The Companies Act, 2013 mandates Corporate Social Responsibility (CSR) contributions for certain companies. Section 135(1) outlines the criteria that trigger these provisions.
CSR Applicability Criteria
A company is required to comply with CSR provisions if it meets any of the following thresholds during the immediately preceding financial year:
- Net Worth: ₹ 500 crore or more.
- Turnover: ₹ 1,000 crore or more.
- Net Profit: ₹ 5 crore or more.
Determining CSR Requirement
The question specifically asks about the situation related to the company's net worth. Based on Section 135(1) of the Companies Act, 2013, the CSR provisions become applicable when a company's net worth is ₹ 500 crore or more.
Therefore, a company must follow the CSR provisions if its net worth is ₹ 500 crore or more.
Important Questions from The Companies Act, 2013 - Teaching
- Arrange the following steps for the Incorporation of a new LLP (Limited Liability Partnership) in the correct order -
A. Drafting of LLP Agreement
B. Deciding the partners and designated partners
C. Electronic filing of documents with ROC & issuing of Certificate of Incorporation by ROC (Registrar of Companies)
D. Checking the availability of Name
E. Obtaining DPIN & Digital Signature Certificate
Choose the correct answer from the options given below: - Which of the following section of Companies Act, 2013 deals with amalgamation, absorption and reconstruction?
- Which of the following is the most frequently held meeting of a company?
- Arrange the following process of incorporation of a new LLP in proper sequence.
A. Reserve LLP name
B. Procure Digital Signature Certificate
C. Prepare documents for incorporation of LLP
D. LLP incorporation and DIN Application
E. Drafting and Filling LLP Agreement
F. Apply for PAN and TAN
Choose the correct answer from the options given below: - The liquidator after realizing the assets of the company should distribute the proceeds among below mentioned claimants in which order?
A. Liquidator's remuneration and cost of expenses of winding up.
B. Legal charges
C. Claims of secured creditors
D. Preferential creditors and creditors secured by floating charges
E. Unsecured creditors
Choose the correct answer from the options given below:
