CSR Amendments

The Ministry of Corporate Affairs introduced various amendments to CSR provisions through the Companies (Corporate Social Responsibility) Rules, 2021 which was notified on January 22, 2021. The amendment provides more transparency on CSR spending and provides rules on monitoring and implementing CSR activities.

Actions required before March 31, 2021

• Since the provisions are applicable from January 22, 2021, any amount that remains unspent on ongoing project in FY 2020-21 will have to be transferred to separate account within 30th April, 2021. Ongoing projects are those CSR projects already undertaken by the company and is yet to be completed.
• If the unspent amount has not been allocated to any ongoing project, then such amount shall be transferred to Fund specified under Schedule VII such as PM Cares Fund, PM National Relief Funds, Clean Ganga Fund before March 31, 2021 or within a period of six months from the end of financials year.

Change to be implemented from April 1, 2021

• Annual action plan to be formulated by CSR Committee
• Display of CSR activities on the company’s website
• No company shall donate/conduct/implement their CSR activities though any trust/Section 8 companies/ Society which does not have CSR Registration Number

Please click here for the detailed note in this regard. CSR Amendments 2021