CORPORATE SOCIAL RESPONSIILITY(CSR)

The concept of CSR was introduced by the Companies Act, 2013. It shall come into effect on 1st April, 2014. The word CSR indicates the responsibility towards society and environment to make the voluntary contributions through its business activities. The main aim of this concept is to make sustainable development to the Company’s level.

Every Company having

net worth of Rs.500 Crores or more; or

turnover of Rs.1000 crores; or

net profits of ₨. 5 crores or more

during any financial year needs to constitute Corporate Social Responsibility Committee of the board which consist of 3 or more director out of which at least one director shall be independent director.

Companies weather private limited or public limited which fulfills the above requirement needs to contribute at least 2% of the average net profit for the immediately preceding 3 financial year on Corporate Social Responsibility activities.

It is to be noted that contribution  to any political party is not considered to CSR activity & only activities in India would be considered for computing CSR expenditures.