Manoj is the youngest member of CSR committee of Puzzle Garments Ltd. He understands that the CSR Committee shall formulate and recommend to the Board an annual action plan pursuant to its CSR policy and the policy shall

CS Executive · Company Law · PYQS · June 2024
Manoj is the youngest member of CSR committee of Puzzle Garments Ltd. He understands that the CSR Committee shall formulate and recommend to the Board an annual action plan pursuant to its CSR policy and the policy shall include certain matters. Manoj discussed the issue with the chairman of the CSR committee and they have approached you, practising Company Secretary for your advice. Draft a suitable note for them.

Answer & Explanation:

As per Rule 5(2) of the Corporate Social Responsibility Policy Rules, 2014 the CSR Committee shall formulate and recommend to the Board, 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 as specified in sub-rule (1) of rule 4; 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. However, the Board 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.

Topics: Corporate Social Responsibility (CSR)

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