The unspent amount out of the minimum required CSR can be carry forward to next year subject to the following conditions and as according to the Frequently Asked Questions (FAQs)with regard to Corporate Social Responsibility under section 135 of the Companies Act,2013. dated 12.01.2016.
1. The Board of Directors decides whether any unspent amount from out of minimum required CSR expenditure is to be carried forward to the next year.
2. The carried amount should be over and above the next year's CSR allocation equivalent to at least 2% of the average net profit of the Company of the immediately preceding 3 years.
3. Pursuant to Section 135 (5) of Companies Act, 2013 if the company fails to spend such amount, the Board shall, in its report made under clause (o) of sub-section (3) of section 134, specify the reasons for not spending the amount.
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