Ministry Of Corporate Affairs

* **Statement 1: Correct.** The Corporate Social Responsibility (CSR) rules in India state that expenditures aimed at benefiting the company's business interests or its employees (such as those related to employee welfare or activities that are a direct business benefit) will not be counted as CSR activities. The focus of CSR is on activities that benefit society at large and not just the company or its direct stakeholders. * **Statement 2: Incorrect.** Under the Companies Act, 2013, CSR rules do specify a minimum spending requirement. Companies meeting certain criteria (like having a net worth of ₹500 crore or more, or an annual turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more) must allocate at least 2% of their average net profits over the last three years towards CSR activities. So, the correct answer is: A. 1 only