New Delhi (ABC Live): Corporate Social Responsibility : As per the provisions of section 135 of the Companies Act 2013, every company having net worth of ` 500 crore or more, or turnover of ` 1,000 crore or more or a net profit of ` 5 crore or more during a financial year shall constitute a Corporate Social Responsibility (CSR) Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
These companies shall have a Corporate Social Responsibility Policy and ensure that the activities included in CSR Policy of the company are undertaken by the company.
The Board of these companies shall ensure that the company spends at least 2 per cent of the average net profits in pursuance of its Corporate Social Responsibility Policy. If the company fails to spend such amount, the Board shall, in its report made under section 134(3)(o) of the Companies Act, 2013, specify the reasons for not spending the amount.
During the year 2014-15, the provisions of Corporate Social Responsibility applied to 185 CPSEs. Of these 55 the Central Public Sector Enterprises did not have a CSR committee or did not have a CSR policy. Of the 185 CPSEs to which provisions of CSR applied, 100 the Central Public Sector Enterprises had earned profit during 2014-15 and had average net profit during the preceding three years.
Out of these 100 the Central Public Sector Enterprises, 64 had spent the full amount earmarked for CSR activities and 36 CPSEs had an unspent amount of ` 977 crore.
One of the main reasons stated for the unspent amount was that projects for CSR activities were yet to be identified, 2014-15 being the first year.
Following is the list of the Central Public Sector Enterprises those have failed to spent funds on Corporate Social Responsibility;
1 Antrix Corporation Limited
2 Bharat Coking Coal Limited
3 Bharat Dynamics Limited
4 Bharat Heavy Electricals Limited
5 Bharat Petroleum Corporation Limited
6 DNH Power Distribution Corporation Limited
7 Eastern Coalfields Limited
8 Export Credit Guarantee Corporation of India Limited
9 GAIL (India) Limited
10 General Insurance Corporation of India
11 Hindustan Aeronautics Limited
12 Housing and Urban Development Corporation Limited
13 India Trade Promotion Organisation
14 Indian Oil Corporation Limited
15 Mahanadi Coalfields Limited
16 Mazagon Dock Limited
17 MECON Limited
18 National Aluminium Company Limited
19 National Insurance Company Limited
20 National Seeds Corporation Limited
21 NHDC Limited
22 NMDC Limited
23 Northern Coalfields Limited
24 NTPC Limited
25 NTPC Vidyut Vyapar Nigam Limited
26 Nuclear Power Corporation of India Limited
27 Oil and Natural Gas Corporation Limited
28 The Oriental Insurance Company Limited
29 Power Finance Corporation Limited
30 Power Grid Corporation of India Limited
31 Rashtriya Ispat Nigam Limited
32 REC Power Distribution Company limited
33 Rural Electrification Corporation Limited
34 South Eastern Coalfields Limited
35 Steel Authority of India Limited
36 The New India Assurance Company Limited