New Delhi – L&T Technology Services Ltd spent 1.45% of its profit after tax (PAT) on corporate social responsibility initiatives in 2018-19 (Apr-Mar), it said in its annual report.
The prescribed budget for spending on CSR during the period stood at Rs 10.27 crore out of which the company spent 10.13 cr.
Amount of Rs 14 lakh remained unspent due to delays in implementation for which activities will be planned in FY20, in addition to the prescribed CSR expenditure of the financial year.
The CSR initiatives were under taken in sectors including education, skill building, healthcare, water conservation, protection & restoration of public places and sports for disabled.
The Indian Parliament in July passed amendments to the Companies Act invite a three-year jail term and a penalty of Rs 50,000 to Rs 5 lakh or both for company executives and a penalty between Rs 50,000 and Rs 25 lakh for its employers for breach of the CSR rules.
After a lot of criticism and concerns expressed by the corporates and NGOs, the government put on hold the amendments related to CSR.
The companies are required to spend at least 2% of the amount of the net profit for the last 3 financial years under the Companies Act.
The Act 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 policy which became effective from 1 April 2014, mandates those companies for CSR activity which have net worth of Rs 500 crore or more; or turnover of Rs 1,000 crore or more; or net profit of Rs 5 crore or more during any financial year.