CSR spending by companies requires auditing: MoS Corporate affairs PP Chaudhary

MoS Corporate Affairs PP Chaudhary has said that corporate social responsibility (CSR) spending by companies warrants auditing.

The minister added that the government is examining ways to improve procedures relating to CSR spending outlined in the Companies Act of 2013.

"We are now in the process of improving it. In the coming years, we would also like to see it audited. No doubt that as on today, companies are taking full care and are personally visiting projects to ensure proper spending, but certainly, the government will also like to take steps in this direction," the minister said at a conference.

"It is under deliberation. Why not (audit)? It is an yearly spending of Rs 15,000 crore. Auditing of firms should include everything," Chaudhary told Mint.

Also read - Corporate responsibility: Most of the CSR funds go to education sector in FY17

The overall CSR expenditure of corporates in the year 2016-2017 was Rs 9,034 crore with most of the funds going to the education sector, according to PRIME database.

Businesses with a net worth of over Rs 500 crore or revenue of over Rs 1,000 crore are required to spend 2 percent of their profits on CSR, as per the Companies Act 2013.