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Orchid Systems Inc., a company incorporated in the United States, has a branch office in India and its India business crosses the thresholds stated in Section 135(1). Is Section 135 relevant to it?

Yes. Section 384(2) provides that Section 135 applies to a foreign company as it applies to a company incorporated in India, subject to any exceptions, modifications and adaptations made by rules. Section 122 concerns One Person Companies and gives no such exemption.

  1. ANo, Section 135 never applies to foreign companies
  2. BYes, Section 384(2) applies Section 135 to a foreign company, subject to rules' exceptions, modifications and adaptationsCorrect
  3. CYes, but only if it is a One Person Company
  4. DNo, because Section 122 exempts foreign companies from section 135

Explanation

Section 384(2) states that section 92 and section 135 apply to a foreign company as they apply to an Indian company, subject to exceptions, modifications and adaptations made by rules. Section 122 deals with One Person Companies and does not exempt foreign companies from CSR.

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