Radhika Sharma (Student CS) (30 Points)
27 October 2023If a Company engages with an Implementing Agency("IA") which does not have a track record of three years , then what are the consequences of the same? How can the Company rectify the error of engaging with such IA.
CA Rakesh Ishi
(Working at Private Company)
(7995 Points)
Replied 02 November 2023
Engaging with an IA that does not meet the track record requirements can result in non-compliance with CSR regulations. The company may be subject to penalties and legal consequences for not fulfilling its CSR obligations.
In your annual CSR report, transparently disclose the situation, including the change in the IA and the reasons for the change. It's important to provide a clear explanation of the rectification process to stakeholders.
CAclubindia
