Under the Companies Act, 2013, a certain class of profitable companies is required to spend at least 2 per cent of their three-year annual average net profit towards CSR works in a fiscal. The norm came into effect on April 1, 2014.
Companies spent about Rs 476 crore towards ‘Swachh Bharat Kosh’ as part of their corporate social responsibility (CSR) in two years, Parliament was informed recently.
In addition, companies spent a total of Rs 21 crore towards Clean Ganga Fund in 2014-15 and 2015-16.
Under the Companies Act, 2013, a certain class of profitable companies is required to spend at least 2 per cent of their three-year annual average net profit towards CSR works in a fiscal. The norm came into effect on April 1, 2014.
An assessment of CSR expenditure of 5,097 firms indicates that these companies spent Rs 355 crore in 2015-16 towards ‘Swachh Bharat Kosh’, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Lok Sabha.
In 2014-15, a total of 7,334 companies spent Rs 121 crore towards such activities.
The funds were used for achieving the objective of improving cleanliness levels in rural and urban areas including schools.
On a query, whether there has been any structured study on the impact of enforcement of the Act pertaining to CSR, Meghwal said the ministry does not propose to undertake any such study at present.
This article was taken from here.