TaxTMI 
TaxTMI 
2018 (2) TMI 2134
X X X X Extracts X X X X
X X X X Extracts X X X X
....t 2013, providing for:- "135. Corporate Social Responsibility.-(1) Every company having 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 shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. (2) The Board's report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee. (3) The Corporate Social Responsibility Committee shall,- (a) formulate and recommend to the Board, a Corporate Social Responsibility Policy....
X X X X Extracts X X X X
X X X X Extracts X X X X
....section 134, specify the reasons for not spending the amount." 2. As evident Section 135 of the Companies Act, 2013 provides that every company having specified networth or turnover or net profit during any financial year shall constitute the Corporate Social Responsibility Committee of the Board. The composition of the Committee shall be included in the Board's Report. The Committee shall formulate policy including the activities specified in Schedule VII. The Board shall disclose the content of policy in its report and place on website, if any of the company. The section further provides that the Board shall endeavour to ensure that atleast two per cent of average net profits of the company made during three immediately preceding f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt friendly living conditions, Upgrading existing water sources, Installation of new water sources, Promoting community managed water supply systems, Upgradation of school infrastructure such as quality of building, availability of drinking water, functional sanitation systems, Deepening of wells, installation of handpumps, covering of wells, Installation of solar systems in schools for availability of electricity in schools and included Village Ikloud, Hullpur, Ladpura, Dhulewala and holding Village Level meet, PRA Exercise, Workshop-Village Level/Awarness Meet, Activity specific intervention of common nature benefiting the community, IEC Activities (Rally, Exhibition, Wall Writing etc.), School Sanitation Complex, Provisions for Safe Drin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups; (iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water; (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; (vi) measures for the benefit of armed forces veterans, war widows and their dependents; (vii) training to promote rural sports, natio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....esponsibility Committee and the Board, provisions for audit of the accounts of the company etc., provide sufficient safeguards in this regard and the Central Government has no role to play in monitoring implementation of Corporate Social Responsibility by companies. 9. These contentions made on behalf of the Central Government brooks possibility that the Corporate Social Responsibility if not monitored on the field will only remain on paper rather than being executed in the field. When the grievance raised on behalf of the petitioner is tested on the anvil of the stand of Central Government, we are forced to think that there is substantial force in the contentions on behalf of the petitioner that respondent no.3 has not carried out its s....