The government does not micromanage CSR activities carried out by corporates under the companies law, Union Minister Piyush Goyal told the Lok Sabha. Under the Companies Act, 2013, a certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) works. Responding to supplementaries during the Question Hour, Corporate Affairs Minister Piyush Goyal said the government does not "micromanage" CSR activities. As per the law, a company has to constitute a CSR committee of its board and that would decide on the activities to be taken up. "Whenever violation of CSR provision is reported, the Registrar of Companies initiates action against such non-compliant companies after due examination of records," Goyal said. For fiscal 2014-15, the prosecution against 254 companies was sanctioned out of which 33 companies have filed applications for compounding, he added. The ministry has also set up a Centralised Scrutiny and Prosecution Mechanism on a pilot basis for enforcement of CSR provisions.