MCA introduces new reporting requirement for companies required to fulfil CSR obligations for FY 2020-2021 and onwards; effective immediately

A new reporting requirement has been introduced by the  Ministry of Corporate Affairs (“MCA”) in the form of Form CSR-2. This new filing is emanating from the Companies (Accounts) Amendment Rules, 2022 (Amendment) whereby a new sub-rule has been inserted wherein every company covered under the provisions of *Section 135(1) of the Companies Act, 2013 has to furnish a report on Corporate Social Responsibility in Form CSR-2 to the Registrar for the preceding financial year (2020-2021) and onwards as an addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS), as the case may be.

Please note-

For the preceding financial year (2020-2021), Form CSR-2 has to be filed separately on or before 31st March 2022, after filing Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC (Ind AS), as the case may be.

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*Section 135(1) of the Companies Act, 2013:

 (1) Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more Directors, out of which at least one director shall be an independent director.

 Provided that where a company is not required to appoint an independent director under sub-section (4) of section 149, it shall have in its Corporate Social Responsibility Committee two or more Directors

Source: Ministry of Corporate Affairs