Csr fund

Before completion of Financial Year 2016.

Before completion of Financial Year 2016.

As per my view, There is no time limit for utilization , even if you do not utilise the Fund , explanation for the same can be provided in your Annual Report.

@ Mandar: For financial year 2015-16, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on CSR.

If there are justifiable reason for not spending minimum CSR amount, then board has to provide the reason in BOARD report, which is part of annual report.

The new law does no specify punishment for failure to spend CSR expenditure. However such cases are covered under section 450 read with section 451 which provides for residual provisions for the same. Fine under section 450 may extend to ten thousand rupees, and where the contravention is continuing one, a further fine to one thousand rupees for every day after the first during which contravention continues is imposed.