MCA issues clarification on offsetting the excess CSR amount spent for FY 2019-20 under the Companies Act, 2013 and its Rules.
Further to the representations made by Indian Corporates, MCA has clarified that any excess amount or part thereof can be offset against the requirement to spend under section 135(5) for FY 2020-21, if a company has contributed any amount to ‘PM CARES Fund’ on 31.03.2020, which is in excess of the mandated amount as prescribed under section 135(5) of the said Act for FY 2019-20, subject to the following conditions:
a. the excess amount that is being offset should factor in the unspent CSR amount for previous financial years, if any
b. the Chief Financial Officer shall certify that the contribution to “PM-CARES Fund” was indeed made on 31/03/2020 in pursuance of the appeal dated 30/03/2020, which was sent to MDs/CEOs of top 1000 companies in terms of market capitalization and the same shall also be so certified by the statutory auditor of the company; and
c. 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.
This circular is available on our free to use website www.ca2013.com for your quick reference.
Leave A Comment