Home Case Index All Cases Companies Law Companies Law + Tri Companies Law - 2018 (7) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 2027 - Tri - Companies LawCorporate Social Responsibility (CSR) - failure to set apart an amount for CSR spending - average net profit u/s 135(5) is negative - Approval for revision of Board's Report - applicability of provisions of Section 135 of the Companies Act, 2013 - financial year 2014-15. HELD THAT:- The method of calculating the net profit is mentioned in section 198 by which the calculation for arriving at the average net profit is applicable from the FY 2014-15 is also mentioned. It is seen that subsection 4 of section 198 does not mention about taking into account the losses during the financial year prior to the commencement of this Act. However, there is no mention about excluding profit also for calculation of average net profit. In view of this the Tribunal is of the opinion that the petitioner company is liable to spend the amount on account of CSR for the FY 2014-15 taking into account only the net profit before tax for the FY 2013-14. The Company is directed to adhere to the other provisions of section 135 regarding constitution of the Board' s committee on CSR and evolving a policy for implementing the same. Petition disposed off.
|