Govt introduces new CSR form to increase corporate compliance 

According to a new 11-page form notified by the MCA on FFebruary 11, companies will need to provide the details of the amount of money spent in the last three financial years along with the on-going projects.

February 15, 2022

The Ministry of Corporate Affairs (MCA) has initiated a comprehensive reporting format for corporate social responsibility (CSR) activities.

This will help the government formulate a broad database of the on-going CSR activities in the country.

A CSR-2 form has to be filed by the companies regarding the preceding financial year (FY20 - 21) before the start of the upcoming financial year i.e. March 31st 2022.

CSR and MCA have made it compulsory for these files to be a part of the annual report.

The Ministry of Corporate Affairs (MCA) has initiated a comprehensive reporting format for corporate social responsibility (CSR) activities. According to experts, there is a huge increase in the compliance burden. It will, however, help the government formulate a broad database of the on-going CSR activities in the country. 

The government had asked Corporate India to publish a report based on the specifics of their CSR initiatives. A new 11-page form was by the MCA on February 11 that requires companies to provide the details of the amount of money spent in the last three financial years along with the on-going projects. This information provided by the companies can be used by the Corporate Affairs Ministry while drafting the CSR policies, as per an expert. 

A CSR-2 form has to be filed by the companies regarding the preceding financial year (FY20 – 21) before the start of the upcoming financial year i.e. March 31st 2022. This is in addition to the AOC-4 form for filing the company’s financial statement with the Registrar of Companies.. CSR and MCA have made it compulsory for these files to be a part of the annual report. 

The introduction of this new format will ensure that the CSR sum is being spent accurately and is accounted for systematically in the records and not being used otherwise.