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

Mehta Auto Ltd. commenced a three-year ongoing CSR project for rural drinking water in April 2024. By 31 March 2026 it spent less than the amount allocated for the project. Which course is consistent with the CSR Rules for the unspent amount relating to this ongoing project?

The unspent amount for an ongoing project must be moved to the Unspent CSR Account within thirty days of the financial year end and then spent within three financial years from transfer; otherwise it is transferred to a Schedule VII fund.

  1. AIt must be transferred to the Unspent CSR Account within thirty days from the end of the financial year, and spent within three financial years from the date of transferCorrect
  2. BIt may be retained in the general reserves for use whenever convenient
  3. CIt must be paid to the Prime Minister's relief fund immediately without exception
  4. DIt lapses and is added back to profit with no further obligation

Explanation

For ongoing projects, the unspent amount must be transferred to a special Unspent CSR Account within thirty days from the end of the financial year and spent within three financial years from the date of transfer, failing which it goes to a Schedule VII fund. Retention in reserves or lapse is not permitted.

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