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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Veda Textiles Ltd, a listed company, has placed its CSR policy on its website. In preparing the Board's report, the directors want to avoid reproducing the whole policy. Under section 134 of the Companies Act, 2013, what will be sufficient compliance for the CSR policy disclosure?

It is sufficient to state briefly the salient features of the policy and any change in it, and to give the web-address where the full policy is available. A bare web link without the salient features does not satisfy the proviso to section 134(3).

  1. AMention only that a CSR policy exists, without any website address
  2. BSpecify the salient features of the policy and any change in it briefly, and indicate the web-address where the complete policy is availableCorrect
  3. CAttach the full text of the policy as an annexure and also place it on the website
  4. DGive the web-address alone, with no description of the policy's features

Explanation

The second proviso to section 134(3) says that where the policy under clause (e) or (o) is on the company's website, it is sufficient to specify the salient features and any change briefly in the Board's report and to indicate the web-address of the complete policy. Giving the address alone omits the salient features, so it falls short.

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