Back to overview

The Companies Act (Section 135 CSR)

India Current 2013

Provisions made in this act, establish the controversial 2 percent CSR spending for companies with a certain net worth.

Issuer name

Ministry of Corporate Affairs (MCA)

Government ministry

Business/Trade/Industry

More information

Section 135 ( Guidelines on Corporate Social Responsibility and Sustainability For Central Public Sector Enterprises) of the act deals with the subject of CSR. It lays down the qualifying criteria based on net worth, turnover, and net profit for companies which are required to undertake CSR activities and, interalia, specifies the broad modalities of selection, implementation and monitoring of the CSR activities by the Boards of Directors of companies. Qualifying companies must spend 2% of their revenue on CSR, under the principle of comply or explain. The activities which may be included by companies in their CSR policies are listed in Schedule VII of the Act. The provisions of Section 135 of the Act and Schedule VII of the Act apply to all companies, including CPSEs.

Organizations covered by the instrument

All Companies

Industry scope

All/none specified

Disclosure venue

CSR activities

Status

Current

Country

India

Region

Asia Pacific

Date of publication

2013

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Go to the instrument