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CS Professional · CSR and Social Governance · CSR Projects and Implementation Agency

Kaveri Engineering Ltd contributes Rs 40 lakh to Asha Education Society, a registered society that has a CSR Registration Number, for building school laboratories. The society is unrelated to the company and has a 3-year track record in similar work. Which statement about the company's obligations is correct under the CSR Rules?

The company must set out the project, modalities of fund utilisation, implementation schedule and monitoring mechanism in its Board-approved annual action plan. Engaging a registered implementing agency does not remove the company's duty to monitor, and a registered society is eligible without being a section 8 company.

  1. AThe company need not monitor the project because the society is registered
  2. BThe company must specify project details such as modalities of utilisation, implementation schedule and monitoring in its Board-approved annual action planCorrect
  3. CThe project counts as CSR only if the society is a section 8 company
  4. DThe contribution is valid only if the society is a subsidiary of the company

Explanation

The Board-approved annual action plan must list the projects, manner of execution, modalities of fund utilisation, implementation schedules and monitoring and reporting mechanism. Registration of the agency does not remove the company's monitoring responsibility, and a registered society is an eligible agency without being a company.

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