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in Social Responsibility of Management and Corporate Social Responsibility by (53.6k points)

How much expenditure can a company make under corporate social responsibility policy ? How is the profit calculated and under which section?

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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 profit of the company made during the three immediately preceding financial years, in pursuance of its corporate social responsibility policy. The above provision is under Section 135 and sub section 135 (5) of Companies Act, 2013.

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