Question
What are the methods of implementing CSR activities as per the Companies (CSR Policy) Amendment Rules?
Answer :
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Skip in 10
The Companies (CSR Policy) Amendment Rules, 2021, introduced by the Ministry of Corporate Affairs, have provided a more structured and transparent framework for implementing Corporate Social Responsibility (CSR) activities in India. These rules are aimed at ensuring accountability, proper utilization of CSR funds, and measurable impact on society. According to these amended rules, companies that fall under the CSR obligation must implement their CSR activities through well-defined methods and procedures to ensure that social objectives are effectively achieved. One of the key methods of implementing CSR activities is through eligible implementing agencies. A company may undertake its CSR activities either by itself or through entities such as a company established under Section 8 of the Companies Act, a registered public trust, or a registered society. These entities must be registered with the Central Government by obtaining a CSR Registration Number through Form CSR-1. This ensures that only credible and accountable organizations can act as implementing partners. The company must ensure that these agencies have a proven track record and adequate capability to execute CSR projects effectively. Another method
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