MCA Clarification on offsetting the excess CSR contributed to PM CARES Fund for FY 2019-20

Ministry of Corporate Affairs through circular dated 20th May 2021 has issued Clarification on offsetting the excess CSR spent for FY 2019-20. The central government on 30.03.2020 appealed top 1000 companies to contribute generously to “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund” (PM CARES Fund) which can include the unspent CSR amount, if any, and an amount over and above the minimum prescribed CSR amount for FY 2019-20, which can later be offset against the CSR obligation arising in subsequent financial years.

MCA has clarified that where a company has contributed any amount to ‘PM CARES Fund’ on 31.03.2020, which is over
and above the minimum amount of prescribed CSR, such excess amount or part thereof is offset against the CSR requirement for FY 2020-21 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;
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.