Ministry has brought out amendments relating to Corporate Social Responsibility by widening the list of entities through which companies can undertake CSR activities. Accordingly, companies can now carry on CSR activities through Section 8 company not only which is established in association with its holding or subsidiary or associate company but also with any other company and its group companies. However, participation of the company in establishment of such section 8 company is essential, which was not the position earlier. Companies may also conduct its CSR activities through unrelated Section 8 companies, provided such company shall have an established track record of 3 years.
MCA has relaxed Indian companies from Consolidation of financial statements for their foreign subsidiaries. All Companies which have 1 or more subsidiaries incorporated outside India shall not be required to consolidate such companies in its financial statements for the current financial year i.e. financial year commencing from April 1, 2014. This transitional relief is a temporary relief to Indian Companies provided for easing the consolidation challenges for companies having foreign subsidiaries.
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