Quiz on Modified CSR Policy of Coal India Limited

What is the main objective of the CSR policy of Coal India Limited?

• To ensure sustainable development for society

• To maximize profits for shareholders

• To increase coal production

• To reduce operational costs

Which act requires eligible companies to formulate a CSR policy?

• Companies Act 2005

• Companies Act 2015

• Companies Act 2013

• Companies Act 2000

Answer explanation

The Companies Act 2013 mandates that eligible companies develop a Corporate Social Responsibility (CSR) policy, making it the correct choice among the options provided.

What percentage of the CSR fund must subsidiaries spend within a 25-kilometer radius of their project sites?

• 60%

• 70%

• 80%

• 90%

Answer explanation

Subsidiaries are required to spend 80% of their CSR fund within a 25-kilometer radius of their project sites, ensuring that a significant portion of the funds directly benefits the local community.

Who is authorized to approve CSR projects with a value up to Rs. 5.00 lakhs?

• Concerned Area General Managers

• CSR Committee of the Board

• Director of CSR

• Chairman of CIL

Answer explanation

Concerned Area General Managers are authorized to approve CSR projects up to Rs. 5.00 lakhs, making them the correct choice. Other options involve higher authority levels not applicable for this project value.

What is the minimum net profit required for a company to constitute a Board Level Committee on CSR?

• Rs. 50 crores

• Rs. 10 crores

• Rs. 5 crores

• Rs. 1 crore

Answer explanation

According to CSR regulations, a company must have a minimum net profit of Rs. 5 crores to establish a Board Level Committee on CSR. This makes Rs. 5 crores the correct answer.

Which of the following is NOT a theme listed in Schedule VII of the Companies Act 2013?

• Cultural development

• Corporate governance

• Environmental protection

• Welfare measures for the community

Answer explanation

Corporate governance is not listed in Schedule VII of the Companies Act 2013, which includes themes like cultural development, environmental protection, and welfare measures for the community.

What is the role of the CSR department at CIL and its subsidiaries?

• To handle employee recruitment

• To manage coal production

• To oversee financial audits

• To implement CSR activities

Answer explanation

The CSR department at CIL and its subsidiaries is primarily responsible for implementing CSR activities, which focus on social responsibility and community development, rather than recruitment, production, or financial audits.

What is the maximum duration for CSR projects as per the guidelines?

• 1 year

• 5 years

• 2 years

• 3 years

Answer explanation

According to CSR guidelines, the maximum duration for projects is set at 3 years. This allows for sufficient time to implement and assess the impact of the initiatives.

Which of the following is a requirement for projects valued over Rs. 5.00 lakhs?

• Must not require any documentation

• No need for a Memorandum of Understanding

• Must be approved by the CSR Committee

• Must be implemented by local agencies only

Answer explanation

For projects valued over Rs. 5.00 lakhs, approval from the CSR Committee is mandatory to ensure proper oversight and alignment with corporate social responsibility goals.

What should be included in the Annual Report on CSR Activities?

• Employee performance reviews

• Details of ongoing projects and expenditures

• Only financial statements

• Market analysis reports

Answer explanation

The Annual Report on CSR Activities should include details of ongoing projects and expenditures to provide transparency and accountability regarding the company's social responsibility efforts.