Due Date of CSR-2
FY 2023-24
Dated:
July 29, 2024,
Editorial No 921
SHORT SUMMARY:
In
this editorial, the author will discuss the questions raised by so many
professionals and corporations through calls, messages, the WhatsApp group
Gyan Gurukul, and other social media. Like:
- Whether
CSR-2 shall be filed as a linked form with AOC-4?
- What
is the due date of CSR-2 for FY 2023–24?
- Whether
CSR-2 shall be filed on MCA V3 or MCA V2?
- What
are the late filing fees for delays in CSR-2?
- What
are the consequences of the delay in filing CSR-2?
BACKGROUND:
CSR-2 has been introduced MCA vide
notification dated 11th February 2022 by amendment in Companies (Account)
Amendment Rules 2022. CSR-2 shall be applicable for FY 2020-21 and onwards.
ü Applicable Rule(s)
Sub-rule (1B) of Rule 12 of Companies
(Accounts) Rules, 2014
§ Which
Companies are required to file CSR-2?
This new Rule shall be applicable on all
the Companies on which CSR provisions are applicable. In other words, all the
Companies falling u/s 135(1) have to follow this new amendment rules.
§
List of Companies
falling u/s 135(1) are as follow:
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 the
immediately preceding financial year
§
What was the Due Date
of Filing of CSR-2?
A. Whether
CSR-2 shall be filed as a linked form with AOC-4?
As
per the above-mentioned rule, CSR-2 is an addendum to AOC-4. However, the MCA
notification dated March 31, 2022, clarifies this
§ For
the financial year 2020–21, Form CSR-2 is to be filed separately.
§ For
the financial year 2021–22 onward, CSR-2 was required to be filed as an
addendum
However,
MCA has not yet made the necessary amendments to AOC-4 that would allow us to
file CSR-2 as an addendum. Therefore, till date, companies are filing CSR-2 as
a separate form.
Therefore,
until now, MCA has not introduced the option to file CSR-2 as an addendum to
AOC-4; companies must file CSR-2 separately.
B. What
is the due date of CSR-2 for FY 2023–24?
As
per Sub-rule (1B) of Rule 12 of the Companies (Accounts) Rules, 2014, CSR-2 is
an addendum to AOC-4. Therefore, the due date of CSR-2 shall be the same as the
due date of AOC-4, i.e., 30 days from the date of the AGM.
MCA
has given extensions for FY 2021–22 and 2022–23 until March 2023 and March
2024. However, MCA has not given any extension for FY 2023–24; therefore, the
due date of CSR-2 for FY 2023–24 is 30 days from the date of the AGM.
Example:
if the AGM of a company is held on May 30, 2024, then the due date of CSR-2
shall be June 29, 2024.
C. Whether
CSR-2 shall be filed on MCA V3 or MCA V2?
In
the MCA V2 version, the CSR-2 forms are still available. It is a web-based
form. A person can file this form only after logging in to the MCA V2 Portal.
If you don’t have a login ID on the MCA V2 Portal, then you will not be able to
file this form. For this purpose, you must use another person's ID.
Discussions
in numerous forums and groups on WhatsApp suggest that the transfer of AOC-4
from the MCA V2 Portal to the MCA V3 Portal will be possible before September
30, 2024. If it happens, there are good chances that CSR-2 will become an
addendum to AOC-4 and be filed on the MCA V3 Portal.
However,
as of date, CSR-2 is available on the MCA V2 portal for filing as a web-based
form.
D. What
are the late filing fees for delays in CSR-2?
The
CSR-2 file can be filed on the MCA V2 portal without incurring any fees. Even
if a company files CSR-2 after its due date, there are no additional fees.
E. What
are the consequences of the delay in filing CSR-2?
There
is no separate penalty specified in rule for the non-filing of the form.
Therefore, penalty as per section 450 shall be applicable.
According
to Section 450 of the Act, if a company or any officer of a company or any
other person contravenes any of the provisions of this Act or the rules made
thereunder, and for which no penalty or punishment is provided elsewhere in
this Act, the company and every officer of the company who is in default or
such other person shall be liable to:
·
a penalty of ten
thousand rupees,
·
and in case of
continuing contravention, with a further penalty of one thousand rupees for
each day after the first during which the contravention continues,
subject
to a maximum of two lakh rupees in case of a company and fifty thousand rupees
in case of an officer who is in default or any other person.
CONSLUSION:
As
part of sound corporate governance practice, the MCA notified Form CSR-2 on
February 11, 2022. Corporates must now report the details of their CSR spending
to the Ministry using this form. Previously, no such form was prescribed.
Section 135 of the Act merely requires that CSR facts be annexed to the Board
Report and disclosed on the Company's website, if applicable. CSR-2 may be
valuable for data mining and analysis, allowing the MCA's CSR section to
implement improved regulations in this area.
Further
related questions, what is the penalty for non-compliance of CSR? Is it
mandatory to file CSR-2? What is the punishment for non-compliance?, What is
the penalty for CSR noncompliance?, Can we file CSR-2 after due date?, What is
the penalty for non-filing form CSR-2?,
.
Author
– CS Divesh Goyal, GOYAL
DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be
contacted at csdiveshgoyal@gmail.com).
Disclaimer: The entire contents
of this document have been prepared based on relevant provisions and as per the
information existing at the time of the preparation. Although care has been
taken to ensure the accuracy, completeness, and reliability of the information
provided, I assume no responsibility, therefore. Users of this information are
expected to refer to the relevant existing provisions of applicable Laws. The
user of the information agrees that the information is not professional advice
and is subject to change without notice. I assume no responsibility for the
consequences of the use of such information.
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OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THEUSE OF THE INFORMATION