A Ltd Made contribution to political parties as follows 1 Flower Hand Broom FHB Party Rs 100000 2 Ad...........

Companies Act-Phase (I & II) Board-powersandMeetings

A. Ltd. Made contribution to political parties as follows:

1. Flower Hand Broom(FHB) Party Rs. 100000/-

2. Advertisement in the ‘Socialist’ a pamphlet being issued at rallies by FHB Party Rs 10000/-.

3. Advertisement in ‘Social Soldier’ a brochure chronicling left-leaning seminars, printed by Mr. Leftist, whose philosophies glorify FHB Party . Rs 5000/-.

The P&L discloses the Contribution to political parties u/s 182 as Rs 100000/- and Advertisement as 15000/- . Is the disclosure in line with Sec 182 of Companies Act?

Yes, as only direct contributions to political parties are covered in Sec 182

No, as the Contribution in 1. and 2. above are covered in Sec 182 so amount shall be 110000/-

No, as the Contribution in 1. 2. and 3. above are covered in Sec 182 so amount shall be 115000/-

No, as all the amount shall be mandatorily classified as Advertisement Expenditure as stipulated by Companies Act, 2013

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Explanation:

According to Sec 182 (3) Every company shall disclose in its profit and loss account any amount or amounts contributed by it to any political party during the financial year to which that account relates, giving particulars of the total amount contributed and the name of the party to which such amount has been contributed.