CSR

[Kasturi Prasad]

Dear Friends,

When strictly read, the provisions of Companies Act 2013 does not make contribution to CSR activities mandatory on the part of the company.  Directors are required to give reasons for not spending in their Report if not spent.

Please guide me with your opinion on the following.

1.  Is there any penal provisions under the Act for not spending?  I know not giving reason in the Directors' Report is a non-compliance which may attract penal provisions.

2.  Is there any standard to measure if the reason given by Directors in their report are acceptable or not?  Who / which officer can question the reason?  

3.  Which department / legal body / officer has the authority to question the company for non-contribution?

Please help.  If this subject is already discussed in the group, kindly forward the concerned email for my help.

Thanks

Kasturi S

[VIMAL SHARMA Compliance]

Government panel to suggest ways to monitor CSR works

PTI Feb 4, 2015, 12.44PM IST

Tags:

• CSR|
• Corporate Affairs Ministry|
• Arun Jaitley

• 

(High level committee would…)

NEW DELHI: The government has set up a high level panel to suggest a framework to assess CSR activities done by corporates under the companies law.

Certain class of profitable companies are required to shell out at least 2 per cent of their three-year average annual net profit towards Corporate Social Responsibility (CSR) activities.

Sources said the high level committee would work on a framework for assessing the CSR works, including money spent on such activities, by corporates.

The panel, headed by former Home Secretary Anil Baijal, would have members from industry and academia, among others.

The report of the panel is expected in six months. Corporate Affairs Ministry is implementing the Companies Act, 2013 and CSR norms were introduced for the first time under this legislation. Most provisions of this law, including CSR regulations, came into force from April 1, 2014.

In December, Corporate Affairs Minister Arun Jaitley said the government has taken a decision "in principle to constitute a high level committee to suggest measures for proper assessment and progress of CSR initiatives by companies including government companies".

Going by estimates, about Rs 14,000 crore is expected to be spent towards CSR activities by companies in the current fiscal.

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Thanks & Regards,

Vimal Sharma

Move out of your comfort zone, You can only grow, if you are willing to feel awkward and uncomfortable, when you try something New..

[Kasturi Prasad]

Hi Vimal,

Thanks for sharing the article.  

Thus the government measures in this regard are still in pipeline.

Regards,

Kasturi S

[VIMAL SHARMA Compliance]

Yes.. I think they will not unless get Board report of Companies for FY 2014-15