Csr-sec. 135 of companies act 2013
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 March 2014
Sec 135 stay that if company having:
1.Net worth of Rs. 500 Crore
Or
2.Turnover of Rs. 1000 Crore
Or
3.Net profit of Rs. 5 Crore
During any financial year
Now my query is what does “any financial year” means.
In the financial year 2007-08 company has Rs.5.82 crore net profit and after that companies profit was between Rs.2 to Rs.3 crore only.
So sec 135 will be applicable on company or not
1.Net worth of Rs. 500 Crore
Or
2.Turnover of Rs. 1000 Crore
Or
3.Net profit of Rs. 5 Crore
During any financial year
Now my query is what does “any financial year” means.
In the financial year 2007-08 company has Rs.5.82 crore net profit and after that companies profit was between Rs.2 to Rs.3 crore only.
So sec 135 will be applicable on company or not
03 March 2014
1. As per Section 135(1) if the prescribed condition is fulfilled in ANY year, the Section 135 is applicable.
However, Rule 3(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 provides that a company which ceases to fulfill conditions of Section 135(1) for 3 CONSECUTIVE YEARS shall not be required to comply with CSR.
2. In your case, the profit for the last 3 financial years is LESS than Rs. 5 crore, so CSR is NOT applicable (assuming the net worth & turnover are less than the prescribed limit).
However, Rule 3(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014 provides that a company which ceases to fulfill conditions of Section 135(1) for 3 CONSECUTIVE YEARS shall not be required to comply with CSR.
2. In your case, the profit for the last 3 financial years is LESS than Rs. 5 crore, so CSR is NOT applicable (assuming the net worth & turnover are less than the prescribed limit).
03 March 2014
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