In August 2013, the Indian parliament passed the Indian Companies Act, 2013 (the “New Act”), which has replaced the Companies Act of 1956.
One of the New Act’s most startling changes—which came into effect on April 1, 2014—has been to impose compulsory corporate social responsibility obligations (“CSR”) upon Indian companies and foreign companies operating in India. These obligations mainly come in the form of mandatory amounts companies must contribute to remediating social problems
Entities Covered by the CSR Obligations
The threshold coverage levels for CSR are low. Companies are subject to the CSR requirements if they have, for any financial year:
- a net worth of at least Rs. 5 billion (approximately U.S.$80 million);
- a turnover of at least Rs. 10 billion (approximately U.S.$160 million); or
- net profits of at least Rs. 50 million (approximately U.S. [$800,000).
Since the government has now made it mandatory to contribute towards CSR, it is also a wise step to get ourselves ready and equipped enough to receive the funds and donations. Keeping this in mind we decided to get ourselves audited by the Tata Institute of Social Sciences and undergo strict scrutiny financially and operationally and also get our programs reviewed.
As result we are now certified and empaneled under the `Emerging category´. As a result companies both private and government can now be sure that we passed the litmus test and the required due diligence by the review committee.
If you are a corporate agency looking to partner with a non profit organisation working in the education, youth empowerment and poverty alleviation sectors, kindly get in touch with us at email@example.com