The Companies Act, 2013 has done a tremendous job by providing Company's Social Responsibility (CSR) as…
Under Section 135(1) of the Companies Act, 2013, every company having a net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore…
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The Companies Act, 2013 has done a tremendous job by providing Company's Social Responsibility (CSR) as a mandatory activity. A company has to comply with mandatory CSR norms where
Answer and explanation
Correct answer B
Under Section 135(1) of the Companies Act, 2013, every company having a net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more during the immediately preceding financial year is mandatorily required to comply with Corporate Social Responsibility (CSR) norms and spend at least 2% of its average net profits of the three immediately preceding financial years in pursuance of its CSR Policy. Among the given options, only a turnover of ₹1,000 crore or more states the correct statutory threshold under Section 135(1). Paid-up share capital is not a criterion under Section 135(1), and the statutory thresholds for net worth (₹500 crore) and net profit (₹5 crore) are lower than the figures stated in the other options.
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