Multiple Choice Questions on With reference to the Corporate Social Responsibility CSR in India consider the following statements........... for Combined State Civil Services Preparation

Back to Main Page

Multiple Choice Questions

With reference to the Corporate Social Responsibility CSR in India consider the following statements...........

Indian Economic System(CSC) Agriculture
    Download Solution PDF

    With reference to the Corporate Social Responsibility (CSR) in India, consider the following statements

    1. It is mandatory for companies meeting certain financial thresholds.

    2. Eligible companies must spend 2% of average net profits on CSR activities.

    3. Agriculture is one of the focus areas for CSR activities listed under Schedule VII of the Companies Act, 2013.

    4. Securities and Exchange Board of India (SEBI) is responsible for tracking CSR-related expenditure by eligible companies.

    How many of the statements given above are correct?

    Only One

    Incorrect Answer

    Only Two

    Correct Answer

    Only Three

    Incorrect Answer

    All Four

    Incorrect Answer
    छोटे Courses बड़े Results
    Master Agriculture
    Prepare through Micro-courses
    Try Now
    Explanation:
    • Statements 1 and 2 are correct. According to Section 135 of the Companies Act, 2013, companies that meet specific financial criteria (net worth of Rs 500 crore or more, turnover of Rs 1,000 crore or more, or net profit of Rs 5 crore or more) are required to spend on CSR activities. Companies that meet the financial thresholds must spend at least 2% of their average net profits from the preceding three financial years on CSR activities.

    • Statements 3 and 4 are incorrect. Agriculture is not explicitly listed as a separate focus area under Schedule VII of the Companies Act for CSR activities. However, CSR can indirectly support agriculture through related areas like environmental sustainability, rural development, and livelihood enhancement projects. The Ministry of Corporate Affairs (MCA) oversees and tracks CSR-related expenditures by eligible companies under the Companies Act, 2013.

    Hence option 2nd is correct.

    By: Shubham Tiwari
    ProfileResources

    Let's Discuss

    Master
    Agriculture
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free