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