banner_ad

Corporate Social Responsibility

Last updated: 12 August 2011


The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Rajya Sabha that the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises have issued comprehensive guidelines on Corporate Social Responsibility (CSR) for Central Public Sector Enterprises (CPSEs) in April 2010. In these guidelines, CPSEs have to create mandatorily through a Board Resolution, a CSR budget as a specified percentage of net profit of the previous year, Expenditure range for CSR in a Financial year 3-5% of the net profit of previous year in case of CPSEs having profit less than Rs.100 crores; 2-3% (subject to minimum of Rs. 3 crores) in case the profit ranges from 100 crores to Rs.500 crores and 0.5-2% in case of CPSEs having a net profit of more than Rs.500 crores in the previous year. CSR guidelines for CPSEs further provide that loss making companies are not required to earmark specific funding for CSR activities. So far comparable directions have not been issued by the Ministry of Corporate Affairs.

 

Implementation of CSR Guidelines in the CPSEs is monitored by the respective Ministries/Departments concerned with CPSEs and the MoU Task Force at the time of MoU negotiation meetings between CPSE and the administrative Ministry, assess the performanceof CPSEs on CSR. Out of the 50 marks allocated for non-financial parameters for the annual MoU assessment of each CPSE, 5 marks are earmarked for implementation of CSR projects by the CPSE.

 

The Minister was replying to a written question whether the Government has issued directions to public sector companies and corporate to spend 2 per cent of their profit on discharging social responsibility.


CCI Pro



News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.


Comments



More »


Popular News





CCI Pro
Meet our CAclubindia PRO Members




Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
11 May 2026
Post office

Post office

Anakapalle

Others

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details