{"id":2428,"date":"2025-05-01T20:09:38","date_gmt":"2025-05-01T14:39:38","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=2428"},"modified":"2025-05-01T20:09:39","modified_gmt":"2025-05-01T14:39:39","slug":"q-with-reference-to-corporate-social-responsibility-csr-rules-in-india-consider-the-following-statements","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-with-reference-to-corporate-social-responsibility-csr-rules-in-india-consider-the-following-statements","title":{"rendered":"Q. With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements :"},"content":{"rendered":"\n
    \n
  1. CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.<\/li>\n\n\n\n
  2. CSR rules\u00a0do not specify\u00a0<\/strong>minimum spending on CSR activities.<\/li>\n<\/ol>\n\n\n\n

    Which of the statements given above is\/are correct?<\/p>\n\n\n\n

      \n
    • 1 only<\/li>\n\n\n\n
    • 2 only<\/li>\n\n\n\n
    • Both 1 and 2<\/li>\n\n\n\n
    • Neither 1 nor 2<\/li>\n<\/ul>\n\n\n\n
      \n

      Answer: (a) 1 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n

      Corporate Social Responsibility (CSR)<\/h5>\n\n\n\n
        \n
      • Corporate Social Responsibility (CSR)<\/strong>\u00a0is a business model where companies voluntarily integrate\u00a0social, environmental, and ethical considerations\u00a0<\/strong>into their operations and interactions with stakeholders.\n
          \n
        • CSR aims to make businesses accountable for their impact on society\u00a0beyond just profit, focusing on sustainable development,\u00a0<\/strong>community welfare, and ethical practices.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • CSR under the Companies Act, 2013<\/strong>:\n
            \n
          • CSR provisions under\u00a0Section 135<\/strong>\u00a0of the\u00a0Companies Act, 2013<\/strong>, became effective from\u00a0April 1, 2014<\/strong>.\u00a0<\/li>\n\n\n\n
          • These provisions reflect India\u2019s commitment to\u00a0inclusive growth<\/strong>\u00a0by mandating corporate contributions towards social, environmental, and human development.\u00a0<\/li>\n\n\n\n
          • CSR provisions apply to companies meeting any of the following criteria in the preceding financial year:<\/strong>\n
              \n
            • Net worth:<\/strong>\u00a0More than INR \u20b9500 crore.\u00a0<\/li>\n\n\n\n
            • Turnover<\/strong>: More than INR \u20b91,000 crore.\u00a0<\/li>\n\n\n\n
            • Net profit<\/strong>: More than INR \u20b95 crore.\u00a0<\/li>\n\n\n\n
            • Such companies must spend a minimum of\u00a02% of their net profit over the last 3 years on CSR activities.<\/strong>\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • Penal Provisions:<\/strong>\u00a0If a company fails to meet CSR obligations,\u00a0it faces fines ranging from \u20b950,000 to \u20b925 lakh<\/strong>. Responsible officers may face imprisonment (up to three years), fines between \u20b950,000-\u20b95 lakh, or both.\n
                \n
              • 2019 Amendment:<\/strong>\n
                  \n
                • Prior to 2019, unspent CSR funds could be carried forward to the next fiscal.<\/li>\n\n\n\n
                • Post-amendment,\u00a0unspent funds must be transferred to a specified Schedule VII fund by the end of the fiscal year and utilized within three years<\/strong>, failing which, they must be deposited in a government-specified fund.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n
                  \n
                  \"CSR<\/figure>\n<\/div>\n\n\n

                  <\/p>\n","protected":false},"excerpt":{"rendered":"

                  Which of the statements given above is\/are correct? Answer: (a) 1 only Corporate Social Responsibility (CSR)<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[49],"class_list":["post-2428","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-49"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":49,"label":"2024"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=2428"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/2428\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=2428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=2428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=2428"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=2428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}