CSEET · Economic and Business Environment · Elements of Corporate Governance
Under Section 135 of the Companies Act, 2013, which one of the following financial thresholds, during the immediately preceding financial year, makes a company subject to the Corporate Social Responsibility provisions?
A company with turnover of Rs 1,000 crore or more in the immediately preceding financial year must comply with Section 135. The other thresholds are net worth of Rs 500 crore or net profit of Rs 5 crore. The remaining options quote figures lower than those the law prescribes.
- ANet worth of Rs 250 crore or more
- BTurnover of Rs 1,000 crore or moreCorrect
- CNet profit of Rs 1 crore or more
- DTurnover of Rs 500 crore or more
Explanation
Section 135(1) applies to a company having net worth of Rs 500 crore or more, or turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more. Only the turnover of Rs 1,000 crore matches. The other options state lower figures than the statutory limits.
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