Rule 2 Definitions
- Chapter
- I · Preliminary
- Text as on
- 14 August 2026
2. Definitions. - (1) In these rules, unless the context otherwise requires,-
(a) "ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013)" means the Companies ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013), 2013 (18 of 2013);
(b) "Administrative overheadsDefined in rule 2: expenses incurred by the company for general management and administration of CSR functions, but excluding expenses directly incurred for the designing, implementation, monitoring and evaluation of a particular CSR project or programme." means the expenses incurred by the company for 'general management and administration' of Corporate Social Responsibility functions in the company but shall not include the expenses directly incurred for the designing, implementation, monitoring, and evaluation of a particular Corporate Social Responsibility project or programme;
(c) "AnnexureDefined in rule 2(c): Annexure means the Annexure appended to these rules" means the AnnexureDefined in rule 2(c): Annexure means the Annexure appended to these rules appended to these rules;
(d) "Corporate Social Responsibility (CSR)Defined in rule 2(d): Corporate Social Responsibility (CSR) means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act in accordance with the provisions contained in these rules, but shall not include the following, namely: (i) activities undertaken in pursuance of normal cou..." means the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013) in accordance with the provisions contained in these rules, but shall not include the following, namely:-
(i) activities undertaken in pursuance of normal course of business of the company:
Provided that any company engaged in research and development activity of new vaccine, drugs and medical devices in their normal course of business may undertake research and development activity of new vaccine, drugs and medical devices related to COVID-19 for financial years 2020-21, 2021-22, 2022-23 subject to the conditions that
(a) such research and development activities shall be carried out in collaboration with any of the institutes or organisations mentioned in item (ix) of Schedule VII to the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013);
(b) details of such activity shall be disclosed separately in the Annual report on CSR included in the Board's Report;
(ii) any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level;
(iii) contribution of any amount directly or indirectly to any political party under section 182 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013);
(iv) activities benefitting employees of the company as defined in clause (k) of section 2 of the Code on Wages, 2019 (29 of 2019);
(v) activities supported by the companies on sponsorship basis for deriving marketing benefits for its products or services;
(vi) activities carried out for fulfilment of any other statutory obligations under any law in force in India;
(e) "CSR CommitteeDefined in rule 2(e): CSR Committee means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act" means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013);
(f) "CSR PolicyDefined in rule 2(f): CSR Policy means a statement containing the approach and direction given by the board of a company, taking into account the recommendations of its CSR Committee, and includes guiding principles for selection, implementation and monitoring of activities as well as formulation of the annual action plan" means a statement containing the approach and direction given by the board of a company, taking into account the recommendations of its CSR CommitteeDefined in rule 2(e): CSR Committee means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act, and includes guiding principles for selection, implementation and monitoring of activities as well as formulation of the annual action plan;
(g) "International OrganisationDefined in rule 2(g): International Organisation means an organisation notified by the Central Government as an international organisation under section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply" means an organisation notified by the Central Government as an international organisationDefined in rule 2(g): International Organisation means an organisation notified by the Central Government as an international organisation under section 3 of the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), to which the provisions of the Schedule to the said Act apply under section 3 of the United Nations (Privileges and Immunities) ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013), 1947 (46 of 1947), to which the provisions of the Schedule to the said ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013) apply;
(h) "Net profitDefined in rule 2(h): Net profit means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely: (i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; a..." means the net profitDefined in rule 2(h): Net profit means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely: (i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; a... of a company as per its financial statement prepared in accordance with the applicable provisions of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013), but shall not include the following, namely: -
(i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; and
(ii) any dividend received from other companies in India, which are covered under and complying with the provisions of section 135 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013):
Provided that in case of a foreign company covered under these rules, net profitDefined in rule 2(h): Net profit means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely: (i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; a... means the net profitDefined in rule 2(h): Net profit means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely: (i) any profit arising from any overseas branch or branches of the company, whether operated as a separate company or otherwise; a... of such company as per profit and loss account prepared in terms of clause (a) of sub-section (1) of section 381, read with section 198 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013);
(i) "Ongoing ProjectDefined in rule 2: a multi-year project undertaken by a company in fulfilment of its CSR obligation, having a timeline not exceeding three years excluding the year of commencement." means a multi-year project undertaken by a Company in fulfilment of its CSR obligation having timelines not exceeding three years excluding the financial year in which it was commenced, and shall include such project that was initially not approved as a multi-year project but whose duration has been extended beyond one year by the board based on reasonable justification;
(j) "Public AuthorityDefined in rule 2(j): Public Authority means 'Public Authority' as defined in clause (h) of section 2 of the Right to Information Act, 2005 (22 of 2005)" means 'Public AuthorityDefined in rule 2(j): Public Authority means 'Public Authority' as defined in clause (h) of section 2 of the Right to Information Act, 2005 (22 of 2005)' as defined in clause (h) of section 2 of the Right to Information ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013), 2005 (22 of 2005);
(k) "sectionDefined in rule 2(k): section means a section of the Act. (2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act. in Schedule VII of the Act." means a sectionDefined in rule 2(k): section means a section of the Act. (2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act. in Schedule VII of the Act. of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013).
(2) Words and expressions used and not defined in these rules but defined in the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013) shall have the same meanings respectively assigned to them in the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013).
in Schedule VII of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013).