Trump Inc. a foreign Company has establishment in India to carry out execution of an infrastructure Project in India. Are the provisions with regard to CSR applicable to foreign companies ? Elaborate.

In terms of Rule 3(1) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, a foreign company defined under clause (42) of section 2 of the Companies Act, 2013, having its Branch office or project office in India which fulfils the criteria specified in Section 135(1) of the Companies Act, 2013 is required to comply with the provisions of Section 135 of the Companies Act, 2013 and the Rules made there under. The net-worth, turnover or net profit of a foreign company is to be computed in accordance with the balance sheet and profit and loss account of the foreign company prepared with respect to its Indian business operations in accordance with the provisions of clause (a) of sub-section (1) of section 381 and section 198 of the Companies Act, 2013 for each financial year. Therefore, Trump Inc., a foreign company having its branch office or project office in India, if it fulfils the criteria specified under section 135(1) is required to constitute a CSR Committee and comply with Section 135 inter alia requiring the spending, in every financial year, 2% of average net profits of the company made during the three immediately preceding financial years as per financial statement of its Indian business operations in CSR activities in India.