Telangana Registrar of Companies Josekutty VE, has said that 330 companies will contribute ₹1200 crore for CSR activities in the state.
Speaking at the meeting on Corporate Social Responsibility Review Regulatory and Tax Aspects, Josekutty VE said that the current efforts are to make the entrepreneurs and corporations aware of the various amendments in corporate legislation.
As for the amendments to the CSR, he said there is no change in CSR criteria, but where the amount to be spent by a company does not exceed ₹50 lakh, the requirement to set up the CSR committee will not apply.
One of the sections is Section 135 where an in-house penalty has been provided. The ministry has started an in-house adjudication system to see that the compliances are fully made and penal provisions are fully implemented.
Coming to the amendments to the CSR, the Registrar said there is no change in CSR criteria, but where the amount to be spent by a company does not exceed ₹50 lakh, the requirement of constituting the CSR Committee shall not be applicable, and the functions of the CSR Committee shall be discharged by the Board of Directors of that Company.
Similarly, the functions of the CSR Committee shall be governed by the Board of Directors of that company. The board is now expected to be more accountable for compliance. Under these conditions, a company can spend CSR amounts in two ways: for an ongoing project and a short-term project.
Josekutty said the total number of CSR-affiliated companies in Telangana is more than 1,000. According to the latest balance sheet, the total net profit of these companies is around ₹67,000 crore. Of these companies, only 300 companies have a profit of ₹60,000 crore and hence about ₹1,200 crore will be spent on CSR. This will lead to inclusive growth with the contribution of business in the state of Telangana.