Csr applicablity for subsidiary of foreign company in india

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2017 Company A is an Indian company. It's 99% shares are held by a foreign companyB and 1% balance shares are also held by another foreign company C. The turnover /networth /net profit of Company A is less than the prescribed limit for CSR applicability.
In this case since Company A is subsidiary of Foreign company, for the purpose of CSR applicability do we need to also consider the turnover/networth/net profit of Company B and Company C? Please note that shares in Company B and C are in turn held by a another foreign company. There is also another Company D which is an Indian company subsidiary of same group of companies and this company is individually covered by CSR and is carrying out CSR activities.
Kindly let me know if CSR shall be applicable to Company A.?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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01 June 2017 The applicability of CSR requirements comes by way of section 135 of the Act. The section is quite clear – if the company by itself has to satisfy the criteria of the section to be covered by CSR. That is, the section will have to be complied with by every company on stand-alone basis.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2017 Ok. So i understand that if Company A does not fulfil the criteria than CSR rules are not applicable. The financial status of holding foreign company and other group companies does not matter.

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