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A company will come under the ambit of the new CSR policy if its net worth is Rs 500 crore or more; turnover is Rs 1,000 crore or more, or net profit is Rs 5 crore or more during any financial year. Under any of these conditions, a company should spend at least 2% of the average net profit made during three immediate preceding financial years, in pursuance of the provisions of the Companies Act laid down towards Corporate Social Responsibility.
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