There
is no provision for Corporate Social Responsibility (CSR) spending by companies
in the present company law i.e. Companies Act, 1956. However, the new Companies
Bill, 2012 has a provision of CSR under Clause 135 which states that every
company having net worth of Rs. 500 crore or more, or turnover of Rs. 1000
crore or more or net profit of rupees five crore or more during any financial
year, shall constitute a CSR Committee to recommend its activities for
discharging CSR in such a manner that the company would spend at least 2 per
cent of its average net profits of the previous three years on CSR activities.
Giving this information in written reply to a question in the Lok Sabha, Shri
Sachin Pilot, Minister of Corporate Affairs, said that the companies will have
latitude in designing project based CSR interventions. Reporting requirements
etc. will be discussed with all stakeholders and defined once the Bill is
enacted, the Minister said.
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