MCA has by a Circular and an office memorandum dated March 23, 2020 and March 28, 2020, respectively, clarified that spending of funds by companies in relation to COVID-19, including by contribution to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (‘PM-CARES Fund’), is an eligible corporate social responsibility (‘CSR’) expenditure under the Companies Act. Further, by FAQs dated April 10, 2020, MCA has clarified, that contributions to the State Disaster Management Authority will also be eligible CSR activity, but contributions towards: (a) ‘Chief Minister’s Relief Fund’ or ‘State Relief Fund for COVID-19’; and (b) payment of salary/ wages to employees and workers (including contract labour/ temporary/ casual/ daily wage workers) during the lockdown period will not be considered as eligible CSR expenditure. However, ex-gratia payment over and above the disbursement of wages to temporary/ casual workers/ daily wage workers, specifically for the purpose of fighting COVID-19, will be admissible towards CSR expenditure, provided there is an explicit declaration to that effect by the board of the company, duly certified by the statutory auditor.