Mehoon Textiles Ltd, is textile manufacturing company based in Tamil Nadu. The Company has been on a growth trajectory, due to savings in operating cost and increased demand for its products. The financial performance of

CS Professional · Environmental, Social and Governance (ESG) Principles and Practice · PYQS · December 2024
Mehoon Textiles Ltd, is textile manufacturing company based in Tamil Nadu. The Company has been on a growth trajectory, due to savings in operating cost and increased demand for its products. The financial performance of the Company has been on a positive trend and since last two years, it is also spending towards Corporate Social Responsibility (CSR) as per the requirements of the Companies Act, 2013. The management of the Company is informed by the Company Secretary, that there are some new compliances relating to impact assessment of CSR spent. The management reaches out to you, to help them with the details of compliances. In the light of the provisions of the Companies Act, 2013, read with the Rules made thereunder, prepare a brief note covering the following: When is a company obligated to undertake 'impact assessment' through an Independent Agency?

Answer & Explanation:

Every company having an average CSR obligation of ten crore rupees or more in pursuance of section 135(5) of the Companies Act, 2013 in the three immediately preceding financial years, shall undertake impact assessment, through an independent agency, of their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study.

Topics: Corporate Social Responsibility (CSR)

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