The ministry of corporate affairs had released voluntary guidelines on CSR during the India Corporate Week organised in December last year.
R Bandyopadhyay, secretary, MCA said, The ministry is in the process of designing an e-form under MCA-21 which will enable the corporates to file their CSR report on the portal of the ministry. The availability of these reports at a single place will enable the ministry to take policy decisions on this front and also to showcase the responsible business practices of Indian corporate sector to the whole world.
An MCA official told FE, A number of corporates have stated that they would like to have an effective framework for reporting their responsible business practices. Keeping in view this feedback, MCA has started working on this.
According to a ministry of corporate affairs report on voluntary corporate social responsibilities, companies should allocate a specific amount in their budget for CSR activities that may be related to profits after tax, cost of planned CSR activities and any other suitable parameters.
The report suggests that the CSR policy of the business entity should provide for an implementation strategy that should include identification of projects, time schedule and monitoring, setting measurable physical targets with time-frame, organisational mechanism and responsibilities.