CSR for Corporates

  1. Formulating CSR Strategy and Policy

Section 135 of the Companies Act, 2013 require companies to constitute CSR Committee. CSR Committee shall:

  1. Formulate and recommend to the Board, a CSR Policy which shall indicate the activities to be performed by the Company as specified in Schedule VII
  2. Recommend the amount of expenditure to be incurred for the CSR activities
  3. Monitor the Corporate Social Responsibility Policy of the Company from Ctime to time

The Companies Act, 2013 requires every company to put out its CSR policy in the public domain.

A company should develop a long-term vision and strategy which is reviewed periodically in light of changing economic and social environment.

  1. Compliance with the Companies Act

With the onset of CSR Mandate a Company needs to comply with the new requirement of the Companies Act 2013 like

  1. Constituting CSR Committee
  2. Drafting CSR Policy
  3. Obtaining formal Board Approval
  4. Legitimate Spending on CSR Activities
  5. Monitoring of CSR Activities


  1. Ensuring Correct Accounting Treatment and Disclosures

Regulators like Department of Company Affairs, Institute of Chartered Accountants of India, CAG and Income Tax Departments may have different Interpretations of latest provisions of the Companies Act regarding the CSR expenditure. With our long experience in legal and tax matters, we can guide you to harmoniously integrate the interpretations and ensure compliance within the various statues

  1. Tax Implications of CSR Expenditure

Being the first time exercise, following ambiguity exists for tax treatment of CSR expenditure

  1. Whether the expenditure is application of income or appropriation of income?
  2. Whether the amount spent will be allowable expenditure under regular provisions and/or MAT provisions of income tax act?

We can help you to correctly interpret and disclose the expenditure in accordance with the Income Tax Act.

  1. Formation of Trusts/ Societies/ Foundations and their registration under Income Tax Act

We can advice and facilitate formation of vehicle for implementation of CSR activities best suited to your requirements. It can be in form of Trust/ Society or a Foundation

  1. Identifying the channels for Implementing CSR Activities

Current provisions of Companies Act facilitate implementation of CSR Activities through any of the following means

  1. By setting its own non-profit foundation
  2. Through a independent registered trust, society or company , that have an established track record of three years in undertaking similar programs or projects
  3. Collaborating with other companies

With unique dynamics, vision and ideology, every company would like to implement the CSR activity in a manner best suited to their principles. We can help in evaluating and selecting the appropriate channel suited to the Company for implementation of CSR Activities

  1. Due Diligence of the Implementation Partner

Partnering with a trusted partner with direct access to needy is critical step of a successful and meaningful CSR program.

Assessing the capacity, resources and background before committing effort and resource to the implementation can make a significant difference to the achievement of CSR objectives and also to the goodwill of the company

  1. Feasibility Study and Evaluation of the CSR Project

In Schedule VII, of the Companies Act, activities which may be included in the CSR policies are as follows:

  1. eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water:
  2. promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;
  3. promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups;
  4. ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources and maintaining quality of soil, air and water
  5. protection of national heritage, alt 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:
  6. measures for the benefit of armed forces veterans, war widows and their dependents;
  7. training to promote rural sports, nationally recognized sports, Paralympics sports and Olympic sports;
  8. contribution to the P me Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women;
  9. contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government
  10. rural development projects

Beliefs, vision and ideology of the organization and its promoters will be the guiding factor for selection of CSR activity it wishes to implement along with the demography, geography, economic and social environment it functions in.

Considering the aforementioned factors, we can do evaluation and also conduct a feasibility study of the projects the Company wishes to undertake for implementation of its desired CSR Activity.

  1. Monitoring the CSR Activities
  1. Preparing periodic reports for company review
  2. Ensuring that the budgets are adhered to
  3. Identifying and investigating significant variations in planned and actual expenditure
  1. Bridging the Gap between DPE Guidelines and provisions of Companies Act 2013

CSR spending of Government undertakings and PSU’s was governed by DPE guidelines . However, after the introduction of Section 135 by the Companies Act 2013, the new guidelines stated there in override the DPE guidelines.

In case you are Government organization or PSU, our team can help you in smooth transition in

compliance from DPE guidelines to the ones stated in Companies Act 2013