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(c) Royal Ltd. is a company which has a net worth of 200 crore engaged in the manufacturing of rubber products. The sales of the company are badly affected due to pandemic during the Financial year 2019-2020. Relevant financial details of the following financial years are as follows: (in crore) Particulars 31 March 2020 (Current 31 March 31 March 31 March year) estimated 2019 2018 2017 Net Profit 3.00 8.50 4.00 3.00 Sales (turnover) 850 950 900 During the pandemic period (till 31 March 2020) various commercial activities were undertaken with considerable concessions/discounts, along the related affected areas. The management intends to highlight the expenditure incurred on such activities as expenditure incurred, on activities undertaken to discharge corporate social responsibility, while publishing its financial statements for the year 2019-2020. You are requested to advise CFO of Royal Ltd on the below points along with reasons for 800 your advise: (1) Whether the Company has an obligation to form a CSR committee since the applicability criteria are not satisfied in the current financial year? (ii) The accounting of expenditure during the pandemic period is to be treated as expenditure on CSR in the financial statement according to the view of the accountant of the company

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