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The CSR Committee of Narmada Cement Ltd has drafted a policy listing the activities to be undertaken, and has decided the amount to be spent. Which of the following correctly states the Committee's role under section 135(3)?

The Committee formulates and recommends the CSR Policy to the Board, recommends the amount of expenditure, and monitors the policy from time to time. Approving the policy and ensuring activities are undertaken are duties of the Board, not the Committee.

  1. AIt approves the CSR Policy and ensures the activities are undertaken
  2. BIt formulates and recommends the CSR Policy to the Board, recommends the expenditure amount, and monitors the policy from time to timeCorrect
  3. CIt only monitors the policy; the Board formulates it
  4. DIt formulates the policy and transfers any unspent amount to the Fund

Explanation

Section 135(3) assigns three functions to the Committee: formulate and recommend the CSR Policy indicating activities in Schedule VII areas, recommend the expenditure amount, and monitor the policy from time to time. Approval of the policy and ensuring that activities are undertaken are Board duties under section 135(4). So the first option describes the Board's role.

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