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

Ravi Foods Ltd has a CSR obligation of Rs 40 lakh for the year. Its Board asks whether a CSR Committee is needed to oversee an impact assessment of the funded projects. What is the correct position under section 135?

The Committee requirement does not apply, and the Board discharges the Committee's functions. Under section 135(9), where the amount to be spent does not exceed fifty lakh rupees, no CSR Committee is needed. Rs 40 lakh is within that limit, so the Board oversees monitoring.

  1. AA Committee of at least three directors including an independent director is compulsory
  2. BThe Committee requirement does not apply, and the Board discharges the Committee's functionsCorrect
  3. CThe Committee must have five directors
  4. DThe Committee is replaced by the Registrar

Explanation

Section 135(9) states that where the amount to be spent does not exceed fifty lakh rupees, the Committee requirement does not apply and the Board of Directors discharges its functions. Rs 40 lakh is below that limit, so the Board itself oversees monitoring and any assessment.

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