CSR thru implementing agency

Co Act 2013 95 views 1 replies
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382 Points Joined June 2021

Can an unlisted public ltd co pass on CSR earmarked Funds to Implementing Agency[ having  registered CSR no] by bank transfer or in kind[ we will place order on vendors & pay with delivery at Implementing Agency]'s site??

For project,  any other option?

Please guide 

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On 24 December 2024 at 17:04 Report
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Master in Accounts & high court Advocate
8756 Points Joined December 2011

Yes, an unlisted public limited company can pass on CSR earmarked funds to an Implementing Agency (IA) having a registered CSR number.

Here are the possible ways:

1. Bank Transfer The company can transfer the CSR funds directly to the IA's bank account. This is a common and accepted practice.

2. In-Kind Contributions The company can also provide in-kind contributions, such as goods or services, to the IA. In this case: - The company places an order with vendors for the required goods or services. - The vendors deliver the goods or services directly to the IA's site. - The company pays the vendors for the goods or services delivered.

3. Other Options For project implementation, other options can be explored: - *Tripartite Agreement*: The company, IA, and vendor can enter into a tripartite agreement, outlining the terms and conditions of the CSR project, including fund transfer and delivery of goods or services. - *Joint Project Implementation*: The company and IA can jointly implement the CSR project, with the company providing financial support and the IA providing implementation expertise. - *Grant Agreement*: The company can enter into a grant agreement with the IA, outlining the terms and conditions of the CSR funding, including reporting and monitoring requirements. Important Considerations

 When passing on CSR funds to an IA, ensure: - The IA is registered with the Ministry of Corporate Affairs (MCA) and has a valid CSR registration number. -

 The IA has a good track record of implementing CSR projects. -

The company maintains proper documentation, including agreements, invoices, and receipts, to support the CSR expenditure. - The company ensures transparency and accountability in the CSR project implementation.

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On 24 December 2024 at 18:48


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