(a) company having networth of Rs. 500 crore or more
(b) company having turnover of Rs. 1000 crore or more
(c) company having net profit of 5 crore or more
(d) company having net profit of 2 crore or more during any financial year
Choose the most appropriate option :
Companies Act 2013: CSR Committee Applicability
Key Provisions for CSR Committee Constitution
Under Section 135 of the Companies Act, 2013, a company must constitute a Corporate Social Responsibility (CSR) Committee if it meets any of the following financial thresholds during the immediately preceding financial year:
- Net Worth: The amount is equal to or more than ₹500 crore.
- Turnover: The amount is equal to or more than ₹1000 crore.
- Net Profit: The amount is equal to or more than ₹5 crore.
Analysis of Criteria
Let's evaluate the given options based on the Act's requirements:
- (a) Net worth of ₹500 crore or more: This meets the threshold.
- (b) Turnover of ₹1000 crore or more: This meets the threshold.
- (c) Net profit of ₹5 crore or more: This meets the threshold.
- (d) Net profit of ₹2 crore or more: This does not meet the threshold of ₹5 crore.
Conclusion
Therefore, companies satisfying conditions (a), (b), and (c) are required to constitute a CSR Committee. Condition (d) is below the specified net profit threshold.
The correct combination includes options (a), (b), and (c).
Important Questions from Company law
Arrange the following as per sections of the Companies Act, 2013 in descending order :
A. Execution of Bills of Exchange, etc.
B. Punishment in case of repeated default
C. Annual reports on Government Companies
D. Petition for winding up
E. Functions of Company Secretary
Choose the correct answer from the options given below:
Match List I with List - II.
List - I
List - II
(A)
Producer companies
(I)
Do not necessarily require Memorandum of Association
(B)
Statutory companies
(II)
Association not for profit
(C)
Section 8 company
(III)
Formed to convert cooperative into a company
(D)
Small company
(IV)
Paid up share capital is between 50 lakh-5 crore and turnover is between 2 crore - 20 crore
Choose the correct answer from the options given below:
Red herring prospectus is a prospectus issued:
- In every listed public company how many of the total number of directors shall be independent directors?
- The problem of double taxation in international transactions can be reduced by:
i. Market agreement
ii. Multilateral agreement
iii. Bilateral agreement.
iv. Trade agreement
