Under section 135 of the Companies Act, 2013, an eligible company must spend at least ________ of its…
Section 135(5) of the Companies Act, 2013 requires the Board of every company covered by the CSR provisions to ensure that the company spends at least 2% of its average net…
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Under section 135 of the Companies Act, 2013, an eligible company must spend at least ________ of its average net profit of the three immediately preceding financial years on Corporate Social Responsibility activities.
Answer and explanation
Correct answer A
Section 135(5) of the Companies Act, 2013 requires the Board of every company covered by the CSR provisions to ensure that the company spends at least 2% of its average net profits made during the three immediately preceding financial years on its CSR policy. The lower percentages have no basis in the Act; unspent amounts must be transferred to a specified fund or an Unspent CSR Account rather than being reduced.
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Gujarat SET (GSET)