LEGAL REQUIREMENT (CSR)
Pursuant to Section 135 of the Companies Act, 2013 (read with Companies (Corporate Social Responsibility) Rules, 2014), the company is required to formulate a Corporate Social Responsibility Policy indicating the activities to be undertaken as specified in Schedule VII and the expenditure to be incurred thereon, excluding activities undertaken in the normal course of business.
- Preference to be given to the local area and areas around where the company operates, for spending the amount earmarked for CSR activities.
- CSR activities do not include the activities undertaken in the normal course of business of the company.
- The surplus arising out of the CSR projects or programs or activities, if any, shall not form part of the business profit of the company.
Always refer to the latest MCA circulars and amendments for operative thresholds, computation and reporting formats.