 bill no  27 of  2018 the companies (amendment) bill, 2018 by shri om birla, mp a billfurther to amend the companies act, 2013be it enacted by parliament in the sixty-ninth year of the republic of india as follows:—18 of 20132 in section 134 of the companies act, 2013 after sub-section (8), the following subsection shall be inserted, namely:—amendment of section 1345"(9) if the registrar of company after scrutinising the report provided under clause (o)of sub-section (3) finds it inappropriate, he shall pass an order directing the company to deposit a fine which shall not be less than the unspent amount marked by corporate social responsibility committee constituted under sub-section (1) of section 135 but which may extend upto twice of that amount and every officer who is in default shall be punishable with fine which may extend upto one thousand rupees for every day during which the default continues" statement of objects and reasonsthe companies act, 2013 has been the first law in the world which has provided for the mandatory social contribution to be made by the companies which had net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year for carrying out the corporate social responsibilities mandated by the act, the companies are required to constitute a corporate social responsibility committeewhile the companies act, 2013 in section 135 provides for the general prerequisites associated with the corporate social responsibilities and directs that the board provides for a report as per clause (o) of sub-section (3) of section 134 citing reasons for failure in nonexpenditure of amount earmarked for carrying corporate social responsibility the companies act, 2013 fails to carry out the intention behind insertion of section 135 as it doesn't contain any provision as to the penalty for this default even the courts shy away from imposing any penalty due to the absence of sub provision, this mandatory social contribution has been reduced to dead letters the same was also pointed out by the committee on public undertakings in its december 2015 report titled 'corporate social responsibilityin select central public sector undertakings (cpsus)'hence this amendment has been introduced for effective implementation of the corporate social responsibility regime in indian environmenthence this billnew delhi;om birlanovember 30, 2017 annexure extract from the  companies act, 2013 (18 of  2013)134 (1)   financial statement, board's report, etc(3) there shall be attached to statements laid before a company in general meeting, a report by its board of directors, which shall include—(a)   (o) the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year;   (8) if a company contravenes the provisions of this section, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and  every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with bothcorporate social responsibility135 (1) every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a corporate social responsibility committee of the board consisting of three or more directors, out of which at least one director shall be an independent director lok sabha———— a billfurther to amend the companies act, 2013————(shri om birla, mp)mgipmrnd—3630ls(s3)—30-01-2018