ET Intelligence Group: Realty major DLF, in its 2008 annual report, identified sponsoring the Indian Premier League as part of its responsibility as a corporate citizen. Now, many would believe that the new legislation under the Companies Act, 2013, has removed many of the loose connotations associated with corporate social responsibility (CSR), but the fact remains that companies are still grappling with the new rules that are binding from the current fiscal.

Companies with a net worth of . 500 crore, or a turnover of ` ` . 1,000 crore, or net profit of ` . 5 crore, need to spend at least 2% of its average net profit for the immediately preceding three financial years on CSR activities. Schedule VII of the Act provides a list of activities that can be undertaken as CSR.

For construction major Larsen & Toubro (L&T), the new rules meant rethinking the way the company approached its CSR initiatives, which so far revolved around its facilities. In FY14, the company spent about ` . 76.5 crore on sustainability and social responsibility activities, or approximately 1.4% of its profits. Excluding sustainability initiatives, the spend stood at ` . 50 crore. This financial year, under the new guidelines though, the company could spend as much as . 110 crore on CSR alone, focusing ` on building social infrastructure.............Read more

Source web page: The Times of India