Module: | SEBI LODR & Corporate Governance Frameworks
Q10: Consider the following statements regarding Corporate Social Responsibility (CSR) compliance and impact assessments in 2025:
1. Any unspent CSR amount relating to an ongoing project must be transferred to a special account within 30 days from the end of the financial year.
2. Companies with an average CSR obligation of Rupees 10 Crore or more in the three immediately preceding financial years must undertake an independent impact assessment.
3. Administrative overheads for CSR activities are capped at 15 percent of the total CSR expenditure for the financial year.
Which of the above statements is/are incorrect?
2. Companies with an average CSR obligation of Rupees 10 Crore or more in the three immediately preceding financial years must undertake an independent impact assessment.
3. Administrative overheads for CSR activities are capped at 15 percent of the total CSR expenditure for the financial year.
Which of the above statements is/are incorrect?
✅ Correct Answer: C
🎯 Quick Answer:
C. Only 3 is incorrect.Structural Breakdown: Statement 1 is correct.
Statement 2 is correct.
Statement 3 is incorrect; administrative overheads are strictly capped at 5 percent of total CSR expenditure.
Historical/Related Context: Recent amendments tightened CSR from a voluntary activity into a heavily scrutinized financial obligation.
Causal Reasoning: The 5 percent cap ensures that the vast majority of CSR funds reach intended beneficiaries rather than internal corporate bureaucracy.