Q.State the net-worth, turnover and net-profit thresholds that make Section 135 CSR provisions applicable to a company.

Applicability is triggered if a company crosses any one of three separate financial thresholds — not all three together. …

Section 135 of the Companies Act, 2013 does not apply to every company — only to companies that cross specified financial thresholds in the immediately preceding financial year, tested independently of each other.

A company becomes subject to the CSR provisions of Section 135 if it meets ANY ONE of three thresholds: a net worth of Rs. 500 crore or more; OR a turnover of Rs. 1,000 crore or more; OR a net profit of Rs. 5 crore or more. Because these thresholds are joined by "or" rather than "and," a company needs to cross only one of the three to come within the Section's scope — it does not need to simultaneously meet all three. This is an important distinction from the separate 2% spending rate, which is a different figure applied …

Treating the three thresholds as cumulative (all must be met) rather than alternative (any one is …