Csr

According to my perception,

Firstly, it will be applicable only after Companies Act, 2013 becomes applicable

Secondly, investment in CSR and constituting the committee both are mandatory and net profit is profit after tax.

but in recent interview of Mr. Pilot who says if investment in CSR make manatory for company,who qualified this criteria, then it  will termed as a "investment through imposing inspector raj rather extending social welfare to sociiety on will " link  :- https://www.thehindu.com/business/companies/new-companies-bill-mandates-csr-spending/article4217872.ece. which is not the premise of new legislation as also claimed by pilot. So, according to this it came into light that keeping funds available on this a/c is not mandatory for cos but yes, constitution of committee , at leat 3 exeutive director and 1 / 3rd shall beindependent director, is mandatory.

please shed more light on this issue.

I have attended one of the session taken by Mr. Pilot. The term "investment through imposing inspector raj" meant Government interference will not be there on how company wants to spend this money set as CSR. It will be with the Company and it will depend on Company where this money has to spent as reqd by the Act. But if the reqd amt is not spent then proper disclosures need to be made in this regard.

according to me, then every company- if non investment is confined only upto stating reasons for same, ,  will part way with this new provision, section 135, only by stating the reason, just like providing excuse,  for same in board report u/s 134 (3) ?

if investment is not mandatory, then why we need to constitute committee as well ?

please ractify.

Provisions are made so as Company willingly follow CSR guidlines. As quoted by Mr. Pilot in his session "Laws are made with a positive approach that it will be followed. Intially it cant be taken as what if it is not followed."

If there will be any non - compliance as one stated by you, amendments will come to make the law more stringent.

if pilot said "company invest willingly' it implies investment is not compulsory and there is also a sense which implidely come across when a student go through with the provision for same i.e. u/s 135 (1) if company acheive any ,as quotted by me earlier, during any financial year then require to constitute a committee rather investment and if we talk about investment then u/s 134 (3) every co, who qualifying such criteira, shall make every endeavor to invest in this line (schedule no 7) otherwise shall make the disclosures in its board report u/s 134(3) 

Q_why we need for committee over CSR u/s 135 (1) as well ?

Company invest willingly means company can willingly choose from the list of activities as prescribed by the Act. Formation of committee is required to ensure proper compliance of the same.

I think I have clarified enough so no more discussion on this from my side.

Thank you