03 March 2014
My queries regarding the new CSR 2013 notified rules by MCA are these :
Sec 135 states that if company has:
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 then this section shall be applicable.
A.My first query is that what does any financial here mean?
B. It is stated that if there is Net Profit of Rs. 5 Crs or more then CSR will be applicable to the company....my second query is that net profit after tax or the net profit before tax has to be considered for this?
03 March 2014
A. Any financial year means ANY year since inception.
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.
CAclubindia
