On 30th March 2020, MCA had appealed to certain companies to contribute generously to 'PM Cares Fund' and in that appeal, it was mentioned that excess amount of contribution, over and above the statutory requirement for FY 2019-20, can later be setoff against the CSR obligation arising in subsequent financial year.
Certain companies had claimed to have contributed CSR funds to the ‘PM CARES Fund’ over and above their prescribed CSR amount for FY 2019-20.
Accordingly, MCA has clarified vide Circular dt. 20th May 2021 that the Companies who had contributed any amount to 'PM CARES Fund' which is above the statutory limit u/s 135(5) of the Companies Act, 2013 can offset such excess contribution amount against the amount required to be contributed for F.Y. 2020-21 u/s 135(5) of the Act subject to the following conditions :
- the amount offset as such shall have factored the unspent CSR amount for previous financial years, if any;
- 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
- 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.
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