With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
- CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
- CSR rules do not specify minimum rights over virtual items spending on CSR activities.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Correct Answer: (a) 1 only
Explanation:
- Statement 1 is correct. CSR rules in India specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
- Statement 2 is incorrect and irrelevant. CSR rules do not address “rights over virtual items” as it is not pertinent to CSR activities.
Possible Sources: Companies Act, 2013, and CSR rules and regulations in India.
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