The amendments brought significant changes to CSR compliance and enforcement. Key highlights include:
- Stricter Penalties: Non-compliance with CSR provisions now results in financial penalties for companies and officers in default.
- Mandatory Transfer of Unspent Funds: If CSR funds are unutilized, they must be transferred to a designated government fund within a specified timeframe.
- Impact Assessment Reports: Large companies (CSR obligation of ₹10 crore or more) must conduct third-party impact assessments and report measurable results.
- Flexibility in CSR Spending: Companies can adjust excess CSR spending from one year against future obligations, providing better financial planning.
- Introduction of Multi-Year Projects: Companies can allocate funds to CSR projects spanning multiple years, ensuring long-term impact.
Compliance Requirements:
- Regular Monitoring & Reporting: Companies must track and evaluate the impact of CSR initiatives.
- Third-Party Audits: Some organizations may require external verification of CSR activities to ensure compliance.
- Government Scrutiny: The Ministry of Corporate Affairs (MCA) actively monitors CSR compliance, and non-compliant companies may face penalties or stricter regulatory actions.
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