Corporate Social Responsibility for Companies : Effective from 1st April, 2014

On 27th February, 2014, Ministry of Corporate Affairs(MCA) has issued some major Notifications in relation to Corporate Social Responsibility of companies in India. The notifications are issued for giving effect to Section 135 and Schedule VII of the Companies Act, 2013. The said section and schedule will be coming into effect on 1st April, 2014.

The Ministry has notified the Companies (Corporate Social Responsibility Policy) Rules, 2014, which will also come into force on 1st April, 2014.

After extensive consultations with all stakeholders, the rules of CSR was finalised, said Shri Sachin Pilot, Minister for Corporate Affairs.

He further elaborated that the Rules provide for the manner in which CSR Committee shall formulate and monitor the CSR Policy, manner of undertaking CSR activities, role of the Board of directors therein and format of disclosure of such activities in the Board’s report.

The Ministry has also amended the Schedule VII of the said Act, and have included some new activities in the Schedule. The above notifications are available at MCA site.

The Corporate Social Responsibility spending by companies will have a significant impact on the society and its environment. The Corporates must take this responsibility in right spirit and do comply with the provisions as prescribed. Corporates should take this opportunity to serve the society and gain real popularity among the people.