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3. Corporate Social Responsibility.

(1) Every company including its holding or subsidiary, and a foreign company defined under clause (42) of section 2 of the Act having its branch office or project office in India, which fulfills the criteria specified in sub-section (I) of section 135 of the Act shall comply with the provisions of section 135 of the Act and these rules:

Provided that net worth, turnover or net profit. of a foreign company of the Act shall be computed in accordance with balance sheet and Profit and loss account of such company prepared in accordance .with the provisions of clause (a) of sub-section (1) of section 381 and section 198 of the Act

(2) Every company which ceases to be a company covered under subsection (1) of section 135 of the Act for three consecutive financial years shall not be required to -

(a) constitute a CSR Committee; and

(b) comply with the provisions contained in 1[sub-section (2) to (6)] of the said section,

till such time it meets the criteria specified in sub-section (1) of section 135.

 

Amendments

1. Substituted by The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 Dated 22.01.2021    Amendment effective from 22nd January 2021

In sub-rule (2), in clause (b), for the words, brackets and figure-

sub-section (2) to (5)

the following shall be substituted namely-

“sub-section (2) to (6)”