Instructions

Based on the following information.

The following graphs give annual data of Assets, Sales (as percentage of Assets) and Spending on Corporate Social Responsibility (CSR) (as percentage of Sales), of a company for the period 2004 - 2009.

Question 2

Of the years indicated below, in which year was the ratio of CSR/ Assets the maximum?

Solution

Total value of assets in the year 2004 = 100 crore

Total value of sales in the year 2004 = 0.60*100 = 60 crore

CSR spending in the year 2004 = $${5/3}{100}\times 100$$ = 1 crore.

Similarly, we can calculate for the remaining years. Tabulating the same data, (All the values are in crores) 

CSR/ Assets ratio for the year 2004 = $$\dfrac{1}{100}$$ = 0.01

CSR/ Assets ratio for the year 2005 = $$\dfrac{1.15}{110}$$ = 0.01045

CSR/ Assets ratio for the year 2006 = $$\dfrac{2}{125}$$ = 0.016

CSR/ Assets ratio for the year 2007 = $$\dfrac{2}{135}$$ = 0.0148

CSR/ Assets ratio for the year 2008 = $$\dfrac{2.5}{150}$$ = 0.0166

We can see that CSR/Asset ratio is maximum for the year 2008. Hence, option E is the correct answer.

Video Solution

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