Corporate Social Responsibility compliance: clarified obligations on applicability, spending, implementation, monitoring and penalties including impact assessment. The circular clarifies that CSR obligations under Section 135 apply company specifically where net worth, turnover or net profit thresholds are met; the Board must ensure at least two percent average net profit spending (computed on profit before tax with section 198 adjustments), constitute and rely on a CSR Committee as required, and disclose policy and utilisation. Administrative overheads are capped at five percent of CSR spend; implementing agencies must meet registration criteria and register on MCA21 from 1 April 2021. Unspent amounts for ongoing projects must be transferred to a separate 'Unspent CSR Account' and non ongoing unspent amounts to Schedule VII funds within prescribed timelines. Impact assessment, monitoring, mandated filings and civil penalties for transfer defaults are detailed.