Write the short notes on CSR Audit.

To ensure that the Companies comply with the provisions of Section 135 of the Companies Act, 2013 and rules made thereunder and genuinely spend the CSR amount on the eligible welfare projects, it is imperative to improve governance and transparency in CSR sphere. Akin to other areas of corporate activity requiring compliance, need for a dedicated independent professional has been felt in the area of social responsibility as well. In this regard, an independent CSR Audit/ Review and issue of CSR Audit / Review Report by the Company Secretaries in Practice shall not only give the existing CSR Mechanism much needed support and give necessary comfort to the Stakeholders, regulators and the society at large that the companies are complying with the legal requirements but will also give authentic information about utilization of CSR Fund by the Companies in specified CSR activities. The Companies Act, 2013 does not contain any provision relating to CSR Audit. However, monitoring of CSR activities and its reporting is mandatory as per the Companies (Company Social Responsibility Policy) Rules 2014. Also, it is the responsibility of the Company through the CSR Committee to monitor the funds of the Company which are to be utilized as per the CSR Policy of the Company. So, Companies may voluntarily get an Audit conducted of its CSR initiatives and compliances.