New Section 8 entity will manage the company’s social welfare and CSR activities under the Companies Act, 2013
MUMBAI (India CSR): Infrastructure company Niraj Cement Structurals Limited has incorporated Niraj Group Foundation as a wholly owned Section 8 subsidiary to manage its Corporate Social Responsibility (CSR) and social welfare initiatives in line with Section 135 of the Companies Act, 2013.
The foundation was incorporated on August 20, 2026, and the listed company disclosed the development to the BSE and NSE on August 21 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The new entity is structured as a company limited by guarantee and does not have share capital.
CSR Foundation
Niraj Group Foundation has been created to undertake CSR and social welfare activities under the direction of Niraj Cement Structurals.
The company said the foundation will operate in India and will focus on implementing projects covered under the CSR framework of the Companies Act.
The filing does not specify the initial thematic priorities of the foundation, such as education, healthcare, environment, livelihood, rural development or other Schedule VII areas.
It also does not provide details on the geographical regions or communities that will be covered in the first phase.
Ownership Structure
Niraj Cement Structurals will retain full control over the management and affairs of the foundation.
The foundation has been incorporated as a wholly owned subsidiary, although it does not carry share capital because of its Section 8 structure.
According to the disclosure, no cash consideration or share swap was involved in the incorporation.
The company also stated that no government or regulatory approval was required for setting up the entity.
Section 8 Model
Section 8 companies are generally formed for charitable, social welfare and not-for-profit purposes and are governed by the Companies Act, 2013.
For corporate CSR programmes, such entities can provide an institutional structure for implementing, managing and monitoring social development projects.
In the case of Niraj Group Foundation, the company has indicated that the entity will focus on CSR activities associated with its statutory obligations and broader social welfare objectives.
However, the disclosure does not state whether the foundation has obtained or will obtain the registrations required to act as an eligible CSR implementing agency under the applicable CSR Rules.
Governance Focus
The creation of a dedicated foundation could allow Niraj Cement Structurals to separate CSR implementation from its core infrastructure and construction operations.
A dedicated entity may also help the company develop longer-term projects, coordinate with implementing partners and maintain project-level records and monitoring systems.
The effectiveness of the model will depend on the governance framework adopted by the foundation, including board oversight, project selection, fund utilisation, outcome measurement and public disclosure.
Spending Details
The filing does not disclose the company’s prescribed CSR obligation, actual CSR spending, unspent amount or project-wise expenditure for the latest financial year.
It also does not indicate how much funding will be transferred to the foundation or whether the entity will work directly or through NGOs, government agencies and other implementing organisations.
For CSR researchers and stakeholders, future annual reports and CSR disclosures will be important for assessing the foundation’s scale, priorities and measurable social impact.
