If X company incorporated on 2016 and earned profit of 5 Crore and 4 Crore in 2017. So do we need to comply section 135 since it's profit earned in previous is 5 Crore but it's a newly incorporated company?
in short answer is "yes" if u want detail see below
sec 135 says, it applies if a company satisfies the said criteria for "any financial year"
it shall cease to apply if the company does not satisfy any of the criteria for three consecutive f.y.
in your case net profit fy 2015-16 5cr fy 2016-17 4cr
company has satisfied the criteria for the financial yr 2015-16 and so it needs to comly sec. 135 from fy 2016-17 since it has been only one year that the company does not fulfill the criteria
further if company does not fulfill the said criteria for fy 2017-18 and fy 18-19 it then would not be required to comply sec 135 from fy 19-20
in other words your company now in any case needs to comply sec 135 for upcoming fy 2017-18 & 18-19
CAclubindia
