Firms have spent 80% of the required amount of Rs. 5,000 crore in 2014-15
A parliamentary panel’s recommendation that penalties be levied on companies that failed to spend the mandatory 2 per cent of their net profit on CSR activities has raised, if only obliquely, the possibility of substantial non-compliance.
But, how big is this problem? An analysis of the 2014-15 annual reports of the 50 Nifty companies reveals a mixed bag. Yes, only 15 companies – or fewer than a third – have spent the mandated amount on CSR.
But the overall figures on CSR suggest that the shortfall is not a big as it may appear on the face of it. Together, Nifty companies were required to spend ?5,000-odd crore in 2014-15, of which they have spent a little over Rs. 4,000 crore. (For this analysis, three public sector banks have been excluded as they are not required to comply with the CSR norms.)................Read more
Source: Business Line
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