# CSR — Applicability Trigger (Section 135)
## 1. Threshold Test
Every company having any one of the following during the immediately preceding financial year must constitute a CSR Committee and frame a CSR policy:
| Parameter | Threshold |
|---|---|
| Net Worth | > ₹500 crore |
| Turnover | > ₹1,000 crore |
| Net Profit | > ₹5 crore |
The word is 'or' — meeting any one trigger brings the company within Section 135.
## 2. What the Company Must Do
- Constitute a CSR Committee of the Board.
- Frame a CSR Policy indicating the activities to be undertaken.
- The activities must fall within those listed in Schedule VII to the Act (e.g., eradicating hunger, promoting education, gender equality, environmental sustainability).
- Spend, in every financial year, at least 2% of the average net profits of the immediately preceding three financial years on CSR activities (this part is in the main body of Section 135).