Hi,
We’ve been approached by a company that wants to partner with us, but they’ve never done CSR before. What kind of info should we provide to help them understand their obligations and to ensure the partnership is compliant from their end?
The company may refer to Section 135 and Schedule VII of Companies Act 2013 and the Companies (CSR Policy) Rules 2014 as amended from time to time and more importantly as amended in Jan 2021.
The company needs to ascertain its obligation under CSR, constitute CSR committee, formulate CSR Policy etc as some initial things to do. The obligation under CSR as per Section 135 is when the turnover is more than Rs.1000 cr or net worth is more than 500 cr or net profit is more than Rs. 5 cr.
CS Sharad Bhargava