CSR spending details to be available for govt after Sep 2015

Under the new Companies Act, certain class of profitable entities are required to shell out at least 2% of their three-year annual average net profit towards CSR activities

Details about companies' social welfare spending activities under CSR norms would be available to the government only after September next year.

This was informed by Corporate Affairs Minister Arun Jaitley while replying in the Lok Sabha to queries on CSR.

Under the new Companies Act, 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) activities.

CSR norms came into force from April 1.

"Details about the expenditure incurred by the companies under CSR would be available to Ministry of Corporate Affairs only after the mandatory disclosures of CSR expenditures are made by companies, which would be due within six months after completion of financial year 2014-15 ie after September 2015," Jaitley said in a written reply.

Noting that monitoring and implementation of CSR policy lies with the board of a company, the Minister said audit under the Companies Act would also provide an effective monitoring of CSR works.

In a separate reply, Jaitley said amendments to the new Act would be considered only if various other measures prove insufficient.

The Ministry, which is implementing the Act, has received several communications about practical difficulties with regard to some provisions of the legislation.

After an interactive session with stakeholders on June 21, Jaitley said a number of points got resolved.

"Points have also been identified for elaboration through orders under Section 470 of the Act relating to removal of difficulties, amendments in certain rules and through issue of clarificatory circulars and suitable exemptions.

"Four draft notifications under Section 462 of the Act have been tabled in Parliament for a month," he noted.

Further, circulars have been issued to provide greater clarity.

"The question of amending the Act would be considered in case the above measures prove insufficient," Jaitley said.