Fashion SpA is a Company incorporated in Italy, having a place of business in Mumbai for the conduct of its business. For the year ended March 2018, Fashion SpA filed their financial statements with the ROC in compliance

Section 135 of the Companies Act, 2013 provides the threshold limits for a company to get attracted by the CSR provisions as turnover of ₹1,000 Crore or more, net worth of ₹500 Crore or more and net profit of ₹5 Crore or more. Rule 3 of the Companies (CSR Policy) Rules 2014 further clarifies that Section 135 shall be applicable to a foreign company defined under Section 2(42) of the Act and the threshold numbers for testing the applicability of Section 135 shall be as per the financial statements filed by the foreign company under Section 381 of the Act. Thus, Fashion SpA attracts the provisions of Section 135 as they are above the threshold limit (Turnover ₹1,200 Crore > ₹1,000 Crore; Net Profit ₹49 Crore > ₹5 Crore). Therefore, the Company has to: Form a CSR Committee in line with the provisions. Frame the CSR policy. Spend at least 2% of the average profits of the Company for the preceding three financial years. The net profit for the purpose shall be computed in line with Section 198 of the Act.