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Rediff.com  » Business » No objection from cos on CSR norms in Companies Bill: Govt

No objection from cos on CSR norms in Companies Bill: Govt

November 26, 2012 15:54 IST

The Corporate Affairs Ministry on Monday said it has not received any objection from the companies to the provision of spending of at least 2 per cent of net profit on corporate social responsibility (CSR) activities in the Companies Bill.

"The ministry has not received any communication from any company expressing reservations/objections about the provision (CSR in Companies Bill)," Corporate Affairs Minister Sachin Pilot informed the Rajya Sabha in a written reply.

"Clause 135 of the Companies Bill, 2011, interalia provides for the Boards of specified companies to spend at least 2 per cent of the average net profits (of last 3 years) in pursuance of the company's Corporate Social Responsibility (CSR) policy," the minister said.

The provision also states that if a company is unable to spend the said amount on CSR, it would have to give the reasons for the same in its board's report, he added.

The minister said that the Parliamentary Standing Committee on Finance, which examined the Companies Bill 2009 and the Companies Bill, 2011, has recommended inclusion of these provisions.

"The provisions on CSR in the Companies Bill, 2011, were formulated also keeping in view the suggestions received from various stakeholders," he said.

To a question regarding funds allocated for Scheduled Caste Sub Plan (SCSP) and Tribal Sub Plan (TSP) during last five financial years, the minister said that as the government does not have any scheme relating to the same "no funds are provided for these sub plans".

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