Q148 · UPPSC Prelims 2019 · Set A · General Studies

← Q147 Q149 →

With reference to the Corporate Social Responsibility (CSR),which of the statements is/are correct?1.Companies Act 2014 introduces mandatory CSR.2.Companies covered under this will have to spend at least one percent of their annual net profit on CSR activities.Select the correct answer using the codes given below:

A Only 1
B Only 2
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (d) Neither 1 nor 2

Explanation

  1. A

    Only 1

    (a) Only 1. Statement 1 is wrong: mandatory CSR is the Companies Act, 2013 (Section 135), not a 2014 Act.

  2. B

    Only 2

    (b) Only 2. Statement 2 is wrong: the spend floor is two percent of average net profit, not one percent.

  3. C

    Both 1 and 2

    (c) Both 1 and 2. Both the year and the percentage are false, so both cannot be correct.

  4. D

    Neither 1 nor 2

    (d) Neither 1 nor 2. 2014 and one percent are both inaccurate; 2013 and two percent are the statute. (d) Official key.

Summary. Official key is (d). CSR is mandatory under the Companies Act 2013 at two percent of average net profits for covered companies—not a 2014 Act and not one percent.

Same topic · past papers

UPPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2023 · Q13 · UPPGS

    With reference to the composition of the Legislative Council in a State of India, which of the following statement(s) is/are correct? (1) In the Legislative Council there may not be more than one-third members of the total membership of the Legislative Assembly of that State. (2) The Legislative Council of a State must have at least forty members in it. Select the correct answer from the code given below:

    View answer →

PDF