April 2014 has seen the rolling of the new companies act for compulsory implementation of CSR Activity as per the laid down criteria ?Under the Companies Act, 2013 , Any company having a net worth of rupees 500 crore or more or a turnover of rupees 1,000 crore or more or a net profit of rupees 5 crore or more should mandatorily spend 2% of their net profits per fiscal on CSR activities.The rules came into effect from 1 April 2014
About 16,000 companies under the ambit of new Companies Act are estimated to pump in Rs 28,000 crore on Corporate Social Responsibility in the next financial year starting March, 2015.
The Government has identified 10 major areas including education, gender equality, environment, national heritage and the Prime minister Relief fund where India Inc can spend to claim credit for the mandatory 2% Corporate Social Responsibility (CSR) expenditure.
Under the new Companies Act, mid and large companies have to spend 2% of their three-year annual average net profit on CSR activities.
The activities which can be included by companies in their CSR policies include: eradicating hunger, poverty, malnutrition and promoting preventive healthcare, promoting sanitation and availability of safe drinking water, promoting education, promoting gender equality, ensuring environmental sustainability, protection of national heritage.
Under gender equality activities related to empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day-care centres and similar facilities for senior citizens and projects on reducing inequalities faced by socially and economically backward groups have been included
We hope that this Initiative would put the Country back to the growth path in the coming years and make it a Super Power soon.