Corporate Social Responsibility
Regulatory Compliance (Sec. 135, CA 2013)
Assistance with determining CSR applicability and meeting Section 135 board, committee, spending, reporting and disclosure requirements.
- Estimate Cost
- ₹10,000 – ₹50,000
- Typical duration
- 5 days
Service overview
A compliance-focused CSR service centred on Section 135 of the Companies Act and the CSR Rules, linking the company's obligations to its records and reporting.
Who needs it? / When is it needed?
Companies crossing the statutory CSR thresholds or otherwise falling within Section 135.
The service is useful when preparing the annual CSR budget and getting ready for board approval and annual disclosures.
What to expect from the WCP Professionals
WCP professionals would determine applicability, check the CSR committee and policy requirements, review the expenditure calculation and prepare the annual compliance checklist.
How the work would proceed:
- WCP professionals would review the company's financial figures and prior CSR records to determine whether Section 135 applies for the relevant year
- They would check the committee/policy position, calculate the requirement using verified financial data, review the treatment of spent and unspent amounts and prepare the applicable board and reporting documents
- Final numbers should be reconciled with finance before approval and filing
Key deliverables
- Applicability note
- CSR compliance calendar
- Committee documentation
- Expenditure review
- Filing support
Standard turnaround time
3–7 working days for a compliance assessment.
Timing depends on receiving final financial and programme data.
Government fees, timelines & key outcomes
No government fee for the compliance review. Form CSR-2 and other MCA forms carry the normal MCA filing fee, with additional fees for late filing.
- Key statutory points:
- Applicability — net worth ₹500 crore, turnover ₹1,000 crore or net profit ₹5 crore in the preceding year
- Spend — at least 2% of the average net profits of the three preceding years
- Unspent amounts — to an Unspent CSR Account within 30 days, or to a Schedule VII fund within six months
- Non-compliance — a penalty of twice the unspent amount or ₹1 crore, whichever is less, on the company
Key outcomes: a completed Section 135 compliance package.
Forms & filings involved
- CSR-2 — annual CSR report filed with the MCA as an addendum to the financial statements
- CSR-1 — registration of implementing agencies (filed by the agency)
- Annual report on CSR in the board's report, in the format in Annexure II to the CSR Rules
- Website disclosure of the CSR committee, policy and approved projects (Rule 9)
Documents required
- Financial statements
- CSR spend data
- CSR policy
- Committee records
- Project documents
- Implementing-agency details
What we need from you
Accurate financial figures and complete project records.
Management should confirm which projects were approved and whether any amount remains unspent or unutilised.
Important conditions
CSR applicability and spend are calculated for each financial year using the net worth, turnover and net profit thresholds in Section 135(1) and the net-profit definition in Rule 2(1)(h) of the CSR Rules.
Administrative overheads cannot exceed 5% of the total CSR expenditure for the year, and surplus from CSR projects cannot become part of business profit.
Additional information
CSR compliance should be reconciled with the company's audited accounts and board records.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
How is the CSR obligation calculated?
At 2% of the average net profit, computed under Section 198 and the CSR Rules, of the three immediately preceding financial years.
What is the penalty for not spending CSR money?
The company faces a penalty of twice the amount it should have transferred or ₹1 crore, whichever is less, and each officer in default up to one-tenth of that or ₹2 lakh, whichever is less.
What is an Unspent CSR Account?
A special bank account into which unspent money for ongoing projects must be transferred within 30 days of the year end and spent within three years.
Can excess CSR spend be carried forward?
Yes. Excess spend can be set off against the obligation of up to three succeeding financial years, if the board passes a resolution to that effect.