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?

[DR.MARIAPPAN GOVINDARAJAN]

In my view CSR is applicable since the profit exceeds ₹ 5 crores for the immediate preceding year i.e., 2017 - 18. You have to comply with the provisions of section 135 of the Companies Act and the rules made there under.

AI Summary

Corporate Social Responsibility applicability affirmed where company's preceding-year profit crosses threshold; compliance required under section 135 and rules. Although the board report was filed stating CSR was not applicable, Company A's profit for the immediately preceding year exceeds the statutory threshold; CSR obligations apply and the company must comply with the Companies Act CSR provisions and the accompanying rules.