CSR Provisions applicability!!!

[Deepesh Nayak]

Good Morning friends,

I need some clarity from your side.

Company A is subsidiary of Company B.

Company B is a profit making company and come into the provisions of Section 135 i.e. CSR Provisions. However, the Company A is loss making company and provisions of CSR is not applicable to it.

My question is if CSR Provisions are applicable to holding company, will it be also applicable to it subsidiary company or vice versa???

In absence of profit under Company A,  whether the CSR Committee constitution is mandatory for it.???

Regards,
Deepesh

[Deepesh Nayak]

Friends, please reply.


Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

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[CS Chandru]

Dear Deepesh,

 

The provisions are applicable independently to all the companies irrespective of Holding/subsidiary/group Company relationships.

 

In your case, If Company A (Subsidiary Co) is not exceeding threshold limits given under Sec 135- CSR, it is exempted from forming CSR committee and so on... regardless of the fact that CSR provisions are applicable to Company B (Holding Co of Co A).

 

The intent of the expression 'Every company including its holding or subsidiary' is that not to exempt any subsidiary or holding Company, if they stand alone exceeds the threshold limits stated therein, from complying with CSR provisions merely bcoz their respective holding or subsidiary company is already complying with CSR provisions.

 

The provisions are stand alone applicable to each company and every company with Paid-up cap/TOR/Networth more than the limits stated shall comply with CSR provisions independently

 

Other members’ views are solicited

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Thanks & Regards

CS Chandrashekhar

+91 9743148312

 

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[CS A Rengarajan]

please   note  only  company  based  applicability  not  on  holding  subsidiary  relationship

Act  is  very  clear  that  those  companies  fulfills  the  criteria, has to  comply  or  non  comply  the  provisions

regards

On Sat, Apr 19, 2014 at 10:08 AM, Deepesh Nayak <csdeepe...@gmail.com> wrote:

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CS A Rengarajan

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[Deepesh Nayak]

Thanks you so much sirs.

Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[VIJAY BAHETI]

Dear friend,

 

Act is very clear that, as per section

135.

(1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more

during any financial year shall constitute a Corporate Social Responsibility Committee.

 

If above condition is satisfied then only section 135 is applicable otherwise not.

[MOHIT SALUJA]

Dear Sir/ Madam

                         Greetings of the Day.

Can anyone explain what "Net profits of Rs. 5 crore or more IN ANY FINANCIAL YEAR" mean is???????????

Regards,
Mohit Saluja
Company Secretary
9914558709

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[Mahesh Shinde]

Even I am having the same question. What does 'any financial year' means? what is the applicability under these criteria, is it any FY after commencement of this act or companies which have earned NP of more than 5 cr in any FY at any point of time will fall under this criteria. 

Thanks & Regards,

Mahesh Shinde

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