Funds to Tackle COVID 19 Counted under CSR

Published on March 24, 2020
Current context: The Ministry of corporate affairs (MCA) has announced on 23rd March 2020, that funds spent on measures to tackle the Covid-19 outbreak will be counted towards the corporate social responsibility (CSR) activity of companies.
Funds to Tackle COVID 19 Counted under CSR

  • The decision is taken in view of the spread of Coronavirus (COVID 19), WHO declaring it as a pandemic and decision of the Government of India to treat this as a notified disaster.
  • Things included under the company’s CSR obligation include:
    1. Funds spent on the promotion of Healthcare, including preventive healthcare and sanitation.
    2. Funds spent on this notified Disaster management.
  • The government has made it compulsory for the companies to spend 2% of their average net profit of the last 3 years on CSR activity in a particular financial year, under the amended Companies Act.
  • In India, Corporate Social Responsibility was introduced through Section 135 of the Companies Act of 2013.
  • The MCA is in charge of the administration of the Companies Act 2013 and the Companies Act 1956.
  • Minister of State for Corporate Affairs: Anurag Thakur

Question: 

Q.1 Section _______ of the Companies Act of 2013 prescribes thresholds to identify companies which are required to constitute a corporate social responsibility (CSR)Committee?
a. 134
b. 135
c. 136
d. 137

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