Premature to say if cos are avoiding CSR spend: Govt

Tags: News
The government today said it would be premature to form any opinion at this stage on whether companies are resorting to tactics to avoid CSR spending.

Under the new companies law, certain class of profitable entities are required to shell out at least 2 per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.

Minister of State for Corporate Affairs Nirmala Sitharaman told the Lok Sabha that companies are at a preliminary stage of implementing the CSR norms since they have come into effect only from April 1 this year.

"It will be premature at this stage to form any opinion about any company resorting to tactics to avoid this statutory responsibility," she said in a written reply.

The minister was responding to a query on whether the government has taken note of clandestine modalities being adopted by companies to escape from making CSR spend.

Sitharaman further said: "Similarly, issues like expenditures incurred by companies on CSR and shortfalls, if any, could also be addressed after the first year is over and statutory returns are available with the Ministry of Corporate Affairs."

With regard to monitoring on companies' compliance with provisions of the Act, she said the main mechanism would be statutory audits.

"The main monitoring mechanism envisaged under the Companies Act is through observations of statutory audit for which the Institute of Chartered Accountants (ICAI) is developing 'guidance notes' so that auditors could adequately examine this issue," Sitharaman noted.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture