HYDERABAD: The companies in Telangana have to shell out an approximate amount of Rs 1,200 crore towards Corporate Social Responsibility, Telangana Registrar of Companies Josekutty VE has said. There are more than 1,000 companies in the State that fall under CSR compliance, the Registrar said, and as per the latest balance sheet, these companies earn a net profit of around Rs 67,000 crore.
“Around 300 companies alone earn a profit of Rs 60,000 crore. These companies have to spend approximate Rs 1,200 crores to spend for CSR and this will lead to inclusive developments in Telangana State with Corporate Contribution,” he said.
While speaking at a seminar on ‘Corporate Social Responsibility Overview – Regulatory and Tax Aspects’, organised by Federation of Telangana Chambers of Commerce and Industry, he said that there is no change in CSR criteria, but where the amount to be spent by a company does not exceed Rs 50 lakh, the requirement of constituting the CSR committee shall not be applicable, and the functions of the CSR committee shall be discharged by the Board of Directors of that Company.
“The board is now expected to be more responsible as far as compliance is required. Under these provisions, a company can spend the CSR amount in two ways- one is for ongoing projects, and the other is for short-term projects,” Josekutty added. (Source: New Indian Express)