TOPIC 29: QUICK REFERENCE TO “Corporate Social Responsibility (Few aspects only)”

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Quick Reference to " Corporate Social Responsibility " (Few aspects only ) 
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Legal Provision:-
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Section 135 of Companies Act, 2013.
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Companies ( CSR Policy ) Rules, 2014.
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Schedule VII of Companies Act, 2013.
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Points:-
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1. Meaning:-
In Simple Words, Corporate Social Responsibility Means Contribution towards our Society in a principled manner.
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2. Applicability:-
Companies having Turnover of ₹ 1000 cr or more.
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Having net worth of ₹ 500 cr or more.
Or
Having Net Profit of ₹ 5 cr or more.
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3. How much shall be Contribute:-
2% of Avg. Profit of Preceding 3 years.
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4. CSR Committee:-
# It shall consist of 3 or more Directors.
# One Director should be independent Director out of 3.
# If there is only 2 directors in case of Pvt.co then CSR Committee is also with that 2 directors.
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5. Other Important Aspects :-
# The CSR activities undertaken outside India is not Considered as CSR activities.
# Contribution to Political Party as per Section 182 of Companies Act, 2013 is not Considered as CSR activity.
# CSR expenditure cannot be claimed as Business Expenditure.
# Marathons / Awards / Advertisement / Activities in Normal Course of Business / Expenses for fulfillment of any other act are not Considered as CSR activities.
# If the Company fails to Spend CSR amount then it should be mentioned in Board Report. Because it is based on " Comply or Explain" Principle.
# Excess CSR amount Spend cannot be carried forward to Next year.
# If there is any Surplus from CSR Projects then It should not be Considered as Business Profit of the Company.
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REGARDS
ACA SOURAV BAGARIA