Vastavam web: Finance and Corporate Affairs Minister Arun Jaitley today said online availability of data has opened corporate activities to public gaze and raised the possibility of detecting any impropriety.He said the ease at which the data is available now and is open for dissection has put pressure on everyone to ensure that there is compliance and transparency.
“It’s now all open to public gaze. And being open to public gaze has its own advantages. It has the advantage that there is a pressure on everyone to make sure that compliances do take place, everyone is on his feet and realised that if there is any impropriety the possibility of it being detected is going to be very high,” said Jaitley, who also holds the charge of the Corporate Affairs Ministry (MCA).”Therefore this transparency is good for the system, good for corporate India, it’s good that your details to the extent that are to be made public, are being made public,” Jaitley said.
With regard to corporates undertaking CSR activities, Jaitley said the 2013 amendment in the Companies Act has almost “formalised corporate philanthropy” in India.Under the Companies Act, 2013, 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.Jaitley said a public gaze into the CSR activists through the MCA portal would further institutionalise and consolidate it.As per the Companies Act, in case a company fails to spend the specified amount, then its board has to provide the specific reasons for the same in the board report.