Question
Which section of the Companies Act 2013 deals with the
provisions of Corporate Social Responsibility? Refer to the following information to answer the next 4 questions (Q 11 to Q 14) The Companies Act 2013 had introduced several new provisions which changed the face of Indian corporate business. One of such new provisions was the Corporate Social Responsibility (CSR). The concept of CSR rests on the ideology of give and take. Companies take resources in the form of raw materials, human resources etc. from the society. By performing the task of CSR activities, the companies are giving something back to the society. CSR is the integration of socially beneficial programs and practices into a corporation's business model and culture. India is one of the first countries in the world to make CSR mandatory for companies following an amendment to the Companies Act, 2013 in 2014. Under the Companies Act, businesses can invest their profits in areas such as promoting rural development in terms of healthcare, sanitation, education including skill development, environmental sustainability, etc.Solution
The CSR provisions are covered under Section 135 and Schedule VII of the Companies Act, 2013. As per the provisions of this section, a Company having Net worth of · Rs.500 crore or more, or · Turnover of Rs.1000 crore or more or · net profit of Rs.5 crore or more in previous financial year, should: · Constitute a CSR Committee (consisting of 3 or more directors of which at least 1 is independent director) and · spend at least 2% of the average net profits of three immediately preceding years on CSR activities (companies which spend any amount in excess of their CSR obligation in a financial year can set off the excess amount towards their CSR obligations in subsequent financial years).
A company has net profits of ₹50 lakhs. What is the maximum remuneration payable to a single whole-time director without Central Government approval u...
Which accounting standard provides guidance on how to account for foreign currency transactions and the effects of changes in foreign exchange rates on...
In the context of GeM, what is the full form of ‘PAC’?
What is the maximum number of people that can be offered securities for subscription through private placement in a single financial year?
What is the threshold limit for deduction of tax at source for the dividends subject to DDT under Section 115-0?
Under the MUDRA scheme, a loan of up to ₹50,000 is categorized under which product?
Debentures of ₹5,00,000 are redeemed at 5% premium. Redemption fund has ₹4,50,000. Balance is met by fresh issue of equity shares. Fresh issue requi...
In relation to Accounting for Investments, which of the following statements is/are correct?
Statement-1: The carrying amount for long-term inves...
Which of the following formulae is correct for calculation of Cost of Goods Sold?
Under Ind AS 115, a construction company enters into a contract to build a dam over 4 years. Revenue is recognized over time based on cost incurred to d...
