Only 1 per cent of active companies need to follow CSR spending norms

NEW DELHI: India might be among the first in the world to make social welfare spending by companies part of the law but new norms would be applicable only on about 1 per cent of total active companies in the country. The new Companies Bill, which was approved by Parliament after a long wait on August 8, requires companies to shell out two per cent of three-year average annual profit towards Corporate Social Responsibility (CSR) activities.

The CSR norms, that would come into effect once the President gives his assent, would be applicable to companies having either net worth of Rs 500 crore or more; turnover of Rs 1,000 crore or more; or net profit of Rs 5 crore or more. ECONOMIC TIMES