The Ministry of Corporate Affairs, Government of India has recently notified the Section 135 of the Companies Act, 2013 along with Companies (Corporate Social Responsibility Policy) Rules, 2014 "hereinafter CSR Rules" and other notifications related thereto which makes it mandatory (with effect from 1st April, 2014) for certain companies who fulfill the criteria as mentioned under Sub Section 1 of Section 135 to comply with the provisions relevant to Corporate Social Responsibility.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
"Corporate Social Responsibility (CSR)" can be defined as a Company's sense of responsibility towards the community and environment in which it operates. Bharat IT Services Limited (BITSL)is a socially responsible company that does not limit itself to using resources to engage in activities that increase only their profits. BITSL believes that CSR involves incurring expenses that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change.
- Net worth of rupees five hundred crore or more, or
- Turnover of rupees one thousand crore or more or
- A net profit of rupees five crore or more during any financial year
ROLE OF CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Committee shall-
- Formulate and recommend to the Board, a Corporate Social Responsibility Policy;
- Recommend the amount of expenditure to be incurred on the activitiesand
- Monitor the Corporate Social Responsibility Policy of the company from time to time.
The total budget for the CSR projects will be decided by the CSR Committee, which in any case shall not exceed two percent of the average net profits of the company made during the three immediately preceding financial years,
ACTIVITIES TO BE UNDERTAKEN
The Company can undertake Activities relating to:—
- Eradicating extreme hunger and poverty;
- Promotion of education;
- Promoting gender equality and empowering women;
- Reducing child mortality and improving maternal health;
- Combating human immunodeficiency virus, acquired immune deficiency syndrome, malaria and other diseases;
- Ensuring environmental sustainability;
- Employment enhancing vocational skills;
- Social business projects;
- 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
- Such other matters as may be prescribed by Government from time to time.