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CS Professional · CSR and Social Governance · Corporate Social Responsibility

Bharat Auto Ltd's CSR Policy lists only activities falling within Schedule VII. The Board wants to add a project that is not in Schedule VII, such as sponsoring a private corporate sales conference, and count it toward the 2% obligation. What is the correct position?

It cannot be counted. Under section 135(3)(a) the CSR Policy must indicate activities in areas or subjects specified in Schedule VII. A private sales conference is not such an activity, and committee approval, small amount or local setting cannot make it eligible.

  1. AIt can be counted if the CSR Committee recommends it
  2. BIt cannot be counted, because the Policy must indicate activities in areas or subjects specified in Schedule VIICorrect
  3. CIt can be counted if the amount is below fifty lakh rupees
  4. DIt can be counted if the project is in the local area

Explanation

Section 135(3)(a) requires the CSR Committee to recommend a Policy indicating activities in areas or subjects specified in Schedule VII. The Board must ensure the Policy activities are undertaken. A sales conference is outside Schedule VII, and neither committee recommendation, small size nor local area changes that.

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