CSR Audit
Quick Reference for Your Business
Section 135 Spend Verification – everything you need to know about CSR Audit.
01
What It Is / When Needed
Verification of CSR spending
under Section 135, Companies Act
Confirms
2% spend, eligible Schedule VII activities and reporting
Checks implementing agencies
are CSR-1 registered
Impact assessment
required if average CSR obligation ≥ ₹10 crore
02
What The Audit Checks
| Area | Checks |
|---|---|
| Spend amount | 2% of average net profit (Sec 198), last 3 years |
| Eligibility | Activities fall within Schedule VII |
| Agency check | Implementing NGO is CSR-1 registered (12A + 80G) |
| Unspent funds | Transferred correctly (30 days / 6 months) |
03
Why It Matters
CSR default (Sec 135)
Company: ₹1 crore or 2× the unspent amount, whichever is less.
Officer: ₹2 lakh or 1/10th, whichever is less.
Note: A CSR audit keeps your spend defensible. It confirms the money went to eligible Schedule VII activities through properly registered agencies, and that any unspent amount was transferred on time — avoiding the penalties that follow a CSR default.
04
Why Clients Trust M/s Durganjali & Associates
A real, qualified Chartered Accountant
A CA who verifies your CSR spend and keeps it fully compliant and documented.
Audits that hold up
Proper working papers and documentation that stand up to regulators, banks and the department.
Deadlines never missed
We track every due date so penalties never catch you off guard.
Clear updates in your language
Simple updates in Telugu and English — you always know where things stand.
Honest, practical advice
Straight answers you can act on — no jargon, no overselling.
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