Govt may tighten rules for companies not spending CSR funds

Sat,15 Dec 2018

Companies not spending their entire corporate social responsibility (CSR) corpus and diverting funds to their balance sheets will now have to declare the amount not spent in their annual report. Moreover, companies will have to transfer the unspent funds to a separate bank account and spend it within three years. These new restrictions on CSR funds are part of a list of proposed amendments to the Companies Act, 2013, that the government will take up during the Winter session of Parliament. The amendment may make CSR spending mandatory, as against the current practice of either complying (spending) or explaining why the funds were not spent.

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