IN RE Vs. RADHE INSTRUMENTATION PRIVATE LIMITED

JUDGEMENT

(1.) This Compounding Application was filed before the Registrar of Companies, Mumbai (hereinafter as RoC) and the same has been forwarded to the NCLT, Mumbai on 24th August. 2017 alongwith the Report bearing no. ROCP/STA/441/CSR-548/141 (hereinafter as RoC Report) .

(2.) The Learned RoC has informed that, this application was filed because the Company has violated the provision of S. 134 (3) (o) of the Companies Act, 2013 (hereinafter as Act) r.w. Rule 8 of Companies (Corporate Social Responsibility Policy) Rules, 2014 for the Financial Year 2014-2015. It is further informed that the Company had to spend Rs.8,26,672/- towards the CSR contribution in the F. Y. 2014-15 but the Company failed to do so.

(3.) According to the provision of S. 134 (3) (o) provides that, if company fails to comply with the provision of S. 135 (5) , then the Board in its report shall specify the reasons for not spending the amount. Further, according to the provision of S. 135 (5) of the Act, the Board of Company was required to spend, in every financial year, at least 2% of the average net profit of the Company during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility (CSR) policy, applicable to every company having net worth of Rs. Five Hundred Crore or more, or turnover of Rs. one thousand crore or more, or having net profit of Rs. Five Crore or more. during Financial Year. But the Defaulters herein, neither spend the CSR amount as per S. 135 (5) of the Act nor they have complied with the provision of S. 134 (3) (o) of the Act. Hence, this Compounding Application has been filed by the Applicants/Defaulters herein so as to put the matter at rest.