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    Provisions under Companies Act, 2013


    1. CSR Committee (Section 135 of Companies Act 2013) 
    Every company having the following criteria shall contribute in every financial year, at least two per cent. Of the average net profits of the company made during the three immediately preceding financial years

    Net Worth: Rs. 500 Crores     Turnover: Rs. 1000 Crores          Profits: Rs. 5 Crores

    2. Audit Committee (Section 177 of Companies Act 2013)

    Every public company having the following criteria shall constitute an audit committee .The paid up share capital or turnover or outstanding loans, or borrowings or debentures or deposits, as the case may be, as existing on the date of last audited Financial Statements shall be taken into account for the purpose

    Paid up Capital: Rs. 10 Crores   Turnover: Rs. 100 Crores       O/s Loans: Rs. 50 Crores

    3. Nomination and Remuneration Committee (Section 177 of Companies Act 2013)

    The Board of Directors of every listed company and the companies under following criteria shall constitute the Nomination and Remuneration Committee consisting of three or more non-executive directors out of which not less than one-half shall be independent directors

    Paid up Capital: Rs. 100 Crores             O/s Loans: Rs.50 Crores

    4.  Vigil Mechanism (Section 177 of Companies Act 2013) 

    Every listed company or following class of companies, shall establish a vigil mechanism for directors and employees to report genuine concerns

    O/s Loans: Rs. 50 Crores

    5. CARO (Companies Auditor Report Order, 2016)

    It shall apply to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 (18 of 2013 except– 1. Insurance Companies 2. Banking Companies 3. Section -8 Companies  4. One Person Company and a Small Company   5. Private Company not being a holding or a subsidiary company of a public company having the Following criteria during the Financial Year as per the Financial Statements:

    Paid up Capital: Rs.1 Crore     Borrowings: Rs.1 crore           Profit: Rs. 10 Crores

    To know more about Various Committees and provisions under Companies Act, 2013 check:- https://lexcomply.com/blog/provisions-under-companies-act-2013/

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