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Kaveri Steels Ltd has an unspent CSR amount of Rs 90 lakh for FY ended 31 March, relating to an ongoing project. What must the company do under section 135(6)?

Because the unspent amount relates to an ongoing project, the company must move it to a special Unspent CSR Account with a scheduled bank within thirty days from the end of the financial year. The six-month transfer to a Schedule VII Fund applies only to non-ongoing project shortfalls.

  1. ATransfer it to the Unspent CSR Account in a scheduled bank within thirty days from the end of the financial yearCorrect
  2. BTransfer it to a Schedule VII Fund within six months of the end of the financial year
  3. CRetain it in the general account and spend it within one year
  4. DTransfer it to the Unspent CSR Account within six months of the year end

Explanation

For unspent amounts relating to an ongoing project, section 135(6) requires transfer to a special Unspent Corporate Social Responsibility Account in a scheduled bank within thirty days from the end of the financial year. The six-month Schedule VII Fund transfer applies to amounts not relating to ongoing projects.

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