The Ministry of Corporate Affairs has issued Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021

The Ministry of Corporate Affairs has issued the notifications for amendment of Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 on 22^nd January 2021.

Following are Key Takeaway

(1)  As per the new provisions, every entity that intends to undertake any CSR activity will have to register itself with the Government by filing the form CSR-1 electronically with the Registrar of Companies (ROC), w.e.f. 1^st April, 2021.

(2)  In the event of the company failing to spend the reserved two percent of net profits towards CSR, it will "have to specify the reasons for not spending the amount" and, unless the unspent amount relates to any ongoing project, transfer it to a government notified fund.

Furthermore, companies undertaking CSR activities will have to share :

-      Impact Assessment for big CSR projects;

-      Carry forward and set off of CSR expenditure;

-      Annual action plan for CSR by Board every year in addition to CSR policy;

-      It is reporting on Board Report;

-      Mandatory disclosure of CSR projects and activities on company website;

-      Capital Asset acquisition and its holding restricted to three bodies broadly;

-      Transfer of unspent amount to government notified fund.

Click for full detail amended notification of companies (Corporate Social Responsibility Policy) Amendment Rule, 2021 –

https://www.mca.gov.in/Ministry/pdf/CSRAmendmentRules_22012021.pdf