CSR Compliance under Section 135: A Practical Guide

CSR applies to companies with: net worth Rs 500 crore or more, OR turnover Rs 1,000 crore or more, OR net profit Rs 5 crore or more, in any of the preceding three financial years. The board must constitute a CSR Committee with at least three directors. Spend at least 2 percent of average net profits of the preceding three years on qualifying activities (Schedule VII). File Form CSR-2 (separate from earlier CSR-1) on the MCA portal, detailing the composition of the committee, the projects undertaken, and the amount spent. Failure to spend triggers transfer of unspent amount to a specified fund within six months.