Draft Format For Calculation of CSR Activities

CSR PROVISION

Section 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 which shall indicate the activities to be undertaken by the company as

specified in Schedule VII;

(b) recommend the amount of expenditure to be incurred on the activities referred

to in clause (a); and

(c) monitor the Corporate Social Responsibility Policy of the company from time

to time.

(4) The Board of every company referred to in sub-section (1) shall,—

(a) after taking into account the recommendations made by the Corporate Social

Responsibility Committee, approve the Corporate Social Responsibility Policy for the

company and disclose contents of such Policy in its report and also place it on the

company's website, if any, in such manner as may be prescribed; and

(b) ensure that the activities as are included in Corporate Social Responsibility

Policy of the company are undertaken by the company.

(5) The Board of every company referred to in sub-section (1), shall ensure that the

company spends, in every financial year, at least two per cent. of the average net profits of

the company made during the three immediately preceding financial years, in pursuance of

its Corporate Social Responsibility Policy:

Provided that the company shall give preference to the local area and areas around it

where it operates, for spending the amount earmarked for Corporate Social Responsibility

activities:

Provided further that if the company fails to spend such amount, the Board shall, in its

report made under clause (o) of sub-section (3) of section 134, specify the reasons for not

spending the amount.

Explanation.—For the purposes of this section “average net profit” shall be calculated

in accordance with the provisions of section 198.

CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY

This Policy is called “Corporate Social Responsibility Policy” (“Policy”) and will be applicable to the Company from 13th February, 2015

SCOPE

The Company in the initial phase will focus on the following areas for CSR projects from amongst the activities specified under Schedule VII of the Companies Act, 2013 (Act): 

 i. Rural development projects, 

ii. Promoting education, including special education and employment enhancing skills especially among children, women and the differently abled and livelihood enhancement projects,

iii. Contributing funds to technology incubators located within academic institutions which are approved by the Central Government.

POLICY 

The Board shall constitute a CSR Committee in accordance with the Act. The Committee shall formulate and submit to the Board the policy for consideration and approval, recommend the CSR activities the Company may undertake in accordance with those listed in Schedule VII of the Act and the likely amount of expenditure associated with the activities. 

The Board shall, with due attention to Section 135 of the Act for selection of any project, environmental impact, cost, timelines, sustainability, and other relevant factors, 

- Consider and approve the policy formulated by the CSR Committee, subject to necessary changes/modifications as the Board may deem fit.  

- Monitor effective utilisation of funds provided by the Company for CSR activities through appropriate checks and balances. 

CSR CALCULATION SHEET

 

Particulars		2015-16	2014-15	2013-14
Total Revenues of the company
Less: Extraordinary Income, if included in total revenue
Profit from premium of shares/Debentures
Profit from sales of Forfeited shares
Profit in terms of capital natures (in terms of undertaking of company or any part of thereof)
Profit from the sale of immovable property/fixed assets/any capital nature
Any surplus change in carrying amount of an assets or liability recognized in equity reserves.
Total Revenue after extraordinary Income
Less: Total Operating expenditure including operating expenses (i.e. Raw material, wages, stock adjustments, selling and admin expenses)
Operating Profit
Less: Interest
Profit before depreciation and tax
Less: depreciation
Profit before tax
Add back if already included in total expenditure
Income tax and any other tax or income
Compensation, damages or other payments made voluntarily
Loss of capital natures including loss on sale of undertaking of company or any part of thereof
Any transfer to assets/liabilities revaluation reserves
Net Profit according to Section 198
Average Profits
CSR Budget ( 2% of average profits)

 DEDUCTION TO BE MADE

 

Sr. No.	Deduction to be Made	2015-16	2014-15	2013-14
1	Usual working charges
2	Directors Remuneration
3	Bonus or Commission
4	Any tax in the Nature of a Tax on abnormal or excess profits
5	Any tax imposed for special reasons
6	Interest on debentures issued by co.
7	Interest on mortgages executed and on loans secured by a charge
8	Revenue expenses on repairs
9	Outgoings inclusive of contributions under section 181 i.e to bonafide charitable and other funds
10	Excess of expenditure over income in previous years computed as per this section
11	Compensations/damages paid in virtue of legal liability
12	Insurance premium
13	Bad debts written off or adjusted

PAT AFTER ALL EXPENSES

 

	Particulars	2015-16	2014-15	2013-14
Net Profit After Tax
Add:	Profit on sale of immovable property (original cost – WDV)
Less:	Premium on sale of forfeited shares, debentures
	Profit on sale of immovable property (sale consideration – original cost )
	Surplus in p/l on measurement of Assets   & Liabilities
Less:	Expenses Allowed
	Usual working charges including
	Ø  Director’s Remuneration
	Ø  Bonus or commission paid to staff
	Ø  Tax on abnormal profits
	Ø Tax on business profits imposed for special reasons
	Ø  Interest on debentures, loans
	Ø  Repair expenses other than capital expenditure
	Ø  Contribution to charitable trusts u/s 181
	Ø  Depreciation
	Ø  Prior Period items
	Ø  Legal liability for compensation
	Ø  Insurance expenses
Add:	Expenses Disallowed
	Ø  Income tax
	Ø  Compensation made voluntarily
	Ø  Capital loss on sale of undertaking (not being losses on sale of assets)
	TOTAL

Thanks & Regards,
CS Meetesh Shiroya