Under the Companies Act 2013, which of the following companies are mandatorily required to constitute a CSR Committee? MCQ with Answer and Explanation

Under the Companies Act 2013, which of the following companies are mandatorily required to constitute a CSR Committee?
A. Only government companies
B. All listed companies
C. Companies with more than 500 employees
D. Companies meeting any of the specified net worth, turnover, or net profit criteria during the immediately preceding financial year
Answer: Option D
Solution (By JKSSB Mock Tests)
Section 135 mandates a CSR Committee for companies that meet specific thresholds of net worth (₹500 Cr+), turnover (₹1000 Cr+), or net profit (₹5 Cr+) in the preceding financial year.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
The CAG's audit report on government accounts is submitted to:
A. Finance Minister
B. President / Governor
C. Prime Minister
D. Lok Sabha directly

Correct Answer: Option B


Explanation:
CAG submits reports to the President (Union) or Governor (State), who cause them to be laid before Parliament/Legislature.

Question #2
The 'Input Tax Credit' on capital goods under GST is available:
A. Spread over the useful life
B. 100% in the first year
C. Only on goods up to ₹5,000
D. Not allowed

Correct Answer: Option B


Explanation:
ITC on capital goods can be availed fully in the year of purchase, except for certain blocked credits.

Question #3
S1: In marginal costing, the Margin of Safety can be calculated as (Profit / P/V Ratio). S2: If the P/V ratio is 40% and the Margin of Safety is ₹50,000, the profit is ₹20,000. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Both S1 and S2
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
Margin of Safety = Profit / P/V Ratio. If MOS is 50,000 and P/V is 40%, Profit = 50,000 * 0.40 = ₹20,000. Both statements are mathematically and conceptually correct.