Companies (Accounts) Second Amendment Rules, 2023[1]

The Ministry of Corporate Affairs (MCA) has made amendments to the Companies (Accounts) Rules, 2014, stating that companies must now submit Form CSR-2 as a separate filing for the financial year (FY) 2022–2023. The deadline for submitting this form is March 31, 2024.

Form CSR-2 is a report that companies covered under section 135(1) of the Companies Act, 2013 need to file. It contains information about the amount spent on Corporate Social Responsibility (CSR) initiatives during the fiscal year. The form also requires details about the CSR projects undertaken, the composition of the CSR committee, the committee meetings held, and any remaining unspent CSR funds.

Previously, companies could include Form CSR-2 as an attachment to Forms AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS), as applicable. However, the MCA allowed a separate filing for Form CSR-2 in the past two fiscal years, provided that the relevant forms were submitted first. To continue this practice, the MCA has introduced the Companies (Accounts) Second Amendment Rules, 2023. A new provision has been added to Rule 12(1B), stating that for FY 2022–2023, companies must file Form CSR-2 separately by March 31, 2024, after submitting Forms AOC-4 or AOC-4 NBFC (Ind AS), or AOC-4 XBRL, as required.

As a result of this amendment, companies covered under section 135(1) of the Companies Act must be aware of the new filing requirement. They should file Form CSR-2 separately within the specified timeframe to comply with the updated regulations.

This amendment emphasizes the importance of transparent reporting and disclosure of CSR activities by companies. By separating the filing of Form CSR-2, the MCA aims to streamline the reporting process and ensure accurate representation of CSR expenditures and projects undertaken by companies.

To comply with this amendment, companies should seek guidance from legal professionals or consult the Ministry of Corporate Affairs. Filing Form CSR-2 on time demonstrates a commitment to fulfilling CSR obligations and contributes to the promotion of social welfare and responsible business practices.

The MCA’s amendment to the Companies (Accounts) Rules, 2014 reflects its continuous efforts to improve corporate governance and accountability in India’s business landscape. These changes are expected to facilitate more transparent and effective reporting of CSR activities by companies across the country.

[1] https://www.mca.gov.in/bin/dms/getdocument?mds=b3Vzll%252BE2cQrr28306Z23g%253D%253D&type=open