Skip to content

CS Professional · CSR and Social Governance · CSR Policy

Kaveri Auto Ltd failed to spend Rs 30 lakh of its CSR obligation for the year ended 31 March. None of it relates to an ongoing project. What must the company do under section 135(5)?

The Board must state the reasons for non-spending in its report and transfer the Rs 30 lakh to a Fund specified in Schedule VII within six months of the end of the financial year. The Unspent CSR Account route is available only for ongoing projects.

  1. ACarry it forward to the next year without any transfer or disclosure
  2. BTransfer it to the Unspent CSR Account within thirty days of the year end
  3. CDisclose reasons in the Board's report and transfer the amount to a Fund specified in Schedule VII within six months of the expiry of the financial yearCorrect
  4. DPay it directly to the Central Government as penalty within ninety days

Explanation

For unspent amounts not relating to an ongoing project, the Board must give reasons in its report and transfer the amount to a Schedule VII Fund within six months of the expiry of the financial year. The thirty-day Unspent CSR Account route applies only to ongoing projects under section 135(6).

Did you get it right without looking?

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

Practise CSR PolicyFree diagnostic mock

More CSR Policy questions