The Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules, 2014, through the Companies (Accounts) Amendment Rules, 2024. These amendments mandate that for the financial year 2023-2024, Form CSR-2 must be filed separately by companies on or before December 31, 2024.
The filing of Form CSR-2 is to follow the submission of either Form AOC-4 or AOC-4-NBFC (Ind AS), as applicable under the respective rules, or Form AOC-4 XBRL in accordance with the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015.
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The amendment, notified under various sections of the Companies Act, 2013, including sections 128, 129, 133, 134, 135, 136, 137, and 138, help the filing process for Corporate Social Responsibility ( CSR ) reporting for the companies.
It requires companies to complete their financial statement submissions through AOC-4 or its variants before proceeding with the separate filing of Form CSR-2, which consolidates CSR data.
According to the notification, the CSR-2 shall be filed separately after filing of AOC-4 or AOC-4-NBFC (Ind AS) by a deadline of December 31, 2024. Section 135 of the Companies Act, 2013 mandates certain companies to contribute to the public.
The companies that meet specific financial thresholds are required to form a CSR committee and engage in CSR activities. The criteria for mandatory CSR compliance include companies with a net worth of ₹500 crore or more, companies with an annual turnover of ₹1,000 crore or more, or companies with a net profit of ₹5 crore or more.
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These companies must allocate a portion of their profits towards CSR initiatives, contributing to social, economic, and environmental development. The formation of a CSR committee ensures proper oversight and implementation of these activities.
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