Home PYQs UPPSC UPPSC MCQs Prelims 2019 (GS Paper I)

Question

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 in the activities under CSR.

Select the correct answer using the codes given below:

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Answer:

Option D: Neither 1 nor 2

Detailed Solution:

The correct answer is “Neither 1 nor 2”.

The Companies Act that introduced mandatory CSR provisions is the Companies Act 2013.

Under the Companies Act 2013, companies are required to spend at least 2% of their average net profit of the last three years on CSR activities, not one percent.