The government has taken this step keeping in mind the provision of CSR under Clause 135 of the new Companies Bill, 2012, which states that every company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more or net profit of rupees five crore or more during any financial year, shall constitute a CSR Committee to recommend its activities for discharging CSR in such a manner that the company would spend at least 2 per cent of its average net profits of the previous three years on CSR activities.
There is no provision for Corporate Social Responsibility (CSR) spending by companies in the present company law i.e. Companies Act, 1956.
The companies will have latitude in designing project based CSR interventions. Reporting requirements etc. will be discussed with all stakeholders and defined once the Bill is enacted, the Minister said.
Dion Global Solutions Ltd.