Skip to content

CS Professional · CSR and Social Governance · Corporate Social Responsibility

Ganga Polymers Ltd is covered by Section 135 and its required CSR spend for the year is Rs 42 lakh. It is not required to appoint an independent director. Who discharges the functions of the CSR Committee?

The Board of Directors performs the functions. Where the CSR amount to be spent under Section 135(5) does not exceed Rs 50 lakh, the requirement to constitute a CSR Committee does not apply, so Rs 42 lakh falls within this exemption.

  1. AA CSR Committee of at least two directors must still be formed
  2. BThe Board of Directors, since the amount does not exceed Rs 50 lakhCorrect
  3. CA committee of three directors including one independent director
  4. DThe Central Government through general directions

Explanation

Under Section 135(9), where the amount to be spent does not exceed Rs 50 lakh, the requirement to constitute the CSR Committee does not apply. The Board discharges the Committee's functions. Rs 42 lakh is below the limit, so the two-director committee option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Social Responsibility shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Social ResponsibilityFree diagnostic mock

More Corporate Social Responsibility questions