MCA Issues Clarification on Offsetting Excess CSR spent to ‘PM CARES Fund’ for FY 2019-20

MCA clarifies that where a company has contributed any amount to ‘PM CARES Fund’ as on 31.03.2020, which is over and above the minimum amount as prescribed under section 135(5) of the Companies Act, 2013 (“Act”) for FY 2019-20, and such excess amount or part thereof is offset against the requirement to spend under section 135(5) for FY 2020-21, then the same shall not be viewed as a violation subject to the conditions that:

1. the amount offset as such shall have factored the unspent CSR amount for previous financial years, if any;
2. the Chief Financial Officer shall certify that the contribution to “PMCARES Fund” was indeed made on 31st March 2020 in pursuance of the appeal and the same shall also be so certified by the statutory auditor of the company; and
3. the details of such contribution shall be disclosed separately in the Annual Report on CSR as well as in the Board’s Report for FY 2020-21 in terms of section 134 (3) (o) of the Act.