CORPORATES
The primary purpose of Corporate Social Responsibility philosophy is to make a meaningful and measurable impact in the lives of economically, physically and socially challenged communities of the country through an integrated approach of development focusing on creating sustainable livelihoods, financial inclusion and literacy, environmental sustainability, education and skill development, and creating awareness amongst the public at large on topics of public interest. Contact us now to find out more!
Companies Act, 2013
The laws governing CSR come under the Companies Act, 2013, and became effective on 1 April, 2014. These laws state that companies with a net worth of INR 500 crore or revenue of INR 1,000 crore or net profit of INR 5 crore during the immediately preceding fiscal should spend 2% of their average net profit in the last three years on activities related to social development such as sanitation, education, eradication of hunger, poverty and malnutrition, conservation of heritage, art and culture, and vocational training such as setting up grooming outlets or training centres for sewing.
Latest Amendments
Before the recent amendment, if a company fails to fully incur the CSR funds in a given year, it was allowed to carry the remaining funds and spend it in the next 12 months along with the money allocated for that year. However, with the new changes, any such remaining amounts will have to be deposited into an escrow account within 30 days of the end of that fiscal. From the time of transfer till the next three years, this amount will have to spent, failing which it would be put into a Fund, that could even be the Prime Minister's Relief Fund. The government also plans to penalize under the Companies Act of non-compliance of CSR.
Things to Know
Read some of these interesting reports below before beginning your CSR project!
