A Study to Know The Relationship Between CSR and Financial Performance of The Companies in India

Abstract

In India, the concept of CSR is governed by section 135 of the Companies Act, 2013, which was passed by both Houses of the Parliament, and had received the assent of the President of India on 29 August 2013. The CSR provisions within the Act is applicable to companies with an annual turnover of 1,000 Crore INR and more, or a net worth of 500 Crore INR and more, or a net profit of 5 Crore INR and more. The new rules, which will be appropriate from the fiscal year 2014-15 onwards. This study examines the relationship between corporate social responsibility and firm’s financial performance in India with the use of secondary data, sourced from ten randomly selected Indian companies annual report and financial summary for the period of four years.