Indian Institute of Corporate Affairs, Grant Thornton ink pact to help firms implement CSR

NEW DELHI: The Indian Institute of Corporate Affairs and tax advisory firm Grant Thornton have entered into a pact to develop capacity of domestic firms for effective implementation of corporate social responsibility ( CSR) rules laid down under the new Companies Act.

The Memorandum of Understanding (MoU) was signed here yesterday.

"With the notification of the rules, the agenda has been set for knowledge and awareness building and to show the corporates what they can do for national development," IICA DG & CEO Bhaskar Chatterjee said.

Noting that CSR law is a "revolutionary concept", Grant Thornton India Partner Vikesh Harish Mehta said that "tying up with IICA is a complementary partnership, which will create solid infrastructure for common clients".

As per the new law, certain class of companies are now required to shell out at least two per cent of their three- year annual average net profit towards CSR activities.

The CSR rule is applicable for companies having at least Rs 5 crore net profit, or Rs 1,000 crore turnover or Rs 500 crore net worth.