CSR Initiative Through NCF

Corporate Social Responsibility (CSR) is an essential ingredient of corporate governance. CSR is fundamentally a philosophy or a vision about the relationship of business and Society.

The main objective of CSR policy is to lay down guidelines for the company to make CSR a key business process for sustainable development for the society and environment with a balanced emphasis on all aspects of CSR and Sustainability-equally with regard to its internal operations, activities and processes as well as in their response to external entities.

The CSR policy has been framed in accordance with the provisions of the Companies Act,2013 and its main features are:

  • Applicability: New provision of the Companies Act,2013 on CSR applicability encompasses the companies having net worth of Rs. 500 cr. Or more; Or turnover of Rs. 1000 cr. Or more; Or a net profit of Rs. 5 cr. Or more during any financial year.
  • Inclusion of Activities in CSR Programme/Project: As per new provisions activities covered by schedule VII of Companies Act,2013 will be included in CSR programme/project of the company.
  • CSR Expenditure: Minimum 2% of the average net profits (i.e., Profit before tax as calculated under the provisions of Section 198 of the Companies Act,2013) as of the company during the three immediately preceding financial years.

National Culture Fund is a government managed financing mechanism for private and public enterprises to contribute towards Protection , Restoration, Conservation and Development of India’s rich, natural tangible and intangible culture & heritage. The contribution to the NCF is 100% tax exempt and its accounts are audited by the CAG. NCF ,formed as a Trust in 1996 under the Charitable Endowment Act, 1980, it is administered by the Ministry of Culture , Government of India.

NCF’s activities are covered under Schedule VII No.(v) of the Companies Act,2013 as valid receptacle of Corporate Social Responsibility(CSR) contribution under:-

“(v) Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional arts and handicrafts.”

x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x