What is CSR Fund of Companies?
CSR stands for Corporate Social Responsibility
What is CSR?
CSR stands for 'Corporate Social Responsibility'. It is also called 'Corporate Social Responsibility'. Every company has some impact on society through its business. Therefore, it is the responsibility of companies to do something for the society.
What is CSR Fund?
According to the Companies Act, 2013, it is mandatory for certain companies to spend some part of their net profit for social work. This expenditure is made in various areas like education, health, environment, poverty alleviation, women empowerment. The fund that the company sets aside for this expenditure is called CSR Fund.
How much is CSR Fund?
Companies whose net profit is Rs. 5 crore or more, or whose turnover is Rs. 1000 crore or more, are required to spend 2% of the average net profit of the last 3 years under CSR.
What is the use of CSR funds?
This fund helps the weaker sections of the society and also helps in reducing social problems. CSR activities of companies improve the fields of education, health, and environment.
