With the notification of CSR provisions in Companies Act, 2013, it’s time for Indian Companies to imbibe the culture of giving back to the society. Essentially, it requires the prescribed companies to spend at least 2% of the average net profits of 3 immediately preceding financial years and setting up a CSR Committee for formulation and monitoring of CSR Policy. However, the Board is restricted to confine to CSR activities mentioned in Schedule VII.
Author : Geetika Chandel – a Company Secretary; manages Compliances at NovoJuris. She loves making graffitis.
Disclaimer: This is not a legal opinion and should not be construed as one. Please speak with your attorney for any advice.