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. Companies with more than 500 employees
B. All listed companies
C. Only government companies
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.

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Practice More Accountancy and Book Keeping Questions

Question #1
A petty cash voucher is authorized by:
A. The payee
B. The bank manager
C. The external auditor
D. The petty cashier or an authorized manager

Correct Answer: Option D


Explanation:
For internal control, petty cash vouchers must be authorized by a responsible official before disbursement is made.

Question #2
The 'Expected Credit Loss' for trade receivables:
A. Always requires 12-month ECL
B. No impairment
C. Can use simplified approach (lifetime ECL) if there is no significant financing component
D. Only when default occurs

Correct Answer: Option C


Explanation:
Ind AS 109 allows the simplified approach for trade receivables and contract assets.

Question #3
Under the Income Tax Act, the deduction under Section 80C has a maximum limit of ₹1,50,000. Which of the following is NOT eligible for deduction under Section 80C?
A. National Pension System (NPS) Tier-I
B. Public Provident Fund (PPF)
C. Equity Linked Savings Scheme (ELSS) Mutual Funds
D. Life Insurance Premium

Correct Answer: Option A


Explanation:
Contributions to NPS Tier-I are eligible for deduction under Section 80CCD(1) (within the 80C limit) and an additional ₹50,000 under 80CCD(1B). However, the question asks what is not eligible *under 80C specifically*. Actually, NPS Tier 1 is under 80CCD. Let me rephrase to be precise.