The Ministry of Corporate Affairs (MCA) vide General Circular No. 08/2022 dated 26.07.2022 clarifies the spending of CSR funds for ‘Har Ghar Tiranga’ campaign under the aegis of Azadi Ka Amrit Mahotsav.
In this regard, the MCA has clarified the spending of CSR funds for the activities related to this ‘Har Ghar Tiranga’ 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 pertaining to the promotion of education relating to culture.
It is further clarified that the companies may undertake the aforesaid activities, subject to the fulfilment of the Companies (CSR Policy) Rules, 2014 and related circulars/ clarifications issued by the MCA, from time to time.
Section 135 of the Companies Act, 2013, inter alia, provides for companies having-
> net worth of Rs. 500 crore or more, or
> turnover of Rs. 1,000 crore or more, or
> a net profit of Rs. 5 crore or more in a financial year
to spend at least 2% of the average net profits of last 3 years for the company’s Corporate Social Responsibility (CSR) policy.
In case the said amount is not spent, the reasons for not doing so are to be disclosed in the Board’s Report. Activities that may be included in the CSR policy by the companies are specified in Schedule VII of the Companies Act, 2013.
The mandatory provisions of CSR as envisaged in section 135 along with Schedule VII and corresponding Corporate Social Responsibility Policy Rules have been notified on 27.02.2014 and have come into effect from 1st April 2014.
Schedule VII (as amended) of the Companies Act, 2013 prescribes the following activities as CSR activities-
SCHEDULE VII
(See Section 135)
Activities which may be included by companies in their Corporate Social Responsibility Policies Activities relating to:—
(i) Eradicating hunger, poverty and malnutrition, promoting health care including preventinve 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;
(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 [1]Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Caste, the Scheduled Tribes, other backward classes, minorities and women;
(ix) Contribution to incubators funded by Central Government or State Government or any agency or Public Sector Undertaking of Central Government or State Government, and contributions to public funded Universities, Indian Institute of Technology (IITs), National Laboratories and Autonomous Bodies (established under the auspices of Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Council of Scientific and Industrial Research (CSIR), Department of Atomic Energy (DAE), Defence Research and Development Organisation (DRDO), Department of Science and Technology (DST), Ministry of Electronics and Information Technology) 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.
Explanation.- For the purposes of this item, the term `slum area' shall mean any area declared as such by the Central Government or any State Government or any other competent authority under any law for the time being in force.
(xii) disaster management, including relief, rehabilitation and reconstruction activities.
[1]Inserted by MCA Notification No. G.S.R. 313(E) [F. No. 13/18/2019-CSR] dated 26.05.2020
Amount spent on the above activities is qualified as CSR activities. The interpretation of Schedule VII is broad and open and its scope is wide to help the Corporates.
The use, display and hoisting of the National Flag are guided by the ‘Flag Code of India 2002’ and the Prevention of Insults to National Honour Act, 1971.
‘Har Ghar Tiranga’ is a campaign under the aegis of Azadi Ka Amrit Mahotsav to encourage people to bring the Tiranga home and to hoist it to mark the 75th year of India’s independence. Our relationship with the flag has always been more formal and institutional than personal. Bringing the flag home collectively as a nation in the 75th year of independence thus becomes symbolic of not only an act of personal connection to the Tiranga but also an embodiment of our commitment to nation-building. The idea behind the initiative is to invoke the feeling of patriotism in the hearts of the people and to promote awareness about the Indian National Flag.
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Read the full text of MCA General Circular No. 8/2022 dated 26.07.2022 on spending of CSR funds for ‘Har Ghar Tiranga’ campaign
General Circular No. 08/2022
E-file no.05/04/2022-CSR
Government of India
Ministry of Corporate Affairs
5th floor, `A' Wing, Shastri Bhawan
Dr. R.P. Road, New Delhi-110001
Date: 26th July, 2022
TO,
The DGCoA,
All Regional Directors,
All Registrar of Companies,
All Stakeholders
Subject: Clarification on spending of CSR funds for "Har Ghar Tiranga" campaign- reg.
Ma'am/Sir(s),
‘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. In this regard, it is 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 pertaining to promotion of education relating to culture.
2. The companies may undertake the aforesaid activities, sub].ect to fulfillment of the Companies (CSR Policy) Rules, 2014 and related circulars/ clarifications issued by the Ministry thereof, from time to time.
3. This issues with the approval of competent authority.
Yours faithfully,
(Vedant Ojha)
Assistant Director, CSR-Cell
Tel: 011-23380470
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