CSR Filing-1 refers to the filing of the Corporate Social Responsibility (CSR) Report by companies in India, as mandated under Section 135 of the Companies Act, 2013. The CSR Report contains information about the company’s CSR activities and expenditure during the financial year.
Advantages of CSR Filing-1:
- Promotes Transparency: CSR Filing-1 promotes transparency and accountability by requiring companies to disclose their CSR activities and expenditure in a public report.
- Encourages Social Responsibility: CSR Filing-1 encourages companies to take up social responsibility and contribute to the development of society.
- Enhances Reputation: Companies that are actively involved in CSR activities and report their efforts through CSR Filing-1 can enhance their reputation among stakeholders, including investors, customers, and employees.
Disadvantages of CSR Filing-1:
- Time-consuming Process: CSR Filing-1 can be a time-consuming process, especially for large companies with multiple CSR initiatives.
- Cost: Companies may need to invest in resources such as manpower, software, and infrastructure to collect, collate, and report CSR data.
Procedure for CSR Filing-1:
- CSR Committee: The company must constitute a CSR Committee comprising of at least three directors, including at least one independent director.
- CSR Policy: The company must formulate a CSR policy that specifies the activities to be undertaken, the budget allocated, and the implementation timeline.
- CSR Expenditure: The company must spend at least 2% of its average net profit for the preceding three financial years on CSR activities.
- CSR Report: The company must prepare a CSR report that contains information about the CSR activities undertaken during the financial year, the amount spent on each activity, and the impact of the activities.
- Filing of CSR Report: The CSR report must be filed with the Registrar of Companies within 30 days from the end of the financial year.
In summary, CSR Filing-1 refers to the filing of the Corporate Social Responsibility (CSR) Report by companies in India, as mandated under Section 135 of the Companies Act, 2013. The advantages of CSR Filing-1 include promoting transparency, encouraging social responsibility, and enhancing reputation, while the disadvantages include being a time-consuming process and incurring cost. The procedure for CSR Filing-1 involves constituting a CSR Committee, formulating a CSR policy, spending on CSR activities, preparing a CSR report, and filing the report with the Registrar of Companies.