Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

Rule 1- Short title and Commencement: a. These rules may be called the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. b. They shall come into force on the 1st day of April, 2014 Rule 2- Definitions: Act  Companies Act, 2013 (18 of 2013) Annexure Annexure to these rules Fees the fees as specified in the Companies (Registration offices and fees) Rules, 2014 Form'' or "e form" a form set forth in Annexure to these rules which shall be used for the matter to which it relates ''Regional Director the person appointed by the Central Government in the Ministry of Corporate Affairs as a Regional Director section section of the Act Words and expressions used in these rules but not defined and defined in the Act or in Companies (Specification of definitions details) Rules, 2014 shall have the meanings respectively assigned to them in the Act and said rules Rule 3- Filing of return of appointment: A company shall file a return of appointment of a MD, Whole Time Director or Manager, CEO, Company Secretary and CFO within 60 days of the appointment, with the Registrar in Form No. MR.1 along with such fee as may be specified for this purpose Rule 4-Sitting fees: A company may pay a sitting fee to a director for attending meetings of the Board or committees thereof, such sum as may be decided by the Board of directors thereof which shall not exceed one Rs.1,00,000/-per meeting of the Board or committee thereof: For Independent Directors and Women Directors, the sitting fee shall not be less than the sitting fee payable to other directors. Rule 5 -Disclosure in Board's report: Every listed company shall disclose in the Board's report- • the ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year; • the percentage increase in remuneration of each director, CFO, CEO, Company Secretary or Manager, if any, in the financial year; • the percentage increase in the median remuneration of employees in the financial year; • the number of permanent employees on the rolls of company; • the explanation on the relationship between average increase in remuneration and company performance; • comparison of the remuneration of the KMP against the performance of the company; • variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer in case of listed companies, and in case of unlisted companies, the variations in the net worth of the company as at the close of the current financial year and previous financial year; • average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration • comparison of the each remuneration of the Key Managerial Personnel against the performance of the company; • the key parameters for any variable component of remuneration availed by the directors; • the ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year; and • affirmation that the remuneration is as per the remuneration policy of the company. "Median" means the numerical value separating the higher half of a population from the lower half and the median of a finite list of numbers may be found by arranging all the observations from lowest value to highest value and picking the middle one; If there is an even number of observations, the median shall be the average of the two middle values Statement of Employee's Remuneration: The board's report shall include a statement showing the name of every employee of the company, who if employed- Employed status Remuneration Throughout the financial year, Remuneration for that year which, in the aggregate, was not less than Rs.60 lacs. Part of the financial year Remuneration for any part of that year, at a rate which, in the aggregate, was not less than Rs.5 lacs per month Throughout the financial year or part thereof, Remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the MD or WTD or manager and holds by himself or along with his spouse and dependent children, not less than 2% of the equity shares of the company Particulars of Employee: • designation of the employee; • remuneration received; • nature of employment, whether contractual or otherwise; • qualifications and experience of the employee; • date of commencement of employment; • the age of such employee; • the last employment held by such employee before joining the company; • the percentage of equity shares held by the employee in the company and • whether any such employee is a relative of any director or manager of the company and if so, name of such director or manager: The particulars of employees posted and working in a country outside India, not being directors or their relatives, drawing more than Rs.60 lacs per financial year or Rs.5 lacs per month, as the case may be, as may be decided by the Board, shall not be circulated to the members in the Board's report, but such particulars shall be filed with the Registrar of Companies while filing the financial statement and Board Reports The particulars shall be made available to any shareholder on a specific request made by him in writing before the date of such Annual General Meeting wherein financial statements for the relevant financial year are proposed to be adopted by shareholders and such particulars shall be made available by the company within three days from the date of receipt of such request from shareholders. In case of request received even after the date of completion of Annual General Meeting, such particulars shall be made available to the shareholders within seven days from the date of receipt of such request Rule 6-Applications to the Central Government: The Central Government or the company shall have regard to the following matters, namely:- • the Financial and operating performance of the company during the three preceding financial years. • the relationship between remuneration and performance. • the principle of proportionality of remuneration within the company, ideally by a rating methodology which compares the remuneration of directors to that of other directors on the board who receives remuneration and employees or executives of the company. • whether remuneration policy for directors differs from remuneration policy for other employees and if so, an explanation for the difference. • the securities held by the director, including options and details of the shares pledged as at the end of the preceding financial year. Rule 7- Fees: (1) Every application made to the Central Government under the provisions of Chapter XIII shall be made in Form No. MR.2 and shall be accompanied by fee as may be specified for the purpose. (2) The companies other than listed companies and subsidiary of a listed company may without Central Government approval pay remuneration to its managerial personnel, in the event of no profit or inadequate profit beyond ceiling specified in Section II, Part II of Schedule V, subject to complying with the certain conditions. Conditions: • payment of remuneration is approved by a resolution passed by the Board and, in the case of a company covered under sub-section (1) of section 178 also by the Nomination and Remuneration Committee, if any, and while doing so record in writing the clear reason and justification for payment of remuneration beyond the said limit; • the company has not made any default in repayment of any of its debts (including public deposits) or debentures or interest payable thereon preference shares and dividend on preference shares for a continuous period of thirty days in the preceding financial year before the date of payment to such managerial personnel; • the approval of shareholders by way of a special resolution at a general meeting of the company for payment of remuneration for a period not exceeding three years; a statement along-with a notice calling the general meeting, shall contain the information as per sub clause (iv) of second proviso to clause (B) of section II of part-II of Schedule V of the Act including reasons and justification for payment of remuneration beyond the said limit; the company has filed Balance Sheet and Annual Return which are due to be filed with the Registrar of Companies. (3) Every such application seeking approval shall be made to the Central Government within a period of 90 days from the date of such appointment. Rule 8- Appointment of Key Managerial Personnel: Every listed company and every other public company having a paid-up share capital of Rs.10 Crores or more shall have whole-time KMP. Rule 8A –Appointment of Company Secretaries in companies not covered under Rule 8: The MCA has amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and inserted a new Rule 8A on 9th June 2014. A company other than a company covered under Rule 8 which has a paid up share capital of Rs.5 Crores or more shall have a whole–time Company Secretary. Rule 9- Secretarial Audit Report: (1) For the purposes of sub-section (1) of section 204, the other class of companies shall be as under- (a) every public company having a paid-up share capital of Rs.50 Crores or more; or (b) every public company having a turnover of  Rs.250 Crores  rupees or more. (2) The format of the Secretarial Audit Report shall be in Form No.MR.3. Rule 10- Duties of Company Secretary: The duties of Company Secretary shall also discharge, the following duties, namely:- • To provide to the directors of the company, collectively and individually, such guidance as they may require, with regard to their duties, responsibilities and powers; • To facilitate the convening of meetings and attend Board, committee and general meetings and maintain the minutes of these meetings; • To obtain approvals from the Board, general meeting, the government and such other authorities as required under the provisions of the Act; • To represent before various regulators, and other authorities under the Act in connection with discharge of various duties under the Act; • To assist the Board in the conduct of the affairs of the company; • To assist and advise the Board in ensuring good corporate governance and in complying with the corporate governance requirements and best practices; and • To discharge such other duties as have been specified under the Act or rules; and • such other duties as may be assigned by the Board from time to time.

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Meetings & Minutes -  Changes under the Co.Act, 2013

BOARD MEETINGS 1. Time limit prescribed for holding first board meeting. First Board meeting to be held within 30 days of incorporation. [Section 173(1)] 2. Minimum number of meetings to be held in a year: • For OPC, having more than 1 director, small and dormant Company – 2 [Section 173(5)] • For all other companies – 4 [Section 173(1)] 3. Time Gap between two board meetings • For OPC, having more than 1 director, small and dormant Company – Not less than 90 days. [Sec 173(5)] • For all other companies: Not more than 120 days [Sec 173(1)] 4. Board meetings through video conferencing: • Directors are permitted to attend board meetings through video conferencing and other audio visual means subject to compliance with the rules in this regard. • Each director has to attend atleast one meeting in person in a year. • Presence of director in through video conferencing will be counted for the purpose of quorum. • Approval of Annual Financial Statements and Board's Report cannot be dealt in a meeting held through video conferencing. [Section 173(1) read with relevant rules] 5. Minimum length of notice for Board Meetings prescribed. Atleast 7 days notice in writing needs to be given to all directors, at their addresses registered with the company, by hand deliver, post or by electronic means. Shorter notice is permitted subject to presence of or ratification by atleast 1 independent director, if any. [Section 173(3)] 6. In case of passing of resolution by circulation, where not less than 1/3rd of the total directors require that a resolution under circulation must be decided at a meeting, the chairperson shall put the resolution to be decided at a meeting of the Board. [Section 175(1) proviso]. 7. A resolution passed by circulation needs to be noted at subsequent Board meeting and made part of minutes of such meeting. [Section 175(2)] 8. Matters which cannot be transacted though passing of resolution by circulation: • to make calls on shareholders in respect of money unpaid on their shares [Section 179] • to authorise buy-back of securities under Sec 68 [Sec 179] • to issue securities, including debentures, whether in or outside India [Section 179] • to borrow monies [Section 179] • to invest the funds of the company [Section 179] • to sell investments held by the company (other than trade 5% or more of the paid – up share capital and free reserves of the investee company [Section 179] • to grant loans or give guarantee or provide security in respect of loans [Section 179] • to approve quarterly, half yearly and annual financial statements and the Board's report [Section 179] • to diversify the business of the company [Section 179] • to commence a new business [Section 179] • to approve amalgamation, merger or reconstruction [Sec 179] • to take over a company or acquire a controlling or substantial stake in another company [Section 179] • to appoint a director in casual vacancy [Section 179] • to make contribution to a political party [Section 179] • to appoint or remove key managerial personnel (KMP) and senior management personnel one level below the KMP [Section 179] • to take on record disclosure of interest by directors and shareholding [Section 179] • to enter into a joint venture or technical or financial collaboration or any collaboration agreement [Sec 179] • to adopt common seal [Section 179] • to appoint internal auditors [Section 179] • to shift the location of a plant or factory or the registered office [Section 179] • to accept public deposits and related matters [Section 179] • to enter into any contract or arrangement with a related party (Section 188) • to appoint and fix remuneration of a Managing Director / Whole Time Director / Manager [Section 196(4)] • to appointment a person as Managing Director who is already a Managing Director / Manager of one other company [Section 203(3) Proviso] • to fill vacancy in the office of any whole time Key Managerial Personnel [Section 203(4)] • to make loans or investment or give security or guarantee [Section 186(5)] • to make declaration of solvency in case of voluntary winding up (Section 305) • to place Register of contracts or arrangements in which directors are interested (Sec 189) General Meetings 1. All provisions relating to general meetings like length of notice, explanatory statement etc. is applicable to private companies also. 2. First Annual General Meeting should be held within 9 months of closure of first financial year. The provision regarding holding first AGM within 18 months from date of  incorporation has been done away with. [Section 96(1)] 3. AGM needs to be held during business hours, i.e. between 9.00 A.M. to 6.00 P.M. on any day that is not a National Holiday. [Section 96(2)] 4. In case AGM has to be called at a shorter notice, consent from 95% of the members is required [Sec 101(1) proviso] 5. Notice of every general meeting needs to be served on every director also. [Section 101(3)] 6. In case of an adjourned meeting, the company shall give not less than 3 days notice to the members either individually or by publishing an advertisement in the newspapers (one in English and one in vernacular language) which is in circulation at the place where the registered office of the company is situated. 7. In explanatory statement, nature of concern or interest of every Key Managerial Personnel and their relatives and relatives of directors also need to be disclosed. If the special business relates to any other company, then shareholding of any director or manager in that other company has to be disclosed if the holding is not less than 2% of paid up capital of the other company. [Section 102] 8. Quorum for public companies [Section 103] 9. Proxy: • In case of companies formed not for profit, a member only can act as proxy for another member. • No person shall act as proxy on behalf of members not exceeding 50 and holding in the aggregate not more than 10% of the total share capital of the company carrying voting rights. • Restriction that unless the articles otherwise provide a member of a private company shall not be entitled to appoint more than one proxy to attend on the same occasion has been removed. 10. Voting through electronic means Every listed company or a company having 1000 or more shareholders shall provide to its members facility to exercise their right to vote at general meetings by electronic means. [Section 108] 11. Postal Ballot • No postal ballot for Ordinary business • All items of business on which a director or auditor has right to be heard cannot be transacted through postal ballot. • A brief report on the postal ballot conducted including the resolution proposed, the result of the voting thereon and the summary of the scrutinizer's report shall be entered in the minutes book of general meetings along with the date of such entry within thirty days from the date of passing of resolution. • Following items of business can be transacted through postal ballot only, except in case of OPC and companies having less than 200 members: a.  Alteration of objects clause of MOA b. Alteration of AOA by means of insertion or removal of provisions necessary to constitute a company as a private company in terms of Section 2(68) c. Change of registered office outside the local limits of any city, town or village as specified in section 12(5). d. Change in objects for which a company has raised money from public through prospectus and still has any unutilized amount out of the money so raised under section 13(8). e. Issue of shares with differential rights as to voting or dividend or otherwise under Section 43(a)(ii) f.  Variation in the rights attached to a class of shares or debentures or other securities as specified under sec 48 g.  Buy-back of shares by a company under section 68(1) h. Election of a director under section 151 i.  Sale of the whole or substantially the whole of an undertaking of a company as specified under sec 180(1)(a) j.  Giving loans or extending guarantee or providing security in excess of the limit prescribed under Sec 186(3). Minutes 1. In case of Board and Committee meetings, the minutes shall also contain names of the directors present and names of directors who voted for and against each resolution. 2. Minutes shall not contain any matter which is defamatory to any person, is irrelevant or immaterial or detrimental to the interest of the company. Chairman to exercise discretion in this regard. 3. Secretarial Standards prescribed by ICSI to be observed in preparation of minutes. 4. A member who has made a request for provision of soft copy in respect of minutes of any previous general meetings held during a period of immediately preceding three financial years shall be entitled to be furnished, with the same free of cost.

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Major changes in Income Tax Returns for A.Y 2014-15

1. All taxpayers filing E-Returns will have to compulsorily update correct mobile number and E- Mail ID's. Otherwise there will be login issues before uploading of return on income tax Depts Website. 2. Now onwards Income Tax Refund will be issued directly in the bank account of the taxpayer through ECS only, cheques are discontinued. Therefore at most care should be taken while mentioning Bank Account Number and IFSC Code in the income tax returns. 3. From this year while claiming TDS in Income Tax return facility has been given to carry forward the TDS of previous year and brought forward TDS to next year. Due to this reconciliation of TDS claimed on Income and total available TDS as per Form 26 can be made. Tax payers which follow cash system of accounting will be benefited, like Doctors, Advocates, CAs and other professionals. 4. As per newly inserted Section 87A if annual income of the taxpayer is up to Rs. 5,00,000/- then Tax relief of maximum of Rs. 2,000/- is given. For claiming this relief separate space has been inserted in the return. 5. As per newly inserted Section 80EE if taxpayer has purchased house up to Rs. 40 Lakh and taken housing loan of Rs. 25 Lakh then taxpayer can claim deduction of interest up to Rs. 1 Lakh. For claiming this deduction separate space has been inserted in the return. 6. If income of the taxpayer is more than Rs. 1 crore then surcharge of 10% is applicable. For this separate space has been inserted in the return. 7. All salaries taxpayers will now have to give now separate details of LTA (Leave Travel Allowance) and HRA (House Rent Allowance) and other allowances separately. This will help Govt. to track proper claim of such deductions, recent HRA and LTA fallacious claimed by some MPs and Govt. taxpayers may have forced for such changes. 8. From this year the details of short and long term capital gain will have to be given in three parts viz. a) sale of plot / flat b) sale of STT paid shares and mutual funds c) sale of other assets. Further in case of sale of land or building Stamp Duty Value will have to be mentioned. Further if taxpayer is availing exemption under capital gains then value of newly purchased asset, date of acquisition of the asset and if invested in capital gain account then its details will have to be mentioned. 9. Corporate or LLP assessee will have to mention Corporate Identification Number or LLP Identification Number. Further Director or Designated Partner Identification Number will have to be mentioned. This will help in cross check of information with other legal departments by income tax dept or visa a versa. 10. If assessee carrying on business is taking deduction of bad debts of more than Rs. 1 Lakh of single person, then his PAN will have to be mentioned. 11. As per newly inserted section 43 CA if, taxpayer have sold other than capital assets below stamp duty value (eg. builders / developers) then the difference between the two will be considered as deemed income of the assessee and tax will have to be paid on it. For this separate space has been inserted in the return. 12. If there is more than one owner of the house then, while mentioning details in the schedule of Income from House Property the percentage of co ownership will have to be given. 13. From this year e-filing of wealth tax return is compulsory and in this return the details of all wealth whether taxable or not, will have to be given in depth. . .

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Filing of return of deposits in DPT-4

Filing of return of deposits in DPT-4  Most of the private limited companies in India being closely held companies do not worry a lot about the compliances related to the companies act, but this could become really serious since the new companies act has lot of penal sections. In an attempt to learn the act I am posting a few things that I have come across which may be of use to small &  medium practitioners. In case there is a different view on the same or in case there is an issue in what I have posted kindly let me know. All of us are learning now and this is just the beginning so all views are invited.  On reading Section 74 there are 3 important things to be noted. 1. Deposits have to be repaid within 1 year 2. Return has to be filed within 3 months from commencement of act. 3. Penalty provision. Many of us may say that a private limited cannot take deposits in the old companies act as well so there might not be requirement to file the return. EARLIER STATUS Deposit does not include loans from shareholders, directors & relative of directors. CURRENT STATUS Deposit does not include loans from directors. Meaning loans from shareholders and from relative of directors are deposits. Hence, all those companies having deposit from the above people have the following alternatives: 1. Make such people directors of the companies 2. Repay the amount within 1 year from the date of commencement of act + file DPT 4 within 30.06.2014. 3. In case both of the above is not possible file with tribunal for permission to pay it on a future date. Format of DPT 4 is provided by MCA and can be downloaded from this link http://www.mca.gov.in/MCA21/dca/downloadeforms/eformTemplates/NCA/Form_DPT-4.pdf DPT 4 is not an electronic form and hence it has to be filed with another form called GNL 2 the same can be downloaded from MCA at the following link http://www.mca.gov.in/MCA21/dca/downloadeforms/eformTemplates/NCA/Form_GNL-2_help.zip

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

Filing of Form MBP 1: Interest of directors

Filing of Form MBP 1: Interest of directors

This is one of the important changes that have happened from Companies Act of 1956 (old act) to Companies Act of 2013 (new act). In the old act there was a requirement on the directors to disclose their interest to the company in form 24AA and the same needed to be taken on records by the company in a board meeting. Similarly in the new act, a director has to disclose interest in form MBP 1 to the company in the first board meeting of the company. Section 184(1) and Rule 9(1) of Companies (Meetings of Board and its Powers) Rules,2014 deal with this requirement. DUE DATE FOR FILING: Within 30 days of holding first Board Meeting. SAVINGS FOR SMALL COMPANY: A Small Company need not get the same attested by a practicing professional, meaning the company can file the form itself.    PROCEDURE: - Prepare MBP 1 in format notified by the government. Download from FORM MBP - 1 Notice of interest by director - Prepare board resolution RESOLVED FURTHER THAT Mr. Mukesh Gupta, Managing Director of the Company, be and is hereby authorized to make necessary entries in the Registrar maintained for the purpose and to digitally sign and file E-form MGT.14 with the Registrar of Companies, NCT of Delhi and Haryana.     FURTHER RESOLVED THAT Mr. Aman Jain, Practicing Company Secretary, Kolkata be and is hereby authorized to certify and file Form MGT.14 with Registrar of Companies, NCT of Delhi and Haryana and to do such acts, deeds and things as may be considered necessary and appropriate to give effect to the above resolution." - Take signatures on the above prepared forms and board resolution - Scan the same and attach with Form MGT 14 and file the same with ROC. Download form MGT 14 from the following link: http://mca.gov.in/MCA21/dca/downloadeforms/eformTemplates/NCA/Form_MGT-14.zip

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CA SANJAY DEWAN

B.COM (H),FCA

FCMA,LCS,MIMA

MCA releases illustrative list of CSR activities; includes salary to CSR staff and excludes exp. on Marathons

SECTION 135 OF THE COMPANIES ACT, 2013 - CORPORATE SOCIAL RESPONSIBILITY - CLARIFICATIONS WITH REGARD TO PROVISIONS OF CORPORATE SOCIAL RESPONSIBILITY UNDER SECTION 135

GENERAL CIRCULAR NO.21/2014 [NO.05/01/2014-CSR], DATED 18-6-2014

This Ministry has received several references and representation from stakeholders seeking
clarifications on the provisions under Section 135 of the Companies Act, 2013 (herein after
referred as 'the Act') and the Companies (Corporate Social Responsibility Policy) Rules, 2014,
as well as activities to be undertaken as per Schedule VII of the Companies Act, 2013. Clarifications with respect to representations received in the Ministry on Corporate Social Responsibility (hereinafter
referred as ('CSR') are as under:-

(i)		The statutory provision and provisions of CSR Rules, 2014, is to ensure that while activities undertaken in pursuance of the CSR policy must be relatable to Schedule VII of the Companies Act 2013, the entries in the said Schedule VII must be interpreted liberally so as to capture the essence of the subjects enumerated in the said Schedule. The items enlisted in the amended Schedule VII of the Act, are broad-based and are  intended to cover a wide range of activities as illustratively mentioned in the Annexure.
(ii)		It is further clarified that CSR activities should be undertaken by the companies in project/programme mode [as referred in Rule 4(1) of Companies CSR Rules, 2014]. One-off events such as marathons/awards/ charitable contribution/advertisement/sponsorships of TV programmes etc. would not be qualified as part of CSR expenditure.
(iii)		Expenses incurred by companies for the fulfillment of any Act/ Statute of regulations (such as Labour Laws, Land Acquisition Act etc.) would not count as CSR expenditure under the Companies Act.
(iv)		Salaries paid by the companies to regular CSR staff as well as to volunteers of the  companies (in proportion to company's time/hours spent specifically on CSR) can be  factored into CSR project cost as part of the CSR expenditure.
(v)		"Any financial year" referred under Sub-Section (1) of Section 135 of the Act read with Rule 3(2) of Companies CSR Rule, 2014, implies 'any of the three preceding financial years'.
(vi)		Expenditure incurred by Foreign Holding Company for CSR activities in India will qualify as CSR spend of the Indian subsidiary if, the CSR expenditures are routed through Indian subsidiaries and if the Indian subsidiary is required to do so as per section 135 of the  Act.
(vii)		'Registered Trust' (as referred in Rule 4(2) of the Companies CSR Rules, 2014) would  include Trusts registered under Income Tax Act 1956, for those States where registration  of Trust is not mandatory.
(viii)		Contribution to Corpus of a Trust/ society/ section 8 companies etc. will qualify as CSR expenditure as long as (a) the Trust/ society/ section 8 companies etc. is created exclusively for undertaking CSR activities or (b) where the corpus is created exclusively for a purpose directly relatable to a subject covered in Schedule VII of the Act.

2. This issues with the approval of Competent Authority.

ANNEXURE

SI. No.	Additional items requested to be included in Schedule VII or to be clarified as already being covered under Schedule VII of the Act		Whether covered under Schedule VII of the Act
1.	Promotion of Road Safety through CSR:		(a)	Schedule VII (ii) under "promoting education".
	(i)	(a) Promotions of Education, "Educating the Masses and Promotion of Road Safety awareness in all facets of road usage,	(b)	For drivers training etc. Schedule VII (ii) under "vocational skills".
		(b) Drivers' training,	(c)	It is establishment  functions of Government (cannot be covered).
		(c) Training to enforcement personnel,		(d)  Schedule VII (ii) under "promoting education".
		(d) Safety traffic engineering and awareness through print, audio and visual media" should be included.
	(ii)	Social Business Projects :	(ii)  Schedule VII (i) under ' promoting health care including preventive health care.'
		"giving medical and Legal aid, treatment to road accident victims" should be included.
2.	Provisions for aids and appliances to the differently- able persons - 'Request for inclusion		Schedule VII (i) under 'promoting health care including preventive health care.'
3.	The company contemplates of setting up ARTIIC (Applied Research Training and Innovation Centre) at Nasik. Centre will cover the following aspects as CSR initiatives for the benefit of the predominately rural farming community:		Item no. (ii) of Schedule VII under the head of "promoting education" and "vocational skills" and "rural development".
	(a)	Capacity building for farmers covering best sustainable farm management practices.	(a)	"Vocational skill" livelihood enhancement  projects.
	(b)	Training Agriculture Labour on skill development.	(b)	"Vocational skill"
	(c)	Doing our own research on the field for individual crops to find out the most cost optimum and Agri-ecological sustainable farm practices. (Applied research) with a focus on water management.	(c)	'Ecological balance', 'maintaining quality of soil,  air and water'.
	(d)	To do Product Life Cycle analysis from the soil conservation point of view.	(d)	"Conservation of natural resource" and 'maintaining quality of soil, air and water'.
4.	To make "Consumer Protection Services" eligible under CSR. (Reference received by Dr. V.G. Patel, Chairman of Consumer Education and Research Centre).		Consumer education and awareness can be covered under Schedule VII (ii) "promoting education".
	(i)	Providing effective consumer grievance redressal mechanism.
	(ii)	Protecting consumer's health and safety, sustainable consumption, consumer service, support and complaint resolution.
	(iii)	Consumer protection activities.
	(iv)	Consumer Rights to be mandated.
	(v)	all consumer protection programs and activities" on the same lines as Rural Development, Education etc.
5.	(a)	Donations to IIM [A] for conservation of buildings and renovation of classrooms would qualify as "promoting education" and hence eligible for compliance of companies with Corporate Social Responsibility.	Conservation and renovation of school buildings and classrooms relates to CSR activities under Schedule VII as "promoting education".
	(b)	Donations to IIMA for conservation of buildings and renovation of classrooms would qualify as "protection of national heritage, art and culture, including restoration of buildings and sites of historical importance" and hence eligible for compliance of companies with CSR.
6.	Non Academic Technopark TBI not located within an academic Institution but approved and supported by Department of Science and Technology.		Schedule VII (ii) under "promoting education", if approved by Department of Science and Technology.
7.	Disaster Relief		Disaster relief can cover wide  range of activities that can be appropriately shown under various items listed in Schedule VII. For example,
			(i)	medical aid can be covered  under 'promoting health care including preventive health care.'
			(ii)	food supply can be covered under eradicating  hunger, poverty and  malnutrition.
			(iii)	supply of clean water can be covered under 'sanitation and making available safe drinking water'.
8.	Trauma care around highways in case of road accidents.		Under 'health care'.
9.	Clarity on "rural development projects"		Any project meant for the development of rural India will be covered under this.
10.	Supplementing of Govt. schemes like mid-day meal by corporates through additional nutrition would qualify under Schedule VII.		Yes. Under Schedule VII, item no. (i) under 'poverty and malnutrition'.
11.	Research and Studies in the areas specified in Schedule VII.		Yes, under the respective areas of items defined in Schedule VII. Otherwise under 'promoting education'.
12.	Capacity building of government officials and elected representatives - both in the area of PPPs and urban infrastructure.		No.
13.	Sustainable urban development and urban public transport systems		Not covered.
14.	Enabling access to, or improving the delivery of, public health systems be considered under the head "preventive healthcare" or "measures for reducing inequalities faced by socially & economically backward groups"?~		Can be covered under both the  heads of "healthcare" or "measures for reducing  inequalities faced by socially & economically backward groups", depending on the context.
15.	Likewise, could slum re-development or EWS housing be covered under "measures for reducing inequalities faced by socially & economically backward groups"?		Yes.
16.	Renewable energy projects		Under 'Environmental sustainability, ecological balance and conservation of natural resources',
17.	(i)	Are the initiatives mentioned in Schedule VII exhaustive?	(i) & (ii) Schedule VII  is  to be liberally interpreted so as to capture the essence of subjects enumerated in the schedule.
	(ii)	In case a company wants to undertake initiatives for the beneficiaries mentioned in Schedule VII, but the activity is not included in Schedule VII, then will it count (as per 2(c)(ii) of the Final Rules, they will count)?
18.	US-India Physicians Exchange Program - broadly speaking, this would be program that provides for the professional exchange of physicians between India and the United States.		No.

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