**Executive Summary**
This document is a response from the Minister of Corporate Affairs to a parliamentary question regarding Corporate Social Responsibility (CSR) activities in Andhra Pradesh. The response provides clarifications on the allocation, utilization, and monitoring of CSR funds as per the Companies Act, 2013. It includes details on CSR expenditure across various development sectors and districts in Andhra Pradesh for the financial years 2019-20 to 2023-24.
**Key Points / Main Content**
* **CSR Fund Allocation:**
* There is no specific provision under the Companies Act, 2013, for the allocation of CSR funds.
* **Data on CSR Expenditure:**
* Development sector-wise and district-wise CSR expenditure data for Andhra Pradesh, including Palnadu district, from FY 2019-20 to FY 2023-24 is provided in Annexure-I and Annexure-II respectively.
* **Unspent CSR Funds:**
* The Ministry does not maintain central records of unspent CSR funds.
* **Treatment of Unspent CSR Amounts (Section 135, Companies Act, 2013):**
* For ongoing projects, unspent CSR amounts must be transferred to a special ‘Unspent CSR Account’ within 30 days after the end of the financial year.
* These funds must be spent within the next three financial years.
* After three financial years, any remaining unspent amount must be transferred to a fund specified in Schedule VII of the Act within 30 days of the third financial year's completion.
* For projects other than ongoing projects, the company is required to transfer the unspent CSR amount to any Fund mentioned in Schedule VII of the Act within a period of six months from the end of the financial year.
* **Audit and Monitoring:**
* Expenditure on CSR activities must be audited by the company's statutory auditors.
* The Companies (Auditor's Report) Order, 2020 (CARO, 2020), requires auditors to state details of unspent CSR amounts from FY 2021-22.
* **Complaint Handling:**
* Complaints against companies and officers are examined, and penal action is initiated if violations are found, following due process.
* **CSR Policy Disclosure:**
* The Board of Directors must disclose the implemented CSR Policy in their Board report.
* The Board must ensure funds are utilized for approved purposes, certified by the Chief Financial Officer.
* Companies must report CSR activities and Impact Assessments in the 'Annual Report on CSR', including an annual action plan.
* Companies with websites must disclose the CSR Committee composition, CSR Policy, and Board-approved CSR projects for public access.
**Impact Analysis**
**Companies Operating in Andhra Pradesh**
* **Impact:** Companies must adhere to the provisions of Section 135 of the Companies Act, 2013, regarding the treatment of unspent CSR amounts, including the transfer to ‘Unspent CSR Accounts’ and subsequent utilization within specified timelines. They also need to ensure their CSR expenditure is audited and that they comply with disclosure requirements.
* **Action Required:** Companies must review their CSR policies and procedures to ensure compliance with the Companies Act, 2013, especially concerning the management and utilization of unspent CSR funds. They must prepare for audits and disclosures as per CARO, 2020, and disclose relevant information on their websites.
**Statutory Auditors**
* **Impact:** Auditors must now include details of any unspent CSR amounts in their reports, as mandated by CARO, 2020.
* **Action Required:** Statutory auditors must familiarize themselves with the requirements of CARO, 2020, regarding CSR expenditure and ensure that their audit procedures adequately address the utilization of CSR funds.
**Ministry of Corporate Affairs**
* **Impact:** The Ministry is responsible for overseeing CSR activities and ensuring compliance with the Companies Act, 2013.
* **Action Required:** Continue monitoring CSR activities and taking action against companies found in violation of the regulations.
**ROC Andhra Pradesh**
* **Impact:** Responsible for handling complaints.
* **Action Required:** Detailed examination of the received complaints, and penal action if any variation is found as per provisions of the Act.
**Shareholders of Companies**
* **Impact:** Improved awareness of CSR activities through the annual report on CSR.
* **Action Required:** No immediate action, other than informing themselves using company CSR publications.
Key Entities Referenced
Companies Act, 2013: Governs Corporate Social Responsibility (CSR) spending and disclosures.
Andhra Pradesh: The state where CSR activities are examined in the question.
Ministry of Corporate Affairs: The ministry responsible for overseeing CSR compliance.
Section 135 of the Companies Act, 2013: Details the regulations regarding unspent CSR amounts.
Companies (Auditor's Report) Order, 2020 (“CARO, 2020”): Requires auditors to report details of unspent CSR amounts.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1340
Monday, December 8, 2025/Agrahayana 17, 1947 (Saka)
CSR ACTIVITIES IN ANDHRA PRADESH
QUESTION
1340. Shri Lavu Sri Krishna Devarayalu:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) the funds allocated by companies for CSR activities in Andhra Pradesh during the
last five years, year-wise, sector-wise and district-wise, especially in Palnadu
district;
(b) the total unspent CSR funds of companies operating in Andhra Pradesh during the
last five years, year/district-wise, especially in Palnadu district;
(c) the details regarding the functioning of the ‘unspent CSR account’ mechanism,
including timelines, fund utilization and monitoring procedures;
(d) whether the Government has identified any issues or delays in the utilisation of
unspent CSR funds, if so, the steps taken to ensure timely and effective utilization;
(e) the number of companies that failed to meet their CSR obligations in Andhra
Pradesh along with the penalties imposed for non-compliance;
(f) whether any large-scale CSR initiatives in Andhra Pradesh have received national
recognition, and if so, the details thereof; and
(g) the measures undertaken to improve transparency, accountability and monitoring
of CSR funds and unspent CSR accounts across the State?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER
OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
[SHRI HARSH MALHOTRA]
(a): There is no provision of allocation of Corporate Social Responsibility (CSR) funds
under the Companies Act, 2013. On the basis of annual filings made by companies in
the MCA21 registry, the development sector-wise and district-wise CSR expenditure
in Andhra Pradesh including Palnadu district for the last five Financial Years i.e. FY
2019-20 to FY 2023-24 is attached at Annexure-I and Annexure-II respectively.
(b): The Ministry does not maintain the details of Unspent CSR funds centrally.
(c): Section 135 of the Companies Act, 2013 provides for treatment of unspent CSR
amount. In case of an ongoing project, the company is required to transfer the
unspent amount to a special account of the company i.e. ‘Unspent CSR Account’,
within 30 days from the end of financial year and spend the same in pursuance of its
CSR policy within the next three financial years from the date of such transfer.
Contd…2/--2-
After lapse of three financial years, the amount remaining unspent, if any, is required
to be transferred to any Fund mentioned in Schedule VII of the Act within a period of
thirty days from the date of completion of the third financial year. In case of other
than an ongoing project, the company is required to transfer the unspent CSR amount
to any Fund mentioned in Schedule VII of the Act within a period of six months from
the end of the financial year.
(d) The expenditure on CSR activities is required to be audited by the statutory
auditors of the company. Further, Ministry has notified the Companies (Auditor’s
Report) Order, 2020, (“CARO, 2020”) applicable from FY 2021-22 which requires
auditors to state details of any unspent CSR amount. Thus, the corporate
governance framework along with the existing legal provisions such as
mandatory disclosures, accountability of the CSR Committee and the Board,
provisions for statutory audit of accounts of the company, etc., provide adequate
safeguards for proper utilization of CSR funds.
(e) In case of receipt of complaint against the companies and officers-in-default,
detailed examination is conducted and in case any variation is found, penal action
as per provisions of the Act following due process of law is initiated. No such
irregularity or violation has come to the notice of the concerned office, i.e., ROC
Andhra Pradesh.
(f) No such instance has come to the notice of the Ministry.
(g) The Board of the company is required to disclose the CSR Policy implemented
by the company in its Board report. The Board of the company has to satisfy itself
that the funds so disbursed have been utilised for the purposes and in the manner
as approved by it, and the Chief Financial Officer or the person responsible for
financial management shall certify to the effect. The details of CSR activities,
Impact Assessment etc. are required to be reported by the companies in the
‘Annual Report on CSR’ including an annual action plan on CSR which is part of
the Company’s Board Report. The Board's Report including Annual Report on CSR
is an important tool of communication by the Board of a company to its
shareholders. Further, those companies who have their websites are required to
make disclosures such as composition of CSR Committee, CSR Policy and CSR
projects approved by Board on their website for public access and transparency.
*****Annexure-I
Refer to part (a) of Lok Sabha Unstarred Question no. 1340 for 08.12.2025
Development sector-wise CSR expenditure in Andhra Pradesh from FY 2019-20 to
FY 2023-24
(Amount in Rupees Crore)
SL.N FY FY FY FY FY
Development Sector
o. 2019-20 2020-21 2021-22 2022-23 2023-24
1 Agro forestry 0.18 0.28 0.01 8.39 4.35
2 Animal welfare 17.27 43.48 2.26 4.66 3.79
Armed Forces, Veterans,
3 0.09 0.01 0.02 0.51 0.16
War Widows/ Dependants
4 Art and culture 4.81 4.83 1.35 4.77 6.11
Conservation of natural
5 2.49 1.42 58.41 76.06 71.19
resources
6 Education 159.14 121.01 135.79 190.71 200.57
Environmental
7 86.30 65.97 45.48 36.25 40.44
sustainability
8 Gender equality 4.04 0.05 1.29 0.57 1.76
9 Health care 234.93 197.33 201.85 203.95 229.54
Livelihood enhancement
10 40.51 16.01 15.19 136.13 189.03
projects
Poverty, Eradicating
11 19.18 56.50 21.05 26.21 23.99
Hunger, Malnutrition
Rural development
12 83.79 145.70 108.85 176.61 233.42
projects
13 Safe drinking water 10.79 18.70 7.47 19.81 10.17
14 Sanitation 13.50 18.84 22.01 23.80 29.68
15 Senior Citizens Welfare 3.71 2.83 4.92 14.25 4.09
Setting up homes and
16 1.18 0.06 - 0.52 2.27
hostels for women
17 Setting up orphanage 0.11 0.24 2.29 3.72 0.43
18 Slum area development 0.44 1.47 0.09 0.53 0.54
19 Socio-economic equalities 0.46 1.51 1.08 1.48 7.66
20 Special education 1.15 2.18 1.14 2.80 3.61
21 Technology incubators 0.59 0.07 0.05 - 0.30
22 Training to promote sports 1.49 1.64 3.09 4.89 3.42
23 Vocational skills 3.94 16.00 27.35 46.45 59.69
24 Women empowerment 20.00 3.70 2.49 3.69 3.56
25 NEC/Not mentioned* 0.14 - - - -
Total 710.23 719.81 663.50 986.77 1,129.75
(Data upto 31.03.2025) (Source: Corporate Data Management Cell)
* Companies either did not specify the names of sectors or indicated more than one
sector where projects were undertaken.Annexure-II
Refer to part (a) of Lok Sabha Unstarred Question no. 1340 for 08.12.2025
District-wise CSR expenditure in Andhra Pradesh from FY 2019-20 to FY 2023-24
(Amount in Rupees Crore)
SL. Districts FY FY FY FY FY
No 2019-20 2020-21 2021-22 2022-23 2023-24
1 Alluri Sitharama Raju - - - 0.06 -
2 Anakapalli - - - 0.01 1.32
3 Ananthapuramu 12.06 7.88 23.61 50.88 31.51
4 Annamayya - - - 0.20 0.80
5 Bapatla - - - - 0.24
6 Chittoor 32.65 20.49 70.30 168.71 229.73
7 Dr. B.R. Ambedkar - - - - 0.10
Konaseema
8 East Godavari 18.16 28.92 26.64 151.83 238.37
9 Eluru - - - - -
10 Guntur 18.80 13.27 250.71 71.15 37.01
11 Kakinada - - - 0.06 0.11
12 Krishna 11.05 17.36 44.66 41.68 39.87
13 Kurnool 3.56 47.13 11.27 18.24 24.02
14 Nandyal - - - - 0.01
15 Ntr - - - 0.37 0.71
16 Palnadu - - - 0.39 0.12
17 Parvathipuram Manyam - - - - -
18 Prakasam 1.29 1.16 5.85 164.11 190.93
19 Sri Potti Sriramulu 30.84 26.24 29.33 79.46 71.90
Nellore
20 Sri Sathya Sai - - - 0.00 0.52
21 Srikakulam 2.91 1.64 7.06 17.04 23.88
22 Tirupati - - - 1.08 2.81
23 Visakhapatnam 27.58 56.40 99.25 125.12 114.04
24 Vizianagaram 4.29 2.76 5.58 24.80 18.68
25 West Godavari 10.32 11.35 14.56 19.53 34.60
26 Y.S.R. Kadapa 3.15 10.56 18.02 24.01 13.60
27 District not classified 533.57 474.65 56.65 28.03 54.88
elsewhere*
Total 710.23 719.81 663.50 986.77 1,129.75
(Data upto 31.03.2025) (Source: Corporate Data Management Cell)
*Companies either did not specify the name of the districts or indicated more than one
districts where projects were undertaken.