Commonly Found Errors in Reporting Practices

What is the amount of CSR expense that is required to be spent by the companies covered under section 135 the Companies Act 2013 ?

• At least 2% of the average net profits of the preceding 4 years 

• At least 4% of the average net profits of preceeding 3 years

• At least 2% of the average net profit of the preceding 3 years 

• At least 3% of the previous year's net profit 

What shall be the number of independent directors in case the listed entity does not have a regular non executive chairperson? 

• At least half of the board of directors 

• At least 1/3 of the board of directors 

• At least 1/5 of the board of directors 

• None of the above

What are the disclosures required in case of audit committee meetings? 

• Date of audit committee meetings 

• Composition, name of the members and chairperson 

• Meetings and attendance during the year 

• All of the above

What is the formula of capital adequacy ratio?

• (Tier1+Tier 2)capital/ Risk Weighted assets

• Tier2 capital/ Total assets

• Tier1 capital/ Total assets

• (Tier1+Tier 2)capital/ Total assets

What is the composition of independent director in board member in case of non listed CPSEs?

• at least 1/3rd of board members

• at least half of board members

• atleast 1/4th of board members

• at the discretion of company

What is the common theme for CSR activities by CPSEs for the F.Y. 2023-24?

• Education 

• Health & nutrition

• unemployement

• Women empowerment

How many director an audit committee of PSU should have?

• minimum 3 director

• minimum 2 director

• maximum 3 director

• No such requirement

How many independent directors should be there if the chairperson of the board of directors is a non executive director? 

• At least half of the board of directors 

• At least 1/5 of the board of directors 

• At least 1/3 of the board of directors 

• None of the above

Who is not included in  KMP as per IND AS 24?

• Executive director

• Non-Executive director

• Independent Director

• None of the above

Director's sitting fees is included under which head?

• Other Expenses

• Not included in expense, only note is given

• In any head between point 'a' & 'b', at the discretion of company

• Employee Benefit Expenses