CSR’S NEW RULE APPLICABLE IN FULL LETTER AND SPIRIT

A fresh perspective in Section 135 of the new Companies Act 2013 which mandates corporate India to work for the promotion of socio-economic growth grabs attention.

The influx of the new CSR (Corporate Social Responsibility) rule under section 135 and sub-sections (1) and (2) notified on 23rd of May, 2016 now allows corporate bodies to undertake its philanthropic activities through “a company established under section 8 of the Act or a registered trust or a registered society, established by the central government or state government or any entity established under an Act of Parliament or a State legislature.” Prior to this, only those companies having three years of established track record in similar programs or projects were permitted to carry out CSR works on behalf of companies. Now, only section 8 firms, registered trusts and societies which are set up by governments have been exempted from this three-year track record requirement, hence propelling more flexibility to the corporates. However according to the law notified on May 23rd 2016 for entities that are not set up by the governments or the company concerned, they should compulsorily have an established three-year track record to carry out CSR work. The latest amendment to this CSR Rule also resolves the element of ambiguity arising by removing the word “and otherwise” which previously allowed for an interpretation that the objective of CSR could be met via a company, not necessarily a Section 8 company, so long as it had the established track record of three years.
In this changing pace, Anudip Foundation, nonprofit company, registered under Section 8 of the Indian Companies Act, 2013 completely fits in the above-mentioned criteria with more than 9 years of track-record in working in vocational skill development and economic growth of under-privileged sections of the society. Anudip anticipates becoming a game-changer in the skilling sector while uplifting society and carrying out CSR activities for corporate India in full letter and spirit.

( Source: http://finance.bih.nic.in/Documents/CSR-Policy.pdf )

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