Under Section 135 of the Companies Act, 2013, companies meeting certain financial thresholds are mandated to allocate a portion of their profits towards Corporate Social Responsibility (CSR) activities. These activities must align with the areas specified in Schedule VII of the Act. The Ministry of Corporate Affairs (MCA) has emphasized that CSR expenditures should be directed towards activities enumerated in Schedule VII. However, the MCA also advises that the items listed in Schedule VII should be interpreted liberally to capture the essence of the subjects enumerated. ​

In summary, while CSR funds should be utilized for activities specified in Schedule VII, the schedule’s broad scope allows for a liberal interpretation to encompass a wide range of related activities.