New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    The Board of every company referred to in section 135 (1), shall ensure that the company spends, in every financial year, at least two per cent of the average net profits of the company made during the _________________

    A Three financial year Correct Answer Incorrect Answer
    B Three immediately preceding calendar year Correct Answer Incorrect Answer
    C Three immediately preceding financial year Correct Answer Incorrect Answer
    D Five immediately preceding financial year Correct Answer Incorrect Answer
    E two immediately preceding financial year Correct Answer Incorrect Answer

    Solution

    Companies Act Section 135. Corporate Social Responsibility: (5) The Board of every company referred to in sub-section (1), shall ensure that the company spends, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial year, or where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy.

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