FAQs of CSR by ICSI

Corporate Social Responsibility (CSR) provisions overhauled

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 were notified effective 22.01.2021. The Amendment Rules brought about many vital changes which changed the entire approach of CSR from “comply or explain” to “comply or be penalized”. Corporates, NGOs and other stakeholders have many questions in this matter which remain unanswered.

The Institute of Company Secretaries of India has released FAQs on Corporate Social Responsibilities. The FAQs are comprehensive and answer basic questions including the meaning of CSR activities, how should the list provided in Schedule VII of the Companies Act be construed for the purpose of undertaking CSR Activities, how is unspent amount to be dealt with, what provisions are applicable to projects prior to the amendment date, what are the permissible administration overheads etc.

The FAQs released by ICSI is a great read in simple understandable language. An article was also carried in Samhita #253 titled Corporate Social Responsibility (CSR) provisions overhauled containing FAQs compiled by the team at S C Sharada and Associates.


Open FAQs by ICSI
MCA updates

Eligible CSR Activity to include setting up of COVID care facilities

Vide Notification No. 10/2020 dtd. 23.03.2020, MCA had clarified that spending CSR funds for COVID-19 is an eligible CSR expenditure. It has now been further clarified that CSR funds spent on ‘setting up of makeshift hospitals and temporary COVID care facilities’ shall be considered as eligible CSR activities under clause (xii) of Schedule VII of Companies Act, 2013 relating to healthcare and disaster management under list of Eligible CSR activities.


Open General Circular No. 05/2021 dtd. 22.04.2021
IBBI Updates

Consideration of matters by the CoC on request by members

IBBI has clarified on the action to be taken by the Resolution Professional upon receiving a request for convening a meeting by the members of the CoC under various circumstances.

Briefly, the Circular clarifies following matters:

  • Members of the CoC having at least 33% of the voting rights request the RP, along with a note, to convene a meeting of the CoC – RP to convene a CoC meeting for considering the Note.
  • Members of the CoC having at least 33% of the voting rights request the RP, along with a note, to place the note for consideration in a meeting of the CoC – RP to place the note in the ensuing meeting of CoC.
  • Members of the CoC having less than 33% of the voting rights request the RP, along with a note, to convene a meeting of the CoC – RP to consider the request on merits and convene a CoC meeting for considering the Note.
  • Members of the CoC having less than 33% of the voting rights request the RP, along with a note, to place the note for consideration in a meeting of the CoC – RP to consider the request on merits and place the note in the ensuing meeting of CoC.

‘Note’ means a note proposing the matters to be discussed or issues to be voted upon, along with relevant documents, if any, in a meeting of the CoC.

Open Clarification dtd. 16.04.2021
DGFT Updates

COVID-19 Helpdesk

DGFT has constituted the ‘COVID-19 Helpdesk’ to support and seek suitable resolutions to issues arising in respect of International Trade during the prevailing pandemic situation.

This ‘COVID-19 Helpdesk’ would look into issues relating to Department of Commerce / DGFT, Import and Export Licensing Issues, Customs clearance delays and complexities arising thereon, Import / Export documentation issues, Banking matters etc. Helpdesk would also collect and collate trade related issues concerning other Ministries / Departments / Agencies of Central Government and State Governments and will co-ordinate to seek their support and provide possible resolutions.

Open Trade Notice No.02/2021-2022 dtd. 26.04.2021

SEBI Updates
Non- cash mode for Rights Issue available till 30.09.2021

SEBI vide Circular 06.05.2020 had relaxed the requirement under Regulation 76 of the ICDR Regulations (pursuant to which an application for a Rights Issue shall be made only through ASBA facility) and had allowed the lead managers and registrar to the issue to institute a non-cash payment mode to accept applications made for Rights Issues, owing to the difficulties faced due to the COVID-19 pandemic.

The same has now been extended up to 30.09.2021, allowing shareholders to make payment for application for Rights Issue through the non-cash mode.

Open Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/552 dtd. 22.04.2021
IT Updates
GAAR & GST reporting in Tax Audit Report – extended upto 31.03.2022

Reporting requirement of Clause 30C and Clause 44 related to GAAR and GST respectively in Tax Audit Report Form 3CD from 31.03.2021 have been deferred to 31.03.2022. This Order dated 25.03.2021 is issued vide a Circular No. 05/2021 dated 25.03.2021. Earlier, the date was extended to 31.03.2021 by the CBDT vide order dated 24.04.2020.

Open Circular No. 05/2021 dtd. 25.03.2021