Sudhir Todkar
(CS Professional)
(1021 Points)
Replied 19 August 2017
Yes company should spend at least 2% of average net profit for the immediate preceding 3 Financial year in CSR.
For example if company earned profit or loss:
6Crore NP in 2015 - 2016
5 Crore NP in 2016 - 2017
(3) Crore Loss in 2017- 2018 FY
Then we need to calculate average of immediate preceding 3 FY.
6+5-3= 8 Crore
8/3= 26,666,666.7 (Average Net Profit of preceding 3 FY)
CSR Expenditure will be minimum 2% of 26,666,666.7
To comply we should check last 3 years Profit/ Turn over / Net worth. Not only for current financial year.