2.
According to the new companies bill, it is
mandatory for all the companies of a certain size to
spend 2% of their 3 years average annual profit
towards CSR.
Every company that have net worth of Rs. 500 crore
or more, or turnover of Rs. 1000 crore or more, or
a net profit of Rs. 5 crore or more during any
financial year fall under the norms of CSR.
3. Contd…
It is estimated that around 8,000 companies
would fall under the Bill's ambit and this mandate
would translate into an estimated CSR spending of
Rs 12,000-15,000 crore annually.
The rules of CSR are proposed to be implemented
from financial year 2014-2015.