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: What is the ceiling of expenditure on impact assessment?

Answer & Explanation:

A Company undertaking impact assessment may book the expenditure towards Corporate Social Responsibility for that financial year, which shall not exceed -2% percent of the total CSR expenditure for that financial year; or ₹50 lakhs whichever is higher.

Topics: Corporate Social Responsibility (CSR)

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