In what way does the Companies Act, 2013 regulate the payment made by companies towards contribution to political parties for political purposes? Explain.

Section 182 of the Companies Act, 2013 provides for prohibitions and restrictions on the political contributions. A company other than Government company or The company which has been in existence less than three financial years, may contribute any amount directly or indirectly to any political party. Further, the aggregate amount of contribution by a company in any financial year to political parties shall not exceed seven and half per cent (7.5%) of the average net profits during three immediately preceding financial years. The contribution must be authorized by the Board in its meeting by resolution and such resolution deemed to be the justification in law for such contribution. The company is required to disclose in its profit and loss account any amount or amount contributed by it to any political, party during the financial year and the particular of total, amount contributed and the name of political party to whom the contribution so made. Where a company makes any contribution in contravention of the provisions of this section, the company shall be punishable with fine which may extend to five times the amount so contributed and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months and with fine which may extend to five times the amount so contributed.