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CMA Final · Corporate and Economic Laws · Corporate Governance and Social Responsibility and Sustainability

An eligible company transferred its unspent CSR amount for an ongoing project to the Unspent CSR Account, but did not spend it. By when must the remaining amount be moved to a Fund specified in Schedule VII?

The company must transfer the unspent balance to a Fund specified in Schedule VII within thirty days from the date of completion of the third financial year, counted from the date of transfer to the Unspent CSR Account. Three financial years are allowed for spending before this transfer.

  1. AWithin six months from the end of the financial year in which it was transferred
  2. BWithin thirty days from the date of completion of the third financial year from the date of transfer to the Unspent CSR AccountCorrect
  3. CWithin one year from the date of the transfer
  4. DWithin thirty days from the end of the next financial year

Explanation

Section 135(6) allows the amount to be spent within three financial years from the date of transfer. If it is not spent, it must be moved to a Schedule VII Fund within thirty days from the date of completion of the third financial year. The six-month period applies to the non-ongoing-project situation.

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