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

Sagar Textiles Ltd, whose financial year ends on 31 March 2026, spent Rs 70 lakh of its Rs 1 crore CSR obligation. The Rs 30 lakh shortfall relates to an ongoing project approved by the Board. By when must the company transfer the Rs 30 lakh to a special account?

The company must transfer the Rs 30 lakh to its Unspent CSR Account within 30 days from the end of the financial year, that is by 30 April 2026. This is the rule for unspent amounts relating to an ongoing project, which must then be spent within three years.

  1. AWithin 30 days from the end of the financial year, to the Unspent CSR AccountCorrect
  2. BWithin six months from the end of the financial year, to the Unspent CSR Account
  3. CWithin 30 days from the end of the financial year, to a Schedule VII fund
  4. DBy the date of the next annual general meeting, to the company's own CSR reserve

Explanation

Unspent CSR for an ongoing project must be transferred to a separate Unspent CSR Account within 30 days from the end of the financial year, so by 30 April 2026 here. It must then be spent within three financial years. The six-month period applies to unspent amounts not relating to ongoing projects, and those go to a Schedule VII fund.

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