Companies meeting any of the following criteria during any financial year are covered under mandatory CSR spends: 1. Net worth* of Rs. 500 Crores or more or 2. Turnover** of Rs. 1000 Crores or more or 3. Net profit of Rs. 5 Crores or more
*Definition of Net Worth – Section 2 (57) of the Companies Act, 2013 – the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation. **Turnover – Section 2(91) – the aggregate value of the realization of amount made from the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year.
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