RP Limited, a company has been regularly implementing Corporate Social Responsibility (CSR), as per the provisions contained under the Companies Act, 2013, for the past three years. The company has been executing the pro

Case: RP Limited is a company which is doing CSR for the past three and now the project has ended and it has no ongoing project. It has unspent amount of ₹ 20 lakhs on 28/12/2022 in their CSR account. Rule of Corporate social Responsibility: According to proviso of Section 135(5) of the Companies Act, 2013, Unspent amount not relating to ongoing projects to be transferred to Funds notified in Schedule VII of the Companies Act, 2013 within a period of 6 months of the end of the financial year. Conclusion: Hence, RP Limited has to transfer the unspent amount of ₹ 20 lakh before 30th September, 2023. Expenditure including Administrative Overheads: Rule of CSR: Expenditure including administrative overheads shall not exceed 5% of total CSR expenditure of the company in one financial year. Case: The net profits of RP Limited for the past 3 years are ₹ 5 crore, ₹ 6 crore and ₹ 7 crore respectively. Average of three years net profit = 5+6+7 = 18/3 = ₹ 6 crore CSR amount (2% of average net profit) = ₹ 6 crore * 2% = ₹ 12 lakh Calculation of Expenditure including administrative overhead = ₹ 12 lakh * 5% = ₹ 60, 000/- The board of RP shall ensure that the administrative overheads shall not exceed 5% of total CSR i.e. ₹ 60,000/- for one financial year.