Scam of the year has hit the PSU sector of the country. It has sent shock waves amongst the common man and has also shaken the confidence of the stock market, if experts and analysts are to be believed. The CBI on Wednesday swooped down on the CEO of LIC Housing Finance Mr Ramachandran Nair and seven others including three top officials of public sector banks in connection with the alleged housing finance racket.

But the government does not agree that this is a scam. It simply terms this case as a mere housing case of bribery. "It's an individual case of bribery.

Read more...

CSR or Corporate Social Responsibility, though not new to this country, has now gained tremendous importance in the developing economy of India. For  psuindia.in - it has been our constant endeavour to keep our readers/visitors aware of the happenings in and surrounding the PSU world. We are introducing this special fortnightly column which will be written by our special guest Mr. SV Divvaakar. Mr. Divvaakar does not need an introduction in the field of business and economy. His vast experience in these areas coupled with his brilliant writing skills will certainly add value to www.psuindia.in

Moreover, when the government is likely to make it mandatory for big companies to earmark at least 2 per cent of their net profit for corporate social responsibility (CSR) activities in the new Companies Bill, this column gains further significance.
"The Ministry of Corporate Affairs has agreed that the Bill may now include provisions to... ensure that every year at least 2 per cent of its (companies') average net profits during the three immediately preceding financial years shall be spent on CSR activities," an official statement from the government of India has stated.
The new provisions will apply to companies having a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more, during a year.
Directors will have to make suitable disclosures in this regard in their report to members, it added.
"... The committee feels that separate disclosures required to be made by companies in their Annual Report by way of CSR statement indicating the company policy as well as the specific steps taken thereunder will be a sufficient check on non-compliance," it said.
The ministry's statement comes after the Parliamentary Standing Committee on Finance presented its report on the new Companies Bill in the Lok Sabha.
It further said that in case a company does not have adequate profits or is not in a position to spend the prescribed amount on CSR activities, the directors would be required to give suitable reasons in their report to members.
The Companies Bill, 2009, was re-introduced in Parliament in August last year, after which it was sent to the Standing Committee for vetting.
The revised Bill is expected to be presented in Parliament for passage in the Winter Session. And with the ambit of Corporate Social Responsibility growing rapidly in the country, this column is also quite likely to gain more and more significance in the days to come.

India has 246 Public Sector Undertakings which are with the central government. The PSUs have weathered bad times but have not fallen to the global meltdown which saw the world powers shaken. On the contrary, Indian PSUs have come out of these times in flying colours, their flags shining bright and high.

Read more...