The Unspent CSR Account
Where the transferor has an unspent CSR amount relating to an ongoing project, the amount is held in the Unspent CSR Account under Section 135(6). On the scheme becoming effective, the account and the obligation to spend the amount must be transferred to the transferee. The scheme should identify the account, the balance, and the project to which the amount relates.
The Ongoing Projects
The transferor’s ongoing CSR projects should be transferred to the transferee, and the transferee should assume the responsibility for their implementation. The scheme should identify the projects, the implementing agencies, and the timelines. The transferee’s CSR committee should approve the revised annual action plan covering the transferred projects.
The Reporting
The transferee’s board report and CSR report must disclose the transferred unspent amount and the ongoing projects. The disclosure should reconcile the transferred amount with the Unspent CSR Account balance. A failure to disclose the transfer can lead to a CSR reporting deficiency.
Call to Action: For CSR transfer documentation, unspent amount reconciliation, or CSR committee approval, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.