CSR (Corporate Social Responsibility) is not automatically applicable to all companies—it depends on whether a company meets certain financial thresholds specified in Section 135 of the Companies Act, 2013. This applies to both public and private companies.

Key Points:

• Mandate Criteria:
  CSR is mandatory for a company if, in the immediately preceding financial year, it meets any of these thresholds:

  • Net Worth: ₹500 crores or more
  • Turnover: ₹1,000 crores or more
  • Net Profit: ₹5 crores or more

• For Private Companies:
  If a private company meets any of the above criteria, it is required to have a CSR policy and spend the prescribed percentage of its profits on eligible CSR activities.

  • Many smaller private companies may not meet these thresholds and, therefore, are not required to comply with CSR provisions.

• Reporting:
  Companies subject to CSR must disclose their CSR activities in their Annual Report and Directors’ Report, even if they are private companies.