Policy ID: PCI/POL/17/2026-27 • Version 1.0 Owner: Board / CSR Responsible Officer • Approver: Board of Directors Sources: COA • Review: Annual / regulatory change
Purpose and application
Companies Act section 135 where thresholds are met; otherwise voluntary social expenditure.
1. Applicability assessment:- CFO shall annually test the immediately preceding financial year: net worth ₹500 crore, turnover ₹1,000 crore or net profit ₹5 crore. If any threshold is met, comply with section 135 and CSR Rules. RBI does not replace these statutory duties.
2. Governance and budget:- Constitute a CSR Committee where required; if the statutory spend obligation does not exceed ₹50 lakh, the Board may perform its functions as permitted. Budget at least 2% of average net profits of the three preceding years using statutory computation.
3. Project selection:- Choose eligible Schedule VII projects with measurable outcomes. Do not count ordinary business, employee-only benefits, political contributions or marketing sponsorships as statutory CSR. Verify implementing agencies, CSR-1 registration and required track record.
4. Execution and unspent funds:- Approve the annual action plan, utilization monitoring and CFO certification. Apply statutory treatment of unspent ongoing-project funds and other unspent amounts. CSR surplus shall not become business profit; follow administrative overhead and impact- assessment rules.
5. Disclosure and review:- Maintain project agreements, beneficiary evidence and spend reconciliations. Make annual Board report and website disclosures and applicable filings. Review projects quarterly and this policy annually. Voluntary donations shall be tracked separately.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.