[Checklist] Clause 3(xx) to 3(xxi) of CARO 2020
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- Last Updated on 5 August, 2022
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Clause 3(xx)(a): whether, in respect of other than ongoing projects, the company has transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the said Act;
Therefore, for the fulfillment of the requirement of this clause the auditor has to check and comment on the following:
a) Check whether the provisions of Section 135 of the Companies Act 2013 are applicable to the company. If not, clause 3(xx)(a) and 3(xx)(b) are not applicable to the company.
b) look over documents like approval of CSR policy by the board, agenda and minutes of meetings of CSR Committee, workings for calculating the amount needed to be spent etc. to find the amount proposed to be spent on projects which are identified as per Schedule VII.
c) Obtained management representation for the amount spent for projects other than ongoing projects.
d) Whether the quantity of spending has been demonstrated with proper supporting documents?
e) Whether the expenditure made by the company is as per the company’s CSR policy and is as per the provisions of the Act?
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