Applicability of CSR Fund
The companies on whom the provisions of the CSR shall be applicable are contained in Sub Section 1 of Section 135 of the Companies Act, 2013. As per the said section, the companies having Net worth of INR 500 crore or more; or Turnover of INR 1000 crore or more; or Net Profit of INR 5 crore or more during any financial year shall be required to constitute a Corporate Social Responsibility Committee of the Board "hereinafter CSR Committee" with effect from 1st April, 2014.
Current Scenario
The world is at a crisis situation. We are going through a pandemic with far reaching effects not seen by anyone living today. There are thousands of people dying all over the world and the numbers may soon reach lakhs. The effect is not only on the lives and health of the people, but also on the economy since the Governments have declared lockdown and curfew in several cities and industries and offices have been shut down. With no cure, yet discovered, the only way to prevent the disease is to stay indoors and social distancing.
The Government of India is taking many initiatives to control the spread of the disease. We are at the Stage 2 of the disease and serious efforts are being made to contain the disease at Stage 2 and not reach Stage 3 where the disease will spread through community contact.
The Finance Minister Nirmala Sitharaman, said on March 23, 2020 that “In view of the spread of novel Corona Virus in India, its declaration as pandemic by the WHO, and decision of Government of India, to treat this as notified disaster, it is hereby clarified that spending of CSR funds for Covid – 19 is eligible”
Minister of State for Finance and Corporate Affairs Anurag Singh Thakur told Lok Sabha on March 16, 2020 that a high level committee on CSR has recommended the transfer of the unspent CSR amount to a separate, designated account. “Unspent amounts, and the interest earned thereon, (have to) be spent within a period of three to five years, failing which the same be transferred to a fund to be specified by the Central Government which may be used for innovative, high impact projects related to activities,” he said.
It is therefore requested that at this time of national disaster with far-reaching effects, we stand by the Government and its efforts to minimise the disaster. Some of the activities which may be undertaken may be:
Scientific research for development of drug for the Covid-19.
Manufacture and / or Distribution of kits for testing of the disease.
Providing Quarantine facilities to those affected.
Mass training of nurses and paramedical staff to face the situation.
Distribution of food and arrangement of shelter for doctors and paramedical staff.
Opening of sanitisation facilities (mobile and stationary) and training of workers for the same.
Distribution of food / medicine / financial support to the poor / daily wage earners who are forced to stay at home during the lockdown / curfew.
Arrangement of ambulance and corpse carriers (if required)
Mass supply of protective gear (gloves, caps, masks etc.)
Transport facilities for medical and paramedical staff and other supporting staff.
All facilities to be extended to urban as well as rural areas.
Donation to the following funds are also eligible CSR spends·
PM CARES Fund · PM National Relief Fund
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