Q.Under Section 135 of the Companies Act, 2013, a company must constitute a CSR Committee if, during the immediately preceding financial year, its NET WORTH is at least:

CSR is a company's commitment to operate responsibly and contribute to the welfare of society and the environment, now made partly mandatory under the Companies Act, 2013.

Corporate Social Responsibility (CSR) means the responsibility of a business organisation toward society, the community and the environment in which it operates. It reflects the idea that a company draws resources from society and therefore owes a duty to give something back — through activities that improve the quality of life of people, not merely to maximise profit.

CSR activities include promoting education, healthcare, sanitation, environment protection, rural development, poverty relief and empowerment of weaker sections. Under Section 135 of the Companies Act, 2013, companies crossing prescribed limits of net worth, turnover or net profit must spend at least 2% of their average net profits of the previous three years on approved CSR activities and constitute a CSR Committee. Genuine CSR builds goodwill, strengthens stakeholder trust and supports sustainable development.