Which of the following changes was introduced in 2024 under the Companies Act amendments to enhance corporate social responsibility (CSR) transparency in India?
The correct answer is Mandatory quarterly CSR reporting accompanied by independent audits.
Understanding the Claimed 2024 Amendment
The explanation suggests that in 2024, the Ministry of Corporate Affairs (MCA) introduced changes to make CSR more impact-driven, including:
Quarterly reporting: Companies would provide CSR updates every quarter instead of only annual disclosures.
Independent audits: CSR activities and spending would be verified through third-party audits to ensure transparency and prevent misuse.
Form CSR-2 enforcement: Continued emphasis on detailed reporting of CSR activities through Form CSR-2.
Why the Other Options Are Incorrect
Exemption of companies below ₹500 crore:
CSR applicability thresholds (net worth ₹500 crore, turnover ₹1000 crore, or net profit ₹5 crore) have not been changed in this manner.
50% Board members as CSR specialists:
There is no requirement mandating that half of the board must be CSR experts. CSR oversight is handled by the CSR Committee.
Reduction in minimum spending:
The rule of spending 2% of average net profits remains unchanged.
Important Questions from Corporate Social Responsibility (CSR)
What is the minimum prescribed net profit threshold for Companies to be required to undertake Corporate Social Responsibility activities under clause 135 of the Companies Act, 2013?
What is the 'Triple Bottom Line Approach' in CSR as mentioned in the passage?
Given below are two statements :
Statement (I): CSR is a holistic and integrated management concept whereby companies integrate their industrial and future objectives with their business objectives.
Statement (II): In this modern digitalized world, business are required to be mindful both in terms of what they are doing and how they are doing.
In the light of the above statements, choose the most appropriate answer from the options given below:
What is the consequence for companies that fail to most the CSR spending requirement as per the new amendments?
Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): Companies are required to spend 2\% of profits towards CSR in the given time limit.
Reason (R): The Government of India has made stringent provisions for CSR in the Companies Act, 2013.
In the light of the above statements, choose the most appropriate answer from the options given below:
