A company incorporated in 2010, furnished the following information in respect of the financial years (FY) as detailed below: Item FY 2019-20 FY 2020-21 Fy 2021-22 Equity share capital 100 120 120 Preference share capita

According to Section 135(1) of the Companies Act, 2013, the CSR provision is applicable to companies which fulfill any of the following criteria during the immediately preceding financial year: Companies having a net worth of rupees 500 crore or more; or Companies having turnover of rupees 1000 crore or more; or Companies having a net profit of rupees 5 crore or more. According to Section 2(57), net worth means the aggregate value of the paid-up share capital and all reserves created out of profits and securities premium account after deducting the aggregate value of accumulated losses, deferred revenue expenditure and miscellaneous expenditure not written off (but does not include reserves created out of revaluation of assets, write back of depreciation and amalgamation). Computation of net worth and information of turnover and net profit is tabulated as below: Item FY 2019-20 FY 2020-21 FY 2021-22 Equity share capital 100 120 120 Preference share capital 140 140 140 General reserve 120 130 150 Revaluation reserves - - - Profit and loss account 14 24 34 Securities premium account 200 240 240 Net worth 574 654 684 Annual turnover 920 1040 400 Net profits 14 24 4 Eligibility u/s135 Yes Yes Yes As more than one condition viz., net worth or turnover or net profit is getting satisfied from FY 2019-20 onwards, the Board is required to constitute the CSR Committee from FY 2020-21 and onwards to formulate CSR Policy for approval by the Board and for recommending CSR projects. The minimum CSR spend for FY 2022-23 is two percent of average adjusted net profit for the last three financial years = (2% of (14+24+4)/3) = Rupees 28 lakhs in FY 2022-2023.