csr was applicable did not comply with it

[soniya agarwal]

Dear Sir / Madam

a public limited company to whom csr was applicable did not comply with it what it ts the remedy with the company as of now , what roc filing needs to be done now and what requirements needs to be complied with to ensure complete discharge of CSR responsibility by the company.

With Regards

CA Soniya Agarwal

[CA Galaxy]

Sec 135, Co.  act 2013 - CSR :
In case company fails to spends required amount on CSR,  board has to specify the reasons for not spending the amount in its board report under section134(3)(o) of Companies Act 2013.

Those no specific penalty for not spending the said amount.  Disclosure of the reasons for not spending is compliance of the above provision.

However,  non disclosure of reasons or absence of details about CSR policy and implementation in board report will attract following penalty (sec 134(8) ):
1 fine not less that 50K,  may extend to 25L
And
2. Every officer in default:
3 yrs imprisonment or
Fine not less than 50k,  may extend to 5L
Or both.

Yes it is sufficient to mention reasons only but not advisable.  Cz their is no doubt that provision is mandatory, even if it is without any specific penalty. Lack of proper reasons and continuous failure may lead to interference from the corporate ministry.
Moreover,  reasons like liquidity problems during the year are not sufficient or acceptable.  The reasons could be linked to overall CSR policy,  issues relating to project implementation,  or setting aside portion of money for emergency relief work etc.

best regards
CA ayush agrAwal

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