CSR Overview your corporate social responsibility, compliant and impactful.
End-to-end Corporate Social Responsibility advisory in Mumbai and across India — CSR applicability assessment under Section 135 of the Companies Act 2013, CSR policy drafting, CSR committee constitution, project structuring, CSR-1 and CSR-2 compliance, impact assessment, and annual CSR reporting for companies of every size.
Corporate Social Responsibility, or CSR, is the statutory obligation under Section 135 of the Companies Act 2013 that requires qualifying companies to contribute a defined share of their profits towards the welfare of society. CSR transforms a company from a purely commercial entity into a stakeholder in national development — funding education, healthcare, environmental sustainability, rural development, and other approved activities listed in Schedule VII of the Companies Act.
A company falls within the CSR mandate when, in the immediately preceding financial year, it has a net worth of Rs 500 crore or more, a turnover of Rs 1000 crore or more, or a net profit of Rs 5 crore or more. Once any of these thresholds is crossed, the company must constitute a CSR committee, formulate a CSR policy, spend at least 2 percent of the average net profits of the three preceding financial years, and report the spending in its Board Report and through MCA filings such as Form CSR-2.
Our CSR advisory practice covers the complete compliance lifecycle — CSR applicability testing, CSR committee formation, CSR policy and project plan drafting, identification of eligible implementing agencies registered through Form CSR-1, structuring of ongoing and one-time CSR projects, unspent CSR amount handling, impact assessment for large projects, and accurate annual disclosure through Form CSR-2. Whether you are a private limited company, public company, or foreign company with an Indian presence, our Chartered Accountants ensure your CSR obligation is both legally compliant and genuinely impactful.
Our CSR Advisory Services
CSR Applicability Assessment
Net worth, turnover, and net profit testing under Section 135 to confirm whether CSR provisions apply to your company.
CSR Committee Constitution
Formation of the CSR committee of the Board, terms of reference, and governance framework for CSR oversight.
CSR Policy Drafting
Drafting of a board-approved CSR policy aligned with Schedule VII activities and the company's focus areas.
CSR Project Structuring
Design of ongoing and one-time CSR projects, budgeting, and selection of eligible implementing agencies.
CSR-1 & CSR-2 Compliance
CSR-1 registration of implementing agencies and timely Form CSR-2 filing with the Ministry of Corporate Affairs.
Unspent CSR Handling
Treatment of unspent CSR amounts, transfer to Unspent CSR Account or Schedule VII funds, and carry-forward set-off.
CSR Impact Assessment
Independent impact assessment for eligible large CSR projects as required under the CSR Rules.
CSR Annual Reporting
Preparation of the annual CSR report and Board Report disclosure in the prescribed format.
Our CSR Compliance Workflow
Applicability Test
Review of net worth, turnover, and net profit to confirm CSR applicability and the 2 percent spending obligation.
Policy & Committee
Constitution of the CSR committee and drafting of a board-approved CSR policy and annual action plan.
Project Planning
Selection of Schedule VII activities, budgeting, and onboarding of CSR-1 registered implementing agencies.
Spend & Monitor
Disbursement tracking, utilisation certificates, unspent amount handling, and impact assessment where required.
Report & File
Board Report disclosure and Form CSR-2 filing with the MCA within the prescribed due date.
Benefits of Structured CSR Compliance
Frequently Asked Questions
Under Section 135 of the Companies Act 2013, every company having a net worth of Rs 500 crore or more, or turnover of Rs 1000 crore or more, or net profit of Rs 5 crore or more during the immediately preceding financial year must comply with CSR provisions, constitute a CSR committee, and spend at least 2 percent of average net profits of the preceding three financial years.
An eligible company must spend at least 2 percent of the average net profits made during the three immediately preceding financial years on CSR activities listed in Schedule VII of the Companies Act 2013. Any unspent amount must be transferred to a specified fund or an Unspent CSR Account as prescribed.
Schedule VII covers eradication of hunger and poverty, promotion of education, gender equality, environmental sustainability, protection of national heritage, support to armed forces veterans, rural development projects, slum area development, and contributions to specified relief funds, among other approved activities.
Yes, a CSR committee of the Board is generally required. However, where the amount to be spent on CSR does not exceed Rs 50 lakh, the requirement to constitute a CSR committee is not applicable and the functions of the committee may be discharged by the Board itself.
If a company fails to spend the required CSR amount, it must transfer the unspent amount to a fund specified in Schedule VII within six months of the financial year end. Non-compliance can attract monetary penalties on the company and on officers in default under Section 135(7) of the Companies Act 2013.
Ready to Get Your CSR in Order?
Whether you have just crossed a CSR threshold or need to strengthen an existing CSR programme, talk to our team for a clear, compliant, and audit-ready CSR framework.
Talk to a CSR Advisor or call +91 9819 000 511