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Csr

Co Act 2013 263 views 1 replies

Priya

33 Points Joined September 2012

My queries pertains to CSR contribution that the Company needs to do for the current financial year (2% of the avg net profits - last 3 yrs).

i) For the current financial year - by when should the amount be contributed?

ii) Can this contribution be done to a newly incorporated Section 8 Company or the amount should be contributed to only a NGO which has minimum 3 years standing.

Request learned members help

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

1) Amount can be spent at any time upto end of the financial year.

2) Rule 4(2) reads as under:

"(2) The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under section 8 of the Act or otherwise:

Provided that—

(i)

if such trust, society or company is not established by the company or its holding or subsidiary or associate company, it shall have an established track record of three years in undertaking similar programs or projects;"

Hence criteria of 3 years will not apply if Sec.8 company is established by the donor company or its holding or subsidiary or associate company.