The Ministry of Corporate Affairs (MCA) has extended the deadline for Corporate India to file the standalone CSR return (CSR-2) for 2023-24 to March 31, 2025.

The Centre earlier specified December 31, 2024 as the last date for filing this return (CSR-2), sources said.

This return (CSR-2) has to be filed separately independent of AOC-4, which is the annual return form to be filed within 30 days of an AGM (annual general meeting).

Form CSR-2, introduced in 2022, has been designed to function as a comprehensive data repository for the Central government’s Corporate Social Responsibility (CSR) initiatives. 

The MCA aims to leverage data analytics and artificial intelligence to uncover discrepancies in companies’ CSR performance, with Form CSR-2 serving as the foundational platform for these analytical efforts.

In Form CSR-2, companies are required to report details regarding their CSR initiatives such as details of projects undertaken; disclosure on its website the details about CSR panel, CSR policy, and approved CSR projects; CSR spent amount, unspent CSR funds and reasons for unspent amount among others. Also, the company is required to confirm whether an impact assessment of CSR projects has been carried out in pursuance of the Companies (CSR Policy) Rules, 2014. 

MCA’s move to make CSR filing under standalone form had brought transparency and accuracy with regard to CSR activities as companies need to maintain records/data for both AOC-4 and CSR-2 filing separately.

CSR compliance in India has matured in recent years with reporting of CSR activities shifting from a “comply or explain approach” towards being more conscientious and governance oriented, corporate observers said.

The Companies Act of 2013 requires a corporate with net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more during the immediately preceding three years to spend 2 per cent of the average net profit on CSR activities.

Centre’s objective behind stipulating standalone form for CSR is to closely monitor any discrepancies, irregularities and mismanagement in CSR contributions.