Injeti Srinivas heads high-level committee on Corporate Social Responsibility

The Union Ministry of Corporate Affairs (MCA) has recently constituted an 11-member high-level committee on Corporate Social Responsibility (CSR) to review the existing framework and guide and formulate the roadmap for a coherent policy on CSR under the companies law. The Committee, which will be headed by Corporate Affairs Secretary Injeti Srinivas, will analyze outcomes of CSR activities, programmes, projects and suggest measures for effective monitoring and evaluation of CSR by companies. Suggestions are also expected on innovative solutions, use of technology platform to connect stakeholders and social audit. The Companies Act 2013 mandates that firms with a net worth of at least Rs 500 crore or revenue of Rs 1,000 crore or net profit of Rs 5 crore should spend at least 2% of their net profit on CSR. The provision came into force from April 1, 2014. In India, around 14,000 companies are required to spend on various social projects under Section 135 of the Companies Act. The committee will review the Schedule 7 of the Act that defines the activities on which companies have to spend their CSR funds.