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CS Professional · CSR and Social Governance · Social Impact Assessment and CSR Audit

Mehta Pharma Ltd is told by its CSR head that a social impact assessment is needed because the Board must ensure activities in its CSR Policy are actually undertaken and the Committee must monitor the Policy. Under section 135 of the Companies Act, 2013, which pair of duties does this reasoning link to?

Under section 135, the Board must ensure that activities included in the CSR Policy are undertaken, and the CSR Committee must monitor the Policy from time to time. The Committee formulates and recommends the policy; the Board approves it. Impact assessment supports both monitoring and assurance functions.

  1. ABoard must ensure policy activities are undertaken, and Committee must monitor the CSR Policy from time to timeCorrect
  2. BCommittee must approve the policy, and Board must monitor it
  3. CBoard must formulate the policy, and Committee must disclose it in the Registrar's records
  4. DCommittee must transfer unspent amounts, and Board must appoint the auditor

Explanation

Section 135(4)(b) requires the Board to ensure the activities included in the policy are undertaken, and section 135(3)(c) requires the Committee to monitor the policy from time to time. The Committee formulates and recommends, while the Board approves, so the other pairings reverse roles.

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