The Lok Sabha has passed the Companies Bill 2011. The Bill, aimed at improving corporate governance, contains provisions to strengthen regulations for corporates as well as auditing firms. The Bill passed by the House late last night also makes it mandatory for profit-making companies to spend two percent of their profit for community welfare as part of their Corporate Social Responsibility. In case, a company fails to meet its social obligations, it will have to explain the reasons for the shortfall. Introducing the Bill, Corporate Affairs Minister Sachin Pilot termed the Bill as forward looking stating that it will protect small investors from corporate frauds.Mr Pilot said, the law will simplify the procedure for closure of a company.