Question
Under Section 135 of the Companies Act, 2013, a company
is required to constitute a Corporate Social Responsibility (CSR) Committee if it fulfills which of the following criteria during the immediately preceding financial year?Solution
This provision is governed by Section 135(1) of the Companies Act, 2013. 1. The Applicability Criteria (The "CSR Trigger") Every company (including its holding or subsidiary, and a foreign company defined under section 2(42)) must constitute a CSR Committee if it satisfies ANY one of the following three conditions during the immediately preceding financial year: • Net Worth: Rupees 500 Crore or more; OR • Turnover: Rupees 1,000 Crore or more; OR • Net Profit: Rupees 5 Crore or more. 2. Note on "Net Profit" The "Net Profit" here is calculated in accordance with Section 198 of the Act (it is not just the profit shown in the P&L account, but "Net Profit" as specifically adjusted for managerial remuneration calculations). 3. Comparison with your "Small Company" Question While your original question about "Small Companies" (Section 2(85)) deals with exemptions and lighter compliance (Paid-up capital $\le$ ₹4 Cr and Turnover $\le$ ₹40 Cr), the CSR section deals with social obligation and applies to larger, more profitable entities. Summary Table of Thresholds 
Statements: No silver is a finger.
All fingers are diamonds.
Some diamonds are rings.
Conclusions: I. Atleast some rings are diam...
- Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at variance wi...
In the question below some statements are given followed by three conclusions I, II and III. You have to take the given statements to be true even if ...
In the questions given below, there are three statements followed by three conclusions I, II and III. You have to take the three given statements to be...
Statement:
I) No water is air
II) Some air are land
III) All land are floor
IV) Some fire are water
Conclusion:
Statements: All circle are bangle.
                         Some bangle are square
Conclusions I. Some circle a...
Statements:Â
Some nails are toes.
Some fingers are hands.
No hand is a nail.
Conclusions:
I. Some fingers are not nails.
II. All nails can be fingers.
In the following question, some conclusions are given and some statements are given you have to take the given conclusions to be true even if they seem...
Statements:
All Nails are Fingers.
All Fingers are Toes.
Only a few Toes are Games.
Only Games are Arms.
Conclusions:...
Statements:
Only a few Pockets are Expenditure.
No Expenditure is Saving.
Some Saving are Deposit.
Conclusions:
