Applicability of Corporate Social Responsibility (CSR)
Every company having
- a net worth of INR 5 billion or more, or
- turnover of INR 10 billion or more, or
- a net profit of INR 50 million or more
during the immediately preceding financial year,
shall spend 2% of its average net
profit made during the 3 immediately
preceding financial years on CSR activities.
New Provisions
The Ministry of Corporate Affairs (MCA), vide its circular dated
11 February 2022, has now mandated all such companies to furnish a
comprehensive report on their CSR activities
in Form CSR-2 having details of CSR
spending, quantum of CSR money unspent/carry forward, details of
all ongoing CSR projects, creation or acquisition capital assets
through CSR spend, details relating to their CSR Committee, CSR
policy, etc.
