The Union Government on 3 February 2015 constituted a High Level Panel to suggest a framework to assess Corporate Social Responsibility (CSR) activities undertaken by companies under the Companies Act, 2013.
The panel will be headed by former Union Home Secretary Anil Baijal. It will have members from the Department of Public Enterprises and Corporate Affairs Ministry including:
• Deepak Nayyar, Professor at Jawaharlal Nehru University
• Onkar S Kanwar, Apollo Tyres Chairman and Managing Director
• Kiran Karnik, Former Nasscom President
The Union Ministry of Corporate Affairs and the Indian Institute of Corporate Affairs (IICA) will jointly provide the secretarial and technical support to the panel.
Terms of Reference of Anil Baijal panel
• To evaluate money spent on CSR activities by the companies.
• To recommend suitable methodologies for monitoring compliance of the CSR provisions.
• To suggest measures to be adopted by the companies for systematic monitoring and evaluation of their own CSR initiatives.
• To identify strategies for monitoring and evaluation of CSR initiatives through expert agencies and institutions to facilitate adequate feed back to the government with regard to the efficacy of CSR expenditure.
• To look at whether a different monitoring mechanism is required for government companies undertaking CSR works. If it is found necessary, then necessary suggestions will be made.
About Corporate Social Responsibility (CSR) in India
Corporate Social Responsibility (CSR) norms defined under Clause 135 of Schedule VII of the Companies Act, 2013 came into effect on 1 April 2014.
The CSR norms is applicable to companies with an annual turnover of 1000 crore rupees and more, or a net worth of 500 crore rupees and more, or a net profit of five crore rupees and more.
The CSR norms also require companies to set-up a CSR committee consisting of their board members, including at least one independent director.
It also encourages companies to spend at least 2 percent of their average net profit in the previous three years on CSR activities
Around 14000 crore rupees are expected to be spent towards CSR activities by companies in 2015-16.
Who: Anil Baijal Panel
When: 3 February 2015