Question

Consider the following statements regarding CSR in India:

1. CSR is legally mandated under the Companies Act, 2013 (Clause 135).

2. Companies must spend at least 5% of their average net profit of the past three years on CSR.

3. Activities exclusively benefiting company employees are not valid CSR initiatives.

• A. 1 and 2 only
• B. 1, 2 and 3
• C. 2 and 3 only
• D. 1 and 3 only

Answer 1

Answer:

D. 1 and 3 only

• The law mandates 2% spending of average profits on CSR, not 5%. Company-exclusive activities are excluded.