Rule 3(1) of Companies (CSR Policy) Rules, 2014 provides that every company including its holding or subsidiary which fulfils the criteria specified in sub-section (l) of section 135 of the Act with regard to turnover or net profit shall comply with the provisions of section 135 of the Act and these rules.
As per section 135(1), every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director. The criterion needs to be fulfilled by individual company.
Therefore, if the holding company or the subsidiary company themselves fulfils the criteria specified in Section 135, all the provisions mentioned therein become applicable to such company.
Merely being a holding or subsidiary company of a company which fulfils the criteria under section 135(1) does not make the company liable to comply with section 135, unless the company itself fulfils the criteria