The Government of India enacted the Companies Act 2013 in August 2013. Section 135 of the Companies Act 2013 (hereinafter referred to as ‘the Act’) deals with the subject of Corporate Social Responsibility (CSR). It lays down the qualifying criteria based on net worth ( > then INR 1000 crores), turnover (>then INR 500 crores), and net profit (>INR 5 crores)for companies which are required to undertake CSR activities and, interalia, specifies the broad modalities of selection, implementation and monitoring of the CSR activities by the Boards of Directors of companies. Qualifying companies must spend 2% of their revenue on CSR, under the principle of comply or explain.The activities which may be included by companies in their CSR policies are listed in Schedule VII of the Act. The provisions of Section 135 of the Act and Schedule VII of the Act apply to all companies, including CPSEs.
Social & Governance
Industry sectors covered by the instrument
Organizations covered by the instrument
Public sector and state-owned organizations
Type of instrument
Mandatory or voluntary
The geographical scope