Horizon Infra Ltd. is a company required to undertake CSR activities. The CSR Committee of the company meets only once a year and submits a broad proposal to the Board without specifying the list of projects, fund alloca

In terms of Rule 5(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the CSR Committee shall formulate and recommend to the Board of Directors, an annual action plan in pursuance of its CSR Policy, which shall include the following, namely: - the list of CSR projects or programmes that are approved to be undertaken in areas or subjects specified in Schedule VII of the Act; the manner of execution of such projects or programmes; the modalities of utilisation of funds and implementation schedules for the projects or programmes; monitoring and reporting mechanism for the projects or programmes; and details of need and impact assessment, if any, for the projects undertaken by the company. Further, the Board of Directors may alter such plan at any time during the financial year, as per the recommendation of its CSR Committee, based on the reasonable justification to that effect. In addition to above, in terms of Section 135 of the Companies Act, 2013, the CSR Committee shall undertake the following functions: formulate and recommend to the Board, a CSR Policy on the basis of the approach and direction given by the Board, which shall indicate the activities to be undertaken by the company in areas or subject, specified in Schedule VII to the Act and includes guiding principles for selection, implementation and monitoring of activities as well as formulation of the annual action plan; recommend the amount of expenditure to be incurred on the CSR activities; monitor the CSR Policy of the company from time to time. Based on the facts of the given case, the CSR Committee of Horizon Infra Ltd. is not functioning in line with the provisions of Section 135 of the Companies Act, 2013 read with Rule 5(2) of the Companies (Corporate Social Responsibility Policy) Rules, 2014. The Annual Action Plan must be formulated and recommended by the CSR Committee to the Board of Directors for approval.