The statutory obligation of CORPORATE SOCIAL RESPONSIBILITY (CS

Section 135 of the Companies Act, 2013 applies the CSR mandate to companies meeting the prescribed thresholds (net worth, turnover or net profit). It requires the board to constitute a CSR Committee, formulate a CSR policy, and spend at least two per cent of the average net profits of the immediately preceding three financial years on CSR activities. Section 149 deals with appointment of independent directors; Section 180 with board powers requiring consent of the company in general meeting; and Section 188 with related-party transactions. CSR has since been made an obligation with consequences for non-compliance.