The Government has issued show cause notices to 536 firms for non-compliance with Corporate Social Responsibility, CSR, norms under the companies law.<br/><br/> In a written reply to the Rajya Sabha, Minister of State for Corporate Affairs Arjun Ram Meghwal said, under the Companies Act 2013, certain class of profitable entities are required to shell out at least two percent of their three-year annual average net profit towards CSR activities in a particular fiscal. <br/><br/>He said in case of non-spending, the company concerned has to provide explanation to the Ministry. The Minister informed that show cause notices have been issued by Registrars of Companies to 536 companies for non-compliance.

The Government has issued show cause notices to 536 firms for non-compliance with Corporate Social Responsibility, CSR, norms under the companies law.<br/><br/> In a written reply to the Rajya Sabha, Minister of State for Corporate Affairs Arjun Ram Meghwal said, under the Companies Act 2013, certain class of profitable entities are required to shell out at least two percent of their three-year annual average net profit towards CSR activities in a particular fiscal. <br/><br/>He said in case of non-spending, the company concerned has to provide explanation to the Ministry. The Minister informed that show cause notices have been issued by Registrars of Companies to 536 companies for non-compliance.