Cumulative spending on CSR crosses ₹50,000 cr

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  1. According to Crisil Foundation,Cumulative spending on corporate social responsibility (CSR) has crossed the ₹50,000-crore-mark four years after the legislative mandate was implemented.
  2. The highest CSR funding went to (a)education (b)skill development (c)healthcare and (d)sanitation.While the spending on national heritage protection has tripled and that on sports promotion has more than doubled since 2015.
  3. Corporate social responsibility (CSR) was initiated through the Companies Act, 2013.The act mandated companies and government organisations with (a)turnover of Rs1,000 crore or more(b)net worth exceeding Rs 500crore or (c)having more than Rs 5 crore in net profits,to set aside 2 per cent of their average net profits for CSR activities.
  4. Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign company in India.
  5. The qualifying company are required to constitute a CSR Committee consisting of 3 or more directors.Further,CSR Committee are required to formulate and recommend to the Board, a policy which indicates the activities to be undertaken, allocate resources and monitor the CSR Policy of the company.
  6. If the company did not spend CSR, it has to disclose the reason for not spending. Non-disclosure or absence of the details are be penalised from Rs 50,000 to Rs 25 lakh or even imprisonment of up to 3 years.