With reference to the Corporate Social Responsibility (CSR), which of the statements is/are correct?

1. Companies Act 2014, introduces mandatory CSR.
2. Companies covered under this will have to spend at least one percent of their annual net-profit in the activities under CSR.

Select the correct answer using the codes given below:

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

This MCQ is part of the UP PSC Previous Year Questions (PYQs) series, focusing on UPPSC Prelims 2019 (GS Paper I)