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Banyan Steels Ltd spent less than its CSR obligation for the year because a project is ongoing. Which disclosure is required in the Board's report regarding the unspent amount?

The Board's report must give the reasons for not spending the full amount, and the unspent sum for an ongoing project must be transferred to the Unspent CSR Account within the prescribed period. There is no small-amount exemption and an auditor note alone is not enough.

  1. ANo disclosure is required if the amount is under Rs 1 crore
  2. BThe reasons for not spending, with the unspent amount transferred to a Unspent CSR Account for an ongoing projectCorrect
  3. COnly a note in the auditor's report
  4. DOnly an entry in the minutes without reference to the Board's report

Explanation

For ongoing projects, unspent CSR money is moved to the Unspent CSR Account within the prescribed period, and the Board's report must state the reasons for non-spending. A threshold exemption or auditor note alone does not satisfy the requirement.

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