Ina Malhotra, Member - (1.) This petition has been filed u/s 441 of the Companies Act, 1956 praying for compounding of the offence u/s 134(3) (o) of the Companies Act. As per Statutory requirements, the company was required to disclose in its Director's Report, the details of the CSR Policy developed and implemented during the year. A CSR Committee was also required to be constituted for this purpose. The said period of default is for the Financial year 2014-2015.
(2.) As per the provision of Section 135(5) of the Companies Act, 2013: " Every Company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director." The requirement of Section 134(3) (o) of the Companies Act, 2013 is that :- " There shall be attached to statements laid before a company in general meeting, a report by its Board of Directors, which shall include the details about the policy developed and implemented by the company on corporate social responsibility initiatives taken during the year"
(3.) The petitioner's case is that as the aforesaid provisions became applicable for the first time in the Financial year 2014-2015 itself, "there was lack of clarity, moreso on account of the various notifications issued from time to time. The default has since been made good as the CSR committee has been duly constituted and CSR Policy has been framed and its disclosure made in the Director's Report for the year 2015-2016.;