Scenario on Corporate Social Responsibility and Internal Audit Requirements
Vayu Logistics Limited, an unlisted public company incorporated in India, presents its financial highlights for the preceding financial years: For FY 2022-23, Net Worth was ₹450 crore, Turnover was ₹950 crore, and Net Profit was ₹4.2 crore. For FY 2023-24, Net Worth reached ₹520 crore, Turnover was ₹1,050 crore, and Net Profit was ₹6.0 crore. For FY 2024-25, Net Worth was ₹510 crore, Turnover was ₹980 crore, and Net Profit was ₹4.5 crore. The company did not have any outstanding loans or borrowings from banks or public financial institutions exceeding ₹100 crore during FY 2024-25, nor did its public deposits exceed ₹25 crore. During FY 2025-26, the Board of Directors constituted a Corporate Social Responsibility (CSR) Committee consisting of three directors, including one independent director. On 15th April 2025, the Board was reviewing its obligations under Section 135 and Section 138 of the Companies Act, 2013 for FY 2025-26. The CFO placed a note stating that the company is required to spend 2% of average net profits on CSR, and also needs to appoint an internal auditor. The Board seeks legal clarification regarding the applicability and exact statutory compliance needed for FY 2025-26.
