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:

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.