Journey of CSR Schedule in 2014


This is being said in corporate sector, the companies Act 2013 is being treated by government and corporate as CSR law. The schedule related to corporate social responsibility has been amended since its being come into force.

Original CSR Schedule read as under:

SCHEDULE VII

(See sections 135)

Activities which may be included by companies in their Corporate Social Responsibility Policies

Activities relating to:—

(i) eradicating extreme hunger and poverty;

(ii) promotion of education;

(iii) promoting gender equality and empowering women;

(iv) reducing child mortality and improving maternal health;

(v) combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases;

(vi) ensuring environmental sustainability;

(vii) employment enhancing vocational skills;

(viii) social business projects;

(ix) contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; and

(x) such other matters as may be prescribed.

Interestingly, this original CSR Schedule never came into force. This schedule may be in books only for academic interest and record.

Government amended this schedule on 27th February 2014 with substituting entire items and entries with following:

“(i) eradicating hunger, poverty and malnutrition, promoting (health care Including) preventive health care and sanitation and making available safe drinking water;

(ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently-abled and livelihood enhancement projects;

(iii) promoting gender equality, empowering women, 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;

(iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water;

(v) 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;

(vi) measures for the benefit of armed forces veterans, war widows and their dependents;

(vii) training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;

(viii) contribution to the Prime 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 Castes, the Scheduled Tribes, other backward classes, minorities and women;

(ix) contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;

(x) rural development projects.”

This amendment schedule was proposed to come into force as original with effect from 1st April 2014. However, a corrigenda was issued on 31st March 2014 to modify entry its first entry to include promoting health care including preventive health care as earlier there was only promoting preventive health care was mentioned. Even though, I am not sure of any legal consequences but schedule mention two words “health care” instead of single word “healthcare”.

Thereafter, another notification inserted another item and entry to this schedule with effect from 7th August 2014:

“(xi) slum area development.

Explanation.— For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.”

Yet another amendments came into effect with effect from 24th October 2014 namely;

“(i) In item (i), after the words “and sanitation”, the words “including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation” shall be inserted;

(ii) In item (iv), after the words “and water”, the words “including contribution to the Clean Ganga Fund setup by the Central Government for rejuvenation of river Ganga;” shall be inserted.”

Finally as on date, This Schedule VII read as under:

SCHEDULE VII

(See sections 135)

Activities which may be included by companies in their Corporate Social Responsibility Policies

Activities relating to:—

(i) eradicating hunger, poverty and malnutrition, promoting health care Including preventive health care and sanitation including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water;

(ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects;

(iii) promoting gender equality, empowering women, 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;

(iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water including contribution to the Clean Ganga Fund setup by the Central Government for rejuvenation of river Ganga;

(v) 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;

(vi) measures for the benefit of armed forces veterans, war widows and their dependents;

(vii) training to promote rural sports, nationally recognised sports, paralympic sports and Olympic sports;

(viii) contribution to the Prime 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 Castes, the Scheduled Tribes, other backward classes, minorities and women;

(ix) contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government;

(x) rural development projects,

(xi) slum area development.

Explanation.— For the purposes of this item, the term ‘slum area’ shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.

I will suggest continue updation of CSR Policies by companies to be in line of Schedule VII of the Companies Act, 2013.

One should read this schedule with three circulars General Circular 21/2014 dated 18th June 2014, 36/2014 dated 17th September 2014 and 01/2015 dated 3rd February 2015. We will discuss these general circulars in next post.

Please note: I welcome your comments and feedback. This blog post is not a professional advice. Readers may share this post on social media by using buttons given here.

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6 responses to “Journey of CSR Schedule in 2014

  1. Pingback: Index of Companies Law Posts | AishMGhrana

  2. Pingback: General Circulars on CSR | AishMGhrana

  3. Can you please throw some light on this – the Act says that preference needs to be given in the local areas, where the Co operates. If suppose, the Co plans to contribute to a hospital which is outside the area of co’s operation, say in a total different state. In that case, will there be any non compliance of the prov of CSR Rules? The Co is ready to give strong reasons for contributing in a different state & not donating in its area of operation in its CSR Report. Also contribution to different state has been approved both by Board & by CSR Committtee

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    • “Preference” is just suggestive and wrong word in eye of legal interpretation. But this is in law.
      Now, while framing CSR Policy and reporting compliance to members, company may justify its position. Even if it is not justify, no issue in eye of law but from “Babulog”.

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  4. I think lot of new activities have been included like contribution to Swach Bharat and Save Ganga project. If so, please up dated any other activities so far being included.

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    • Thank you for suggestion.
      I have already mentioned these activity where they appear in Schedule, Clause (i) and Clause (iv) of the Schedule.
      They are not new activities but just a “political clarification” in respective clauses.

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