We hope that you all have been spending quality time with family and encouraging friends, relatives and other people to stay safe during lockdown due to COVID-19.

The Ministry of Corporate Affairs (“MCA“) in the wake of the rapidly spreading COVID-19 vide its Circular No. 10 / 2020 dated 23.03.2020 clarified that the amount spent on COVID-19 by companies will count towards Corporate Social Responsibility (CSR) spending. 

The activities falling under item nos. (i) & (xii) of Schedule VII of the Companies Act,  2013 undertaken due to COVID 19 shall qualify as CSR activities, which cover the following:

• Eradicating hunger, poverty and malnutrition, promoting health care including preventive health care and sanitation including contribution to the Swachh Bharat Kosh set-up by the Central Government for the promotion of sanitation and making available safe drinking water
• Disaster management, including relief, rehabilitation and reconstruction activities.

You are aware that  the Union Government with the primary objective of dealing with any kind of emergency or distress situation, like the current COVID-19 pandemic has set up a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund).

In this regard, the MCA has come up with another clarification issued through Office Memorandum dated 28.03.2020 vide which it has been clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013 for the purpose of Entry No. (viii) of Schedule VII. The said entry is extracted hereunder for ease of reference:

• contribution to the prime minister’s national relief fund or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women;

# Social Distancing#Family Time#Social Awareness#Social Responsibility