NEW DELHI: A detailed disclosure framework for Corporate Social Responsibility (CSR) spending by companies notified by the government is a "positive step" as it brings transparency, HCL Foundation Director Nidhi Pundhir has said.
Speaking to PTI, Pundhir said HCL Foundation -- CSR arm of HCL Technologies -- had been disclosing the details of its CSR spending since 2015-16, although the government has notified its format this year.
"That's a very good thing. It is a very positive move," she said.
HCL Foundation, which is celebrating 10 years of stewardship and impact, has adapted to the CSR law.
A new CSR policy has also been put in place with 10 commandments to guide the CSR activities, Pundhir noted.
Stating that the CSR disclosures have always been part of the foundation's reporting process, she said it is because there are developmental funds, and there has to be a very high degree of transparency and accountability.
The foundation has always disclosed its CSR spending ever since the CSR law came in 2014.
It has always been part of the governance process, she added.
On February 12, the government had notified the Companies (Accounts) Amendment Rules, 2022, under which every company covered under u/s 135 is required to furnish a report on CSR in E-Form CSR-2 to the Registrar for the preceding financial year (2020-2021) and onwards.
The CSR-2 is to be filed as an addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS) as the case may be.
However, form CSR-2 for 2020-21 fiscal is required to be filed separately, latest by March 31 this year.
The form requires companies concerned to provide details about the CSR amount spent against ongoing projects and those other than ongoing projects.
Other requirements include furnishing details of the amount spent on impact assessment and whether any capital assets have been created or acquired through CSR spent in a given financial year.
On CSR spending for the next fiscal, Pundhir said it will slightly go up while the foundation's priority work areas will continue to remain in rural development, education, health and environment.
The foundation plans to further sharpen the quality of programmes being implemented in 21 states and three Union Territories, she said.
Pundhir said the foundation will soon announce a list of NGOs selected for funds under its HCL Grant programme for 2022.
A grant of Rs 16.5 crore will be awarded to chosen NGOs working towards development in areas of environment, health and education for a three to five-year project, she added.