International Journal of Commerce and Management Research

Authors
Mulukalapally susruth

Abstract
In India, the concept of CSR is governed by clause 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 five crore INR and more. The new rules, which will be applicable 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. The purpose of the present paper is to study the level of CSR initiatives taken by the Indian companies and its influence on the performance of the companies. All the variables of the selected companies have been tested with one way Anova, Karl Pearson's correlation and correlation t-test for its validity. The study result shows that there is a considerable positive relationship between the CSR and Financial performance of the firm, and firms spending on CSR not only benefits from continuous long term sustainable development but also enjoy enhanced financial performance. Overall, there is a significant difference between CSR and Firm’s financial performance by accepting alternative hypothesis and rejecting null hypothesis at 5% significance level.