Forty one central public sector enterprises, having annual profit of atleast Rs 10 crore, failed to comply with government's spending norms on social welfare activities during 2012-13 fiscal, apex auditor CAG said on Monday.
A review of the CSR budget/expenditure by the CPSEs during 2012-13 was conducted in respect of 103 central public sector enterprises (CPSEs) with profit of above Rs 10 crore.
"Out of the 103 CPSEs, 41 CPSEs did not comply with the DPE guidelines in terms of the minimum CSR budget/expenditure.
The compliance was not satisfactory in case of CPSEs earning profit between Rs 10 crore and Rs 500 crore, as 29 out of 65 CPSEs failed to comply with the guidelines".
"Out of 38 CPSEs with profit of more than Rs 500 crore, 12 CPSEs did not comply with the minimum requirement," the Comptroller and Auditor General (CAG) said in a report.
Under the new Companies Act, certain class of profitable entities are required to shell out at least two per cent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities.
The government is also working on rationalising the CSR norms for public sector enterprises in tune with the new companies law.
At present, public sector entities follow CSR guidelines of the Department of Public Enterprises (DPE).