MCA notifies Companies Amendment Rule to Mandate Separate Filing of CSR-2 for FY 2023-24

The Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules, 2014, with the Companies (Accounts) Amendment Rules, 2024. Companies must file Form CSR-2 separately on or before December 31, 2024, following these amendments, for the financial year 2023-2024.

Form CSR-2 must be filed after Form AOC-4 or AOC-4-NBFC (Ind AS), as applicable under the respective rules, or Form AOC-4 XBRL, as required by the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015.

The amendment, which has been notified under different sections of the Companies Act of 2013, including sections 128, 129, 133, 134, 135, 136, 137, and 138, facilitates the filing process for Corporate Social Responsibility (CSR) reporting by companies.

It requires companies to submit their financial statements using AOC-4 or its equivalents before filing Form CSR-2, which consolidates CSR data.

The Notification Reads as Follows:

In exercise of the powers conferred by sub-sections (1) and (3) of section 128, sub-section (3) of section 129, section 133, section 134, sub-section (4) of section 135, sub-section (1) of section 136, section 137 and section 138 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014.

These rules may be called the Companies (Accounts) Amendment Rules, 2024. They shall come into force on the date of their publication in the Official Gazette.

In the Companies (Accounts) Rules, 2014, in rule 12, in sub-rule (1B), after the third proviso, the following proviso shall be inserted, namely: —

“Provided also that for the financial year 2023-2024, Form CSR-2 shall be filed separately on or before 31st December 2024 after filing Form No. AOC-4 or Form No. AOC-4-NBFC (Ind AS), as specified in these rules or Form No. AOC-4 XBRL as specified in the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015 as the case may be.”

Threshold for Companies

Companies that meet certain financial thresholds are required to establish a CSR committee and participate in CSR activities. Mandatory CSR compliance is required for companies having a net worth of Rs.500 crore or more, a yearly turnover of Rs.1,000 crore or more, or a net profit of Rs.5 crore or more.

These companies must set aside a portion of their earnings for CSR initiatives that promote social, economic, and environmental development. The establishment of a CSR committee ensures the correct oversight and implementation of these activities.

For Official Notification Download PDF Given Below: