2. Definitions
(1) In these rules, unless the context otherwise requires, -
(a) “Act” means the Companies Act, 2013;
(b) “Annexure” means the Annexure appended to these rules;
(c) “Corporate Social Responsibility (CSR)” means and includes but is not limited to :-
(i) Projects or programs relating to activities specified in Schedule VII to the Act; or
(ii) Projects or programs relating to activities undertaken by the board of directors of a company (Board) in pursuance of recommendations of the CSR Committee of the Board as per declared CSR Policy of the company subject to the condition that such policy will cover subjects enumerated in Schedule VII of the Act.
(d) “CSR Committee” means the Corporate Social Responsibility Committee of the Board referred to in section 135 of the Act.
(e) “CSR Policy” relates to the activities to be undertaken by the company as specified in Schedule VII to the Act and the expenditure thereon, excluding activities undertaken in pursuance of normal course of business of a company;
(f) “Net profit” means the net profit of a company as per its financial statement prepared in accordance with the applicable provisions of the Act, but shall not include the following, namely :-
(i). any profit arising from any overseas branch or branches of the company, whether operated as .a separate company or otherwise; and
(ii) any dividend received from other companies in India, which. Are covered under and complying with the provisions of section135 of the Act:
Provided that net profit in respect of a financial year for which the relevant financial -statements were prepared in accordance with the provisions of the Companies Act, 1956 (1 to 1956) shall not be required to bere-calculated in accordance with the provisions of the Act:
Provided further that in case of a foreign company covered under these rules, net profit means the net profit of such company as per profit and loss account prepared in terms of clause (a) of sub-section (1) of section 381 read with section 198 of the Act.
(2) Words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act. |