Skip to content

CS Professional · CSR and Social Governance · CSR Policy

Pragati Foods Ltd transferred Rs 50 lakh to its Unspent CSR Account on 20 April 2024 for FY 2023-24 and spent none of it. Which statement is correct under section 135(6) if the money stays unspent?

The company has three financial years from the date of transfer to spend the money. If it remains unspent, it must be transferred to a Fund specified in Schedule VII within thirty days from the completion of the third financial year.

  1. AIt must transfer the amount to a Schedule VII Fund within thirty days from completion of the third financial year from the date of transferCorrect
  2. BIt may keep the amount indefinitely if the project is ongoing
  3. CIt must transfer to a Fund within thirty days of the end of the first year
  4. DIt must return the amount to the company's profits

Explanation

The amount must be spent within three financial years from the date of transfer. If not, the company must transfer it to a Schedule VII Fund within thirty days from the date of completion of the third financial year. No indefinite retention is allowed.

Did you get it right without looking?

One question tells you little. A timed set on CSR Policy shows your real accuracy, how long you take and where you lose marks.

Practise CSR PolicyFree diagnostic mock

More CSR Policy questions