New Delhi, October 9, 2022: Companies in India can now omit some details in their annual CSR reports, as per an official gazette released by the Ministry of Corporate Affairs (MCA) recently. The MCA has made amendments in the Annexure-II of the Companies (Corporate Social Responsibility Policy) Rules, 2014 under which companies would not need to disclose all details of their ongoing and other CSR projects in their annual CSR report.
However, the companies still need to submit these omitted particulars on the MCA portal while filing their CSR-2 form.
The ministry has notified the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2022 recently that have come into the force. To read the official notification by the MCA, click here.
Screenshot of the notification:
Particulars excluded from the new CSR reporting format:
- Name of the CSR project
- Duration of the CSR project
- Amount spend on the project in the current financial year
- Name of the implementing agency
- Amount transferred to the unspent CSR account
- Location of the CSR project
- Amount allocated by the company for the CSR project
- Mode of implementation of the project
- CSR registration number
However, the revision in the CSR reporting has not been accepted well by the CSR experts who have raised questions on the transparency associated with determinants like how and where are the CSR funds being utilized and spent. As per CSR experts, these particulars are quite important and without them the stakeholders, employees, peers and customers of the individual listed companies, and the general public would be in the dark due to the lack of transparency and awareness pertaining to many aspects of expenditure and results. It also limits the scope for impact assessment of the CSR activities by the companies.
According to CSR national portal, in the financial year 2020-21, a total of 17,007 companies have spent Rs 24865.46 Cr on CSR activities.
Out of all the companies contributing towards social space in India, Reliance (Rs 922 Cr), TCS (Rs 674 Cr), TATA Sons (Rs 545.8 Cr), HDFC (Rs 534 Cr), ONGC (Rs 531.4 Cr), OICL (Rs 445 Cr), NTPC (Rs 418.8 Cr), Infosys (Rs 361.8 Cr), ITC (Rs 335.4 Cr) and Wipro (Rs 246.9 Cr) are the top contributors.
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