Nearly 400 companies together shelled out about Rs 5,857 crore towards corporate social responsibility (CSR) activities in two years, Parliament was informed on Tuesday.
Under the Companies Act, 2013, a certain class of profitable companies is required to spend at least two per cent of their three-year annual average net profit towards CSR works in a financial year. The norm came into effect on April 1, 2014.
An assessment of CSR expenditure of 172 companies indicates that these firms spent Rs 3,360 crore in 2015-16 against the mandated Rs 2,660 crore on such activities, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Rajya Sabha
In 2014-15, 226 companies spent a total of Rs 2,497 crore, less than the mandated amount of Rs 3,499 crore, on CSR activities.
In a separate reply, Meghwal said the ministry has not been informed of any malpractices by companies while implementing their CSR policies.
To facilitate effective implementation of CSR activities by the companies, the government has issued frequently asked questions and organised workshops.
Thank you for reading the story until the very end. We appreciate the time you have given us. In addition, your thoughts and inputs will genuinely make a difference to us. Please do drop in a line and help us do better.
The CSR Journal Team