Institute of Company Secretaries of India seeks mandatory audit for CSR activity

KOLKATA: Institute of Company Secretaries of India (ICSI) is for introduction of audit of Corporate Social Responsibility (CSR) activity.

"We want that the government should introduce CSR audit for a micro-level monitoring of the compliance," ICSI President Atul H Mehta told PTI.

CSR is mandatory for all listed companies from 2014-15 fiscal. Under the Companies Act, 2013, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities.

ICSI Vice-President Mamata Binani said in the secretarial audit it will be seen whether basic compliance had taken place or not.

"With audit we can make an in depth analysis of compliance," she said.

Government has formed a six-member panel to look into ways to strengthen monitoring of CSR activities under the companies law.

ICSI agreed that secretarial audit introduced by recently enacted Companies Act, 2013 has increased the scope for professionals.

ICSI will send its own recommendations to the ministry of company affairs on CSR over the next few days.

"MCA had asked our views and inputs on CSR and we will be sending the same over the next few days," Mehta said.

Indian Institute of Corporate Affairs (IICA) Director General Bhaskar Chatterjee said government is likely to wait for at least two years for impact before it tweaks with policy to tighten the noose.