Vol. 5, Issue 8, Part C (2019)

Abstract
The Companies Act, 1956 binds all those companies that are situated in India. The provisions specified in this Act are not suitable to the present scenario, because of the rapid development and industrialization witnessed in India. For example: Earlier the penalty imposed for not attending the Annual General Meeting (AGM) was RS 10,000/-, which might not be suitable in the present scenario. The loopholes of this Act paved way for the enforcement of new Companies Act 2013 which is more rigorous when compared to the previous Act. Also, in the previous Act there was no provision for CSR, where as in the present Act, the provision for the same is provided under Sec 135, Chapter IX, of the Companies Act 2013. The Companies bill, 2012 was passed by the upper house of parliament on 8 August 2013. From April 1, 2014, it has become legally binding for companies in India to be "socially responsible". This paper provides us a perception of how CSR contributes to the overall development of the country - Legal pronouncements [Sec 135 of Companies Act, 2013] - Guidance note on CSR -MCA clarification - Top 3 companies that bestow to most of the activities specified in Schedule VII-Note on international scenario - Impact of CSR in general [Benefits and difficulties for initiating CSR activities in India].