As per The Companies Act CSR provisions under section 135(1) the CSR is not applicable for the companies having ................ .
MH SET - 2019, SET Exam - 2019,
Answer: A
CSR is not applicable to a company with a net worth of ₹ 100 crore.
Section 135(1) of the Companies Act, 2013 makes CSR obligations apply to a company that, in the preceding financial year, had any one of: a net worth of ₹ 500 crore or more, a turnover of ₹ 1,000 crore or more, or a net profit of ₹ 5 crore or more. Such a company must spend at least 2 per cent of its average net profit on CSR activities.
A turnover of ₹ 1,000 crore, a net profit of ₹ 5 crore and a net worth of ₹ 500 crore each meet a threshold, so CSR applies to all three. A net worth of ₹ 100 crore is below the ₹ 500 crore threshold, so on that criterion alone the company is not covered.
Please log in or register to report this question.