As corporates start making their annual statutory filings, the government-appointed expert panel is expected to finalise next month its suggestions for better monitoring of CSR under the new companies law.
Under the Corporate Social Responsibility (CSR) regime — that came into effect on April 1, 2014 — certain class of profitable companies have to shell out at least 2 per cent of their three-year annual average net profit towards social welfare activities.
Interestingly, nearly two-third of the top listed firms have failed to make the minimum 2 per cent CSR spend in the first year (2014-15 fiscal).
To put in place measures for proper monitoring of compliance with CSR regulations, a six-member panel was set up by the Corporate Affairs Ministry in February.
Sources said the expert panel is expected to finalise its report next month.
The committee met with various stakeholders, including corporates, to gather their views on overall CSR regime and measures that can be put in place to monitor effective implementation of these policies, sources added.
So far, the committee has held at least seven meetings.
The panel, chaired by former Home Secretary Anil Baijal, would suggest “measures for improved monitoring of the implementation of CSR policies by the companies”.
It would also suggest measures to be recommended by the government for “adoption by the companies for systematic monitoring and evaluation of their own CSR initiatives”.
Besides, the panel would identify strategies for monitoring and evaluation of CSR initiatives through expert agencies and institutions to facilitate “adequate feed back to the government with regard to the efficacy of CSR expenditure and quality of compliance” by the companies.
Among others, the committee would also look at whether a different monitoring mechanism is required for government companies undertaking CSR works. If it is found necessary, then necessary suggestions would be made.
If the eligible companies had complied with the 2 per cent CSR spending norms, then the total expenditure would have been Rs 14,000 crore in last fiscal, as per estimates.
This article was taken from here.