(Last Updated On: December 11, 2015)
Welfare activities under the Corporate Social Responsibility (CSR) and the Companies Act, 2013
The provisions of Corporate Social Responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules made thereunder have come into force with effect from 01.04.2014. The year 2014-15 was the first year of implementation of CSR policies by companies under the legislation. The Board of the company, eligible to comply with the CSR provisions of the Act, is mandated to make annual disclosure on CSR in the Board’s report. The companies are still in the process of filing their Annual Reports with the Ministry. Details of companies complying with CSR provisions of the Act for the financial year 2014-15, are expected to be available after requisite filings are made by companies.
The Ministry of Corporate Affairs has not received any specific complaint regarding misuse of CSR funds by companies. Further, Department of Public Enterprises have informed that no complaints regarding misuse of funds by Central Public Sector Enterprises have come to their notice.
The provisions for non-compliance of Section 135 of the Act are prescribed under Section 134 (8) of the Act.
Government has no proposal to constitute any monitoring authority in order to regulate and monitor the activities of CSR.
This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
Source Press release, Govt of India ,Ministry of Corporate Affairs, 11-December, 2015