Here are the key methods mentioned in those rules:
Get the full solved assignment PDF of MCO-024 of 2023-24 session now.
- Identification of CSR Activities:
- Companies are required to identify and undertake CSR activities as specified in Schedule VII of the Companies Act, 2013. These activities include eradicating hunger, promoting education, ensuring environmental sustainability, and more.
- Formulation of CSR Policy:
- Companies are required to formulate a CSR policy, including the activities to be undertaken, the budget allocated, and the implementation schedule.
- CSR Committee:
- The company’s board is required to constitute a CSR committee, comprising at least three directors, with at least one being an independent director.
- CSR Expenditure:
- The company must spend at least 2% of its average net profits made during the three immediately preceding financial years on CSR activities.
- Monitoring and Reporting:
- The CSR committee monitors the implementation of CSR activities, and the company discloses its CSR policy, initiatives, and expenditure in its annual report.
- CSR Impact Assessment:
- Companies are encouraged to conduct impact assessments of their CSR projects to evaluate their effectiveness and make improvements if necessary.
- Partnerships and Collaboration:
- Companies may collaborate with other companies, NGOs, government agencies, or international organizations to implement CSR projects more effectively.
- Employee Volunteering:
- Companies may encourage their employees to participate in CSR activities through volunteering or skill-based contributions.
It’s important to note that CSR rules and regulations may be subject to updates and amendments, so it’s advisable to refer to the most recent legislation or seek legal advice to ensure compliance.