|March 11, 2017||The CSR Journal|
The government today said show- cause notices have been issued to 1,018 firms for violating CSR norms under the companies law.
A Certain class of profitable companies have to shell out at least 2 per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities under the Companies Act, 2013.
In case of failure to spend the required amount, the companies concerned have to provide explanations to the government.
Minister of State for Corporate Affairs Arjun Ram Meghwal informed the Lok Sabha that show-cause notices have been issued to 1,018 companies for violation of CSR provisions during the 2014-15 period.
The CSR norms came into effect from April 1, 2014.
Based on data compiled by the Corporate Affairs Ministry, as many as 12,431 companies shelled out Rs 18,625 crore towards CSR activities in the last two financial years – 2014-15 and 2015-16.
In a written reply, Meghwal said 7,334 firms spent Rs 8,803 crore towards CSR works in 2014-15. Last fiscal, 5,097 companies shelled out Rs 9,822 crore towards such activities, he added.
"Various workshops/ seminars/ conferences are organised by the government for facilitating effective implementation of CSR provision of the Act by companies and professionals," the minister said.
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
Founded in 2014, The CSR Journal is a digital news platform. The portal monitors, and covers news and developments in the Corporate Social Responsibility (CSR) domain through a timely news reporting method. Our focus has been towards delivering readers with a one-stop credible platform for everything in and around CSR.