Many companies still grappling with new CSR rules of Companies Act
Realty major DLF, in its 2008 annual report, identified sponsoring the Indian Premier League as part of its responsibility as a corporate citizen. Now, many would believe that the new legislation under the Companies Act, 2013, has removed many of the loose connotations associated with corporate social responsibility (CSR), but the fact remains that companies are still grappling with the new rules that are binding from the current fiscal.
Companies with a net worth of Rs 500 crore, or a turnover of Rs 1,000 crore, or net profit of Rs 5 crore, need to spend at least 2 per cent of their average net profit for the immediately preceding three financial years on CSR activities.