Clarification on spending of CSR funds for “Har Ghar Tiranga” campaign by MCA vide general circular No 08/2022 dated 26/07/2022
The Ministry of Corporate affairs has issued a general circular dated 26/07/2022 permitting the companies to spend their CSR funds for activities related to the ‘Har Ghar Tiranga’ campaign.
Corporate Social Responsibility as per Companies Act 2013
Section 135 of Companies Act 2013, read with Companies (Corporate social Responsibility) Rules, 2014 and schedule VII prescribes mandatory provisions for Companies to fulfil their CSR.
As per Section 135 (1) of Companies Act 2013,
Every Company having:
- Net worth – Rs 500 crores or more, or
- Turnover – Rs 1000 crores or more, or
- Net profit – Rs 5 crores or more
During the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.
As per 135(5) every company referred to in sub-section (1) shall spend, in every financial year, at least two per cent. of the average net profits of the company made during the three immediately preceding financial years.
The Committee constituted under 135(1) of Companies Act 2013 shall ensure that the company spends the amount in areas or subject, specified in Schedule VII.
The Activities Specified under Schedule VII include:
| I. | Eradicating hunger, poverty and malnutrition, [‘‘promoting health care including preventive health care’’] and sanitation [including contribution to the Swach Bharat Kosh set-up by the Central Government for the promotion of sanitation] and making available safe drinking water. |
| II. | promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects. |
| III. | promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups. |
| IV. | ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water [including contribution to the Clean Ganga Fund set-up by the Central Government for rejuvenation of river Ganga]. |
| V. | protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art; setting up public libraries; promotion and development of traditional art and handicrafts; |
| VI. | measures for the benefit of armed forces veterans, war widows and their dependents, [ Central Armed Police Forces (CAPF) and Central Para Military Forces (CPMF) veterans, and their dependents including widows]; |
| VII. | training to promote rural sports, nationally recognised sports, Paralympic sports and Olympic sports |
| VIII. | contribution to the prime minister’s national relief fund or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the central govt. for socio economic development and relief and welfare of the schedule caste, tribes, other backward classes, minorities and women; |
| IX. | (a) Contribution to incubators or research and development projects in the field of science, technology, engineering and medicine, funded by the Central Government or State Government or Public Sector Undertaking or any agency of the Central Government or State Government; and
(b) Contributions to public funded Universities; Indian Institute of Technology (IITs); National Laboratories and autonomous bodies established under Department of Atomic Energy (DAE); Department of Biotechnology (DBT); Department of Science and Technology (DST); Department of Pharmaceuticals; Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH); Ministry of Electronics and Information Technology and other bodies, namely Defense Research and Development Organisation (DRDO); Indian Council of Agricultural Research (ICAR); Indian Council of Medical Research (ICMR) and Council of Scientific and Industrial Research (CSIR), engaged in conducting research in science, technology, engineering and medicine aimed at promoting Sustainable Development Goals (SDGs).] |
| X. | rural development projects |
| XI. | slum area development. |
| XII. | disaster management, including relief, rehabilitation and reconstruction activities |
`Har Ghar Tiranga’, a campaign under the aegis of Azadi Ka Amrit Mahotsav, is aimed to invoke the feeling of patriotism in the hearts of the people and to promote awareness about the Indian National Flag.’
The circular clarified that spending of CSR funds for the activities related to this campaign, such as mass scale production and supply of the National Flag, outreach and amplification efforts and other related activities, are eligible CSR activities under item no. (ii) of Schedule VII of the Companies Act, 2013 which includes promotion of education relating to culture.
- The companies may undertake the aforesaid activities, subject to fulfilment of the Companies (CSR Policy) Rules, 2014 and related circulars/ clarifications issued by the Ministry thereof, from time to time.
- This issues with the approval of competent authority
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