MCA Clarifies Contribution To PM Cares Fund As Eligible CSR Activity

In terms of Section 135 of the Companies Act, 2013 (Act), every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more, during the immediately preceding financial year, shall constitute a Corporate Social Responsibility (CSR) Committee. The said CSR Committee, inter-alia, formulates and recommends to the Board of Directors, a CSR Policy indicating the activities to be undertaken by the company, in areas or subject, specified in Schedule VII of the Act. The aforesaid Section 135 further provides that the Board of Directors of the company after considering the recommendations of the CSR Committee, should approve the CSR Policy for the company and ensure that the activities as are included in the CSR Policy of the company are undertaken by the company. The aforesaid Section 135 mandates that the companies which have crossed the aforementioned thresholds should spend, in