the said rules, after annexure-II, following e-form shall be inserted, namely: [E-F. No. CSR-05/3/2020-CSR-MCA] GYANESHWAR KUMAR SINGH, Jt. Secy. Note:- The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 129(E), dated the 27th February, 2014 and were subsequently amended by notification number G.S.R. 644(E), dated the 12th September, 2014, notification number G.S.R. 43(E), dated the 19th January, 2015, not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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