Question

A listed company has an average net profit of Rs. 12

CSR applies if net worth 500 cr, turnover 1,000 cr, or net profit 5 cr. Here, profit exceeds 5 cr, so 2 of average net profit 24 lakh must be spent.

crore in the last 3 years. As per Section 135 of the Companies Act, 2013, which of the following statements is correct regarding CSR obligation?

A No CSR spending required since net profit is below Rs. 15 crore.

B CSR expenditure of at least 2% of average net profit (Rs. 24 lakhs) is mandatory.

C CSR is voluntary for all companies irrespective of thresholds.

D CSR expenditure must be exactly 5% of profit.

E CSR applies only if company is a public sector undertaking.

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