Assume the company’s CSR spending obligation exceeds fifty lakh rupees. Which of the following…
Statements I and III give the net-worth and net-profit thresholds in section 135(1) of the Companies Act, 2013. The turnover threshold is one thousand crore rupees in the…
Choose your answer
Assume the company’s CSR spending obligation exceeds fifty lakh rupees. Which of the following statement(s) is/are correct regarding Corporate Social Responsibility (CSR) Policy under the Companies Act, 2013?
I. CSR Committee should be constituted if a company has a net worth of rupees five hundred crore or more during the immediately preceding financial year
II. CSR Committee should be constituted if a company has an average turnover of rupees one hundred crore or more in the last three preceding financial years
III. CSR Committee should be constituted if a company has a net profit of rupees five crore or more during the immediately preceding financial year
IV. CSR Committee should be constituted by every registered company in India.
Answer and explanation
Correct answer B
Statements I and III give the net-worth and net-profit thresholds in section 135(1) of the Companies Act, 2013. The turnover threshold is one thousand crore rupees in the immediately preceding financial year; section 135(9) dispenses with a separate committee where the spending obligation does not exceed fifty lakh rupees.
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