CSR AUDIT CHECKLIST
CS RICHA KUMAR & ASSOCIATES
Illustrative Checklist for a CSR Audit
Under Section 135 of the Companies Act, 2013 and the Companies (CSR Policy) Rules, 2014
Is CSR Committee constitution applicable to the company?
If yes, has the company constituted a CSR Committee of three or more directors, including at least one independent director (or two or more directors, where an independent director isn't otherwise required)?
Does the company have a CSR Policy approved by the CSR Committee?
Has the Committee recommended CSR projects/programmes within the scope of Schedule VII?
Has a monitoring process for these projects been established?
Is the CSR Committee's composition disclosed in the Board's Report?
Were CSR activities undertaken in line with the CSR policy — excluding activities carried out in the normal course of business?
Has the Committee recommended the amount of expenditure for CSR policy activities?
Has the company instituted a transparent monitoring mechanism for CSR project implementation?
Is the CSR policy disclosed in the Board's Report and on the company's website (if any)?
Does the Board's Report include an annual CSR report with all prescribed particulars?
Where the company hasn't spent the full 2% obligation, does the Board's Report state the reasons?
Are net profits computed in accordance with Section 198?
Where the company has built internal CSR capacity, does related expenditure (including administrative overheads) stay within the 5% cap?
Has the company complied with all other requirements of the CSR Rules?
CS Richa Kumar & Associates
www.csrichakumar.com · richakumar86@gmail.com · Lajpat Nagar-IV, New Delhi
This post is for general informational purposes and does not constitute legal advice. For guidance specific to your situation, consult a qualified professional.
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