CORPORATE SOCIAL RESPONSIBILITY

[Richa Goyal]

Company A has a net profit before tax crossing ₹ 5 crores as on 31.03.2018 for the first time. The board report has already been filed stating the CSR is not applicable.

What should be done in this matter? Please guide?

AI Summary

Company A must comply with Section 135 of the Companies Act for CSR obligations after exceeding profit threshold in 2017-18. Company A, having a net profit before tax exceeding 5 crores as of March 31, 2018, initially reported that Corporate Social Responsibility (CSR) was not applicable. However, a respondent advised that CSR is applicable because the profit threshold was crossed in the preceding financial year, 2017-18. Therefore, Company A must comply with Section 135 of the Companies Act and related rules.