DEF Traders Ltd. is incorporated as a small company. State with reference to the relevant legal provisions whether it is required to set up a Corporate Social Responsibility Committee?

According to Section 135 of the Companies Act, 2013, only the following companies are required to constitute a Corporate Social Responsibility Committee which in the immediately preceding financial year have: Net worth of ₹500 crore or more; or Turnover of ₹1000 crore or more; or Net profit of ₹5 crore or more A small company is defined in section 2(85) of the Companies Act, 2013 to mean a company, other than a public company whose: Paid up share capital does not exceed ₹50 Lakh or such higher amount as may be prescribed which shall not be more than ₹10 crore and Turnover of which as per profit and loss account for the immediately preceding financial year does not exceed ₹2 crore or such higher amount as may be prescribed which shall not be more than ₹100 crore. As DEF Traders Ltd. is incorporated as small company, it does not meet the criteria specified in section 135 of the Companies Act, 2013 and would, therefore not be required to constitute a Corporate Social Responsibility Committee.