{"id":18059,"date":"2021-09-27T15:10:17","date_gmt":"2021-09-27T09:40:17","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=18059"},"modified":"2024-06-03T12:04:03","modified_gmt":"2024-06-03T06:34:03","slug":"csr-spending-on-covid-activities","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/csr-spending-on-covid-activities\/","title":{"rendered":"Regulatory announcements on CSR spending on Covid Activities"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-18061 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2021\/09\/Regulatory-announcements-on-CSR-spending-on-Covid-Activities-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\">World has seen a never seen before situation with COVID-19. The biggest of countries going under lockdown. The pharmaceutical companies and NGO\u2019s are working hand in hand. On one pharmaceutical companies are preparing drugs and vaccines and on the other hand <a href=\"https:\/\/www.cagmc.com\/ngo-registration\/\">NGOs<\/a> are working for helping the poor and needy in these times of lockdown. In such situation corporate sector has also risen to the occasion backed by government\u2019s announcements.<\/p>\n<p style=\"text-align: justify;\">In this article we will discuss various announcements made by government on CSR spending on COVID Activities.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><strong>Contents<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li><a href=\"#meaning\">Meaning of Corporate Social Responsibility (CSR<\/a>)<\/li>\n<li id=\"meaning\"><a href=\"#relevance\">Relevance of CSR in COVID-19 times<\/a><\/li>\n<li><a href=\"#Government\">Government Announcements on CSR spending on COVID Activities<\/a><\/li>\n<li><a href=\"#conclusion\">Conclusion<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Meaning of Corporate Social Responsibility (CSR<\/strong><strong>)<\/strong><\/h2>\n<p style=\"text-align: justify;\">Section 135(1) of the Companies Act, 2013 contains provisions regarding spending on various CSR activities by companies. The provisions are as follows:-<\/p>\n<ul style=\"text-align: justify;\">\n<li>All companies, its holding company and subsidiary company, or<\/li>\n<li>Any<a href=\"https:\/\/www.cagmc.com\/foreign-company-registration\/\"> foreign company<\/a> having branch office or <a href=\"https:\/\/www.cagmc.com\/how-to-setup-project-office-in-india\/\">project office in India<\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">That fulfil following conditions:-<\/p>\n<ul style=\"text-align: justify;\">\n<li>Have net worth of Rs.500 crores or more or turnover of Rs.1000 crore or more , or<\/li>\n<li>A net profit of Rs.5 crore or more<\/li>\n<\/ul>\n<p id=\"relevance\" style=\"text-align: justify;\">During immediately preceding three years, shall contribute at least 2% of its average net profits to CSR activities in every financial year.<\/p>\n<p style=\"text-align: justify;\">For the companies that have not completed three years, the average profits for all the years since its incorporation will be calculated.<\/p>\n<h2><strong>Relevance of CSR in COVID-19 times<\/strong><\/h2>\n<p style=\"text-align: justify;\">The aim of introducing CSR was to ensure that companies which are earning well should contribute to cause of the society. The earnings of corporate sector are result of various components of society only be it consumers, employees etc. As the company takes from society, so it needs to do something for society as well.<\/p>\n<p id=\"Government\" style=\"text-align: justify;\">In times of COVID-19, the country needs the support from all sectors of society. The sectors like health infrastructure, vaccine camps, testing facilities, food and shelter for poor needs most support.<\/p>\n<p style=\"text-align: justify;\">Keeping in view the same, government made some announcements where it included spending on Covid Activities as CSR activity. Let us the announcements.<\/p>\n<h2><strong>Government Announcements on CSR spending on COVID Activities<\/strong><\/h2>\n<p style=\"text-align: justify;\">COVID is declared as pandemic by WHO and a national disaster by Indian Government. In wake of same government made following announcements for CSR spending on COVID Activities-<\/p>\n<div style=\"overflow-x: auto;\">\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Particulars<\/strong><\/td>\n<td style=\"border: 1px solid #555;\"><strong>Description<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">COVID-19 expenses recognised as CSR activity<\/td>\n<td style=\"border: 1px solid #555;\">Funds spent on activities relating to promotion of health care, including preventive health care and sanitation and disaster management aimed at COVID-19 management.<\/p>\n<p><strong>(Circular No.10\/2020 dated 23<sup>rd<\/sup> March,2020)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Contribution to PM-CARES Fund is a CSR Activity<\/td>\n<td style=\"border: 1px solid #555;\">MCA announced that contribution to PM-CARES Fund will be considered for the purpose of CSR activity by the company.<\/p>\n<p><strong>(Memorandum dated 28th March,2020)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Research for COVID related drugs or vaccines<\/td>\n<td style=\"border: 1px solid #555;\">Any company which is engaged in research and development of new vaccine, drugs, and medical devices with specified institutes then such expenses will be included for CSR Activity. It can be done during financial years 2020-2021, 2021-2022 and 2022-23.<\/p>\n<p>The conditions for the same are:-<\/p>\n<ul>\n<li>The expenses should be related to medical facilities relating to COVID-19.<\/li>\n<li>The disclosures of the same should be made separately in Annual Report on CSR.<\/li>\n<\/ul>\n<p><strong>(Notification GSR 526(E) dated 24<sup>th<\/sup> Aug,2020)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Awareness Campaign\/Vaccination Programs<\/td>\n<td style=\"border: 1px solid #555;\">Carrying out awareness campaign and vaccination programmes will also be included as an eligible CSR Activity.<\/p>\n<p><strong>(Circular No.01\/2021 dated 13<sup>th<\/sup> January 2021)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Building temporary COVID-Care facilities<\/td>\n<td style=\"border: 1px solid #555;\">The funds spent for setting up makeshift hospitals and temporary COVID-Care facilities is an eligible CSR Activity.<\/p>\n<p><strong>(Circular No.05\/2021 dated 22<sup>nd<\/sup> April,2021)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Facilitating oxygen generation and supply<\/td>\n<td id=\"conclusion\" style=\"border: 1px solid #555;\">Any spending for creating health infrastructure for COVID-Care, setting up for plants for oxygen generation or storage. Supply of concentrators, ventilators, oxygen cylinders and other medical equipment to counter COVID-19 will also be considered as CSR Activity.<\/p>\n<p><strong>(Circular No.09\/2021 dated 5<sup>th<\/sup> May,2021)<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid #555;\">Vaccination camps for people other than employees<\/td>\n<td style=\"border: 1px solid #555;\">Organising vaccination camps for people other than employees and their families will also be included as a CSR Activity.<\/p>\n<p><strong>(Circular No. 13\/2021 dated 30<sup>th<\/sup> July,2021)<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2 style=\"text-align: justify;\"><strong>Conclusion<\/strong><\/h2>\n<p style=\"text-align: justify;\">The above announcements regarding <a href=\"https:\/\/www.indiainfoline.com\/article\/news-top-story\/covid-19-catapults-csr-spending-past-rs1-lakh-crore-crisil-121082400457_1.htm\">CSR spending on COVID activities<\/a> proved to be a great help to the society. The companies came forward and helped by providing medical aid to the infected people and their family members. CSR spending has been an integral part of companies cashflow, however announcing inclusion of COVID relief measures for the same by government gave it a direction that was need of the hour.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>World has seen a never seen before situation with COVID-19. The biggest of countries going under lockdown. The pharmaceutical companies [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":18061,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[70],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CSR spending on Covid Activities: Regulatory announcements<\/title>\n<meta name=\"description\" content=\"Complete Guide about CSR spending on Covid Activities, Meaning of CSR, Relevance of CSR in COVID-19 times, Government Announcements on CSR.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cagmc.com\/blog\/csr-spending-on-covid-activities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CSR spending on Covid Activities: Regulatory announcements\" \/>\n<meta property=\"og:description\" content=\"Complete Guide about CSR spending on Covid Activities, Meaning of CSR, Relevance of CSR in COVID-19 times, Government Announcements on CSR.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cagmc.com\/blog\/csr-spending-on-covid-activities\/\" \/>\n<meta property=\"og:site_name\" content=\"Goyal Mangal &amp; 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