Details about companies’ social welfare spending activities under CSR norms would be available to the government only after September next year.
This was informed by Corporate Affairs Minister Arun Jaitley while replying in the House to queries on CSR.
Under the new Companies Act, certain class of entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
CSR norms came into force from April 1, 2014. “The Details about the expenditure incurred by the companies under CSR would be available to Ministry of Corporate Affairs only after the mandatory disclosures of CSR spendings are made by companies, which would be due within six months after completion of financial year 2014-15 i.e. after September 2015,”
Further, also that the monitoring and implementation of CSR policy lies with the board of a company, the Minister said audit under the Companies Act would also provide an effective monitoring of CSR works.
Above all, this practice would act as a value enhancer for the corporates which would lead them in a flourishing position thereby improving the Goodwill and long term sustainability.
