Tag: Corporate Social Responsibility (CSR)

As per Section 135 of the Indian Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit computed as mandated by the Act for the immediately preceding three financial years on CSR activities. The Act prescribes that every company having a net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during any financial year shall ensure that it spends, in every financial year, at least 2% of the average net profits computed as mandated by the Act, in pursuance of its CSR Policy. The Corporate Social Responsibility (CSR) Committee of the Board identifies, executes and monitors CSR projects and assists the Board to fulfill its corporate social responsibility objectives and achieve the desired results. The Committee also ensures legal and regulatory compliance from a CSR perspective and reporting as well as communication to all the stakeholders on the CSR initiatives.

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