Changes proposed to boost CSR expenses

Companies Law Committee (CLC) has suggested few changes to boost CSR (corporate social responsibility) expenses, including defining net profit to calculate CSR, five-year time to implement the expenditures, and more overheads to be kept aside for CSR activities.

The committee has sent these recommendations to the Ministry of Corporate Affairs. As per the CSR rule on April 1, 2014, corporate with a `500 crore net worth or `5 crore net profit or `1,000 crore revenue of are required to spend 2% of annual profit on CSR activities pertaining to social development.