Section 135 (5)The Board of every company referred to in sub-section (1), shall ensure that the
company spends, 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, in pursuance of
its Corporate Social Responsibility Policy:
Suppose a company has suffered losses in preceding 2 yrs but have earned profits only in the 3 rd year, in such a cenario whether the company shall be allowed to setoff these losses while calculating average net profit.
The section says Avg Net profit it does says losses.
Please suggest and support your answer with judgements.
