Government Sets Up Panel To Review CSR Framework Under Companies Act
Few class of profitable entities are required to shell out at least 2% of their 3-year average annual net profit for CSR events.
A high-level panel will review the existing framework for corporate social responsibility activities under the companies law, according to an official release the Ministry of Corporate Affairs. The panel will be chaired by Corporate Affairs Secretary Injeti Srinivas.
Additional Solicitor General PS Narasimha, Tata Sons Chairman N Chandrasekaran, Arjuna awardee Prakash Padukone, and chairman or representative of the Securities and Exchange Board of India are part of the 11-member committee.
Certain class of profitable entities are required to shell out at least 2 percent of their three-year average annual net profit towards CSR activities under the Companies Act, 2013. The provision came into force from April 1, 2014.
The panel would review the existing framework and guide and formulate the roadmap for a coherent policy on CSR.
The committee will analyse outcomes of CSR activities/ programmes/ projects and suggest measures for effective monitoring and evaluation of CSR by companies. Suggestions are also expected on innovative solutions, use of technology, platform to connect stakeholders, and social audit.Ministry of Corporate Affairs
The four years of implementation have enabled compilation of data on the number of companies complying with CSR provisions, funds spent across various sectors, and geographical spread of spending, the ministry said.
“Experience has also been gained on the quantum, outreach and impact of CSR (which is estimated to be around Rs 38,000 crore up to FY 2016-17) and immense feedback has been received on how CSR provisions can be leveraged to have larger and more impactful outcomes,” the release added.
Bain Capital Private Equity’s managing director Amit Chandra, Helpage India chief Mathew Cherian, IIM-Ahmedabad professor Anil K Gupta, Director General of the Indian Institute of Corporate Affairs, consultant S Santhanakrishnan and a joint secretary from the ministry are also part of the panel.