As per Section 135 of the Companies Act, 2013, a company must constitute a Corporate Social Responsibility Committee if, in the immediately preceding financial year, it has -

Section 135(1) of the Companies Act, 2013 applies the CSR regime to every company having a net worth of five hundred crore rupees or more, or a turnover of one thousand crore rupees or more, or a net profit of five crore rupees or more during the immediately preceding financial year. Because the three limbs are connected by the word 'or', crossing any one threshold attracts the obligation. Such a company must constitute a Corporate Social Responsibility Committee of the board and, under Section 135(5), spend in every financial year at least two per cent of its average net profits of the three immediately preceding financial years on CSR activities. The limbs involving lower net worth or turnover figures in the other options misstate the statutory thresholds.