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namangandhi   26 July 2016

Section 135 of companies act 2013-csr

Section 135 (5)The Board of every company referred to in sub-section (1), shall ensure that the

company spends, in every financial year, at least two per cent. of the average net profits of

the company made during the three immediately preceding financial years, in pursuance of

its Corporate Social Responsibility Policy:

Suppose a company has suffered losses in preceding 2 yrs but have earned profits only in the 3 rd year, in such a cenario whether the company shall be allowed to setoff these losses while calculating average net profit.

The section says Avg Net profit it does says losses.

Please suggest and support your answer with judgements.

 

 

 



Learning

 3 Replies

adv.bharat @ PUNE (Lawyer)     27 July 2016

Yes sir u can get set off for the losses that you had suffered. Net profit means after deducting loss.

Law Aspire (Legal)     30 July 2016

I agree with Advocate Bharat.

Law Aspire (Legal)     30 July 2016

I agree with Advocate Bharat.


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