ECSR refers to the Electronic Corporate Social Responsibility portal developed by the Ministry of Corporate Affairs (MCA) to track and report on CSR activities carried out by Indian companies. It was introduced to streamline the process of ensuring that companies comply with the Corporate Social Responsibility (CSR) guidelines under the Companies Act, 2013, and to provide transparency in CSR spending and activities.

Who Needs to Comply with ECSR?

1. Companies with Net Worth Above INR 500 Crore:

   • Any company meeting the threshold of INR 500 Crore net worth or annual turnover of INR 1000 Crore or net profit of INR 5 Crore or more must allocate a percentage of its profits (2%) towards CSR activities.

2. Public and Private Companies:

   • Both public and private limited companies that fall under the above criteria must adhere to CSR requirements and report their activities through the ECSR portal.

CSR Activities Covered Under ECSR

• Education: Support for schools, scholarships, and educational institutions.
• Healthcare: Funding for healthcare facilities, hospitals, and medical aid.
• Environment: Projects aimed at environmental conservation and sustainability.
• Rural Development: Initiatives aimed at improving the livelihood of rural areas.
• Disaster Relief: Donations and aid for natural disaster relief and rehabilitation.
• Social Welfare: Support for marginalized communities, women empowerment, and skill development.

ECSR Registration and Reporting Process

1. CSR Policy Adoption:

   • Companies need to first formulate a CSR policy that aligns with the objectives outlined in the Companies Act, 2013. This policy should detail the areas in which the company will contribute and how the funds will be utilized.

2. ECSR Portal Registration:

   • Companies must register on the ECSR portal managed by the MCA. This portal facilitates the filing of annual CSR reports and ensures compliance with the mandatory CSR expenditure.

3. CSR Expenditure Filing:

   • Companies must file details of their CSR activities, including the amount spent, the nature of projects, and the implementation status, via the ECSR portal.

4. CSR Impact and Audit:

   • The companies must also ensure that their CSR activities are regularly audited, and the outcomes and impact of CSR spending are transparently reported to stakeholders.

5. Annual CSR Report Submission:

   • Every year, businesses are required to submit a CSR report detailing the projects and funds allocated, as well as progress updates, through the ECSR portal.

Key Benefits of ECSR

• Transparency and Accountability: Ensures that CSR activities are transparent, and funds are properly utilized for the intended social causes.
• Simplified Reporting: Provides a streamlined digital platform for businesses to report their CSR contributions and activities in real-time.
• Legal Compliance: Helps companies adhere to the CSR provisions of the Companies Act, 2013, and avoid penalties for non-compliance.

Compliance Requirements

• Mandatory CSR Reporting: Under the Companies Act, companies with specified financial criteria must compulsorily spend 2% of their average net profits from the last three years on CSR activities.
• Audit of CSR Activities: CSR expenditures are subject to an audit, and companies must maintain proper records of their CSR projects.

Our ECSR service ensures that businesses fulfill their CSR obligations by streamlining the reporting process through the MCA’s electronic platform, promoting social responsibility, and contributing to nation-building.