Corporate social responsibility is a broad concept that can take many forms depending on the
Company and industry. CSR activities can help to form a stronger bond between employees and
corporations; boost morale. For a Company to be socially responsible, it first needs to be
accountable to itself and its shareholders.
A Company that adopt CSR programs to grow their
business to the point where they can give back to society.
Every Company having a net worth of rupees 500 crores or more, or turnover of rupees 1000 crore
or more or a net profit of rupees 5 crores or more during the immediately preceding financial year
shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or
more directors.
The Board's report shall disclose the composition of the Corporate Social Responsibility
Committee. The Committee shall:-
(a) formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall
indicate the activities to be undertaken by the Company in areas as specified
(b) recommend the amount of expenditure to be incurred on the activities and
(c) monitor the Corporate Social Responsibility Policy of the Company from time to time.
The Company who are required to form CSR committee spends, in every financial year, at least 2%
of the average net profits of the Company made during the three immediately preceding financial
years.
The consequence of Non- Compliance
The Company shall be punishable with fine which shall not be less than fifty thousand rupees
but which may extend to twenty-five lakh rupees and every officer of such Company who is in
default shall be punishable with imprISOnment for a term which may extend to three years or
with fine which shall not be less than fifty thousand rupees but which may extend to five lakh
rupees, or with both.
What all you get in Expert Consultancy
What all provisions are applicable to your Company may be discussed in detail or any specific
the query will be addressed in consultancy service which may include any one or more of:
● Applicability of CSR provisions on your organisation
● Calculations clarity on CSR amount
● Response to any notice from the prescribed authority
● Non-compliance consequences and how to overcome
● Clarity over the formation of a committee
● any specific query, if any
Get in touch with us for more details
