Unit VI · Topic 10Corporate social responsibility – Previous Year Questions

5 previous year questions on Corporate social responsibility from UGC NET Law papers (2019–2025). The correct option is marked in green.

Questions

5 questions

2019

Which section of the Companies Act, 2013 deals with corporate social responsibility?

  1. (a)Section 133
  2. (b)Section 134
  3. (c)Section 135✓
  4. (d)Section 136
Answer & explanation

Ans. (c) : Section 135 Explanation: Section 135 of the Companies Act, 2013 provides for Corporate Social Responsibility.

2019

Which of the following activities cannot be considered as relating to social responsibility under Section 135 of the Companies Act, 2013?

  1. (a)Amount spent on activities which only benefit the employees of the company
  2. (b)Amount spent to benefit people who are not economically backward
  3. (c)Amount spent on activities which only benefit the consumers of the organisation✓
  4. (d)Amount spent on activities which only benefit the supplier of the organisation
Answer & explanation

Ans. (c) : Amount spent on activities which only benefit the consumers of the organisation Explanation: Section 135 of the Companies Act, 2013 provides for social responsibility. Under its duties — (1) Amount spent on activities which benefit only the company's employees, (2) Amount spent on persons who are not economically backward, (3) Amount spent for the benefit of the organisation's suppliers — are not considered social responsibility activities.

2019

Under the Companies Act 2013, which of the following company is required to constitute a Corporate Social Responsibility Committee?

company having networth of Rs. 500 crore or more

company having turnover of Rs. 1000 crore or more

company having net profit of Rs. 5 crore or more

company having net profit of Rs. 2 crore or more during any financial year Choose the most appropriate option:

  1. (a)1, 2, 3 and 4
  2. (b)1 and 4
  3. (c)1, 2 and 3✓
  4. (d)1, 3 and 4
Answer & explanation

Ans. (c) : 1, 2 and 3 Explanation: Section 135 of the Companies Act 2013 describes 'Corporate Social Responsibility'. According to Section 135, every company whose — (1) Net worth is Rs. 500 crore or more, (2) Turnover is Rs. 1000 crore or more, (3) Net profit is Rs. 5 crore or more — shall constitute a Corporate Social Responsibility Committee.

June 2023 · Q56

The Corporate Social Responsibility (CSR) Committee of a Company carries out the following functions

A. To appoint an individual or a firm as an auditor

B. To recommend a CSR Policy

C. To recommend the amount of expenditure for the indicated activities

D. To inspect the books of accounts during business hours

E. To monitor the CSR policy of the company from time to time

Choose the correct answer from the options given below

  1. (a)A, B and C only
  2. (b)B and D only
  3. (c)B, C and E only✓
  4. (d)B, C, D and E only
Answer & explanation

Answer: (c) B, C and E only

June 2025 · Q42

Which of the following is not true in the context of Corporate Social Responsibility (CSR)?

  1. (a)CSR Committee should consist of only one Director✓
  2. (b)CSR provision was introduced by the Companies Act, 2013
  3. (c)Company should spend at least 2% of average net profits of the last 3 years
  4. (d)CSR is an implied agreement between the company and society
Answer & explanation

Answer: (a) CSR Committee should consist of only one Director

Explanation: As per the Companies Act, CSR Committee must have at least three directors, not just one.

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