Under Section 135 of the Companies Act, 2013, which companies are required to constitute a Corporate Social Responsibility (CS

Section 135(1) provides that every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, of whom at least one shall be an independent director. The company is required to spend at least two percent of its average net profits made during the three immediately preceding financial years in pursuance of its CSR policy. The 2021 Amendment introduced provisions for penal consequences for non-compliance. Schedule VII of the Act lists the activities which may be included as CSR activities, including eradicating poverty, promoting education, environmental sustainability, and healthcare.