law: Companies Act, 2013 
  135.
  
    Corporate
  
  Social Responsibility.
  1.      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 any
  
  financial year shall constitute a Corporate Social Responsibility Committee of
  
  the Board consisting of three or more directors, out of which at least one
  
  director shall be an independent director.
  2.      The Board's report
  
  under sub-section (3 ) of section 134 shall disclose the composition of
  
  the Corporate Social Responsibility Committee.
  3.      The Corporate Social
  
  Responsibility Committee shall,—
  a.     
  
    formulate
  
  and recommend to the Board, a Corporate Social Responsibility Policy which
  
  shall indicate the activities to be undertaken by the company as specified in
  
  Schedule VII;
  b.    
  
    recommend
  
  the amount of expenditure to be incurred on the activities referred to in
  
  clause (a ); and
  c.     
  
    monitor
  
  the Corporate Social Responsibility Policy of the company from time 
  
  to time.
  1.     
  2.     
  3.     
  4.      The Board of every
  
  company referred to in sub-section (1 ) shall,—
  a.     
  
    after
  
  taking into account the recommendations made by the Corporate Social
  
  Responsibility Committee, approve the Corporate Social Responsibility Policy
  
  for the company and disclose contents of such Policy in its report and also
  
  place it on the company's website, if any, in such manner as may be prescribed;
  
  and
  b.    
  
    ensure
  
  that the activities as are included in Corporate Social Responsibility Policy
  
  of the company are undertaken by the company.
  1.     
  2.     
  3.     
  4.     
  5.      The Board of every
  
  company referred to in sub-section (1 ), shall ensure that the company
  
  spends, in every financial year, at least two per cent. of the average net
  
  profits of the company made during the three immediately preceding financial
  
  years, in pursuance of its Corporate Social Responsibility Policy:
  Provided
  
  that the company shall give preference to the local area and areas around it
  
  where it operates, for spending the amount earmarked for Corporate Social
  
  Responsibility activities:
  Provided
  
  further that if the company fails to spend such amount, the Board shall, in its
  
  report made under clause (o ) of sub-section (3 ) of section 134,
  
  specify the reasons for not spending the amount.
  Explanation .—For the purposes of
  
  this section “average net profit” shall be calculated in accordance with the
  
  provisions of section 198.