Corporate Social Responsibility(CSR) –
Every company fulfilling any of the following criteria –
(a)Having net worth of rupees 500 crores or more, or
(b)Turnover of rupees 1000 crore or more, or
(c) A net profit of rupees 5 crore or more than during any financial year.
Composition of CSR committee:
Shall constitute a corporate social responsibility committee of the Board consisting
of three or more directors, out of which at least one director shall be an
Quantum – How much to utilize / spend:
The Board of every company shall ensure that the company spends in every
financial year at least 2% of the average net profits of the company made during
the three immediately preceding financial years in pursuance of its CSR Policy.
However, if the company fails to spend such amount the Board shall, in its report
made under clause (o) of subsection (3) of section 139, specify the reasons for
not spending the amount.
The company shall give preference to local areas where it operates for spending
amount earmarked for CSR activities by the committee (Section 135)