Shivam Singhal

Proviso to Rule 3(1) of the Companies (CSR policy) Rules, 2014 clearly said that every company which ceases to be a company covered under section 135(1) of the Companies Act, 2013 for three (3) consecutive financial years shall not required to constitute a CSR Committee and also not required to comply with other Sub-sections of Section 135 (i.e. CSR provisions). and MCA also give their clarification through Circular No. 21/2014 dated 18.06.2014 (in point no. V) that "Any financial year" referred under section 135(1) read with Rule 3(2) of the Companies (CSR Policy) Rules, 2014, implies 'any of the three preceding financial year' and in your case, the company earned a profit of more than Rs. 5 crore in the Financial year 2012-13. so, in my point of view, CSR provisions is applicable on the company for the F.Y 2013-14, 2014-15, 2015-16 not for F.Y. 2016-17.