Also raises other concerns over new companies bill
Sweta Ranjan | February 17, 2011
India Inc has rejected the government's move to make corporate social responsibility mandatory and force companies to earmark 2 percent of their profits for the same.
Corporate affairs minister Murli Deora said, after an interactive session with representatives of the industry on Thursday, "We have extensively discussed the issue of mandatory CSR. The industry seems to happily accept this mandate but no decision has yet been taken on this." The minister added, "As per my opinion, 2 percent levy on social responsibility should be made mandatory."
Contrary to the minister's claims, however, representatives of the industry seemed united in rejecting the suggestion outright. Suresh C Senapaty, executive director and CFO, Wipro, said, "It should not be made mandatory. We suggest adequate disclosure of the CSR but making it mandatory would lead to another scam."
IL&FS Environment Infrastructure and Services Ltd, CFO S N Mukherjee also felt that the mandatory 2% CSR would not work well. "Industry is bound to be dissatisfied with this kind of step. We would appreciate if voluntary CSR is there,” he said.
Industry bodies CII, FICCI and Assocham too strongly opposed the move towards mandatory CSR. Many representatives of corporate india present in the interactive session even said they did not know what exactly CSR meant. "What happens if there is no profit in a particular year,” was just one of the vexing points of debate.
Deora, along with his junior minister RPN Singh and secretary MCA D K Mittal met with the corporate representatives to discuss revision in the companies law.
Besides CSR, issues relating to independent directors, such as their empanelment with the ministry, remuneration and tenure were also discussed. Sources say the industry did not accept the idea of restricted number of independent directors. The companies demanded "freedom to companies" over remuneration as well. The proposed tenure of a maximum six years was also outrightly opposed by the industry.
The industry expressed concern over the rotation of auditors as well, arguing that it takes at least two years for an auditor to understand the company and its processes. The same happened over the International Financial Rating Standards (IFRS) as the industry felt it was not compatible with the system prevalent in India.
Maharashtra chief minister Uddhav Thackeray has launched three state-of-the-art human DNA units under the Nirbhaya Scheme for efficiency in criminal investigations. A wildlife DNA unit in Nagpur makes Maharashtra the country’s first state to have a forensic testing lab for animals.
The Midway Battle: Modi’s Roller-coaster Second Term By Gautam Chintamani Bloomsbury / 400 pages / Rs 699 Gautam Chintamani, a film historian and author, has penned an in-depth chronicle of prime minister Narendra Modi’s second
Maharashtra chief minister Uddhav Thackeray has instructed the Mumbai civic authorities to take immediate action on unauthorized constructions on war footing. In a virtual meeting held on Wednesday, Thackeray said no illegal construction will be tolerated in Mumbai and called upon the BMC to
After extending timings of shops and restaurants as well as the reopening of cinema halls and theatres under specified SOPs from October 22, in view of the festive cheer, the Maharashtra government has allowed restaurants and eateries to remain open till 12AM and shops and establishments to function till 1
Rubbishing the recently released Global Hunger Index 2021, wherein India has slipped to 101 position to be placed below Pakistan, Nepal and Bangladesh, Arvind Panagariya, professor of economics at Columbia University and former vice chairman, NITI Aayog, has said that data collection and methodologies used
A long life span free from diseases and disability, the so-called healthy aging, has been a matter of prime interest to humanity. It is widely held that the life expectancy is a function of interplay between various genetic and environmental factors. There is scientific evidence to support the fact that on