the cement, so the claim by APSHC and the circular offering use of the same did pose problems.
Since the CSR bill has become a law in August this year, many companies are scouring for ways to meet their annual obligations.
Companies with a net worth of Rs 500 crore or more and running a net profit of Rs 5 crore or more during the financial year are required to form a CSR committee with at least one independent director. The CSR spend of a company that meets the threshold is required to be 2 per cent of the average net profits for the preceding three financial years.
Tenders floated by APSHC
AP State Housing Corporation has floated tenders for supply of 10 lakh metric tonnes of cement for its weaker section housing programme from cement manufacturers “under their corporate social responsibility” obligations
* However, rules issued by the ministry of corporate affairs notes that CSR cannot be interpreted as the main business activity of a company
* The expenditure has to be over and above it but this tender shows companies can potentially claim a part of their business expenditure as CSR