Under section 135(1) of the Companies Act, 2013, which company meets the financial thresholds that…
Section 135(1) of the Companies Act, 2013 applies to every company having a net worth of rupees five hundred crore or more, or a turnover of rupees one thousand crore or…
Choose your answer
Under section 135(1) of the Companies Act, 2013, which company meets the financial thresholds that attract the Corporate Social Responsibility provisions?
Answer and explanation
Correct answer C
Section 135(1) of the Companies Act, 2013 applies to every company having a net worth of rupees five hundred crore or more, or a turnover of rupees one thousand crore or more, or a net profit of rupees five crore or more during the immediately preceding financial year; any one threshold is enough. Only the company with net profit of 5 crores, net worth of 500 crores and turnover of 1000 crores meets them; the other companies fall below all three thresholds.
Such a company must ordinarily constitute a CSR Committee, but under section 135(9) the Board discharges the Committee's functions where the amount to be spent under section 135(5) does not exceed fifty lakh rupees.
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