Companies with a minimum net worth of Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required every year to spend at least 2% of their average profit for the previous three years on CSR activities.
Recently, The Parliament approved amendments to the Companies Act, 2013, where it is mandatory for the companies to deposit any unspent CSR funds for a financial year into a fund specified by the government. If the unspent funds are for an ongoing project, then they may be deposited in an escrow account. Further, if funds earmarked for a fiscal year are not spent even after three years, then the amount would be transferred to a fund specified by the government.
Now, the ministry of corporate affairs (MCA) is considering to make geotagging of corporate social responsibility (CSR) projects mandatory.
Companies might have to geotag and furnish pictures of projects undertaken under the CSR programmes to the government.