Disclaimer

The content herein is published for information and research only and does not have regard to the particular needs of any specific person. Although the information contained herein has been taken from sources that are believed to be accurate, no warranty or representation is made as to its correctness, completeness or accuracy by Legasis. Legasis accepts no liability whatsoever for any direct, indirect or consequential loss arising from or in connection with any use or reliance of this data which does not have any regard to the particular needs of any person. Links to other websites are provided for information and convenience only. We cannot accept responsibility for the sites linked to, or the information found there. Please note that the linked websites may deal with privacy differently, and Legasis accepts no responsibility or liability for the privacy practices, or the content of any linked site, readers are requested not to reproduce this in whole or in part.

Privacy Statement and consent to use personal data

Our Company collects your data so that we can:
• Process your order and manage your account.
• Email you with special offers on other products and services we think you might like.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. When you visit our websites, we may collect information from you automatically through cookies or similar technology. You can however choose to accept or refuse the cookies by changing the settings of your browser. You can reset your browser to refuse all cookies or allow your browser to show you when a cookie is being sent. If you choose not to accept these cookies, your experience at our Site and other Web Sites may be diminished and some features may not work as intended.

The right to access – You have the right to request us for copies of your personal data. We may charge you a small fee for this service.
The right to rectification – You have the right to request that we correct any information you believe is inaccurate. You also have the right to request us to complete the information you believe is incomplete.
The right to erasure – You have the right to request that we erase your personal data, under certain conditions.
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The right to data portability – You have the right to request that we transfer the data that we have collected to another organization, or directly to you, under certain conditions.
If you make a request, we have one month to respond to you. If you would like to exercise any of these rights, please contact us at our email support@legasis.in.


Our privacy policy applies only to our website, so if you click on a link to another website, you should read their privacy policy.

The personal information you provide to us while using the portal, such as your name, address, e-mail address or telephone number will be kept confidential and used to support your relationship with Legasis, to notify you of any updated information and new products and services from Legasis. If you agree, Our Company will share your data with our partner companies so that they may offer you their products and services. Circumstances may arise where we may be required to disclose your personal information to third parties for purposes other than to support your relationship with us such as in connection with a corporate divestiture or dissolution where we sell all or a portion of our business or assets (including our associated client lists containing your personal information), or if disclosure is required by law or is pertinent to judicial or governmental investigations or proceedings.

You may always opt out from receiving communications from us by sending us an email at support @legasis.in. Legasis reserves the right to revise, amend or modify this policy at any time and in any manner it pleases. Any change or revision will be posted here. If you would like to contact us for any reason regarding our privacy practices, Please e-mail us at support@legasis.in.

Frequently Asked Questions on Corporate Social Responsibility

1. What is Corporate Social Responsibility?

The activities that the company has to undertake to fulfil its statutory obligations under Section 135 of the Companies Act, 2013.

2. What is the nature of activities that the company may undertake under its CSR policies to fulfil its CSR obligations?

Activities such as - higher education, poverty eradication, countering malnutrition, promoting healthcare, sanitation, vocational skills,women and children upliftment, women empowerment, old age homes, backward groups of the society alleviation, art and culture promotion, environmental measures for conservation and improvement, research and development in engineering, science and technology etc.

3. What is the amount mandatory amount to be spent on Corporate Social Responsibility by companies?

Companies have to spend 2% of the average net profits earned by it in the preceding three financial years. If the company has not completed three financial years since incorporation then the company has to spend 2% of the average net profit earned by it in the preceding financial year.

4. Can the equivalent amount of Net Profits be spent by the company in kind?

No, the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014 nowhere allow the spending of Net Profits in equivalent kind to meet the CSR obligations.

5. What is the net profit for the purpose of CSR expenditure?

The mandatory CSR spending entails 2% of the average net profits made by the company. Whilst computing net profits for CSR purposes, the profit made by the company from overseas branches and dividends received by it from other Indian companies will not be included.

6. Will the net profit mean profit before tax or profit after tax?

The net profits for CSR shall be the net profits made by the company before deduction of tax.

7. Can the CSR expense be treated as business expense?

The CSR spending cannot be treated as a business expense, for it is not for business or professional purposes.

8. What if the company does not spend the mandated amount?

The board of the company in such cases has to specify reasons for not spending and then transfer the unspent amount to a fund in Schedule VII of the Companies Act, 2013 within 6 months of the expiry of the financial year.

9. What if the reason for not spending the mandated CSR amount is because the company has undertaken a CSR project of its own to fulfil its social responsibility?

In such cases, where the company that has not allocated a set amount for CSR expenditure and instead has undertaken a project to fulfil its CSR policies, the company shall have to transfer such unspent amounts for that financial year to a special account opened by the company in a Scheduled Bank and the amount so transferred in this Unspent Corporate Social Responsibility Account shall be spent by the company in pursuance of its CSR policies over the course of three financial years from the date of transfer.

10. Is there any relaxation to companies carrying out research and development of new vaccines, drugs and medical devices to counter COVID-19 pandemic?

Companies that are undertaking such activities as a normal course of their business will be exempted from extra CSR obligations for such of their activities will be treated as a discharge of their Corporate Social Responsibility for the years 2020-2021, 2021-2022, 2022-2023 given that such research and development activities undertaken by the company are in collaboration with entities mentioned in item ix of Schedule VII of the Companies, Act 2013. Also, such companies shave to meet another condition that details of their activities are to be separately disclosed in the annual report on CSR activities annexed in the Board Report.

11. What if the company fails to create the aforementioned Unspent Corporate Social Responsibility Account?

The company will then have to transfer the unspent amounts to any of the funds mentioned in Schedule VII of the Companies Act, 2013.

12. What types of funds are mentioned in Schedule VII of the Companies Act, 2013?

Schedule VII consist of funds such as - Swach Bharat Kosh, Clean Ganga Fund, Prime Minister Citizen Assistance Relief in Emergency Situations (PM CARES) Fund, Central or State Fund set up for socio-economic purposes etc.

13. What if the company fails to comply with any of these CSR provisions?

It shall be construed as contravention of the law and thus the company will attract punishments not less than 50000 rupees extendable upto 25 lakh rupees and every officer in the company that defaults may be punished with imprisonment for a period upto 3 years or a fine not less than 50000 rupees and upto 5 lakh rupees.

14. Will contributions to political party qualify as a discharge of the company’s corporate social responsibility?

No, any contributions made by the company to political parties will not qualify as a discharge of their corporate social responsibility. Contributions are governed under a separate Section 182 of the Companies Act, 2013.

15. Will activities that benefit the employees of the company qualify as a CSR activity on the part of the company?

The Companies (Corporate Social Responsibility Policy) Rules, 2014 make it clear that such activities undertaken and contributions made by the company for its employees’ benefit will not qualify as a discharge of its mandatory corporate social responsibility.

16. Are there any other kind of activities that will not qualify as a CSR activity?

It is imperative to keep in mind that the Companies (Corporate Social Responsibility Policy) Rules, 2014 states that companies sponsoring activities for marketing benefit to its products and services will not qualify as a discharge of its Corporate Social Responsibility.

17. What is the difference between CSR Activities and CSR Policies?

By CSR Activities, it means the nature of activities (mentioned in Schedule VII of the Companies Act, 2013) that the company can engage in to fulfil its Corporate Social Responsibility whereas CSR Policies are statements made by the company’s board towards the approach and direction that the company will take to fulfil its CSR obligations. The CSR Policies are a blueprint of the activities that the company will engage and execute.

18. What are the means by which a company can undertake CSR activities?

The company may either undertake the activities itself by carrying out projects to implement its CSR policies or through section 8 companies, registered trusts, registered societies and statutory entities.

19. Can any surplus from CSR activities be treated as a profit?

No, the Companies (Corporate Social Responsibility Policy) Rules, 2014 clearly states that any surplus made by the company in such CSR activities is to be ploughed back into the project or it may be transferred to the Unspent CSR Account or any Schedule VII fund.

20. What are the ingredients to be incorporated in CSR Policy statements for best practices?

Best practices around the world, incorporate ingredients into their CSR Policy statements such as - vision of the board of the company, action plan of the company as to how to realise that vision, implementation methods of the plan, targets and time frames for performance revision in the project, partnerships and collaborations with other entities and budget of the project.

21. What all is mandatory for CSR reporting?

The Companies (Corporate Social Responsibility Policy) Rules, 2014 lays down compliances requisite for CSR Reporting like composition of CSR Committee, CSR Policy and CSR Project undertaken in the annual report on CSR activities annexed in the Board Report. Also, the rules state that if the CSR obligation amount is more than 10 crores, then the company will have to get its CSR activities audited. This CSR Audit will have to be annexed as an Impact Assessment Report in the annual report on CSR activities as well and attached to the Board report.

22. What should be the parameters for Impact Assessment Report?

The Impact Assessment Report is an audit done by an independent consultant, of the CSR projects and activities undertaken by the company. It tests the CSR undertakings of the company on evidence to infer the positive and negative effect of the activities on its benefactors. The main parameter of concern in such CSR Audits is to ascertain the consequence of the CSR activities undertaken by the company and whether such activities are in line with its own CSR policies and the CSR policies of the government.

23. What are the methods used in CSR Audit?

Methods such as questionnaire methods for deducing the satisfaction level of the benefactors of the CSR activities and their impact stories is most crucial to carry out a transparent CSR audit.

24. What about suggestions in the Impact Assessment reports of the CSR Activities?

The suggestions given out in the report by the independent auditor are in best practices incorporated by the company in its plans for fulfilling its CSR policies.

25. Will CSR have a good impact on the businesses?

Corporate Social Responsibility laws will have a positive impact on the business and society as a whole for it endeavours to establish a healthy and progressive business ecosystem in the country where the capitalists are to contribute to the growth of the nation not only economically but also socially.