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According to the Ministry of Corporate Affairs' clarification on CSR, how should the entries in Schedule VII to the Companies Act, 2013 be read?

Question and options

According to the Ministry of Corporate Affairs' clarification on CSR, how should the entries in Schedule VII to the Companies Act, 2013 be read?

  1. Strictly, so that an activity must be named in an entry

  2. Narrowly, confined to government-run programmes

  3. Liberally, so as to capture the essence of the subjects listed

  4. As a closed list, read with projects pre-approved by the Ministry

Answer and explanation

Correct answer: C - Liberally, so as to capture the essence of the subjects listed

General Circular 21/2014 of the Ministry of Corporate Affairs (18 June 2014) says the entries in Schedule VII must be interpreted liberally so as to capture the essence of the subjects enumerated; its CSR FAQs repeat this. An activity must still be relatable to an entry, but it need not be named word for word. The Ministry does not pre-approve projects, and CSR is not confined to government programmes.

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