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A company whose CSR obligation in a year is below Rs 50 lakh:
ANeed not constitute a CSR Committee
BMust constitute a 3-member CSR Committee with 1 independent director
CMust transfer the entire amount to a government fund
DIs exempt from CSR entirely
Answer & Solution
Correct answer: A. Need not constitute a CSR Committee
1. Section 135(9) — companies not required to appoint an independent director (or whose CSR spend is below Rs 50 lakh) need NOT constitute a CSR Committee.
2. The Board itself performs the Committee functions in such cases.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — Accounts of Companies_