Under section 135(1) of the Companies Act, 2013, which of the following companies meets a threshold…
Section 135(1) of the Companies Act, 2013 applies the CSR provisions to a company having, during the immediately preceding financial year, a net worth of Rs. 500 crore or…
Choose your answer
Under section 135(1) of the Companies Act, 2013, which of the following companies meets a threshold that attracts the corporate social responsibility provisions?
Answer and explanation
Correct answer C
Section 135(1) of the Companies Act, 2013 applies the CSR provisions to a company having, during the immediately preceding financial year, a net worth of Rs. 500 crore or more, a turnover of Rs. 1000 crore or more, or a net profit of Rs. 5 crore or more; only "A company having a net profit of 5 crore or more, a net worth of 500 crores and a turnover of rupees 1000 crore or more" crosses these thresholds. Such a company ordinarily constitutes a CSR Committee, but since 2021 section 135(9) dispenses with the Committee where the amount to be spent under section 135(5) does not exceed Rs. 50 lakh.
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