ICL on CSR specially tailored guidelines for CPSUs

Update
 Feb 18 '15

Committee to Suggest Monitoring Measures for CSR

In the meanwhile, indications from the Government are that the CSR compliance will be closely monitored, both at the individual company level and also on an overall basis. Towards this end, the Ministry of Corporate Affairs earlier this month constituted a committee to suggest measures for improved monitoring of the implementation of the CSR policies by companies under section 135 of the Companies Act, 2013. The terms of reference of the committee include suggesting measures for adoption by companies for systematic monitoring of CSR initiatives, and also mechanisms for providing feedback to the Government regarding efficacy of the CSR expenditure and quality of compliance.

This step indicates that the Government continues to place considerable importance on CSR measures. Although structured largely on a “comply-or-explain” basis, the intention seems to be to ensure maximum compliance.

OFFHAND: Looking back, attention may be drawn to comment earlier posted, besides elsewhere, @ "CSR in Government Companies". It is observed that, certain areas of doubt focused on therein are not gone into or fully taken care. Be that as not unexpected, the only comfort is that, as mentioned by the writer, measures as structured are largely on a “comply-or-explain” basis. Hoping that the companies would not fail to but take the obligation to comply with all seriousness, so that the ‘intention’ behind, to ensure maximum compliance, is translated into a reality and fructified.

 

CSR in Public Sector Enterprises

Posted: 03 Jan 2013 06:37 PM PST

xcerpt

.....The provisions relating to corporate social responsibility (CSR) in the Companies Bill, 2011 have garnered sufficient attention on the topic. Those provisions are largely in the nature of CSR spending. While the Bill is pending in Parliament, the Department of Public Enterprises has proceeded to issue a revised set of “Guidelines on Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises” that would become effective from April 1, 2013.....

 

<> Origin (Doubting Thomas):

"St. Thomas, apostle who doubted Jesus’ resurrection until he had proof of it (John 20:24–29)
First Known Use: 1883"

Now, having traced the origin, and given to know what that idiom means, still not minding to take the possible risk of self being dubbed as one:

The  CSR spending , given a statutory shape, and made mandatory for some, and not so for the rest in the corporate world, is referenced to 2 % of yearly profits ; and subject to a cap of average profits for a 3 year period. The points of basic doubt that instantly surfaces are mainly these:

Does that necessarily mean, and inevitably imply, that for any company to be hauled up and/or being called upon to explain in case of non compliance, the empowered authority may have to wait for the qualifying profits to be quantified much after the end of each year, also for the 3 year period end and the audited final accounts are made available?

Has the government already thought of, and truly effective machinery is in place, so also have formulated  equally effective measures  to keep a satisfactorily good, if not foolproof, track / monitoring  of the actual spending, apart from quantitatively, for only the permitted / envisaged purposes?

On the premise that as emphasised in the write-up, in cases of PSUs the aim is also to achieve the avowed objective of “good governance”, to what extent the ultimate responsibility and related answerability of  CAG, statutory auditor(s) , the internal management and internal audit/controls , and the like are envisaged/covered in the road map ?

Perhaps, hopefully, some sort of answers must be available, and forthcoming, if and when so inquired into or warranted.