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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  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).

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