The Rights of the Deceased: Moral Rights Incidental to Copyright Law
- Vanshika Agrawal
- 2024-04-25
Contents hide
1.3 Definition of the term CSR:
4 Whether contribution by corporates to PM Relief fund a CSR activity.
4.1 Alleviation of corporate patrons
CSR And Pm Care Fund -India’s new Companies Act 2013 (Companies Act) has presented a few new provisions which change the substance of Indian corporate business” (Companies Act) has presented a few new provisions which change the essence of Indian corporate business. One such new provision is Corporate Social Responsibility (CSR). The idea of CSR lays on the philosophy of compromise. Organizations take assets such as crude materials, Human Resources, and so forth from the general public. By playing out the errand of CSR exercises, the organizations and companies are giving something back to the general public. Ministry of Corporate Affairs has lately notified Section 135 and Schedule VII of the Companies Act as well as the provisions of the Companies (Corporate Social Responsibility Policy) Rules, 2014 which started from 1 April 2014.
S.135 of the Companies Act affords the threshold limit for applicability of the CSR to a Company i.e.
(a) net worth of the company to be₹ 500 cr or more;
(b) turnover of the company to be₹1000 cr or more;
(c) net profit of the company to be₹5 crore more.
Further, as per the CSR Rules, the provisions of CSR are not only pertinent to Indian companies but also applicable to branch and project offices of a foreign company in India.
All qualifying organizations or company needs spending of at least 2% of its average net profit for the directly preceding 3 financial years on CSR activities. Further, the qualifying company will make it mandatory to constitute a committee (CSR Committee) of the Board of Directors(BoD) consisting of 3 or more directors. The CSR Committee shall express and recommend to the Board, a policy which shall designate and show the actions to be undertaken (CSR Policy); recommend the amount of expenditure to be sustained on the activities mentioned and monitor the CSR Policy of the company. The Board shall take into account the approvals made by the CSR Committee and approve the CSR Policy of the company and organization.
The term CSR is defined under the CSR Rules which comprises but is not limited to:
This explanation of CSR undertakes the significance as it permits companies to engage in projects or programs relating to undertakings enlisted under the Schedule. Flexibility is also allowed to the companies by permitting them to choose their ideal CSR engagements that are in conventionality with the CSR policy.
The activities or the work that can be done through CSR by the company or organization. Is to achieve its CSR responsibilities-comprises eliminating extreme hunger, eradicating poverty, promoting education. Encouraging and promoting gender equality and empowering women, decreasing child mortality and cultivating maternal health, combating human immunodeficiency virus. Acquired, immune deficiency syndrome, malaria, and other diseases, guaranteeing environmental sustainability, enhancement of employment, promote vocational skills, social occupational projects, support aid and contribute to the Prime Minister’s National Relief Fund or any other fund organized by the Central or the State Governments for socio-economic improvement well-fare, development, and relief and funds for the welfare and well-being of the Scheduled Castes (SC), the Scheduled Tribes (ST), other backward classes (OBC), minorities and women and several other causes that may be recommended or suggested.
In the Companies Act, inclined preference should be assured to local areas and the place where the company operates. The company may also select to associate with 2 or more businesses for fulfilling the CSR activities if that they are able to report separately. The CSR Committee is going to also prepare the CSR Policy which comprises the projects and programs which has undertaken, prepare a list of projects and programs which a business plans to undertake during the time of implementation year, and also focus on assimilating business models with social and environmental urgencies and process in order to generate shared value.
The company can also make the yearly report of CSR accomplishments in which they mention the usual net profit for the 3 financial years and also prescribes CSR expenditure but if the company is unable to spend the minimum requires expenditure the company has to give the reasons in the Board Report for non-compliance so that there are no penal provisions are attracted by it.
The Differences between PM CARES Fund and PMNRF[2]?
A National Relief Fund for managing natural disasters or cataclysmic events in India set up in 1948 at the hour of independence. In spite of the past foundation another moreover store that is PM Care Fund has set up by the present NDA government. The main aim of PMNRF was to provide assistance to the displaced people of Pakistan during the partition of the country. Currently, the funds collect together in this pool used to deliver immediate and rapid relief to the families of those dead in earthquakes, cyclones, floods, tsunamis, or any other natural disasters and to victims of main accidents and communal riots.
This fund also utilizes medical treatment like kidney transplants, heart surgery, acid attack, and cancer management and treatment of needy people. The finest feature of this fund is that it is audit annually. The yearly audit gives an unblemished. Clear picture of the funds and the financial state to every citizen of the country.
The PM Cares Fund established by the present Prime Minister Shri Narendra Modi on 27 March 2020. The prime aim was to arrange finance to deal with the COVID-19 pandemic in India. The full form of the PM Cares fund is “The Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund.”
Since its establishment, the PM cares fund is disapproving and criticize for not having any auditor of the fund. But because of the political pressure, the central government has appointed an auditor for the same.
The Ministry of Corporate Affairs has at long last advised that aids and contributions make by organizations and companies. To the Prime Ministers Citizens Assistance and Relief in Emergency Situations Fund (PM-CARES Fund). Will be considered as use on corporate social obligation. It was notified late on May 26 by the ministry. It advised that it has revised Schedule VII of the Companies Act, 2013. By including commitments of contribution to PM-CARES Fund. As substantially valid CSR action alongside the previous inclusion of Prime Minister’s National Relief Fund. In the Companies Act, certain classes of profitable bodies have to shell out a minimum of 2%. Of their three-year yearly average net profit to corporate Social Responsibility (CSR) activities in a specific financial year.
In any case, to the alleviation of corporate patrons, the notice explains that changes will consider. Having come into power on March 28, 2020. To consider all the corporate contributions to PM-CARES Fund. Made in the most recent two months to qualify as CSR spend.
Finance Minister Nirmala Sitharaman had tweeted on March 29 that CSR Funds can now donate to PM CARES Fund. A ministry of corporate affairs circular issued. Then also said the same suggesting that the Fund has set up to provide relief. To those affect by any kind of emergency or distress situation. But, a formal notification of the proposal never came in March.[3]
An undeniable high-level council of the committee established by the Ministry of Finance. Not long after the 2013 Act came into power to survey. The current CSR system contained in an enactment, rules outlined thereunder, and handouts gave by the service. The council, in unambiguous terms, expressed in its 2015 report that organizations could entice to coordinate. A considerable piece of their CSR spending plan to the Prime Minister’s National Relief Fund (PMNRF). To profit from the twofold advantage of assessment. Exception accommodated under the Income Tax Act, 1961. And the simplicity of satisfying CSR consistence deprived of nitty-gritty approach and reviews.[4]
[1]MansukhlalHiralal& Company, Corporate Social Responsibility – Indian Companies Act 2013, Mondaq connecting knowledge and people. (Date Accessed February 7 2021 at 10.45 pm)
[2]Hemant Singh,What are the Differences between PM CARES Fund and PMNRF?(Date Accessed February 7 2021 at 10.45 pm)https://www.jagranjosh.com/general-knowledge/difference-between-pm-cares-fund-and-pmnrf-1593406787-1
[3]Donations by companies to PM-CARES Fund notified as CSR, says govt, (Date Accessed February 7 2021 at 10pm), https://www.business-standard.com/article/companies/donations-by-companies-to-pm-cares-fund-notified-as-csr-says-govt-120052701146_1.html
[4]When Government Committee Said ‘No CSR’ for PM Relief Funds, Why the Sop for PM CARES? (Date Accessed February 7 2021 at 10.30 pm)https://thewire.in/government/pm-cares-corporate-social-responsibility
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