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Home Corporate Social Responsibility

Annual Report on CSR is also the mandatory part under CSR Rules

Corporate Social Responsibility (CSR) reporting is not just a matter of writing down a list of required information and describing activities, even if following a Standard or a Guideline; now in India, CSR reporting is mandatory for businesses.

India CSR by India CSR
in Corporate Social Responsibility
Reading Time: 2 mins read
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Organisations engaging in implementation of CSR projects will now be required to get themselves registered.


The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 has been issued which have tried to bring more monitoring and reporting aspects of the CSR Funds spend. The Amendment Policy has directed that practicing Chartered Accountants along with other professionals can certify e-Form CSR-1 as given in the Amendment Policy.

The Amendment Rules has now made it mandatory on the part of the company to include an annual report on CSR containing particulars as specified in Annexure I or Annexure II, as applicable, as a part of the Board’s Report.

The Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 has been notified by the Ministry of Corporate Affairs, Government of India on 22nd of January, 2021.

With the announcement of the Amendment Policy, the Government has sought to bring in more monitoring and reporting of CSR Funds spend. Organisations engaging in implementation of CSR projects will now be required to get themselves registered.

Also, CSR spending at 2% of average net profit of the previous three years have now been made mandatory and Corporates are allowed to carry forward excess spending up to three succeeding financial years.

Certain amendments have also been made in the CSR Rules relating to carry forward and setoff of excess spending, and introduction of Impact Assessment Report. Additional responsibilities have been cast on Companies, Boards, CFOs, CSR Committee and Implementing Agencies.

Annexure I is applicable to entities for whom the CSR projects or programs have been approved prior to 1st April, 2021. Every entity who intends to undertake CSR activity shall register itself with the Central Government by filing the form CSR -1, electronically with the Registrar, w.e.f. 1st April, 2021.

Form CSR -1 is to be certified by a Chartered Accountant / Company Secretary / Cost Accountant. Therefore, a need was felt to guide the members on the requirements for verifying and certifying Form CSR-1.

(CopyRight@IndiaCSRNetwork)

Tags: CSR Report

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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