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CS Professional · CSR and Social Governance · Impact of CSR

Orchid Chemicals Ltd's CSR Committee approved a multi-year project in March 2025 with an outlay of Rs 3 crore. By the end of the year, the project's annual action plan was modified mid-year. Which step is needed for the modification to be valid for reporting?

The CSR Committee must recommend the modification with reasons, and the Board must approve it. The change is then reflected in the company's CSR reporting. The CFO cannot approve alone, no ROC approval is required, and unchanged total spend does not remove the need for approval.

  1. AThe CSR Committee recommends the modification and the Board approves it, after which it is reflected in the disclosuresCorrect
  2. BThe CFO alone may approve it with no further reporting
  3. CThe modification needs the approval of the Registrar of Companies
  4. DNo approval is needed if total spending is unchanged

Explanation

The CSR Committee may recommend modifications to the annual action plan, and the Board must approve them, provided the reasons are recorded and the change is reflected in reporting. The ROC has no role, and the CFO cannot approve alone even if spending is unchanged.

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