Measures for the benefit of armed forces veterans, war widows and their dependents Training to promote rural sports, nationally recognized sports, Paralympic sports and Olympic sports Contribution to Prime Minister’s National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the SC/ST, other backward classes, minorities and women. Approved activities for CSR

Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government Rural development projects Contribution to any political party (directly/ indirectly) will not be considered as a CSR activity Approved activities for CSR

Disclosure The company shall disclose contents of the CSR policy, overview of projects undertaken with particular emphasis on local area development, in the web-site if any, and compulsorily in the annual report. The company shall also disclose any amount due and unspent and the reasons for the same in its Board report.

Non - Compliance Failure to constitute CSR committee - an offence Failure to spend 2% not an offence – has to be reported with reasons Unspent money carried forward.

Exit CSR Once in – no escape for 3 years ! Company not satisfying criteria for 3 consecutive financial years goes out of 135 purview. Meaning unless you miss the mile stones for 3 years in a row you are mandated.

CRITICS say Government shifting their obligation to private parties. It is like another tax These acts have to be voluntary and not forced upon. However some feel it is a timely reminder to give back some thing to the society.

Trouble Spots Companies can spend their CSR funds by themselves or through a registered trust / society / Sec 8 company established by itself or its holding or subsidiary or associate company. NO TRACK RECORD NEEDED. Third Party Trusts / Society / Sec 8 company has to have 3 years experience in similar activity. Funds transferred to trusts but not spend ? No questions !

Trouble Spots Environment Protection – includes solar power generation as it reduces carbon emissions and aides environment protection. Company can set up a solar power plant for captive consumption or for sale. Feeding your own self and family and call it ANNA DANAM ? ( FREE FOOD DISTRIBUTION ) Can not supply to employee quarters free or at subsidized price. Solar companies expanding capacities – NOT considered : Business as Usual

Adani Enterprises 5.28% Jindal Steel and power 5.26% Adani power 4.89% Reliance Power 3.75% National Aluminium Company 3.40% Ambuja Cements 3.22% Tata Motors 1.09% Partners in change ( Good guys don’t need laws Source: Indian Companies in CSR activity voluntarily

At the end of the day,it is all about how responsible we all feel about our planet, our country, our stakeholders, our community of well wishers and ourselves. Which brings us to the ancient Indian way of doing business, YOU WIN, I WIN, as opposed to the 20 th century paradigm of I WIN, YOU LOSE. HUMAN SOCIAL RESPONSIBILTY

Emptying the ocean with a spoon Prof Wayne Dunn, a Professor of Practice in CSR with more than 30 years experience in CSR in McGill University, Canada says “CSR is a complex, evolving and exciting area that is finding new ways to create and distribute value. The language and frameworks are evolving rapidly and helping executives, professionals, and academics with practice and understanding. We are all learning and none of us is an “expert”.

Thank You B.V.S.Prakash CEO, Nhance CSR, a Division of Nhance India Solutions