The financial particulars of ABC Limited in respect of immediately preceding financial year are as under: S. No. Particulars Amount in ₹ crore 1 Net…

CA Intermediate · Corporate and Other Laws · MTP · May 2024
The financial particulars of ABC Limited in respect of immediately preceding financial year are as under: S. No. Particulars Amount in ₹ crore 1 Net worth 280 2 Turnover 550 3 Net Profit 5.50 4 Borrowings 60 Choose the correct option in terms that whether the provisions of Corporate Social Responsibility are applicable to ABC Limited.
(A) No, as ABC Limited is having net worth of more than 250 crore in the immediately preceding financial year.
(B) Yes, as ABC Limited is having turnover of more than 500 crore but less than 800 crore in the immediately preceding financial year.
(C) Yes, as ABC Limited is having net profit of more than 5 crore in the immediately preceding financial year.
(D) Yes, as ABC Limited is having loans and borrowings of more than 50 crore in the immediately preceding financial year.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

Yes, as ABC Limited is having net profit of more than 5 crore in the immediately preceding financial year.

Topics: Accounts of Companies

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