Skip to content

CS Professional · CSR and Social Governance · Corporate Social Responsibility

Anand Pharma Ltd has an ongoing CSR project and Rs 80 lakh of its CSR amount for FY 2025-26 remains unspent. It transfers the amount to a special Unspent CSR Account within thirty days of year end. It then spends only Rs 50 lakh over the following three financial years from the date of transfer. What must it do about the remaining Rs 30 lakh?

Anand must transfer the unspent Rs 30 lakh to a Schedule VII Fund within thirty days from the date of completion of the third financial year. Section 135(6) allows three financial years from the transfer to spend ongoing-project money, after which the balance must go to the Fund.

  1. ACarry it forward indefinitely in the same account
  2. BTransfer it to a Schedule VII Fund within thirty days from the date of completion of the third financial yearCorrect
  3. CTransfer it to a Schedule VII Fund within six months of the end of FY 2025-26
  4. DRetain it with the Board's approval and disclose reasons

Explanation

Under section 135(6), unspent ongoing-project money goes to the Unspent CSR Account and must be spent within three financial years from the transfer. Failing that, the company must transfer the balance to a Schedule VII Fund within thirty days from completion of the third financial year. The six-month period applies to non-ongoing unspent amounts under section 135(5), not this case.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Social Responsibility shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Social ResponsibilityFree diagnostic mock

More Corporate Social Responsibility questions