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CS Professional · CSR and Social Governance · CSR Policy

Kaveri Engineering Ltd has an average net profit of Rs 100 crore, and the CSR obligation is Rs 2 crore. It undertook an ongoing project in FY 2025-26 and spent only Rs 1.2 crore. What must the Board do about the unspent amount of Rs 0.8 crore relating to the ongoing project?

The unspent Rs 0.8 crore for an ongoing project must be transferred to a special Unspent CSR Account within thirty days from the end of the financial year, and be spent within three financial years, failing which it goes to a Schedule VII fund.

  1. ACarry it forward to the next year's profit without any transfer
  2. BTransfer it within thirty days from the end of the financial year to a special Unspent CSR AccountCorrect
  3. CTransfer it to the Unspent CSR Account only after three years
  4. DTransfer it immediately to a fund under Schedule VII even if the project continues

Explanation

For ongoing projects, the unspent amount must be moved to an Unspent CSR Account within thirty days of the financial year end and spent within three financial years. Waiting three years or doing nothing is wrong.

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