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Home Corporate Governance

Listed Cos spend together 83% of the overall prescribed amount

India CSR by India CSR
in Corporate Governance, CSR Leaders, Prime
Reading Time: 1 min read
India CSR
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New Delhi – Listed companies have spent around 83% of the money allocated by them for the CSR (Corporate Social Responsibility) initiatives leaving 17% of the unused funds.

A media report said that unspent amount has been on the decline over the years.

The government has now introduced changes that will reportedly require companies to transfer CSR funds to a ring-fenced escrow account, and then transfer the unspent amount to a government fund. The move is to utilise the money deposited in the government fund for public welfare.

The government is also considering the option to punish to punish directors of the companies who are found to have not spend the amount as mandated under the Companies Act.

The Companies Act 2013 prescribes 17 areas of CSR activity in Schedule VII of the act. Section 135 of the Act lays down rules for CSR activity in India. The companies are required to spend at least 2% of the amount of the net profit for the last 3 financial years.

The policy which became effective from 1 April, 2014, mandates those companies for CSR activity which have net worth of 5 billion rupees or more; or turnover of 10 billion rupees or more; or net profit of 50 million rupees or more during any financial year.

Another media report said that almost 47 % of the companies do not spend as per the prescribed limit.

Tags: 2013Companies ActCorporate Governance in INDIACorporate Social ResponsibilityListed Companies

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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