Corporate social responsibility- spend versus impact
The new CSR Rules have presented a strategic direction to the corporates to invest in areas aligned to business philosophy or national interests and priorities.
The new CSR Rules have presented a strategic direction to the corporates to invest in areas aligned to business philosophy or national interests and priorities.
ICAI-NFRA recently clashed where the issue revolves around a report by the NFRA’s Technical Advisory Committee (TAC) on improving the authority’s engagement with its stakeholders. The TAC had submitted its first report in March 2021 based on which the NFRA subsequently issued a consultation paper on June 8. The CA Institute reportedly dismissed this report.
Companies need to evaluate and review their CSR policy, procedure and controls for compliance with the newly amended CSR rules, says an EY report
Companies returned Rs 39,000 crore to shareholders in fiscal 2021, almost double the previous year as removal of dividend distribution of tax made dividends an unattractive option. The Infosys buyback announcement shows the trend will continue for this year too.
After decriminalising minor offences under the Companies Act, the government has undertaken a similar exercise for LLP Act too.
As IBC is set to resume, an influx of new cases is expected, and pre-pack can help early and effective resolution of cases, writes Rajiv Chandak.
“The first-time experience of conducting virtual Annual General Meeting was exciting; and pandemic or no pandemic, if the rules allow next time also, the company would certainly look at exploring this option again,” said CFO Aneel Gambhir.
Financial institutions such as Banks, NBFCs are the backbone of the economy and during the current scenario, where if assessments of recovery are not adequately measured, then we would observe in near future a sudden surge in provision numbers, when reality of non-recovery by financial institutions kicks in.
During the financial year 2019-20, TCS spends in the CSR activities were at Rs 602 crore, which is 2.01 per cent of the last three-year average profits. This also satisfies the regulation threshold.
Indian Finance Minister Nirmala Sitharaman hit a pause button on insolvencies for a year, to stall the many possible bankruptcies that India might see during the Covid-19 pandemic. She also decriminalised defaults easing compliance for India Inc -19. To understand the implications of these announcements, ETCFO caught up with renowned legal expert Sandeep Parekh, founder of Finsec Law Advisors, a Mumbai-based law firm that specializes in financial law.
The compliance in terms of CSR Expenditure was at 57 per cent in the financial year 2017-18.