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 ..... 3 (18 of 2013); (b) Administrative overheads 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 shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Ongoing Project means a multi-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 es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith reference to the approved timelines and year-wise allocation and shall 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. . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CSR containing particulars specified in Annexure I or Annexure II, as applicable. (2) In case of a foreign company, 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl. No. Financial Year Amount available for set-off from preceding financial years (in Rs) Amount required to be setoff for the financial year, if any (in Rs) 1 2 3 TOTAL 6. Average net profit of the company as per section 135(5). 7. (a) Two percent of average net profit of the company as per section 135(5) (b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years. (c) Amount required to be set off for the financial year, if any (d) Total CSR obligation for the financial year (7a+7b-7c). 8. (a) CSR amount spent or unspent for the financial year: Total Amount Spent for the Financial Year. (in Rs.) Amount Unspent (in Rs.) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TOTAL (c) Details of CSR amount spent against other than ongoing projects for the financial year: (1) (2) (3) (4) (5) (6) (7) (8) 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. Amount spent for the project (in Rs.). Mode of implementati on - Direct (Yes/No). Mode of implementation - Through implementing agency. State. District. Name. CSR registration number. 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. 3. TOTAL (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): (1) (2) (3) (4) (5) (6) (7) (8) (9) Sl. No. Project ID. Name of the Project. Financial Year in which the project was commenced. Project duration. Total amount allocated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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