Making March Meaningful: CSR Compliances before 31st March Ends

 

Before the Financial Year ends 2025, CSR heads of the corporate must ensure that all CSR compliance, reporting, budgeting, and regulatory requirements are met.

 

Here is a short checklist for reference.

· 100% Fund Utilization
· For on-going projects transfer unspent CSR funds to a CSR Unspent Account within 30 days after FY-end. Utilize them within 3 years.
· Non-on-going projects transfer unspent CSR funds to government funds (PM CARES, Clean Ganga Fund, etc.) within 6 months of FY-end.
· Forecast Next Year’s CSR Budget – Estimate CSR obligations for FY 2025-26 based on projected net profits.
· Board Approval of CSR Expenditure & ensure CSR spending and project modifications are reviewed and approved by the Board of Directors.
· Submit CSR-2 with MCA (Ministry of Corporate Affairs) along with AOC-4 before 31st March 2025.
· Board Report Disclosures – Include CSR details (projects, spending, impact, unspent funds, and reasons for shortfall) in the Board’s Annual Report.
· Update company website with CSR Policy, CSR Project Details, Fund Utilization Reports, and Impact Assessments.
· Ensure CSR expenditures comply with the 5% administrative cap and align with regulatory requirements.
· Maintain Documents like CSR Agreements, NGO Docs, and Meeting Minutes & Board Approvals.
· Verify eligibility for CSR-related tax deductions under the Income Tax Act.
· Ensure all CSR-implementing partners are MCA-registered (CSR-1)
· Confirm CSR compliance is reviewed in the Company’s Annual Audit.
· Address any past non-compliance and take corrective measures to avoid penalties:
· Conduct a CSR review meeting before the new financial year to evaluate performance and set the action plan for next year.
· Share CSR impact reports with internal & external stakeholders (Board, investors, government bodies, employees).
· Encourage employees to participate in CSR programs and plan engagement strategies for the next year.

Meeting CSR compliance before 31st March 2025 is crucial to avoid penalties, maintain good corporate governance, and maximize social impact.