TMI Blog2018 (7) TMI 2027X X X X Extracts X X X X X X X X Extracts X X X X ..... ior 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. - CP/270/(131)/2018 - - - Dated:- 20-7-2018 - K. ANANTHA PADMANABHASWAMY, MEMBER (J) ANDS. VIJAYARAGHAVAN, MEMBER (TECHNICAL) For the Petitioner : Shri S. Ramachandran, CA , S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) In the Counter filed by the ROC it has been stated that the petition is not maintainable as ignorance of law is no excuse. Further the respondent disagrees with the contention of the petitioner that even if the petitioner falls within the purview of Sec 135(1) of the Companies Act, 2013 since the Average Profit for the 3 preceding financial years were negative it was not attracted by the provisions of Section 135. In this regard the petitioner has relied on the explanation to sec 135 in the Companies Act, 2013 which states that the average net profit shall be calculated as per section 198 of the act and that the petitioner has failed to note the contents of sec 198(4)(1) of the Companies Act, 2013 provides for the period from the deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 131 Voluntary revision of financial statements or Board's Report 01.06.2016 As per the table given above, the Section 135 itself was notified only on 01.04.2014 whereas the financial year in which the Petitioner Company have made a net profit of over ₹ 5 crores ended on 31.03.2014. The books of accounts have been closed on 31.03.2014 i.e. prior to the date of enforcement of Corporate Social Responsibility i.e. 01.04.2014. 7) 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 sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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