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CMA Final · Corporate and Economic Laws · Corporate Governance and Social Responsibility and Sustainability

Under Section 135(6) of the Companies Act, 2013, a company has unspent CSR amount relating to an ongoing project for a financial year. Within what period from the end of that financial year must it be transferred to the Unspent Corporate Social Responsibility Account?

The unspent amount relating to an ongoing project must be transferred to the Unspent CSR Account in a scheduled bank within thirty days from the end of the financial year. Six months applies instead to unspent amounts not relating to ongoing projects, which go to a Schedule VII Fund.

  1. AThirty daysCorrect
  2. BSix months
  3. CNinety days
  4. DOne year

Explanation

Section 135(6) requires transfer to a special Unspent CSR Account in a scheduled bank within thirty days from the end of the financial year. Six months is the period for transferring unspent non-ongoing-project amounts to a Schedule VII Fund under the second proviso to sub-section (5), so that option is a confusion.

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