Corporate Social Responsiblity

What is CSR?

On April 1, 2014, India became the first country to legally mandate corporate social responsibility. The new rules in Section 135 of India’s Companies Act make it mandatory for companies of a certain turnover and profitability to spend 2% of their average net profit for the past three years on CSR

Is CSR mandatory for all companies in India?

In 2014, Section 135 of the Companies Act made it mandatory for every company with a net worth of at least Rs 500 crore, turnover of Rs 1,000 crore or more, or a minimum net profit of Rs 5 crore during the immediately preceding financial year to spend at least two per cent of the average net profits, made during the immediately preceding financial year to spend at least two per cent of the average net profits