Definition of CSR: Rule 2 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 defines CSR as follows:
"Corporate Social Responsibility (CSR)" means and includes but is not limited to-
(i) Projects or Programs relating to activities specified in Schedule VII to the Act; or
(ii) Project or programme relating to activities undertaken by the board of director of a company (Board) in pursuance of recommendations of CSR committe of the Board as per declared CSR policy of the company subject to the condition that such policy will cover subject enumerated in Schedule VII of the Act.
Applicability:
(a) Sec. 135 applies to a company (including a foreign company) only if it satisfies one or more of the following criterion during any financial year:
(i) The net worth of the company is Rs. 500 crore or more.
(ii) The turnover of the company is Rs. 1000 crore or more.
(iii) The net profit of the company is Rs. 5 crore or more.
(b) Every company which ceases to fulfill the above criteria for 3 consecutive financial year shall not be required to-
(i) Constitute CSR Committee; and
(ii) comply with the provisions contained in Sec. 135, till such time it meets the criteria specified above.
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