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Economy
Mahesh

27/09/22 13:33 PM IST

Centre revises CSR rules

In News 
  • The ministry of corporate affairs has amended the rules for calculating the cost of conducting social impact assessments of corporate social responsibility (CSR) activities and the procedure for dealing with unspent CSR funds of companies.
New Rules 
  • Unspent CSR amount must be utilized within 3 years
  • Mandatory constitution of CSR committee to implement CSR works
  • Amount Spent for Social Impact Assessment (SIA) to not exceed 2.5% of total CSR or Rs 50 lakh
  • SIA has been made mandatory for businesses with Rs 10cr or more CSR budget or for projects with an outlay of Rs 1 cr or more
  • Transparency: Companies are to disclose the composition of the CSR Committee and CSR policy on the company website.
About CSR 
  • It is a corporate initiative to assess and take responsibility for the company’s effects on the environment and on social welfare.
  • The rules in Section 135 of India’s Companies Act 2013 make it mandatory for companies (with an annual turnover of 1,000 crores and more, or a net worth of Rs. 500 crores and more, or a net profit of Rs. 5 crores and more) to spend 2% of their average net profit for the past three years on CSR.
  • India is the first country in the world to mandate CSR spending along with a framework to identify potential CSR activities.
Source- Live Mint 

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