Which section of the Companies Act, 2013 deals with corporate social responsibility?
Section 135 of the Companies Act, 2013 requires every company with a net worth of Rs. 500 crore or more, turnover of Rs. 1,000 crore or more, or net profit of Rs. 5 crore or…
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Which section of the Companies Act, 2013 deals with corporate social responsibility?
Answer and explanation
Correct answer C
Section 135 of the Companies Act, 2013 requires every company with a net worth of Rs. 500 crore or more, turnover of Rs. 1,000 crore or more, or net profit of Rs. 5 crore or more to form a CSR committee and spend at least 2% of its average net profits of the three preceding years on CSR activities listed in Schedule VII. Section 134 deals with the Board's report, which only discloses CSR policy, and section 133 empowers the Central Government to prescribe accounting standards.
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