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    Question

    Which section of the Companies Act 2013 deals with the

    provisions of Corporate Social Responsibility?
    A Section 135 Correct Answer Incorrect Answer
    B Section 136 Correct Answer Incorrect Answer
    C Section 137 Correct Answer Incorrect Answer
    D Section 138 Correct Answer Incorrect Answer
    E Section 139 Correct Answer Incorrect Answer

    Solution

    The CSR provisions are covered under Section 135 聽and聽 Schedule VII 聽of the Companies Act, 2013.聽 As per the provisions of this section, a Company having Net worth of 路聽聽聽聽聽聽聽聽 Rs.500 crore or more, or 路聽聽聽聽聽聽聽聽 Turnover of Rs.1000 crore or more or 路聽聽聽聽聽聽聽聽 net profit of Rs.5 crore or more in previous financial year, should: 路聽聽聽聽聽聽聽聽 Constitute a CSR Committee (consisting of 3 or more directors of which at least 1 is independent director) and 路聽聽聽聽聽聽聽聽 spend at least 2%聽of the average net profits of three immediately preceding years on CSR activities (companies聽which spend any amount in excess 聽of their CSR obligation in a financial year can聽set off the excess amount towards their CSR 聽obligations in subsequent financial years).

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