CSR Reporting: Ministry of Corporate Affairs (MCA)’s new reporting requirements
As a part of the good corporate governance practice MCA on 11th Feb 2022 notified Form CSR-2 with the Companies (Accounts) Amendment Rules, 2022. Now it is mandatory for corporates to furnish the details of the CSR spent to the Ministry through this form. As per the amended rules, every company covered under u/s 135 shall furnish a report on Corporate Social Responsibility in E-Form CSR-2 to the Registrar for the preceding financial year (2020-2021) and onwards. The CSR-2 is to be filed as an addendum to Form AOC-4/AOC-4 XBRL/AOC-4 NBFC (Ind AS) (e-Forms used for filing of Financial Statements to MCA) as the case may be. Earlier no such form was prescribed. Section 135 of the act only mandates to annex the details of CSR to its Board Report and also disclose on the website of the Company, if any. CSR-2 may be useful for data mining and analysis for the MCA’s CSR department to introduce better policies on this front.
