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 shell 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[Provided further that a company having any amount in its Unspent Corporate Social Responsibility Account as per sub-section (6) of section 135 shall constitute a CSR Committee and comply with the provisions contained in sub-sections (2) to (6) of the said section.]

³[(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)”

2. Inserted by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022. Amendment effective from 20th September 2022

3. Omitted by the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022. Amendment effective from 20th September 2022