How 100 companies get government notice on CSR spend

The Registrar of Companies (RoC) has served warning to about 100 companies over non-disclosure or improper disclosure of their corporate social responsibility (CSR) spending, sending a strong signal that the government is very serious about compliance. 

Regional registrars of companies (RoCs) have shot off notices to companies asking them to furnish further details of spending in some cases or face action that could include prosecution as well, a government official said. 

Disclosure of CSR spend by companies has been made mandatory by the Companies Act, 2013. 

In some instances companies have been asked to furnish reasons for shortfall in actual CSR expenditure. 

In others, including where the board of directors has not mentioned the reasons for not spending the specified amount, show cause notices have been issued. 

The RoC has also questioned some companies leaving out dividend income earned during three preceding years while calculating net profit for corporate social responsibility spending. 

-The Economic Times