The Ministry of Corporate Affairs (MCA) has introduced the Companies (Accounts) Second Amendment Rules, 2023. These Amendment Rules were notified on 31st May, 2023 and shall come into force upon their publication in the Official Gazette.
These Rules aim to streamline the reporting process and ensure timely compliance.
Under the Companies (Accounts) Rules, 2014, a new provision has been inserted requiring companies to file Form CSR-2 separately for the financial year 2022-2023. This filing must be completed on or before the 31st of March, 2024.
Previously, Form CSR-2 was filed along with either Form No. AOC-4 or Form No. AOC-4-NBFC (Ind AS), as specified in the rules, or Form No. AOC-4 XBRL, as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015.
The amendment aims to enhance clarity and ensure the accurate reporting of corporate social responsibility (CSR) activities. By requiring a separate filing for Form CSR-2, the Ministry of Corporate Affairs seeks to emphasize the significance of CSR reporting and ensure its meticulousness. The change will enable companies to provide a more comprehensive account of their CSR initiatives, helping stakeholders and the public gain a better understanding of their social and environmental contributions.
Companies are advised to familiarize themselves with the amended rules and ensure compliance with the new filing requirements. Non-compliance may lead to penalties and other legal consequences as stipulated by the relevant provisions of the Companies Act.
The Companies (Accounts) Second Amendment Rules, 2023, encourage accurate and timely reporting, and strengthen the overall corporate ecosystem and promote responsible business practices in the country.
