As per Section -135 of The Companies Act , 2013
As per Section -135 of The Companies Act , 2013 Applicability Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. Computation of Amount The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy:
The Section-135 is notified and is in force w.e.from 01.04.2014
Queries :-
1) How the applicability os determined . In section the term during any financial year is written .if the company “A” has net profits of Rs.5 crore and more in Financial year ended 31.03.2013 is the section applicable ?
2) amount to be spent also written the word in every financial year .That means fpr e.g. during the year F.YEAR 1.04.2014 TO 31.03.2015 if net profit crosses 5 crore , company has to start spending 2 % BY TAKING AVG OF 31.03.12.,31.03.2013 AND 31.03.2015 PROFIT ???? And within how much time it should be complied
3) please help in understanding this section with example.
Please suggest
regards
CAclubindia
