Amendment of section 135.
37. In section 135 of the principal Act,-
(i) in sub-section (1),-
(a) for the words "any financial year", the words "the immediately preceding financial year" shall be substituted;
(b) the following proviso shall be inserted, namely:-
"Provided that where a company is not required to appoint an independent director under sub-section (4) of section 149, it shall have in its Corporate Social Responsibility Committee two or more directors.";
(ii) in sub-section (3), in clause (a), for the words and figures "as specified in Schedule VII", the words and figures "in areas or subject, specified in Schedule VII" shall be substituted;
(iii) in sub-section (5), for the Explanation, the following Explanation shall be substituted, namely:-
'Explanation.-For the purposes of this section "net profit" shall not include such sums as may be prescribed, and shall be calculated in accordance with the provisions of section 198.'.
