Question : CSR

(a) whether it is mandatory for companies to spend two per cent of their profits on social welfare as per the Companies Act, 2013; and

(b) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE
MINISTRY OF CORPORATE AFFAIRS (SHRI ARJUN RAM MEGHWAL)
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(a) and (b): Section 135 of the Companies Act 2013, mandates every company above the specified thresholds of turnover, or net worth, or net profit to spend at least two per cent of the average net profits earned during three immediately preceding financial years on Corporate Social Responsibility (CSR) activities specified in Schedule VII of the Act.


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