CS Professional June 2025 Question Paper CSR and Social Governance

FOR CS PROFESSIONAL EXAM PREPARATION

CS Professional 2025
Question Paper · CSR
and Social Governance
EXAM YEAR TYPE SUBJECT

CS Professional 2025 Question Paper CSR and Social Governance
DATE

June 2025

Notes · Sample Papers · Previous Year Papers · Mock Tests

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NEW SYLLABUS
541
Roll No. ..................................... : 1 : OPEN BOOK EXAMINATION

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Time allowed : 3 hours Maximum marks : 100

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Total number of questions : 6 Total number of printed pages : 16

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NOTE :a Answer ALL questions.

PART–I

1. Yash, Company Secretary, presents the report on CSR to the Board of Directors. The key

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points of the report are as follows :

Corporate Social Responsibility (CSR) e m that companies are dedicated to humanity.
las an obligation to the utilization of resources in the
guarantees

It is not a matter of charity, butgrather
a
best possible manner, which should be beneficial to everyone. CSR, as a term of legal currency,

is fairly recent in origin. CSR is becoming an important part of every organization and different

countries in the world are increasingly emphasizing the importance of CSR. Corporate Social

Responsibility (CSR) guarantees the dedication of corporations to humanity. It is not in a

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philanthropic sense but rather a duty owed for the utilization of resources.

c. o Corporate Social Responsibility (CSR) is increasingly becoming askey
e mcomponent of many
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businesses’ policies. Comprehending the four levels of CSR demonstrates that the practice

ag provides advantages, not just to employees and the community, but also to the company

itself and the nation in which it functions. This is the reason it is frequently in the government's

interest to promote these initiatives.

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Companies engaged in Corporate Social Responsibility (CSR) initiatives must assess whether

they have met their CSR objectives. To facilitate this assessment, a CSR audit is indispensable.

A CSR audit serves as a management tool that involves a systematic, documented, periodic,

and objective evaluation of the effectiveness of CSR organization, processes, and management,

to generate social value for stakeholders.

Effective CSR audits not only enhance stakeholder confidence but also assist in regulatory

compliance and risk mitigation. 'They are crucial for ensuring adherence to regulations, identifying

potential risks, and promoting transparency among stakeholders. Internal auditors, armed with

the necessary tools and expertise, act as facilitators for organizations to integrate CSR principles

into their operations, thereby promoting sustainable growth and bolstering stakeholder trust.

Social development is often not a core competency for many corporations, consequently, most

companies prefer to engage implementing agencies to execute their projects. A recurring challenge

faced by companies in the implementation of' CSR initiatives is the difficulty in identifying

suitable implementing agencies (IAs). The National CSR Exchange Portal aims to assist

corporations in locating appropriate IAs for the successful execution of their CSR projects,

thereby reducing transaction costs. Additionally, the portal addresses a common issue cited

by corporations regarding their inability to fulfill CSR obligations due to the challenge of finding

suitable projects aligned with their CSR policies. The CSR Exchange Portal provides a platform

for viewing projects proposed by various implementing agencies, allowing corporations to list

their CSR projects and seek funding.

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Based on the report above, the Board of Directors, inquire the following questions from

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the Company Secretary :
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(i)
tose
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‘The art of business has analogies to sailing. It is about setting a course, steering
make best use of the prevailing winds, and constantly checking to see if thel sails
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ag Explain the reasons for carrying out evaluation activities for CSR projects. Also indicate
need to be adjusted’. In similar fashion, an evaluation of CSR projects is very important.

who are involved in the evaluation process ?

(5 marks)

(ii) “The tradition of ‘giving’ has been deeply entrenched in the culture of India”. Elucidate

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the statement. Outline the significant milestones in Evolution of Responsible business

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since 2013. Which tool is used to increase the reputation of the company in the
eyes of society ?
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(iii) XYZ Limited is a large multinational company having its business in India also. It
has committed to expanding its corporate social responsibility initiatives in the communities
surrounding its plants. The company aims to ensure that its social contribution is
meaningful, lasting, and beneficial to the societies it serves. The business wants to

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make sure that its social impact is significant, long-lasting, and advantageous to the

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communities it serves. XYZ Limited has decided to undertake various programs such

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as healthcare services, education efforts, and clean water projects.

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Explain the different modes of implementation which XYZ Limited can use to
a implement CSR programs. Also identify how it can disseminate this information to
the public ?

(5 marks)

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(iv) The two nations, namely Nepal and India have been neighbouring countries and display
a significant economic, cultural, geographical. and strategic connection for a considerable
duration. CG measures have mainly been examined within their own countries. Make
a comparative study of the corporate governance measures in India and Nepal ?
Outline the working of CSR activities in China as well.

(5 marks)

2. (a) (i) What does ‘Impact’ imply according to United Nations Organization ?

(1 mark)

(ii) Identify the type of ‘impact’ on the following illustrative examples and give
two more examples of each impact identified.

(a) Farmers from Telangana, Haryana, Kerala, Maharashtra, Andhra
Pradesh, Uttar Pradesh, etc., cleared the large number of trees such
as Mahua, Coconut, Sangri, Neem, and Babul in order to enlarge
paddy fields and increase yields and also to dig bore wells for
groundwater extraction. Additionally, they claimed that trees with big
canopies, like neem, had a detrimental effect on crop output.

(2 marks)

(b) The ancient library of Alexandria, one of the greatest academic and
cultural establishments in antiquity, was destroyed by several events (full
details are not available), most notably fire during the Roman era. It
resulted in a major loss of ancient knowledge.

(2 marks)

(1+2+2=5 marks)

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(b) What is CSR mode and medium of CSR spending ? How CSR Expenses are
measured ?
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e Bank of India (SBI), under Section 135 of the Companies Act, 2013, implements
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l a robust Corporate Social Responsibility (CSR) policy. The bank focuses on aeducation,
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(c) State

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healthcare, rural development, and environmental sustainability, allocating at least 2%
of its average net profits from the past three years to CSR initiatives. SBI's flagship
programs, like the “SBI Youth for India” fellowship, contribute to rural development
and education. The CSR Committee ensures compliance with Schedule VII of the
Act, conducting impact assessments for projects exceeding ` 1 crore. By integrating

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. in its CSR practices.
ESG (Environmental, Social, and Governance) principles, SBI maintains transparency,

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e and transparency in its CSR initiatives under the
accountability, and measurable outcomes

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How does SBI ensure compliance
Companies Act, 2013 a?

(5 marks)

Attempt all parts of either Q. No. 3 or Q. No. 3A

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3. (a) Companies nowadays adopt CSR not because it is a legal compulsion but also

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because it helps in increasing their brand value. Companies having CSR projects

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a (CSR) to have a competitive
develop an emotional connection with consumers. In today’s

ag are focusing more on Corporate Social Responsibility
advantage and build long-term relationships with their stakeholders. CSR plays an
important role in enhancing a brand’s reputation and making it a distinguishing factor
in the market.

1/2025/CSRSG/NS/OBE P.T.O.

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In view of the above facts, answer the following questions :

(i) Explain how CSR helps in building the brand of an organization ?

(3 marks)

(ii) Provide any one corporate example to support your answer.

(2 marks)

(3+2=5 marks)

(b) “Good governance flows from ethical business practices even when there is no
legislation. It promotes investor confidence, which is crucial to the ability of entities
listed on stock exchanges to compete for capital.”

Analyse the statement by indicating the need for Corporate Governance along with
describing management environment and board skills as important features of good
corporate governance.

(5 marks)

(c) (i) Analyse the most important benefits of conducting an impact assessment of
a CSR project.

(3 marks)

(ii) According to the January 2021 amendment, impact assessment is mandatory
for companies with a CSR budget of INR 5 crore or more in any fiscal
year and all projects with outlays of INR 5 crore or more. State whether
the statement is True or False. Give reasons.

(2 marks)

(3+2=5 marks)

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OR (Alternate Question to Q. No. 3)

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e though companies were reporting through a range of mechanisms—sustainability
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l reports, triple bottom line, and CSR reports—these methods of reporting were
Even

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as fragmented and not integrating the financial and non-financial information into one

report. Also, the methods “failed to make the connection between the organization’s

strategy, its financial performance and its performance on environmental, social and

governance issues.”
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With regard to the above which m
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s e body was created and what were its objectives ?

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a (5 marks)

(ii) Define CPSEs. Also provide its focus and scope.

(5 marks)

(iii) A CSR impact assessment report gives a holistic insight into the sustainability and

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the relevance of the project keeping in mind the environment, people, animals, and

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the ecology that is affected by the implementation of the project.

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Discuss how impact measurement and management is a continuous cycle ? Support
a with example of Tata Consumer Product Limited.

(5 marks)

1/2025/CSRSG/NS/OBE P.T.O.

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PART–II

4. (A) Z, a fresh Company Secretary was giving interviews for jobs in one company. He
was asked to read a few lines on NGOs and Non-corporate entities. After that,
he was given a few questions to solve :

Humans are social beings; they can’t be isolated from society. Every human being
is to perform his/her social responsibility which further empowers the employees to
leverage the corporate resources at their disposal to do good. Even the corporates
need to be socially responsible which bolsters a company’s image and build its brand.
Social responsibility programs can boost employee’s morale in the workplace and lead
to greater productivity, which has an impact on how profitable the company can be.
Businesses that implement social responsibility initiatives can increase customer retention
and loyalty.

Further, the needs of every class of society can’t be met by the government. Every
segment of society can be reached by an NGO (Non-Governmental Organization).
International development, humanitarian relief and charity are all heavily impacted by
non-governmental organizations or NGOs.

Despite having budgets ranging from millions to billions of dollars every year, NGOs
are by definition non-profit. Because of this, non-governmental organizations (NGOs)
depend on various sources of funding from government support to private donations
and membership fees. An NGO’s mission is to focus on all subjects related to advocacy,
social issues, environmental issues and human rights. Non-governmental organizations
work to advance and improve the social and political situation of society at large.
They aim to improve and advance the social and political situation of society at large.
The activities of non-governmental organizations (NGOs) contribute heavily to social
change for the betterment of society. It has been seen that these organizations are
present in many parts of the world and supporting humanity and other noble causes.

1/2025/CSRSG/NS/OBE Contd. ........

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The person involved in the NGO should be highly educated, committed, motivated

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and passionate about the organization’s objectives and activities. The importance of
NGOs is overy
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Non-corporate
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latheir members, are subject to less stringent regulations than companies. Non-corporate
entities, which are primarily formed to provide benefits or services

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a entities can take the shape of civic organizations, societies, trusts, clubs, welfare
associations, and more. The members of the Council of Non-Corporate Entities or
the Governing Body are typically selected from among the members of the entities
or, in certain situations, are government-appointed nominees. By making the proper
decisions at its meeting, the Governing Body/Council oversees the operations of non-

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corporate entities. Effective decision-making is necessary for any entity to accomplish
its goals, and non-corporate entities are no exception. Legal principles and procedures

e mare established in their bylaws or in the laws that
a sModel Code for Meetings of Non-corporate Entities
pertaining to non-corporate entities

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apply to them explicitly. The
issued by ICSI offers fundamental
of the Governing Council/Management Committee of such organizations in addition to
the relevant legal requirements. It also attempts to standardize the widely used disparate
practices. The goal of this model code is not to replace or amend any current laws
that apply to non-corporate entities. It aims to support improved governance in calling

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and running these entities’ meetings by adding to existing laws.

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Answer the following questions :

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(i) Name the set of guidelines and practices that organizations can use to manage

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and address social issues. Also provide its components. How do small non-

a corporate entities contribute to employment generation in India, which acts as
a key social issue ?

(5 marks)

1/2025/CSRSG/NS/OBE P.T.O.

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(ii) As a Company Secretary, what are the constraints of implementing social
governance ? Identify some of the key activities undertaken by NGOs to support
social and community development ?

(5 marks)

(iii) How do NGOs act as social mediators to bring about change in social and
behavioural attitudes ? What are the other major roles played by the various
NGOs ? (Identify any 3)

(5 marks)

(B) Answer the following :

(i) There are many business enterprises who do not function only with profit motive
but their activities have placed a greater positive impact on the society. Name
them.

(1 mark)

(ii) Regulation 292B of the SEBI (ICDR) Regulations states that the provisions
of Chapter X-A shall apply to which entities ?

(1 mark)

(iii) Regulation 292M of the SEBI (ICDR) Regulations. Explain.

(2 marks)

(iv) SASIX.

(1 mark)

(1+1+2+1=5 marks)

1/2025/CSRSG/NS/OBE Contd. ........

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5. (a) Society is an organized group of people with the only purpose and goals of non-

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profit service. Societies are more resilient than other forms of business, but there are
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ebe dissolved by its members on the appropriate basis and adoption of the procedures
still a number of reasons why societies may need to cease trading like a society
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l set forth by laws and an act, if any, applicable. It may also be obtaineda by the
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Registrar, Court or Government if applicable law is provided. If the company is created
to achieve a specific objective, it will be disbanded when it achieves this objective.

Required :

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(i) Write the circumstances when a court may order for dissolution of the
society.
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e m of dissolution of the society ?
(ii)
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What are the consequences

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(b) Anil, Jay and Rajeev are partners in a business involved in the manufacturing and
selling of furniture. They have a partnership agreement that does not explicitly detail
all the aspects of their daily operations, but it is agreed that they will equally share
profits and losses.
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Anil is tasked with overseeing the business operations, Jay manages sales, and Rajeev

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is responsible for the financial matters. One day, Anil makes a contract with a supplier

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for raw materials valued at ` 5,00,000. The supplier consents to deliver the materials

a on credit, to be paid within 30 days.

The other partners, Jay and Rajeev, were not consulted prior to the purchase, although
the materials are essential for the ongoing operations of the business.

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Following the transaction, Jay and Rajeev found out that Anil had signed the contract
without notifying them. They expressed concerns regarding Anil’s decision, as the amount
is considerable, and they had not consented to the purchase in advance.

(i) Discuss whether Anil had the authority to enter into the contract on behalf
of the partnership without consulting the other partners, and whether the contract
is binding on Jay and Rajeev ? Justify your answer.

(3 marks)

(ii) Discuss the acts by which the partners can bind the firm ?

(2 marks)

(3+2=5 marks)

(c) Based on Model Code for Meetings of Non-corporate Entities, define the
following :

(i) “Clear Days”

(1 mark)

(ii) “Interested Member”

(1 mark)

(iii) Leave of Absence

(1 mark)

(iv) Procedure for passing of Resolution by Circulation.

(1 mark)

(v) Modification or Cancellation of Resolution/discussions.

(1 mark)

(1+1+1+1+1=5 marks)

1/2025/CSRSG/NS/OBE Contd. ........

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Attempt all parts of either Q. No. 6 or Q. No. 6A

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e Indian Partnership Act of 1932 makes firm registration either optional or compulsory,
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6. (a)
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l but there are a number of reasons why registering a partnership firm is unquestionably
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required. A partnership is an essential type of business organization where two or

more people join forces to conduct business and share profits in an equitable manner,

as stipulated at the time of formation. It provides vital legal status and protections

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for the business and its partners. It also encourages transparency and confidence from
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the viewpoints of creditors, clients, .and possible investors. The registration process
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l a s difficulties, but they are outweighed by the long-
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may present certain administrative

term advantages.

Explain the process for firm registration according to Indian Partnership Act, 1932.

Is there any procedure for recording of alterations in Firm-Name, nature of business

and principal place of conducting business ?

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(b) How and who authorises Associations with economic nature to accept foreign

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contribution ? Enumerate the list of activities carried out by association with economic

nature ?

(5 marks)

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(c) Answer the following :

(i) Part IX of the Constitution

(2 marks)

(ii) The concept of local self-government is not new to our country. Discuss.

(2 marks)

(iii) Define “Prescribed”, as per Model Governance Code for Meetings of the Gram

Panchayats.

(1 mark)

(2+2+1=5 marks)

OR (Alternate Question to Q. No. 6)

6A. (i) In order to satisfy the common information needs of the various stakeholders, Technical

Guide is issued to recommend uniform accounting principles in accordance with the

Accounting Standards and other generally accepted accounting principles in India for

the preparation and presentation of NPO financial statements. This involves applying

good accounting practices to the recognition, measurement, presentation, and disclosure

of various income and expense items, assets, and liabilities in NPO financial statements

while taking into account the unique characteristics of their operations.

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Answer the following questions :

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(a)
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Write down the two objectives of the technical guide ?
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la(b) What set of financial statements do technical guidance notes include a? Identify
(2 marks)

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the fundamentals to be followed while preparing financial statements.

(2 marks)

(c) Is it compulsory to follow technical guidance notes ?

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(2+2+1=5 marks)

(ii) a g
For effective monitoring, all foreign contributions received from any “foreign

source” must be necessarily received only in a bank account and must be routed

and spent only through bank accounts. Opening a bank account at a specified location

is a one-time exercise. This process will increase the efficiency of administration by

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the government.

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Based on the paragraph above, identify the name of the bank .account along with
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the procedure for receiving foreign contributions under the FCRA 2010, for an association

gla that has been granted prior permission or registration a? Also discuss the good practice
a guidelines of Financial Action Task Force (FATF) which must be adhered to.

(5 marks)

1/2025/CSRSG/NS/OBE P.T.O.

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(iii) Answer the following :

(a) Part IX-A of Indian Constitution.

(2 marks)

(b) How does a Gram Panchayat act ?

(2 marks)

(c) Define “Special Meeting”, as per Model Governance Code for Meetings of
the Gram Panchayats.

(1 mark)

(2+2+1=5 marks)

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1/2025/CSRSG/NS/OBE Contd. ........

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