How do I register company/CSR Foundation/Trust on truCSR?

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Registration process can be completed online on the website www.trucsr.in. For further details you may contact truCSR on info@trucsr.in.

What are the documents required to register as a Contributor?

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1. Reg. Certificate / CIN

2. PAN Card

3. GSTN Certificate (if applicable)

4. MoA / By-Laws / Trust Deed (if applicable)

5. Audited financial statement of last three years or since incorporation, whichever is earlier.

What is the process after my profile gets approved?

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After your profile is approved, truCSR team will send you an update about annual registration fees for the platform. You will have to make payment towards truCSR by online mode, to get your account activated for accessing various features on truCSR portal (ref. Point 6 under General for functions).

How much is the registration fee for Corporate and NGOs/NPOs as Contributor?

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Rupees Seven Thousand Five Hundred Only - INR 7500/- (inclusive of GST) and is valid for a period of one year.

Will I get an invoice?

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Yes, truCSR team will be providing invoice for the fees charged.

What are the features and functions accessible after payment of registration fee?

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After registering on the platform, your membership with truCSR will be valid for a period of one year. You will get access to browse various projects and programmes showcased on the platform by various NGOs/ NPOs. (ref. Point 6 under General for functions). Additionally, you may post “Request for Proposals (RFP) on the truCSR platform. For more services and demo contact - info@ trucsr.in

What are the steps after paying the registration fee?

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Once you have paid fees and the profile is verified, you will get access to all the features on the portal meant for the Contributors.

What is special about the Companies Act, 2013?

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CSR has now assumed importance in India with the new Companies Act, 2013, which regards it as one of the core operations of a business, and not simply a philanthropic activity. The new provisions have come into effect from 1April, 2014 through the notification by the Ministry of Corporate Affairs under Section 135 and Schedule VII of the Companies Act and the provisions of the Companies (Corporate SociaI Responsibility Policy) Rules, 2014. In the earlier Companies Act, companies could voluntarily contribute upto 5% of their profits towards CSR. In the new Act of 2013, it is mandatory for companies to contribute 2% of the profits for CSR.

Which companies have to implement CSR?

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With effect from April 11, 2014, it is mandatory for the following private or public limited companies to spend at least 2% of their average net profit for the immediately preceding three financial years on CSR activities:

• Companies with a net worth of Rs 500 crore; or

• Turnover of Rs. 1,000 crores; or

• Net profit of Rs. 5 crores.

The net worth, turnover and net profits should be computed as per Section 198 of the 2013 Act according to the profit and loss statement prepared by the company in terms of Section 381(1)(a) and Section198 of the 2013 Act.

Would SMEs (small and medium enterprises) also have to implement CSR?

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The CSR clause in the Companies Act, 2013 includes all companies that have a net profit of Rs. 5 crore or more. Thus, it is expected that several small and medium enterprises (SMEs) will also come under the ambit of the new CSR criteria.

What activities can be undertaken by a company to fulfill its CSR obligations?

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The activities that can be done as CSR are mentioned in Schedule VII of the Companies Act, 2013. These are:

• Eradicating hunger, poverty and malnutrition.

• Promoting health care and sanitation and making available safe drinking water.

• Promotion of education, livelihood enhancement projects and employment enhancing vocational skills.

• Promoting gender equality, empowering women, setting up homes and hostels for women, and orphans, setting up old age homes, day-care centers and other facilities for senior citizens.

• Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry and conservation of natural resources.

• Contribution to the Prime Minister’s National Relief Fund, Clean Ganga Fund, or any other fund set up by the Central Government or the State Governments for socio-economic development and relief and welfare of the scheduled caste, tribes, other backward classes, minorities and women

• Contribution to incubators funded by Central Government or State Government

• Rural development projects

• Slum area development

• Disaster management, including relief, rehabilitation and reconstruction activities.

• Amount spent for various activities related to COVID-19

How can SMEs and companies with small CSR funds contribute meaningfully when their CSR budgets would be rather small?

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Although SMEs usually have only a small quantum of revenue for CSR activities, if several eligible companies pool in their resources, they can create a sizable CSR fund. Collaborative efforts by SMEs are likely to maximize the impact of CSR initiatives while also reducing the operational costs of implementing the activities.

Can donations to a trust or a society by a company be treated as a '-CSR activity?

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Such contributions can be treated as CSR if:

• the Trust/Society/Section 8 company etc. has been exclusively formed for undertaking CSR activities

• the corpus has been exclusively created for the purpose directly related to the subject covered in Schedule VII of the Companies Act,2013.

. Do programmes and activities exclusively for the benefit of employees and their families qualify as CSR?

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No.

How will the company choose the geographical area for its CSR activities?

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The Companies Act, 2013 mandates that a company should give preference to the local area and the areas around where it operates for its CSR activities. In case the company operates in multiple locations, it can exercise discretion in choosing the area in which it wishes to implement its CSR activities.

What are the methods by which a company can implement its CSR activities?

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The draft rules of September 2013 of the Companies Act, 2013 prescribe the following methods to a company for implementing its CSR projects:

• Direct implementation by the company

• Through the company’s own non-profit foundation that has been set up to facilitate its CSR initiative

• Through independently registered non-profit organisations that have a record of at least three years in similar/related projects

• Collaborating or pooling their resources with other companies

Does the company have to follow any prescribed guidelines while developing its CSR programme?

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Clause 135 of the Companies Act, 2013 lays down the guidelines to be followed by the company in developing the CSR programme. According to these guidelines, CSR activities require the involvement of the company’s board and its CSR committee.

What is the role of the board and the CSR committee in a company with regard to CSR activities?

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The role of the board is to:

• Form a CSR committee

• Approve the CSR policy recommended by the CSR committee

• Ensure activities under CSR are implemented

• Ensure 2% of average net profit is spent towards CSR

• Disclose reasons for not spending 2% if company has not been able to comply

The features of the CSR committee are:

• Comprise three or more directors with at least one independent director

• Formulate and recommend a CSR policy to the board

• Prepare a detailed plan on CSR activities, including the expenditure, type of activities, and roles and responsibilities of various stakeholders

• Develop a monitoring mechanism for the CSR activities

However, CSR Rules exempt unlisted public companies and private companies from having an independent director as a part of their CSR Committee and stipulate that the Committee for a private company and a foreign company need have a minimum of only two members.

If the company has appointed personnel exclusively for its CSR activities, can the expenditure incurred towards their staff cost, etc. be considered as part of its CSR obligations?

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Up to 5% of the CSR budget can be used towards administrative costs for implementing CSR activities.

Is the company obliged to disclose its expenditure towards CSR activities?

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The company would need to include an annual report of the CSR activities of the company in the report published by its Board of Directors. If the company has a website, the CSR policy of the company also needs to be disclosed on this website.

What happens if a company cannot fulfill its CSR obligations?

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If a company has been unable to spend the minimum required toward its CSR initiatives, the reasons for not doing so are to be specified in the Board Report.