CSR Applicability & Spend

Test whether section 135 CSR applies and compute the mandatory spend — 2% of the average net profit of the three preceding financial years.

₹

Inputs (preceding FY)

Net worth (₹ crore)

Turnover (₹ crore)

Net profit (₹ crore)

Average net profit, last 3 FYs (₹)

CSR obligation

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Trigger tests

Indicative. Section 135 applies if, in the immediately preceding financial year, the company has net worth ≥ ₹500 crore, or turnover ≥ ₹1,000 crore, or net profit ≥ ₹5 crore. The spend is 2% of the average net profit (computed u/s 198) of the three preceding years. Companies must constitute a CSR committee and report in Form CSR-2. Confirm the §198 profit computation.