Provisions made in this act, establish the controversial 2 percent CSR spending for companies with a certain net worth.
Ministry of Corporate Affairs (MCA)
Government ministryBusiness/Trade/Industry
More informationSection 135 ( Guidelines on Corporate Social Responsibility and Sustainability For Central Public Sector Enterprises) of the act deals with the subject of CSR. It lays down the qualifying criteria based on net worth, turnover, and net profit for companies which are required to undertake CSR activities and, interalia, specifies the broad modalities of selection, implementation and monitoring of the CSR activities by the Boards of Directors of companies. Qualifying companies must spend 2% of their revenue on CSR, under the principle of comply or explain. The activities which may be included by companies in their CSR policies are listed in Schedule VII of the Act. The provisions of Section 135 of the Act and Schedule VII of the Act apply to all companies, including CPSEs.
Organizations covered by the instrumentAll Companies
Industry scopeAll/none specified
Disclosure venueCSR activities
Current
CountryIndia
RegionAsia Pacific
Date of publication2013
Issuer typeGovernments (governmental department, agency)
Reporting requirementsPublic law and regulation
Mandatory or voluntaryMandatory
The geographical scopeNational/federal