Compliance Relaxation to Business to Lessen Hardship of Covid 19 Wave-by Ministry of Corporate Affairs

A. Circular No. 09/2021 dated 05/05/2021 – Covid 19 Relaxation ON CSR activities

Following spending of CSR fund are eligible CSR activity under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013:

  • creating health infrastructure for COVID care’,
  • establishment of medical oxygen generation and storage plants’,
  • Manufacturing and supply of Oxygen concentrators, ventilators, cylinders and other medical equipment for countering COVID-19 or similar such activities.

Henceforth, spending of CSR fund as above are eligible CSR activities under item nos. (i) and (xii) of Schedule VII of the Companies Act, 2013 relating to promotion of health care, including preventive health care, and, disaster management respectively.

2 . Following contribution will be covered as CSR under  to item no. (ix) of Schedule VII of the Companies Act, 2013:

  • contribution to specified research and development projects as well as contribution to public funded universities and certain Organizations engaged in conducting research in science, technology, engineering, and medicine.

3. It is also clarified that Companies, including Government companies may undertake the activities or projects or programs using CSR funds, directly by themselves or in collaboration as shared responsibility with other companies, subject to fulfillment of Companies (CSR Policy) Rules, 2014 and the guidelines issued by this Ministry from time to time.

B. Circular No. 08/2021 dated 03/05/2021 – Covid 19 Relaxation – Period of maximum gap between two consecutive shall be read as 180 days , instead of 160 days.

Relaxation of period on holding two consecutive Board Meeting:

Requirement of holding of two consecutive Board Meeting within the intervals as provided in Section 173 , i.e., 120 days, has been extended by 60 days for the following two quarters:

1. April  2021 to June 2021 quarter (Ist qtr)

2. July 2021 to Sept 2021 quarter(2nd qtr)

Hence, the gap for the two consecutive meeting for the above stated two quarter is 180 days , instead of 120 days.

C. Circular No. 07/2021 dated 03/05/2021 Relaxation has been given for filing form towards creation or modification of charge(E-Form CHG 1, E -FORM CHG 9) by a Company or Charge holder in the following two situation:

1. If  the date of creation or modification of charge  is  before 01/04/2021, and the period of filing such form under Section 77 or 78 has not been expired, as on 01.04.2021,

2. Where the date of creation or modification of charge  fall between 01/04/2021 to 31/05/2021 (both date inclusive)


In situation (1) above, while counting the period as mentioned in Section 77 or 78 , the period from 01/04/2021 to 31/05/2021 (both date inclusive) shall not be reckoned. In case the from is not filed within such period, the first day after 31.03.2021 shall be counted as 01.06.2021 and thereby giving relaxation from levy of additional fees.

In case of situation (2) of above, if the form is filed before 31.05.2021 as usual normal fees is payable , and if not filed within such period, the first day after the creation/modification of charge shall be reckoned as 01/06/2021.

Where the Circular is not applicable:

1. In case of CGH 4;

2. Where the CHG 1/CHG 9 has already been filed before issuing this Circular;

3. The time line under Section 77 or 78 has already been expired prior to 01.04.2021

D. Circular No. 06/2021 dated 03/05/2021 – Relaxation on levy of additional fees on filing form by a Company or LLP under Companies Act or LLP Act:

In case any form filing date of a company or LLP becomes due between 01/04/2021 to 31/05/2021, no additional fees shall be levied till 31/07/2021.

However this relaxation is not applicable for CHG1, CHG4, CHG9.

For CHG 1 , CHG 4 relaxation has been given vide Circular No 7/2021 dated 04/05/2021.

E. Circular No. 05/2021 dated  22/04/2021– Covid 19 Relaxation ON CSR activities;

CSR spending on following activities  is an eligible CSR activities  under items no (i) and( XII) OF schedule VII of CA 2013:

1. Setting up makeshifts hospitals and temporary Covid care facilities;


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June 2021