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CS Professional · CSR and Social Governance · CSR Projects and Implementation Agency

Rohan Textiles Pvt. Ltd. has a CSR obligation of Rs 40 lakh for the year and has not constituted a CSR Committee. A director asks who will formulate the CSR policy and monitor project implementation. Under the CSR Rules, what is the correct position?

The Board of Directors discharges the CSR Committee's functions. A company whose CSR obligation is up to Rs 50 lakh in a year is not required to constitute a CSR Committee, so Rs 40 lakh falls within this relief and the Board formulates and monitors.

  1. AThe company must still constitute a CSR Committee of three directors
  2. BThe functions of the CSR Committee are discharged by the Board of DirectorsCorrect
  3. CThe implementing agency will formulate the policy and monitor itself
  4. DThe Nomination and Remuneration Committee will perform these functions

Explanation

A company whose CSR obligation does not exceed Rs 50 lakh in a financial year need not constitute a CSR Committee. In that case the Board discharges the Committee's functions. The other options assign the role to a body that has no such authority.

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