New Delhi, February 7, 2017
The government today said show cause notices have been issued to 536 firms for non-compliance with CSR norms under the Companies Law. Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities in a particular fiscal.
In case of non-spending, the company concerned has to provide explanation to the Ministry. “Show cause notices have been issued by Registrars of Companies to 536 companies for non-compliance of Section 135 read with Section 134 (3) of the Companies Act, 2013,” Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Rajya Sabha.
[The Hindu Business Line]