EcoVision Industries Ltd. is a manufacturing company covered under CSR provisions of the Companies Act, 2013. For the financial year 2024-25, the company had a CSR obligation of ₹ 2 crores. During the year, the company a

As per Section 135 of the Companies Act, 2013 read with the Rule 4 of the Companies (Corporate Social Responsibility Policy) Rules, 2014: If a company fails to spend the CSR amount relating to a financial year and it does not relate to any ongoing project, the unspent amount must be transferred to a fund specified in Schedule VII within 6 months from the end of the financial year. If the unspent amount was allocated to an ongoing project, the same shall be transferred to a special account called "Unspent CSR Account" in a scheduled bank within a period of thirty days from the end of the financial year and must be utilized only for that project. The amount in such account cannot be used for any other purpose of the company. A separate "Unspent CSR Account" is required for each financial year, but not for each project. The CSR activities may be undertaken by the company itself or through - a company established under Section 8, registered public trust or registered society exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961 (43 of 1961), established by the company, either singly or along with any other company; or a company established under section 8 of the Act or a registered trust or a registered society, established by the Central or State Government; or any entity established under an Act of Parliament or a State legislature i.e. a statutory body constituted under an Act of Parliament or State legislature to undertake activities covered in Schedule VII of the Act; or a company established under section 8 of the Act, or a registered public trust or a registered society, exempted under sub-clauses (iv), (v), (vi) or (via) of clause (23C) of section 10 or registered under section 12A and approved under 80 G of the Income Tax Act, 1961, and having an established track record of at least three years in undertaking similar activities. In the given case, the amount of ₹ 50 lakhs relating to the ongoing project has been correctly transferred to the Unspent CSR Account. Also, opening a single account for the financial year is in compliance. However, utilization of this amount for routine business operations is not permitted, as the amount must be used only for ongoing CSR projects and cannot be used for general business purposes. Further, the CSR amount of ₹ 30 lakhs not relating to any ongoing project should have been transferred to a Schedule VII fund within 6 months from the end of the financial year. The company's decision to carry it forward for future CSR activities is not in compliance. Thus, there is only partial compliance in treatment of unspent CSR amount. Further, EcoVision Industries Ltd. has undertaken CSR activities through its in-house foundation, and in collaboration with a registered trust, which is a permissible mode of implementation. Thus, the delivery mechanism adopted by the company is in compliance with the prescribed framework.