Moon Oil Exploration Ltd. (MOEL) was incorporated on 1st June 2007 and the company made a considerable amount of profit in the past years: Financial Year Net Profit 2016-17 ₹25 Crore 2017-18 ₹10 Crore 2018-19 ₹12 Crore.
CS Executive · Company Law · PYQS · December 2019
Moon Oil Exploration Ltd. (MOEL) was incorporated on 1st June 2007 and the company made a considerable amount of profit in the past years: Financial Year Net Profit 2016-17 ₹25 Crore 2017-18 ₹10 Crore 2018-19 ₹12 Crore. If MOEL had contributed to political parties earlier to the year 2017, how much could it have contributed at the maximum during those years?
Answer & Explanation:
Further, prior to the amendment to Section 182 by the Finance Act, 2017, the limit of contribution to political parties was 7.5% of the average net profits during the three immediately preceding financial years. Hence, earlier to 2017, it can have contributed only 7.5% of average net profits at the maximum.
Topics: Company Law
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