What are Capital Asset to be reported to CSR. Further is NRM Assets like Farm Pond, Check Dam, LBS etc are Capital Asset
Capital Asset through CSR funds is tangible or intangible assets created under a CSR project. This will be represented in your Fixed Schedule in your financial statmenets.
NRM assets are of a capital nature but are community assets. So if you are funded for NRM works, if the works is still not completed, you can show it in your Balance Sheet as work in progress and transfer them to the community from your books. Wage and material both could together form the community asset.
CS Sharad Bhargava
What we will part of List of Capital Asset Created or Acquired as regards to Capital Asset Reporting by CSR to MCA as per CSR Act and Rules?
- Capital Asset
- Community Asset
- Both
If the question is about creation of capital assets by the company from CSR funds, it has to transfer the assets to Section 8 company/trust/society having CSR-1 or beneficiaries/SHG/collectives or public authority since the company cannot retain the capital asset as per Rule 7 of Companies (CSR Policy) Rules 2021. However, if the assets created are under a CSR grant to an implementing agency i.e.Section 8 company/trust/society, then the treatment will be as per the terms of contract between the company and implementing agency since the assets belong to the implementing agency. Generally, community assets are not retained in books of implementing agency and transferred to community as per previous question. However, other assets can be retained by the implementing agency in its books and Rule 7 does not apply in this situation.
CS Sharad Bhargava