As per section 135 of the Companies Act, 2013 the following companies are liable for conducting Corporate Social Responsibility as under:
“(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 any 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.”
Now, MCA has introduced a new requirement for all companies to file Form CSR-2 to provide information about the CSR projects for FY 2020-21 till 31.03.2022 as mentioned in notification below:
“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 of2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely:-
1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Accounts) Rules, 2014 (hereinafter referred to as the said rules), in rule 12, after sub-rule (IA), the following sub-rule shall be inserted, namely: –
“(1B) Every company covered under the provisions of sub-section (1) to section 135 shall 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:
Provided that for the preceding financial year (2020-2021), Form CSR-2 shall 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.”
In the said form CSR-2, company needs to mention:
- it’s basic details
- SRN on AOC-4, financial details of company
- Criteria triggering CSR applicability.
- Details of CSR committee if any.
- Whether Impact assessment of CSR projects have been conducted, if yes then it’s details.
- Whether any amount is available for set off in pursuance of sub-rule (3) of Rule 7 of Companies (CSR Policy) Rules, 2014
- Whether CSR amount for financial year has been spent? If not then details of ongoing projects.
- Details of transfer of Unspent CSR amount for the financial year
- Specify the reason(s) if the company has failed to spend two per cent of the average net profit as per section 135(5)
- Whether any unspent amount pertaining to FY 2014-15 to FY 2019-20 has been spent in the financial
To read about full Notification and CSR-2 Form CLICK HERE.
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