India CSR News Network
CHANDIGARH: It has reported that, When it comes to Corporate Social Responsibility (CSR) spending, the region-based companies, especially those in Chandigarh and Punjab, are a little bit hesitant, as the companies give flimsy excuses for not meeting their legally mandated obligations.
The reasons included lesser funds for the adoption of CSR projects. Out of the total 115 companies identified, only 30 of them have sent compliance report to the authority.
At present, under the Companies Act 2013, the Rules on CSR state that every company having a net worth of Rs 500 crore or having a turnover of Rs 1,000 crore or making a net profit of Rs 5 crore during a financial year shall ensure that at least 2% of the average net profits made during the three immediately preceding financial years is spent on CSR.
The Registrar of Companies, Chandigarh, has written letters to the corporate sector, asking them to furnish details of CSR spending. It has identified 115 corporates where the provisions of CSR are applicable.
Sources said, “Out of the total, only 30 corporate have sent their compliance report.”
On being asked about the other corporates who are yet to submit the compliance report, he said, “Some of the corporates have replied stating that the CSR provisions are not applicable to them while a majority of them said that they had funds but not enough to undertake CSR activities. The companies also said once the corpus of funds becomes big, they will go for CSR spending.”
The sources added that the Registrar of Companies was examining the case and would decide the future course of action.
(The Tribune, Chandigarh)