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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Corporate Social Responsibility (CSR)

Zenith Polymers Ltd, a company covered by Section 135, spent less than its required CSR amount for FY 2025-26. The shortfall does not relate to any ongoing project. By when must the Board transfer the unspent amount to a Fund specified in Schedule VII?

The Board must transfer the amount to a Schedule VII Fund within six months of the end of the financial year. The thirty-day period applies to ongoing projects, whose unspent money goes to the Unspent CSR Account, not to a Fund.

  1. AWithin thirty days from the end of the financial year
  2. BWithin six months of the expiry of the financial yearCorrect
  3. CWithin three financial years from the date of the shortfall
  4. DWithin one year of the date of the Board report

Explanation

Under the second proviso to section 135(5), unspent CSR money not relating to an ongoing project must be moved to a Schedule VII Fund within six months of the expiry of the financial year. The thirty-day limit applies only to ongoing projects, where the money goes to the Unspent CSR Account.

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