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Rohini Ltd has a CSR obligation of Rs 45 lakh for the year. Which statement is correct?

Rohini Ltd need not constitute a CSR Committee because its obligation of Rs 45 lakh does not exceed Rs 50 lakh, and the Board performs the Committee's functions under section 135(9). The obligation to spend the amount still continues.

  1. AIt must still constitute a three-director CSR Committee with an independent director
  2. BIt is exempt from section 135 altogether
  3. CIt need not constitute a CSR Committee; the Board discharges the Committee's functionsCorrect
  4. DIt need not spend anything until the amount exceeds Rs 50 lakh

Explanation

Under section 135(9), where the amount to be spent does not exceed fifty lakh rupees, the requirement to constitute the Committee does not apply and the Board of Directors discharges its functions. The spending obligation under section 135(5) still remains, so exemption from spending is wrong.

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