QUESTION 1
GS3
10 marks
With a consideration towards the strategy of inclusive growth, the new Companies Bill, 2013 has indirectly made CSR a mandatory obligation. Discuss challenges expected in its implementation in right earnest. Also discuss other provisions in the Bill and their implications.
WRITE IN
7 min
200 words
What the examiner wants
Discuss implementation challenges of mandatory CSR under the Companies Act 2013 and its other key provisions.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1CSR (Section 135): companies with net worth of ₹500 crore, turnover of ₹1,000 crore or net profit of ₹5 crore spend 2% of average net profit on Schedule VII activities≈35 words
- 2Challenges: 'comply or explain' weak at first, spending concentrated near plants and rich states, few capable NGOs, window dressing, monitoring gaps≈35 words
- 3Other provisions: one-person company, at least one woman director, one-third independent directors, auditor rotation, class action suits, statutory SFIO, NCLT≈35 words
- 4Implications: better governance and investor protection, but higher compliance cost≈35 words
Open in about 30 words and close in about 30.
Answer plan
Inclusive growth logicCSR clauseImplementation challengesOther provisionsImplicationsLater amendments
Where marks usually go
- Covering only CSR and skipping the 'other provisions' part
- Wrong thresholds for CSR applicability
Draw this
- Table: provision, purpose, implication
Value addition
- LawCompanies (Amendment) Act 2019 made unspent CSR money transferable to a Schedule VII fund or an Unspent CSR Account, ending pure 'comply or explain'.Companies (Amendment) Act, 2019
- LawSection 245 introduced class action suits for shareholders and depositors.Companies Act, 2013
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Shakti Dubey · AIR 1 · Page 26 ↗Reviewed PYQ reference
- Aniket Ranjan · AIR 48 · Page 23 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 7 minutes, then get it checked.