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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Corporate Social Responsibility (CSR)

Lakshya Infra Ltd is covered by section 135. Which action is within the statutory functions of its CSR Committee, rather than the Board alone?

Formulating and recommending the CSR Policy indicating Schedule VII activities is a committee function. The committee also recommends the spend amount and monitors the policy, while approval, website disclosure and ensuring implementation rest with the Board.

  1. AFormulating and recommending a CSR Policy indicating activities under Schedule VIICorrect
  2. BApproving the CSR Policy after considering recommendations
  3. CPlacing the CSR Policy contents on the company's website
  4. DTransferring unspent amounts to a Schedule VII Fund

Explanation

Section 135(3) assigns the committee three tasks: formulate and recommend the CSR Policy, recommend the expenditure amount, and monitor the policy. Approval, website disclosure and ensuring activities are undertaken fall on the Board under section 135(4). Transfer of unspent amounts is also a Board obligation under section 135(5) and (6).

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