Introduction to CSR Consultancy in India
Corporate Social Responsibility (CSR) in India is governed by Section 135 of the Companies Act, 2013, making it mandatory for eligible companies to spend a portion of their profits on social development activities.
CSR consultancy plays a crucial role in ensuring legal compliance, effective project implementation, transparent reporting, and measurable social impact for both companies and NGOs.
This Saving Mantra guide explains the step-by-step CSR consultancy process in India, including Section 135 compliance, CSR project lifecycle (planning–execution–reporting), CSR audit, and impact assessment.
What Is CSR Consultancy?
CSR consultancy is a professional service that helps:
- Companies comply with CSR legal requirements
- NGOs become CSR-ready and eligible for funding
- Design, execute, and monitor CSR projects
- Ensure proper reporting, audit, and impact measurement
It bridges the gap between corporates, NGOs, and regulatory authorities.
Applicability of CSR under Section 135
CSR provisions apply to companies having:
- Net worth of ₹500 crore or more, or
- Turnover of ₹1,000 crore or more, or
- Net profit of ₹5 crore or more
Such companies must spend at least 2% of average net profits on CSR activities listed under Schedule VII.
Key CSR Compliance Requirements
- Formation of CSR Committee (where applicable)
- CSR Policy drafting and approval
- CSR-1 registration of implementing NGOs
- Annual CSR reporting to the Ministry of Corporate Affairs (MCA)
- Impact assessment for large CSR projects
Step-by-Step CSR Consultancy Process in India
Step 1: CSR Applicability & Compliance Assessment
CSR consultants evaluate:
- Applicability under Section 135
- CSR spending obligations
- Existing compliance gaps
- NGO eligibility and readiness
This forms the compliance foundation.
Step 2: CSR Strategy & Planning
Planning includes:
- Identification of CSR focus areas (Schedule VII)
- Alignment with company vision and ESG goals
- Budget allocation and timelines
- Partner NGO shortlisting and due diligence
Step 3: CSR Project Design
CSR project planning involves:
- Defining project objectives and outcomes
- Beneficiary identification
- Activity-wise budgeting
- Risk assessment and mitigation
- KPI and impact indicators
Well-designed projects ensure long-term impact.
Step 4: CSR Project Execution
Execution support includes:
- Fund deployment monitoring
- NGO coordination and governance
- On-ground implementation review
- Compliance with utilization norms
Consultants ensure transparency and efficiency.
Step 5: CSR Reporting & Documentation
Mandatory reporting includes:
- Board Report disclosures
- Annual CSR report formats
- Utilization certificates
- NGO performance reports
Accurate reporting avoids penalties and scrutiny.
Step 6: CSR Audit & Compliance Review
CSR audit ensures:
- Proper utilization of CSR funds
- Compliance with Section 135 & CSR Rules
- Financial accuracy and documentation
- Governance and internal control review
Audit readiness is critical for corporates.
Step 7: CSR Impact Assessment
Impact assessment is mandatory when:
- CSR obligation ≥ ₹10 crore
- Individual project value ≥ ₹1 crore
- Project duration ≥ 1 year
Assessment includes:
- Social and environmental impact analysis
- Outcome measurement against KPIs
- Independent assessment reports
CSR Consultancy for NGOs
CSR consultants help NGOs with:
- CSR-1 registration
- 12AB and 80G compliance
- Project proposal and budgeting
- Impact reporting and documentation
- Corporate engagement readiness
CSR Consultancy for Companies
For companies, CSR consultancy covers:
- Section 135 compliance
- CSR policy drafting
- NGO due diligence
- Project monitoring and reporting
- Audit and impact assessment support
Common CSR Compliance Challenges
- Improper NGO selection
- Weak project documentation
- Delayed or inaccurate reporting
- Non-compliance with Schedule VII
- Inadequate impact measurement
Professional consultancy minimizes these risks.
How Saving Mantra Delivers CSR Consultancy
Saving Mantra provides end-to-end CSR consultancy services, including:
- Section 135 applicability & compliance
- CSR strategy and project planning
- NGO onboarding & due diligence
- CSR execution monitoring
- CSR audit and impact assessment
- MCA reporting and documentation
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. CSR provisions under the Companies Act and related rules are subject to change. Readers are advised to consult qualified professionals before implementing CSR strategies or projects. Saving Mantra shall not be responsible for decisions taken based on this content.