Using section 135 of the Companies Act, 2013 as in force on 1 April 2021, arrange these items in statutory presentation order: first the three alternative thresholds in subsection (1), then subsection (5), then subsection (7). This is not a sequence of successive eligibility conditions.
A. Net worth of ₹500 crore or more in the immediately preceding financial year
B. At least 2% of the relevant average net profits to be spent on CSR, subject to subsection (5)
C. Net profit of ₹5 crore or more in the immediately preceding financial year
D. Turnover of ₹1,000 crore or more in the immediately preceding financial year
E. Penalty for non-compliance with the requirements specified in subsection (7)
A, D, C, B and E
Section 135(1) lists net worth, turnover and net profit in the order A, D, C. Any one threshold can trigger applicability; they are not successive hurdles. The spending provision in subsection (5) follows, then subsection (7)’s consequences for non-compliance with the specified requirements. Therefore the requested statutory presentation order is A, D, C, B, E.
Important Questions from Corporate Social Responsibility (CSR)
What is the minimum prescribed net profit threshold for Companies to be required to undertake Corporate Social Responsibility activities under clause 135 of the Companies Act, 2013?
Which of the following changes was introduced in 2024 under the Companies Act amendments to enhance corporate social responsibility (CSR) transparency in India?
What is the 'Triple Bottom Line Approach' in CSR as mentioned in the passage?
Given below are two statements :
Statement (I): CSR is a holistic and integrated management concept whereby companies integrate their industrial and future objectives with their business objectives.
Statement (II): In this modern digitalized world, business are required to be mindful both in terms of what they are doing and how they are doing.
In the light of the above statements, choose the most appropriate answer from the options given below:
What is the consequence for companies that fail to most the CSR spending requirement as per the new amendments?
