To bring in greater transparency in reporting of financial statements, the Ministry of Corporate Affairs (MCA) vide notification dated 24.03.2021 has amended Schedule III to the Companies Act, 2013 effective from 1st April 2021 to mandate various disclosures by companies in their financial statements.
The Minister stated that the new disclosures concerning the virtual currency/cryptocurrency transactions and CSR spending undertaken by companies during a financial year are:-
Details of CryptoCurrency or Virtual Currency
Where the Company has traded or invested in Cryptocurrency or Virtual Currency during the financial year, the following shall be disclosed:
- profit or loss on transactions involving Cryptocurrency or Virtual Currency
- amount of currency held as at the reporting date,
- deposits or advances from any person for trading or investing in CryptoCurrency or virtual currency.
Details of Corporate Social Responsibility (CSR)
Where the company is covered under section 135 of the companies act, the following shall be disclosed concerning CSR activities:
- the amount required to be spent by the company during the year,
- amount of expenditure incurred,
- the shortfall at the end of the year,
- total of previous years shortfall,
- reason for the shortfall,
- nature of CSR activities,
- details of related party transactions, e., contribution to a trust controlled by the company to CSR expenditure as per relevant Accounting Standard,
- where a provision is made to a liability incurred by entering into a contractual obligation, the movements in the provision during the year should be shown separately.
This was stated by Union Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to a question in Rajya Sabha today.
