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Sagar Pharma Ltd's CSR Policy lists activities for the year. Its Board is reviewing what the policy must indicate and what the Committee must also recommend. Which statement is correct under section 135(3)?

The policy must indicate activities in areas or subjects specified in Schedule VII, and the CSR Committee must also recommend the amount of expenditure on them and monitor the policy from time to time. The Board does not alone recommend the amount, and the Central Government does not fix it.

  1. AThe policy indicates activities in areas or subjects specified in Schedule VII, and the Committee separately recommends the amount of expenditure on those activitiesCorrect
  2. BThe policy need not refer to Schedule VII if the activities benefit employees
  3. CThe Board alone recommends the expenditure amount and the Committee only monitors the policy
  4. DThe policy indicates the activities, and the amount of expenditure is fixed by the Central Government for each company

Explanation

Section 135(3)(a) requires the policy to indicate activities in areas or subjects specified in Schedule VII. Clause (b) makes the Committee recommend the expenditure amount, and clause (c) makes it monitor the policy from time to time. The other options assign these roles wrongly or ignore Schedule VII.

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