CSR: 4,195 companies spend nothing; show cause notices to 496 firms

CSR: 4,195 companies spend nothing; show cause notices to 496 firms

NEW DELHI: Government has issued show cause notices to 496 companies for not complying with CSR norms while about 4,195 companies have not spent a single penny on corporate social responsibility activities, Parliament was informed today.

The reasons for not spending included companies not finding suitable implementing agency, delay in formation of CSR committee and inability to formulate a well conceived CSR policy.

Under the Companies Act, 2013, certain classes of profitable entities are required to shell out at least 2 per cent of three-year annual average net profit towards CSR activities. They have to provide reasons for not spending on such projects.

Companies having a turnover of at least Rs 1,000 crore, minimum net worth of Rs 500 crore and those having net profit of Rs 5 crore or more in a financial year are required to comply with the CSR norms.