CA/Auditor’s report on utilisation of CSR funds if CSR activity done through third party-ICAI advisory

A Company which is required to comply with CSR Regulations u/s 135 of the Companies Act, 2013, may undertake CSR activities, either directly or through a third Party Trust / Society or Section 8 Company / NGO.

ICAI, has advised that where a company undertakes the CSR activity through a third party, it should obtain an Independent Practitioner’s Report on Utilisation of such CSR Funds from the auditor / CA in practice of the third party / NGO, to whom the funds are given by the Company for implementing CSR activity.

The ICAI has also released a draft format of Independent Practitioner’s Report on Utilization of CSR Funds along with reconciliation statement of the amount utilised.