TMI BlogCompanies (Corporate Social Responsibility Policy) Rules, 2014X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Rules, 2014. (2) They shall come into force on the 1st day of April, 2014. 2. Definitions.- (1) In these rules, unless the context otherwise requires, - (a) Act means the Companies Act, 2013 ; (b) Annexure means the Annexure appended to these rules; (c) Corporate Social Responsibility (CSR) means and includes but is not limited to :- (i) Projects or programs relating to activities specified in Schedule VII to the Act ; or (ii) Projects or programs relating to activities undertaken by the board of directors of a company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the company subject to the condition that such policy will cover subjects enumerated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es but defined in the Act shall have the same meanings respectively assigned to them in the Act . 3. Corporate Social Responsibility. - (1) Every company including its holding or subsidiary, and a foreign company defined under clause (42) of section 2 of the Act having its branch office or project office in India, which fulfills the criteria specified in sub-section (I) of section 135 of the Act shall comply with the provisions of section 135 of the Act and these rules: Provided that net worth, turnover or net profit. of a foreign company of the Act shell be computed in accordance with balance sheet and. Profit and loss account of such company prepared in accordance .with the provisions of clause (a) of sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies for undertaking projects or programs or CSR activities in such a manner that the CSR Committees of respective companies are in a position to report separately on such projects or programs in accordance with these rules. (4) Subject to provisions of sub-section (5) of section 135 of the Act, the CSR projects or programs or activities undertaken in India only shall amount to CSR Expenditure. (5) The CSR projects or programs or activities that benefit only the employees of the company and their families shall not be considered as CSR activities in accordance with section 135 of the Act . (6) Companies may build CSR capacities of their own personnel as well as those of their Implementing agencies through Institutions with e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the purview of the Schedule VII of the Act , specifying modalities of execution of such project or programs and implementation schedules for the same; and (b) monitoring process of such projects or programs: Provided that the CSR activities does not include the activities undertaken in pursuance of normal course of business of a company. Provided further that the Board of Directors shall ensure that activities included by a company in its Corporate Social Responsibility Policy are related to the activities included in Schedule VII of the Act. (2) The CSR Policy of the company shall specify that the surplus arising out of the CSR projects or programs or activities shall not form part of the business profit of a compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed to be undertaken and a reference to the web-link to the CSR policy and projects Or programs. 2. The Composition of the CSR Committee. 3. Average net profit of the company for last three financial years 4. Prescribed CSR Expenditure (two per cent. Of the amount as in item 3 above) 5. Details of CSR spent during the financial year. (a) Total amount to be spent for the financial year; (b) Amount unspent, if any; (c) Manner in which the amount spent during the financial year is detailed below. (1) (2) (3) (4) (5) (6) (7) (8) S. No. CSR project or activity id ..... X X X X Extracts X X X X X X X X Extracts X X X X
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