CSR for Companies in Telangana: Local Projects and Implementing Agencies

Telangana is home to a large number of companies covered by CSR, particularly in pharma, life sciences, IT and manufacturing around Hyderabad. The CSR rules come from the Companies Act and apply nationally, but where and how a Telangana company spends is shaped by the Act's preference for local areas, and by the state's own ecosystem of NGOs and implementing agencies. This guide covers the local side.

The Local Area Preference

Section 135 asks companies to give preference to the local area and the areas around where they operate when spending on CSR. For a company with its offices or plants in Hyderabad, Medchal, Sangareddy, Rangareddy or elsewhere in Telangana, that usually means focusing at least part of its CSR on communities near its operations. It's a preference, not a strict rule, but it's expected, and it's something the board's CSR report often addresses.

Finding Implementing Agencies in Telangana

Most companies spend their CSR through implementing agencies, and Telangana has a large number of NGOs working in education, health, sanitation, skilling, water, and rural development. Before funding any of them, check that the agency:

• Is registered with the MCA for CSR through Form CSR-1, and has a CSR registration number.
• Is a Section 8 company, a trust registered under trust law, or a society registered under the state's Societies Registration Act, and is legally in good standing.
• Holds the income-tax registrations required for CSR agencies.
• Has a track record of relevant work, generally at least three years.
• Can provide utilisation certificates and progress reports as the project runs.

Working With Government Programmes

District administrations and state departments in Telangana run programmes, for example in schools, health, water and skilling, that sometimes accept CSR partnerships. These can offer scale and local reach. Before committing, check that the activity falls within Schedule VII, and that the money flows in a way that counts as CSR under the Act, such as through a registered implementing agency or a government entity eligible to receive it.

NGOs in Telangana Looking for CSR Funds

For NGOs based in Telangana, CSR funding is a major source of support. To receive it, an organisation generally needs to:

• Be set up as a Section 8 company, registered trust or registered society.
• Hold the required income-tax registrations.
• Register with the MCA through Form CSR-1 to get a CSR registration number.
• Build a track record, and the reporting processes companies will expect.

Many new NGOs in Hyderabad start as Section 8 companies precisely because companies and CSR funders are familiar with the structure.

Reporting for Telangana Companies

A Telangana company reports its CSR the same way as any other: in the annual CSR report within its board's report, through Form CSR-2 filed with the MCA, and on its website. The ROC with jurisdiction is ROC Hyderabad, which is the office that would raise queries or issue notices on CSR non-compliance, including for unspent amounts not transferred on time.

A Checklist for Telangana Companies

1. Test CSR applicability each year against the previous year's figures.
2. Calculate the 2% obligation on Section 198 net profit.
3. Consider local communities near your Telangana operations when choosing projects.
4. Check every implementing agency's CSR-1 registration and track record.
5. Transfer unspent amounts on time: 30 days for ongoing projects, six months for others.
6. Report in the board's report, file CSR-2, and update your website.

Getting Help

Think Filing advises Telangana companies on CSR applicability and calculation, helps identify and vet local implementing agencies, and prepares the CSR report and filings. We also help Telangana NGOs set up as Section 8 companies and register for CSR funding.