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TMI BlogCSR – 2 – REPORT ON CORPORATE SOCIAL RESPONSIBILITYX X X X Extracts X X X X X X X X Extracts X X X X ..... CSR – 2 – REPORT ON CORPORATE SOCIAL RESPONSIBILITY - By: - Mr. M. GOVINDARAJAN - Corporate Laws / IBC / SEBI - Dated:- 22-3-2022 - - Corporate Social Responsibility Section 135(1) of the Companies Act, 2013 provides that every company having net worth of ₹ 500 crores or more, or turnover of ₹ 100 crore or more or a net profit of ₹ 5 crores or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. The Corporate Social Responsibility Committee shall,- formulate and recommend to the Board, a Corporate Social Respons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibility Policy which shall indicate the activities to be undertaken by the company 3 [in areas or subject, specified in Schedule VII ; recommend the amount of expenditure to be incurred on the activities referred to in above; and monitor the Corporate Social Responsibility Policy of the company from time to time. The Board shall approve the Corporate Social Responsibility Policy for the company and disclose contents of such Policy in its report and also place it on the company's website, if any, in such manner as may be prescribed. CSR Reporting The Board's Report of a company covered under these rules pertaining to any financial year shall include an annual report on CSR. Every company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having average CSR obligation of ₹ 10 crores or more in pursuance of section 135(5) of the Act, in the 3 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. The impact assessment reports shall be placed before the Board and shall be annexed to the annual report on CSR. CSR 1 Every entity, covered under Rule 4(1), who intends to undertake any CSR activity, shall register itself with the Central Government by filing the form CSR-1 electronically with the Registrar, with effect from the 01 st day of April ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2021. This is the form meant for the registration of entities undertaking CSR activities. On the submission of the Form CSR-1 on the portal, a unique CSR Registration Number shall be generated by the system automatically. CSR - 2 Vide Notification No.107(E), dated 11.02.2022 , the Central Government amended the Companies (Accounts) Rules, 2014 . The amendment brought under this Notification came into effect from 11.02.2022. The Amendment inserted a new Rule viz., 12(1B). According to the newly inserted rule every company covered under the provisions of sub-section (1) to section 135 shall furnish a report on Corporate Social Responsibility in Form CSR-2 to the Registrar of Companies. The form CSR-2 is a web b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased form available on the online portal of MCA wherein the details pertaining to the entity, constitution of CSR committee, whether or not the company has disclosed on its website details about its CSR committee, impact assessment, details of amount spent in the preceding financial years . This form will be an addendum to- AOC 4 ; or AOC -4 XBRL ; or AOC NBFC (IndAS) For the year 2020-2021 this form should be filed on or before 31.03.2022 after filing AOC 4; or AOC -4 XBRL ; or AOC NBFC (IndAS). Information to be furnished in CSR 2 In addition to the general information of the company, the following information is to be furnished in CSR 2 form- The net worth, turnover and net profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the company; The criteria that triggers CSR responsibility; Whether the CSR committee has been constituted? Number of directors in the CSR Committee; Details of the meeting held during the year; If the company has website the same should be disclosed in this form; The following are to be disclosed in the website of the company- Composition of CSR Committee; CSR Policy; CSR projects approved by the board; Whether impact assessment of CSR, in pursuance of Rule 8(3) of Companies (CSR Policy) Rules, 2014 , is carried out? If so whether the same has been disclosed in the Board Report and to provide we blink, if any. Whether any amount is available for set-off, in pursuance of Rule 7(3) of Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies (CSR Policy) Rules, 2014; if yes the following details are to be furnished for the preceding 3 financial years- Amount available for set-off; Amount set-off, in the financial year, if any; Balance amount; Whether the company has completed 3 financial years since its incorporation? If so the number of financial years completed is to be mentioned. The following information relating to net profits and other details preceding 3 financial years are to be furnished- Profit before tax; Net profit computed under section 198 ; Total amount adjusted as per Rule 2(1)(h) of the CST Policy Rules, 2014 Total net profit for section 135 (2 3) ; Average net profit of the company; The follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing information relating to CSR obligation of the company is to be furnished- 2% of average net profit of the company as per Section 135(5) ; (a) Surplus arising out of the CSR projects/ programs or activities of the previous financial year, if any;(b) Amount required to be set off for the financial year, if any;(c) Total CSR Obligation for the financial year (a+b-C); The following information relating to the details of spending of CSR amount are to be furnished- Whether the CSR amount for the financial year has been spent or not? If yes, whether the amount has been spent against- Ongoing projects; Other than ongoing projects; Both ongoing projects and other than ongoing projects; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The following information relating to the details of amount spent against ongoing projects for the financial year are to be furnished- Project id; Item from the list of activities in Schedule VII; Name of the project; Whether local area or not? Location of the project (State/District); Project duration, in months; Amount spent in the financial year; Mode of implementation direct Yes/no; Mode of implementation through implementing agency Name of the agency and its CSR Registration number; The following information relating to the details of amount spent against other than ongoing projects for the financial year are to be furnished- Item from the list of activities in Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VII ; Name of the project; Whether local area or not? Location of the project (State/District); Project duration, in months; Amount spent in the financial year; Mode of implementation direct Yes/no; Mode of implementation through implementing agency Name of the agency and its CSR Registration number; The following details in regard to the amount spent towards CSR are to be furnished- Amount spent in overhead administration; Amount spent on Impact Assessment, if applicable; Total amount spent for the financial year; Amount unspent (excess) spent for the financial year; Amount eligible to transfer to Unspent CSR Account for the financial year as per Section 135(6) before adjustment; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amount to be transferred to Fund specified in Schedule VII for the Financial Year (if total unspent for the Financial Year is greater than unspent for Ongoing projects); The following information related to unspent CSR for the financial year are to be furnished- Transfer to unspent CSR Account as per section 13(6) - Amount to be transferred to Unspent CSR account; Amount actually transferred to Unspent CSR account; Date of Transfer; Deficiency, if any; Transfer to Fund specified in Schedule VII as per second proviso to Section 135(5) for the Financial Year- Amount to be transferred to Fund specified in Schedule VII ; Amount actually transferred to Fund specified in Schedule VI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I; Date of Transfer; Deficiency, if any; the reason(s) if the company has failed to spend two per cent of the average net profit as per section 135(5) is to be specified; Whether any unspent amount of preceding three financial years (financial year ending after 22nd January 2021) has been spent in the financial year? Details of CSR amount spent in the financial year pertaining to three preceding financial year(s)- Preceding Financial Year(s); Amount transferred to Unspent CSR Account under Section 135(6) ; Balance Amount in Unspent CSR Account under section 135 (6) ; Amount Spent in the Financial Year; Amount transferred to a Fund as specified under Schedule VII as per second proviso to Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 135(5) , if any- Amount; Date of transfer; Amount remaining to be spent in succeeding financial years; Deficiency, if any. Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): Number of Ongoing Projects- Project id; Name of the project; Financial Year in which the project was commenced; Amount spent for the project at the beginning of the Financial Year; Amount Spent in the Financial Year; Cumulative Amount Spent at the end of Financial Year; Status of the project - Completed /Ongoing; Whether the new projects undertaken in the financial year from the unspent amount pertaining to three preceding financial years; if yes, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of new CSR projects is/are- Ongoing projects; Other than ongoing projects; Both ongoing and other than ongoing projects; Details of amount spent against new ongoing CSR project in the financial year- Number of Ongoing Projects; Project id; Financial year to which the new project pertains; Item from the list of activities in schedule VII; Name of the project; Local area yes/no; Location of the project State; District; Project during in months; Amount spent in the financial year; Mode of implementation Direct Yes/No; Mode of Implementation - Through Implementing Agency CSR Registration No.; Name; Details of amount spent against new other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ongoing projects in the financial yea Number of Ongoing Projects; Project id; Financial year to which the new project pertains; Item from the list of activities in schedule VII; Name of the project; Local area yes/no; Location of the project State; District; Project during in months; Amount spent in the financial year; Mode of implementation Direct Yes/No; Mode of Implementation - Through Implementing Agency CSR Registration No.; Name; Whether any capital assets have been created or acquired through CSR spent in the financial year? Yes/No; If Yes, enter the number of Capital assets created/ acquired the details relating to such asset(s) so created or acquired thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh CSR spent in the financial year are to be furnished- Short particulars of the property or asset(s) [including complete address and location of the property]; Pin code of the property or asset(s); Date of creation; Amount of CSR spent; Details of entity/ Authority/ beneficiary of the registered owner- CSR Registration Number, if applicable; Name; Registered Address. Signing of the form This form is to be signed by the person authorized by the Board by digital signature. The necessary extract of resolution is to be attached with this form. Declaration The person who signed this form is also to give declaration that- All the requirements of the Companies Act, 2013 and the rules m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade there under in respect of the subject matter of this form and matters incidental thereto have been complied with; Whatever stated in this form and in the attachments thereto, is true, correct and complete and no information material to the subject matter of this form has been suppressed or concealed and is as per the original records maintained by the company. All the required attachments have been completely and legibly attached to this form. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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