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Please give illustrations of certain types of CSR spending apart from CSR spends which are identifiable by the company.

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

Please give illustrations of certain types of CSR spending apart from CSR spends which are easily identifiable by the company.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

The following are examples of expenditures can be classified as CSR expenditure if it is within the areas covered by Schedule VII and is as per CSR policy approved by the Company’s Board of Directors. These are only illustrations and companies are required to apply facts and circumstances in each case for categorization of such spends. a) Any company supplyingits goods or services manufactured/ provided by it free of cost or at a concessional rate to people affected by natural calamities like flood, earthquake etc. b) A company decides that for every pack of pencils sold by the company, Rupee 0.50 will go towards education of a girl child. The amount earmarked from such sale will not be automatically considered as CSRand only such of the amounts which are spent will qualify to be considered as CSR spend c) Environmental Sustainability–Essence of Schedule VII includes ensuring environmental sustainability, ecological balance, protection of flora and fauna, conservation of natural resources, and maintaining the quality of soil, air and water. Companies which help in generation of renewable energy like solar/ wind and water tend to save natural resources like hydro carbon/ fossil fuel aiding ecological balance which is one of the areas covered by Schedule VII. Cost of setting up renewable energy for captive consumption and/ or the cost of procuring renewable energy which leads to conservation of fossil fuels / hydro carbonsshould be considered as CSR provided thatsuch spends are for renewable energy consuming companies and not for companies whoare in the business of production or distribution of such renewable energy for sale in the ordinary course oftheir business. d) Spending in Technical and Vocational Training for skill building based on training cum apprenticeship results in enhancing the employability of such trainees. Cost of such expenses such as stipend, faculty, infrastructure costs etc will be included as CSR activities. It will not deprive the company which is providing such training to hire a trainee from that pool of talent. .However, if such a training is provided to existing employees then it shall not qualify as CSR.

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