ROC CSR Committee
What is CSR?
The CSR Committee shall formulate and recommend a CSR policy to the Board. … CSR Committee shall monitor the CSR policy of the Company from time to time. The committee shall establish the transparent controlling mechanism for the implementation of the CSR projects or programs or activities undertaken by the company.
Who’ll come under CSR?
- Every company
- Its holding company
- It’s subsidiary company
- Foreign company
- Having in the preceding financial year:
- Net worth > 500 crore
- Turnover > 1000 crore
- Net profit > 5 crore
When has to report?
- The Board’s Report referring to any financial year initiating on or after the 1st day of April 2014 shall include an annual report on CSR.
- In the case of a foreign company, the balance sheet filed shall contain an Annexure regarding a report on CSR.
Importance of Corporate Social Responsibility
- CSR is an immense term that is used to explain the efforts of a company in order to improve society in any other way.
- CSR improves the public image by publicizing the efforts towards a better society and increase their chance of becoming favourable in the eyes of consumers.
- CSR increases media coverage as media visibility throws a positive light on the organisation.
- CSR enhances the company’s brand value by building a socially strong relationship with customers.
- CSR helps companies to stand out from the competition when companies are involved in any kind of community.
Few Role of Board of Directors
- 3After considering the recommendations made by the CSR Committee, approve the CSR policy for the Company.
- The Board must ensure only those activities must be undertaken which are mentioned in the policy.
- The Board of Directors shall make sure that the company spends in every financial year, minimum of 2% of the average net profits made during the 3 immediately preceding financial years as per CSR policy.
- In case a company has not completed 3 financial years since its incorporation, the average net profits shall be calculated for the financial years since its incorporation.