Companies can file CSR report for FY23 by March next year: MCA
New Delhi, Jun 3, 2023
The CSR performance of companies improved sharply after the government changed rules from 22 January 2021 allowing more flexibility to companies to spend higher than their legally binding annual CSR obligation in a given year
Companies and non-bank lenders have time till March 2024 to file their mandatory corporate social responsibility (CSR) report with the corporate affairs ministry for the financial year ended March 2023, said an official order.
The Companies (Accounts) second amendment rules, 2023, issued on Friday, said for FY23, the CSR-2 form shall be filed "on or before 31 March, 2024" after filing financial statements in applicable forms.
Companies had time till March 2023 to file the CSR report for FY22 as per existing rules. Companies would now be busy holding their annual general meeting and filing their annual returns and financial statements for FY23. For filing CSR report, they have time till next March.
CSR-2 is the new form that businesses covered under Section 135 of the Companies Act, 2013, are required to file. As per this, every company having net worth of ₹500 crore or more, or turnover of ₹1000 crore or more, or a net profit of ₹5 crore or more in the previous financial year, has to spend 2% of net profits on CSR. This is to be calculated as the average net profits of the company made during the three immediately preceding financial years.
The CSR performance of companies has improved sharply after the government changed rules from 22 January 2021. These rules allowed more flexibility to companies to spend more than their legally binding annual CSR obligation in a given year, which can be adjusted against their spending obligations in future years. The new rules also introduced monetary penalty for companies and officers in default for not meeting their obligation.