Govt plans detailed FAQs on CSR issues

To help companies for their social welfare activities under the new legislation, the government plans to come out with various initiatives including a detailed set of 'Frequently Asked Questions' (FAQs) for the stakeholders.
Certain class of companies are now required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
The Corporate Affairs Ministry plans to put out detailed FAQs and their answers on CSR activities to provide more clarity for companies and other stakeholders, according to an official.
The FAQs would be prepared after collating queries from various quarters, including industry chambers, on implementing CSR activities and the same is planned to be put out on the Ministry website, the official added.

Besides the Indian Institute of Corporate Affairs (IICA) is working on efforts such as certificate programme in CSR, sources said.
IICA comes under the Corporate Affairs Ministry.

Apart from having certificate courses to help train professionals with their companies' CSR initiatives, the institute is looking to have a list of projects that could be taken up by entities as CSR work, sources said.
Under the Companies Act, 2013, CSR activities would have to be carried within India. It would be applicable to corporates having at least Rs 5 crore net profit, or Rs 1,000 crore turnover or Rs 500 crore net worth.

Such companies would need to spend two per cent of their three-year average annual net profit on CSR activities in each financial year, beginning 2014-15 fiscal. In case they are unable to spend the required amount, reasons for the same have to be given to the Ministry.
As per the new rules, livelihood enhancement and rural development projects, working towards protection of national heritage, art and culture, including restoration of buildings and sites of historical importance and works of art, setting up public libraries, promotion and development of traditional arts and handicrafts would come under CSR ambit.
Activities aimed at reducing inequalities faced by socially and economically backward groups, measures for the benefit of armed forces veterans, war widows and their dependents, setting up homes and hostels for women and orphans, setting up of old age homes, day care centres and such other facilities for senior citizens, among others, have been included under this category.