Question
Under Section 135 of the Companies Act, 2013, which of
the following companies is mandatorily required to constitute a Corporate Social Responsibility (CSR) Committee?Solution
Section 135(1) of the Companies Act, 2013 mandates that every company having net worth of ₹500 crore or more, OR turnover of ₹1,000 crore or more, OR net profit of ₹5 crore or more during the immediately preceding financial year must constitute a CSR Committee of the Board. Such companies are also required to spend at least 2% of the average net profits of the last three financial years on CSR activities.
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