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CS Professional · CSR and Social Governance · Impact of CSR

Meridian Textiles Ltd, an Indian company, has a CSR obligation and completed a CSR project with an outlay of Rs 1 crore that ran for two years. Under the CSR Rules, the company must keep a particular document in its annual report on CSR. Which statement best describes the requirement for reporting the impact assessment?

Where a company meets the prescribed thresholds, the Board must have impact assessment done for eligible CSR projects and attach the report to its annual report on CSR. It is not required for every project, is not restricted to listed companies, and is not merely optional for such companies.

  1. AImpact assessment reports are required for every project irrespective of size or outlay
  2. BImpact assessment is optional and never has to be disclosed to shareholders
  3. CImpact assessment is required only for companies listed on a stock exchange
  4. DThe Board must attach the impact assessment report of eligible projects to the annual report on CSR where the rules require itCorrect

Explanation

The CSR Rules require companies meeting the prescribed thresholds to undertake impact assessment of eligible projects (outlay of Rs 1 crore or more, completed at least one year earlier) and attach the report to the Board's annual report on CSR. It is not required for every project, nor is it limited to listed companies or optional.

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