<h1>Companies Bill 2012: Clause 135 mandates CSR spending for large companies, requiring 2% of profits on CSR activities.</h1> The existing Companies Act, 1956 does not mandate Corporate Social Responsibility (CSR) spending by companies. However, the Companies Bill, 2012 introduces CSR requirements under Clause 135. This clause mandates that companies with a net worth of Rs. 500 crore or more, a turnover of Rs. 1000 crore or more, or a net profit of Rs. 5 crore or more must form a CSR Committee. This committee, comprising at least three directors including one independent director, is tasked with ensuring the company spends at least 2% of its average net profits from the past three years on specified CSR activities.