Nearly 400 companies together shelled out about Rs 5,857 crore towards corporate social responsibility (CSR) activities in two years, Parliament was informed today. Under the Companies Act, 2013, a certain class of profitable companies is required to spend at least 2 per cent of their three-year annual average net profit towards CSR works in a fiscal. The norm came into effect on April 1, 2014.
An assessment of CSR expenditure of 172 companies indicates that these firms spent Rs 3,360 crore in 2015-16 against the mandated Rs 2,660 crore on such activities, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Rajya Sabha.
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In 2014-15, 226 companies spent a total of Rs 2,497 crore, less than the mandated amount of Rs 3,499 crore, on CSR activities.
In a separate reply, Meghwal said the ministry has not been informed of any malpractices by companies while implementing their CSR policies.
To facilitate effective implementation of CSR activities by the companies, the government has issued frequently asked questions and organised workshops.