CSR — Unspent and Ongoing Project Transfers

Reporting requirement

Report whether, in respect of other than ongoing projects, the company has transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of Section 135. Report whether any amount remaining unspent under sub-section (5) of Section 135, pursuant to any ongoing project, has been transferred to a special account in compliance with the provision of sub-section (6) of Section 135.

What to verify before signing

• Section 135 applicability — net worth ≥ ₹500 cr / turnover ≥ ₹1000 cr / net profit ≥ ₹5 cr
• CSR spend = 2% of avg net profits (Section 198) of preceding three years
• Unspent CSR (non-ongoing) → transfer to Schedule VII fund within 6 months
• Unspent CSR (ongoing project) → transfer to Unspent CSR account within 30 days
• CSR-2 filing with MCA; CSR Committee minutes

Sample observation — applicable

(a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferred to a Fund specified in Schedule VII to the Companies Act in compliance with the second proviso to sub-section (5) of Section 135 of the said Act. (b) There are no amounts that are required to be transferred to a special account in compliance with the provision of sub-section (6) of Section 135 of Companies Act.

Related standards