03 March 2014
our cmpany has corssed the net profit of 5 -crores in the financial year 2007-08. however after that year til date our profit is in between 2 to3cr will sec 135 of new compamines will be applicable to our company.
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).
CAclubindia
