My company in Tirunelveli has failed to spend the mandatory CSR amount; what are the consequences and how can I rectify it?

Under Section 135 of the Companies Act, 2013, every company meeting the turnover, net worth, or profit thresholds must spend at least two percent of its average net profits on CSR activities. If the company fails to spend the required amount, the board must specify the reasons in its report under Section 134(3)(o), and unspent amounts must be transferred to a specified fund within thirty days of the financial year end. The CSR Committee must formulate the CSR policy and monitor implementation. The Madras High Court may take cognisance of continuing non-compliance if it affects public interest. The Tamil Nadu Rent Control Act 1960 on designated funds and local area requirements may also apply. Penalties under Section 134(8) include fines on the company and officers in default. Rectification requires transferring unspent amounts and ensuring compliance in subsequent years.