According to the Section 135 read with Schedule VII of the companies act which will come into force on 1st April, 2014, all companies with turnover of `1,000 crore and more or a net worth of `500 crore and more or net profit of `5 crore and more -will have to spend at least two per cent of their three-year average profit every year on CSR activity.
The notification is available at http://www.mca.gov.in/Ministry/pdf/CompaniesActNotification1_2014.pdf
The following
important new activities have been included in Schedule VII:
(a) Promoting
preventive health care and sanitation and making available safe drinking water;
(b) Setting up homes
and hostels for women and orphans; setting up old age homes, day care centres
and such other facilities for senior citizens and measures for reducing
inequalities faced by socially and economically backward groups;
(c) Ensuring
ecological balance, protection of flora and fauna, animal welfare,
agro-forestry, conservation of natural resources and maintaining quality of
soil, air and water;
(d)
Livelihood enhancement projects;
(e) 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;
(f) Measures for
the benefit of armed forces veterans, war widows and their dependents;
(g) Training to
promote rural sports, nationally recognised sports, paralympic sports and
Olympic sports;
(h) Contributions
or funds provided to technology incubators located within academic institutions
which are approved by the Central Government;
(i)
Rural development projec
From April 1, all 16,245 registered companies have to
nominate three members for their CSR committee from their board..
To understand the various provisions and concepts regarding CSR
please go to to http://lawsofindiaforcommanman.blogspot.in/2013/09/corporate-social-responsibility-not.html
For more Information on this please email at sonia@ssglawfirm.in
or contact at 9873658554
