ABC Limited is one of the largest engineering, procurement and construction (EPC) company. It is a New Delhi headquartered company with over ten thousand employees and has site offices in all major cities in North India.

ABC Limited is one of the largest engineering, procurement and construction (EPC) company. It is a New Delhi headquartered company with over ten thousand employees and has site offices in all major cities in North India. Company has a highly motivated management team and professionally qualified board. Philosophy and vision of the company is : To promote and expand new functional areas in infrastructure sector; To adopt sustainable manufacturing practices in all its operations; To engage with all stakeholders including society at large; and To operate in an economically, socially and environmentally sustainable manner, while recognizing the interest all of its stakeholders. ABC Limited imbibes on the philosophy of 'Sarva loka hitam'-meaning working for the well-being of all its stakeholders. The company also follows the principle of Utilitarianism: i.e., 'greatest good for the greatest number of people'. Through its operations, it is also striving for adoption of the green sustainability principles, so as to protect the environment. According to Section 135 of the Companies Act, 2013, it is mandatory for prescribed class of companies to contribute at least two percent of the average net profits of the company during the three immediately preceding financial years. To pursue its Corporate Social Responsibility Policy, Corporate Social Responsibility Committee has been constituted by the Board of Directors of the Company. The Company has decided to carry out the following CSR activities, namely: Construction of old age homes for senior citizens; Setting up homes and hostels for women employees; Running Guashala in its factory premises/project sites; Running full day kitchens (Bhandara) for food to poor people residing near the factory premises; Organizing free sugar and eye check-up camps; Contribution to the Swach Bharat Kosh setup by the Central Government for the promotion of sanitation and making available safe drinking water; Sponsoring the investor education programmes for the employees of its clients; Sponsoring the training programmes to promote rural sports; Contribution to the Prime Minister's National Relief Fund; Contributing for construction of roads particularly in rural area; Construction of toilets in schools; and Construction of Yoga centres for local community. Company is incurring more than ₹10 crore since last few years on such social welfare and philanthropic programmes. However, company's statutory auditors have raised issues of non-compliance pertaining to CSR policy, CSR Committee composition and CSR expenditure. You, as a practicing Company Secretary, have been invited as an Advisor and have been asked to answer the following questions : What is the minimum amount of CSR expenditure required to constitute a CSR committee mandatorily? What are the CSR committee constitution provisions enunciated in the Company Act, 2013?